Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) ("GLPI" or
the "Company") today announced financial results for
the quarter ended March 31, 2024.
Financial Highlights
|
|
Three Months Ended March 31, |
(in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
Total Revenue |
|
$ |
376.0 |
|
|
$ |
355.2 |
|
Income from
Operations |
|
$ |
257.6 |
|
|
$ |
266.8 |
|
Net
Income |
|
$ |
179.5 |
|
|
$ |
188.7 |
|
FFO (1) (4) |
|
$ |
244.4 |
|
|
$ |
253.8 |
|
AFFO (2) (4) |
|
$ |
258.6 |
|
|
$ |
248.6 |
|
Adjusted
EBITDA (3) (4) |
|
$ |
333.4 |
|
|
$ |
323.1 |
|
Net income, per
diluted common share and OP
units (4) |
|
$ |
0.64 |
|
|
$ |
0.70 |
|
FFO, per diluted
common share and OP units (4) |
|
$ |
0.87 |
|
|
$ |
0.94 |
|
AFFO, per diluted
common share and OP units (4) |
|
$ |
0.92 |
|
|
$ |
0.92 |
|
________________________________(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, "GLPI's consistent cash flow
generation, based on our work with the industry’s leading
operators, led to record first quarter results across key financial
metrics when excluding the non-cash impact of a nearly $29 million
year-over-year change in our reserve for credit losses, net. On an
operating basis, first quarter total revenue rose 5.8% year over
year to $376.0 million and AFFO grew 4.0%. Our first quarter growth
reflects GLPI’s stable portfolio of gaming operator tenants
combined with our liquidity and capital markets discipline.
Collectively, our strategies have set the stage for continued
growth and dividend increases as highlighted by the March 2024
dividend payment of $0.76 per share, which when annualized, results
in a yield of approximately 7% based on yesterday’s closing share
price. With our opportunistic approach to portfolio expansion, the
proven long-term resiliency of our tenants’ revenue streams, and
comfortable rent coverage ratios across our portfolio, we expect to
continue to deliver strong capital returns and yields for our
shareholders.
"Consistent with our focus on working with the
nation’s best gaming operators and strict adherence to risk
management policies, we further expanded our footprint and
portfolio in the first quarter through the acquisition of the real
estate assets of Tioga Downs Casino Resort in Nichols, NY from
American Racing & Entertainment, LLC. Tioga Downs is a
high-quality, recently expanded asset with significant geographic
protection from competition. Simultaneous with the acquisition,
GLPI and American Racing entered into a triple-net lease agreement
for an initial 30-year term. The initial annual rent for the new
lease represents an 8.3% capitalization rate and the rent coverage
ratio is expected to be over 2.3x. Tioga Downs further diversifies
our portfolio, expanding it to 62 properties across 19 states with
eight tenants. As with our other tenant relationships, we look
forward to a long-term partnership with American Racing and our
initiatives to further expand our portfolio remain active in the
current environment as our reputation as the gaming landlord of
choice is strengthened, reflecting our deep, long-term knowledge of
the sector.
"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.
The overall 2023 transaction value – despite a still challenged
market environment – reflects our creativity in crafting
comprehensive financing solutions for our tenant partners. Our 2023
portfolio additions and recently completed transactions combined
with contractual rent escalators and a strong balance sheet, set
the stage for continued financial growth in the balance of 2024 and
beyond. Our disciplined capital investment approach, combined with
our focus on stable and resilient regional gaming markets, supports
our confidence that the Company is well positioned to further grow
our cash dividend and drive long-term shareholder value."
Recent Developments
- On February 6, 2024, the Company
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 lease agreement for an initial 30-year term. The
initial 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 the initial term.
- During the first quarter of 2024,
an additional $14 million was drawn on the $150 million delayed
draw term loan commitment for a development project in Rockford,
Illinois that is expected to be completed in September 2024. At
March 31, 2024, $54 million of the $150 million commitment has been
funded which accrues interest at 10%.
Dividends
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 was paid on March 29, 2024 to
shareholders of record on March 15, 2024.
2024 Guidance
Reflecting the current operating and competitive
environment, the Company is updating its 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 $1,042 million and $1,051
million, or between $3.71 and $3.74 per diluted share and OP units.
