Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or
the “Company”) today announced record financial results for
the quarter ended June 30, 2021.
Financial Highlights
|
|
Three Months Ended June 30, |
(in millions, except per share data) |
|
2021 |
|
2020 |
Total Revenue |
|
$ |
317.8 |
|
$ |
262.0 |
|
Income from
Operations |
|
$ |
212.1 |
|
$ |
180.7 |
|
Net
Income |
|
$ |
138.2 |
|
$ |
112.4 |
|
FFO
(1) |
|
$ |
195.1 |
|
$ |
166.9 |
|
AFFO
(2) |
|
$ |
203.8 |
|
$ |
180.6 |
|
Adjusted
EBITDA (3) |
|
$ |
276.2 |
|
$ |
246.9 |
|
|
|
|
|
|
Net income, per
diluted common share |
|
$ |
0.59 |
|
$ |
0.52 |
|
FFO, per diluted
common share |
|
$ |
0.83 |
|
$ |
0.77 |
|
AFFO, per diluted
common share |
|
$ |
0.87 |
|
$ |
0.84 |
|
___________________________
(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, "GLPI’s record second quarter results
and our financial performance over the last year highlight the
value of resilient regional gaming markets and our high quality
tenant roster that has been further diversified while maintaining a
close watch on our capital structure and cost of
capital. As a result, we have established sustained
financial stability, capitalized on new growth opportunities with
existing and new tenants, and returned capital to shareholders in
the form of stock and cash dividends on an uninterrupted basis,
despite the challenges presented by the pandemic.
“As we look to the second half of 2021, GLPI
remains well positioned to deliver record results as we further
expand and diversify our portfolio and benefit from the continued
strength in regional gaming markets, with many of the operations at
GLPI’s properties recording both record bottom line results and
margins, as well as growth in topline performance compared to 2019
(prior to the COVID-19 outbreak). As a result, on May 1, 2021, full
rent escalators were achieved with respect to the Amended Pinnacle
Master Lease, the Boyd Master Lease and the Belterra Park Lease,
which increased annualized rent by $6.1 million. Furthermore, given
Penn National Gaming's strong recent performance, we expect to
achieve a full rent escalation with respect to the Penn Master
Lease in the fourth quarter that would increase annualized rent by
$5.6 million. We expect to continue to invest in existing and new
tenant relationships by sourcing portfolio enhancing, accretive
growth opportunities. Taken together, these factors support our
confidence that the Company is well positioned to extend its long
track record of value creation for shareholders.”
Recent Developments
- As of July 29, 2021, all of
GLPI's 50 properties, (including Hollywood Casino Baton Rouge which
is owned and operated by the Company's taxable REIT subsidiary and
has been contracted for sale, as described below) are open to the
public.
- On April 13, 2021, GLPI announced
an expansion of 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 created in
connection with Bally's acquisition of Tropicana Evansville and
Dover Downs Hotel & Casino (the "Bally's Master Lease")
(described more fully below). This transaction is expected to
generate incremental annualized 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.
- Bally’s also 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, Virginia and New York through
one or more sale-leaseback or similar transactions for a term of
seven years. Furthermore, both GLPI and Bally’s committed to a
structure whereby GLPI had 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 ("Gamesys"). The $500 million
commitment was intended to provide Bally’s alternative financing,
which, at GLPI’s sole discretion could be funded in the form of
equity, additional prepaid sale-leaseback transactions or secured
loans. On July 26, 2021, Bally's announced that as a result of
better than expected operating performance at its land-based retail
casinos and interactive businesses, it does not plan to draw on the
Company's commitment to fund the Gamesys acquisition.
- Bally’s agreed 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 will retain ownership of the land and
concurrently enter into a 50-year ground lease with Bally's for an
initial annual rent of $10.5 million. The ground lease will 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.
- 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.
- 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.
- 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. This
transaction closed on July 1, 2021. GLPI entered 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, increasing
by 1.50% during such period and then increasing by 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.
