Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or
the “Company”) today announced financial results for
the quarter ended September 30, 2024.
Financial Highlights
| |
|
Three Months Ended September 30, |
|
(in millions, except per share data) |
|
2024 |
|
2023 |
|
Total Revenue |
|
$ |
385.3 |
|
$ |
359.6 |
| Income from
Operations |
|
$ |
271.4 |
|
$ |
268.3 |
| Net
Income |
|
$ |
190.1 |
|
$ |
189.3 |
| FFO (1)
(4) |
|
$ |
250.6 |
|
$ |
254.4 |
| AFFO (2)
(4) |
|
$ |
268.2 |
|
$ |
251.2 |
| Adjusted
EBITDA (3) (4) |
|
$ |
346.4 |
|
$ |
327.1 |
| Net income, per
diluted common share and OP units (4) |
|
$ |
0.67 |
|
$ |
0.70 |
| FFO, per diluted
common share and OP units (4) |
|
$ |
0.89 |
|
$ |
0.94 |
| AFFO, per diluted
common share and OP units (4) |
|
$ |
0.95 |
|
$ |
0.92 |
| |
|
|
|
|
|
|
______________________________________
(1) Funds from Operations ("FFO") is net
income, excluding (gains) or losses from dispositions of property
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; capitalized interest; property transfer tax
recoveries and impairment charges; straight-line rent and deferred
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; stock based
compensation expense, straight-line rent and deferred 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 expansion and growth momentum
continues unabated with strong third quarter financial results
reflecting the consistent performance of our legacy tenant
portfolio and the addition of two additional tenants earlier this
year. During the quarter we also set the course for continued
mid- and long-term growth through the actualization of several
significant accretive transactions with Bally's which we expect
will benefit comparisons in the fourth quarter and beyond. Third
quarter total revenue rose 7.1% year over year to $385.3 million
and AFFO grew 6.8%, highlighting the measured growth of our
property portfolio, rent escalations and our discipline around
liquidity and our capital structure. With our opportunistic
approach to portfolio expansion, the proven long-term resiliency of
our tenants’ revenue streams, and attractive rent coverage ratios
across our portfolio, we expect to continue to deliver strong
capital returns and yields for our shareholders. Reflecting these
factors, our third quarter 2024 dividend of $0.76 per share
increased from $0.73 per share in the year-ago period and $0.705 in
2022.
“Early in the third quarter we announced a
$1.585 billion transaction with Bally’s Corporation (“Bally’s”)
that reflects our proven, value enhancing strategy of working with
our tenants to structure transactions that efficiently create and
fund growth opportunities. Together with Bally’s, our teams
structured a series of innovative, multi-faceted transactions that
are expected to deliver an 8.3% blended initial cash yield to GLPI
with conservative rent coverage. Through these transactions, GLPI
adds three more assets to our existing portfolio with the addition
of Bally’s Kansas City Casino and Bally’s Shreveport Casino &
Hotel, and the exciting greenfield development of Bally’s permanent
facility in Chicago. Last month, we completed the $250 million
acquisition of the land on which Bally’s Chicago casino will be
constructed. With our acquisition of the Chicago land, the
prior lease was assumed by an affiliate of GLPI and amended to
reflect annual rent of $20 million, representing an initial cash
yield of 8.0%. Inclusive of the land, GLPI will own
substantially all of the real estate and improvements related to
the Chicago casino and hotel for a total investment of $1.19
billion, resulting in a blended initial cash investment yield of
8.4% with stabilized rent coverage for the lease expected to be in
the range of 2.0x to 2.4x. The completion of the Chicago land
purchase is a significant milestone toward the development of
Bally’s Chicago, which is expected to be a must-visit destination
casino resort in the heart of Chicago. We are delighted to be
working with the Bally’s team, the host community and various local
stakeholders to deliver a world-class entertainment center in the
nation’s third largest metropolitan area. Our early July agreements
with Bally’s also favorably amended the terms of our option to
acquire Bally’s Lincoln by the end of 2026, providing added
visibility for another possible accretive growth driver.
“This month, Bally’s oversaw the first stage of
the important redevelopment of our blue chip 35-acre site on the
Las Vegas Strip with the demolition of the Tropicana. This is a
historic first step in bringing Major League Baseball’s Athletics
to Las Vegas through the development of a new 30,000-seat stadium
surrounded by an integrated casino resort facility.
“Our disciplined capital investment approach and
relationships with the industry’s leading operators 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. Our
investment activity in 2024 of nearly $2 billion at an attractive
blended yield of 8.4% is a firm affirmation of GLPI's disciplined
capital investment approach. The combination of our unrivaled
gaming and real estate industry expertise and strong balance sheet
has positioned GLPI as a development funding and real estate
partner of choice for operators of all sizes and has created a
platform for near- and long-term growth and the appreciation of
shareholder value.”
Recent Developments
- On September 11, 2024, the Company completed its previously
announced $250 million acquisition of the land on which Bally's
(NYSE: BALY) permanent Chicago Casino will be constructed.
With the completion of the land purchase, annual rent of $20
million, representing an initial cash yield of 8.0% is now being
received.
- In September 2024, the Company entered into a $110 million
delayed draw term loan facility with the Ione Band of Miwok Indians
("Ione") (the "Ione Loan") to provide the tribe funding for a new
casino development near Sacramento, California. Ione has an
option at the end of the Ione Loan term to satisfy the loan
obligation by converting the outstanding principal into a long-term
lease with an initial term of twenty-five (25) years and a maximum
term of forty-five (45) years. These agreements were entered
into subsequent to receiving a declination letter from the National
Indian Gaming Commission approving the transaction documents,
including the long-term lease. As of September 30, 2024,
$13.7 million was advanced and outstanding under the Ione Loan
which has a 5-year term and an interest rate of 11%.
