Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or
the “Company”) today announced record results for the fourth
quarter and year-ended December 31, 2023.
Financial Highlights
|
|
Three
Months Ended December 31, |
Year Ended December 31, |
|
(in millions, except per share data) |
|
2023 Actual |
|
2022 Actual |
2023 Actual |
|
2022 Actual |
|
Total Revenue |
|
$ |
369.0 |
|
$ |
336.4 |
$ |
1,440.4 |
|
$ |
1,311.7 |
|
Income From
Operations |
|
$ |
295.3 |
|
$ |
275.5 |
$ |
1,068.7 |
|
$ |
1,029.9 |
|
Net
income |
|
$ |
217.3 |
|
$ |
199.6 |
$ |
755.4 |
|
$ |
703.3 |
|
FFO
(1) (4) |
|
$ |
282.2 |
|
$ |
258.8 |
$ |
1,015.8 |
|
$ |
887.3 |
|
AFFO
(2) (4) |
|
$ |
256.6 |
|
$ |
239.1 |
$ |
1,006.8 |
|
$ |
924.4 |
|
Adjusted
EBITDA (3) (4) |
|
$ |
331.4 |
|
$ |
312.0 |
$ |
1,307.1 |
|
$ |
1,221.7 |
|
Net income, per
diluted common share and OP units
(4) |
|
$ |
0.78 |
|
$ |
0.75 |
$ |
2.77 |
|
$ |
2.70 |
|
FFO, per diluted
common share and OP units (4) |
|
$ |
1.02 |
|
$ |
0.97 |
$ |
3.73 |
|
$ |
3.40 |
|
AFFO, per diluted
common share and OP units (4) |
|
$ |
0.93 |
|
$ |
0.89 |
$ |
3.69 |
|
$ |
3.55 |
|
________________________(1) Funds from operations ("FFO")
is net income, excluding (gains) or losses from dispositions of
property, net of tax and real estate depreciation as defined by
NAREIT.
(2) Adjusted Funds from Operations ("AFFO")
is FFO, excluding, as applicable to the particular period, stock
based compensation expense; the amortization of debt issuance
costs, bond premiums and original issuance discounts; other
depreciation; amortization of land rights; accretion on investment
in leases, financing receivables; non-cash adjustments to financing
lease liabilities; property transfer tax recoveries and impairment
charges; straight-line rent adjustments; losses on debt
extinguishment; and provision (benefit) for credit losses, net,
reduced by capital maintenance expenditures.
(3) Adjusted EBITDA is net income,
excluding, as applicable to the particular period, interest, net;
income tax expense; real estate depreciation; other depreciation;
(gains) or losses from dispositions of property, net of tax; stock
based compensation expense; straight-line rent adjustments;
amortization of land rights; accretion on investment in leases,
financing receivables; non-cash adjustments to financing lease
liabilities; property transfer tax recoveries and impairment
charges; losses on debt extinguishment; and provision (benefit) for
credit losses, net.
(4) Metrics are presented assuming full
conversion of limited partnership units to common shares and
therefore before the income statement impact of non-controlling
interests.
Peter Carlino, Chairman and Chief Executive
Officer of GLPI, commented, “We generated record fourth quarter and
full year 2023 results while again increasing our cash dividend as
we delivered growth across all key financial metrics for both the
quarter and full year. On an operating basis, fourth quarter total
revenue rose 9.7% year over year to $369.0 million while AFFO grew
7.3% to $256.6 million. Our record fourth quarter and full year
financial results reflect GLPI’s stable base of leading regional
gaming operator tenants and recent acquisitions, which we expect
will continue to benefit comparisons in 2024 and
beyond.
“Despite macro headwinds, our deep, long-term
knowledge of the gaming sector enabled the ongoing expansion and
diversification of GLPI’s tenant base, geographic footprint and
rental streams in 2023. In 2023 we completed over $1.1 billion of
transactions, including over $760.0 million of traditional real
estate acquisitions and $337.5 million of loan funding
commitments. In addition, the benefit of transactions
completed in 2022 and our early 2023 acquisition of two Bally’s
casinos in Rhode Island and Mississippi for $635 million
contributed to our record 2023 operating results. Our
third quarter 2023 $100 million ground lease investment with Hard
Rock in Illinois includes a $150 million development funding
commitment and reflects our ability to partner with tenants to
serve as a growth financing source, similar to what we did with
PENN Entertainment when we established a new master lease for seven
properties, which was effective in early 2023, and established a
funding option to allow PENN to pursue four attractive growth
opportunities in Illinois, Ohio and Nevada.
“Our active support of our tenants through
innovative transaction structures has proven to be mutually
beneficial and ongoing conversations with operators over the past
year suggest our 2024 pipeline of deals will remain healthy. With
our focused operating strategy, GLPI has expanded its tenant roster
from just one tenant ten years ago to seven premier tenants across
61 properties in 18 states as of December 31, 2023, up from 57
properties in 17 states at the end of 2022. We kicked off 2024 with
the addition of Tioga Downs to our portfolio which brought a new
relationship with American Racing to our tenant roster. GLPI
entered the year with historically low leverage and significant
capital availability to further execute on our strategy of aligning
with and supporting leading regional gaming operator tenants by
developing innovative transaction structures. This
approach has further elevated GLPI’s role as a leading financing
partner for growth funding for casino operators and we are
optimistic about a range of growth opportunities that we will
pursue in 2024.
“Looking forward, we believe GLPI is well
positioned to deliver long-term growth based on our gaming operator
relationships, our rights and options to participate in select
tenants’ future growth and expansion initiatives, an environment
conducive to supporting a healthy pipeline of new deals, and our
ability to structure and fund innovative transactions at
competitive rates. Ultimately GLPI's strong relationships and
experience are significant differentiators that drive our access to
and ability to complete transactions. Our tenants' strength,
combined with GLPI’s balance sheet and liquidity, position the
Company to consistently grow its cash flows, raise dividends and
build value for shareholders in 2024 and beyond.”
Recent Developments
- On February 6, 2024, the Company
announced it acquired the real estate assets of Tioga Downs Casino
Resort ("Tioga Downs") in Nichols, NY from American Racing &
Entertainment, LLC ("American Racing") for $175.0 million.
Simultaneous with the acquisition, GLPI and American Racing entered
into a triple-net master lease agreement for an initial 30-year
term. The initial annual rent is $14.5 million and is subject to
annual fixed escalations of 1.75% beginning with the first
anniversary which increases to 2% beginning in year fifteen of the
lease through the remainder of its term. The initial annualized
rent coverage ratio for the lease is expected to be over 2.3x.Tioga
Downs features a 32,600 square foot gaming floor with 895 slots and
29 table games, a 2,500 square foot FanDuel sports book, a 160 room
hotel, 5/8-mile harness horse track, 7 food and beverage locations,
and a separate 18-hole championship golf course. The property
underwent a $130 million expansion beginning in 2016 after it was
awarded a Class III casino license by the State of New York.
- On November 22, 2023, the Company
issued $400 million of 6.750% Senior Notes due 2033 (the "Notes")
that were priced at 98.196% of par value and that will mature on
December 1, 2033. The Notes are senior unsecured obligations of the
Issuers, guaranteed by GLPI. The net proceeds from the offering are
intended to be utilized for working capital and general corporate
purposes, which may include the acquisition, development and
improvement of properties, the repayment of indebtedness, capital
expenditures and other general business purposes.
- In the fourth quarter of 2023, the
Company sold 3.88 million shares through its ATM (At-The-Market)
program which raised net proceeds of $179.7 million. Subsequent to
year-end, the Company sold an additional 0.18 million shares
through its ATM program which raised additional net proceeds of
$9.0 million.