- Since re-opening in May 2020 and
June 2020, respectively, HCBR (the operations of which are
anticipated to be divested in the second half of 2021) and
Hollywood Casino Perryville (the operations of which were divested
on July 1, 2021), the gaming properties GLPI owns and operates
through its taxable REIT subsidiary, have generated strong
financial results. Second quarter 2021 net revenues and adjusted
EBITDA from these properties exceeded comparable 2019 levels (prior
to the COVID-19 outbreak), increasing by $10.4 million, or 31.3%,
and $6.7 million, or 78.4%, respectively.
- On October 27, 2020, the Company
entered into a series of definitive agreements pursuant to which a
subsidiary of Bally's acquired 100% of the equity interests in the
Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars") subsidiary
that operated Tropicana Evansville and the Company reacquired 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 acquired the real estate assets of the Dover
Downs Hotel & Casino, located in Dover, Delaware, which is
currently operated by Bally's, for a cash purchase price of
approximately $144.0 million. These transactions closed on June 3,
2021 and the Tropicana Evansville and Dover Downs Hotel &
Casino facilities were added to the new Bally's Master Lease. The
Bally's Master Lease has 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 is $40.0 million annually, 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 that are 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.
Dividend
On May 20, 2021, the Company's Board of
Directors declared a second quarter cash dividend of $0.67 per
share on the Company's common stock. The dividend was paid on
June 25, 2021 to shareholders of record on June 11,
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 June 30,
2021, GLPI's portfolio consisted of interests in 50 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), the real property
associated with 2 gaming and related facilities operated by Bally's
and the real property associated with the Casino Queen in East St.
Louis, Illinois. These facilities are geographically diversified
across 17 states and contain approximately 25.3 million square feet
of improvements.
Conference Call Details
The Company will hold a conference call on
July 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: 13721022The
playback can be accessed through Friday, August 6, 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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
|
|
Rental income |
$ |
274,102 |
|
|
$ |
245,749 |
|
|
$ |
537,944 |
|
|
$ |
495,156 |
|
Interest income from real estate loans |
— |
|
|
6,240 |
|
|
— |
|
|
13,556 |
|
Total income from real
estate |
274,102 |
|
|
251,989 |
|
|
537,944 |
|
|
508,712 |
|
Gaming, food, beverage and other |
43,659 |
|
|
