Company: EPR-PE
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001045450-25-000051
Chunk: 166

Company: EPR PROPERTIES
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 166
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 shares becoming convertible into shares of the public acquiring or surviving company.The Company may, at its option, cause the Series C preferred shares to be automatically converted into that number of common shares that are issuable at the then prevailing conversion rate. The Company may exercise its conversion right only if, at certain times, the closing price of the Company’s common shares equals or exceeds 135% of the then prevailing conversion price of the Series C preferred shares.Owners of the Series C preferred shares generally have no voting rights, except under certain dividend defaults. Upon conversion, the Company may choose to deliver the conversion value to the owners in cash, common shares, or a combination of cash and common shares.The Company's Board declared cash dividends totaling $1.4375 per Series C preferred share for each of the years ended December 31, 2024 and 2023. There were non-cash distributions associated with conversion adjustments of $0.2769 and $0.2368 per Series C preferred share for the years ended December 31, 2024 and 2023, respectively. The conversion adjustment provision entitles the shareholders of the Series C preferred shares, upon certain quarterly common share dividend thresholds being met, to receive additional common shares of the Company upon a conversion of the preferred shares into common shares. The increase in common shares to be received upon a conversion is a deemed distribution for federal income tax purposes.For tax purposes, the amounts characterized as ordinary income, return of capital and long-term capital gain for cash distributions paid and non-cash deemed distributions per Series C preferred share for the years ended December 31, 2024 and 2023 are as follows:Cash Distributions per Share20242023Taxable ordinary income (1)$1.4375 $1.4375 Return of capital— — Long-term capital gain— — Totals$1.4375 $1.4375 (1)  Amounts qualify in their entirety as 199A distributions.Non-cash Distributions per Share20242023Taxable ordinary income (2)$— $— Return of capital0.2769 0.2368 Long-term capital gain— — Totals$0.2769 $0.2368 (2)  For the years ended December 31, 2024 and 2023, no amounts qualify as 199A distributions. Series E Convertible Preferred SharesThe Company has 3.4 million outstanding 9.