A 10K Peek At EPR’s 2009 Vineyard & Winery Deals

Despite a challenging 2009, Entertainment Properties Trust (NYSE: EPR) — a major player in wine-related sales/leasebacks — declared exactly the same Q1 dividend this year as it did in 2009: $0.65 per common share for shareholders of record on March 31. Preferred stock dividends also equaled 2009’s. Details here.

EPR maintained its shareholder dividends despite one of the roughest years in its history. According to the 10K for the year ended Dec. 31, 2009,the company suffered a net loss available to shareholders of $22.2 million on revenues of $270.8 million. That contrasts with 2008 when EPR produced net income available to shareholders of $101.7 million on revenues of $286.1 million.

However, EPR was back in the black by 4Q 2009 with net income available to common shareholders of $6.7 million on revenues of $69.3 million. More details here.

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WINE PROPERTIES REPOSSESSED, TROUBLES MAY EXTEND INTO 2010

According to EPR’s 10K, “Certain of our customers, particularly our vineyard and winery tenants … have also experienced the effects of the economic downturn, which has generally resulted in a reduction in sales and profitability. As a result, we have seen more credit issues with these tenants than in the past, and this trend may continue in 2010. With respect to our vineyard and winery investments, we have reclaimed possession of four properties from two tenants for failure to pay rent.”

EPR’S WINE SALE/LEASEBACK PORTFOLIO: $218 MILLION

While EPR’s $218.2 million in winery and vineyard investments represent only 8 percent of its $2.8 billion portfolio, it still remains as one of the largest players in wine-related sale/leasebacks.

What follows are wine-related extracts from EPR’s 2009 Annual Report (10K) filed with the Securities and Exchange Commission. Also available to premium subscribers are unredacted versions of two wine-only real estate and financial charts (above) and a spreadsheet which Wine Industry Insight has extracted from EPR’s 10K data, then reformatted and reorganized for clarity.

 

Also In This Article:

The full text of the following sections is available to VIP Premium Subscribers.

• NEW $8.5 MILLION INVESTMENT IN ASCENTIA

 

• $6.4 MILLION IMPAIRMENT CHARGE ON REPOSSESSED WINE ASSETS

 

• DEFAULTS COST $2.5 MILLION

 

• THE GLOBAL WINE PARTNERS PARTNERSHIP

 

• VINREIT LLC TERM LOAN PROVISIONS
  

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