The following discussion should be read in conjunction with the consolidated
financial statements and notes thereto included in this Quarterly Report on Form
10-Q of EPR Properties (the "Company", "EPR", "we" or "us"). The forward-looking
statements included in this discussion and elsewhere in this Quarterly Report on
Form 10-Q involve risks and uncertainties, including anticipated financial
performance, anticipated liquidity and capital resources, business prospects,
industry trends, shareholder returns, performance of leases by tenants,
performance on loans to customers and other matters, which reflect management's
best judgment based on factors currently known. See "Cautionary Statement
Concerning Forward-Looking Statements" which is incorporated herein by
reference. Actual results and experience could differ materially from the
anticipated results and other expectations expressed in our forward-looking
statements as a result of a number of factors, including but not limited to
those discussed in Item 1A - "Risk Factors" in our Annual Report on Form 10-K
for the year ended December 31, 2020 filed with the SEC on February 25, 2021.

Overview

Business
Our principal business objective is to enhance shareholder value by achieving
predictable and increasing Funds From Operations As Adjusted ("FFOAA") and
dividends per share. Our strategy is to focus on long-term investments in the
Experiential sector which benefit from our depth of knowledge and relationships,
and which we believe offer sustained performance throughout most economic
cycles.

Our investment portfolio includes ownership of and long-term mortgages on
Experiential and Education properties. Substantially all of our owned
single-tenant properties are leased pursuant to long-term, triple-net leases,
under which the tenants typically pay all operating expenses of the property.
Tenants at our owned multi-tenant properties are typically required to pay
common area maintenance charges to reimburse us for their pro-rata portion of
these costs. We also own certain experiential lodging assets structured using
traditional REIT lodging structures.

It has been our strategy to structure leases and financings to ensure a positive
spread between our cost of capital and the rentals or interest paid by our
tenants. We have primarily acquired or developed new properties that are
pre-leased to a single tenant or multi-tenant properties that have a high
occupancy rate. We have also entered into certain joint ventures and we have
provided mortgage note financing. We intend to continue entering into some or
all of these types of arrangements in the foreseeable future.

Historically, our primary challenges had been locating suitable properties,
negotiating favorable lease or financing terms (on new or existing properties),
and managing our portfolio as we have continued to grow. We believe our
management's knowledge and industry relationships have facilitated opportunities
for us to acquire, finance and lease properties. The current economic situation
created by the COVID-19 pandemic has impeded our growth in the near term while
our focus has been addressing challenges brought on by the pandemic, including
monitoring customer status and working with customers to help ensure long-term
stability as well as assisting them in reopening plans. Following our election
to terminate the Covenant Relief Period early and recent improvements in the
business operations of our customers, we expect our focus to return to the
growth of the Company. See more discussion on the impact of the pandemic on our
business and the early termination of the Covenant Relief Period below. Our
business is subject to a number of risks and uncertainties, including those
described in Item 1A - "Risk Factors" in our Annual Report on Form 10-K for the
year ended December 31, 2020 filed with the SEC on February 25, 2021.

As of June 30, 2021, our total assets were approximately $6.1 billion (after
accumulated depreciation of approximately $1.1 billion) with properties located
in 44 states and Ontario, Canada. Our total investments (a non-GAAP financial
measure) were approximately $6.5 billion at June 30, 2021. See "Non-GAAP
Financial Measures" for the calculation of total investments and reconciliation
of total investments to "Total assets" in the consolidated balance sheet at
June 30, 2021 and December 31, 2020. We group our investments into two
reportable segments, Experiential and Education. As of June 30, 2021, our
Experiential investments comprised $5.9 billion, or 91%, and our Education
investments comprised $0.6 billion, or 9%, of our total investments.

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As of June 30, 2021, our Experiential segment (excluding property under
development and undeveloped land inventory) consisted of the following property
types (owned or financed):
•177 theatre properties;
•57 eat & play properties (including seven theatres located in entertainment
districts);
•18 attraction properties;
•13 ski properties;
•seven experiential lodging properties;
•one gaming property;
•three cultural properties; and
•seven fitness & wellness properties.

As of June 30, 2021, our owned Experiential real estate portfolio consisted of
approximately 19.3 million square feet, which was 95.0% leased and included
$35.1 million in property under development and $20.2 million in undeveloped
land inventory.

As of June 30, 2021, our Education segment (excluding undeveloped land inventory) consisted of the following property types (owned or financed): •65 early childhood education center properties; and •nine private school properties.

As of June 30, 2021, our owned Education real estate portfolio consisted of approximately 1.4 million square feet, which was 100% leased and included $3.0 million in undeveloped land inventory.

The combined owned portfolio consisted of 20.7 million square feet and was 95.4% leased.



COVID-19 Update
We continue to be subject to risks and uncertainties resulting from the COVID-19
pandemic. The COVID-19 pandemic severely impacted global economic activity and
caused significant volatility and negative pressure in financial markets. In
response to the COVID-19 pandemic, many jurisdictions within the United States
and abroad instituted health and safety measures, including quarantines,
mandated business and school closures and travel restrictions. As a result, the
COVID-19 pandemic severely impacted experiential real estate properties, given
that such properties involve congregate social activity and discretionary
consumer spending. Although many of these health and safety measures have been
lifted, the extent of the impact of the COVID-19 pandemic on our business still
remains highly uncertain and difficult to predict.

As of June 30, 2021, approximately 99% of our theatre locations and 98% of our
non-theatre locations were open for business, excluding normal seasonal
closings. The continuing impact of the COVID-19 pandemic on our business will
depend on several factors, including, but not limited to, the scope, severity
and duration or any resurgence of the pandemic (including COVID-19 variants),
the actions taken to contain the outbreak or any resurgence or mitigate their
impacts, the distribution of vaccines and the efficacy of those vaccines, the
ability of communities to achieve herd immunity, the public's confidence in the
health and safety measures implemented by our tenants and borrowers, and the
continuing direct and indirect economic effects of the outbreak and containment
measures, and the ability of our tenants and borrowers to recover from the
negative economic impacts of the pandemic as it subsides and, in many cases,
service elevated levels of debt resulting from the pandemic, all of which are
uncertain and cannot be predicted. During 2020 and the six months ended June 30,
2021, the COVID-19 pandemic negatively affected our business, and could continue
to have material adverse effects on our financial condition, results of
operations and cash flows.

