Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or
the “Company”) today announced financial results for
the quarter ended March 31, 2021.
Financial Highlights
|
|
Three Months Ended March 31, |
(in millions, except per share data) |
|
2021 |
|
2020 |
Total Revenue |
|
$ |
301.5 |
|
|
$ |
283.5 |
|
Income from
Operations |
|
$ |
200.1 |
|
|
$ |
186.4 |
|
Net
Income |
|
$ |
127.2 |
|
|
$ |
96.9 |
|
FFO
(1) |
|
$ |
183.6 |
|
|
$ |
151.2 |
|
AFFO
(2) |
|
$ |
195.7 |
|
|
$ |
188.8 |
|
Adjusted
EBITDA (3) |
|
$ |
266.6 |
|
|
$ |
258.8 |
|
|
|
|
|
|
Net income, per
diluted common share |
|
$ |
0.54 |
|
|
$ |
0.45 |
|
FFO, per diluted
common share |
|
$ |
0.79 |
|
|
$ |
0.70 |
|
AFFO, per diluted
common share |
|
$ |
0.84 |
|
|
$ |
0.88 |
|
_________________________________________
(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, the amortization of debt issuance costs, bond
premiums and original issuance discounts, other depreciation,
amortization of land rights, straight-line rent adjustments and
losses on debt extinguishment, 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, amortization of land rights, and
losses on debt extinguishment.
Peter Carlino, Chairman and Chief Executive
Officer of GLPI, commented, "Our record first quarter financial
results highlight our long-term focus on aligning with the
industry’s top regional gaming operators, expanding and
diversifying our portfolio of regional gaming assets, and
supporting our tenants, resulting in the predictability and growth
of our rental cash flows and dividends. Our tenant roster features
management teams with proven track records in highly-competitive
markets which has enabled our tenants to successfully reopen their
properties thereby increasing the longer-term visibility of our
rental receipts.
“Our long-term strategy includes tenant diversification beyond
the proven management teams with whom we currently work. In this
regard, earlier this month we expanded our relationship with
Bally's Corporation in a series of transactions whereby we will
acquire the real estate assets of its casino properties in Rock
Island, Illinois and Black Hawk, Colorado. We expect the
acquisition of the Rock Island and Black Hawk real estate to close
early next year and generate incremental annual rent of $12
million. These assets are expected to be added to our previously
announced Bally’s master lease for their Tropicana Evansville and
Dover Downs Hotel & Casino properties, which is expected to be
completed mid-2021.
"We are delighted to expand and diversify our relationship with
Bally’s through transactions that deliver strong rent coverage and
an accretive cap rate. By adding to the planned master lease with
Bally’s, securing rights of first refusal on potential future
assets and converting the Tropicana Las Vegas into an income
producing ground lease, we expect to drive incremental cash flows
while maintaining a strong balance sheet. We expect our tenants'
strength, combined with our standing as the sector's only
investment-grade balance sheet, to allow GLPI to consistently grow
its cash flows and build value for shareholders in 2021 and
beyond.”
Recent Developments
- As of April 29,
2021, all of GLPI's 48 properties, (including
those owned and operated in the Company's taxable REIT
subsidiaries) are open to the public in some capacity.
- On April 13, 2021, GLPI announced
an expansion in its relationship with Bally's Corporation (NYSE:
BALY) ("Bally's") to acquire the real estate assets of Bally's
casino properties in Rock Island, Illinois and Black Hawk,
Colorado, for total consideration of $150 million. The parties
expect to add the properties to the master lease that will be
created in connection with Bally's previously announced
acquisitions of Tropicana Evansville and Dover Downs Hotel &
Casino (the "Bally's Master Lease") (described more fully below).
This transaction is expected to generate incremental rent of $12.0
million, with a normalized rent coverage of 2.25x in the first
calendar year post-acquisition. The acquisitions of the real estate
assets of Bally's properties in Rock Island and Black Hawk are
expected to close in early 2022.
- Additionally, Bally’s granted GLPI
a right of first refusal to fund the real property acquisition or
development project costs associated with all potential future
transactions in Michigan, Maryland, New York and Virginia through
one or more sale-leaseback or similar transactions for a term of
seven years.
- Bally’s plans to acquire both
GLPI’s non-land real estate assets and Penn National Gaming, Inc.’s
(NASDAQ: PENN) ("Penn") outstanding equity interests in Tropicana
Las Vegas Hotel and Casino, Inc. for an aggregate cash acquisition
price of $150 million. GLPI would retain ownership of the land and
concurrently enter into a 50-year ground lease with initial annual
rent of $10.5 million. The ground lease would be supported by a
Bally’s corporate guarantee and cross-defaulted with the Bally’s
Master Lease. This transaction is expected to close in early
2022.
