Company: EPR-PE
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001045450-25-000135
Chunk: 40

Company: EPR PROPERTIES
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 balance sheet presentation and disclosure. The Company had derivative assets of $0.7 million and $2.2 million at September 30, 2025 and December 31, 2024, respectively. The Company had derivative liabilities of $4.3 million and $0.03 million at September 30, 2025 and December 31, 2024, respectively. The Company has not posted or received collateral with its derivative counterparties as of September 30, 2025 or December 31, 2024. See Note 9 for disclosures relating to the fair value of the derivative instruments. Risk Management Objective of Using DerivativesThe Company is exposed to certain risks arising from both its business operations and economic conditions, including the effect of changes in foreign currency exchange rates on foreign currency transactions and interest rates on its SOFR-based borrowings. The Company manages this risk by following established risk management policies and procedures including the use of derivatives. The Company’s objective in using derivatives is to add stability to reported earnings and to manage its exposure to foreign exchange and interest rate movements or other identified risks. To accomplish this objective, the Company primarily uses interest rate swaps, cross-currency swaps and foreign currency forwards.Cash Flow Hedges of Interest Rate RiskThe Company uses interest rate swaps as its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt or payment of variable-rate amounts from a counterparty, which results in the Company recording net interest expense that is fixed over the life of the agreements without exchange of the underlying notional amount.At September 30, 2025, the Company had one interest rate swap agreement designated as a cash flow hedge of interest rate risk. The interest rate swap agreement outstanding as of September 30, 2025 is summarized below: Fixed rateNotional Amount (in millions)IndexMaturity2.5325%$25.0 USD SOFRSeptember 30, 2026The change in the fair value of interest rate derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (AOCI) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings within the same income statement line item as the earnings effect of the hedged transaction. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of September 30, 2025, the Company estimates that during