Our consolidated financial statements reflect estimates and assumptions made by
management that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and reported amounts of revenue and expenses during the
reporting periods
                                       34
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presented. We considered the continuing impact of the COVID-19 pandemic on the
assumptions and estimates used in determining our financial condition and
results of operations for the six months ended June 30, 2021. The following were
impacts to our financial statements during the six months ended June 30, 2021
arising out of or relating to the COVID-19 pandemic:

•We continued to recognize revenue on a cash basis for certain tenants including
American-Multi Cinema, Inc. ("AMC") and Regal, a subsidiary of Cineworld Group.
•We reduced rental revenue by $7.2 million due to rent abatements.
•We have deferred approximately $50.0 million of amounts due from tenants and
$1.9 million due from borrowers that were booked as receivables as of June 30,
2021. Additionally, we have amounts due from tenants that were not booked as
receivables because the full amounts were not deemed probable of collection as a
result of the COVID-19 pandemic. The amounts not booked as receivables remain
obligations of the tenants and will be recognized as revenue when received. The
repayment terms for all of these deferments vary by tenant or borrowers.
•As of June 30, 2021, we continued to be in the Covenant Relief Period under the
agreement that governs our unsecured revolving credit facility and our unsecured
term loan facility ("Consolidated Credit Agreement") and the agreement that
governs our private placement notes ("Note Purchase Agreement"). During the
Covenant Relief Period, our obligation to comply with certain covenants under
these agreements was waived in light of the uncertainty related to impacts of
the COVID-19 pandemic on us and our tenants and borrowers. We paid higher
interest costs during the Covenant Relief Period. The Consolidated Credit
Agreement and Note Purchase Agreement also imposed additional restrictions on us
during the Covenant Relief Period, including limitations on making investments,
incurring indebtedness, making capital expenditures, paying dividends or making
other distributions, repurchasing our shares, voluntarily prepaying certain
indebtedness, encumbering certain assets and maintaining a minimum liquidity
amount, in each case subject to certain exceptions. The term "Covenant Relief
Period," as used in this Quarterly Report on Form 10-Q, generally means the
period of time beginning on June 29, 2020 and ending on (i) December 31, 2021,
in the case of our Consolidated Credit Agreement, or (ii) October 1, 2021
(subject to extension to January 1, 2022 at our election, subject to certain
conditions), in the case of our Note Purchase Agreement governing our private
placement notes. We had the right under certain circumstances to terminate the
Covenant Relief Period earlier, which we exercised subsequent to June 30, 2021
as discussed below.
•In connection with amending our Consolidated Credit Agreement and Note Purchase
Agreement to provide for the Covenant Relief Period discussed above, certain of
our key subsidiaries guaranteed our obligations based on our unsecured debt
ratings. If our unsecured debt rating had been further downgraded by Moody's
during the Covenant Relief Period, we would have been required to pledge the
equity interests in certain subsidiary guarantors to secure our obligations
under our unsecured credit facilities and private placement notes; however, upon
termination of the Covenant Relief Period as discussed above, we were released
from this obligation.
•Due to improved financial performance, on July 12, 2021, we provided notice of
our election to terminate the Covenant Relief Period early and submitted
compliance certificates for the quarter ended June 30, 2021 for our Consolidated
Credit Agreement and Note Purchase Agreement. The certificates provided that we
were in compliance with all of our financial and other covenants, and would have
been even if the Covenant Relief Period had not been in effect during the
quarter ended June 30, 2021. Our election to terminate the Covenant Relief
Period early means that, effective July 13, 2021, the interest rates on the debt
governed by these agreements returned to the previous levels defined in the
agreements, in each case based on our unsecured debt ratings. By terminating the
Covenant Relief Period, we were also released from certain restrictions under
these agreements, including restrictions on investments, capital expenditures,
incurrences of indebtedness and payment of dividends. See Note 7 for additional
information on interest rates during and after the Covenant Relief Period.

The monthly cash dividends to common shareholders were temporarily suspended
following the common share dividend paid on May 15, 2020 to shareholders of
record as of April 30, 2020. On July 13, 2021, following termination of the
Covenant Relief Period, we declared a monthly cash dividend payable on August
16, 2021 to shareholders of record on July 30, 2021.
                                       35
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Collections of rent and interest were impacted during the quarter by the
COVID-19 pandemic. For the six months ended June 30, 2021, tenants and borrowers
paid approximately 85% contractual cash revenue (including approximately
$2.4 million in deferred rent from cash basis tenants and from tenants for which
the deferred payments were not previously recognized as revenue). In addition,
during the six months ended June 30, 2021, we collected $45.9 million of
deferred rent and interest from accrual basis tenants and borrowers that reduced
related accounts and interest receivable. Contractual cash revenue is an
operational measure and represents aggregate cash payments for which we are
entitled under existing contracts, excluding the impact of any temporary
abatements or deferrals, percentage rent (rents received over base amounts),
non-cash revenue and revenue from taxable REIT subsidiaries ("TRSs"). While
deferments for this and future periods delay rent or mortgage payments, these
deferments generally do not release customers from the obligation to pay the
deferred amounts in the future. Deferred rent amounts are reflected in our
financial statements as accounts receivable if collection is determined to be
probable or will be recognized when received as variable lease payments if
collection is determined to not be probable, while deferred mortgage payments
are reflected as mortgage notes and related accrued interest receivable, less
any allowance for credit loss. Certain agreements with tenants where remaining
lease terms are extended, or other changes are made that do not qualify for the
treatment in the Financial Accounting Standards Board ("FASB") Staff Q&A on
Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects
of the COVID-19 Pandemic, are treated as lease modifications. In these
circumstances upon an executed lease modification, if the tenant is not being
recognized on a cash basis, the contractual rent reflected in accounts
receivable and the straight-line rent receivable will be amortized over the
remaining term of the lease against rental revenue. In limited cases, tenants
may be entitled to the abatement of rent during governmentally imposed
prohibitions on business operations which is recognized in the period to which
it relates, or we may provide rent concessions to tenants. In cases where we
provide concessions to tenants to which they are not otherwise entitled, those
amounts are recognized in the period in which the concession is granted unless
the changes are accounted for as lease modifications.