- Both GLPI and Bally’s have
committed to a structure whereby GLPI has the potential to acquire
additional assets in sale-leaseback transactions to the extent
Bally’s elects to utilize GLPI’s capital as a funding source for
their proposed acquisition of Gamesys Group plc. The $500 million
commitment provides Bally’s an alternative financing commitment
which at GLPI’s sole discretion may be funded in the form of
equity, additional prepaid sale-leaseback transactions or secured
loans.
- On December 15, 2020, the Company
announced an agreement to sell the operations of Hollywood Casino
Baton Rouge ("HCBR") to Casino Queen for $28.2 million. GLPI will
continue to own the real estate and will enter into an amended
master lease with Casino Queen, which will include both their
current DraftKings at Casino Queen property in East St. Louis and
the HCBR facility, for annual cash rent of $21.4 million with a new
initial term of 15 years and four 5-year extensions. This rental
amount will be increased annually by 0.5% for the first six years.
Beginning with the seventh lease year through the remainder of the
lease term, if the Consumer Price Index ("CPI") increases by at
least 0.25% for any lease year then annual rent shall be increased
by 1.25%, and if the CPI increase is less than 0.25% then rent will
remain unchanged for such lease year. GLPI will complete the
previously announced landside development project at HCBR and the
rent under the master lease will be adjusted upon completion to
reflect a yield of 8.25% on our project costs. GLPI will also have
a right of first refusal with Casino Queen for other sale leaseback
transactions for up to an incremental $50 million of rent over the
next 2 years. Finally, upon the closing of the transaction, which
is expected in the second half of 2021, subject to regulatory
approvals and customary closing conditions, GLPI will receive a
one-time cash payment of $4 million in satisfaction of the
outstanding loan to Casino Queen.
- On December 15, 2020, the Company
announced that Penn exercised its option to acquire the operations
of Hollywood Casino Perryville for $31.1 million in cash. GLPI will
enter into a new lease with Penn with an initial term of 20 years,
with three 5-year renewal options, for the real estate assets
associated with the property for an initial annual cash rent of
$7.77 million, $5.83 million of which will be subject to escalation
provisions beginning in the second lease year through the fourth
lease year and shall increase by 1.50% and then to 1.25% for the
remaining lease term. The escalation provisions beginning in the
fifth lease year are subject to CPI being at least 0.5% for the
preceding lease year. This transaction is expected to close in the
second half of 2021, subject to regulatory approvals and other
customary closing conditions.
- Since re-opening in May 2020 and
June 2020, respectively, HCBR and Hollywood Casino Perryville, the
gaming properties GLPI owns and operates in its taxable REIT
subsidiary, have generated strong financial results. Total first
quarter 2021 net revenues and adjusted EBITDA from these properties
exceeded prior-year levels, which were impacted by the temporary
closures due to COVID-19, by $10.9 million and $6.8 million,
respectively.
- On October 27, 2020, the Company
entered into a series of definitive agreements pursuant to which a
subsidiary of Bally's will acquire 100% of the equity interests in
the Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars")
subsidiary that currently operates Tropicana Evansville and the
Company will reacquire the real property assets of Tropicana
Evansville from Caesars for a cash purchase price of approximately
$340.0 million. The Company also entered into a real estate
purchase agreement with Bally's pursuant to which it will purchase
the real estate assets of the Dover Downs Hotel & Casino,
located in Dover, Delaware, which is currently owned and operated
by Bally's, for a cash purchase price of approximately $144.0
million. At the close of these transactions, which are expected to
occur in mid-2021 subject to regulatory approvals, the Tropicana
Evansville and Dover Downs Hotel & Casino facilities will be
added to the new Bally's Master Lease. The Company anticipates that
the Bally's Master Lease will have an initial term of 15 years,
with no purchase option, followed by four five-year renewal options
(exercisable by Bally's) on the same terms and conditions. Rent
under the Bally's Master Lease will be $40.0 million annually and
is subject to an annual escalator of up to 2% determined in
relation to the annual increase in the CPI.
- The Company's leases contain
variable rent which is reset on varying schedules depending on the
lease. In the aggregate, the portion of cash rents that are
variable represented approximately 15% of GLPI's 2020 full year
cash rental income. Of that 15% variable rent, approximately 29%
resets every five years which is associated with the Penn Master
Lease and the Casino Queen lease, 41% resets every two years and
30% resets monthly which is associated with the Penn Master Lease
(of which approximately 51% is subject to a floor or $22.9 million
annually for Hollywood Casino Toledo). The Company does not have
any variable rent resets until 2022.
