Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or
the “Company”) today announced financial results for
the fourth quarter and year-ended December 31, 2021.
Financial Highlights
|
|
Three Months Ended December 31, |
Year Ended December 31, |
(in millions, except per share data) |
|
2021 Actual |
|
2020 Actual |
2021 Actual |
|
2020 Actual |
Total Revenue |
|
$ |
298.3 |
|
|
$ |
300.2 |
|
$ |
1,216.4 |
|
|
$ |
1,153.2 |
|
Income From Operations |
|
$ |
204.4 |
|
|
$ |
241.5 |
|
$ |
841.8 |
|
|
$ |
809.3 |
|
Net income |
|
$ |
119.6 |
|
|
$ |
169.3 |
|
$ |
534.1 |
|
|
$ |
505.7 |
|
FFO (1) (4) |
|
$ |
178.0 |
|
|
$ |
184.1 |
|
$ |
765.7 |
|
|
$ |
684.4 |
|
AFFO (2) (4) |
|
$ |
205.3 |
|
|
$ |
193.4 |
|
$ |
812.0 |
|
|
$ |
757.4 |
|
Adjusted EBITDA (3) (4) |
|
$ |
277.2 |
|
|
$ |
264.6 |
|
$ |
1,096.6 |
|
|
$ |
1,035.5 |
|
Net income, per diluted common share and OP units
(4) |
|
$ |
0.50 |
|
|
$ |
0.74 |
|
$ |
2.26 |
|
|
$ |
2.30 |
|
FFO, per diluted common share and OP units
(4) |
|
$ |
0.74 |
|
|
$ |
0.81 |
|
$ |
3.24 |
|
|
$ |
3.11 |
|
AFFO, per diluted common share and OP units
(4) |
|
$ |
0.85 |
|
|
$ |
0.85 |
|
$ |
3.44 |
|
|
$ |
3.45 |
|
______________________________
(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, gains
on sales of operations, net of tax, losses on debt extinguishment,
and provision for credit losses, net, reduced by capital
maintenance expenditures.
(3) Adjusted EBITDA is net income,
excluding interest, income tax expense, depreciation, (gains) or
losses from sales of property and gains on sales of operations net
of tax, stock based compensation expense, straight-line rent
adjustments, amortization of land rights, losses on debt
extinguishment, and provision for credit losses, net.
(4) Metrics are presented assuming full
conversion of limited partnership units to common shares and
therefore before the income statement impact of non-controlling
interests.
Peter Carlino, Chairman and Chief Executive
Officer of GLPI, commented, “The fourth quarter of 2021 was an
active and productive period for GLPI marked by strong operating
results and increased dividends as we continue to leverage our deep
knowledge of the gaming sector to drive long-term growth while
actively managing our tenant relationships, financing activities
and capital structure.
“During the fourth quarter, we added a new
marquee tenant to our roster of the nation’s leading regional
gaming operators through the completion of new lease and
partnership agreements with The Cordish Companies (“Cordish”), a
preeminent developer of large-scale experiential real estate
projects, casinos, hospitality and entertainment districts. The new
leases have strong rent coverage at an accretive cap rate and grow
our rental cash flows while further expanding and diversifying our
tenant base. Furthermore, our agreement with Cordish aligns both
companies for potential future casino development and financing
partnerships in other areas of their portfolio of real estate and
operating businesses. We closed the acquisition of the real
property assets of Live! Casino & Hotel Maryland ("Maryland
Live!") in a creative manner, by assuming approximately $363
million in debt (which has since been repaid) and issuing
approximately $200 million of operating partnership units. The
remaining consideration was a mix of cash on hand, proceeds of our
December 3.250% senior unsecured notes offering and our recent
common stock offering which also partially prefunds the acquisition
of the real property assets of Live! Casino & Hotel
Philadelphia and Live! Casino Pittsburgh, for which we entered into
definitive agreements during the fourth quarter.