Operating Results
Our total revenue, net income (loss) available to common shareholders per
diluted share and Funds From Operations As Adjusted ("FFOAA") per diluted share
(a non-GAAP financial measure) are detailed below for the three and six months
ended June 30, 2021 and 2020 (in millions, except per share information):
                                    Three Months Ended June 30,                         Six Months Ended June 30,
                                         2021            2020        Change                 2021           2020        Change
Total revenue                      $        125.4    $   106.4            18  %       $       237.1    $   257.4            (8) %
Net income (loss) available to
common shareholders per diluted
share                              $         0.17    $   (0.90)

119 % $ 0.13 $ (0.49) 127 % FFOAA per diluted share

            $         0.68    $    0.41            66  %       $        1.15    $    1.39           (17) %



The major factors impacting our results for the three and six months ended June
30, 2021, as compared to the three and six months ended June 30, 2020 were as
follows:
•The effects of the COVID-19 pandemic as described above;
•The effect of write-offs of straight-line receivables of approximately $13.0
million recognized during the six months ended June 30, 2020;
•The effect of property acquisitions as well as dispositions and mortgage note
payoffs that occurred in 2021 and 2020;
•The decrease in other income and other expenses primarily due to the
government-required closure of the Kartrite Resort and Indoor Waterpark in
Sullivan County, New York due to the COVID-19 pandemic in mid-March of 2020;
•The decrease in impairment charges;
•The decrease in credit loss (benefit) expense; and
•The decrease in common shares outstanding.

                                       36
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For further detail on items impacting our operating results, see the section
below titled "Results of Operations". FFOAA is a non-GAAP financial measure. For
the definitions and further details on the calculations of FFOAA and certain
other non-GAAP financial measures, see the section below titled "Non-GAAP
Financial Measures."

Critical Accounting Policies and Estimates



The preparation of financial statements in conformity with accounting principles
generally accepted in the United States ("GAAP") requires management to make
estimates and assumptions in certain circumstances that affect amounts reported
in the accompanying consolidated financial statements and related notes. In
preparing these financial statements, management has made its best estimates and
assumptions that affect the reported assets and liabilities and the reported
amounts of revenues and expenses during the reporting period. The most
significant assumptions and estimates relate to the valuation of real estate,
accounting for real estate acquisitions, assessing the collectibility of
receivables and the credit loss related to mortgage and other notes receivable.
Application of these assumptions requires the exercise of judgment as to future
uncertainties and, as a result, actual results could differ from these
estimates. A summary of critical accounting policies is included in our Annual
Report on Form 10-K for the year ended December 31, 2020. For the six months
ended June 30, 2021, there were no changes to critical accounting policies.

Recent Developments



Investment Spending
Our investment spending during the six months ended June 30, 2021 and 2020
totaled $68.6 million and $53.6 million, respectively, and is detailed below (in
thousands):
                                                              Six Months Ended June 30, 2021
                                                                                                                           Mortgage Notes
                                            Total Investment                                                                 or Notes       Investment in
          Operating Segment                     Spending       New Development    Re-development     Asset Acquisition      Receivable      Joint Ventures
Experiential:
Theatres                                    $       3,049    $          2,940    $          109    $                -    $            -    $           -
Eat & Play                                         34,918               7,855               311                26,752                 -                -
Attractions                                            29                   -                29                     -                 -                -
Ski                                                 2,793                   -                 -                     -             2,793                -
Experiential Lodging                               21,684              13,922             5,822                     -                 -            1,940

Cultural                                            4,389                   -                10                     -             4,379                -
Fitness & Wellness                                  1,795                   -                 -                     -             1,795                -
Total Experiential                                 68,657              24,717             6,281                26,752             8,967            1,940

Education:

Total Education                                         -                   -                 -                     -                 -                -

Total Investment Spending                   $      68,657    $         24,717    $        6,281    $           26,752    $        8,967    $       1,940


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                                                         Six Months Ended June 30, 2020
                                                                                                                  Mortgage Notes
                                   Total Investment                                                                 or Notes      Investment in
     Operating Segment                 Spending       New Development    Re-development     Asset Acquisition      Receivable     Joint Ventures
Experiential:
Theatres                           $      26,118    $            700    $        3,310    $           22,108    $            -    $         -
Eat & Play                                12,791              12,013               778                     -                 -              -
Attractions                                  970                   -               970                     -                 -              -

Experiential Lodging                      11,106              10,708               398                     -                 -              -

Cultural                                     152                   -               152                     -                 -              -
Fitness & Wellness                         2,441                   -                 -                     -             2,441              -
Total Experiential                        53,578              23,421             5,608                22,108             2,441              -

Education:
Early Childhood Education
Centers                                        3                   -                 -                     -                 3              -

Total Education                                3                   -                 -                     -                 3              -

Total Investment Spending $ 53,581 $ 23,421 $

      5,608    $           22,108    $        2,444    $         -



The above amounts include $1.1 million and $0.5 million in capitalized interest
for the six months ended June 30, 2021 and 2020, respectively, and $0.2 million
in capitalized other general and administrative direct project costs for both
the six months ended June 30, 2021 and 2020. Excluded from the table above is
approximately $2.2 million of maintenance capital expenditures and other
spending for both the six months ended June 30, 2021 and 2020.

We limited our investment spending during the three and six months ended June
30, 2021 to enhance our liquidity position in light of the negative impact of
the COVID-19 pandemic. As discussed in more detail in Note 7, on July 12, 2021,
we provided notice of our election to terminate the Covenant Relief Period
early. Effective July 13, 2021, we were released from certain restrictions under
the credit facilities and private placement notes that limited our investments
and capital expenditures.

Dispositions

During the six months ended June 30, 2021, we completed the sale of two theatre properties and one outparcel for net proceeds totaling $28.6 million. In connection with these sales, we recognized a combined gain on sale of $0.7 million.

On March 22, 2021, we received $5.1 million in proceeds representing prepayment in full on a mortgage note receivable that was secured by a private school property. No prepayment fee was received in connection with this note payoff.


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Results of Operations

Three and six months ended June 30, 2021 compared to the three and six months ended June 30, 2020



Analysis of Revenue

The following table summarizes our total revenue (dollars in thousands):


                                Three Months Ended June 30,                             Six Months Ended June 30,
                                     2021            2020             Change                2021            2020              Change
Minimum rent (1)               $      107,100    $  89,589          $ 17,511          $      201,290    $ 227,808          $ (26,518)
Percentage rent                         2,016        1,454               562                   4,046        4,211               (165)
Straight-line rent (2)                  1,420        2,229              (809)                  2,709       (7,479)            10,188
Tenant reimbursements                   5,000        4,169               831                   9,822        7,867              1,955
Other rental revenue                      347           90               257                     630          167                463
Total Rental Revenue           $      115,883    $  97,531          $

18,352 $ 218,497 $ 232,574 $ (14,077)



Other income (3)                        1,033          416               617                   1,711        7,989             (6,278)
Mortgage and other financing
income                                  8,446        8,413                33                  16,919       16,809                110
Total revenue                  $      125,362    $ 106,360          $ 19,002          $      237,127    $ 257,372          $ (20,245)



(1) For the three months ended June 30, 2021 compared to the three months ended
June 30, 2020, the increase in minimum rent resulted primarily from an increase
of $21.6 million related to rental revenue on existing properties including
improved collections in rent being recognized on a cash basis as well as
scheduled rent increases. In addition, there was an increase in minimum rent of
$1.8 million related to property acquisitions and developments completed in 2021
and 2020. This was partially offset by a decrease in rental revenue of $5.0
million from property dispositions and $0.9 million due to vacant properties.

