Company: EPR-PE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001045450-25-000135
Chunk: 35

Company: EPR PROPERTIES
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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,998,003 Accumulated depreciation(1,671,309)(1,562,645)Total$4,380,628 $4,435,358 Depreciation expense on real estate investments was $122.8 million and $121.9 million for the nine months ended September 30, 2025 and 2024, respectively.

4. Investments and Dispositions

The Company's investment spending during the nine months ended September 30, 2025 totaled $140.8 million, and included $14.3 million for the acquisition of an attraction property in New Jersey and $1.6 million for the acquisition of land for a new build-to-suit eat & play property in Virginia, which has a total expected cost of approximately $19.0 million at completion in 2026. Additionally, the Company acquired land for $1.2 million and provided mortgage financing of $5.9 million secured by the improvements of a fitness & wellness property in Georgia as well as provided mortgage financing of approximately $20.0 million secured by a fitness and wellness property in Winnipeg, Canada. Investment spending for the nine months ended September 30, 2025 also included experiential build-to-suit development and redevelopment projects. During the nine months ended September 30, 2025, the Company completed the sale of three vacant theatre properties, two operating theatre properties, two leased theatre properties, one vacant early childhood education center, one land parcel and 10 leased early childhood education centers for net proceeds totaling $125.7 million and recognized a net gain on sale totaling $30.8 million.

5. Investment in Mortgage Notes and Notes Receivable 

The Company measures expected credit losses on its mortgage notes and notes receivable on an individual basis because its financial instruments do not have similar risk characteristics. The Company uses a forward-looking commercial real estate loss forecasting tool to estimate its current expected credit losses (CECL) for each of its mortgage notes and notes receivable on a loan-by-loan basis. As of September 30, 2025, the Company did not anticipate any prepayments. Therefore, the contractual terms of its mortgage notes and notes receivable were used for the calculation of the expected credit losses. The Company updates the CECL model inputs at each reporting period to reflect, if applicable, any newly originated loans, changes to specific loan information on existing loans and current macroeconomic conditions. The CECL allowance is a valuation account that is deducted from