- Closes Acquisition of Bally's Casino
Tunica and Resorts Casino Tunica Real Estate Assets for $82.9
million -- Establishes 2017 Third Quarter Guidance
and Revises Full Year Guidance -- Declares 2017
Third Quarter Dividend of $0.63 per Common Share -
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) (the
“Company”), the first gaming-focused real estate investment trust
(“REIT”) in North America, today announced results for
the quarter ended June 30, 2017.
Financial Highlights
| |
|
Three Months Ended June 30, |
|
(in millions, except per share data) |
|
2017Actual |
|
2017Guidance (1) |
|
2016Actual |
| Net
Revenue |
|
$ |
243.4 |
|
|
$ |
243.5 |
|
|
$ |
207.4 |
|
| Net
Income |
|
$ |
96.3 |
|
|
$ |
95.7 |
|
|
$ |
73.3 |
|
| Funds From
Operations (2) |
|
$ |
121.4 |
|
|
$ |
121.0 |
|
|
$ |
96.9 |
|
| Adjusted Funds
From Operations (3) |
|
$ |
167.8 |
|
|
$ |
166.8 |
|
|
$ |
135.1 |
|
| Adjusted EBITDA
(4) |
|
$ |
222.2 |
|
|
$ |
221.1 |
|
|
$ |
180.4 |
|
| |
|
|
|
|
|
|
| Net income, per
diluted common share |
|
$ |
0.45 |
|
|
$ |
0.45 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The guidance figures in the tables above present
the guidance provided on April 27, 2017, for the three months
ended June 30, 2017.
(2) Funds from operations (“FFO”) is net income,
excluding (gains) or losses from sales of property and real estate
depreciation as defined by NAREIT.
(3) Adjusted funds from operations (“AFFO”) is FFO,
excluding stock based compensation expense, debt issuance costs
amortization, other depreciation, amortization of land rights,
straight-line rent adjustments and direct financing lease
adjustments, reduced by capital maintenance expenditures.
(4) Adjusted EBITDA is net income excluding
interest, taxes on income, depreciation, (gains) or losses from
sales of property, stock based compensation expense, straight-line
rent adjustments, direct financing lease adjustments and the
amortization of land rights.
Chief Executive Officer, Peter M. Carlino, commented, “Our
business model promotes stability through long-term master leases
with large fixed components and highly respected operators with
market-leading assets. With this structure, as demonstrated
by our second quarter results, we are able to consistently deliver
reliable cash flow for our investors. For the quarter, Adjusted
EBITDA exceeded guidance primarily as the result of solid
performance at our TRS Properties, Hollywood Casino Baton Rouge and
Hollywood Casino Perryville, as well as incremental rent from
Hollywood Casino Toledo, which is managed by Penn National Gaming,
Inc. (NASDAQ:PENN).”
Mr. Carlino continued, “On May 1, 2017, we completed the
acquisition of the Bally’s Casino Tunica and Resorts Casino Tunica
(“Tunica Properties”) for $82.9 million. These assets were
added to the master lease with PENN and will generate $9.0 million
of incremental annual rent. The accretive Tunica Properties
acquisition along with the addition of an annual $5.8 million
escalator on the Pinnacle Entertainment, Inc. (NASDAQ:PNK) master
lease resulted in our Board deciding to increase our quarterly
dividend to $0.63 per share. Our quarterly dividend has grown
at a compounded annual rate of 6.6% in the last three years, with
five dividend increases during that period.”
“Additionally during the quarter, we completed funding the
equity portion of The Meadows Casino and Tunica Properties
acquisitions through our existing ATM program. GLPI sold
3,864,872 shares of common stock with an average price of $36.22.
This equity transaction demonstrates our focus on accretive growth
while responsively managing our balance sheet for long-term
stability and potential future acquisitions.”
The Company’s second quarter 2017 net income,
AFFO and Adjusted EBIDA as compared to its guidance were primarily
impacted by the following:
- Income from rental activities had a favorable variance of $0.4
million, primarily due to incremental rent from Hollywood Casino
Toledo;
- Results from the TRS Properties were favorable to guidance by
$0.5 million due to higher performance; and
- Finalization of the Tunica Properties transaction.
