- Completes Acquisition Financing
-- Establishes 2018 Fourth Quarter and Revises
Full Year Guidance -- Completes Acquisition of the
Real Estate Assets of Tropicana Entertainment and the Acquisitions
and Lease Modifications to Accommodate the Acquisition of Pinnacle
Entertainment, Inc. by Penn National Gaming,
Inc. in October -
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 September 30, 2018.
Financial Highlights
|
|
|
Three Months Ended
September 30, |
|
(in millions, except per share data) |
|
2018 Actual |
|
2018Guidance (1) |
|
2017Actual |
|
Total Revenue |
|
$ |
254.1 |
|
|
$ |
255.2 |
|
|
$ |
244.5 |
|
Net Income |
|
$ |
104.8 |
|
|
$ |
106.1 |
|
|
$ |
97.0 |
|
Funds From Operations (2) |
|
$ |
129.4 |
|
|
$ |
130.5 |
|
|
$ |
122.7 |
|
Adjusted Funds From Operations (3) |
|
$ |
164.1 |
|
|
$ |
165.1 |
|
|
$ |
170.5 |
|
Adjusted EBITDA (4) |
|
$ |
222.2 |
|
|
$ |
222.8 |
|
|
$ |
223.4 |
|
|
|
|
|
|
|
|
|
Net income, per diluted common share |
|
$ |
0.49 |
|
|
$ |
0.49 |
|
|
$ |
0.45 |
(1) The
guidance figures in the tables above present the guidance provided
on August 1, 2018 for the three months ended
September 30, 2018.
(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, amortization of debt
issuance costs, bond premiums and original issuance discounts,
other depreciation, amortization of land rights, straight-line rent
adjustments, direct financing lease adjustments, losses on debt
extinguishment and retirement costs, 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, the
amortization of land rights, losses on debt extinguishment and
retirement costs.
Chief Executive Officer, Peter M. Carlino, commented, “While our
real estate portfolio continued to perform as expected during the
quarter, we remained focused on the execution of our previously
announced acquisitions. On September 26, 2018 we completed a
very successful $1.1 billion note offering, with the benefit of our
recently achieved investment grade credit rating. On October
1, 2018 we announced the completion of our acquisition of the real
property assets of Tropicana Entertainment Inc. (“Tropicana”) and
on October 15, 2018 we announced the completion of the transactions
related to the acquisition of Pinnacle Entertainment, Inc. (NASDAQ:
PNK) by Penn National Gaming, Inc. (NASDAQ: PENN). In
aggregate these transactions increased our annual real estate
income by approximately $155 million, while expanding and
diversifying our geographic footprint and tenant roster.
These transactions are immediately accretive as demonstrated by our
announcement on October 15, 2018 of our fourth quarter dividend of
$0.68 per common share, which is an 8% increase from the prior
quarter.”
Mr. Carlino continued, “Today we are happy to celebrate the five
year anniversary of our spin from PENN and reflect on our
substantial accomplishments. We have completed transactions
worth approximately $6.8 billion, growing our real estate revenue
by over $580 million annually and increasing our dividend by 31%
since our first quarter as a REIT. In the process our
portfolio has grown from 20 assets in 12 states to 46 assets in 16
states and we have expanded from one tenant to four tenants.
To fund these acquisitions, we have successfully issued
approximately 90 million shares of common stock and completed $3.5
billion in note offerings. Notably, we have achieved all this
with a commitment to accretion and stability. In the next
five years, we anticipate building upon our success with further
opportunities to grow our business and create value for
shareholders.”
The Company's third quarter net income as compared to guidance
was primarily impacted by the following variances:
- Income from rental activities had an unfavorable variance of
$0.5 million, primarily due to performance at PENN's Hollywood
Casino Columbus and Hollywood Casino Toledo; and
- Net interest had an unfavorable variance of $0.5 million as the
Company took advantage of favorable long-term interest rates prior
to closing on its acquisitions.
Portfolio Update
GLPI owns over 4,300 acres of land and approximately 15 million
square feet of building space, which was 100% occupied as of
September 30, 2018. At the end of the third quarter of 2018,
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 for the Company were $1.0
million for the three months ended September 30, 2018.