GLPI's prior guidance contemplated AFFO for the year ending
December 31, 2024 of 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 March 31,
2024, GLPI's portfolio consisted of interests in 62 gaming and
related facilities, including, the real property associated with 34
gaming and related facilities operated by PENN Entertainment
(NASDAQ: PENN) ("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 Corporation (NYSE: BALY)
("Bally's"), the real property associated with 3 gaming and related
facilities operated by The Cordish Companies, the real property
associated with 4 gaming and related facilities operated by Casino
Queen, 1 gaming and related facility operated by American Racing
and 1 facility under development that is intended to be managed by
a subsidiary of Hard Rock International ("Hard Rock"). These
facilities are geographically diversified across 19 states and
contain approximately 29.0 million square feet of improvements.
Conference Call Details
The Company will hold a conference call on
April 26, 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: 13745861The
playback can be accessed through Friday, May 3, 2024.
Webcast
The 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
SUBSIDIARIES |
Consolidated Statements of Operations |
(in thousands, except per share data) (unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
Rental income |
|
$ |
330,582 |
|
|
$ |
317,968 |
|
Income from investment in leases, financing receivables |
|
|
44,305 |
|
|
|
37,246 |
|
Interest income from real estate loans |
|
|
1,077 |
|
|
|
— |
|
Total income from real
estate |
|
|
375,964 |
|
|
|
355,214 |
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
Land rights and ground lease expense |
|
|
11,818 |
|
|
|
12,014 |
|
General and administrative |
|
|
17,886 |
|
|
|
16,450 |
|
Depreciation |
|
|
65,360 |
|
|
|
65,554 |
|
Provision (benefit) for credit losses, net |
|
|
23,294 |
|
|
|
(5,653 |
) |
Total operating expenses |
|
|
118,358 |
|
|
|
88,365 |
|
Income from operations |
|
|
257,606 |
|
|
|
266,849 |
|
|
|
|
|
|
Other income
(expenses) |
|
|
|
|
Interest expense |
|
|
(86,675 |
) |
|
|
(81,360 |
) |
Interest income |
|
|
9,232 |
|
|
|
4,255 |
|
Losses on debt extinguishment |
|
|
— |
|
|
|
(556 |
) |
Total other expenses |
|
|
(77,443 |
) |
|
|
(77,661 |
) |
|
|
|
|
|
Income before income
taxes |
|
|
180,163 |
|
|
|
189,188 |
|
Income tax expense |
|
|
637 |
|
|
|
518 |
|
Net
income |
|
$ |
179,526 |
|
|
$ |
188,670 |
|
Net income attributable to
non-controlling interest in the Operating Partnership |
|
|
(5,062 |
) |
|
|
(5,319 |
) |
Net income
attributable to common shareholders |
|
$ |
174,464 |
|
|
$ |
183,351 |
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
Basic earnings attributable to
common shareholders |
|
$ |
0.64 |
|
|
$ |
0.70 |
|
Diluted earnings attributable
to common shareholders |
|
$ |
0.64 |
|
|
$ |
0.70 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
Current Year Revenue Detail |
(in thousands) (unaudited) |
|
Three Months Ended March 31, 2024 |
|
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 (1) |
Ground rent in revenue |
Accretion on financing leases |
Total income from real estate |
Amended PENN Master Lease |
|
$ |
53,090 |
|
$ |
10,759 |
|
$ |
6,519 |
|
$ |
— |
|
$ |
70,368 |
|
$ |
4,952 |
|
$ |
569 |
|
$ |
— |
|
$ |
75,889 |
|
PENN 2023 Master Lease |
|
|
58,913 |
|
|
— |
|
|
(107 |
) |
|
— |
|
|
58,806 |
|
|
5,622 |
|
|
— |
|
|
— |
|
|
64,428 |
|
Amended Pinnacle Master
Lease |
|
|
60,277 |
|
|
17,814 |
|
|
7,164 |
|
|
— |
|
|
85,255 |
|
|
1,858 |
|
|
2,063 |
|
|
— |
|
|
89,176 |
|
PENN Morgantown Lease |
|
|
— |
|
|
784 |
|
|
— |
|
|
— |
|
|
784 |
|
|
— |
|
|
— |
|
|
— |
|
|
784 |
|
Caesars Master Lease |
|
|
16,022 |
|
|
5,932 |
|
|
— |
|
|
— |
|
|
21,954 |
|
|