Portfolio Update
GLPI owns over 4,400 acres of land and approximately 15 million
square feet of building space, which was 100% occupied as of
June 30, 2017. At the end of the second quarter of 2017, the
Company owned the real estate associated with 38 casino facilities
and leases 20 of these facilities to PENN, 15 of these facilities
to PNK and one to Casino Queen in East St. Louis, Illinois.
Two of the gaming facilities, located in Baton Rouge, Louisiana and
Perryville, Maryland, are owned and operated by a subsidiary of
GLPI, GLP Holdings, Inc., (collectively, the “TRS Properties”).
Capital maintenance expenditures at the TRS Properties were $1.2
million for the three months ended June 30, 2017.
Balance Sheet Update
The Company had $29.5 million of unrestricted cash and $4.5
billion in total debt, including $1.1 billion of debt outstanding
under its unsecured credit facility term loans and $15.0 million
outstanding under its unsecured credit facility revolver at
June 30, 2017. The Company’s debt structure as of
June 30, 2017 was as follows:
| |
|
As of June 30, 2017 |
| |
|
Interest Rate |
|
Balance |
| |
|
|
|
(in thousands) |
| Unsecured Term Loan A
(1) |
|
2.959 |
% |
|
$ |
300,000 |
|
| Unsecured Term Loan A-1
(1) |
|
2.839 |
% |
|
825,000 |
|
| Unsecured $700 Million
Revolver (1) |
|
2.976 |
% |
|
15,000 |
|
| Senior Unsecured Notes
Due 2018 |
|
4.375 |
% |
|
550,000 |
|
| Senior Unsecured Notes
Due 2020 |
|
4.875 |
% |
|
1,000,000 |
|
| Senior Unsecured Notes
Due 2021 |
|
4.375 |
% |
|
400,000 |
|
| Senior Unsecured Notes
Due 2023 |
|
5.375 |
% |
|
500,000 |
|
| Senior Unsecured Notes
Due 2026 |
|
5.375 |
% |
|
975,000 |
|
| Capital Lease |
|
4.780 |
% |
|
1,286 |
|
| Total long-term
debt |
|
|
|
$ |
4,566,286 |
|
| Less: unamortized debt
issuance costs |
|
|
|
(44,863 |
) |
| Total long-term
debt, net of unamortized debt issuance costs |
|
|
|
$ |
4,521,423 |
|
|
|
|
|
|
|
|
|
(1) The rate on the term loan facilities and
revolver is Libor plus 1.75%. The Company's revolver and $300.0
million term loan credit facility mature on October 28, 2018 and
the incremental term loan of $825.0 million matures on April 28,
2021.
As of June 30, 2017, the Company had 210,824,182 weighted
average diluted shares outstanding.
Financing
During the three months ended June 30, 2017, GLPI sold 3,864,872
shares of common stock with an average price of $36.22 per share
under its at the market (“ATM”) program, which generated gross
proceeds of $140.0 million (net proceeds of approximately $139.4
million). The Company used the net proceeds from the ATM
Program to pay down the revolver which was utilized to fund the
equity portion of The Meadows Casino acquisition and to fund the
equity portion of the Tunica Properties acquisition.
Dividends
On April 25, 2017, the Company’s Board of Directors
declared the second quarter 2017 dividend. Shareholders of
record on June 16, 2017 received $0.62 per common share, which
was paid on June 30, 2017. On July 25, 2017, the
Company declared its third quarter 2017 dividend of $0.63 per
common share, payable on September 22, 2017 to shareholders of
record on September 8, 2017.