9,979 |
|
|
81,360 |
|
|
36,738 |
|
Total revenues |
317,761 |
|
|
261,968 |
|
|
619,304 |
|
|
545,450 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Gaming, food, beverage and other |
22,382 |
|
|
4,858 |
|
|
42,308 |
|
|
21,361 |
|
Land rights and ground lease expense |
8,191 |
|
|
5,781 |
|
|
14,924 |
|
|
13,859 |
|
General and administrative |
16,821 |
|
|
13,231 |
|
|
32,903 |
|
|
29,218 |
|
Losses (gains) from dispositions of properties |
93 |
|
|
(8 |
) |
|
93 |
|
|
(7 |
) |
Depreciation |
58,150 |
|
|
57,390 |
|
|
116,851 |
|
|
113,953 |
|
Total operating expenses |
105,637 |
|
|
81,252 |
|
|
207,079 |
|
|
178,384 |
|
Income from operations |
212,124 |
|
|
180,716 |
|
|
412,225 |
|
|
367,066 |
|
|
|
|
|
|
|
|
|
Other income
(expenses) |
|
|
|
|
|
|
|
Interest expense |
(70,413 |
) |
|
(69,474 |
) |
|
(140,826 |
) |
|
(141,478 |
) |
Interest income |
54 |
|
|
273 |
|
|
178 |
|
|
469 |
|
Losses on debt
extinguishment |
— |
|
|
(5 |
) |
|
— |
|
|
(17,334 |
) |
Total other expenses |
(70,359 |
) |
|
(69,206 |
) |
|
(140,648 |
) |
|
(158,343 |
) |
|
|
|
|
|
|
|
|
Income before income
taxes |
141,765 |
|
|
111,510 |
|
|
271,577 |
|
|
208,723 |
|
Income tax provision
(benefit) |
3,549 |
|
|
(840 |
) |
|
6,177 |
|
|
(521 |
) |
Net
income |
$ |
138,216 |
|
|
$ |
112,350 |
|
|
$ |
265,400 |
|
|
$ |
209,244 |
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.59 |
|
|
$ |
0.52 |
|
|
$ |
1.14 |
|
|
$ |
0.97 |
|
Diluted earnings per common
share |
$ |
0.59 |
|
|
$ |
0.52 |
|
|
$ |
1.14 |
|
|
$ |
0.97 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESOperations(in thousands)
(unaudited)
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
Three Months Ended June 30, |
|
Three Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate |
$ |
274,102 |
|
|
$ |
251,989 |
|
|
$ |
260,986 |
|
|
$ |
246,009 |
|
TRS Segment |
43,659 |
|
|
9,979 |
|
|
15,171 |
|
|
851 |
|
Total |
$ |
317,761 |
|
|
$ |
261,968 |
|
|
$ |
276,157 |
|
|
$ |
246,860 |
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
Six Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate |
537,944 |
|
|
508,712 |
|
|
$ |
515,821 |
|
|
$ |
499,868 |
|
TRS Segment |
81,360 |
|
|
36,738 |
|
|
$ |
26,941 |
|
|
$ |
5,805 |
|
Total |
$ |
619,304 |
|
|
$ |
545,450 |
|
|
$ |
542,762 |
|
|
$ |
505,673 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESGeneral and Administrative
Expense (1)(in thousands) (unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate general and
administrative expenses |
$ |
10,715 |
|
|
$ |
8,961 |
|
|
20,792 |
|
|
19,646 |
|
TRS Segment general and
administrative expenses |
6,106 |
|
|
4,270 |
|
|
12,111 |
|
|
9,572 |
|
Total reported general and administrative
expenses |
$ |
16,821 |
|
|
$ |
13,231 |
|
|
$ |
32,903 |
|
|
$ |
29,218 |
|
___________________________
(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