- In accordance with the rent
deferral agreement that was signed in 2020 with Casino Queen, $2.1
million of rent was deferred due to the property's temporary
closure in the first quarter of 2021. GLPI anticipates this amount
will be collected at the closing of the HCBR transaction.
- The aggregate first quarter cash
dividend of $0.65 per share was paid on March 23, 2021.
Dividend
On February 22, 2021, the Company's Board
of Directors declared a first quarter cash dividend of $0.65 per
share on the Company's common stock. The dividend was paid on
March 23, 2021 to shareholders of record on March 9,
2021.
Portfolio Update
GLPI's primary business consists of acquiring,
financing, and owning real estate property to be leased to gaming
operators in triple-net lease arrangements. As of March 31,
2021, GLPI's portfolio consisted of interests in 48 gaming and
related facilities, including approximately 35 acres of real estate
at Tropicana Las Vegas and the Company's wholly-owned and operated
Hollywood Casino Baton Rouge and Hollywood Casino Perryville, which
are referred to as the "TRS Segment", the real property associated
with 33 gaming and related facilities operated by Penn (excluding
the Tropicana Las Vegas), the real property associated with 7
gaming and related facilities operated by Caesars, the real
property associated with 4 gaming and related facilities operated
by Boyd Gaming Corporation (NYSE: BYD), and the real property
associated with the Casino Queen in East St. Louis, Illinois. These
facilities are geographically diversified across 16 states and
contain approximately 24.3 million square feet of improvements.
Conference Call Details
The Company will hold a conference call on April
30, 2021 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: 13717758The
playback can be accessed through May 7, 2021.
WebcastThe conference call will
be available in the Investor Relations section of the Company's
website at www.glpropinc.com. To listen to a live broadcast, go to
the site at least 15 minutes prior to the scheduled start time in
order to register, download and install any necessary software. A
replay of the call will also be available for 90 days thereafter on
the Company’s website.
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESConsolidated Statements of
Operations(in thousands, except per share data)
(unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Revenues |
|
|
|
Rental income |
$ |
263,842 |
|
|
|
$ |
249,407 |
|
|
Interest income from real estate loans |
— |
|
|
|
7,316 |
|
|
Total income from real
estate |
263,842 |
|
|
|
256,723 |
|
|
Gaming, food, beverage and other |
37,701 |
|
|
|
26,759 |
|
|
Total revenues |
301,543 |
|
|
|
283,482 |
|
|
|
|
|
|
Operating
expenses |
|
|
|
Gaming, food, beverage and other |
19,926 |
|
|
|
16,503 |
|
|
Land rights and ground lease expense |
6,733 |
|
|
|
8,078 |
|
|
General and administrative |
16,082 |
|
|
|
15,987 |
|
|
(Gains) losses from dispositions of properties |
— |
|
|
|
1 |
|
|
Depreciation |
58,701 |
|
|
|
56,563 |
|
|
Total operating expenses |
101,442 |
|
|
|
97,132 |
|
|
Income from operations |
200,101 |
|
|
|
186,350 |
|
|
|
|
|
|
Other income
(expenses) |
|
|
|
Interest expense |
(70,413 |
) |
|
|
(72,004 |
) |
|
Interest income |
124 |
|
|
|
196 |
|
|
Losses on debt extinguishment |
— |
|
|
|
(17,329 |
) |
|
Total other expenses |
(70,289 |
) |
|
|
(89,137 |
) |
|
|
|
|
|
Income before income
taxes |
129,812 |
|
|
|
97,213 |
|
|
Income tax provision |
2,628 |
|
|
|
319 |
|
|
Net
income |
$ |
127,184 |
|
|
|
$ |
96,894 |
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
Basic earnings per common
share |
$ |
0.55 |
|
|
|
$ |
0.45 |
|
|
Diluted earnings per common
share |
$ |
0.54 |
|
|
|
$ |
0.45 |
|
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESOperations(in thousands)
(unaudited)
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
Three Months Ended March 31, |
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate |
$ |
263,842 |
|
|
$ |
256,723 |
|
|
$ |
254,835 |
|
|
$ |
253,859 |
|
TRS Segment |
37,701 |
|
|
26,759 |
|
|
11,770 |
|
|
4,954 |
|
Total |
$ |
301,543 |
|
|
$ |
283,482 |
|
|
$ |
266,605 |
|
|
$ |
258,813 |
|
|
|
|
|
|
|
|
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESGeneral and Administrative
Expense (1)(in thousands) (unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Real estate general and administrative expenses |
$ |
10,077 |
|
|
$ |
10,685 |
|
TRS Segment general and
administrative expenses |
6,005 |
|
|
5,302 |
|
Total reported general
and administrative expenses |
$ |
16,082 |
|
|
$ |
15,987 |
|
______________________________________
(1) General and administrative expenses include
payroll related expenses, insurance, utilities, professional fees
and other administrative costs.