- On September 6, 2023, the Company
acquired the land and certain improvements at Casino Queen
Marquette for $32.72 million. The Casino Queen Master Lease was
amended and restated and annual rent was increased by $2.7 million
for this acquisition. Additionally, the Company anticipates funding
up to $12.5 million of certain construction costs of a landside
development project at Casino Queen Marquette.
- On August 29, 2023, the Company
acquired the land associated with the Hard Rock Casino development
project in Rockford, IL from an affiliate of 815 Entertainment, LLC
("815 Entertainment") for $100 million. Simultaneously with the
land acquisition, GLPI entered into a ground lease with 815
Entertainment for a 99-year term. The initial annual rent for the
ground lease is $8 million, subject to fixed 2% annual escalation
beginning with the lease's first anniversary and for the entirety
of its term. (the "Rockford Lease").
- In addition to the Rockford Lease,
GLPI also committed to provide up to $150 million of development
funding (of which $40 million was funded as of December 31, 2023)
via a senior secured delayed draw term loan (the "Rockford Loan").
Any borrowings under the Rockford Loan will be subject to an
interest rate of 10%. The Rockford Loan has a maximum outstanding
period of up to six years (five-year initial term with a one-year
extension). The Rockford Loan is prepayable without penalty
following the opening of the Hard Rock Casino in Rockford, IL,
which is expected in September 2024. The Rockford Loan advances are
subject to typical construction lending terms and conditions. The
Company also received a right of first refusal on the building
improvements of the Hard Rock Casino in Rockford, IL if there is a
future decision to sell them once completed.
- On August 24, 2023, the Company's
landside development project at The Queen Baton Rouge opened to the
public. Rent under the Casino Queen Master Lease was adjusted to
reflect a yield of 8.25% on GLPI's project costs of $77
million.
- On May 13, 2023, the Company,
Tropicana Las Vegas, Inc., a Nevada corporation and wholly owned
subsidiary of Bally’s Corporation (NYSE: BALY) (“Bally’s”), and
Athletics Holdings LLC (“Athletics”), which owns the Major League
Baseball (“MLB”) team currently known as the Oakland Athletics (the
“Team”), entered into a binding letter of intent (the "LOI")
setting forth the terms for developing a stadium that would serve
as the home venue for the Team (the “Stadium”). The Stadium is
expected to complement the potential resort redevelopment
envisioned at our 35-acre property in Clark County, Nevada (the
“Tropicana Site”), owned indirectly by GLPI through its indirect
subsidiary Tropicana Land LLC, a Nevada limited liability company,
and leased by GLPI to Bally’s pursuant to that certain Ground Lease
dated as of September 26, 2022 (the “Original Ground Lease”). The
LOI allows for Athletics to be granted fee ownership by GLPI of
approximately 9 acres of the Tropicana Site for construction of the
Stadium. The LOI provides that following the Stadium site transfer,
there will be no reduction in the rent obligations of Bally’s on
the remaining portion of the Tropicana Site or other modifications
to the Original Ground Lease, and that to the extent GLPI has any
consent or approval rights under the Original Ground Lease, such
rights shall remain enforceable unless expressly modified in
writing in the definitive documents. Bally's and GLPI are agreeing
to provide the Stadium site transfer in exchange for the benefits
that the Stadium is expected to bring to the Tropicana Site. The
LOI provides that the Athletics shall pay all the costs associated
with the design, development, and construction of the Stadium and
Bally’s shall pay all costs for the redevelopment of the casino and
hotel resort amenities. GLPI is expected to commit to up to $175
million of funding for hard construction costs, such as demolition
and site preparation and build out of minimum public spaces needed
for utilization of the Stadium. The LOI provides that during the
development period, rent will be due at 8.5% of what has been
funded, provided that the first $15.0 million advanced for the
costs of construction of the food, beverage and retail entrance
plaza shall not be subject to increased rent. GLPI may have the
opportunity to fund additional amounts of the construction under
certain circumstances. In addition, the LOI provides that the
transaction will be subject to customary approvals and other
conditions, including, without limitation, approval of a master
plan for the site and certain approvals by the Nevada Gaming
Control Board and Nevada Gaming Commission.
- On January 13, 2023, the Company
called for redemption of all of its $500 million, 5.375% Senior
Notes (the "Notes") due in 2023. GLPI redeemed all of the Notes on
February 12, 2023 (the "Redemption Date") for $507.5 million which
represented 100% of the principal amount of the Notes plus accrued
interest through the Redemption Date. GLPI funded the redemption of
the Notes primarily from cash on hand as well as through the
settlement of the Company's forward sale agreement which resulted
in net proceeds of $64.6 million through the issuance of 1,284,556
shares.
- On January 3, 2023, the Company
completed its previously announced acquisition from Bally's of the
real property assets of Bally's Tiverton and Hard Rock Hotel &
Casino Biloxi for total consideration of $635 million, inclusive of
approximately $15 million in the form of OP units. These properties
were added to the Company's existing Master Lease with Bally's. The
initial rent for the lease was increased by $48.5 million on an
annualized basis, subject to contractual escalations based on the
Consumer Price Index ("CPI"), with a 1% floor and a 2% ceiling,
subject to CPI meeting a 0.5% threshold.In connection with the
closing, a $200 million deposit funded by GLPI in September 2022
was returned to the Company along with a $9.0 million transaction
fee that was accounted for as a reduction of the purchase price of
the assets acquired with no earnings impact. Concurrent with the
closing, GLPI borrowed $600 million under its previously structured
delayed draw term loan.GLPI continues to have the option, subject
to receipt by Bally's of required consents to acquire the real
property assets of Bally's Twin River Lincoln Casino Resort in
Lincoln, RI prior to December 31, 2026, for a purchase price of
$771 million which, if consummated, would result in additional
initial rent of $58.8 million.
- Effective January 1, 2023, the
Company completed the creation of a new master lease (the "PENN
2023 Master Lease") with PENN Entertainment, Inc. (NASDAQ: PENN)
("PENN") for seven of PENN's current properties. The Company and
PENN also agreed to a funding mechanism to support PENN's
relocation and development opportunities at several properties
included in the PENN 2023 Master Lease.The original PENN Master
Lease was amended (the "Amended PENN Master Lease") to remove
PENN's properties in Aurora and Joliet, Illinois, Columbus and
Toledo, Ohio, and Henderson, Nevada. Those properties were added to
the PENN 2023 Master Lease. In addition, the existing leases for
the Hollywood Casino at The Meadows in Pennsylvania and Hollywood
Casino Perryville in Maryland were terminated and these properties
were transferred to the PENN 2023 Master Lease. GLPI agreed to fund
up to $225 million for the relocation of PENN's riverboat casino in
Aurora at a 7.75% cap rate. GLPI also agreed to fund, at PENN's
election, up to an additional $350 million for the relocation of
Hollywood Casino Joliet as well as the construction of a hotel at
Hollywood Casino Columbus and a second hotel tower at the M Resort
Spa Casino in Henderson, Nevada, at the then current market
rates.The terms of the PENN 2023 Master Lease and the Amended PENN
Master Lease are substantially similar to the original PENN Master
Lease with the following key differences;
- The PENN 2023 Master Lease is
cross-defaulted and co-terminus with the Amended PENN Master
Lease;
- The annual rent for the PENN 2023
Master Lease is $232.2 million in base rent which is fixed with
annual escalation of 1.50%, with the first escalation occurring for
the lease year beginning on November 1, 2023; and,
- The annual rent for the Amended
PENN Master Lease is $284.1 million, consisting of $208.2 million
of building base rent, $43.0 million of land base rent, and $32.9
million of percentage rent.