June 30, 2021 |
Building base rent |
Land base rent |
Percentage rent |
Total cash rental income |
Straight-line rent adjustments |
Ground rent in revenue |
Other rental revenue |
Total rental income |
Penn Master Lease |
$ |
69,851 |
|
$ |
23,492 |
|
$ |
26,387 |
|
$ |
119,730 |
|
$ |
2,232 |
|
|
$ |
891 |
|
$ |
12 |
|
$ |
122,865 |
|
Amended Pinnacle Master
Lease |
57,558 |
|
17,814 |
|
6,694 |
|
82,066 |
|
(4,837 |
) |
|
1,804 |
|
— |
|
79,033 |
|
Penn Meadows Lease |
3,952 |
|
— |
|
2,262 |
|
6,214 |
|
572 |
|
|
— |
|
63 |
|
6,849 |
|
Penn Morgantown |
— |
|
750 |
|
— |
|
750 |
|
— |
|
|
— |
|
— |
|
750 |
|
Caesars Master Lease |
15,628 |
|
5,932 |
|
— |
|
21,560 |
|
2,590 |
|
|
403 |
|
— |
|
24,553 |
|
Lumiere Place Lease |
5,701 |
|
— |
|
— |
|
5,701 |
|
— |
|
|
— |
|
— |
|
5,701 |
|
BYD Master Lease |
19,162 |
|
2,947 |
|
2,462 |
|
24,571 |
|
574 |
|
|
401 |
|
— |
|
25,546 |
|
BYD Belterra Lease |
678 |
|
473 |
|
455 |
|
1,606 |
|
(303 |
) |
|
— |
|
— |
|
1,303 |
|
Bally's Master Lease |
3,111 |
|
— |
|
— |
|
3,111 |
|
— |
|
|
760 |
|
— |
|
3,871 |
|
Casino Queen Lease |
2,276 |
|
— |
|
1,355 |
|
3,631 |
|
— |
|
|
— |
|
— |
|
3,631 |
|
Total |
$ |
177,917 |
|
$ |
51,408 |
|
$ |
39,615 |
|
$ |
268,940 |
|
$ |
828 |
|
|
$ |
4,259 |
|
$ |
75 |
|
$ |
274,102 |
|
Six Months Ended June
30, 2021 |
Building base rent |
Land base rent |
Percentage rent |
Total cash rental income |
Straight-line rent adjustments |
Ground rent in revenue |
Other rental revenue |
Total rental income |
Penn Master Lease |
$ |
139,703 |
|
$ |
46,984 |
|
$ |
49,954 |
|
$ |
236,641 |
|
$ |
4,463 |
|
|
$ |
1,593 |
|
$ |
12 |
|
$ |
242,709 |
|
Amended Pinnacle Master
Lease |
114,358 |
|
35,628 |
|
13,389 |
|
163,375 |
|
(9,673 |
) |
|
3,437 |
|
— |
|
157,139 |
|
Penn Meadows Lease |
7,905 |
|
— |
|
4,523 |
|
12,428 |
|
1,144 |
|
|
— |
|
113 |
|
13,685 |
|
Penn Morgantown |
— |
|
1,500 |
|
— |
|
1,500 |
|
— |
|
|
— |
|
— |
|
1,500 |
|
Caesars Master Lease |
31,257 |
|
11,864 |
|
— |
|
43,121 |
|
5,179 |
|
|
805 |
|
— |
|
49,105 |
|
Lumiere Place Lease |
11,402 |
|
— |
|
— |
|
11,402 |
|
— |
|
|
— |
|
— |
|
11,402 |
|
BYD Master Lease |
38,073 |
|
5,893 |
|
4,923 |
|
48,889 |
|
1,148 |
|
|
775 |
|
— |
|
50,812 |
|
BYD Belterra Lease |
1,346 |
|
947 |
|
909 |
|
3,202 |
|
(605 |
) |
|
— |
|
— |
|
2,597 |
|
Bally's Master Lease |
3,111 |
|
— |
|
— |
|
3,111 |
|
— |
|
|
760 |
|
— |
|
3,871 |
|
Casino Queen Lease |
3,211 |
|
— |
|
1,913 |
|
5,124 |
|
— |
|
|
— |
|
— |
|
5,124 |
|
Total |
$ |
350,366 |
|
$ |
102,816 |
|
$ |
75,611 |
|
$ |
528,793 |
|
$ |
1,656 |
|
|
$ |
7,370 |
|
$ |
125 |
|
$ |
537,944 |
|
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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
138,216 |
|
|
$ |
112,350 |
|
|
$ |
265,400 |
|
|
$ |