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESCurrent Year Revenue
Detail(in thousands) (unaudited)
Three Months Ended March 31,
2021 |
PENN Master Lease |
PENN Amended Pinnacle Master Lease |
CZR Master Lease |
Lumiere Place Lease |
BYD Master Lease |
BYD Belterra Lease |
PENN - Meadows Lease |
Casino Queen Lease |
PENN Morgantown Lease |
Total |
Building base rent |
$ |
69,852 |
|
$ |
56,800 |
|
|
$ |
15,629 |
|
$ |
5,701 |
|
$ |
18,911 |
|
$ |
668 |
|
|
$ |
3,953 |
|
$ |
935 |
|
$ |
— |
|
$ |
172,449 |
|
Land base rent |
23,492 |
|
17,814 |
|
|
5,932 |
|
— |
|
2,946 |
|
474 |
|
|
— |
|
— |
|
750 |
|
51,408 |
|
Percentage rent |
23,567 |
|
6,695 |
|
|
— |
|
— |
|
2,461 |
|
454 |
|
|
2,261 |
|
558 |
|
— |
|
35,996 |
|
Total cash rental
income |
$ |
116,911 |
|
$ |
81,309 |
|
|
$ |
21,561 |
|
$ |
5,701 |
|
$ |
24,318 |
|
$ |
1,596 |
|
|
$ |
6,214 |
|
$ |
1,493 |
|
$ |
750 |
|
$ |
259,853 |
|
Straight-line rent
adjustments |
2,231 |
|
(4,836 |
) |
|
2,589 |
|
— |
|
574 |
|
(302 |
) |
|
572 |
|
— |
|
— |
|
828 |
|
Ground rent in revenue |
702 |
|
1,633 |
|
|
402 |
|
— |
|
374 |
|
— |
|
|
— |
|
— |
|
— |
|
3,111 |
|
Other rental revenue |
— |
|
— |
|
|
— |
|
— |
|
— |
|
— |
|
|
50 |
|
— |
|
— |
|
50 |
|
Total rental
income |
$ |
119,844 |
|
$ |
78,106 |
|
|
$ |
24,552 |
|
$ |
5,701 |
|
$ |
25,266 |
|
$ |
1,294 |
|
|
$ |
6,836 |
|
$ |
1,493 |
|
$ |
750 |
|
$ |
263,842 |
|
Reconciliation of Net income (GAAP) to FFO, FFO
to AFFO, and AFFO to Adjusted EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesCONSOLIDATED(in thousands,
except per share and share data) (unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Net income |
$ |
127,184 |
|
|
|
$ |
96,894 |
|
|
(Gains) losses from
dispositions of property |
— |
|
|
|
1 |
|
|
Real estate depreciation |
56,389 |
|
|
|
54,279 |
|
|
Funds from
operations |
$ |
183,573 |
|
|
|
$ |
151,174 |
|
|
Straight-line rent
adjustments |
(828 |
) |
|
|
8,644 |
|
|
Other depreciation (1) |
2,312 |
|
|
|
2,284 |
|
|
Amortization of land
rights |
2,843 |
|
|
|
3,020 |
|
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
2,470 |
|
|
|
2,770 |
|
|
Stock based compensation |
5,788 |
|
|
|
4,235 |
|
|
Losses on debt
extinguishment |
— |
|
|
|
17,329 |
|
|
Capital maintenance
expenditures (2) |
(438 |
) |
|
|
(646 |
) |
|
Adjusted funds from
operations |
$ |
195,720 |
|
|
|
$ |
188,810 |
|
|
Interest, net |
$ |
70,289 |
|
|
|
$ |
71,808 |
|
|
Income tax expense |
$ |
2,628 |
|
|
|
$ |
319 |
|
|
Capital maintenance
expenditures (2) |
$ |
438 |
|
|
|
$ |
646 |
|
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
$ |
(2,470 |
) |
|
|
$ |
(2,770 |
) |
|
Adjusted
EBITDA |
$ |
266,605 |
|
|
|
$ |
258,813 |
|
|
|
|
|
|
Net income, per
diluted common share |
$ |
0.54 |
|
|
|
$ |
0.45 |
|
|
FFO, per diluted
common share |
$ |
0.79 |
|
|
|
$ |
0.70 |
|
|
AFFO, per diluted
common share |
$ |
0.84 |
|
|
|
$ |
0.88 |
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
|