Guidance
The table below sets forth current guidance targets for
financial results for the 2017 third quarter and full year, based
on the following assumptions:
- Reflects the real estate asset acquisition of the Tunica
Properties, which closed on May 1, 2017;
- Reported rental income of approximately $829.8 million for the
year and $209.2 million for the third quarter, consisting of:
| |
|
|
|
|
| (in millions) |
|
Third Quarter |
|
Full Year |
| Cash Rental
Receipts |
|
|
|
|
| PENN |
|
$ |
114.0 |
|
|
$ |
454.0 |
|
| PNK |
|
102.8 |
|
|
406.3 |
|
| Casino Queen |
|
3.6 |
|
|
14.4 |
|
| PENN non-assigned land
lease |
|
(0.7 |
) |
|
(2.9 |
) |
| Total Cash
Rental Receipts |
|
$ |
219.7 |
|
|
$ |
871.8 |
|
| |
|
|
|
|
| Non-Cash
Adjustments |
|
|
|
|
| Straight-line rent |
|
$ |
(16.6 |
) |
|
$ |
(66.0 |
) |
| PNK direct financing
lease |
|
(18.6 |
) |
|
(73.1 |
) |
| Property taxes paid by
tenants |
|
21.6 |
|
|
85.8 |
|
| Land leases paid by
tenants |
|
3.1 |
|
|
11.3 |
|
| Total Rent as
Reported |
|
$ |
209.2 |
|
|
$ |
829.8 |
|
| |
|
|
|
|
|
|
|
|
- Cash rent includes incremental escalator on the PENN building
rent component effective November 1, 2016, which increases 2017
annual rent by $3.8 million, no escalator assumed effective
November 1, 2017;
- Cash rent includes incremental escalator on the PNK building
rent component effective April 28, 2017, which increases 2017
annual rent by $3.9 million;
- Adjusted EBITDA from the TRS Properties of approximately $37.5
million for the year and $8.6 million for the third quarter;
- Blended income tax rate at the TRS Properties of 44%;
- LIBOR is based on the forward yield curve;
- For the purpose of the dividend calculation, AFFO is reduced by
approximately $3.2 million for the full year and $0.7 million for
the third quarter prior to calculation of the dividend to account
for dividends on shares that will be outstanding after options held
by employees are exercised;
- The basic share count is approximately 210.8 million shares for
the year and 212.5 million shares for the third quarter and the
fully diluted share count is approximately 212.7 million shares for
the year and 214.5 million shares for the third quarter; and
- 2017 year-end total long-term debt to Adjusted EBITDA ratio of
approximately 5.1 times, which includes an $80 million repayment of
debt during the remainder of 2017 (of which $60 million occurred in
July).
| |
|
|
|
|
| |
|
Three Months Ended September 30, |
|
Full Year Ending December 31, |
|
(in millions, except per share data) |
|
2017Guidance |
|
2016Actual |
|
Revised 2017 Guidance |
|
Prior 2017 Guidance
(4) |
|
2016 Actual |
| Net
Revenue |
|
$ |
243.5 |
|
|
$ |
233.3 |
|
|
$ |
971.5 |
|
|
$ |
971.3 |
|
|
$ |
828.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net
Income |
|
$ |
95.9 |
|
|
$ |
89.6 |
|
|
$ |
381.4 |
|
|
$ |
381.1 |
|
|
$ |
289.3 |
|
| Losses or (gains) from
dispositions of property |
|
— |
|
|
(0.4 |
) |
|
0.1 |
|
|
0.1 |
|
|
(0.5 |
) |
| Real estate
depreciation |
|
25.3 |
|
|
23.8 |
|
|
100.6 |
|
|
101.4 |
|
|
96.1 |
|
| Funds From
Operations (1) |
|
$ |
121.2 |
|
|
$ |
113.0 |
|
|
$ |
482.1 |
|
|
$ |
482.6 |
|
|
$ |
384.9 |
|
| Straight-line rent
adjustments |
|
16.6 |
|
|
14.5 |
|
|
66.0 |
|
|
65.0 |
|
|
58.7 |
|
| Direct financing lease
adjustments |