- In late August 2024, the Company's development project in
Rockford, Illinois was completed. As of September 30,
2024, the entire $150 million loan commitment has been funded which
accrues interest at 10%.
- The Company entered into forward sale agreements to sell
8,170,387 shares for a net sales price of $409.3 million. No
amounts have been or will be recorded on the Company's balance
sheet with respect to these forward sale agreements until
settlement.
- On August 6, 2024, the Company issued $1.2 billion in Senior
Unsecured Notes ("Notes"). The Notes were issued in two
tranches; the first was a 5.625%, $800 million note that will
mature on September 15, 2034 and was priced at 99.094% of par value
and the second was a 6.250%, $400 million note that will mature on
September 15, 2054 and was priced at 99.183% of par
value.
- On July 12, 2024, the Company announced that it entered into a
binding term sheet with Bally’s pursuant to which the Company
intends to acquire the real property assets of Bally’s Kansas City
Casino and Bally’s Shreveport Casino & Hotel as well as the
land under Bally’s planned permanent Chicago casino site, and fund
the construction of certain real property improvements of the
Bally's Chicago Casino Resort, for aggregate consideration of
approximately $1.585 billion. In aggregate, the transaction
represents a blended 8.3% initial cash yield. Further, the Company
secured adjustments to the purchase price and related cap rate
related to the existing, previously announced, contingent purchase
option for Bally’s Lincoln facility, as well as the addition of a
right for GLPI to call the asset beginning in October 2026. The
updated purchase price for Bally’s Lincoln is $735 million at an
8.0% cap rate.
- On June 3, 2024, the Company announced an agreement to fund and
oversee a landside move and hotel renovation of the Belle of Baton
Rouge ("The Belle") in Baton Rouge, LA for its tenant The Queen
Casino and Entertainment Inc. ("Casino Queen"). The Company
has committed to provide up to approximately $111 million of
funding for the project ($15 million of which has been funded as of
September 30, 2024), which is expected to be completed by
September 2025. The casino will continue to operate except
while gaming equipment is being moved to the new facility.
The Company will own the new facility and Casino Queen will pay an
incremental rental yield of 9.0% on the development funding
beginning a year from the initial disbursement of funds, which
occurred on May 30, 2024.
- On May 16, 2024, the Company acquired the real estate assets of
the Silverado Franklin Hotel & Gaming Complex, the Deadwood
Mountain Grand casino, and Baldini's Casino, for $105.0
million. Simultaneous with the acquisition, GLPI and
affiliates of Strategic Gaming Management, LLC ("Strategic")
entered into two cross-defaulted triple-net lease agreements, each
for an initial 25-year term with two ten-year renewal
periods. The Company also provided $5 million in capital
improvement proceeds at the closing of the transactions for capital
improvements for a total investment of $110 million. The
initial aggregate annual cash rent for the new leases is $9.2
million, inclusive of capital improvement funding, and rent is
subject to a fixed 2.0% annual escalation beginning in year three
of the lease and a CPI based annual escalation beginning in year 11
of the lease, of the greater of 2.0% or CPI capped at
2.5%.
- 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, an
affiliate of 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.
Dividends
On August 28, 2024, the Company announced that
its Board of Directors declared a third quarter dividend of $0.76
per share on the Company's common stock that was paid on September
27, 2024, to shareholders of record on September 13,
2024.
2024 Guidance
The Company's AFFO guidance for the full year
2024 is 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 other than anticipated fundings on current development
projects.
- The guidance assumes there will be no material changes in
applicable legislation, regulatory environment, world events,
including weather, public health, 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 $1.055 billion and $1.058
billion, or between $3.74 and $3.76 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 subject to ASC 326,
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
September 30, 2024, GLPI's portfolio consisted of interests in
66 gaming and related facilities, including, the real property
associated with 34 gaming and related facilities operated by PENN
Entertainment, Inc. (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") and 1 facility under
development for Bally's in Chicago, Illinois, 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, 3 gaming and related
facilities operated by Strategic and 1 facility managed by a
subsidiary of Hard Rock International ("Hard Rock"). These
facilities are geographically diversified across 20 states and
contain approximately 29.3 million square feet of improvements.