209,244 |
|
Losses (gains) from
dispositions of property |
93 |
|
|
(8 |
) |
|
93 |
|
|
(7 |
) |
Real estate depreciation |
56,783 |
|
|
54,551 |
|
|
113,172 |
|
|
108,830 |
|
Funds from
operations |
$ |
195,092 |
|
|
$ |
166,893 |
|
|
$ |
378,665 |
|
|
$ |
318,067 |
|
Straight-line rent
adjustments |
(828 |
) |
|
1,678 |
|
|
(1,656 |
) |
|
10,322 |
|
Other depreciation (1) |
1,367 |
|
|
2,839 |
|
|
3,679 |
|
|
5,123 |
|
Amortization of land
rights |
3,006 |
|
|
3,020 |
|
|
5,849 |
|
|
6,040 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
2,470 |
|
|
2,593 |
|
|
4,940 |
|
|
5,363 |
|
Stock based compensation |
3,612 |
|
|
4,064 |
|
|
9,400 |
|
|
8,299 |
|
Losses on debt
extinguishment |
— |
|
|
5 |
|
|
— |
|
|
17,334 |
|
Capital maintenance
expenditures (2) |
(914 |
) |
|
(495 |
) |
|
(1,352 |
) |
|
(1,141 |
) |
Adjusted funds from
operations |
$ |
203,805 |
|
|
$ |
180,597 |
|
|
$ |
399,525 |
|
|
$ |
369,407 |
|
Interest, net |
70,359 |
|
|
$ |
69,201 |
|
|
140,648 |
|
|
141,009 |
|
Income tax expense
(benefit) |
3,549 |
|
|
$ |
(840 |
) |
|
6,177 |
|
|
(521 |
) |
Capital maintenance
expenditures (2) |
914 |
|
|
$ |
495 |
|
|
1,352 |
|
|
1,141 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
(2,470 |
) |
|
$ |
(2,593 |
) |
|
(4,940 |
) |
|
(5,363 |
) |
Adjusted
EBITDA |
$ |
276,157 |
|
|
$ |
246,860 |
|
|
$ |
542,762 |
|
|
$ |
505,673 |
|
|
|
|
|
|
|
|
|
Net income, per
diluted common share |
$ |
0.59 |
|
|
$ |
0.52 |
|
|
$ |
1.14 |
|
|
$ |
0.97 |
|
FFO, per diluted
common share |
$ |
0.83 |
|
|
$ |
0.77 |
|
|
$ |
1.62 |
|
|
$ |
1.47 |
|
AFFO, per diluted
common share |
$ |
0.87 |
|
|
$ |
0.84 |
|
|
$ |
1.71 |
|
|
$ |
1.71 |
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding |
|
|
|
|
|
|
|
Diluted |
234,050,329 |
|
|
215,931,653 |
|
|
233,768,296 |
|
|
215,868,231 |
|
___________________________
(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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
131,841 |
|
|
$ |
117,268 |
|
|
$ |
255,889 |
|
|
$ |
213,789 |
|
Losses (gains) from
dispositions of property |
— |
|
|
— |
|
|
— |
|
|
— |
|
Real estate depreciation |
56,783 |
|
|
54,551 |
|
|
113,172 |
|
|
108,830 |
|
Funds from
operations |
$ |
188,624 |
|
|
$ |
171,819 |
|
|
$ |
369,061 |
|
|
$ |
322,619 |
|
Straight-line rent
adjustments |
(828 |
) |
|
1,678 |
|
|
(1,656 |
) |
|
10,322 |
|
Other depreciation (1) |
468 |
|
|
498 |
|
|
940 |
|
|
995 |
|
Amortization of land
rights |
3,006 |
|
|
3,020 |
|
|
5,849 |
|
|
6,040 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
2,470 |
|
|
2,593 |
|
|
4,940 |
|
|
5,363 |
|
Stock based compensation |
3,612 |
|
|
4,064 |
|
|
9,400 |
|
|
8,299 |
|
Losses on debt
extinguishment |
— |
|
|
5 |
|
|
— |
|
|
17,334 |
|
Capital maintenance
expenditures (2) |
(44 |
) |
|
(56 |
) |
|
(65 |
) |
|
(144 |
) |
