1045450--2/24/2009--ENTERTAINMENT_PROPERTIES

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Risks That May Impact Our Financial Condition or Performance There can be no assurance as to the impact of the U.S. government s economic stimulus plan on the banking system, financial markets, real estate markets and economy as a whole. Current levels of market volatility are unprecedented. The recent downturn in the credit markets has increased the cost of borrowing and has made financing difficult to obtain, each of which may have a material adverse effect on our results of operations and business. The failure of a bank to fund a request (or any portion of such request) by us to borrow money under one of our existing credit facilities could reduce our ability to make additional investments and pay distributions. The failure of any bank in which we deposit our funds could reduce the amount of cash we have available to pay distributions and make additional investments. We depend on leasing space to tenants on economically favorable terms and collecting rent from our tenants, who may not be able to pay We are exposed to the credit risk of our customers and counterparties and their failure to meet their financial obligations could adversely affect our business We could be adversely affected by a mortgagor s bankruptcy or default We have made a significant loan commitment to a developer; however, there is no assurance that the project to which the commitment relates will be completed as planned Our theatre tenants may be adversely affected by the obsolescence of any older multiplex theatres they own or by any overbuilding of megaplex theatres in their markets Operating risks in the entertainment industry may affect the ability of our tenants to perform under their leases Real estate is a competitive business A single tenant represents a substantial portion of our lease revenues A single tenant leases or is the mortgagor of all our investments related to metropolitan ski areas and a single tenant leases all of our charter schools There are risks inherent in having indebtedness and the use of such indebtedness to fund acquisitions Most of our debt instruments contain balloon payments which may adversely impact our financial performance and our ability to pay distributions We have grown rapidly through acquisitions and other investments. We may not be able to maintain this rapid growth and our failure to do so could adversely affect our share price We must obtain new financing in order to grow Covenants in our debt instruments could adversely affect our financial condition and our acquisitions and development activities We may acquire or develop properties or acquire other real estate related companies and this may create risks Our real estate investments are concentrated in entertainment, entertainment-related and recreational 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 If 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 We depend on dividends and distributions from our direct and indirect subsidiaries. The creditors of these subsidiaries are entitled to amounts payable to them by the subsidiaries before the subsidiaries may pay any dividends or distributions to us Our development financing arrangements expose us to funding and purchase risks We have a limited number of employees and loss of personnel could harm our operations and adversely affect the value of our common shares Risks That Apply to our Real Estate Business Real estate income and the value of real estate investments fluctuate due to various factors There are risks associated with owning and leasing real estate Some potential losses are not covered by insurance Joint ventures may limit flexibility with jointly owned investments Our multi-tenant properties expose us to additional risks Failure to comply with the Americans with Disabilities Act and other laws could result in substantial costs Potential liability for environmental contamination could result in substantial costs Real estate investments are relatively non-liquid There are risks in owning assets outside the United States There are risks in owning or financing properties for which the tenant s or mortgagor s operations may be impacted by weather conditions Wineries and vineyards are subject to a number of risks associated with the agricultural industry Risks That May Affect the Market Price of our Shares We cannot assure you we will continue paying cash dividends at current rates Market interest rates may have an effect on the value of our shares Market prices for our shares may be affected by perceptions about the financial health or share value of our tenants and mortgagors or the performance of REIT stocks generally Limits on changes in control may discourage takeover attempts which may be beneficial to our shareholders

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1045450--2/24/2009--ENTERTAINMENT_PROPERTIES_TRUST