Conference Call Details
The Company will hold a conference call on
October 25, 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: 13749226The
playback can be accessed through Friday, November 1, 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
SUBSIDIARIES |
|
Consolidated Statements of Operations |
|
(in thousands, except per share data) (unaudited) |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| Revenues |
|
|
|
|
|
|
|
|
Rental income |
$ |
333,244 |
|
|
$ |
321,206 |
|
|
$ |
996,641 |
|
|
$ |
958,410 |
|
|
Income from investment in leases, financing receivables |
|
47,503 |
|
|
|
38,332 |
|
|
|
137,782 |
|
|
|
112,931 |
|
|
Income from sales-type leases |
|
1,240 |
|
|
|
— |
|
|
|
1,240 |
|
|
|
— |
|
|
Interest income from real estate loans |
|
3,354 |
|
|
|
22 |
|
|
|
6,268 |
|
|
|
22 |
|
| Total income from real
estate |
|
385,341 |
|
|
|
359,560 |
|
|
|
1,141,931 |
|
|
|
1,071,363 |
|
| |
|
|
|
|
|
|
|
| Operating
expenses |
|
|
|
|
|
|
|
|
Land rights and ground lease expense |
|
11,758 |
|
|
|
12,406 |
|
|
|
35,446 |
|
|
|
36,312 |
|
|
General and administrative |
|
13,472 |
|
|
|
13,600 |
|
|
|
45,209 |
|
|
|
42,689 |
|
|
Gains from dispositions of property |
|
(3,790 |
) |
|
|
(22 |
) |
|
|
(3,790 |
) |
|
|
(22 |
) |
|
Property transfer tax recovery |
|
— |
|
|
|
(2,187 |
) |
|
|
— |
|
|
|
(2,187 |
) |
|
Depreciation |
|
64,771 |
|
|
|
65,846 |
|
|
|
195,393 |
|
|
|
197,131 |
|
| Provision for credit losses,
net |
|
27,686 |
|
|
|
1,613 |
|
|
|
47,194 |
|
|
|
24,012 |
|
| Total operating expenses |
|
113,897 |
|
|
|
91,256 |
|
|
|
319,452 |
|
|
|
297,935 |
|
| Income from operations |
|
271,444 |
|
|
|
268,304 |
|
|
|
822,479 |
|
|
|
773,428 |
|
| |
|
|
|
|
|
|
|
| Other income
(expenses) |
|
|
|
|
|
|
|
|
Interest expense |
|
(95,705 |
) |
|
|
(79,788 |
) |
|
|
(269,050 |
) |
|
|
(240,519 |
) |
|
Interest income |
|
14,876 |
|
|
|
1,273 |
|
|
|
32,173 |
|
|
|
6,801 |
|
|
Losses on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(556 |
) |
| Total other expenses |
|
(80,829 |
) |
|
|
(78,515 |
) |
|
|
(236,877 |
) |
|
|
(234,274 |
) |
| |
|
|
|
|
|
|
|
| Income before income
taxes |
|
190,615 |
|
|
|
189,789 |
|
|
|
585,602 |
|
|
|
539,154 |
|
| Income tax expense |
|
515 |
|
|
|
482 |
|
|
|
1,564 |
|
|
|
1,040 |
|
| Net
income |
$ |
190,100 |
|
|
$ |
189,307 |
|
|
$ |
584,038 |
|
|
$ |
538,114 |
|
| Net income attributable to
non-controlling interest in the Operating Partnership |
|
(5,406 |
) |
|
|
(5,297 |
) |
|
$ |
(16,630 |
) |
|
|
(15,123 |
) |
| Net income
attributable to common shareholders |
$ |
184,694 |
|
|
$ |
184,010 |
|
|
$ |
567,408 |
|
|
$ |
522,991 |
|
| |
|
|
|
|
|
|
|
| Earnings per common
share: |
|
|
|
|
|
|
|
| Basic earnings attributable to
common shareholders |
$ |
0.67 |
|
|
$ |
0.70 |
|
|
$ |
2.08 |
|
|
$ |
1.99 |
|
| Diluted earnings attributable
to common shareholders |
$ |
0.67 |
|
|
$ |
0.70 |
|
|
$ |
2.08 |
|
|
$ |
1.99 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
|
Current Year Revenue Detail |
|
(in thousands) (unaudited) |
|
|
|
Three Months Ended September 30, 2024 |
Buildingbase rent |
Land baserent |
Percentagerent andotherrentalrevenue |
Interestincome onreal estateloans |
Total cashincome |
Straight-linerent anddeferredrentadjustments |
Groundrent inrevenue |
Accretiononfinancingleases |
Totalincomefrom realestate |
|
Amended PENN Master Lease |
$ |
53,089 |
$ |
10,758 |
$ |
6,543 |
|
$ |
— |
$ |
70,390 |
$ |
4,952 |
|
$ |
499 |
$ |
— |
$ |
75,841 |
| PENN 2023 Master Lease |
|
58,913 |
|
— |
|
(132 |
) |
|
— |
|
58,781 |
|
5,621 |
|
|
— |
|
— |
|
64,402 |
| Amended Pinnacle Master
Lease |
|
61,482 |
|
17,814 |
|
8,122 |
|
|
— |
|
87,418 |
|
1,858 |
|
|
2,045 |
|
— |
|
91,321 |
| PENN Morgantown Lease |
|
— |
|
785 |
|
— |
|
|
— |
|
785 |
|
— |
|
|
— |
|
— |
|
785 |
| Caesars Master Lease |
|
16,022 |
|
5,932 |
|
— |
|
|
— |
|
21,954 |
|
2,197 |
|
|
330 |
|
— |
|
24,481 |
| Horseshoe St. Louis Lease |
|
5,918 |
|
— |
|
— |
|
|
— |
|
5,918 |
|
399 |
|
|
— |
|
— |
|
6,317 |
| Boyd Master Lease |
|
20,469 |
|
2,946 |
|
3,047 |
|
|
— |
|
26,462 |
|
574 |
|
|
432 |
|
— |
|
27,468 |
| Boyd Belterra Lease |
|
724 |
|
474 |
|
500 |
|
|
— |
|
1,698 |
|
151 |
|
|
— |
|
— |
|
1,849 |
| Bally's Master Lease |
|
26,410 |
|
— |
|
— |
|
|
— |
|
26,410 |
|
— |
|
|
2,667 |
|
— |
|
29,077 |
| Maryland Live! Lease |
|
19,078 |
|
— |
|
— |
|
|
— |
|
19,078 |
|
— |
|
|
2,179 |
|
3,482 |
|
24,739 |
| Pennsylvania Live! Master
Lease |
|
12,718 |
|
— |
|
— |
|
|
— |
|
12,718 |
|
— |
|
|
302 |
|
2,221 |
|
15,241 |
| Casino Queen Master Lease |
|
7,912 |
|
— |
|
— |
|
|
— |
|
7,912 |
|
41 |
|
|
— |
|
— |
|
7,953 |
| Tropicana Las Vegas Lease |
|
— |
|
3,070 |
|
— |
|
|
— |
|
3,070 |
|
— |
|
|
— |
|
— |
|
3,070 |
| Rockford Lease |
|
— |
|
2,013 |
|
— |
|
|
— |
|
2,013 |
|
— |
|
|
— |
|
509 |
|
2,522 |
| Rockford Loan |
|
— |
|
— |
|
— |
|
|
3,308 |
|
3,308 |
|
— |
|
|
— |
|
— |
|
3,308 |
| Tioga Lease |
|
3,632 |
|
— |
|
— |
|
|
— |
|
3,632 |
|
— |
|
|
2 |
|
587 |
|
4,221 |
| Strategic Gaming Leases |
|
2,300 |
|
— |
|
— |
|
|
— |
|
2,300 |
|
— |
|
|
106 |
|
294 |
|
2,700 |
| Ione Loan |
|
— |
|
— |
|
— |
|
|
46 |
|
46 |
|
— |
|
|
— |
|
— |
|
46 |
| Bally's Chicago Lease |
|
— |
|
1,111 |
|
— |
|
|
— |
|
1,111 |
|
(1,111 |
) |
|
— |
|
— |
|
— |
| Total |
$ |
288,667 |
$ |
44,903 |
$ |
18,080 |
|
$ |
3,354 |
$ |
355,004 |
$ |
14,682 |
|
$ |
8,562 |
$ |
7,093 |
$ |
385,341 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes $0.1 million of tenant
improvement allowance amortization for the three months ended
September 30, 2024.