Adjusted funds from
operations |
$ |
197,308 |
|
|
$ |
183,621 |
|
|
$ |
388,469 |
|
|
$ |
370,828 |
|
Interest, net (3) |
65,900 |
|
|
64,743 |
|
|
131,731 |
|
|
133,950 |
|
Income tax expense |
204 |
|
|
182 |
|
|
496 |
|
|
309 |
|
Capital maintenance
expenditures (2) |
44 |
|
|
56 |
|
|
65 |
|
|
144 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
(2,470 |
) |
|
(2,593 |
) |
|
(4,940 |
) |
|
(5,363 |
) |
Adjusted
EBITDA |
$ |
260,986 |
|
|
$ |
246,009 |
|
|
$ |
515,821 |
|
|
$ |
499,868 |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
2020 |
Adjusted EBITDA |
$ |
260,986 |
|
|
$ |
246,009 |
|
|
$ |
515,821 |
|
|
$ |
499,868 |
|
Real estate general and
administrative expenses |
10,715 |
|
|
8,961 |
|
|
20,792 |
|
|
19,646 |
|
Stock based compensation |
(3,612 |
) |
|
(4,064 |
) |
|
(9,400 |
) |
|
(8,299 |
) |
Cash net operating income (4) |
$ |
268,089 |
|
|
$ |
250,906 |
|
|
$ |
527,213 |
|
|
$ |
511,215 |
|
___________________________
(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 and $8.9 million for the
three and six months ended June 30, 2021 compared to $4.5
million and $7.1 million for the corresponding periods 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 June 30, |
|
Six Months Ended June 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
6,375 |
|
|
$ |
(4,918 |
) |
|
$ |
9,511 |
|
|
$ |
(4,545 |
) |
Losses (gains) from
dispositions of property |
93 |
|
|
(8 |
) |
|
93 |
|
|
(7 |
) |
Funds from
operations |
6,468 |
|
|
(4,926 |
) |
|
$ |
9,604 |
|
|
$ |
(4,552 |
) |
Other depreciation (1) |
899 |
|
|
2,341 |
|
|
2,739 |
|
|
4,128 |
|
Capital maintenance
expenditures (2) |
(870 |
) |
|
(439 |
) |
|
(1,287 |
) |
|
(997 |
) |
Adjusted funds from
operations |
6,497 |
|
|
(3,024 |
) |
|
$ |
11,056 |
|
|
$ |
(1,421 |
) |
Interest, net |
4,459 |
|
|
4,458 |
|
|
$ |
8,917 |
|
|
$ |
7,059 |
|
Income tax expense
(benefit) |
3,345 |
|
|
(1,022 |
) |
|
$ |
5,681 |
|
|
$ |
(830 |
) |
Capital maintenance
expenditures (2) |
870 |
|
|
439 |
|
|
$ |
1,287 |
|
|
$ |
997 |
|
Adjusted
EBITDA |
$ |
15,171 |
|
|
$ |
851 |
|
|
$ |
26,941 |
|
|
$ |
5,805 |
|
___________________________
(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)
|
June 30, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
Real estate investments, net |
$ |
7,820,070 |
|
|
$ |
7,287,158 |
|
Property and equipment, used in operations, net |
79,077 |
|
|
80,618 |
|
Assets held for sale |
142,939 |
|
|
61,448 |
|
Real estate of Tropicana Las Vegas, net |
— |
|
|
304,831 |
|
Right-of-use assets and land rights, net |
865,392 |
|
|
769,197 |
|
Cash and cash equivalents |
147,594 |
|
|
486,451 |
|
Prepaid expenses |
2,152 |
|
|
2,098 |
|
Deferred tax assets, net |
5,668 |
|
|
5,690 |
|
Other assets |
36,427 |
|
|
36,877 |
|
Total
assets |
$ |
9,099,319 |
|
|
$ |