For the six months ended June 30, 2021 compared to the six months ended June 30,
2020, the decrease in minimum rent resulted primarily from the impact of the
COVID-19 pandemic, with a decrease of $12.8 million on existing properties
mostly due to restructured agreements, rent recognized on a cash basis, deferred
rent not recognized because collection was determined not probable and rent
abatements. In addition, there was a decrease in rental revenue of $11.0 million
from property dispositions and $5.4 million due to vacant properties. This was
partially offset by an increase in minimum rent of $2.7 million related to
property acquisitions and developments completed in 2021 and 2020 as well as
scheduled rent increases.

During the three and six months ended June 30, 2021, we renewed seven lease
agreements on approximately 394 thousand square feet. We experienced an increase
of 9.5% in rental rates and paid no leasing commissions with respect to these
lease renewals.

(2) The increase in straight-line rent for the six months ended June 30, 2021
compared to the six months ended June 30, 2020 was primarily due to write-offs
totaling $13.0 million recognized during the six months ended June 30, 2020,
which was comprised of $5.0 million of straight-line accounts receivable and
$8.0 million of sub-lessor ground lease straight-line accounts receivable due to
the COVD-19 pandemic. This increase was partially offset by a reduction in
straight-line rental revenue due to revenue from several tenants being
recognized on a cash basis.

(3) The decrease in other income for the six months ended June 30, 2021 related
primarily to a decrease in operating income as a result of the closure of the
Kartrite Resort due to the COVID-19 pandemic.

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Analysis of Expenses and Other Line Items



The following table summarizes our expenses and other line items (dollars in
thousands):
                                  Three Months Ended June 30,                            Six Months Ended June 30,
                                       2021           2020              Change                2021          2020             Change
Property operating expense       $       14,678    $ 15,329          $    (651)         $      29,991    $ 28,422          $  1,569
Other expense (1)                         3,025       2,798                227                  5,577      12,332            (6,755)
General and administrative
expense                                  11,376      10,432                944                 22,712      21,420             1,292

Costs associated with loan
refinancing or payoff                         -         820               (820)                   241         820              (579)
Interest expense, net (2)                38,312      38,340                (28)                77,506      73,093             4,413
Transaction costs                           662         771               (109)                 1,210       1,846              (636)
Credit loss (benefit) expense
(3)                                      (2,819)      3,484             (6,303)                (5,581)      4,676           (10,257)
Impairment charges (4)                        -      51,264            (51,264)                     -      51,264           (51,264)
Depreciation and amortization
(5)                                      40,538      42,450             (1,912)                80,864      86,260            (5,396)
Equity in loss from joint
ventures                                 (1,151)     (1,724)               573                 (2,582)     (2,144)             (438)
Impairment charges on joint
ventures (6)                                  -      (3,247)             3,247                      -      (3,247)            3,247
Gain on sale of real estate                 511          22                489                    712         242               470

Income tax (expense) benefit               (398)      1,312             (1,710)                  (805)      2,063            (2,868)

Preferred dividend requirements          (6,033)     (6,034)                 1                (12,067)    (12,068)                1


(1) The decrease in other expenses for the six months ended June 30, 2021
related primarily to a decrease in operating expenses as a result of the closure
of the Kartrite Resort due to the COVID-19 pandemic.
(2) The increase in interest expense, net for the six months ended June 30, 2021
compared to the six months ended June 30, 2020, resulted primarily from an
increase in the weighted average interest rate on outstanding debt and a
decrease in interest income from short-term investments related to cash on hand.
This was partially offset by an increase in interest cost capitalized on
development projects.

(3) The change in the credit loss (benefit) expense for the three and six months
ended June 30, 2021 compared to the three and six months ended June 30, 2020 was
primarily due to the expectation in the credit loss model of the timing of the
economic recovery from the impacts of the COVID-19 pandemic as well as a $1.5
million partial repayment by a borrower on a fully reserved note receivable.

(4) Impairment charges recognized during the three and six months ended June 30,
2020 related to six properties with revised estimated undiscounted cash flows
and shorter hold periods as a result of the COVID-19 pandemic and was comprised
of $36.3 million of impairments of real estate investments, and $15.0 million of
impairments of operating lease right-of-use assets.

(5) The decrease in depreciation and amortization expense resulted primarily from property dispositions that occurred during 2020 and 2021 as well as property impairments that occurred during 2020. This decrease was partially offset by acquisitions and developments completed in 2020 and 2021.



(6) Impairment charges on joint ventures for the three and six months ended June
30, 2020 related to other-than-temporary impairment charges on three theatre
projects located in China.

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Liquidity and Capital Resources



Cash and cash equivalents were $509.8 million at June 30, 2021. In addition, we
had restricted cash of $3.6 million at June 30, 2021. Of the restricted cash at
June 30, 2021, $2.4 million related to cash held for our tenants' off-season
rent reserves and $1.2 million related primarily to escrow deposits required for
property management agreements or held for potential acquisitions and
redevelopments.

Mortgage Debt, Senior Notes, Unsecured Revolving Credit Facility and Unsecured
Term Loan Facility
At June 30, 2021, we had total debt outstanding of $3.1 billion of which 99% was
unsecured.

At June 30, 2021, we had outstanding $2.4 billion in aggregate principal amount
of unsecured senior notes (excluding the private placement notes discussed
below) ranging in interest rates from 3.75% to 5.25%. The notes contain various
covenants, including: (i) a limitation on incurrence of any debt that would
cause the ratio of our debt to adjusted total assets to exceed 60%; (ii) a
limitation on incurrence of any secured debt that would cause the ratio of
secured debt to adjusted total assets to exceed 40%; (iii) a limitation on
incurrence of any debt that would cause our debt service coverage ratio to be
less than 1.5 times; and (iv) the maintenance at all times of our total
unencumbered assets such that they are not less than 150% of our outstanding
unsecured debt.

