EPR Properties (EPR) risk factors, FY2024 10-K

Other

1. 01Risks That May Impact Our Financial Condition or Performance
2. 02Global economic uncertainty, disruptions in the financial markets, inflation, and the challenging economic environment may impair our ability to refinance existing obligations or obtain new financing for acquisition or development of properties
3. 03The future outbreak of any highly infectious or contagious diseases, such as the COVID-19 pandemic, could materially and adversely impact or cause disruption to, our performance, financial condition, results of operations and cash flows
4. 04Inflation could adversely impact our customers and our results of operations
5. 05Covenants in our debt instruments could adversely affect our financial condition and our acquisitions and development activities
6. 06Adverse changes in our credit ratings could impair our ability to obtain additional debt and equity financing on favorable terms, if at all, and negatively impact the market price of our securities, including our common shares
7. 07Elevated interest rates and future increases will likely increase interest cost on new debt and could materially adversely impact our ability to refinance existing debt, sell assets and limit our investment activities
8. 08We depend on leasing space to tenants on economically favorable terms and collecting rent from our tenants, who may not be able to pay
9. 09We could be adversely affected by a borrower's bankruptcy or default
10. 10We may sell or divest different properties or assets after an evaluation of our portfolio of businesses. Such sales or divestitures could affect our costs, revenues, results of operations, financial condition and liquidity
11. 11We are exposed to the credit risk of our customers and counterparties and their failure to meet their financial obligations could adversely affect our business
12. 12From time to time, the base terms of some of our leases will expire and there is no assurance that such leases will be renewed at existing lease terms, at otherwise economically favorable terms or at all
13. 13Operating risks in the experiential real estate industry may affect the ability of our customers to perform under their leases or mortgages
14. 14Real estate is a competitive business
15. 15Three customers represent a significant portion of our total revenues
16. 16Properties we develop may not achieve sufficient operating results within expected timeframes and therefore the tenant or borrowers may not be able to pay their agreed upon rent or interest, and managed properties may not be able to operate profitably, which could adversely affect our financial results
17. 17We have entered into management agreements to operate certain of our properties and we could be adversely affected if such managers do not manage these properties successfully
18. 18Our indebtedness may affect our ability to operate our business and may have a material adverse effect on our financial condition and results of operations
19. 19There are risks inherent in having indebtedness and using such indebtedness to fund acquisitions
20. 20Most of our debt instruments contain balloon payments, which may adversely impact our financial performance and our ability to pay dividends
21. 21Without new financing, our growth is limited
22. 22Our real estate investments are concentrated in experiential real estate properties and a significant portion of those investments are in megaplex theatre properties, making us more vulnerable economically than if our investments were more diversified
23. 23If we fail to qualify as a REIT, we would be taxed as a corporation, which would substantially reduce funds available for payment of dividends to our shareholders
24. 24Even if we remain qualified for taxation as a REIT under the Internal Revenue Code, we may face other tax liabilities that reduce our funds available for payment of dividends to our shareholders or the repurchase of shares
25. 25Distribution requirements imposed by law limit our flexibility
26. 26If arrangements involving our TRSs fail to comply as intended with the REIT qualification and taxation rules, we may fail to qualify for taxation as a REIT under the Internal Revenue Code or be subject to significant penalty taxes
27. 27Our development financing arrangements expose us to funding and completion risks
28. 28We have a limited number of associates and loss of personnel could harm our operations and adversely affect the value of our shares
29. 29We are subject to risks associated with the employment of personnel by managers of certain of our properties
30. 30We may in the future have greater dependence upon the gaming industry and may be susceptible to the risks associated with it, which could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects
31. 31We and our tenants face extensive regulation from gaming and other regulatory authorities with respect to our gaming properties
32. 32Required regulatory approvals can delay or prohibit transfers of our gaming properties, which could result in periods in which we are unable to receive rent for such properties
33. 33We face risks associated with security breaches through cyber-attacks, cyber-intrusions or otherwise, as well as other significant disruptions of our information technology networks and related systems
34. 34Changes in accounting standards issued by the Financial Accounting Standards Board ("FASB") or other standard-setting bodies may adversely affect our business
35. 35Real estate income and the value of real estate investments fluctuate due to various factors
36. 36There are risks associated with owning and leasing real estate
37. 37Some potential losses are not covered by insurance
38. 38Joint ventures may limit flexibility with jointly owned investments
39. 39Our multi-tenant properties expose us to additional risks
40. 40We may from time to time be subject to litigation that could negatively impact our financial condition, cash flows, results of operations and the trading price of our shares
41. 41Failure to comply with the Americans with Disabilities Act and other laws could result in substantial costs
42. 42Potential liability for environmental contamination could result in substantial costs
43. 43We are exposed to the potential impacts of future climate change and climate-change related risks
44. 44Real estate investments are relatively illiquid
45. 45There are risks in owning assets outside the United States
46. 46There are risks in owning or financing properties for which the tenants', borrowers', or our operations may be impacted by weather conditions, climate change and natural disasters
47. 47We face risks associated with the development, redevelopment and expansion of properties and the acquisition of other real estate related companies
48. 48We cannot assure you we will continue paying cash dividends at current rates
49. 49Market interest rates may have an effect on the value of our shares
50. 50Inflation may have an effect on the value of our shares
51. 51Broad market fluctuations could negatively impact the market price of our shares
52. 52Market prices for our shares may be affected by perceptions about the financial health or share value of our tenants, borrowers and managers or the performance of REIT stocks generally
53. 53Limits on changes in control may discourage takeover attempts, which may be beneficial to our shareholders
54. 54We may change our policies without obtaining the approval of our shareholders
55. 55Dilution could affect the value of our shares
56. 56Future offerings of debt or equity securities, which may rank senior to our common shares, may adversely affect the market price of our common shares
57. 57Changes in foreign currency exchange rates may have an impact on the value of our shares
58. 58We may be subject to adverse legislative or regulatory tax changes that could reduce the market price of our shares