Dividends
On November 22, 2023, the Company's Board of
Directors declared a fourth quarter dividend of $0.73 per share on
the Company's common stock. The dividend was paid on December 22,
2023 to shareholders of record on December 8, 2023.
On February 26, 2024, the Company's Board of
Directors declared a first quarter dividend of $0.76 per share on
the Company's common stock that will be payable on March 29, 2024
to shareholders of record on March 15, 2024.
2024 Guidance
Reflecting the current operating and competitive
environment, the Company is providing AFFO guidance for the full
year 2024 based on the following assumptions and other factors:
- The guidance does not include the
impact on operating results from any possible future acquisitions
or dispositions, future capital markets activity, or other future
non-recurring transactions.
- The guidance assumes there will be
no material changes in applicable legislation, regulatory
environment, world events, including weather, recent consumer
trends, economic conditions, oil prices, competitive landscape or
other circumstances beyond our control that may adversely affect
the Company's results of operations.
The Company estimates AFFO for the year ending
December 31, 2024 will be between $1,041 million and $1,050
million, or between $3.70 and $3.74 per diluted share and OP
units.
The Company does not provide a reconciliation
for non-GAAP estimates on a forward-looking basis, including the
information above, where it is unable to provide a meaningful or
accurate calculation or estimation of reconciling items and the
information is not available without unreasonable
effort. This is due to the inherent difficulty of
forecasting the timing and/or amounts of various items that would
impact net income, which is the most directly comparable
forward-looking GAAP financial measure. This includes, for example,
provision for credit losses, net, and other non-core items that
have not yet occurred, are out of the Company’s control and/or
cannot be reasonably predicted. For the same reasons,
the Company is unable to address the probable significance of the
unavailable information. In particular, the Company is
unable to predict with reasonable certainty the amount of the
change in the provision for credit losses, net, under ASU No.
2016-13 - Financial Instruments - Credit Losses ("ASC 326") in
future periods. The non-cash change in the provision
for credit losses under ASC 326 with respect to future periods is
dependent upon future events that are entirely outside of the
Company's control and may not be reliably predicted, including the
performance and future outlook of our tenant's operations for our
leases that are accounted for as investment in leases, financing
receivables, as well as broader macroeconomic factors and future
predictions of such factors. As a result,
forward-looking non-GAAP financial measures provided without the
most directly comparable GAAP financial measures may vary
materially from the corresponding GAAP financial
measures.
Portfolio Update
GLPI's primary business consists of acquiring,
financing, and owning real estate property to be leased to gaming
operators in triple-net lease arrangements. As of December 31,
2023, GLPI's portfolio consisted of interests in 61 gaming and
related facilities, including the real property associated with 34
gaming and related facilities operated by PENN, the real property
associated with 6 gaming and related facilities operated by Caesars
Entertainment, Inc. (NASDAQ: CZR) ("Caesars"), the real property
associated with 4 gaming and related facilities operated by Boyd
Gaming Corporation (NYSE: BYD) ("Boyd"), the real property
associated with 9 gaming and related facilities operated by
Bally's, the real property associated with 3 gaming and related
facilities operated by The Cordish Companies ("Cordish"), the real
property associated with 4 gaming and related facilities operated
by Casino Queen and 1 gaming facility under construction that upon
opening is intended to be managed by Hard Rock International ("Hard
Rock"). These facilities are geographically diversified across 18
states and contain approximately 28.7 million square feet of
improvements.
Conference Call Details
The Company will hold a conference call on
February 28, 2024 at 10:00 a.m. (Eastern Time) to discuss
its financial results, current business trends and market
conditions.
To Participate in the Telephone Conference
Call:Dial in at least five minutes prior to start time.Domestic:
1-877/407-0784International: 1-201/689-8560
Conference Call Playback:Domestic:
1-844/512-2921International: 1-412/317-6671Passcode: 13743663The
playback can be accessed through Wednesday, March 6, 2024.
WebcastThe conference call will
be available in the Investor Relations section of the Company's
website at www.glpropinc.com. To listen to a live broadcast, go to
the site at least 15 minutes prior to the scheduled start time in
order to register, download and install any necessary software. A
replay of the call will also be available for 90 days thereafter on
the Company’s website.
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESConsolidated Statements of
Operations(in thousands, except per share data)
(unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues |
|
|
|
|
|
|
|
Rental income |
$ |
327,948 |
|
|
$ |
299,246 |
|
|
$ |
1,286,358 |
|
|
$ |
1,173,376 |
|
Income from investment in leases, financing receivables |
|
40,059 |
|
|
|
37,142 |
|
|
|
152,990 |
|
|
|
138,309 |
|
Interest income from real estate loans |
|
1,022 |
|
|
|
— |
|
|
|
1,044 |
|
|
|
— |
|
Total income from real
estate |
|
369,029 |
|
|
|
336,388 |
|
|
|
1,440,392 |
|
|
|
1,311,685 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Land rights and ground lease expense |