Diluted |
233,465,063 |
|
|
|
215,449,426 |
|
|
_________________________________________
(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, AFFO to Adjusted EBITDA and Adjusted EBITDA to Cash Net
Operating Income Gaming and Leisure Properties, Inc. and
SubsidiariesREAL ESTATE and CORPORATE (REIT)(in
thousands)
(unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Net income |
$ |
124,048 |
|
|
|
$ |
96,521 |
|
|
(Gains) losses from
dispositions of property |
— |
|
|
|
— |
|
|
Real estate depreciation |
56,389 |
|
|
|
54,279 |
|
|
Funds from
operations |
$ |
180,437 |
|
|
|
$ |
150,800 |
|
|
Straight-line rent
adjustments |
(828 |
) |
|
|
8,644 |
|
|
Other depreciation (1) |
472 |
|
|
|
497 |
|
|
Amortization of land
rights |
2,843 |
|
|
|
3,020 |
|
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
2,470 |
|
|
|
2,770 |
|
|
Stock based compensation |
5,788 |
|
|
|
4,235 |
|
|
Losses on debt
extinguishment |
— |
|
|
|
17,329 |
|
|
Capital maintenance
expenditures (2) |
(21 |
) |
|
|
(88 |
) |
|
Adjusted funds from
operations |
$ |
191,161 |
|
|
|
$ |
187,207 |
|
|
Interest, net (3) |
65,831 |
|
|
|
69,207 |
|
|
Income tax expense |
292 |
|
|
|
127 |
|
|
Capital maintenance
expenditures (2) |
21 |
|
|
|
88 |
|
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
(2,470 |
) |
|
|
(2,770 |
) |
|
Adjusted
EBITDA |
$ |
254,835 |
|
|
|
$ |
253,859 |
|
|
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Adjusted EBITDA |
$ |
254,835 |
|
|
|
$ |
253,859 |
|
|
Real estate general and
administrative expenses |
10,077 |
|
|
|
10,685 |
|
|
Stock based compensation |
(5,788 |
) |
|
|
(4,235 |
) |
|
Cash net operating
income (4) |
$ |
259,124 |
|
|
|
$ |
260,309 |
|
|
_______________________________________________
(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.
(3) Interest, net is net of intercompany
interest eliminations of $4.5 million for the three months ended
March 31, 2021 compared to $2.6 million for the corresponding
period in the prior year.
(4) Cash net operating income is rental
and other property income less cash property level expenses.
Reconciliation of Net income (GAAP) to FFO, FFO
to AFFO, and AFFO to Adjusted EBITDAGaming and Leisure Properties,
Inc. and SubsidiariesTRS Segment(in thousands)
(unaudited)
|
Three Months Ended March 31, |
|
2021 |
|
2020 |
Net income |
$ |
3,136 |
|
|
|
$ |
373 |
|
|
(Gains) losses from
dispositions of property |
— |
|
|
|
1 |
|
|
Funds from
operations |
3,136 |
|
|
|
374 |
|
|
Other depreciation (1) |
1,840 |
|
|
|
1,787 |
|
|
Capital maintenance
expenditures (2) |
(417 |
) |
|
|
(558 |
) |
|
Adjusted funds from
operations |
4,559 |
|
|
|
1,603 |
|
|
Interest, net |
4,458 |
|
|
|
2,601 |
|
|
Income tax expense |
2,336 |
|
|
|
192 |
|
|
Capital maintenance
expenditures (2) |
417 |
|
|
|
558 |
|
|
Adjusted
EBITDA |
$ |
11,770 |
|
|
|
$ |
4,954 |
|
|
_________________________________________
(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.