|
18.6 |
|
|
18.0 |
|
|
73.1 |
|
|
73.1 |
|
|
48.5 |
|
| Other depreciation |
|
3.4 |
|
|
3.4 |
|
|
13.0 |
|
|
13.0 |
|
|
13.5 |
|
| Amortization of land
rights |
|
2.7 |
|
|
2.3 |
|
|
10.3 |
|
|
9.3 |
|
|
6.2 |
|
| Debt issuance costs
amortization |
|
3.3 |
|
|
3.3 |
|
|
13.0 |
|
|
13.0 |
|
|
15.1 |
|
| Stock based
compensation |
|
3.7 |
|
|
4.6 |
|
|
15.6 |
|
|
15.6 |
|
|
18.3 |
|
| Maintenance CAPEX |
|
(0.9 |
) |
|
(0.5 |
) |
|
(3.6 |
) |
|
(3.6 |
) |
|
(3.1 |
) |
| Adjusted Funds
From Operations (2) |
|
$ |
168.6 |
|
|
$ |
158.6 |
|
|
$ |
669.5 |
|
|
$ |
668.0 |
|
|
$ |
542.1 |
|
| Interest, net |
|
53.9 |
|
|
52.4 |
|
|
215.6 |
|
|
216.3 |
|
|
183.8 |
|
| Income tax expense |
|
1.7 |
|
|
1.3 |
|
|
7.9 |
|
|
7.6 |
|
|
7.5 |
|
| Maintenance CAPEX |
|
0.9 |
|
|
0.5 |
|
|
3.6 |
|
|
3.6 |
|
|
3.1 |
|
| Debt issuance costs
amortization |
|
(3.3 |
) |
|
(3.3 |
) |
|
(13.0 |
) |
|
(13.0 |
) |
|
(15.1 |
) |
| Adjusted EBITDA
(3) |
|
$ |
221.8 |
|
|
$ |
209.5 |
|
|
$ |
883.6 |
|
|
$ |
882.5 |
|
|
$ |
721.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Net income, per
diluted common share |
|
$ |
0.45 |
|
|
$ |
0.43 |
|
|
$ |
1.79 |
|
|
$ |
1.80 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) FFO is net income, excluding (gains) or losses from
sales of property and real estate depreciation as defined by
NAREIT.
(2) AFFO is FFO, excluding stock based compensation
expense, debt issuance costs amortization, other depreciation,
amortization of land rights, straight-line rent adjustments and
direct financing lease adjustments, reduced by capital maintenance
expenditures.
(3) Adjusted EBITDA is net income excluding interest,
taxes on income, depreciation, (gains) or losses from sales of
property, stock based compensation expense, straight-line rent
adjustments, direct financing lease adjustments and the
amortization of land rights.
(4) The guidance figures in the tables above present the
guidance provided on April 27, 2017, for the year ended
December 31, 2017.
Conference Call Details
The Company will hold a conference call on July 27, 2017 at
11:00 a.m. (Eastern Time) to discuss its financial results,
current business trends and market conditions.
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 audio software. A replay of the call will also be
available for 90 days on the Company’s website.
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: 13666045The playback can be accessed
through August 3, 2017.
Disclosure Regarding Non-GAAP Financial
Measures
Funds From Operations (“FFO”), Adjusted Funds From Operations
(“AFFO”) and Adjusted EBITDA, 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. The Company
believes FFO, AFFO, and Adjusted EBITDA 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. In addition, in order for the Company to qualify as a REIT,
it must distribute 90% of its REIT taxable income annually.
The Company adjusts AFFO accordingly to provide our investors an
estimate of taxable income for this distribution requirement.
Direct financing lease adjustments represent the portion of cash
rent we receive from tenants that is applied against our lease
receivable and thus not recorded as revenue and the amortization of
land rights represents the non-cash amortization of the value
assigned to the Company's assumed ground leases.