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
|
Current Year Revenue Detail |
|
(in thousands) (unaudited) |
| |
| Nine Months Ended
September 30, 2024 |
Buildingbase rent |
Land baserent |
Percentagerent andotherrentalrevenue |
Interestincome onreal estateloans |
Total cashincome |
Straight-linerent anddeferredrentadjustments
(2) |
Groundrent inrevenue |
Accretiononfinancingleases |
Totalincomefrom realestate |
|
Amended PENN Master Lease |
$ |
159,269 |
$ |
32,276 |
$ |
19,562 |
|
$ |
— |
$ |
211,107 |
$ |
14,856 |
|
$ |
1,680 |
$ |
— |
$ |
227,643 |
| PENN 2023 Master Lease |
|
176,739 |
|
— |
|
(354 |
) |
|
— |
|
176,385 |
|
16,864 |
|
|
— |
|
— |
|
193,249 |
| Amended Pinnacle Master
Lease |
|
182,840 |
|
53,442 |
|
23,088 |
|
|
— |
|
259,370 |
|
5,574 |
|
|
6,163 |
|
— |
|
271,107 |
| PENN Morgantown Lease |
|
— |
|
2,353 |
|
— |
|
|
— |
|
2,353 |
|
— |
|
|
— |
|
— |
|
2,353 |
| Caesars Master Lease |
|
48,065 |
|
17,796 |
|
— |
|
|
— |
|
65,861 |
|
6,589 |
|
|
990 |
|
— |
|
73,440 |
| Horseshoe St. Louis Lease |
|
17,753 |
|
— |
|
— |
|
|
— |
|
17,753 |
|
1,196 |
|
|
— |
|
— |
|
18,949 |
| Boyd Master Lease |
|
60,873 |
|
8,839 |
|
8,499 |
|
|
— |
|
78,211 |
|
1,722 |
|
|
1,297 |
|
— |
|
81,230 |
| Boyd Belterra Lease |
|
2,152 |
|
1,421 |
|
1,463 |
|
|
— |
|
5,036 |
|
454 |
|
|
— |
|
— |
|
5,490 |
| Bally's Master Lease |
|
78,357 |
|
— |
|
— |
|
|
— |
|
78,357 |
|
— |
|
|
7,998 |
|
— |
|
86,355 |
| Maryland Live! Lease |
|
57,234 |
|
— |
|
— |
|
|
— |
|
57,234 |
|
— |
|
|
6,545 |
|
11,433 |
|
75,212 |
| Pennsylvania Live! Master
Lease |
|
38,010 |
|
— |
|
— |
|
|
— |
|
38,010 |
|
— |
|
|
933 |
|
6,668 |
|
45,611 |
| Casino Queen Master Lease |
|
23,721 |
|
— |
|
— |
|
|
— |
|
23,721 |
|
118 |
|
|
— |
|
— |
|
23,839 |
| Tropicana Las Vegas Lease |
|
— |
|
8,425 |
|
— |
|
|
— |
|
8,425 |
|
— |
|
|
— |
|
— |
|
8,425 |
| Rockford Lease |
|
— |
|
6,013 |
|
— |
|
|
— |
|
6,013 |
|
— |
|
|
— |
|
1,518 |
|
7,531 |
| Rockford Loan |
|
— |
|
— |
|
— |
|
|
6,222 |
|
6,222 |
|
— |
|
|
— |
|
— |
|
6,222 |
| Tioga Lease |
|
9,475 |
|
— |
|
— |
|
|
— |
|
9,475 |
|
— |
|
|
4 |
|
1,744 |
|
11,223 |
| Strategic Gaming Leases |
|
3,475 |
|
— |
|
— |
|
|
— |
|
3,475 |
|
— |
|
|
141 |
|
390 |
|
4,006 |
| Ione Loan |
|
— |
|
— |
|
— |
|
|
46 |
|
46 |
|
— |
|
|
— |
|
— |
|
46 |
| Bally's Chicago Lease |
|
— |
|
1,111 |
|
— |
|
|
— |
|
1,111 |
|
(1,111 |
) |
|
— |
|
— |
|
— |
| Total |
$ |
857,963 |
$ |
131,676 |
$ |
52,258 |
|
$ |
6,268 |
$ |
1,048,165 |
$ |
46,262 |
|
$ |
25,751 |
$ |
21,753 |
$ |
1,141,931 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Includes $0.2 million of tenant
improvement allowance amortization for the nine months ended
September 30, 2024.
