Good afternoon, ladies and gentlemen. And welcome to the Q2, 2017 EPR Properties Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to the conference call over to your host Mr. Brian Moriarty, Vice President of Corporate Communications. Please go ahead, sir.

Thanks Amenda. And thanks to everyone for joining us today for our second quarter 2017 earnings call. As always, I’ll start the call by informing you that this call may include forward-looking statements as defined by the Private Securities Litigation Act of 1995, identified by such words as will be, intend, continue, believe, may, expect, hope, anticipate, or other comparable terms. The company's actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussions of these factors that could cause results to differ materially from these forward-looking statements are contained in the Company's SEC filings, including the company's report on Form 10-K and 10-Q. Now, I will turn the call over to the company President and CEO, Greg Silvers.

Thank you, Brian, and good afternoon, everyone. Welcome to our second quarter 2017 earnings call. Before we get started I'll remind everyone that slides are available to follow along via our website at www.eprkc.com. With me on the call today is the company's CFO, Mark Peterson.

Good afternoon.

And CIO, Jerry Earnest.

Hello.

As usual, I'll start with our quarterly headlines and then pass the call to Jerry to discuss the business in greater detail. Today's first headline strong revenue and earnings growth. We are pleased to announce another quarter of record setting results. As compared to the same quarter previous year, our top line revenue grew by 25% and adjusted FFO per share grew by 10%. These results reflect the outcome of our non commodity focus and broad demand in our primary investment segments. Our second headline. Record investment spending anchored by CNL Lifestyle Properties transaction. As we discussed on our last call, our second quarter investment spending was anchored by our $731 million CNL Lifestyle Properties transaction. The integration process associated with these properties has proceeded smoothly. And we are excited to significantly expand our recreation portfolio with such high quality properties and tenants. We also made significant investments across each of our primary segments totaling over $200 million, and we maintain a robust pipeline of opportunities. Jerry will have more detail on these investments. Third headline. Increasing investments spending guidance and reaffirming earnings guidance. We are excited to be able to raise our investment spending guidance as we continue to demonstrate the momentum of our focused business model and the growing demand in our segments. Jerry will elaborate on this in his comments. With regard to our earnings guidance, as we've updated you on our previous earnings call, we have an early childhood education tenant that is challenged by rapid expansion. We've discussed that we are in negotiations to restructure certain leases to provide some degree of relief, and in fact we've entered into a temporary agreement with the tenant to receive payments while the terms of permanent restructuring are finalized with all interested parties. These payments are consistent with…

Thank you, Greg. Our investment spending during the second quarter of 2017 was very strong in part due to the closing of the CNL Lifestyle Properties transaction, but also as a result of continued strong deal flow across all three investment segments. The CNL Lifestyle Properties transaction investment spending totaled $731 million with the balance of the investment spending consisting of $205 million or total of $936 million spending for the second quarter. And bringing year-to-date spending to $1.2 billion. The strong spending pays reflect the depth of business demand by our tenants and the strong execution across all our investment segments. As such I am pleased to announce that we anticipate this momentum continuing and we are raising the midpoint of our 2017 investment guidance by $150 million to a range of $1.45 to $1.5 billion. As Greg noted in his headlines, box office revenue is stable. However, our forecast for the year is not quarter-to-quarter estimate rather where we believe it will end the year. This year is heavily weighted for the holiday season with the latest installment of the Marvel franchise Thor, the DC offering Justice League and a next installment of the Star Wars franchise. We still believe the 2017 will be essentially flat to 2016, a record breaking year. Also please note the slight variation of performance have little impact on our rent coverage. Overall, the business is healthy and continues to demonstrate that the out-of- home entertainment experience offered by exhibition tenant is valued by consumers. In its headlines Greg mentioned the concerns regarding premium video on demand. I think it is important to note that our exhibition partners are investing millions of dollars to reinvent and enhance the out-of-home movie experience for consumers through conversion to the high amenity theater format. The overwhelming…

Thank you Jerry. I'd like to remind everyone on the call that our quarterly investor supplemental can be downloaded from our website. We hope you like the updated format of this report. Now turning to the first slide, net income for the second quarter was $74.6 million or $1.02 per share compared to $49.2 million or $0.77 per share in the prior year. FFO was $85 million compared to $72.2 million in the prior year. Lastly, FFOs adjusted for the quarter increased to $94.9 million, or $74.7 million in the prior year and was $1.29 per share for the quarter versus $1.17 per share in the prior year, an increase of 10%. Before I walk through the key variances, I want to discuss certain of the adjustments to FFO to come to FFO as adjusted. First, we prepaid in full our mortgage note payable during the quarter for $87 million and recognize the gain on early extinguishment of debt of $1 million that has been excluded of FFO adjusted. Second, we recognized a gain on insurance recovery of $606,000 related to a theater has suffered flood damage last fall which has also been excluded from FFO adjusted. Third, pursuant to a tenant purchase options, we completed the sale of two public charter schools during the quarter for net proceeds of $22.2 million and recognized a termination fee included in gain on sale of $3.9 million which has been added to get to FFO as adjusted. Lastly, as Jerry discussed, we continue to take steps to further reduce our Imagine holdings. To help facilitate future property sales, during the quarter we entered in negotiations with Imagine to restructure the leases on six properties in exchange for reducing the future rental payments and/or the remaining lease terms. Imagine agreed that upon the…

Thank you, Mark. As you can tell by our results, our strategy of focused investments continues to be successful. And not withstanding the hand ringing about threats to box office, our business remains very stable. We continue to be the market leader in experiential real estate. We believe that investors are becoming increasingly aware of the value of these experiential assets and our position gives us the unique opportunity to take advantage of this sociable shift. With that why don't I open it up for questions? Amenda?

