Company: EPR-PE
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001045450-25-000051
Chunk: 179

Company: EPR PROPERTIES
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 179
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 Lease costsOperating ground lease costProperty operating expense$26,277 $26,290 $25,167 Operating office lease costGeneral and administrative expense896 896 904 Operating lease right-of-use asset impairment charges (1)Impairment charges— — 1,968 (1) During the year ended December 31, 2022, the Company recognized an impairment charge of $2.0 million. See Note 5 for the details on this impairment. The following table summarizes the weighted-average remaining lease term and the weighted-average discount rate for arrangements where the Company is the lessee as of December 31, 2024 and 2023: As of December 31, 20242023Weighted-average remaining lease term in yearsOperating ground leases14.114.6Operating office lease1.82.8Weighted-average discount rateOperating ground leases5.40 %5.37 %Operating office lease6.04 %6.04 %

17. Other Commitments and Contingencies

As of December 31, 2024, the Company had 15 development projects with commitments to fund an aggregate of approximately $164.4 million. The Company advances development costs in periodic draws. If the Company determines that construction is not being completed in accordance with the terms of the development agreement, it can discontinue funding construction draws. The Company has agreed to lease the properties to the operators at pre-determined rates upon completion of construction.The Company has certain commitments related to its mortgage notes and notes receivable investments that it may be required to fund in the future. The Company is generally obligated to fund these commitments at the request of the borrower or upon the occurrence of events outside of its direct control. As of December 31, 2024, the Company had three mortgage notes with commitments totaling approximately $49.3 million. If commitments are funded in the future, interest will be charged at rates consistent with the existing investments. 

In connection with construction of the Company's development projects and related infrastructure, certain public agencies require posting of surety bonds to guarantee that the Company's obligations are satisfied. These bonds expire upon the completion of the improvements or infrastructure. As of December 31, 2024, the Company had three surety bonds outstanding totaling $0.6 million. 

102

EPR PROPERTIES Notes to Consolidated Financial StatementsDecember 31, 2024, 2023 and 2022

18.  Segment Information

The Company