|
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 September 30, |
|
Nine Months Ended September 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income |
$ |
190,100 |
|
|
$ |
189,307 |
|
|
$ |
584,038 |
|
|
$ |
538,114 |
|
| Gains from dispositions of
property |
|
(3,790 |
) |
|
|
(22 |
) |
|
|
(3,790 |
) |
|
|
(22 |
) |
| Real estate depreciation |
|
64,289 |
|
|
|
65,155 |
|
|
|
193,943 |
|
|
|
195,494 |
|
| Funds from
operations |
$ |
250,599 |
|
|
$ |
254,440 |
|
|
$ |
774,191 |
|
|
$ |
733,586 |
|
| Straight-line rent and
deferred rent adjustments (1) |
|
(14,682 |
) |
|
|
(8,942 |
) |
|
|
(46,262 |
) |
|
|
(26,445 |
) |
| Other depreciation |
|
482 |
|
|
|
691 |
|
|
|
1,450 |
|
|
|
1,637 |
|
| Provision (benefit) for credit
losses, net |
|
27,686 |
|
|
|
1,613 |
|
|
|
47,194 |
|
|
|
24,012 |
|
| Amortization of land
rights |
|
3,276 |
|
|
|
3,699 |
|
|
|
9,828 |
|
|
|
10,278 |
|
| Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
2,803 |
|
|
|
2,406 |
|
|
|
8,172 |
|
|
|
7,312 |
|
| Stock based compensation |
|
5,463 |
|
|
|
5,139 |
|
|
|
19,010 |
|
|
|
17,959 |
|
| Capitalized interest |
|
(857 |
) |
|
|
— |
|
|
|
(857 |
) |
|
|
— |
|
| Property transfer tax
recovery |
|
— |
|
|
|
(2,187 |
) |
|
|
— |
|
|
|
(2,187 |
) |
| Losses on debt
extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
556 |
|
| Accretion on investment in
leases, financing receivables |
|
(7,093 |
) |
|
|
(5,813 |
) |
|
|
(21,753 |
) |
|
|
(16,806 |
) |
| Non-cash adjustment to
financing lease liabilities |
|
112 |
|
|
|
122 |
|
|
|
358 |
|
|
|
347 |
|
| Capital maintenance
expenditures (2) |
|
453 |
|
|
|
(17 |
) |
|
|
(99 |
) |
|
|
(25 |
) |
| Adjusted funds from
operations |
$ |
268,242 |
|
|
$ |
251,151 |
|
|
$ |
791,232 |
|
|
$ |
750,224 |
|
| Interest, net (3) |
|
80,047 |
|
|
|
77,835 |
|
|
|
234,697 |
|
|
|
231,707 |
|
| Income tax expense |
|
515 |
|
|
|
482 |
|
|
|
1,564 |
|
|
|
1,040 |
|
| Capital maintenance
expenditures (2) |
|
(453 |
) |
|
|
17 |
|
|
|
99 |
|
|
|
25 |
|
| Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
(2,803 |
) |
|
|
(2,406 |
) |
|
|
(8,172 |
) |
|
|
(7,312 |
) |
| Capitalized interest |
|
857 |
|
|
|
— |
|
|
|
857 |
|
|
|
— |
|
| Adjusted
EBITDA |
$ |
346,405 |
|
|
$ |
327,079 |
|
|
$ |
1,020,277 |
|
|
$ |
975,684 |
|
| |
|
|
|
|
|
|
|
| Net income, per
diluted common share and OP units |
$ |
0.67 |
|
|
$ |
0.70 |
|
|
$ |
2.08 |
|
|
$ |
1.99 |
|
| FFO, per diluted
common share and OP units |
$ |
0.89 |
|
|
$ |
0.94 |
|
|
$ |
2.76 |
|
|
$ |
2.71 |
|
| AFFO, per diluted
common share and OP units |
$ |
0.95 |
|
|
$ |
0.92 |
|
|
$ |
2.82 |
|
|
$ |
2.77 |
|
| |
|
|
|
|
|
|
|
| Weighted average
number of common shares and OP units outstanding |
|
|
|
|
|
|
|
|
Diluted common shares |
|
274,798,368 |
|
|
|
264,207,465 |
|
|
|
272,851,372 |
|
|
|
263,425,023 |
|
|
OP units |
|
8,087,630 |
|
|
|
7,653,326 |
|
|
|
8,030,568 |
|
|
|
7,651,226 |
|
|
Diluted common shares and OP units |
|
282,885,998 |
|
|
|
271,860,791 |
|
|
|
280,881,940 |
|
|
|
271,076,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________________
(1) The three and nine months periods ended
September 30, 2024 include $0.1 million and $0.2 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 certain ground leases.