FFO, AFFO and Adjusted EBITDA are non-GAAP financial measures,
that are considered a supplemental measure for the real estate
industry and a supplement to GAAP measures. NAREIT defines FFO
as net income (computed in accordance with generally accepted
accounting principles), excluding (gains) or losses from sales of
property and real estate depreciation. We have defined AFFO
as FFO excluding stock based compensation expense, debt issuance
costs amortization, other depreciation, amortization of land
rights, straight-line rent adjustments and direct financing lease
adjustments, reduced by capital maintenance
expenditures. Finally, we have defined Adjusted EBITDA as net
income excluding interest, taxes on income, depreciation, (gains)
or losses from sales of property, stock based compensation expense,
straight-line rent adjustments, direct financing lease adjustments
and the amortization of land rights.
FFO, AFFO and Adjusted EBITDA are not recognized terms under
GAAP. Because certain companies do not calculate FFO, AFFO,
and Adjusted EBITDA in the same way and certain other companies may
not perform such calculation, those measures as used by other
companies may not be consistent with the way the Company calculates
such measures and should not be considered as alternative measures
of operating profit or net income. The Company’s presentation
of these measures does not replace the presentation of the
Company’s 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. GLPI expects to grow its portfolio by
pursuing opportunities to acquire additional gaming facilities to
lease to gaming operators. GLPI also intends to diversify its
portfolio over time, including by acquiring properties outside the
gaming industry to lease to third parties. GLPI elected to be taxed
as a REIT for United States federal income tax purposes commencing
with the 2014 taxable year and is the first gaming-focused REIT in
North America.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act and
Section 21E of the Securities Exchange Act of 1934, as
amended, including statements regarding our financial outlook for
the third quarter of 2017 and the full 2017 fiscal year and our
expectations regarding future acquisitions and dividend payments.
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 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; GLPI's ability
to maintain its status as a REIT; 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; our ability to access capital
through debt and equity markets in amounts and at rates and costs
acceptable to GLPI, including through GLPI's existing ATM program;
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, 2016, 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.
Additional Information
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended. In connection with the
establishment of its ATM Program, the Company filed with the SEC a
prospectus supplement dated August 9, 2016 to the prospectus
contained in its effective Registration Statement on Form S-3 (No.
333-210423), filed with the SEC on March 28, 2016. This
communication is not a substitute for the filed Registration
Statement/prospectus or any other document that the Company may
file with the SEC or send to its shareholders in connection with
the proposed transactions. INVESTORS AND SECURITY HOLDERS ARE URGED
TO READ THE REGISTRATION STATEMENT AND PROSPECTUS THAT HAVE BEEN
FILED WITH THE SEC AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED
WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY
CONTAIN, OR WILL CONTAIN, IMPORTANT INFORMATION. You may obtain
free copies of the registration statement/prospectus and other
relevant documents filed by the Company with the SEC at the SEC’s
website at www.sec.gov. Copies of the documents filed with the SEC
by the Company are available free of charge on the Company’s
investor relations website at investors.glpropinc.com or by
contacting the Company’s investor relations representative at (203)
682-8211.
Contact
Investor Relations – Gaming and Leisure
Properties, Inc.
