Company: EPR-PE
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001045450-25-000082
Chunk: 29

Company: EPR PROPERTIES
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 currently evaluating the impact this guidance will have on the Company's financial statements and related disclosures. 

3. Real Estate Investments

The following table summarizes the carrying amounts of real estate investments as of March 31, 2025 and December 31, 2024 (in thousands):March 31, 2025December 31, 2024Buildings and improvements$4,599,164 $4,632,557 Furniture, fixtures & equipment121,512 118,575 Land1,200,584 1,218,418 Leasehold interests28,453 28,453 5,949,713 5,998,003 Accumulated depreciation(1,595,820)(1,562,645)Total$4,353,893 $4,435,358 

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Depreciation expense on real estate investments was $40.1 million and $39.5 million for the three months ended March 31, 2025 and 2024, respectively.

4. Investments and Dispositions

The Company's investment spending during the three months ended March 31, 2025 totaled $37.7 million, and included $14.3 million for the acquisition of an attraction property in New Jersey. Investment spending for the three months ended March 31, 2025 also included experiential build-to-suit development and redevelopment projects. During the three months ended March 31, 2025, the Company completed the sale of one vacant theatre property, two operating theatre properties, one vacant early childhood education center and 10 leased early childhood education centers for net proceeds totaling $70.8 million and recognized a net gain on sale totaling $9.4 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 March 31, 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 model inputs at each reporting period to reflect, if applicable, any newly originated loans, changes to specific loan information on