In light of the financial and operational impacts of the COVID-19 pandemic on
us, our tenants and borrowers, during the year ended December 31, 2020, we
amended our Consolidated Credit Agreement, which governs our unsecured revolving
credit facility and our unsecured term loan facility. The amendments modified
certain provisions and waived our obligation to comply with certain covenants
under this debt agreement during the Covenant Relief Period. Additionally,
during the year ended December 31, 2020, we further amended our Note Purchase
Agreement, which governs our private placement notes. The amendments modified
certain provisions and waived our obligation to comply with certain covenants
under this debt agreement during the Covenant Relief Period. We had the right
under certain circumstances to terminate the Covenant Relief Period earlier.

Due to improved financial performance, on July 12, 2021, we provided notice of
our election to terminate the Covenant Relief Period early and submitted
compliance certificates for the quarter ended June 30, 2021 for our Consolidated
Credit Agreement and Note Purchase Agreement. The certificates provided that we
are in compliance with all of our financial and other covenants, and would have
been even if the Covenant Relief Period had not been in effect during the
quarter ended June 30, 2021. Our election to terminate the Covenant Relief
Period early means that, effective July 13, 2021, the interest rates on the debt
governed by these agreements returned to the previous levels defined in the
agreements, in each case based on our unsecured debt ratings. By terminating the
Covenant Relief Period, we were also released from certain restrictions under
these agreements, including restrictions on investments, capital expenditures,
incurrences of indebtedness and payment of dividends.

At June 30, 2021, we had no outstanding balance under our $1.0 billion unsecured
revolving credit facility. The unsecured revolving credit facility bears
interest at a floating rate of LIBOR plus 1.625% (with a LIBOR floor of 0.50%),
which was 2.125%, with a facility fee of 0.375%. Effective July 13, 2021, after
we terminated the Covenant Relief Period, the interest rate, based on our
unsecured debt ratings, returned to LIBOR plus 1.20% (with a LIBOR floor of
zero) and the facility fee was reduced to 0.25%.

At June 30, 2021, the unsecured term loan facility had a balance of $400.0
million with interest at a floating rate of LIBOR plus 2.00% (with a LIBOR floor
of 0.50%), which was 2.50%. Effective, July 13, 2021, after we terminated the
Covenant Relief Period, the interest rate, based on our unsecured debt ratings,
returned to LIBOR plus 1.35% (with a LIBOR floor of zero). As of June 30, 2021,
all of this LIBOR-based debt was fixed with interest rate swaps from April 5,
2019 to February 7, 2022. During the Covenant Relief Period and based on our
unsecured debt ratings, the interest rate swaps were fixed at 4.40% for $350.0
million of borrowings and 4.60% for the remaining $50.0 million of borrowings,
and effective July 13, 2021, after the Covenant Relief Period were 3.40% for
$350.0 million of borrowings and 3.60% for the remaining $50.0 million of
borrowings, however these rates are subject to change based on the Company's
unsecured debt ratings.

At June 30, 2021, we had outstanding $316.2 million of senior unsecured notes
that were issued in a private placement transaction. The private placement notes
were issued in two tranches with $148.0 million due August 22,
                                       41
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2024, and $192.0 million due August 22, 2026. At June 30, 2021, the interest
rates for the private placement notes were 5.60% and 5.81% for the Series A
notes due 2024 and the Series B notes due 2026, respectively. Effective July 13,
2021, after we terminated the Covenant Relief Period, the interest rates for the
private placement notes returned to 4.35% and 4.56% for the Series A notes and
the Series B notes, respectively. During the six months ended June 30, 2021, we
used a portion of our cash proceeds from property sales to reduce the principal
of our private placement notes by $23.8 million in accordance with the above
amendments to the Note Purchase Agreement.

Our unsecured credit facilities and the private placement notes contain
financial covenants or restrictions that limit our levels of consolidated debt,
secured debt, investments outside certain categories, stock repurchases and
dividend distributions and require us to maintain a minimum consolidated
tangible net worth and meet certain coverage levels for fixed charges and debt
service. The amendments to these debt agreements imposed a new minimum liquidity
financial covenant during the Covenant Relief Period, provided relief from
compliance with certain other financial covenants during the Covenant Relief
Period and permanently modified certain other financial covenants. The
amendments also imposed additional restrictions on us during the Covenant Relief
Period, including limitations on making investments, incurring indebtedness,
making capital expenditures and paying dividends and making other distributions,
repurchasing our shares, voluntarily prepaying certain indebtedness, encumbering
certain assets and maintaining a minimum liquidity amount, in each case subject
to certain exceptions. In addition, we had to cause certain of our key
subsidiaries to guarantee our obligations based on our unsecured debt ratings,
and we would have been required to pledge the equity interests of such
subsidiary guarantors if certain subsequent events occurred during the Covenant
Relief Period; however, the requirement to pledge such equity interest ended
when the Covenant Relief Period ended. As discussed above, we terminated the
Covenant Relief Period early and as a result were released from the additional
restrictions discussed above related to the amendments.

Additionally, these debt instruments contain cross-default provisions if we
default under other indebtedness exceeding certain amounts. Those cross-default
thresholds vary from $50.0 million to $75.0 million, depending upon the debt
instrument. We were in compliance with all financial and other covenants under
our debt instruments at June 30, 2021.

Our principal investing activities are acquiring, developing and financing
Experiential and Education properties. These investing activities have generally
been financed with senior unsecured notes, as well as the proceeds from equity
offerings. Our unsecured revolving credit facility is also used to finance the
acquisition or development of properties, and to provide mortgage financing. We
have and expect to continue to issue debt securities in public or private
offerings. We have and may in the future assume mortgage debt in connection with
property acquisitions or incur new mortgage debt on existing properties. We may
also issue equity securities in connection with acquisitions. Continued growth
of our real estate investments and mortgage financing portfolios will depend in
part on our continued ability to access funds through additional borrowings and
securities offerings and, to a lesser extent, our ability to assume debt in
connection with property acquisitions. We may also fund investments with the
proceeds from asset dispositions.

Liquidity Requirements
Short-term liquidity requirements consist primarily of normal recurring
corporate operating expenses, debt service requirements and distributions to
shareholders. We have historically met these requirements primarily through cash
provided by operating activities. The table below summarizes our cash flows
(dollars in thousands):
                                                             Six Months Ended June 30,
                                                                 2021                 2020
 Net cash provided by operating activities             $      140,800

$ 57,413


 Net cash used by investing activities                        (26,766)      

(52,978)


 Net cash (used) provided by financing activities            (628,630)              473,879



                                       42

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We currently anticipate that our cash on hand, cash from operations, funds
available under our unsecured revolving credit facility and proceeds from asset
dispositions will provide adequate liquidity to meet our financial commitments
for the next 12 months, including to fund our operations, make interest and
principal payments on our debt, and allow distributions to our shareholders and
avoid corporate level federal income or excise tax in accordance with REIT
Internal Revenue Code requirements.