Bill CliffordT: 610-401-2900Email:
Bclifford@glpropinc.com
Hayes CroushoreT: 610-378-8396Email:
Hcroushore@glpropinc.com
| |
| GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
| Consolidated Statements of
Operations |
| (in thousands, except per share data) (unaudited) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Revenues |
|
|
|
|
|
|
|
| Rental
income |
$ |
167,763 |
|
|
$ |
142,101 |
|
|
$ |
332,924 |
|
|
$ |
242,316 |
|
| Income
from direct financing lease |
18,516 |
|
|
12,631 |
|
|
36,340 |
|
|
12,631 |
|
| Real
estate taxes paid by tenants |
20,840 |
|
|
15,673 |
|
|
42,560 |
|
|
27,500 |
|
| Total rental revenue
and income from direct financing lease |
207,119 |
|
|
170,405 |
|
|
411,824 |
|
|
282,447 |
|
| Gaming,
food, beverage and other |
37,489 |
|
|
38,371 |
|
|
76,749 |
|
|
76,530 |
|
| Total revenues |
244,608 |
|
|
208,776 |
|
|
488,573 |
|
|
358,977 |
|
| Less
promotional allowances |
(1,217 |
) |
|
(1,415 |
) |
|
(2,469 |
) |
|
(2,796 |
) |
| Net revenues |
243,391 |
|
|
207,361 |
|
|
486,104 |
|
|
356,181 |
|
| Operating
expenses |
|
|
|
|
|
|
|
| Gaming,
food, beverage and other |
20,669 |
|
|
21,189 |
|
|
41,745 |
|
|
42,176 |
|
| Real
estate taxes |
20,912 |
|
|
16,075 |
|
|
43,055 |
|
|
28,282 |
|
| General
and administrative |
20,691 |
|
|
22,261 |
|
|
41,922 |
|
|
43,167 |
|
|
Depreciation |
28,423 |
|
|
27,019 |
|
|
56,680 |
|
|
54,102 |
|
| Total operating
expenses |
90,695 |
|
|
86,544 |
|
|
183,402 |
|
|
167,727 |
|
| Income from
operations |
152,696 |
|
|
120,817 |
|
|
302,702 |
|
|
188,454 |
|
| |
|
|
|
|
|
|
|
| Other income
(expenses) |
|
|
|
|
|
|
|
| Interest
expense |
(54,657 |
) |
|
(45,936 |
) |
|
(108,606 |
) |
|
(79,337 |
) |
| Interest
income |
487 |
|
|
654 |
|
|
951 |
|
|
1,171 |
|
| Total other
expenses |
(54,170 |
) |
|
(45,282 |
) |
|
(107,655 |
) |
|
(78,166 |
) |
| |
|
|
|
|
|
|
|
| Income from
operations before income taxes |
98,526 |
|
|
75,535 |
|
|
195,047 |
|
|
110,288 |
|
| Income tax
expense |
2,192 |
|
|
2,271 |
|
|
4,722 |
|
|
4,275 |
|
| Net
income |
$ |
96,334 |
|
|
$ |
73,264 |
|
|
$ |
190,325 |
|
|
$ |
106,013 |
|
| |
|
|
|
|
|
|
|
| Earnings per
common share: |
|
|
|
|
|
|
|
| Basic earnings per
common share |
$ |
0.46 |
|
|
$ |
0.40 |
|
|
$ |
0.91 |
|
|
$ |
0.70 |
|
| Diluted earnings per
common share |
$ |
0.45 |
|
|
$ |
0.39 |
|
|
$ |
0.90 |
|
|
$ |
0.69 |
|
| GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
| Operations |
| (in thousands) (unaudited) |
| |
|
|
|
| |
NET REVENUES |
|
ADJUSTED EBITDA |
| |
Three Months Ended June 30, |
|
Three Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Real estate |
$ |
207,119 |
|
|
$ |
170,405 |
|
|
$ |
212,114 |
|
|
$ |
170,356 |
|
| GLP Holdings, LLC.
(TRS) |
36,272 |
|
|
36,956 |
|
|
10,081 |
|
|
10,093 |
|
|
Total |
$ |
243,391 |
|
|
$ |
207,361 |
|
|
$ |
222,195 |
|
|
$ |
180,449 |
|
| |
|
|
|
|
|
|
|
| |
NET REVENUES |
|
ADJUSTED EBITDA |
| |
Six Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Real estate |
$ |
411,824 |
|
|
$ |
282,447 |
|
|
$ |
420,224 |
|
|
$ |
273,866 |
|
| GLP Holdings, LLC.
(TRS) |
74,280 |
|
|
73,734 |
|
|
20,991 |
|
|
19,816 |
|
|
Total |
$ |
486,104 |
|
|
$ |
356,181 |
|
|
$ |
441,215 |
|
|
$ |
293,682 |
|
| GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIES |
| General and Administrative
Expenses |
| (in thousands) (unaudited) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Real estate general and
administrative expenses (1) (2) |
$ |
15,233 |
|
|
$ |
16,962 |
|
|
$ |
30,734 |
|
|
$ |
32,190 |
|
| GLP Holdings, LLC.