Balance Sheet Update
The Company had $1,162.8 million of unrestricted cash and $5.4
billion in total debt at September 30, 2018. On
September 26, 2018, the Company issued $1,100.0 million of
notes. The net proceeds from the sale of the notes together
with $386.0 million drawn on its revolver were used during October
2018 to (i) finance GLPI’s acquisition of the real property
assets of Plainridge Park Casino from PENN and its issuance of a
secured mortgage loan to Boyd Gaming Corporation (NYSE: BYD) in
connection with BYD’s acquisition of the real property assets of
Belterra Park Gaming & Entertainment Center, (ii) finance
GLPI’s acquisition of substantially all the real property assets of
five gaming facilities owned by Tropicana and its issuance of a
mortgage loan to Eldorado Resorts, Inc. (NASDAQ: ERI) in connection
with ERI’s acquisition of the real property assets of Lumière
Place, and (iii) pay the estimated transaction fees and
expenses associated with the transactions.
The Company’s debt structure as of September 30, 2018 was
as follows:
|
|
|
As of September 30,
2018 |
|
|
|
Interest Rate |
|
Balance |
|
|
|
|
|
(in thousands) |
|
Unsecured Term Loan A-1 (1) |
|
3.665 |
% |
|
$ |
525,000 |
|
|
Unsecured $1,100 Million Revolver (1) |
|
— |
% |
|
— |
|
|
Senior Unsecured Notes Due 2018 |
|
4.375 |
% |
|
— |
|
|
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 2025 |
|
5.250 |
% |
|
850,000 |
|
|
Senior Unsecured Notes Due 2026 |
|
5.375 |
% |
|
975,000 |
|
|
Senior Unsecured Notes Due 2028 |
|
5.750 |
% |
|
500,000 |
|
|
Senior Unsecured Notes Due 2029 |
|
5.300 |
% |
|
750,000 |
|
|
Capital Lease |
|
4.780 |
% |
|
1,142 |
|
|
Total long-term debt |
|
|
|
$ |
5,501,142 |
|
|
Less: unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
(51,995 |
) |
|
Total long-term debt, net of unamortized debt issuance
costs, bond premiums and original issuance discounts |
|
|
|
$ |
5,449,147 |
|
(1) The
rate on the term loan facility and revolver is LIBOR plus 1.50%.
The Company's revolver matures on May 21, 2023 and the incremental
term loan of $525.0 million matures on April 28, 2021.
As of September 30, 2018, the Company had $213.7 million
remaining for issuance under the ATM Program and had not entered
into any forward sale agreements. No shares were issued under the
ATM Program during the quarter ended September 30, 2018.
As of September 30, 2018, the Company had 214,717,803
weighted average diluted shares outstanding.
Dividends
On July 31, 2018, the Company’s Board of Directors declared
the third quarter 2018 dividend. Shareholders of record on
September 7, 2018 received $0.63 per common share, which was
paid on September 21, 2018. On October 12, 2018,
the Company declared its fourth quarter 2018 dividend of $0.68 per
common share, payable on December 28, 2018 to shareholders of
record on December 14, 2018.
Guidance
The table below sets forth current guidance targets for
financial results for the 2018 fourth quarter and full year, based
on the following assumptions:
- Includes the impact of the transactions closed on October 1,
2018, to acquire the real estate assets of Tropicana and the impact
of the transaction closed on October 15, 2018 with PENN, PNK, and
BYD;
- Reflects estimated accounting treatment of the completed
transactions;
- Reported revenue from real estate of approximately $924.6
million for the year and $274.6 million for the fourth quarter,
consisting of:
| |
|
|
|
|
|
(in millions) |
|
Fourth Quarter |
|
Full Year |
|
Cash Revenue from Real Estate |
|
|
|
|
|
PENN |
|
$ |
189.3 |
|
|
$ |
536.3 |
|
|
PNK |
|
15.6 |
|
|
322.8 |
|
|
ERI |
|
27.5 |
|
|
27.5 |
|
|
BYD |
|
22.2 |
|
|
22.2 |
|
|
Casino Queen |
|
3.6 |
|
|
14.5 |
|
|
PENN non-assigned land lease |
|
(0.7 |
) |
|
(2.8 |
) |
|
Total Cash Revenue from Real Estate |
|
$ |
257.5 |
|
|
$ |
920.5 |
|
|
|
|
|
|
|
|
Non-Cash Adjustments |
|
|
|
|
|
Straight-line rent |
|
$ |
(12.7 |
) |
|
$ |
(61.9 |
) |
|
PNK direct financing lease |
|
(1.2 |
) |
|
(38.4 |
) |
|
Property taxes paid by tenants |
|
25.4 |
|
|
89.4 |
|
|
Land leases paid by tenants |
|
5.6 |
|
|
15.0 |
|
|
Total Revenue from Real Estate as Reported |
|
$ |
274.6 |
|
|
$ |
924.6 |
|
| |
|
|
|
|
|
|
|
|
- Cash revenue from real estate includes incremental escalator on
the PENN building rent component effective November 1, 2018, which
increases 2018 annual rent by $0.9 million;
- Five year variable rent reset on the PENN lease effective
November 1, 2018, which reduces 2018 annual revenue from real
estate by $1.9 million;
- Adjusted EBITDA from the TRS Properties of approximately $32.8
million for the year and $6.3 million for the fourth quarter;
- Blended income tax rate at the TRS Properties of 33%;
- LIBOR is based on the forward yield curve; and
- The basic share count is approximately 213.7 million shares for
the year and 214.0 million shares for the fourth quarter and the
fully diluted share count is approximately 214.8 million shares for
the year and 215.0 million shares for the fourth quarter.