9,034,368 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable |
$ |
585 |
|
|
$ |
375 |
|
Accrued expenses |
2,167 |
|
|
398 |
|
Accrued interest |
70,598 |
|
|
72,285 |
|
Accrued salaries and wages |
3,404 |
|
|
5,849 |
|
Gaming, property, and other taxes |
295 |
|
|
146 |
|
Lease liabilities |
186,928 |
|
|
152,203 |
|
Long-term debt, net of unamortized debt issuance costs, bond
premiums and original issuance discounts |
5,759,561 |
|
|
5,754,689 |
|
Deferred rental revenue |
331,405 |
|
|
333,061 |
|
Deferred tax liabilities |
380 |
|
|
359 |
|
Other liabilities |
42,265 |
|
|
39,985 |
|
Total liabilities |
6,397,588 |
|
|
6,359,350 |
|
|
|
|
|
Shareholders’
equity |
|
|
|
Preferred stock ($.01 par value, 50,000,000 shares authorized, no
shares issued or outstanding at June 30, 2021 and December 31,
2020) |
— |
|
|
— |
|
Common stock ($.01 par value, 500,000,000 shares authorized,
234,288,809 and 232,452,220 shares issued and outstanding at June
30, 2021 and December 31, 2020, respectively) |
2,343 |
|
|
2,325 |
|
Additional paid-in capital |
4,354,643 |
|
|
4,284,789 |
|
Accumulated deficit |
(1,655,255 |
) |
|
(1,612,096 |
) |
Total shareholders’ equity |
2,701,731 |
|
|
2,675,018 |
|
Total liabilities and
shareholders’ equity |
$ |
9,099,319 |
|
|
$ |
9,034,368 |
|
Debt Capitalization
The Company had $147.6 million of unrestricted cash and $5.76
billion in total debt at June 30, 2021. The Company’s
debt structure as of June 30, 2021 was as follows:
|
|
|
|
|
|
Years to Maturity |
Interest Rate |
|
Balance |
|
|
|
|
|
(in thousands) |
Unsecured $1,175 Million Revolver Due May 2023 (1) |
|
1.9 |
|
— |
% |
|
— |
|
|
Unsecured Term Loan A-2 Due
May 2023 (1) |
|
1.9 |
|
1.57 |
% |
|
424,019 |
|
|
Senior Unsecured Notes Due
November 2023 |
|
2.3 |
|
5.38 |
% |
|
500,000 |
|
|
Senior Unsecured Notes Due
September 2024 |
|
3.2 |
|
3.35 |
% |
|
400,000 |
|
|
Senior Unsecured Notes Due
June 2025 |
|
3.9 |
|
5.25 |
% |
|
850,000 |
|
|
Senior Unsecured Notes Due
April 2026 |
|
4.8 |
|
5.38 |
% |
|
975,000 |
|
|
Senior Unsecured Notes Due
June 2028 |
|
6.9 |
|
5.75 |
% |
|
500,000 |
|
|
Senior Unsecured Notes Due
January 2029 |
|
7.6 |
|
5.30 |
% |
|
750,000 |
|
|
Senior Unsecured Notes Due
January 2030 |
|
8.6 |
|
4.00 |
% |
|
700,000 |
|
|
Senior Unsecured Notes Due
January 2031 |
|
9.6 |
|
4.00 |
% |
|
700,000 |
|
|
Finance lease liability |
|
5.2 |
|
4.78 |
% |
|
793 |
|
|
Total long-term
debt |
|
|
|
|
5,799,812 |
|
|
Less: unamortized debt
issuance costs, bond premiums and original issuance discounts |
|
|
|
|
(40,251 |
) |
|
Total long-term debt,
net of unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
|
5,759,561 |
|
|
Weighted
average |
|
5.7 |
|
4.63 |
% |
|
|
|
|
|
|
|
|
___________________________
(1) The rate on the term loan facility and
revolver is LIBOR plus 1.50%.