As discussed above, we have agreed to rent and mortgage payment deferral
arrangements with most of our customers as a result of the COVID-19 pandemic.
Under these deferral arrangements, our customers are required to resume rent and
mortgage payments at negotiated times, and begin repaying deferred amount under
negotiated schedules, which will begin at various times in the future. In
addition, the continuing impact of the COVID-19 pandemic may result in further
extensions or adjustments for our customers, which we cannot predict at this
time. In the near term, we believe we can fund our short-term liquidity
requirements primarily with cash on hand and funds borrowed under our unsecured
revolving credit facility.
Commitments
As of June 30, 2021, we had 17 development projects with commitments to fund an
aggregate of approximately $78.6 million, of which approximately $11.2 million
is expected to be funded in 2021. Development costs are advanced by us in
periodic draws. If we determine that construction is not being completed in
accordance with the terms of the development agreement, we can discontinue
funding construction draws. We have agreed to lease the properties to the
operators at pre-determined rates upon completion of construction.

We have certain commitments related to our mortgage notes and notes receivable
investments that we may be required to fund in the future. We are generally
obligated to fund these commitments at the request of the borrower or upon the
occurrence of events outside of our direct control. As of June 30, 2021, we had
two mortgage notes and one note receivable with commitments totaling
approximately $24.3 million of which approximately $3.6 million is expected to
be funded in 2021. If commitments are funded in the future, interest will be
charged at rates consistent with the existing investments.

In connection with construction of our development projects and related infrastructure, certain public agencies require posting of surety bonds to guarantee that our obligations are satisfied. These bonds expire upon the completion of the improvements or infrastructure. As of June 30, 2021, we had four surety bonds outstanding totaling $33.3 million.



Liquidity Analysis
As noted above, during the six months ended June 30, 2021, we paid off the
balance of $590.0 million on our unsecured revolving credit facility. In
analyzing our liquidity, we expect that our cash provided by operating
activities will meet our normal recurring operating expenses, recurring debt
service requirements and dividends to shareholders.

We have no scheduled debt payments due until 2023. We currently believe that we
will be able to repay, extend, refinance or otherwise settle our debt maturities
as the debt comes due and that we will be able to fund our remaining
commitments, as necessary. However, there can be no assurance that additional
financing or capital will be available, or that terms will be acceptable or
advantageous to us, particularly in light of the continuing economic uncertainty
caused by the COVID-19 pandemic.

Our primary use of cash after paying operating expenses, debt service,
distributions to shareholders, funding share repurchases and funding existing
commitments is in growing our investment portfolio through the acquisition,
development and financing of additional properties. We expect to finance these
investments with borrowings under our unsecured revolving credit facility as
well as debt and equity financing alternatives or proceeds from asset
dispositions. The availability and terms of any such financing or sales will
depend upon market and other conditions, which have been negatively impacted by
the COVID-19 pandemic. If we borrow the maximum amount available under our
unsecured revolving credit facility, there can be no assurance that we will be
able to obtain additional or substitute investment financing. We may also assume
mortgage debt in connection with property acquisitions.

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Our investment spending and uses of cash during the Covenant Relief Period were
subject to limitations under the amendments to the agreements governing our
Consolidated Credit Agreement and Note Purchase Agreement as discussed above. In
addition, in certain circumstances, we were required to apply 100% of the
proceeds, net of certain costs, received during the Covenant Relief Period from
certain sales and dispositions, debt issuances or equity issuances, in each
case, subject to certain exceptions, to repay amounts outstanding under our
Consolidated Credit Agreement (as applicable) and Note Purchase Agreement. As
discussed above, we terminated the Covenant Relief Period early and were
released from these restrictions under the credit facilities.

Capital Structure
We believe that our shareholders are best served by a conservative capital
structure. Therefore, we seek to maintain a conservative debt level on our
balance sheet as measured primarily by our net debt to adjusted EBITDAre ratio
(see "Non-GAAP Financial Measures" for definitions). We also seek to maintain
conservative interest, fixed charge, debt service coverage and net debt to gross
asset ratios.

Our net debt to adjusted EBITDAre ratio was not meaningful at June 30, 2021
given the temporary disruption caused by the COVID-19 pandemic and the
associated accounting for tenant rent deferrals and other lease modifications.
Our net debt to gross assets ratio was 39% as of June 30, 2021 (see "Non-GAAP
Financial Measures" for calculation).

Non-GAAP Financial Measures



Funds From Operations (FFO), Funds From Operations As Adjusted (FFOAA) and
Adjusted Funds From Operations (AFFO)
The National Association of Real Estate Investment Trusts ("NAREIT") developed
FFO as a relative non-GAAP financial measure of performance of an equity REIT in
order to recognize that income-producing real estate historically has not
depreciated on the basis determined under GAAP. Pursuant to the definition of
FFO by the Board of Governors of NAREIT, we calculate FFO as net income (loss)
available to common shareholders, computed in accordance with GAAP, excluding
gains and losses from disposition of real estate and impairment losses on real
estate, plus real estate related depreciation and amortization, and after
adjustments for unconsolidated partnerships, joint ventures and other
affiliates. Adjustments for unconsolidated partnerships, joint ventures and
other affiliates are calculated to reflect FFO on the same basis. We have
calculated FFO for all periods presented in accordance with this definition.

In addition to FFO, we present FFOAA and AFFO. FFOAA is presented by adding to
FFO costs associated with loan refinancing or payoff, transaction costs,
severance expense, preferred share redemption costs, impairment of operating
lease right-of-use assets and credit loss (benefit) expense and subtracting gain
on insurance recovery and deferred income tax (benefit) expense. AFFO is
presented by adding to FFOAA non-real estate depreciation and amortization,
deferred financing fees amortization, share-based compensation expense to
management and Trustees and amortization of above and below market leases, net
and tenant allowances; and subtracting maintenance capital expenditures
(including second generation tenant improvements and leasing commissions),
straight-lined rental revenue (removing the impact of straight-line ground
sublease expense), and the non-cash portion of mortgage and other financing
income.

