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EPR Properties CEO David Brain discusses his investment in entertainment and recreation properties.
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Well it's become the second derivative play on movie is David brain EP our property CEO and president joins me now for a Fox Business exclusive so.
-- what you're doing basically is making a big play on movie theaters and complex those.
Big chunk of your fund that is -- been working out for you.
It's been working very well we've been making this play and movie theaters for fifteen years now since the dawn of the megaplex theater really emerge from the multiplex days of the of the ninety's and -- through the last decade plus and it's.
It's been very well you know box office at a record this year but that's the eight years since the turn of the millennium so it's a regular occurrences is a very healthy industry and it's been it's been a great -- for the company and our shareholders.
And we are -- kind of those -- class movie theaters that are coming to -- -- you can.
Order alcoholic beverages in order food and all that good stuff up but you're so what I think -- -- -- I think is very into your education -- actually investing in charter schools.
With the rise in popularity -- charter schools new avenue.
For you is this a long term -- -- is -- that test the waters type of move -- Well or really beyond the test the waters more now into the long term that we really like -- category.
It's very interstate because a lot of people don't connect maybe a movie theater with the public school area.
But this is really -- emerging new class of real estate that really did not have -- go to.
Financing partner for the industry in the same way the large format theater which was really not.
Comfortable with it may switch out of the retail -- people that needed a special investor we took the place there are so to.
For charter schools and so it has a lot of connection that very same essence of being a very strong reliable durable category.
Yet no real go to player so we stepped in to start to feel this and we've been added now for well over five years.
And several hundred million dollars now we're close to and we really like to category expect to be -- major emphasis for the company.
Well you don't put forward a one point oh that you try something that have not -- -- know that you tried to get the wineries and then that was kind of experiment -- -- -- the you have to pull back got up.
Hence the the question about about charter schools.
About -- in recreational parks and I think this can be an interest in play.
But are you worried about the consumer -- -- of -- pullback at the economy doesn't get better unemployment stays high are -- worried that the the water -- that you're invested -- -- key parts -- -- -- they -- that is being -- problem -- the share.
Well you know you always worry about the consumer I guess in the -- economy but the really great news about our portfolio is a generally is very very recession resistant for example.
With a tough economy we've been in you know box office setting a record -- set a record year in 09 in the toughest of economies.
So -- are -- our water parks -- you just mentioned there -- -- it was a record year last year for them.
And all of the price points particularly in -- is important our ski properties.
Aren't average revenue per capita -- you know per day of about sixty dollars as opposed to about double that for resorts -- so we're really in the more local ski hill holes.
They're accessible in your total span and -- pass for -- renal and your food.
It's an average -- sixty dollars which is a very approachable.
Price point for the consumer and so.
With our portfolio really targeted -- yen -- very accessible and affordable levels.
We don't have the volatility that other people do maybe in the very high luxury end of things.
OK and that your point is well taken on that I want to talk about the performance of BP.
6% but.
Yes and he gave more than 12%.
Up if you are deep recession proof and and these some of these.
Areas whether it is movie theaters or whether it's ski parks golf parks what ever why not the performance over the last year free PR what happened here.
Well you're right we had about 6% return on pricing we had about a six or 7% return on -- dividend so we had about 1213 but we war beat.
On price by these you know some of the larger indexes.
And one of the reasons really is is because during the summer of twelve we did have a charter school operator charter public school operator.
Who got crosswise with a state supervising authority in one of the major states they do business.
And end up losing some charters and people and our -- -- our company were worried for a moment.
That this was something of epidemic that would spread that it was not it was very.
Situation all and I think oh we our stock price suffered that in the mid part of the year but this recovered nicely.
And we never missed a month -- -- on a property during that whole proposition because with that operator like we do throughout our portfolio we cross to fall through.
All of our relationships -- -- operator so.
It -- we we motor through that but there was some concern and that's really what held us back and twelve and I think -- the opportunity for thirteen.
Well David brain is certainly yes sub sector -- that that does I think very interesting in very new to many of our viewers so so thank you for explaining it and double watch the post performance obviously throughout the year thank you David.
Thank you very much for -- -- I would now.