“During the quarter, we also completed the sale
of the operations of Hollywood Casino Baton Rouge to Casino Queen
and entered into an amended and restated master lease with Casino
Queen, which added the Baton Rouge facility to their existing lease
for the DraftKings at Casino Queen property in East St. Louis. As
with our Cordish and Bally's Corporation ("Bally's") arrangement,
we have structured a longer-term opportunity with Casino Queen as
we now have the right of first refusal for other sale leaseback
transactions for up to an incremental $50 million of rent over the
next 2 years.
“In the second half of this year, we expect to
complete the acquisition of the real estate assets of Bally's
Corporation’s casino properties in Rock Island, Illinois and Black
Hawk, Colorado subsequent to which we will add these properties to
the existing Bally’s master lease. We have positioned GLPI for
future growth opportunities with Bally’s by securing the right of
first refusal to fund 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.
“Looking forward, we believe GLPI is well
positioned to deliver long-term growth based on our relationships
with the nation’s most esteemed regional gaming operators, our
rights and options to participate in select tenants’ future growth
and expansion initiatives, and our ability to structure and fund
transactions at attractive rates. Taken together, these factors
support our confidence that the Company is well positioned to
extend its long-term record of shareholder value creation.”
Recent Developments
- As of December 31, 2021, all
of our tenants were current with respect to their rental
obligations, inclusive of $1.3 million in rent collected during the
fourth quarter from Casino Queen, which was deferred earlier in
2021 related to COVID-19 closures. All of our properties are
currently open to the public.
- On December 17, 2021, the Company
completed its previously announced transaction to sell the
operations of Hollywood Casino Baton Rouge ("HCBR") to Casino Queen
for $28.2 million, resulting in a pre-tax gain of $6.8 million
($7.7 million after-tax loss). GLPI continues to own the real
estate and entered into an amended and restated master lease with
Casino Queen, which includes their 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. Rent 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, annual rent shall
be increased by 1.25%; if the CPI increase is less than 0.25%, rent
will remain unchanged for such lease year. GLPI will complete the
previously announced land side 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, GLPI received a one-time cash payment of $4
million in satisfaction of the outstanding loan to Casino Queen
which was recorded in provision for credit losses, net and has been
excluded from AFFO and Adjusted EBITDA.
- On December 6, 2021, GLPI announced
it had agreed to acquire the real property assets of Maryland
Live!, Live! Casino & Hotel Philadelphia, and Live! Casino
Pittsburgh, including applicable long-term ground leases, from
affiliates of Cordish for $1.81 billion. The transaction also
includes a binding partnership on future Cordish casino
developments, as well as potential financing partnerships between
GLPI and Cordish in other areas of Cordish's portfolio of real
estate and operating businesses. GLPI will enter into a new
triple-net master lease with Cordish for Live! Casino & Hotel
Philadelphia, and Live! Casino Pittsburgh that will have an initial
annual rent of $50.0 million. On December 29, 2021, GLPI completed
its acquisition of the real property assets of Maryland Live! and
entered into a single asset lease for the property which has an
initial annual rent of $75.0 million (the "Maryland Live! Lease").
The master lease and the Maryland Live! Lease will have and have
initial terms of 39 years, with a maximum of 60 years inclusive of
tenant renewal options. The initial annual cash rents on both
leases contain a 1.75% fixed yearly escalator on the entirety of
the rent, commencing upon the second anniversary of the
leases.
- After the announcement of the
Cordish transactions, GLPI announced a common stock offering and a
Senior Note offering to partially finance the transactions. GLPI
issued 8,855,000 shares raising net proceeds of approximately
$391.5 million and issued $800 million of 10 year senior unsecured
notes with a coupon of 3.25%, priced at 99.376% to par. In
connection with the closing of the Maryland Live! acquisition, the
Company also issued 4.35 million operating partnership units ("OP
units") to affiliates of Cordish which are exchangeable into common
shares of the Company on a one for one basis.
- On April 13, 2021, GLPI announced
an agreement to acquire the real estate assets of Bally's (NYSE:
BALY) 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). These transactions are 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 transactions are expected to close in the
second half of 2022.