(TRS) general and administrative expenses (2) |
5,458 |
|
|
5,299 |
|
|
11,188 |
|
|
10,977 |
|
|
Total |
$ |
20,691 |
|
|
$ |
22,261 |
|
|
$ |
41,922 |
|
|
$ |
43,167 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes REIT expenses such as rent expense and
amortization of land rights of $6.0 million and $11.2 million for
the three and six months ended June 30, 2017, respectively,
and $3.8 million and $4.5 million for the three and six months
ended June 30, 2016, respectively.
(2) General and administrative expenses include payroll
related expenses, insurance, utilities, professional fees, rent
expense, amortization of land rights and other administrative
costs.
| 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) (unaudited) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Net
income |
$ |
96,334 |
|
|
$ |
73,264 |
|
|
$ |
190,325 |
|
|
$ |
106,013 |
|
| (Gains) or losses from
dispositions of property |
(11 |
) |
|
— |
|
|
94 |
|
|
(15 |
) |
| Real estate
depreciation |
25,108 |
|
|
23,671 |
|
|
50,011 |
|
|
47,362 |
|
| Funds from
operations |
$ |
121,431 |
|
|
$ |
96,935 |
|
|
$ |
240,430 |
|
|
$ |
153,360 |
|
| Straight-line rent
adjustments |
16,493 |
|
|
13,956 |
|
|
32,738 |
|
|
27,912 |
|
| Direct financing lease
adjustments |
18,232 |
|
|
12,525 |
|
|
35,845 |
|
|
12,525 |
|
| Other depreciation
(1) |
3,315 |
|
|
3,348 |
|
|
6,669 |
|
|
6,740 |
|
| Amortization of land
rights |
2,589 |
|
|
1,541 |
|
|
4,900 |
|
|
1,541 |
|
| Debt issuance costs
amortization |
3,256 |
|
|
3,050 |
|
|
6,513 |
|
|
8,632 |
|
| Stock based
compensation |
3,773 |
|
|
4,591 |
|
|
8,256 |
|
|
9,163 |
|
| Maintenance CAPEX
(2) |
(1,245 |
) |
|
(835 |
) |
|
(1,727 |
) |
|
(1,197 |
) |
| Adjusted funds
from operations |
$ |
167,844 |
|
|
$ |
135,111 |
|
|
$ |
333,624 |
|
|
$ |
218,676 |
|
| Interest, net |
54,170 |
|
|
45,282 |
|
|
107,655 |
|
|
78,166 |
|
| Income tax expense |
2,192 |
|
|
2,271 |
|
|
4,722 |
|
|
4,275 |
|
| Maintenance CAPEX
(2) |
1,245 |
|
|
835 |
|
|
1,727 |
|
|
1,197 |
|
| Debt issuance costs
amortization |
(3,256 |
) |
|
(3,050 |
) |
|
(6,513 |
) |
|
(8,632 |
) |
| Adjusted
EBITDA |
$ |
222,195 |
|
|
$ |
180,449 |
|
|
$ |
441,215 |
|
|
$ |
293,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other depreciation includes both real estate and
equipment depreciation from the Company's taxable REIT subsidiaries
as well as equipment depreciation from the REIT subsidiaries.
(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.