|
|
|
|
|
|
|
|
|
Three Months Ended December
31, |
|
Full Year Ending
December 31, |
|
(in millions, except per share data) |
|
2018Guidance |
|
2017Actual |
|
Revised2018Guidance |
|
Prior 2018Guidance
(4) |
|
2017Actual |
|
Total Revenue |
|
$ |
304.7 |
|
|
$ |
240.7 |
|
|
$ |
1,057.1 |
|
|
$ |
1,018.9 |
|
|
$ |
971.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ |
105.6 |
|
|
$ |
93.3 |
|
|
$ |
399.2 |
|
|
$ |
412.2 |
|
|
$ |
380.6 |
|
|
Losses from dispositions of property |
|
— |
|
|
— |
|
|
0.4 |
|
|
0.2 |
|
|
0.5 |
|
|
Real estate depreciation |
|
50.7 |
|
|
25.3 |
|
|
124.8 |
|
|
98.6 |
|
|
100.6 |
|
|
Funds From Operations (1) |
|
$ |
156.3 |
|
|
$ |
118.6 |
|
|
$ |
524.4 |
|
|
$ |
511.0 |
|
|
$ |
481.7 |
|
|
Straight-line rent adjustments |
|
12.7 |
|
|
16.6 |
|
|
61.9 |
|
|
51.9 |
|
|
66.0 |
|
|
Direct financing lease adjustments |
|
1.2 |
|
|
18.6 |
|
|
38.4 |
|
|
45.2 |
|
|
73.1 |
|
|
Other depreciation |
|
2.9 |
|
|
2.9 |
|
|
11.5 |
|
|
11.5 |
|
|
12.9 |
|
|
Amortization of land rights |
|
3.4 |
|
|
2.7 |
|
|
11.5 |
|
|
10.9 |
|
|
10.4 |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
|
2.9 |
|
|
3.3 |
|
|
12.2 |
|
|
12.1 |
|
|
13.0 |
|
|
Stock based compensation |
|
3.3 |
|
|
3.7 |
|
|
11.2 |
|
|
11.2 |
|
|
15.6 |
|
|
Losses on debt extinguishment |
|
— |
|
|
— |
|
|
3.5 |
|
|
3.5 |
|
|
— |
|
|
Retirement costs |
|
— |
|
|
— |
|
|
13.1 |
|
|
13.1 |
|
|
— |
|
|
Capital maintenance expenditures |
|
(1.3 |
) |
|
(1.0 |
) |
|
(4.2 |
) |
|
(4.3 |
) |
|
(3.2 |
) |
|
Adjusted Funds From Operations (2) |
|
$ |
181.4 |
|
|
$ |
165.4 |
|
|
$ |
683.5 |
|
|
$ |
666.1 |
|
|
$ |
669.5 |
|
|
Interest, net |
|
75.8 |
|
|
53.5 |
|
|
244.5 |
|
|
226.1 |
|
|
215.1 |
|
|
Income tax expense |
|
0.8 |
|
|
3.4 |
|
|
5.0 |
|
|
5.0 |
|
|
9.8 |
|
|
Capital maintenance expenditures |
|
1.3 |
|
|
1.0 |
|
|
4.2 |
|
|
4.3 |
|
|
3.2 |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
|
(2.9 |
) |
|
(3.3 |
) |
|
(12.2 |
) |
|
(12.1 |
) |
|
(13.0 |
) |
|
Adjusted EBITDA (3) |
|
$ |
256.4 |
|
|
$ |
220.0 |
|
|
$ |
925.0 |
|
|
$ |
889.4 |
|
|
$ |
884.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, per diluted common share |
|
$ |
0.49 |
|
|
$ |
0.43 |
|
|
$ |
1.86 |
|
|
$ |
1.92 |
|
|
$ |
1.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, amortization of debt issuance costs, bond premiums and
original issuance discounts, other depreciation, amortization of
land rights, straight-line rent adjustments, direct financing lease
adjustments, losses on debt extinguishment and retirement costs,
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, the
amortization of land rights, losses on debt extinguishment and
retirement costs.