FFO, FFOAA and AFFO are widely used measures of the operating performance of
real estate companies and are provided here as supplemental measures to GAAP net
income (loss) available to common shareholders and earnings per share, and
management provides FFO, FFOAA and AFFO herein because it believes this
information is useful to investors in this regard. FFO, FFOAA and AFFO are
non-GAAP financial measures. FFO, FFOAA and AFFO do not represent cash flows
from operations as defined by GAAP and are not indicative that cash flows are
adequate to fund all cash needs and are not to be considered alternatives to net
income or any other GAAP measure as a measurement of the results of our
operations or our cash flows or liquidity as defined by GAAP. It should also be
noted that not all REITs calculate FFO, FFOAA and AFFO the same way so
comparisons with other REITs may not be meaningful.

                                       44
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The following table summarizes our FFO, FFOAA and AFFO including per share amounts for FFO and FFOAA, for the three and six months ended June 30, 2021 and 2020 and reconciles such measures to net income (loss) available to common shareholders, the most directly comparable GAAP measure (unaudited, in thousands, except per share information):


                                                     Three Months Ended June 30,           Six Months Ended June 30,
                                                          2021            2020                 2021           2020
FFO:

Net income (loss) available to common shareholders of EPR Properties

$       12,519    $ (68,999)         $       9,865    $ (37,915)
Gain on sale of real estate                                   (511)         (22)                  (712)        (242)

Impairment of real estate investments, net (1)                   -       36,255                      -       36,255

Real estate depreciation and amortization                   40,332       42,151                 80,441       85,676
Allocated share of joint venture depreciation                  459          378                    813          761
Impairment charges on joint ventures                             -        3,247                      -        3,247
FFO available to common shareholders of EPR
Properties                                          $       52,799    $  

13,010 $ 90,407 $ 87,782

FFOAA:


FFO available to common shareholders of EPR
Properties                                          $       52,799    $  13,010          $      90,407    $  87,782
Costs associated with loan refinancing or payoff                 -          820                    241          820
Transaction costs                                              662          771                  1,210        1,846

Impairment of operating lease right-of-use assets
(1)                                                              -       15,009                      -       15,009

Credit loss (benefit) expense                               (2,819)       3,484                 (5,581)       4,676

Gain on insurance recovery (included in other
income)                                                          -            -                    (30)           -
Deferred income tax benefit                                      -       (1,676)                     -       (2,789)

FFOAA available to common shareholders of EPR
Properties                                          $       50,642    $  

31,418 $ 86,247 $ 107,344

AFFO:


FFOAA available to common shareholders of EPR
Properties                                          $       50,642    $  31,418          $      86,247    $ 107,344
Non-real estate depreciation and amortization                  206          299                    423          584
Deferred financing fees amortization                         1,574        1,651                  3,121        3,285

Share-based compensation expense to management and trustees

                                                     3,675        3,463                  7,459        6,972

Amortization of above and below market leases, net and tenant allowances

                                          (99)        (108)                  (195)        (260)
Maintenance capital expenditures (2)                        (1,467)      (1,291)                (2,223)      (2,219)
Straight-lined rental revenue                               (1,420)      (2,229)                (2,708)       7,479
Straight-lined ground sublease expense                         111          207                    195          383
Non-cash portion of mortgage and other financing
income                                                        (216)         (97)                  (387)        (188)
AFFO available to common shareholders of EPR
Properties                                          $       53,006    $  33,313          $      91,932    $ 123,380


                                       45

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                                                  Three Months Ended June 

30, Six Months Ended June 30,


                                                       2021           2020                2021          2020
FFO per common share:
Basic                                             $       0.71    $    0.17          $      1.21    $    1.13
Diluted                                                   0.71         0.17                 1.21         1.13
FFOAA per common share:
Basic                                             $       0.68    $    0.41          $      1.15    $    1.39
Diluted                                                   0.68         0.41                 1.15         1.39
Shares used for computation (in thousands):
Basic                                                   74,781       76,310               74,704       77,388
Diluted                                                 74,870       76,310               74,772       77,388

Other financial information:
Dividends per common share                        $          -    $  0.3825

$ - $ 1.5150





(1) Impairment charges recognized during both the three and six months ended
June 30, 2020 totaled $51.3 million, which was comprised of $36.3 million of
impairments of real estate investments and $15.0 million of impairments of
operating lease right-of-use assets.
(2) Includes maintenance capital expenditures and certain second-generation
tenant improvements and leasing commissions.

The effect of the conversion of our convertible preferred shares is calculated
using the if-converted method and the conversion which results in the most
dilution is included in the computation of per share amounts. The additional
common shares that would result from the conversion of the 5.75% Series C
cumulative convertible preferred shares and the 9.00% Series E cumulative
convertible preferred shares for each of the three and six months ended June 30,
2021 and 2020, and the corresponding add-back of the preferred dividends
declared on those shares are not included in the calculation of diluted FFO and
FFOAA per share because the effect is anti-dilutive.

Net Debt
Net Debt represents debt (reported in accordance with GAAP) adjusted to exclude
deferred financing costs, net and reduced for cash and cash equivalents. By
excluding deferred financing costs, net and reducing debt for cash and cash
equivalents on hand, the result provides an estimate of the contractual amount
of borrowed capital to be repaid, net of cash available to repay it. We believe
this calculation constitutes a beneficial supplemental non-GAAP financial
disclosure to investors in understanding our financial condition. Our method of
calculating Net Debt may be different from methods used by other REITs and,
accordingly, may not be comparable to such other REITs.

Gross Assets
Gross Assets represents total assets (reported in accordance with GAAP) adjusted
to exclude accumulated depreciation and reduced for cash and cash equivalents.
By excluding accumulated depreciation and reducing cash and cash equivalents,
the result provides an estimate of the investment made by us. We believe that
investors commonly use versions of this calculation in a similar manner. Our
method of calculating Gross Assets may be different from methods used by other
REITs and, accordingly, may not be comparable to such other REITs.

Net Debt to Gross Assets
Net Debt to Gross Assets is a supplemental measure derived from non-GAAP
financial measures that we use to evaluate capital structure and the magnitude
of debt to gross assets. We believe that investors commonly use versions of this
ratio in a similar manner. Our method of calculating Net Debt to Gross Assets
may be different from methods used by other REITs and, accordingly, may not be
comparable to such other REITs.

                                       46
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EBITDAre


NAREIT developed EBITDAre as a relative non-GAAP financial measure of REITs,
independent of a company's capital structure, to provide a uniform basis to
measure the enterprise value of a company. Pursuant to the definition of
EBITDAre by the Board of Governors of NAREIT, we calculate EBITDAre as net
income (loss), computed in accordance with GAAP, excluding interest expense
(net), income tax (benefit) expense, depreciation and amortization, gains and
losses from disposition of real estate, impairment losses on real estate, costs
associated with loan refinancing or payoff and adjustments for unconsolidated
partnerships, joint ventures and other affiliates.