- As part of the Rock Island and
Black Hawk acquisitions, 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.
- Bally’s also agreed to acquire both
GLPI’s non-land real estate assets and Penn National Gaming, Inc.'s
("Penn's") (NASDAQ: 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, cross-defaulted with
the Bally’s Master Lease. This transaction is expected to close in
the second half of 2022.
Dividends
On November 29, 2021, the Company's Board of Directors declared
a fourth quarter dividend of $0.67 per share on the Company's
common stock. The dividend was paid on December 23, 2021 to
shareholders of record on December 9, 2021.
The Company completed a special earnings and profits dividend
related to the sale of the operations of HCBR and Hollywood Casino
Perryville of $0.24 per share on the Company's common stock. This
dividend was paid on January 7, 2022 to shareholders of record on
December 27, 2021.
On February 24, 2022, the Company's Board of Directors declared
the first quarter 2022 dividend of $0.69 per common share, payable
on March 25, 2022 to shareholders of record on March 11, 2022.
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 December 31,
2021, GLPI's portfolio consisted of interests in 51 gaming and
related facilities, including approximately 35 acres of real estate
at Tropicana Las Vegas, the real property associated with 34 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 Entertainment, Inc. ("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, the real property associated with gaming and related
facilities at Live! Casino & Hotel Maryland operated by Cordish
and the real property associated with 2 gaming and related
facilities operated by Casino Queen. These facilities are
geographically diversified across 17 states and contain
approximately 27.6 million square feet of improvements.
Conference Call Details
The Company will hold a conference call on
February 25, 2022 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: 13715360The
playback can be accessed through Friday, March 4, 2022.
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 December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenues |
|
|
|
|
|
|
|
Rental income |
$ |
285,461 |
|
|
$ |
268,325 |
|
|
$ |
1,106,658 |
|
|
$ |
1,031,036 |
|
Interest income from real estate loans |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,130 |
|
Total income from real estate |
|
285,461 |
|
|
|
268,325 |
|
|
|
1,106,658 |
|
|
|
1,050,166 |
|
Gaming, food, beverage and other |
|
12,874 |
|
|
|
31,836 |
|
|
|
109,693 |
|
|
|
102,999 |
|
Total revenues |
|
298,335 |
|
|
|
300,161 |
|
|
|
1,216,351 |
|
|
|
1,153,165 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Gaming, food, beverage and other |
|
4,965 |
|
|
|
17,162 |
|
|
|
53,039 |
|
|
|
56,698 |
|
Land rights and ground lease expense |
|
13,052 |
|
|
|
7,098 |
|
|
|
37,390 |
|
|
|
29,041 |
|
General and administrative |
|
15,276 |
|
|
|
16,844 |
|
|
|
61,245 |
|
|
|
68,572 |
|
Gains from dispositions |
|
(7,029 |
) |
|
|
(41,390 |
) |
|
|
(21,751 |
) |
|
|
(41,393 |
) |
Depreciation |
|
59,401 |
|
|
|
58,940 |
|
|
|
236,434 |
|
|
|
230,973 |
|
Provision for credit losses, net |
|
8,226 |
|
|
|
— |
|
|
|
8,226 |
|
|
|
— |
|
Total operating expenses |
|
93,891 |
|
|
|
58,654 |
|