Gaming and Leisure Properties, Inc.
and SubsidiariesConsolidated Balance
Sheets(in thousands, except share and per share data)
|
March 31, 2021 |
|
December 31, 2020 |
|
|
|
|
Assets |
|
|
|
Real estate investments, net |
$ |
7,230,769 |
|
|
|
$ |
7,287,158 |
|
|
Property and equipment, used in operations, net |
79,919 |
|
|
|
80,618 |
|
|
Assets held for sale |
70,457 |
|
|
|
61,448 |
|
|
Real estate of Tropicana Las Vegas, net |
303,888 |
|
|
|
304,831 |
|
|
Right-of-use assets and land rights, net |
765,932 |
|
|
|
769,197 |
|
|
Cash and cash equivalents |
520,740 |
|
|
|
486,451 |
|
|
Prepaid expenses |
1,461 |
|
|
|
2,098 |
|
|
Deferred tax assets, net |
5,584 |
|
|
|
5,690 |
|
|
Other assets |
34,740 |
|
|
|
36,877 |
|
|
Total
assets |
$ |
9,013,490 |
|
|
|
$ |
9,034,368 |
|
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable |
$ |
168 |
|
|
|
$ |
375 |
|
|
Accrued expenses |
978 |
|
|
|
398 |
|
|
Accrued interest |
81,558 |
|
|
|
72,285 |
|
|
Accrued salaries and wages |
1,202 |
|
|
|
5,849 |
|
|
Gaming, property, and other taxes |
830 |
|
|
|
146 |
|
|
Income taxes |
1,922 |
|
|
|
— |
|
|
Lease liabilities |
151,904 |
|
|
|
152,203 |
|
|
Long-term debt, net of unamortized debt issuance costs, bond
premiums and original issuance discounts |
5,757,125 |
|
|
|
5,754,689 |
|
|
Deferred rental revenue |
332,233 |
|
|
|
333,061 |
|
|
Deferred tax liabilities |
399 |
|
|
|
359 |
|
|
Other liabilities |
38,528 |
|
|
|
39,985 |
|
|
Total liabilities |
6,366,847 |
|
|
|
6,359,350 |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock ($.01 par value, 50,000,000 shares authorized, no
shares issued or outstanding at March 31, 2021 and December 31,
2020) |
— |
|
|
|
— |
|
|
Common stock ($.01 par value, 500,000,000 shares authorized,
232,781,653 and 232,452,220 shares issued and outstanding at March
31, 2021 and December 31, 2020, respectively) |
2,328 |
|
|
|
2,325 |
|
|
Additional paid-in capital |
4,280,723 |
|
|
|
4,284,789 |
|
|
Accumulated deficit |
(1,636,408 |
) |
|
|
(1,612,096 |
) |
|
Total shareholders’ equity |
2,646,643 |
|
|
|
2,675,018 |
|
|
Total liabilities and
shareholders’ equity |
$ |
9,013,490 |
|
|
|
$ |
9,034,368 |
|
|
Debt Capitalization
The Company had $520.7 million of unrestricted cash and $5.76
billion in total debt at March 31, 2021. The Company’s
debt structure as of March 31, 2021 was as follows:
|
|
|
|
Years to Maturity |
Interest Rate |
|
Balance |
|
|
|
|
(in thousands) |
Unsecured $1,175 Million Revolver Due May 2023 (1) |
2.1 |
—% |
|
— |
|
Unsecured Term Loan A-2 Due May 2023 (1) |
2.1 |
1.61% |
|
424,019 |
|
Senior Unsecured Notes Due November 2023 |
2.6 |
5.38% |
|
500,000 |
|
Senior Unsecured Notes Due September 2024 |
3.4 |
3.35% |
|
400,000 |
|
Senior Unsecured Notes Due June 2025 |
4.2 |
5.25% |
|
850,000 |
|
Senior Unsecured Notes Due April 2026 |
5.0 |
5.38% |
|
975,000 |
|
Senior Unsecured Notes Due June 2028 |
7.2 |
5.75% |
|
500,000 |
|
Senior Unsecured Notes Due January 2029 |
7.8 |
5.30% |
|
750,000 |
|
Senior Unsecured Notes Due January 2030 |
8.8 |
4.00% |
|
700,000 |
|
Senior Unsecured Notes Due January 2031 |
9.8 |
4.00% |
|
700,000 |
|
Finance lease liability |
5.4 |
4.78% |
|
827 |
|
Total long-term debt |
|
|
|
5,799,846 |
|
Less: unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
(42,721 |
) |
Total long-term debt, net of unamortized debt issuance
costs, bond premiums and original issuance discounts |
|
|
|
5,757,125 |
|
Weighted average |
6.0 |
4.63% |
|
|
__________________________________________
(1) The rate on the term loan facility and
revolver is LIBOR plus 1.50%.
(2) Total debt net of cash totaled $5.24
billion at March 31, 2021.