Management provides EBITDAre herein because it believes this information is
useful to investors as a supplemental performance measure as it can help
facilitate comparisons of operating performance between periods and with other
REITs. Our method of calculating EBITDAre may be different from methods used by
other REITs and, accordingly, may not be comparable to such other REITs.
EBITDAre is not a measure of performance under GAAP, does not represent cash
generated from operations as defined by GAAP and is not indicative of cash
available to fund all cash needs, including distributions. This measure should
not be considered an alternative to net income or any other GAAP measure as a
measurement of the results of our operations or cash flows or liquidity as
defined by GAAP.

Adjusted EBITDAre
Management uses Adjusted EBITDAre in its analysis of the performance of the
business and operations of the Company. Management believes Adjusted EBITDAre is
useful to investors because it excludes various items that management believes
are not indicative of operating performance, and that it is an informative
measure to use in computing various financial ratios to evaluate the Company. We
define Adjusted EBITDAre as EBITDAre (defined above) for the quarter excluding
gain on insurance recovery, severance expense, credit loss (benefit) expense,
transaction costs, impairment losses on operating lease right-of-use assets and
prepayment fees.

Our method of calculating Adjusted EBITDAre may be different from methods used
by other REITs and, accordingly, may not be comparable to such other REITs.
Adjusted EBITDAre is not a measure of performance under GAAP, does not represent
cash generated from operations as defined by GAAP and is not indicative of cash
available to fund all cash needs, including distributions. This measure should
not be considered as an alternative to net income or any other GAAP measure as a
measurement of the results of our operations or cash flows or liquidity as
defined by GAAP.

                                       47
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Reconciliations of debt, total assets and net income (loss) (all reported in
accordance with GAAP) to Net Debt, Gross Assets, Net Debt to Gross Assets,
EBITDAre and Adjusted EBITDAre (each of which is a non-GAAP financial measure),
as applicable, are included in the following tables (unaudited, in thousands):
                                                                             June 30,
                                                                    2021                   2020
Net Debt:
Debt                                                          $ 3,081,485             $ 3,854,088
Deferred financing costs, net                                      34,744                  35,907
Cash and cash equivalents                                        (509,836)             (1,006,981)
Net Debt                                                      $ 2,606,393             $ 2,883,014
Gross Assets:
Total Assets                                                  $ 6,142,212             $ 7,002,978
Accumulated depreciation                                        1,130,409               1,034,771
Cash and cash equivalents                                        (509,836)             (1,006,981)
Gross Assets                                                  $ 6,762,785             $ 7,030,768

Net Debt to Gross Assets                                               39     %                41  %

                                                                   Three Months Ended June 30,
                                                                    2021                   2020
EBITDAre and Adjusted EBITDAre:
Net income (loss)                                             $    18,552             $   (62,965)
Interest expense, net                                              38,312                  38,340
Income tax expense (benefit)                                          398                  (1,312)
Depreciation and amortization                                      40,538                  42,450
Gain on sale of real estate                                          (511)                    (22)

Impairment of real estate investments, net (1)                          -                  36,255

Costs associated with loan refinancing or payoff                        -                     820

Allocated share of joint venture depreciation                         459                     378
Allocated share of joint venture interest expense                     846                     736
Impairment charges on joint ventures                                    -                   3,247
EBITDAre                                                      $    98,594             $    57,927

Transaction costs                                                     662                     771

Credit loss (benefit) expense                                      (2,819)                  3,484

Impairment of operating lease right-of-use assets (1)                   -                  15,009

Adjusted EBITDAre                                             $    96,437             $    77,191

(1) Impairment charges recognized during both the three and six months ended June 30, 2020 totaled
$51.3 million, which was comprised of $36.3 million of impairments of real estate investments and
$15.0 million of impairments of operating lease right-of-use assets.


                                       48
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Total Investments
Total investments is a non-GAAP financial measure defined as the sum of the
carrying values of real estate investments (before accumulated depreciation),
land held for development, property under development, mortgage notes receivable
(including related accrued interest receivable), investment in joint ventures,
intangible assets, gross (before accumulated amortization and included in other
assets) and notes receivable and related accrued interest receivable, net
(included in other assets). Total investments is a useful measure for management
and investors as it illustrates across which asset categories the Company's
funds have been invested. Our method of calculating total investments may be
different from methods used by other REITs and, accordingly, may not be
comparable to such other REITs. A reconciliation of total investments to total
assets (computed in accordance with GAAP) is included in the following table
(unaudited, in thousands):
                                                                                         December 31,
                                                                June 30, 2021                2020
Total Investments:
Real estate investments, net of accumulated depreciation     $       4,834,652          $  4,851,302
Add back accumulated depreciation on real estate investments         1,130,409             1,062,087
Land held for development                                               23,225                23,225
Property under development                                              35,082                57,630
Mortgage notes and related accrued interest receivable                 366,064               365,628

Investment in joint ventures                                            27,476                28,208
Intangible assets, gross (1)                                            57,962                57,962
Notes receivable and related accrued interest receivable,
net (1)                                                                  7,344                 7,300
Total investments                                            $       6,482,214          $  6,453,342

Total investments                                            $       6,482,214          $  6,453,342
Operating lease right-of-use assets                                    179,354               163,766
Cash and cash equivalents                                              509,836             1,025,577
Restricted cash                                                          3,570                 2,433
Accounts receivable                                                     91,319               116,193

Less: accumulated depreciation on real estate investments (1,130,409)

           (1,062,087)
Less: accumulated amortization on intangible assets (1)                (18,420)              (16,330)
Prepaid expenses and other current assets (1)                           24,748                21,291
Total assets                                                 $       

6,142,212 $ 6,704,185



(1) Included in "Other assets" in the accompanying consolidated balance sheet. Other assets include the
following:

                                                                                         December 31,
                                                                June 30, 2021                2020
Intangible assets, gross                                     $          57,962          $     57,962
Less: accumulated amortization on intangible assets                    (18,420)              (16,330)

Notes receivable and related accrued interest receivable, net

                                                                      7,344                 7,300
Prepaid expenses and other current assets                               24,748                21,291
Total other assets                                           $          71,634          $     70,223

Impact of Recently Issued Accounting Standards



See Note 2 to the consolidated financial statements included in this Quarterly
Report on Form 10-Q for additional information on the impact of recently issued
accounting standards on our business.

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