2,196 |
|
|
330 |
|
|
— |
|
|
24,480 |
|
Horseshoe St. Louis Lease |
|
|
5,918 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,918 |
|
|
399 |
|
|
— |
|
|
— |
|
|
6,317 |
|
Boyd Master Lease |
|
|
20,068 |
|
|
2,946 |
|
|
2,566 |
|
|
— |
|
|
25,580 |
|
|
574 |
|
|
432 |
|
|
— |
|
|
26,586 |
|
Boyd Belterra Lease |
|
|
709 |
|
|
473 |
|
|
472 |
|
|
— |
|
|
1,654 |
|
|
151 |
|
|
— |
|
|
— |
|
|
1,805 |
|
Bally's Master Lease |
|
|
25,893 |
|
|
— |
|
|
— |
|
|
— |
|
|
25,893 |
|
|
— |
|
|
2,689 |
|
|
— |
|
|
28,582 |
|
Maryland Live! Lease |
|
|
19,078 |
|
|
— |
|
|
— |
|
|
— |
|
|
19,078 |
|
|
— |
|
|
2,160 |
|
|
4,529 |
|
|
25,767 |
|
Pennsylvania Live! Master
Lease |
|
|
12,573 |
|
|
— |
|
|
— |
|
|
— |
|
|
12,573 |
|
|
— |
|
|
311 |
|
|
2,273 |
|
|
15,157 |
|
Casino Queen Master Lease |
|
|
7,905 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,905 |
|
|
38 |
|
|
— |
|
|
— |
|
|
7,943 |
|
Tropicana Las Vegas Lease |
|
|
— |
|
|
2,678 |
|
|
— |
|
|
— |
|
|
2,678 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,678 |
|
Rockford Lease |
|
|
— |
|
|
2,000 |
|
|
— |
|
|
— |
|
|
2,000 |
|
|
— |
|
|
— |
|
|
498 |
|
|
2,498 |
|
Rockford Loan |
|
|
— |
|
|
— |
|
|
— |
|
|
1,077 |
|
|
1,077 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,077 |
|
Tioga Lease |
|
|
2,212 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,212 |
|
|
— |
|
|
1 |
|
|
584 |
|
|
2,797 |
|
Total |
|
$ |
282,658 |
|
$ |
43,386 |
|
$ |
16,614 |
|
$ |
1,077 |
|
$ |
343,735 |
|
$ |
15,790 |
|
$ |
8,555 |
|
$ |
7,884 |
|
$ |
375,964 |
|
(1) Includes $0.1 million of tenant improvement
allowance amortization.
|
Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, and AFFO
to Adjusted EBITDA |
Gaming and Leisure Properties, Inc. and Subsidiaries |
CONSOLIDATED |
(in thousands, except per share and share data) (unaudited) |
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Net
income |
|
$ |
179,526 |
|
|
$ |
188,670 |
|
Gains from dispositions of
property, net of tax |
|
|
— |
|
|
|
— |
|
Real estate depreciation |
|
|
64,877 |
|
|
|
65,084 |
|
Funds from
operations |
|
$ |
244,403 |
|
|
$ |
253,754 |
|
Straight-line rent
adjustments (1) |
|
|
(15,790 |
) |
|
|
(8,752 |
) |
Other depreciation |
|
|
483 |
|
|
|
470 |
|
Provision (benefit) for credit
losses, net |
|
|
23,294 |
|
|
|
(5,653 |
) |
Amortization of land
rights |
|
|
3,276 |
|
|
|
3,290 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
|
2,684 |
|
|
|
2,501 |
|
Stock based compensation |
|
|
8,122 |
|
|
|
7,807 |
|
Losses on debt
extinguishment |
|
|
— |
|
|
|
556 |
|
Accretion on investment in
leases, financing receivables |
|
|
(7,884 |
) |
|
|
(5,444 |
) |
Non-cash adjustment to
financing lease liabilities |
|
|
117 |
|
|
|
109 |
|
Capital maintenance
expenditures (2) |
|
|
(90 |
) |
|
|
(8 |
) |
Adjusted funds from
operations |
|
$ |
258,615 |
|
|
$ |
248,630 |
|
Interest, net (3) |
|
|
76,768 |
|
|
|
76,444 |
|
Income tax expense |
|
|
637 |
|
|
|
518 |
|
Capital maintenance
expenditures (2) |
|
|
90 |
|
|
|
8 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
|
(2,684 |
) |
|
|
(2,501 |
) |
Adjusted
EBITDA |
|
$ |
333,426 |
|
|
$ |
323,099 |
|
|
|
|
|
|
Net income, per
diluted common share and OP units |
|
$ |
0.64 |
|
|
$ |
0.70 |
|
FFO, per diluted
common share and OP units |
|
$ |
0.87 |
|
|
$ |
0.94 |
|
AFFO, per diluted
common share and OP units |
|
$ |
0.92 |
|
|
$ |
0.92 |
|
|
|
|
|
|
Weighted average
number of common shares and OP units outstanding |
|
|
|
|
Diluted common shares |
|
|
272,026,480 |
|
|
|
262,671,762 |
|
OP units |
|
|
7,915,817 |
|
|
|
7,646,956 |
|
Diluted common shares and OP units |
|
|
279,942,297 |
|
|
|
270,318,718 |
|
________________________________(1) Current year
amount includes $0.1 million of tenant improvement allowance
amortization.