|
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 Ended September 30, 2024 |
|
Nine Months Ended September 30, 2024 |
|
Adjusted EBITDA |
$ |
346,405 |
|
|
$ |
1,020,277 |
|
| General and administrative
expenses |
|
13,472 |
|
|
|
45,209 |
|
| Stock based compensation |
|
(5,463 |
) |
|
|
(19,010 |
) |
| Cash net operating
income (1) |
$ |
354,414 |
|
|
$ |
1,046,476 |
|
| |
|
|
|
|
|
|
|
______________________________________
(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) |
| |
| |
| |
September 30, 2024 |
|
December 31, 2023 |
| Assets |
|
|
|
|
Real estate investments, net |
$ |
8,014,976 |
|
|
$ |
8,168,792 |
|
|
Investment in leases, financing receivables, net |
|
2,313,775 |
|
|
|
2,023,606 |
|
|
Investment in leases, sales-type, net |
|
257,207 |
|
|
|
— |
|
|
Real estate loans, net |
|
158,854 |
|
|
|
39,036 |
|
|
Right-of-use assets and land rights, net |
|
825,367 |
|
|
|
835,524 |
|
|
Cash and cash equivalents |
|
494,135 |
|
|
|
683,983 |
|
|
Held to maturity investment securities (1) |
|
554,106 |
|
|
|
— |
|
|
Other assets |
|
62,577 |
|
|
|
55,717 |
|
| Total
assets |
$ |
12,680,997 |
|
|
$ |
11,806,658 |
|
| |
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable and accrued expenses |
$ |
5,488 |
|
|
$ |
7,011 |
|
|
Accrued interest |
|
95,657 |
|
|
|
83,112 |
|
|
Accrued salaries and wages |
|
5,174 |
|
|
|
7,452 |
|
|
Operating lease liabilities |
|
196,432 |
|
|
|
196,853 |
|
|
Financing lease liabilities |
|
60,673 |
|
|
|
54,261 |
|
|
Long-term debt, net of unamortized debt issuance costs, bond
premiums and original issuance discounts |
|
7,413,012 |
|
|
|
6,627,550 |
|
|
Deferred rental revenue |
|
238,419 |
|
|
|
284,893 |
|
|
Other liabilities |
|
41,390 |
|
|
|
36,572 |
|
|
Total liabilities |
|
8,056,245 |
|
|
|
7,297,704 |
|
| |
|
|
|
| Equity |
|
|
|
|
Preferred stock ($.01 par value, 50,000,000 shares authorized, no
shares issued or outstanding at September 30, 2024 and December 31,
2023) |
|
— |
|
|
|
— |
|
|
Common stock ($.01 par value, 500,000,000 shares authorized,
274,391,553 and 270,922,719 shares issued and outstanding at
September 30, 2024 and December 31, 2023, respectively) |
|
2,744 |
|
|
|
2,709 |
|
|
Additional paid-in capital |
|
6,204,578 |
|
|
|
6,052,109 |
|
|
Accumulated deficit |
|
(1,952,445 |
) |
|
|
(1,897,913 |
) |
|
Total equity attributable to Gaming and Leisure Properties |
|
4,254,877 |
|
|
|
4,156,905 |
|
| Noncontrolling interests in
GLPI's Operating Partnership 8,087,630 units and 7,653,326 units
outstanding at September 30, 2024 and December 31, 2023,
respectively) |
|
369,875 |
|
|
|
352,049 |
|
|
Total equity |
|
4,624,752 |
|
|
|
4,508,954 |
|
| Total liabilities and
equity |
$ |
12,680,997 |
|
|
$ |
11,806,658 |
|
| |
|
|
|
|
|
|
|
(1) Represents zero coupon treasury bill that at maturity
in January 2025 will total $563 million.
Debt Capitalization
The Company’s debt structure as of September 30, 2024 was
as follows:
| |
|
|
| |
Years to Maturity |
Interest Rate |
|
Balance |
| |
|
|
|
(in thousands) |
|
Unsecured $1,750 Million Revolver Due May 2026 |
1.6 |
—% |
|
— |
|
| Term Loan Credit Facility due
September 2027 |
2.9 |
6.497% |
|
600,000 |
|
| Senior Unsecured Notes Due
June 2025 |
0.7 |
5.250% |
|
850,000 |
|
| Senior Unsecured Notes Due
April 2026 |
1.5 |
5.375% |
|
975,000 |
|
| Senior Unsecured Notes Due
June 2028 |
3.7 |
5.750% |
|
500,000 |
|
| Senior Unsecured Notes Due
January 2029 |
4.3 |
5.300% |
|
750,000 |
|
| Senior Unsecured Notes Due
January 2030 |
5.3 |
4.000% |
|
700,000 |
|
| Senior Unsecured Notes Due
January 2031 |
6.3 |
4.000% |
|
700,000 |
|
| Senior Unsecured Notes Due
January 2032 |
7.3 |
3.250% |
|
800,000 |
|
| Senior Unsecured Notes Due
December 2033 |
9.2 |
6.750% |
|
400,000 |
|
| Senior Unsecured Notes Due
September 2034 |
10.0 |
5.625% |
|
800,000 |
|
| Senior Unsecured Notes Due
September 2054 |
30.0 |
6.250% |
|
400,000 |
|
| Other |
1.9 |
4.780% |
|
317 |
|
| Total long-term
debt |
|
|
|
7,475,317 |
|
| Less: unamortized debt
issuance costs, bond premiums and original issuance discounts |
|
|
|
(62,305 |
) |
| Total long-term debt,
net of unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
7,413,012 |
|
| Weighted
average |
6.2 |
5.131% |
|
|
| |
|
|
|
|
______________________________________
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 |
| Strategic Gaming
Leases (3 Properties)(1) |
|
|
|
| Silverado Franklin Hotel &
Gaming Complex |
Deadwood, SD |
5/16/2024 |
Strategic |
| Deadwood Mountain Grand
Casino |
Deadwood, SD |
5/16/2024 |
Strategic |
| Baldini's Casino |
Sparks, NV |
5/16/2024 |
Strategic |
| 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(2) |
| Bally's Chicago
Development |
Chicago, IL |
9/11/2024 |
BALY |
|
(1) Represents two cross-defaulted, co-terminus leases |