(4) The guidance figures in the tables above present
the guidance provided on August 1, 2018 for the year ended
December 31, 2018.
Conference Call Details
The Company will hold a conference call on November 1, 2018
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: 13683829The playback can be accessed
through November 8, 2018
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, amortization of
debt issuance costs, bond premiums and original issuance discounts,
other depreciation, amortization of land rights, straight-line rent
adjustments, direct financing lease adjustments, losses on debt
extinguishment and retirement costs, 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,
the amortization of land rights, losses on debt extinguishment and
retirement costs.
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 fourth quarter of 2018 and the full 2018 fiscal year; our
expectations regarding future acquisitions, the expected impact of
recently announced acquisitions and expected 2019 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
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 GLPI’s planned 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, including through GLPI's
existing ATM program; 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, 2017, 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 (610)
378-8396.
Contact
Investor Relations – Gaming and Leisure
Properties, Inc.Hayes CroushoreT: 610-378-8396Email:
Hcroushore@glpropinc.com
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESConsolidated Statements of
Operations(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenues |
|
|
|
|
|
|
|
| Rental income |
$ |
170,276 |
|
|
$ |
169,030 |
|
|
$ |
509,546 |
|
|
$ |
501,954 |
|
| Income from direct financing lease |
30,843 |
|
|
19,037 |
|
|
76,448 |
|
|
55,377 |
|
| Real estate taxes paid by tenants |
21,270 |
|
|
21,422 |
|
|
64,031 |
|
|
63,982 |
|
|
Total rental revenue and income from direct financing lease |
222,389 |
|
|
209,489 |
|
|
650,025 |
|
|
621,313 |
|
| Gaming, food, beverage and other |
31,750 |
|
|
35,017 |
|
|
102,385 |
|
|
109,297 |
|
|
Total revenues |
254,139 |
|
|
244,506 |
|
|
752,410 |
|
|
730,610 |
|
|
Operating expenses |
|
|
|
|
|
|
|
| Gaming, food, beverage and other |
18,962 |
|
|
19,890 |
|
|
59,027 |
|
|
61,635 |
|
| Real estate taxes |
21,586 |
|
|
21,751 |
|
|
64,981 |
|
|
64,806 |
|
| Land rights and ground lease expense |
6,484 |
|
|
6,417 |
|
|
19,460 |
|
|
17,627 |
|
| General and administrative |
15,006 |
|
|
15,117 |
|
|
56,272 |
|
|
45,829 |
|
| Depreciation |
27,267 |
|
|
28,632 |
|
|
82,744 |
|
|
85,312 |
|
|
Total operating expenses |
89,305 |
|
|
91,807 |
|
|
282,484 |
|
|
275,209 |
|
|
Income from operations |
164,834 |
|
|
152,699 |
|
|
469,926 |
|
|
455,401 |
|
|
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
| Interest expense |
(60,341 |
) |
|
(54,493 |
) |
|
(171,464 |
) |
|
(163,099 |
) |
| Interest income |
1,418 |
|
|
492 |
|
|
2,790 |
|
|
1,443 |
|
|
Losses on debt extinguishment |
— |
|
|
— |
|
|
(3,473 |
) |
|
— |
|
|
Total other expenses |
(58,923 |
) |
|
(54,001 |
) |
|
(172,147 |
) |
|
(161,656 |
) |
|
|
|
|
|
|
|
|
|
|
Income from operations before income taxes |
105,911 |
|
|
98,698 |
|
|
297,779 |
|
|
293,745 |
|
|
Income tax expense |
1,096 |
|
|
1,684 |
|
|
4,194 |
|
|
6,406 |
|
|
Net income |
$ |
104,815 |
|
|
$ |
97,014 |
|
|
$ |
293,585 |
|
|
$ |
287,339 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
Basic earnings per common share |
$ |
0.49 |
|
|
$ |
0.46 |
|
|
$ |
1.37 |
|
|
$ |
1.37 |