Rating Agency Update - Issue Rating
Rating Agency |
|
Rating |
Standard & Poor's |
|
BBB- |
Fitch |
|
BBB- |
Moody's |
|
Ba1 |
Properties
Description |
Location |
Date Acquired |
Tenant/Operator |
PENN Master Lease (19 Properties) |
|
|
|
Hollywood Casino
Lawrenceburg |
Lawrenceburg, IN |
11/1/2013 |
PENN |
Hollywood Casino Aurora |
Aurora, IL |
11/1/2013 |
PENN |
Hollywood Casino Joliet |
Joliet, IL |
11/1/2013 |
PENN |
Argosy Casino Alton |
Alton, IL |
11/1/2013 |
PENN |
Hollywood Casino Toledo |
Toledo, OH |
11/1/2013 |
PENN |
Hollywood Casino Columbus |
Columbus, OH |
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 |
M Resort |
Henderson, NV |
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 |
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 |
CZR Master Lease (6
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 |
Belle of Baton Rouge |
Baton Rouge, LA |
10/1/2018 |
CZR |
Isle Casino Hotel
Bettendorf |
Bettendorf, IA |
12/18/2020 |
CZR |
Isle Casino Hotel
Waterloo |
Waterloo, IA |
12/18/2020 |
CZR |
BYD 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 |
Single Asset
Leases |
|
|
|
Belterra Park Gaming &
Entertainment Center |
Cincinnati, OH |
10/15/2018 |
BYD |
Lumière Place |
St. Louis, MO |
10/1/2018 |
CZR |
The Meadows Racetrack and
Casino |
Washington, PA |
9/9/2016 |
PENN |
Hollywood Casino
Morgantown |
Morgantown, PA |
10/1/2020 |
PENN |
Casino Queen |
East St. Louis, IL |
1/23/2014 |
Casino Queen |
TRS
Segment |
|
|
|
Hollywood Casino Baton
Rouge |
Baton Rouge, LA |
11/1/2013 |
GLPI |
Hollywood Casino
Perryville |
Perryville, MD |
11/1/2013 |
GLPI |
Tropicana Las Vegas |
Las Vegas, NV |
4/16/2020 |
PENN |
Lease Information
|
|
|
|
|
|
|
PENN Master Lease |
PENN Amended Pinnacle Master Lease |
Caesars Amended and Restated Master Lease |
BYD Master Lease |
|
Belterra Park Lease operated by BYD |
PENN-Meadows Lease |
Lumière Place Lease operated by CZR |
Casino Queen Lease |
PENN - Morgantown Lease |
Property Count |
19 |
12 |
6 |
3 |
|
1 |
1 |
1 |
1 |
1 |
Number of States
Represented |
10 |
8 |
5 |
2 |
|
1 |
1 |
1 |
1 |
1 |
Commencement Date |
11/1/2013 |
4/28/2016 |
10/1/2018 |
10/15/2018 |
|
10/15/2018 |
9/9/2016 |
9/29/2020 |
1/23/2014 |
10/1/2020 |
Lease Expiration Date |
10/31/2033 |
4/30/2031 |
9/30/2038 |
04/30/2026 |
|
04/30/2026 |
9/30/2026 |
10/31/2033 |
1/23/2029 |
10/31/2040 |
Remaining Renewal Terms |
15 (3x5 years) |
20 (4x5 years) |
20 (4x5 years) |
25 (5x5 years) |
|
25 (5x5 years) |
19 (3x5years, 1x4 years) |
20 (4x5 years) |
20 (4x5 years) |
30 (6x5 years) |
Corporate Guarantee |
Yes |
Yes |
Yes |
No |
|
No |
Yes |
Yes |
No |
Yes |
Master Lease with Cross
Collateralization |
Yes |
Yes |
Yes |
Yes |
|
No |
No |
No |
No |
No |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
|
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage (1) |
1.1 |
1.2 |
1.2 |
1.4 |
|
1.4 |
1.2 |
1.2 |
1.4 |
N/A |
Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
|
Yes |
Yes |
Yes |
Yes |
N/A |
Escalator
Details |
|
|
|
|
|
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
2% |
N/A |
2% |
|
2% |
5% (2) |
2% |
2% |
1.5% |
Latest reported coverage ratio
(3) |
1.34 |
1.28 |
0.88 |
1.51 |
|
1.89 |
0.78 |
1.48 |
0.67 |
N/A |
Minimum Escalator Coverage
Governor |
1.8 |
1.8 |
N/A |
1.8 |
|
1.8 |
2.0 |
1.2 (4) |
1.8 |
N/A |
Yearly Anniversary for
Realization |
November |
May |
(5) |
May |
|
May |
October |
October |
February |
TBD |
Percentage Rent Reset
Details |
|
|
|
|
|
|
|
|
|
|
Reset Frequency |
5 years |
2 years |
N/A |
2 years |
|
2 years |
2 years |
N/A |
5 years |
N/A |
Next Reset |
November 2023 |
May 2022 |
N/A |
May 2022 |
|
May 2022 |
October 2022 |
N/A |
February 2024 |
N/A |
(1) In support of our tenants,
compliance with this ratio has been waived for all periods impacted
by COVID-19.