|
|
|
|
(2) 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 |
| Property Count |
7 |
14 |
12 |
5 |
3 |
| Number of States
Represented |
5 |
9 |
8 |
4 |
2 |
| Commencement Date |
1/1/2023 |
11/1/2013 |
4/28/2016 |
10/1/2018 |
10/15/2018 |
| Lease Expiration Date |
10/31/2033 |
10/31/2033 |
4/30/2031 |
9/30/2038 |
04/30/2026 |
| Remaining Renewal Terms |
15 (3x5 years) |
15 (3x5 years) |
20 (4x5 years) |
20 (4x5 years) |
25 (5x5 years) |
| Corporate Guarantee |
Yes |
Yes |
Yes |
Yes |
No |
| Master Lease with Cross
Collateralization |
Yes |
Yes |
Yes |
Yes |
Yes |
| Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
| Default Adjusted Revenue to
Rent Coverage |
1.1 |
1.1 |
1.2 |
1.2 |
1.4 |
| Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
| Escalator
Details |
|
|
|
|
|
| Yearly Base Rent Escalator
Maximum |
1.5% (1) |
2% |
2% |
1.75% (2) |
2% |
| Coverage ratio at June 30,
2024 (3) |
1.94 |
2.19 |
1.90 |
1.97 |
2.59 |
| Minimum Escalator Coverage
Governor |
N/A |
1.8 |
1.8 |
N/A |
1.8 |
| Yearly Anniversary for
Realization |
November |
November |
May |
October |
May |
| Percentage Rent Reset
Details |
|
|
|
|
|
| Reset Frequency |
N/A |
5 years |
2 years |
N/A |
2 years |
| Next Reset |
N/A |
November 2028 |
May 2026 |
N/A |
May 2026 |
| |
|
|
|
|
|
(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) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of June 30, 2024. GLPI has not
independently verified the accuracy of the tenants' information and
therefore makes no representation as to its accuracy.
Lease Information
| |
Master Leases |
|
|
Bally's Master Lease |
Casino Queen Master Lease |
Pennsylvania Live! Master Lease operated by
Cordish |
Strategic Gaming Lease (1) |
| Property Count |
8 |
4 |
2 |
3 |
| Number of States
Represented |
6 |
3 |
1 |
2 |
| Commencement Date |
6/3/2021 |
12/17/2021 |
3/1/2022 |
5/16/2024 |
| Lease Expiration Date |
06/02/2036 |
12/31/2036 |
2/28/2061 |
5/31/2049 |
| Remaining Renewal Terms |
20 (4x5 years) |
20 (4x5 years) |
21 (1 x 11 years, 1 x 10 years) |
20 (2x10 years) |
| Corporate Guarantee |
Yes |
Yes |
No |
Yes |
| Master Lease with Cross
Collateralization |
Yes |
Yes |
Yes |
Yes |
| Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
| Default Adjusted Revenue to
Rent Coverage |
1.2 |
1.4 |
1.4 |
1.4 (4) |
| Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
| Escalator
Details |
|
|
|
|
| Yearly Base Rent Escalator
Maximum |
(2) |
(3) |
1.75% |
2% (4) |
| Coverage ratio at June 30,
2024 (5) |
2.08 |
2.24 |
2.32 |
N/A |
| Minimum Escalator Coverage
Governor |
N/A |
N/A |
N/A |
N/A |
| Yearly Anniversary for
Realization |
June |
December |
March |
June 2026 |
| Percentage Rent Reset
Details |
|
|
|
|
| Reset Frequency |
N/A |
N/A |
N/A |
N/A |
| Next Reset |
N/A |
N/A |
N/A |
N/A |
| |
|
|
|
|
(1) Consists of two leases that are cross collateralized
and co-terminus with each other.
(2) 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.
(3) 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.
(4) The default adjusted revenue to rent
coverage declines to 1.25 if the tenant's adjusted revenues total
$75 million or more. Annual rent escalates at 2% beginning in
year three of the lease and in year 11 escalates based on the
greater of 2% or CPI, capped at
2.5%.
(5) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of June 30, 2024. 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 ParkLease operatedby BYD |
Horseshoe St.Louis Leaseoperated byCZR |
MorgantownGround Leaseoperated byPENN |
Live! Casino &HotelMarylandoperated
byCordish |
| Commencement Date |
10/15/2018 |
9/29/2020 |
10/1/2020 |
12/29/2021 |
| Lease Expiration Date |
04/30/2026 |
10/31/2033 |
10/31/2040 |
12/31/2060 |
| Remaining Renewal Terms |
25 (5x5 years) |
20 (4x5 years) |
30 (6x5 years) |
21 (1 x 11 years, 1 x 10 years) |
| Corporate Guarantee |
No |
Yes |
Yes |
No |
| Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
| Default Adjusted Revenue to
Rent Coverage |
1.4 |
1.2 |
N/A |
1.4 |
| Competitive Radius Landlord
Protection |
Yes |
Yes |
N/A |
Yes |
| Escalator
Details |
|
|
|
|
| Yearly Base Rent Escalator
Maximum |
2% |
1.25% (1) |
1.5% (2) |
1.75% |
| Coverage ratio at June 30,
2024 (3) |
3.50 |
2.15 |
N/A |
3.52 |
| Minimum Escalator Coverage
Governor |
1.8 |
N/A |
N/A |
N/A |
| Yearly Anniversary for
Realization |
May |
October |
December |
January |
| Percentage Rent Reset
Details |
|
|
|
|
| Reset Frequency |
2 years |
N/A |
N/A |
N/A |
| Next Reset |
May 2026 |
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) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of June 30, 2024. GLPI has not independently
verified the accuracy of the tenants' information and therefore
makes no representation as to its accuracy.