|
11,804 |
|
|
|
11,870 |
|
|
|
48,116 |
|
|
|
49,048 |
|
General and administrative |
|
13,761 |
|
|
|
11,315 |
|
|
|
56,450 |
|
|
|
51,319 |
|
Gains from dispositions of property |
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
(67,481 |
) |
Property transfer tax recovery and impairment charge |
|
— |
|
|
|
— |
|
|
|
(2,187 |
) |
|
|
3,298 |
|
Depreciation |
|
65,739 |
|
|
|
59,708 |
|
|
|
262,870 |
|
|
|
238,688 |
|
(Benefit) provision for credit losses, net |
|
(17,551 |
) |
|
|
(21,961 |
) |
|
|
6,461 |
|
|
|
6,898 |
|
Total operating expenses |
|
73,753 |
|
|
|
60,932 |
|
|
|
371,688 |
|
|
|
281,770 |
|
Income from operations |
|
295,276 |
|
|
|
275,456 |
|
|
|
1,068,704 |
|
|
|
1,029,915 |
|
|
|
|
|
|
|
|
|
Other income
(expenses) |
|
|
|
|
|
|
|
Interest expense |
|
(82,869 |
) |
|
|
(76,538 |
) |
|
|
(323,388 |
) |
|
|
(309,291 |
) |
Interest income |
|
5,806 |
|
|
|
1,293 |
|
|
|
12,607 |
|
|
|
1,905 |
|
Losses on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
(556 |
) |
|
|
(2,189 |
) |
Total other expenses |
|
(77,063 |
) |
|
|
(75,245 |
) |
|
|
(311,337 |
) |
|
|
(309,575 |
) |
|
|
|
|
|
|
|
|
Income before income
taxes |
|
218,213 |
|
|
|
200,211 |
|
|
|
757,367 |
|
|
|
720,340 |
|
Income tax expense |
|
957 |
|
|
|
624 |
|
|
|
1,997 |
|
|
|
17,055 |
|
Net
income |
$ |
217,256 |
|
|
$ |
199,587 |
|
|
$ |
755,370 |
|
|
$ |
703,285 |
|
Net income attributable to
non-controlling interest in the Operating Partnership |
|
(5,964 |
) |
|
|
(5,470 |
) |
|
|
(21,087 |
) |
|
|
(18,632 |
) |
Net income
attributable to common shareholders |
$ |
211,292 |
|
|
$ |
194,117 |
|
|
$ |
734,283 |
|
|
$ |
684,653 |
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic earnings attributable to
common shareholders |
$ |
0.79 |
|
|
$ |
0.75 |
|
|
$ |
2.78 |
|
|
$ |
2.71 |
|
Diluted earnings attributable
to common shareholders |
$ |
0.78 |
|
|
$ |
0.75 |
|
|
$ |
2.77 |
|
|
$ |
2.70 |
|
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESCurrent Year Revenue
Detail(in thousands) (unaudited) |
|
Three Months Ended
December 31, 2023 |
Building base rent |
Land base rent |
Percentage rent and other rental revenue |
Interest income on real estate loans |
Total cash income |
Straight-line rent adjustments |
Ground rent in revenue |
Accretion on financing leases |
Total income from real estate |
Amended Penn Master Lease |
$ |
52,743 |
$ |
10,759 |
$ |
6,936 |
|
$ |
— |
$ |
70,438 |
$ |
2,210 |
|
$ |
569 |
$ |
— |
$ |
73,217 |
PENN 2023 Master Lease |
|
58,623 |
|
— |
|
(114 |
) |
|
— |
|
58,509 |
|
5,912 |
|
|
— |
|
— |
|
64,421 |
Amended Pinnacle Master
Lease |
|
60,277 |
|
17,814 |
|
7,163 |
|
|
— |
|
85,254 |
|
1,858 |
|
|
2,169 |
|
— |
|
89,281 |
PENN Morgantown |
|
— |
|
774 |
|
— |
|
|
— |
|
774 |
|
— |
|
|
— |
|
— |
|
774 |
Caesars Master Lease |
|
16,021 |
|
5,933 |
|
— |
|
|
— |
|
21,954 |
|
2,196 |
|
|
331 |
|
— |
|
24,481 |
Horseshoe St Louis Lease |
|
5,918 |
|
— |
|
— |
|
|
— |
|
5,918 |
|
398 |
|
|
— |
|
— |
|
6,316 |
Boyd Master Lease |
|
20,068 |
|
2,947 |
|
2,566 |
|
|
— |
|
25,581 |
|
574 |
|
|
432 |
|
— |
|
26,587 |
Boyd Belterra Lease |
|
709 |
|
474 |
|
472 |
|
|
— |
|
1,655 |
|
151 |
|
|
— |
|
— |
|
1,806 |
Bally's Master Lease |
|
25,892 |
|
— |
|
— |
|
|
— |
|
25,892 |
|
— |
|
|
2,627 |
|
— |
|
28,519 |
Maryland Live! Lease |
|
18,750 |
|
— |
|
— |
|
|
— |
|
18,750 |
|
— |
|
|
2,143 |
|
3,467 |
|
24,360 |
Pennsylvania Live! Master
Lease |
|
12,500 |
|
— |
|
— |
|
|
— |
|
12,500 |
|
— |
|
|
306 |
|
2,297 |
|
15,103 |
Casino Queen Master Lease |
|
7,842 |
|
— |
|
— |
|
|
— |
|
7,842 |
|
137 |
|
|
— |
|
— |
|
7,979 |
Tropicana Las Vegas Lease |
|
— |
|
2,677 |
|
— |
|
|
— |
|
2,677 |
|
— |
|
|
— |
|
— |
|
2,677 |
Rockford Lease |
|
— |
|
2,000 |
|
— |
|
|
— |
|
2,000 |
|
— |
|
|
— |
|
486 |
|
2,486 |
Rockford Loan |
|
— |
|
— |
|
— |
|
|
1,022 |
|
1,022 |
|
— |
|
|
— |
|
— |
|
1,022 |
Total |
$ |
279,343 |
$ |
43,378 |
$ |
17,023 |
|
$ |
1,022 |
$ |
340,766 |
$ |
13,436 |
|
$ |
8,577 |
$ |
6,250 |
$ |
369,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2023 |
Building base rent |
Land base rent |
Percentage rent and other rental revenue |
Interest income on real estate loans |
Total cash income |
Straight-line rent adjustments |
Ground rent in revenue |
Accretion on financing leases |
Total income from real estate |
Amended Penn Master Lease |
$ |
208,889 |
$ |
43,035 |
$ |
29,977 |
|
|
— |
$ |
281,901 |
$ |
(7,610 |
) |
$ |
2,304 |
$ |
— |
$ |
276,595 |
PENN 2023 Master Lease |
|
232,750 |
|
— |
|
(312 |
) |
|
— |
|
232,438 |
|
25,388 |
|
|
— |
|
— |
|
257,826 |
Amended Pinnacle Master
Lease |
|
239,532 |
|
71,256 |
|
28,655 |
|
|
— |
|
339,443 |
|
7,432 |
|
|
8,255 |
|
— |
|
355,130 |
PENN Morgantown |
|
— |
|
3,092 |
|
— |
|
|
— |
|
3,092 |
|
— |
|
|
— |
|
— |
|
3,092 |
Caesars Master Lease |
|
63,493 |
|
23,729 |
|
— |
|
|
— |
|
87,222 |
|
9,378 |
|
|
1,449 |
|
— |
|
98,049 |
Horseshoe St Louis Lease |
|
23,451 |
|
— |
|
— |
|
|
— |
|
23,451 |
|
1,813 |
|
|
— |
|
— |
|
25,264 |
Boyd Master Lease |
|
79,748 |
|
11,786 |
|
10,263 |
|
|
— |
|
101,797 |
|
2,296 |
|
|
1,729 |
|
— |
|
105,822 |
Boyd Belterra Lease |
|
2,819 |
|
1,894 |
|
1,889 |
|
|
— |
|
6,602 |
|
605 |
|
|
— |
|
— |
|
7,207 |
Bally's Master Lease |
|
102,438 |
|
— |
|
— |
|
|
— |
|
102,438 |
|
— |
|
|
10,964 |
|
— |
|
113,402 |
Maryland Live! Lease |
|
75,000 |
|
— |
|
— |
|
|
— |
|
75,000 |
|
— |
|
|
8,450 |
|
13,503 |
|
96,953 |
Pennsylvania Live! Master
Lease |
|
50,000 |
|
— |
|
— |
|
|
— |
|
50,000 |
|
— |
|
|
1,237 |
|
8,908 |
|
60,145 |
Casino Queen Master Lease |
|
25,373 |
|
— |
|
— |
|
|
— |
|
25,373 |
|
579 |
|
|
— |
|
— |
|
25,952 |
Tropicana Las Vegas Lease |
|
— |
|
10,555 |
|
— |
|
|
— |
|
10,555 |
|
— |
|
|
— |
|
— |
|
10,555 |
Rockford Lease |
