Company: EPR-PE
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001045450-25-000051
Chunk: 2

Company: EPR PROPERTIES
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1
Chunk 2
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 below) consisted of the following property types (owned or financed):

•157 theatre properties;

•58 eat & play properties (including seven theatres located in entertainment districts);

•24 attraction properties;

•11 ski properties;

•four experiential lodging properties;

•22 fitness & wellness properties; 

•one gaming property; and

•one cultural property.

We have excluded three experiential lodging properties held in joint ventures from the property count above. One was transferred to our joint venture partner on February 4, 2025. As we have previously disclosed, the remaining two properties sustained significant hurricane damage and we continue to work in good faith with our joint venture partners, the non-recourse debt provider and the insurance companies to identify a path forward, which we expect to result in the eventual removal of the properties from our portfolio, although there can be no assurances as to the outcome of those discussions. Included in the property count are two experiential lodging properties held in unconsolidated joint ventures in which we continue to have interests. 

As of December 31, 2024, our wholly-owned Experiential real estate portfolio consisted of approximately 18.8 million square feet, which includes 0.3 million square feet of vacant properties we intend to sell. Our wholly-owned Experiential portfolio, excluding the vacant properties we intend to sell, was 99% leased or operated and included $112.3 million in property under development and $20.2 million in undeveloped land inventory.

Theatres

A significant portion of our Experiential portfolio consists of modern megaplex theatres. During 2024, production delays created by the 2023 writers' and actors' strikes impacted the theatre industry. Total North American box office revenues for 2024 were down approximately 4% versus 2023. It is anticipated that the strikes will have little to no impact on the movie release schedule going forward. Separately, theatre food and beverage revenues per customer visit have notably increased as compared to 2019, contributing to improved theatre rent coverage levels, which were near pre-COVID levels for 2024 despite the decrease in box office revenue.

During the period in which COVID-19 pandemic-response restrictions were placed on theatre operations, certain studios chose to experiment with hybrid content release strategies in support of their direct-to-consumer streaming services. Results of such various release experiments demonstrated the significant economic and strategic importance of theatrical exhibition and studios have broadly returned to exclusive theatrical releases for a period