| Reconciliation of Net income (GAAP) to FFO, FFO to
AFFO, and AFFO to Adjusted EBITDA |
| Gaming and Leisure Properties, Inc. and
Subsidiaries |
| REAL ESTATE and CORPORATE (REIT) |
| (in thousands) (unaudited) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Net
income |
$ |
93,590 |
|
|
$ |
70,654 |
|
|
$ |
184,369 |
|
|
$ |
100,755 |
|
| (Gains) or losses from
dispositions of property |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Real estate
depreciation |
25,108 |
|
|
23,671 |
|
|
50,011 |
|
|
47,362 |
|
| Funds from
operations |
$ |
118,698 |
|
|
$ |
94,325 |
|
|
$ |
234,380 |
|
|
$ |
148,117 |
|
| Straight-line rent
adjustments |
16,493 |
|
|
13,956 |
|
|
32,738 |
|
|
27,912 |
|
| Direct financing lease
adjustments |
18,232 |
|
|
12,525 |
|
|
35,845 |
|
|
12,525 |
|
| Other depreciation
(1) |
518 |
|
|
526 |
|
|
1,039 |
|
|
1,047 |
|
| Amortization of land
rights |
2,589 |
|
|
1,541 |
|
|
4,900 |
|
|
1,541 |
|
| Debt issuance costs
amortization |
3,256 |
|
|
3,050 |
|
|
6,513 |
|
|
8,632 |
|
| Stock based
compensation |
3,773 |
|
|
4,591 |
|
|
8,256 |
|
|
9,163 |
|
| Maintenance CAPEX |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Adjusted funds
from operations |
$ |
163,559 |
|
|
$ |
130,514 |
|
|
$ |
323,671 |
|
|
$ |
208,937 |
|
| Interest, net (2) |
51,569 |
|
|
42,682 |
|
|
102,454 |
|
|
72,965 |
|
| Income tax expense |
242 |
|
|
210 |
|
|
612 |
|
|
596 |
|
| Maintenance CAPEX |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Debt issuance costs
amortization |
(3,256 |
) |
|
(3,050 |
) |
|
(6,513 |
) |
|
(8,632 |
) |
| Adjusted
EBITDA |
$ |
212,114 |
|
|
$ |
170,356 |
|
|
$ |
420,224 |
|
|
$ |
273,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other depreciation includes equipment depreciation
from the Company's REIT subsidiaries as well as equipment
depreciation from the REIT subsidiaries.
(2) Interest expense, net is net of intercompany
interest eliminations of $2.6 million and $5.2 million for both the
three and six months ended June 30, 2017 and 2016,
respectively.
| Reconciliation of Net income (GAAP) to FFO, FFO to
AFFO, and AFFO to Adjusted EBITDA |
| Gaming and Leisure Properties, Inc. and
Subsidiaries |
| GLP HOLDINGS, LLC (TRS) |
| (in thousands) (unaudited) |
| |
|
|
|
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Net
income |
$ |
2,744 |
|
|
$ |
2,610 |
|
|
$ |
5,956 |
|
|
$ |
5,258 |
|
| (Gains) or losses from
dispositions of property |
(11 |
) |
|
— |
|
|
94 |
|
|
(15 |
) |
| Real estate
depreciation |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Funds from
operations |
$ |
2,733 |
|
|
$ |
2,610 |
|
|
$ |
6,050 |
|
|
$ |
5,243 |
|
| Straight-line rent
adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Direct financing lease
adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Other depreciation
(1) |
2,797 |
|
|
2,822 |
|
|
5,630 |
|
|
5,693 |
|
| Amortization of land
rights |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Debt issuance costs
amortization |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Stock based
compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Maintenance CAPEX
(2) |
(1,245 |
) |
|
(835 |
) |
|
(1,727 |
) |
|
(1,197 |
) |
| Adjusted funds
from operations |
$ |
4,285 |
|
|
$ |
4,597 |
|
|
$ |
9,953 |
|
|
$ |
9,739 |
|
| Interest, net |
2,601 |
|
|
2,600 |
|
|
5,201 |
|
|
5,201 |
|
| Income tax expense |
1,950 |
|
|
2,061 |
|
|
4,110 |
|
|
3,679 |
|
| Maintenance CAPEX
(2) |
1,245 |
|
|
835 |
|
|
1,727 |
|
|
1,197 |
|
| Debt issuance costs
amortization |
— |
|
|
— |
|
|
— |
|
|
— |
|
| Adjusted
EBITDA |
$ |
10,081 |
|
|
$ |
10,093 |
|
|
$ |
20,991 |
|
|
$ |
19,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other depreciation includes both real estate and
equipment depreciation from the Company's taxable REIT subsidiaries
as well as equipment depreciation from the REIT subsidiaries.
(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.
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