|
— |
|
2,711 |
|
— |
|
|
— |
|
2,711 |
|
— |
|
|
— |
|
645 |
|
3,356 |
Rockford Loan |
|
— |
|
— |
|
— |
|
|
1,044 |
|
1,044 |
|
— |
|
|
— |
|
— |
|
1,044 |
Total |
$ |
1,103,493 |
$ |
168,058 |
$ |
70,472 |
|
$ |
1,044 |
$ |
1,343,067 |
$ |
39,881 |
|
$ |
34,388 |
$ |
23,056 |
$ |
1,440,392 |
|
Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, and AFFO
to Adjusted EBITDAGaming and Leisure Properties, Inc. and
SubsidiariesCONSOLIDATED(in thousands, except per
share and share data) (unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
income |
$ |
217,256 |
|
|
$ |
199,587 |
|
|
$ |
755,370 |
|
|
$ |
703,285 |
|
Gains from dispositions of
property, net of tax |
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
(52,844 |
) |
Real estate depreciation |
|
64,946 |
|
|
|
59,240 |
|
|
|
260,440 |
|
|
|
236,809 |
|
Funds from
operations |
$ |
282,202 |
|
|
$ |
258,827 |
|
|
$ |
1,015,788 |
|
|
$ |
887,250 |
|
Straight-line rent
adjustments |
|
(13,436 |
) |
|
|
(2,772 |
) |
|
|
(39,881 |
) |
|
|
(4,294 |
) |
Other depreciation |
|
793 |
|
|
|
468 |
|
|
|
2,430 |
|
|
|
1,879 |
|
Amortization of land
rights |
|
3,276 |
|
|
|
3,289 |
|
|
|
13,554 |
|
|
|
15,859 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
2,545 |
|
|
|
2,377 |
|
|
|
9,857 |
|
|
|
9,975 |
|
Accretion on investment in
leases, financing receivables |
|
(6,250 |
) |
|
|
(5,339 |
) |
|
|
(23,056 |
) |
|
|
(19,442 |
) |
Non-cash adjustment to
financing lease liabilities |
|
122 |
|
|
|
123 |
|
|
|
469 |
|
|
|
483 |
|
Stock based compensation |
|
4,914 |
|
|
|
4,183 |
|
|
|
22,873 |
|
|
|
20,427 |
|
Losses on debt
extinguishment |
|
— |
|
|
|
— |
|
|
|
556 |
|
|
|
2,189 |
|
Property transfer tax recovery
and impairment charge |
|
— |
|
|
|
— |
|
|
|
(2,187 |
) |
|
|
3,298 |
|
(Benefit)/provision for credit
losses, net |
|
(17,551 |
) |
|
|
(21,961 |
) |
|
|
6,461 |
|
|
|
6,898 |
|
Capital maintenance
expenditures (1) |
|
(42 |
) |
|
|
(57 |
) |
|
|
(67 |
) |
|
|
(159 |
) |
Adjusted funds from
operations |
$ |
256,573 |
|
|
$ |
239,138 |
|
|
$ |
1,006,797 |
|
|
$ |
924,363 |
|
Interest, net (2) |
|
76,383 |
|
|
|
74,570 |
|
|
|
308,090 |
|
|
|
304,703 |
|
Income tax expense |
|
957 |
|
|
|
624 |
|
|
|
1,997 |
|
|
|
2,418 |
|
Capital maintenance
expenditures (1) |
|
42 |
|
|
|
57 |
|
|
|
67 |
|
|
|
159 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
(2,545 |
) |
|
|
(2,377 |
) |
|
|
(9,857 |
) |
|
|
(9,975 |
) |
Adjusted
EBITDA |
$ |
331,410 |
|
|
$ |
312,012 |
|
|
$ |
1,307,094 |
|
|
$ |
1,221,668 |
|
|
|
|
|
|
|
|
|
Net income, per
diluted common shares and OP units |
$ |
0.78 |
|
|
$ |
0.75 |
|
|
$ |
2.77 |
|
|
$ |
2.70 |
|
FFO, per diluted
common share and OP units |
$ |
1.02 |
|
|
$ |
0.97 |
|
|
$ |
3.73 |
|
|
$ |
3.40 |
|
AFFO, per diluted
common share and OP units |
$ |
0.93 |
|
|
$ |
0.89 |
|
|
$ |
3.69 |
|
|
$ |
3.55 |
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares and OP units outstanding |
|
|
|
|
|
|
|
Diluted common
shares |
|
269,652,162 |
|
|
|
260,365,257 |
|
|
|
264,992,926 |
|
|
|
253,846,475 |
|
OP units |
|
7,653,326 |
|
|
|
7,366,683 |
|
|
|
7,651,755 |
|
|
|
6,878,857 |
|
Diluted common shares
and OP units |
|
277,305,488 |
|
|
|
267,731,940 |
|
|
|
272,644,681 |
|
|
|
260,725,332 |
|
(1) Capital maintenance expenditures are
expenditures to replace existing fixed assets with a useful life
greater than one year that are obsolete, worn out or no longer cost
effective to repair.
(2) Excludes a non-cash interest expense gross
up related to the ground lease for the Live! Maryland
property.
|
Reconciliation of Cash Net Operating IncomeGaming and Leisure
Properties, Inc. and SubsidiariesCONSOLIDATED(in
thousands, except per share and share data) (unaudited) |
|
|
Three Months Ended December 31, 2023 |
|
Year Ended December 31, 2023 |
Adjusted EBITDA |
$ |
331,410 |
|
|
$ |
1,307,094 |
|
General and administrative
expenses |
|
13,761 |
|
|
|
56,450 |
|
Stock based compensation |
|
(4,914 |
) |
|
|
(22,873 |
) |
Cash net operating
income (1) |
|
340,257 |
|
|
|
1,340,671 |
|
________________________(1) Cash net operating income is rental
and other property income less cash property level expenses.
|
Gaming and Leisure Properties, Inc. and
SubsidiariesConsolidated Balance
Sheets(in thousands, except share and per share data) |
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
|
|
Assets |
|
|
|
Real estate investments, net |
$ |
8,168,792 |
|
|
$ |
7,707,935 |
|
Investment in leases, financing receivables, net |
|
2,023,606 |
|
|
|
1,903,195 |
|
Real estate loans, net |
|
39,036 |
|
|
|
— |
|
Right-of-use assets and land rights |
|
835,524 |
|
|
|
834,067 |
|
Cash and cash equivalents |
|
683,983 |
|
|
|
239,083 |
|
Other assets |
|
55,717 |
|
|
|
246,106 |
|
Total
assets |
$ |
11,806,658 |
|
|
$ |
10,930,386 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable and accrued expenses |
$ |
7,011 |
|
|
$ |
6,561 |
|
Accrued interest |
|
83,112 |
|
|
|
82,297 |
|
Accrued salaries and wages |
|
7,452 |
|
|
|
6,742 |
|
Operating lease liabilities |
|
196,853 |
|
|
|
181,965 |
|
Financing lease liability |
|
54,261 |
|
|
|
53,792 |
|
Long-term debt, net of unamortized debt issuance costs, bond
premiums and original issuance discounts |
|
6,627,550 |
|
|
|
6,128,468 |
|
Deferred rental revenue |
|
284,893 |
|
|
|
324,774 |
|
Other liabilities |
|
36,572 |
|
|
|
27,691 |
|
Total liabilities |
|
7,297,704 |
|
|
|
6,812,290 |
|
|
|
|
|
Equity |
|
|
|
|
|
00 |
|
|
|
Preferred stock ($.01 par value, 50,000,000 shares authorized, no
shares issued or outstanding at December 31, 2023 and December 31,
2022) |
|
— |
|
|
|
— |
|
Common stock ($.01 par value, 500,000,000 shares authorized,
270,922,719 shares and 260,727,030 shares issued and outstanding at