Rating Agency - 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 |
Bally's Master Lease (
2 properties) |
|
|
|
Tropicana Evansville |
Evansville, IN |
06/03/2021 |
BALY |
Dover Downs |
Dover, DE |
06/03/2021 |
BALY |
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
|
Master Leases |
|
|
PENN Master Lease |
PENN Amended Pinnacle Master Lease |
Caesars Amended and Restated Master Lease |
BYD Master Lease |
Bally's Master Lease |
Property Count |
19 |
12 |
6 |
3 |
2 |
Number of States
Represented |
10 |
8 |
5 |
2 |
2 |
Commencement Date |
11/1/2013 |
4/28/2016 |
10/1/2018 |
10/15/2018 |
6/3/2021 |
Lease Expiration Date |
10/31/2033 |
4/30/2031 |
9/30/2038 |
04/30/2026 |
06/02/2036 |
Remaining Renewal Terms |
15 (3x5 years) |
20 (4x5 years) |
20 (4x5 years) |
25 (5x5 years) |
20 (4x5 years) |
Corporate Guarantee |
Yes |
Yes |
Yes |
No |
Yes |
Master Lease with Cross
Collateralization |
Yes |
Yes |
Yes |
Yes |
Yes |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage (1) |
1.1 |
1.2 |
1.2 |
1.4 |
1.35 |
Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Escalator
Details |
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
2% |
(3) |
2% |
(4) |
Coverage ratio at March 31,
2021 (2) |
1.53 |
1.54 |
1.22 |
1.89 |
N/A |
Minimum Escalator Coverage
Governor |
1.8 |
1.8 |
N/A |
1.8 |
N/A |
Yearly Anniversary for
Realization |
November |
May |
October |
May |
June |
Percentage Rent Reset
Details |
|
|
|
|
|
Reset Frequency |
5 years |
2 years |
N/A |
2 years |
N/A |
Next Reset |
November 2023 |
May 2022 |
N/A |
May 2022 |
N/A |
(1) In support of our tenants, compliance with this ratio
has been waived for all periods impacted by COVID-19. The Bally's
Master Lease ratio declines to 1.20 once annual rent reaches $60
million.
(2) Information with respect to our
tenants' rent coverage was provided by our tenants as of March 31,
2021. GLPI has not independently verified the accuracy of the
tenants' information and therefore makes no representation as to
its accuracy.
(3) 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.
(4) If the CPI increase is at least 0.5%
for any lease year, then the rent under the Bally's Master Lease
shall increase by the greater of 1% of the rent as of the
immediately preceding lease year and the CPI increase capped at 2%.
If the CPI is less than 0.5% for such lease year, then the rent
shall not increase for such lease year.
Lease Information
|
|
Single Property Leases |
|
|
Belterra Park Lease operated by BYD |
PENN-Meadows Lease |
Lumière Place Lease operated by CZR |
Casino Queen Lease |
PENN - Morgantown Lease |
Commencement Date |
10/15/2018 |
9/9/2016 |
9/29/2020 |
1/23/2014 |
10/1/2020 |
Lease Expiration Date |
04/30/2026 |
9/30/2026 |
10/31/2033 |
1/23/2029 |
10/31/2040 |
Remaining Renewal Terms |
25 (5x5 years) |
19 (3x5years, 1x4 years) |
20 (4x5 years) |
20 (4x5 years) |
30 (6x5 years) |
Corporate Guarantee |
No |
Yes |
Yes |
No |
Yes |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage (1) |
1.4 |
1.2 |
1.2 |
1.4 |
N/A |
Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
N/A |
Escalator
Details |
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
5% (2) |
2% |
2% |
1.5% |
Coverage ratio at March 31,
2021 (3) |
2.56 |
0.87 |
1.93 |
0.94 |
N/A |
Minimum Escalator Coverage
Governor |
1.8 |
2.0 |
1.2 (4) |
1.8 |
N/A |
Yearly Anniversary for
Realization |
May |
October |
October |
February |
TBD |
Percentage Rent Reset
Details |
|
|
|
|
|
Reset Frequency |
2 years |
2 years |
N/A |
5 years |
N/A |
Next Reset |
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 as of March 31,
2021. 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.
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 and rent escalation in future periods, the
impact of pending transactions and the potential for future
transactions. Forward-looking statements can be identified by the
use of forward-looking terminology such as “expects,” “believes,”
“estimates,” “intends,” “may,” “will,” “should” or “anticipates” or
the negative or other variation of these or similar words, or by
discussions of future events, strategies or risks and
uncertainties. Such forward looking statements are inherently
subject to risks, uncertainties and assumptions about GLPI and its
subsidiaries, including risks related to the following: 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, and Casino Queen, 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 |
610/401-2900 |
212/835-8500 |
investorinquiries@glpropinc.com |
glpi@jcir.com |
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