(2) Meadows contains an annual
escalator for up to 5% of the base rent, if certain rent coverage
ratio thresholds are met, which remains at 5% until the earlier of
10 years or the year in which total rent is $31 million, at which
point the escalator is reduced to 2%.
(3) Information with respect to our
tenants' rent coverage was provided by our tenants. GLPI has not
independently verified the accuracy of the tenants' information and
therefore makes no representation as to its accuracy.
(4) For the first five lease years
after which time the ratio increases to 1.8.
(5) In the third lease year the
annual building base rent became $62.1 million and the annual land
component was increased to $23.6 million. Building base rent shall
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. On December 18, 2020, the Company and Caesars
completed an Exchange Agreement (the "Exchange Agreement") with
subsidiaries of Caesars in which Caesars transferred to the Company
the real estate assets of Waterloo and Bettendorf in exchange for
the transfer by the Company to Caesars of the real property assets
of Tropicana Evansville, plus a cash payment of $5.7 million.
In connection with the Exchange Agreement, the annual building base
rent was increased to $62.5 million and the annual land component
was increased to $23.7 million.
Disclosure Regarding Non-GAAP Financial
Measures
FFO, FFO per diluted common share, AFFO, AFFO
per diluted common share, Adjusted EBITDA and 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. The
Company believes FFO, FFO per diluted common share, AFFO, AFFO per
diluted common share, 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, inclusive of rent
credits recognized in connection with the Tropicana Las Vegas
transaction, less cash property level expenses. Cash NOI excludes
depreciation, the amortization of land rights, real estate general
and administrative expenses, other non-routine costs and the impact
of certain generally accepted accounting principles (“GAAP”)
adjustments to rental revenue, such as straight-line rent
adjustments and non-cash ground lease income and expense. It is
management's view that Cash NOI is a performance measure used to
evaluate the operating performance of the Company’s real estate
operations and provides investors relevant and useful information
because it reflects only income and operating expense items that
are incurred at the property level and presents them on an
unleveraged basis.
FFO, FFO per diluted common share, AFFO, AFFO
per diluted common share, 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 sales of
property and real estate depreciation. We have defined AFFO as FFO
excluding stock based compensation expense, the amortization of
debt issuance costs, bond premiums and original issuance discounts,
other depreciation, the amortization of land rights, straight-line
rent adjustments and losses on debt extinguishment reduced by
capital maintenance expenditures. 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, the
amortization of land rights, and losses on debt extinguishment. For
financial reporting and debt covenant purposes, the Company
includes the amounts of non-cash rents earned in FFO, AFFO, and
Adjusted EBITDA. Finally, we have defined Cash NOI as Adjusted
EBITDA for the REIT excluding real estate general and
administrative expenses and including stock based compensation
expense and (gains) or losses from sales of property.
FFO, FFO per diluted common share, AFFO, AFFO
per diluted common share, 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 share, AFFO, AFFO per share, 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
receipt of rent payments in future periods, the impact of future
transactions and expected future 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 effect of pandemics such as COVID-19
on GLPI as a result of the impact of such pandemics on the business
operations of GLPI’s tenants and their continued ability to pay
rent in a timely manner or at all; GLPI’s ability to successfully
consummate the announced transactions with Bally's, Casino Queen
and Penn, including the ability of the parties to satisfy the
various conditions to closing, including receipt of all required
regulatory approvals, 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 those properties
on favorable terms; the ability to receive, or delays in obtaining,
the regulatory approvals required to own and/or operate its
properties, or other delays or impediments to completing
acquisitions or projects; GLPI's ability to maintain its status as
a REIT; our ability to access capital through debt and equity
markets in amounts and at rates and costs acceptable to GLPI; the
impact of our substantial indebtedness on our future operations;
changes in the U.S. tax law and other state, federal or local laws,
whether or not specific to REITs or to the gaming or lodging
industries; and other factors described in GLPI’s Annual Report on
Form 10-K for the year ended December 31, 2020, 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 |
610/378-8232 |
212/835-8500 |
|
glpi@jcir.com |
Gaming and Leisure Prope... (NASDAQ:GLPI)
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From Aug 2024 to Sep 2024
Gaming and Leisure Prope... (NASDAQ:GLPI)
Historical Stock Chart
From Sep 2023 to Sep 2024