December 31, 2023 and December 31, 2022, respectively) |
|
2,709 |
|
|
|
2,607 |
|
Additional paid-in capital |
|
6,052,109 |
|
|
|
5,573,567 |
|
Retained deficit |
|
(1,897,913 |
) |
|
|
(1,798,216 |
) |
Total equity attributable to Gaming and Leisure Properties |
|
4,156,905 |
|
|
|
3,777,958 |
|
Noncontrolling interests in
GLPI's Operating Partnership (7,653,326 units and 7,366,683 units
outstanding at December 31, 2023 and December 31, 2022,
respectively) |
|
352,049 |
|
|
|
340,138 |
|
Total equity |
|
4,508,954 |
|
|
|
4,118,096 |
|
Total liabilities and
equity |
$ |
11,806,658 |
|
|
$ |
10,930,386 |
|
Debt Capitalization
The Company’s debt structure as of December 31, 2023 was as
follows:
|
|
|
|
|
|
Years to Maturity |
Interest Rate |
|
Balance |
|
|
|
|
|
(in thousands) |
Unsecured $1,750 Million Revolver Due May 2026 |
|
— |
— |
% |
|
|
— |
|
Term Loan Credit Facility Due
September 2027 |
|
3.7 |
6.757 |
% |
|
|
600,000 |
|
Senior Unsecured Notes Due
September 2024 |
|
0.7 |
3.350 |
% |
|
|
400,000 |
|
Senior Unsecured Notes Due
June 2025 |
|
1.4 |
5.250 |
% |
|
|
850,000 |
|
Senior Unsecured Notes Due
April 2026 |
|
2.3 |
5.375 |
% |
|
|
975,000 |
|
Senior Unsecured Notes Due
June 2028 |
|
4.4 |
5.750 |
% |
|
|
500,000 |
|
Senior Unsecured Notes Due
January 2029 |
|
5.0 |
5.300 |
% |
|
|
750,000 |
|
Senior Unsecured Notes Due
January 2030 |
|
6.0 |
4.000 |
% |
|
|
700,000 |
|
Senior Unsecured Notes Due
January 2031 |
|
7.0 |
4.000 |
% |
|
|
700,000 |
|
Senior Unsecured Notes Due
January 2032 |
|
8.0 |
3.250 |
% |
|
|
800,000 |
|
Senior Unsecured Notes Due
December 2033 |
|
9.9 |
6.750 |
% |
|
|
400,000 |
|
Other |
|
2.7 |
4.780 |
% |
|
|
434 |
|
Total long-term
debt |
|
|
|
|
|
6,675,434 |
|
Less: unamortized debt
issuance costs, bond premiums and original issuance discounts |
|
|
|
|
|
(47,884 |
) |
Total long-term debt,
net of unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
|
$ |
6,627,550 |
|
Weighted
average |
|
4.7 |
4.921 |
% |
|
|
|
|
|
|
|
|
________________________
Rating Agency Update - Issue Rating
|
Rating Agency |
|
Rating |
|
|
Standard & Poor's |
|
BBB- |
|
|
Fitch |
|
BBB- |
|
|
Moody's |
|
Ba1 |
|
Properties
Description |
Location |
Date Acquired |
Tenant/Operator |
Amended PENN Master Lease (14 Properties) |
|
|
|
Hollywood Casino
Lawrenceburg |
Lawrenceburg, IN |
11/1/2013 |
PENN |
Argosy Casino Alton |
Alton, IL |
11/1/2013 |
PENN |
Hollywood Casino at Charles
Town Races |
Charles Town, WV |
11/1/2013 |
PENN |
Hollywood Casino at Penn
National Race Course |
Grantville, PA |
11/1/2013 |
PENN |
Hollywood Casino Bangor |
Bangor, ME |
11/1/2013 |
PENN |
Zia Park Casino |
Hobbs, NM |
11/1/2013 |
PENN |
Hollywood Casino Gulf
Coast |
Bay St. Louis, MS |
11/1/2013 |
PENN |
Argosy Casino Riverside |
Riverside, MO |
11/1/2013 |
PENN |
Hollywood Casino Tunica |
Tunica, MS |
11/1/2013 |
PENN |
Boomtown Biloxi |
Biloxi, MS |
11/1/2013 |
PENN |
Hollywood Casino St.
Louis |
Maryland Heights, MO |
11/1/2013 |
PENN |
Hollywood Gaming Casino at
Dayton Raceway |
Dayton, OH |
11/1/2013 |
PENN |
Hollywood Gaming Casino at
Mahoning Valley Race Track |
Youngstown, OH |
11/1/2013 |
PENN |
1st Jackpot Casino |
Tunica, MS |
5/1/2017 |
PENN |
PENN 2023 Master Lease
(7 Properties) |
|
|
|
Hollywood Casino Aurora |
Aurora, IL |
11/1/2013 |
PENN |
Hollywood Casino Joliet |
Joliet, IL |
11/1/2013 |
PENN |
Hollywood Casino Toledo |
Toledo, OH |
11/1/2013 |
PENN |
Hollywood Casino Columbus |
Columbus, OH |
11/1/2013 |
PENN |
M Resort |
Henderson, NV |
11/1/2013 |
PENN |
Hollywood Casino at the
Meadows |
Washington, PA |
9/9/2016 |
PENN |
Hollywood Casino
Perryville |
Perryville, MD |
7/1/2021 |
PENN |
Amended Pinnacle
Master Lease (12 Properties) |
|
|
|
Ameristar Black Hawk |
Black Hawk, CO |
4/28/2016 |
PENN |
Ameristar East Chicago |
East Chicago, IN |
4/28/2016 |
PENN |
Ameristar Council Bluffs |
Council Bluffs, IA |
4/28/2016 |
PENN |
L'Auberge Baton Rouge |
Baton Rouge, LA |
4/28/2016 |
PENN |
Boomtown Bossier City |
Bossier City, LA |
4/28/2016 |
PENN |
L'Auberge Lake Charles |
Lake Charles, LA |
4/28/2016 |
PENN |
Boomtown New Orleans |
New Orleans, LA |
4/28/2016 |
PENN |
Ameristar Vicksburg |
Vicksburg, MS |
4/28/2016 |
PENN |
River City Casino &
Hotel |
St. Louis, MO |
4/28/2016 |
PENN |
Jackpot Properties (Cactus
Petes and Horseshu) |
Jackpot, NV |
4/28/2016 |
PENN |
Plainridge Park Casino |
Plainridge, MA |
10/15/2018 |
PENN |
Caesars Master Lease
(5 Properties) |
|
|
|
Tropicana Atlantic City |
Atlantic City, NJ |
10/1/2018 |
CZR |
Tropicana Laughlin |
Laughlin, NV |
10/1/2018 |
CZR |
Trop Casino Greenville |
Greenville, MS |
10/1/2018 |
CZR |
Isle Casino Hotel
Bettendorf |
Bettendorf, IA |
12/18/2020 |
CZR |
Isle Casino Hotel
Waterloo |
Waterloo, IA |
12/18/2020 |
CZR |
Boyd Master Lease (3
Properties) |
|
|
|
Belterra Casino Resort |
Florence, IN |
4/28/2016 |
BYD |
Ameristar Kansas City |
Kansas City, MO |
4/28/2016 |
BYD |
Ameristar St. Charles |
St. Charles, MO |
4/28/2016 |
BYD |
Bally's Master Lease
(8 Properties) |
|
|
|
Tropicana Evansville |
Evansville, IN |
6/3/2021 |
BALY |
Bally's Dover Casino
Resort |
Dover, DE |
6/3/2021 |
BALY |
Black Hawk (Black Hawk North,
West and East casinos) |
Black Hawk, CO |
4/1/2022 |
BALY |
Quad Cities Casino &
Hotel |
Rock Island, IL |
4/1/2022 |
BALY |
Bally's Tiverton Hotel &
Casino |
Tiverton, RI |
1/3/2023 |
BALY |
Hard Rock Casino and Hotel
Biloxi |
Biloxi, MS |
1/3/2023 |
BALY |
Casino Queen Master
Lease (4 Properties) |
|
|
|
DraftKings at Casino
Queen |
East St. Louis, IL |
1/23/2014 |
Casino Queen |
The Queen Baton Rouge |
Baton Rouge, LA |
12/17/2021 |
Casino Queen |
Casino Queen Marquette |
Marquette, IA |
9/6/2023 |
Casino Queen |
Belle of Baton Rouge |
Baton Rouge, LA |
10/1/2018 |
Casino Queen |
Pennsylvania Live!