|
|
Diluted earnings per common share |
$ |
0.49 |
|
|
$ |
0.45 |
|
|
$ |
1.37 |
|
|
$ |
1.35 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESOperations(in thousands)
(unaudited)
|
|
|
|
|
|
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
|
Three Months Ended
September 30, |
|
Three Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Real estate |
$ |
222,389 |
|
|
$ |
209,489 |
|
|
$ |
214,656 |
|
|
$ |
214,204 |
|
|
GLP Holdings, LLC (TRS) |
31,750 |
|
|
35,017 |
|
|
7,495 |
|
|
9,201 |
|
|
Total |
$ |
254,139 |
|
|
$ |
244,506 |
|
|
$ |
222,151 |
|
|
$ |
223,405 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
|
Nine Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Real estate |
$ |
650,025 |
|
|
$ |
621,313 |
|
|
$ |
642,120 |
|
|
$ |
634,428 |
|
|
GLP Holdings, LLC (TRS) |
102,385 |
|
|
109,297 |
|
|
26,504 |
|
|
30,192 |
|
|
Total |
$ |
752,410 |
|
|
$ |
730,610 |
|
|
$ |
668,624 |
|
|
$ |
664,620 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESGeneral and Administrative
Expenses(in thousands) (unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Real estate general and administrative expenses (1) |
$ |
10,009 |
|
|
$ |
9,081 |
|
|
$ |
40,077 |
|
|
$ |
28,605 |
|
|
GLP Holdings, LLC (TRS) general and administrative expenses
(1) |
4,997 |
|
|
6,036 |
|
|
16,195 |
|
|
17,224 |
|
|
Total |
$ |
15,006 |
|
|
$ |
15,117 |
|
|
$ |
56,272 |
|
|
$ |
45,829 |
|
(1) General and administrative expenses include
payroll related expenses, insurance, utilities, professional fees
and other administrative costs.
Reconciliation of Net income (GAAP) to FFO, FFO
to AFFO, and AFFO to Adjusted EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesCONSOLIDATED(in thousands)
(unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Net income |
$ |
104,815 |
|
|
$ |
97,014 |
|
|
$ |
293,585 |
|
|
$ |
287,339 |
|
|
Losses from dispositions of property |
129 |
|
|
421 |
|
|
354 |
|
|
515 |
|
|
Real estate depreciation |
24,406 |
|
|
25,301 |
|
|
74,155 |
|
|
75,312 |
|
|
Funds from operations |
$ |
129,350 |
|
|
$ |
122,736 |
|
|
$ |
368,094 |
|
|
$ |
363,166 |
|
|
Straight-line rent adjustments |
15,917 |
|
|
16,617 |
|
|
49,150 |
|
|
49,355 |
|
|
Direct financing lease adjustments |
8,002 |
|
|
18,614 |
|
|
37,241 |
|
|
54,459 |
|
|
Other depreciation (1) |
2,861 |
|
|
3,331 |
|
|
8,589 |
|
|
10,000 |
|
|
Amortization of land rights |
2,727 |
|
|
2,727 |
|
|
8,182 |
|
|
7,627 |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
2,982 |
|
|
3,257 |
|
|
9,278 |
|
|
9,770 |
|
|
Stock based compensation |
3,275 |
|
|
3,695 |
|
|
7,878 |
|
|
11,951 |
|
|
Losses on debt extinguishment |
— |
|
|
— |
|
|
3,473 |
|
|
— |
|
|
Retirement costs |
— |
|
|
— |
|
|
13,149 |
|
|
— |
|
|
Capital maintenance expenditures (2) |
(970 |
) |
|
(460 |
) |
|
(2,954 |
) |
|
(2,187 |
) |
|
Adjusted funds from operations |
$ |
164,144 |
|
|
$ |
170,517 |
|
|
$ |
502,080 |
|
|
$ |
504,141 |
|
|
Interest, net |
58,923 |
|
|
54,001 |
|
|
168,674 |
|
|
161,656 |
|
|
Income tax expense |
1,096 |
|
|
1,684 |
|
|
4,194 |
|
|
6,406 |
|
|
Capital maintenance expenditures (2) |
970 |
|
|
460 |
|
|
2,954 |
|
|
2,187 |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
(2,982 |
) |
|
(3,257 |
) |
|
(9,278 |
) |
|
(9,770 |
) |
|
Adjusted EBITDA |
$ |
222,151 |
|
|
$ |
223,405 |
|
|
$ |
668,624 |
|
|
$ |
664,620 |
|
(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 EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesREAL ESTATE and CORPORATE
(REIT)(in thousands) (unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Net income |