Lease Information
|
|
|
|
|
|
| |
Tropicana Las Vegas Ground Lease operated by
BALY |
Tioga Downs Lease operated by American Racing |
Hard Rock Rockford Ground Lease managed by Hard
Rock |
Chicago Ground Lease with BALY |
| Commencement Date |
9/26/2022 |
2/6/2024 |
8/29/2023 |
9/11/2024 |
| Lease Expiration Date |
9/25/2072 |
2/28/2054 |
8/31/2122 |
11/30/2121 (4) |
| Remaining Renewal Terms |
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 |
(4) |
| Corporate Guarantee |
Yes |
Yes |
No |
(4) |
| Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
(4) |
| Default Adjusted Revenue to
Rent Coverage |
1.4 |
1.4 |
1.4 |
(4) |
| Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
(4) |
| Escalator
Details |
|
|
|
|
| Yearly Base Rent Escalator
Maximum |
(1) |
1.75% (2) |
2% |
(4) |
| Coverage ratio at June 30,
2024 (3) |
N/A |
N/A |
N/A |
N/A |
| Minimum Escalator Coverage
Governor |
N/A |
N/A |
N/A |
N/A |
| Yearly Anniversary for
Realization |
October |
March |
September |
(4) |
| Percentage Rent Reset
Details |
|
|
|
|
| Reset Frequency |
N/A |
N/A |
N/A |
N/A |
| Next Reset |
N/A |
N/A |
N/A |
N/A |
| |
|
|
|
|
(1) 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.
(2) Increases by 1.75% beginning with the
first anniversary and increases to 2% beginning in year fifteen of
the lease through the remainder of the initial term.
(3) Information with respect to our
tenants' rent coverage over the trailing twelve months was provided
by our tenants as of June 30, 2024. GLPI has not independently
verified the accuracy of the tenants' information and therefore
makes no representation as to its accuracy.
(4) The Company is currently in the process
of amending and restating the lease to have an initial lease term
of 15 years followed by multiple renewal extensions to be agreed
upon between Bally's and the Company. The lease is also
anticipated to have lease terms generally consistent with the terms
of the Bally's Master Lease with respect to the other provisions
mentioned above.
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 and deferred 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 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 and deferred rent
adjustments, losses on debt extinguishment, capitalized interest,
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,
stock based compensation expense, straight-line rent and deferred
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 stock based compensation
expense.
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 announced
transactions, including the cash and rental yields. 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: the impact that higher inflation and
interest rates and uncertainty with respect to the future state of
the economy could have on discretionary consumer spending,
including the casino operations of our tenants; unforeseen
consequences related to U.S. government monetary policies and
stimulus packages on inflation rates and economic growth; GLPI’s
ability to successfully consummate the announced transactions with
Bally's Corporation (Bally's), including the ability of the parties
to satisfy the various conditions to funding, including receipt of
all required approvals and consents, or other delays or impediments
to completing the proposed transactions; the availability of and
the ability to identify suitable and attractive acquisition and
development opportunities and the ability to acquire and lease the
respective properties on favorable terms; the degree and nature of
GLPI's competition; 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 GLPI's
planned acquisitions or projects; the potential of a new pandemic,
including its effect on the ability or desire of people to gather
in large groups (including in casinos), which could impact GLPI’s
financial results, operations, outlooks, plans, goals, growth, cash
flows, liquidity, and stock price; GLPI's ability to maintain its
status as a REIT, given the highly technical and complex Internal
Revenue Code provisions for which only limited judicial and
administrative authorities exist, where even a technical or
inadvertent violation could jeopardize REIT qualification and where
requirements may depend in part on the actions of third parties
over which GLPI has no control or only limited influence; the
satisfaction of certain asset, income, organizational,
distribution, shareholder ownership and other requirements on a
continuing basis in order for GLPI to maintain its REIT status; the
ability and willingness of GLPI’s tenants and other third parties
to meet and/or perform their obligations under their respective
contractual arrangements with GLPI, including lease and note
requirements and in some cases, their obligations to indemnify,
defend and hold GLPI harmless from and against various claims,
litigation and liabilities; the ability of GLPI’s tenants to
maintain the financial strength and liquidity necessary to satisfy
their respective obligations and liabilities to third parties,
including, without limitation, to satisfy obligations under their
existing credit facilities and other indebtedness; the ability of
GLPI’s tenants to comply with laws, rules and regulations in the
operation of GLPI’s properties, to deliver high quality services,
to attract and retain qualified personnel and to attract customers;
the ability to generate sufficient cash flows to service and comply
with financial covenants under GLPI’s outstanding indebtedness;
GLPI's ability to access capital through debt and equity markets in
amounts and at rates and costs acceptable to GLPI; including for
acquisitions or refinancings due to maturities; adverse changes in
GLPI’s credit rating; the availability of qualified personnel and
GLPI’s ability to retain its key management personnel; changes in
the U.S. tax law and other state, federal or local laws, whether or
not specific to real estate, REITs or to the gaming, lodging or
hospitality industries; changes in accounting standards; the impact
of weather or climate events or conditions, natural disasters, acts
of terrorism and other international hostilities, war (including
the current conflict between Russia and Ukraine and conflicts in
the Middle East) or political instability; the risk that the
historical financial statements included herein do not reflect what
the business, financial position or results of operations of GLPI
may be in the future; other risks inherent in the real estate
business, including potential liability relating to environmental
matters and illiquidity of real estate investments; 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 |
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