Master Lease (2 Properties) |
|
|
|
Live! Casino & Hotel
Philadelphia |
Philadelphia, PA |
3/1/2022 |
Cordish |
Live! Casino Pittsburgh |
Greensburg, PA |
3/1/2022 |
Cordish |
|
|
|
|
Single Asset
Leases |
|
|
|
Belterra Park Gaming &
Entertainment Center |
Cincinnati, OH |
10/15/2018 |
BYD |
Horseshoe St. Louis |
St. Louis, MO |
10/1/2018 |
CZR |
Hollywood Casino
Morgantown |
Morgantown, PA |
10/1/2020 |
PENN |
Live! Casino & Hotel
Maryland |
Hanover, MD |
12/29/2021 |
Cordish |
Tropicana Las Vegas |
Las Vegas, NV |
4/16/2020 |
BALY |
Rockford |
Rockford, IL |
8/29/2023 |
815 ENT Lease (1) |
(1) Managed by Hard Rock |
|
|
|
Lease Information
|
|
Master Leases |
|
|
|
|
PENN 2023 Master Lease |
Amended PENN Master Lease |
PENN Amended Pinnacle Master Lease |
Caesars Amended and Restated Master Lease |
Boyd Master Lease |
Bally's Master Lease |
Casino Queen Master Lease |
Pennsylvania Live! Master Lease operated by
Cordish |
Property Count |
7 |
14 |
12 |
5 |
3 |
8 |
4 |
2 |
Number of States
Represented |
5 |
9 |
8 |
4 |
2 |
6 |
3 |
1 |
Commencement Date |
1/1/2023 |
11/1/2013 |
4/28/2016 |
10/1/2018 |
10/15/2018 |
6/3/2021 |
12/17/2021 |
3/1/2022 |
Lease Expiration Date |
10/31/2033 |
10/31/2033 |
4/30/2031 |
9/30/2038 |
04/30/2026 |
06/02/2036 |
12/31/2036 |
2/28/2061 |
Remaining Renewal Terms |
15 (3x5 years) |
15 (3x5 years) |
20 (4x5 years) |
20 (4x5 years) |
25 (5x5 years) |
20 (4x5 years) |
20 (4x5 years) |
21 (1 X 11 years, 1 X 10 years) |
Corporate Guarantee |
Yes |
Yes |
Yes |
Yes |
No |
Yes |
Yes |
No |
Master Lease with Cross
Collateralization |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage |
1.1 |
1.1 |
1.2 |
1.2 |
1.4 |
1.2 |
1.4 |
1.4 |
Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Escalator
Details |
|
|
|
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
1.5% (1) |
2% |
2% |
(2) |
2% |
(3) |
(4) |
1.75 (5) |
Coverage ratio at September
30, 2023 (6) |
1.95 |
2.28 |
2.01 |
2.18 |
2.75 |
2.23 |
2.21 |
2.28 |
Minimum Escalator Coverage
Governor |
N/A |
1.8 |
1.8 |
N/A |
1.8 |
N/A |
N/A |
N/A |
Yearly Anniversary for
Realization |
November |
November |
May |
October |
May |
June |
December |
March 2024 |
Percentage Rent Reset
Details |
|
|
|
|
|
|
|
|
Reset Frequency |
N/A |
5 years |
2 years |
N/A |
2 years |
N/A |
N/A |
N/A |
Next Reset |
N/A |
November 2028 |
May 2024 |
N/A |
May 2024 |
N/A |
N/A |
N/A |
(1) In addition to the annual escalation,
a one-time annualized increase of $1.4 million occurs on November
1, 2027.
(2) Building base rent will be increased
by 1.25% annually in the 5th and 6th lease year, 1.75% in the 7th
and 8th lease year, and 2% in the 9th lease year and each year
thereafter.
(3) If the CPI increase is at least 0.5%
for any lease year, then the rent shall increase by the greater of
1% of the rent as of the immediately preceding lease year and the
CPI increase capped at 2%. If the CPI is less than 0.5% for such
lease year, then the rent shall not increase for such lease
year.
(4) Rent increases by 0.5% for the first
six years. Beginning in the seventh lease year through the
remainder of the lease term, if the CPI increases by at least 0.25%
for any lease year then annual rent shall be increased by 1.25%,
and if the CPI is less than 0.25% then rent will remain unchanged
for such lease year.
(5) Effective on the second anniversary of
the commencement date of the lease.
(6) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of September 30, 2023. The PENN 2023 Master Lease
and Amended Penn Master Lease were calculated on a proforma basis.
GLPI has not independently verified the accuracy of the tenants'
information and therefore makes no representation as to its
accuracy.
Lease Information
|
|
Single Property Leases |
|
|
|
|
Belterra Park Lease operated by Boyd |
Horseshoe St. Louis Lease operated by CZR |
Morgantown Ground Lease operated by PENN |
Live! Casino & Hotel Maryland operated by
Cordish |
Tropicana Las Vegas Ground Lease operated by
BALY |
Hard Rock Rockford Ground Lease managed by Hard
Rock |
Commencement Date |
10/15/2018 |
9/29/2020 |
10/1/2020 |
12/29/2021 |
9/26/2022 |
8/29/2023 |
Lease Expiration Date |
04/30/2026 |
10/31/2033 |
10/31/2040 |
12/31/2060 |
9/25/2072 |
8/31/2122 |
Remaining Renewal Terms |
25 (5x5 years) |
20 (4x5 years) |
30 (6x5 years) |
21 (1 x 11 years, 1 x 10 years) |
49 (1 x 24 years, 1 x 25 years) |
None |
Corporate Guarantee |
No |
Yes |
Yes |
No |
Yes |
No |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage |
1.4 |
1.2 |
N/A |
1.4 |
1.4 |
1.4 |
Competitive Radius Landlord
Protection |
Yes |
Yes |
N/A |
Yes |
Yes |
Yes |
Escalator
Details |
|
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
1.25% (1) |
1.5% (2) |
1.75% (3) |
(4) |
2% |
Coverage ratio at September
30, 2023 (5) |
3.59 |
2.27 |
N/A |
3.60 |
N/A |
N/A |
Minimum Escalator Coverage
Governor |
1.8 |
N/A |
N/A |
N/A |
N/A |
N/A |
Yearly Anniversary for
Realization |
May |
October |
December |
January 2024 |
October |
September |
Percentage Rent Reset
Details |
|
|
|
|
|
|
Reset Frequency |
2 years |
N/A |
N/A |
N/A |
N/A |
N/A |
Next Reset |
May 2024 |
N/A |
N/A |
N/A |
N/A |
N/A |
(1) For the second through fifth lease
years, after which time the annual escalation becomes 1.75% for the
6th and 7th lease years and then 2% for the remaining term of the
lease.
(2) Increases by 1.5% on the opening date
(which occurred on December 22, 2021) and for the first three lease
years. Commencing on the fourth anniversary of the opening date and
for each anniversary thereafter, if the CPI increase is at least
0.5% for any lease year, the rent for such lease year shall
increase by 1.25% of rent as of the immediately preceding lease
year, and if the CPI increase is less than 0.5% for such lease
year, then the rent shall not increase for such lease year.
(3) Effective on the second anniversary of
the commencement date of the lease.
(4) If the CPI increase is at least 0.5%
for any lease year, then the rent shall increase by the greater of
1% of the rent as of the immediately preceding lease year and the
CPI increase capped at 2%. If the CPI is less than 0.5% for such
lease year, then the rent shall not increase for such lease
year.
(5) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of September 30, 2023. GLPI has not independently
verified the accuracy of the tenants' information and therefore
makes no representation as to its accuracy.