$ |
103,126 |
|
|
$ |
95,089 |
|
|
$ |
285,712 |
|
|
$ |
279,458 |
|
|
Losses from dispositions of property |
129 |
|
|
— |
|
|
120 |
|
|
— |
|
|
Real estate depreciation |
24,406 |
|
|
25,301 |
|
|
74,155 |
|
|
75,312 |
|
|
Funds from operations |
$ |
127,661 |
|
|
$ |
120,390 |
|
|
$ |
359,987 |
|
|
$ |
354,770 |
|
|
Straight-line rent adjustments |
15,917 |
|
|
16,617 |
|
|
49,150 |
|
|
49,355 |
|
|
Direct financing lease adjustments |
8,002 |
|
|
18,614 |
|
|
37,241 |
|
|
54,459 |
|
|
Other depreciation (1) |
522 |
|
|
519 |
|
|
1,560 |
|
|
1,558 |
|
|
Amortization of land rights |
2,727 |
|
|
2,727 |
|
|
8,182 |
|
|
7,627 |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
2,982 |
|
|
3,257 |
|
|
9,278 |
|
|
9,770 |
|
|
Stock based compensation |
3,275 |
|
|
3,695 |
|
|
7,878 |
|
|
11,951 |
|
|
Losses on debt extinguishment |
— |
|
|
— |
|
|
3,473 |
|
|
— |
|
|
Retirement costs |
— |
|
|
— |
|
|
13,149 |
|
|
— |
|
|
Capital maintenance expenditures (2) |
— |
|
|
— |
|
|
(51 |
) |
|
— |
|
|
Adjusted funds from operations |
$ |
161,086 |
|
|
$ |
165,819 |
|
|
$ |
489,847 |
|
|
$ |
489,490 |
|
|
Interest, net (2) |
56,323 |
|
|
51,400 |
|
|
160,872 |
|
|
153,854 |
|
|
Income tax expense |
229 |
|
|
242 |
|
|
628 |
|
|
854 |
|
|
Capital maintenance expenditures (2) |
— |
|
|
— |
|
|
51 |
|
|
— |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
(2,982 |
) |
|
(3,257 |
) |
|
(9,278 |
) |
|
(9,770 |
) |
|
Adjusted EBITDA |
$ |
214,656 |
|
|
$ |
214,204 |
|
|
$ |
642,120 |
|
|
$ |
634,428 |
|
(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) Interest expense, net is net of intercompany
interest eliminations of $2.6 million and $7.8 million for both the
three and nine months ended September 30, 2018 and 2017.
Reconciliation of Net income (GAAP) to FFO, FFO
to AFFO, and AFFO to Adjusted EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesGLP HOLDINGS, LLC (TRS)(in
thousands) (unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Net income |
$ |
1,689 |
|
|
$ |
1,925 |
|
|
$ |
7,873 |
|
|
$ |
7,881 |
|
|
Losses from dispositions of property |
— |
|
|
421 |
|
|
234 |
|
|
515 |
|
|
Real estate depreciation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Funds from operations |
$ |
1,689 |
|
|
$ |
2,346 |
|
|
$ |
8,107 |
|
|
$ |
8,396 |
|
|
Straight-line rent adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Direct financing lease adjustments |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other depreciation (1) |
2,339 |
|
|
2,812 |
|
|
7,029 |
|
|
8,442 |
|
|
Amortization of land rights |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Stock based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Losses on debt extinguishment |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Retirement costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Capital maintenance expenditures (2) |
(970 |
) |
|
(460 |
) |
|
(2,903 |
) |
|
(2,187 |
) |
|
Adjusted funds from operations |
$ |
3,058 |
|
|
$ |
4,698 |
|
|
$ |
12,233 |
|
|
$ |
14,651 |
|
|
Interest, net |
2,600 |
|
|
2,601 |
|
|
7,802 |
|
|
7,802 |
|
|
Income tax expense |
867 |
|
|
1,442 |
|
|
3,566 |
|
|
5,552 |
|
|
Capital maintenance expenditures (2) |
970 |
|
|
460 |
|
|
2,903 |
|
|
2,187 |
|
|
Amortization of debt issuance costs, bond premiums and original
issuance discounts |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Adjusted EBITDA |
$ |
7,495 |
|
|
$ |
9,201 |
|
|
$ |
26,504 |
|
|
$ |
30,192 |
|
(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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