(2) 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.
(3) Excludes a non-cash interest expense gross
up related to the ground lease for the Live! Maryland property.
|
Reconciliation of Cash Net Operating Income |
Gaming and Leisure Properties, Inc. and Subsidiaries |
CONSOLIDATED |
(in thousands, except per share and share data) (unaudited) |
|
|
|
Three Months EndedMarch 31, 2024 |
Adjusted EBITDA |
|
$ |
333,426 |
|
General and administrative
expenses |
|
|
17,886 |
|
Stock based compensation |
|
|
(8,122 |
) |
Cash net operating
income (1) |
|
$ |
343,190 |
|
________________________________(1) Cash net
operating income is cash rental income and interest on real estate
loans less cash property level expenses.
|
Gaming and Leisure Properties, Inc. and
Subsidiaries |
Consolidated Balance Sheets |
(in thousands, except share and per share data) |
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
|
Real estate investments, net |
|
$ |
8,103,928 |
|
|
$ |
8,168,792 |
|
Investment in leases, financing receivables, net |
|
|
2,185,707 |
|
|
|
2,023,606 |
|
Real estate loans, net |
|
|
52,307 |
|
|
|
39,036 |
|
Right-of-use assets and land rights, net |
|
|
831,922 |
|
|
|
835,524 |
|
Cash and cash equivalents |
|
|
211,533 |
|
|
|
683,983 |
|
Held to maturity investment securities (1) |
|
|
343,244 |
|
|
|
— |
|
Other assets |
|
|
55,380 |
|
|
|
55,717 |
|
Total
assets |
|
$ |
11,784,021 |
|
|
$ |
11,806,658 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
4,692 |
|
|
$ |
7,011 |
|
Accrued interest |
|
|
87,394 |
|
|
|
83,112 |
|
Accrued salaries and wages |
|
|
1,760 |
|
|
|
7,452 |
|
Operating lease liabilities |
|
|
196,496 |
|
|
|
196,853 |
|
Financing lease liabilities |
|
|
54,378 |
|
|
|
54,261 |
|
Long-term debt, net of unamortized debt issuance costs, bond
premiums and original issuance discounts |
|
|
6,630,196 |
|
|
|
6,627,550 |
|
Deferred rental revenue |
|
|
269,032 |
|
|
|
284,893 |
|
Other liabilities |
|
|
42,256 |
|
|
|
36,572 |
|
Total liabilities |
|
|
7,286,204 |
|
|
|
7,297,704 |
|
|
|
|
|
|
Equity |
|
|
|
|
Preferred stock ($.01 par value, 50,000,000 shares authorized, no
shares issued or outstanding at March 31, 2024 and December 31,
2023) |
|
|
— |
|
|
|
— |
|
Common stock ($.01 par value, 500,000,000 shares authorized,
271,500,584 and 270,922,719 shares issued and outstanding at March
31, 2024 and December 31, 2023, respectively) |
|
|
2,715 |
|
|
|
2,709 |
|
Additional paid-in capital |
|
|
6,054,530 |
|
|
|
6,052,109 |
|
Accumulated deficit |
|
|
(1,930,027 |
) |
|
|
(1,897,913 |
) |
Total equity attributable to Gaming and Leisure Properties |
|
|
4,127,218 |
|
|
|
4,156,905 |
|
Noncontrolling interests in
GLPI's Operating Partnership (8,087,630 units and 7,653,326 units
outstanding at March 31,2024 and December 31, 2023,
respectively) |
|
|
370,599 |
|
|
|
352,049 |
|
Total equity |
|
|
4,497,817 |
|
|
|
4,508,954 |
|
Total liabilities and
equity |
|
$ |
11,784,021 |
|
|
$ |
11,806,658 |
|
(1) Represents zero coupon treasury bill that at
maturity in August 2024 will total $350 million.