[Operator Instructions] Your first question comes from the line of Craig Mailman from KeyBanc. Your line is open.

Hey, guys, how are you? So Greg I hear you on the movie theater side and that was helpful that you gave us kind of what you think show into most courageable comment, just curious as it related AMC with a news earlier this weekend, the impact they had on them kind of if you guy see at all any concerns about coverage levels.

Craig, we don't on our properties. I know they got a significant amount of integration that they are trying to do with their recent acquisitions but and our properties we have not -- our properties are trending kind of with the kind of box office that was up, I mean as I said, there were headlines that reflected that box office was down and I know there was a discussion of quarter-over-quarter box office being down comparing to 2016, but for the year we were up. And so we still feel really good about our properties and their performance has been kind of consistent.

Their parents coming to the news too which is some of the regulations in China. Have you guys had any kind of monetize plan for some of their theater fall through or is there any impact from that kind of pressure on the parent company.

We haven't seen that yet. I mean clearly that something that we monitor and even in their announcement their CapEx spending didn't come down significantly. So it appears that they are still very committed to the continuation of the monetization program. And so for our direct involvement with them, we have not seen any impact to date.

That's helpful. And then maybe just turning to Imagine real quick. Just I guess on the - I get that people want longer lease terms and you guys are restructuring but why couldn't you guys have just put new 20 years leases on it and market it that way. Was there something that the specific buyers want to sign their own lease and have their own kind of terms in there?

Yes. I mean I think they want to control, again kind of stepping into their own kind of new lease and so that's kind of the feedback that we've had. The good thing is we are in active negotiations on several of these properties. So this is direct feedback in support of those transactions.

And if you guys were to sell of the ones that you are marketing kind of what was the exposure that left Imagine?

Mark do you --

We've got about $153 million on our books between the note we have and the properties on our book whether be in the direct financing lease or otherwise, so $153 million. We expect sales -- just call it 50 so it take it down 100 or about lower the exposure back.

Your next question comes from the line of Nick Joseph from Citi. Your line is open, sir.

Thanks. Just maybe spend on the Imagine sales, what's the expected timing of this deal now that you are able to renegotiate the leases.

Again, as always sales kind of move -- we've said that we plan $50 million by the end of the year for this so we are going to stick with that. Again, some of these are in more active negotiations than others but we still feel comfortable Nick with that kind of guidance that we provided.

Would you expect to sell them as a portfolio or as individual properties?

I don't think that -- we are not going to comment on that right now just because if we are in active negotiation with several people. Some maybe bigger transactions and others and I don't want to penalize discussions on that. So again we talk about these six as the opportunities that we are marketing and we think we can move those.

Thanks, appreciate that. And then in terms of AMC obviously there pre announcement earlier this week, one thing that they talked about were attempted expense reduction going forward at Imagine rent, is a large component of that. So how do you think or you had discussions with them in terms of rent reductions just given their lower EBITDA expectation for the year.

Nick, we had no discussion on that and given our coverage we wouldn't anticipate having those. In fact, they called out lot of specific expense line items and rent wasn't one of them.

And then finally just can you sense any change in their appetite for monetize theaters or the ability to invest in these theaters going forward?

Yes, Nick, what I said was that I don't know if you follow their 8-K that came out the following evening. They really did not substantially move down their kind of planned CapEx spending. So at least at this point it doesn't look like they are in anyway materially changing their outlook on monetization. I am sure as they talk on their earnings call next well there will be -- tomorrow I think as they moved -- they will give more color on that but from what we've seen we continue to move forward on the projects that we are working and from their at least release documents it still looks they are like their commitment still is there.

Your next question comes from the line of Rob Stevenson from Janney. Your line is open, sir.

Good evening, guys. Question on the theaters from a different standpoint. Of your 144 megaplex theaters which you guys on what percentage have already been converted into one of the new formats? And then how many you currently are working on with an operator to convert?

We probably have about 25% Rob of ours that have been converted. We probably have another 13 to 15 that are actively being converted now. As we talked about before Rob, it really is a situation of seat turn, we actually have theaters that are so productive at this point, and it doesn't make sense for them to convert. If you have high enough seat turns in an existing theater, it doesn't necessarily work to convert. So again I would interpret that the fact we are kind of approaching kind of 30% that's all that we are going to do. What we said I think on our last call is that we would be probably half to three quarters of ours over the next 18 to 36 months.

Okay. And then how many Topgolf are still under construction or yet to be constructed on your agreement?

We have four that we have under construction right now. We probably have an additional two beyond that that are in planning phases. So again that would take us to about 33, we always thought this number would be somewhere in the low to mid 30s and it looks it's going to be under our existing arrangement.

Okay. And then one last one for Mark what is the known nonrecurring FFO items in the second half of the year at this point? In other words, what's the known gap between NAREIT and as adjusted FFO in the back half of the year thus far?

I don't know if I have that number on my finger tips but obviously we don't plan any impairment charges so that won't be a case. Those transactions cost the typical line items I don't have -- and we don't give guidance at that level, each of those line items but it's more the typical sort of adjustments we've had in previous quarters. With the exception of the fact FFO is adjusted we will have termination fees will be larger in the back of the year weighted, if you look at our guidance you'll see a larger termination fees, so be a larger add back from FFO to get the FFO as adjusted for those fees.

I am showing no further questions at this time. I'd now like to turn the call back over to Mr. Greg Silvers, CEO and President.

Again, we greatly appreciate everyone's time and attention today. And we thank you and look forward to talking to you on our next earnings call. Thank you.

Ladies and gentlemen, this concludes today's conference. Thank you for your participation and have a wonderful day. You may now disconnect.