Disclosure Regarding Non-GAAP Financial
Measures
FFO, FFO per diluted common share and OP units,
AFFO, AFFO per diluted common share and OP units, Adjusted EBITDA
and Cash Net Operating Income ("Cash NOI"), which are detailed in
the reconciliation tables that accompany this release, are used by
the Company as performance measures for benchmarking against the
Company’s peers and as internal measures of business operating
performance, which is used for a bonus metric. These metrics
are presented assuming full conversion of limited partnership units
to common shares and therefore before the income statement impact
of non-controlling interests. The Company believes FFO, FFO per
diluted common share and OP units, AFFO, AFFO per diluted common
share and OP units, Adjusted EBITDA and Cash NOI provide a
meaningful perspective of the underlying operating performance of
the Company’s current business. This is especially true since
these measures exclude real estate depreciation and we believe that
real estate values fluctuate based on market conditions rather than
depreciating in value ratably on a straight-line basis over time.
Cash NOI is rental and other property income, less cash property
level expenses. Cash NOI excludes depreciation, the amortization of
land rights, real estate general and administrative expenses, other
non-routine costs and the impact of certain generally accepted
accounting principles (“GAAP”) adjustments to rental revenue, such
as straight-line rent adjustments and non-cash ground lease income
and expense. It is management's view that Cash NOI is a performance
measure used to evaluate the operating performance of the Company’s
real estate operations and provides investors relevant and useful
information because it reflects only income and operating expense
items that are incurred at the property level and presents them on
an unleveraged basis.
FFO, FFO per diluted common share and OP units,
AFFO, AFFO per diluted common share and OP units, Adjusted EBITDA
and Cash NOI are non-GAAP financial measures that are considered
supplemental measures for the real estate industry and a supplement
to GAAP measures. NAREIT defines FFO as net income (computed
in accordance with GAAP), excluding (gains) or losses from
dispositions of property, net of tax and real estate
depreciation. We have defined AFFO as FFO excluding, as
applicable to the particular period, stock based compensation
expense, the amortization of debt issuance costs, bond premiums and
original issuance discounts, other depreciation, the amortization
of land rights, accretion on investment in leases, financing
receivables, non-cash adjustments to financing lease liabilities,
property transfer tax recoveries and impairment charges,
straight-line rent adjustments, losses on debt extinguishment, and
provision (benefit) for credit losses, net, reduced by capital
maintenance expenditures. We have defined Adjusted EBITDA as
net income excluding, as applicable to the particular period,
interest, net, income tax expense, real estate depreciation, other
depreciation, (gains) or losses from dispositions of property, net
of tax, stock based compensation expense, straight-line rent
adjustments, the amortization of land rights, accretion on
investment in leases, financing receivables, non-cash adjustments
to financing lease liabilities, property transfer tax recoveries
and impairment charges, losses on debt extinguishment, and
provision (benefit) for credit losses, net. Finally, we have
defined Cash NOI as Adjusted EBITDA excluding general and
administrative expenses and including, as applicable to the
particular period, stock based compensation expense and (gains) or
losses from dispositions of property.
FFO, FFO per diluted common share and OP units,
AFFO, AFFO per diluted common share and OP units, Adjusted EBITDA
and Cash NOI are not recognized terms under GAAP. These
non-GAAP financial measures: (i) do not represent cash flow from
operations as defined by GAAP; (ii) should not be considered as an
alternative to net income as a measure of operating performance or
to cash flows from operating, investing and financing activities;
and (iii) are not alternatives to cash flow as a measure of
liquidity. In addition, these measures should not be viewed as an
indication of our ability to fund all of our cash needs, including
to make cash distributions to our shareholders, to fund capital
improvements, or to make interest payments on our indebtedness.
Investors are also cautioned that FFO, FFO per diluted common share
and OP units, AFFO, AFFO per diluted common share and OP units,
Adjusted EBITDA and Cash NOI, as presented, may not be comparable
to similarly titled measures reported by other real estate
companies, including REITs, due to the fact that not all real
estate companies use the same definitions. Our presentation of
these measures does not replace the presentation of our financial
results in accordance with GAAP.
About Gaming and Leisure
Properties
GLPI is engaged in the business of acquiring,
financing, and owning real estate property to be leased to gaming
operators in triple-net lease arrangements, pursuant to which the
tenant is responsible for all facility maintenance, insurance
required in connection with the leased properties and the business
conducted on the leased properties, taxes levied on or with respect
to the leased properties and all utilities and other services
necessary or appropriate for the leased properties and the business
conducted on the leased properties.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, including our expectations regarding our 2024
AFFO guidance and the Company benefiting from recently completed
transactions. Forward-looking statements can be identified by the
use of forward-looking terminology such as “expects,” “believes,”
“estimates,” “intends,” “may,” “will,” “should” or “anticipates” or
the negative or other variation of these or similar words, or by
discussions of future events, strategies or risks and
uncertainties. Such forward looking statements are inherently
subject to risks, uncertainties and assumptions about GLPI and its
subsidiaries, including risks related to the following: GLPI’s
belief regarding its 2024 pipeline of deals; GLPI's belief that its
tenants' strength, combined with GLPI's balance sheet and
liquidity, position GLPI to consistently grow its cash flows, raise
dividends and build value for shareholders in 2024 and beyond;
GLPI's belief that it is well positioned to deliver long-term
growth based on its gaming operator relationships, its rights and
options to participate in select tenants' future growth and
expansion initiatives, an environment conducive to supporting a
healthy pipeline of new deals, and its ability to structure and
fund innovative transactions at competitive rates; GLPI’s ability
to successfully consummate the transactions contemplated by the May
2023 LOI with Bally’s and Athletics, including the ability of the
parties to satisfy the various conditions and approvals, including
receipt of approvals from the Nevada Gaming Control Board and
Nevada Gaming Commission; the effect of pandemics, such as
COVID-19, on GLPI as a result of the impact such pandemics may have
on the business operations of GLPI’s tenants and their continued
ability to pay rent in a timely manner or at all; the potential
negative impact of ongoing high levels of inflation (which have
been exacerbated by the armed conflict between Russia and Ukraine
and may be further impacted by recent events in the Middle East) on
our tenants' operations, the availability of and the ability to
identify suitable and attractive acquisition and development
opportunities and the ability to acquire and lease those properties
on favorable terms; the ability to receive, or delays in obtaining,
the regulatory approvals required to own and/or operate its
properties, or other delays or impediments to completing
acquisitions or projects; GLPI's ability to maintain its status as
a REIT; our ability to access capital through debt and equity
markets in amounts and at rates and costs acceptable to GLPI; the
impact of our substantial indebtedness on our future operations;
changes in the U.S. tax law and other state, federal or local laws,
whether or not specific to REITs or to the gaming or lodging
industries; and other factors described in GLPI’s Annual Report on
Form 10-K for the year ended December 31, 2023, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, each as filed
with the Securities and Exchange Commission. All subsequent written
and oral forward-looking statements attributable to GLPI or persons
acting on GLPI’s behalf are expressly qualified in their entirety
by the cautionary statements included in this press release. GLPI
undertakes no obligation to publicly update or revise any
forward-looking statements contained or incorporated by reference
herein, whether as a result of new information, future events or
otherwise, except as required by law. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this press release may not occur as presented or at all.
Contact |
|
Gaming and Leisure Properties, Inc. |
Investor Relations |
Matthew Demchyk, Chief Investment Officer |
Joseph Jaffoni, Richard Land, James Leahy at JCIR |
610/401-2900 |
212/835-8500 |
|
glpi@jcir.com |
Gaming and Leisure Prope... (NASDAQ:GLPI)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Gaming and Leisure Prope... (NASDAQ:GLPI)
Historical Stock Chart
Von Jun 2023 bis Jun 2024