Debt Capitalization
The Company’s debt structure as of
March 31, 2024 was as follows:
|
|
|
|
|
|
|
|
Years to Maturity |
|
Interest Rate |
|
Balance |
|
|
|
|
|
|
|
(in thousands) |
Unsecured $1,750 Million Revolver Due May 2026 |
|
2.1 |
|
|
— |
% |
|
— |
|
Term Loan Credit Facility due
September 2027 |
|
3.4 |
|
|
6.719 |
% |
|
600,000 |
|
Senior Unsecured Notes Due
September 2024 |
|
0.4 |
|
|
3.350 |
% |
|
400,000 |
|
Senior Unsecured Notes Due
June 2025 |
|
1.2 |
|
|
5.250 |
% |
|
850,000 |
|
Senior Unsecured Notes Due
April 2026 |
|
2.0 |
|
|
5.375 |
% |
|
975,000 |
|
Senior Unsecured Notes Due
June 2028 |
|
4.2 |
|
|
5.750 |
% |
|
500,000 |
|
Senior Unsecured Notes Due
January 2029 |
|
4.8 |
|
|
5.300 |
% |
|
750,000 |
|
Senior Unsecured Notes Due
January 2030 |
|
5.8 |
|
|
4.000 |
% |
|
700,000 |
|
Senior Unsecured Notes Due
January 2031 |
|
6.8 |
|
|
4.000 |
% |
|
700,000 |
|
Senior Unsecured Notes Due
January 2032 |
|
7.8 |
|
|
3.250 |
% |
|
800,000 |
|
Senior Unsecured Notes Due
December 2033 |
|
9.7 |
|
|
6.750 |
% |
|
400,000 |
|
Other |
|
2.4 |
|
|
4.780 |
% |
|
396 |
|
Total long-term
debt |
|
|
|
|
|
|
6,675,396 |
|
Less: unamortized debt
issuance costs, bond premiums and original issuance discounts |
|
|
|
|
|
|
(45,200 |
) |
Total long-term debt,
net of unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
|
|
|
6,630,196 |
|
Weighted
average |
|
4.5 |
|
|
4.917 |
% |
|
|
|
|
|
|
|
|
|
|
Rating Agency – 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 |
Tioga Downs |
Nichols, NY |
2/6/2024 |
American Racing |
Hard Rock Casino Rockford |
Rockford, IL |
8/29/2023 |
815 ENT Lessee (1) |
(1) Managed by a subsidiary of 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 |
BYD 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% |
Coverage ratio at December 31,
2023 (5) |
1.98 |
2.25 |
1.98 |
2.12 |
2.71 |
2.10 |
2.23 |
2.33 |
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 |
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) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of December 31, 2023. Due to the recent additions
to the Casino Queen Master Lease the coverage ratio is 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 BYD |
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 |
Tioga Downs Lease operated by American Racing |
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 |
2/6/2024 |
8/29/2023 |
Lease Expiration Date |
04/30/2026 |
10/31/2033 |
10/31/2040 |
12/31/2060 |
9/25/2072 |
2/28/2054 |
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) |
32 years and 10 months (2 x 10 years, 1 x 12 years and 10
months) |
None |
Corporate Guarantee |
No |
Yes |
Yes |
No |
Yes |
Yes |
No |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage |
1.4 |
1.2 |
N/A |
1.4 |
1.4 |
1.4 |
1.4 |
Competitive Radius Landlord
Protection |
Yes |
Yes |
N/A |
Yes |
Yes |
Yes |
Yes |
Escalator
Details |
|
|
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
1.25% (1) |
1.5% (2) |
1.75% |
(3) |
1.75% (4) |
2% |
Coverage ratio at December 31,
2023 (5) |
3.77 |
2.28 |
N/A |
3.52 |
N/A |
N/A |
N/A |
Minimum Escalator Coverage
Governor |
1.8 |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Yearly Anniversary for
Realization |
May |
October |
December |
January |
October |
March |
September |
Percentage Rent Reset
Details |
|
|
|
|
|
|
|
Reset Frequency |
2 years |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Next Reset |
May 2024 |
N/A |
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) 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) Increases by 1.75% beginning with the
first anniversary which increases to 2% beginning in year fifteen
of the lease through the remainder of the initial term.
(5) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of December 31, 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
expectations regarding continued growth and dividend increases,
GLPI's expectation that it will continue to deliver strong capital
returns and yields for its shareholders, GLPI's expectations
regarding its partnership with American Racing, 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 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 |
investorinquiries@glpropinc.com |
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