|
|
374,583 |
|
|
|
343,891 |
|
Income from operations |
|
204,444 |
|
|
|
241,507 |
|
|
|
841,768 |
|
|
|
809,274 |
|
|
|
|
|
|
|
|
|
Other income (expenses) |
|
|
|
|
|
|
|
Interest expense |
|
(71,779 |
) |
|
|
(70,485 |
) |
|
|
(283,037 |
) |
|
|
(282,142 |
) |
Interest income |
|
13 |
|
|
|
78 |
|
|
|
197 |
|
|
|
569 |
|
Insurance gain |
|
3,500 |
|
|
|
— |
|
|
|
3,500 |
|
|
|
— |
|
Losses on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(18,113 |
) |
Total other expenses |
|
(68,266 |
) |
|
|
(70,407 |
) |
|
|
(279,340 |
) |
|
|
(299,686 |
) |
|
|
|
|
|
|
|
|
Income before income taxes |
|
136,178 |
|
|
|
171,100 |
|
|
|
562,428 |
|
|
|
509,588 |
|
Income tax provision |
|
16,551 |
|
|
|
1,759 |
|
|
|
28,342 |
|
|
|
3,877 |
|
Net income |
$ |
119,627 |
|
|
$ |
169,341 |
|
|
$ |
534,086 |
|
|
$ |
505,711 |
|
Less: Net income attributable to noncontrolling interest in
Operating Partnership |
|
(39 |
) |
|
|
— |
|
|
|
(39 |
) |
|
|
— |
|
Net income attributable to common
shareholders |
|
119,588 |
|
|
$ |
169,341 |
|
|
$ |
534,047 |
|
|
$ |
505,711 |
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
Basic earnings attributable to common shareholders |
$ |
0.50 |
|
|
$ |
0.75 |
|
|
$ |
2.27 |
|
|
$ |
2.31 |
|
Diluted earnings attributable to common shareholders |
$ |
0.50 |
|
|
$ |
0.74 |
|
|
$ |
2.26 |
|
|
$ |
2.30 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESOperations(in thousands)
(unaudited)
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
Three Months Ended December 31, |
|
Three Months Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate |
$ |
283,458 |
|
|
$ |
268,325 |
|
|
$ |
266,882 |
|
|
$ |
255,430 |
|
TRS Segment |
|
14,877 |
|
|
|
31,836 |
|
|
|
10,301 |
|
|
|
9,122 |
|
Total |
$ |
298,335 |
|
|
$ |
300,161 |
|
|
$ |
277,183 |
|
|
$ |
264,552 |
|
|
|
|
|
|
|
|
|
|
TOTAL REVENUES |
|
ADJUSTED EBITDA |
|
Year Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate |
|
1,102,653 |
|
|
|
1,050,166 |
|
|
$ |
1,050,844 |
|
|
$ |
1,009,708 |
|
TRS Segment |
|
113,698 |
|
|
|
102,999 |
|
|
$ |
45,787 |
|
|
$ |
25,748 |
|
Total |
$ |
1,216,351 |
|
|
$ |
1,153,165 |
|
|
$ |
1,096,631 |
|
|
$ |
1,035,456 |
|
GAMING AND LEISURE PROPERTIES, INC. AND
SUBSIDIARIESGeneral and Administrative
Expense (1)(in thousands) (unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Real estate general and administrative expenses |
$ |
12,225 |
|
|
$ |
11,292 |
|
|
$ |
42,993 |
|
|
$ |
48,019 |
|
TRS Segment general and administrative expenses |
|
3,051 |
|
|
|
5,552 |
|
|
|
18,252 |
|
|
|
20,553 |
|
Total reported general and administrative
expenses |
|
15,276 |
|
|
|
16,844 |
|
|
|
61,245 |
|
|
|
68,572 |
|
______________________________
(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 December 31, 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 |
$ |
70,783 |
|
$ |
23,492 |
|
$ |
23,532 |
|
$ |
117,807 |
|
$ |
2,231 |
|
$ |
684 |
|
$ |
— |
|
$ |
120,722 |
|
Amended Pinnacle Master Lease |
|
57,936 |
|
|
17,814 |
|
|
6,695 |
|
|
82,445 |
|
|
(4,836 |
) |
|
2,077 |
|
|
— |
|
|
79,686 |
|
Penn Meadows Lease |
|
3,953 |
|
|
— |
|
|
2,262 |
|
|
6,215 |
|
|
571 |
|
|
— |
|
|
60 |
|
|
6,846 |
|
Penn Morgantown Lease |
|
— |
|
|
750 |
|
|
— |
|
|
750 |
|
|
— |
|
|
— |
|
|
— |
|
|
750 |
|
Penn Perryville Lease (1) |
|
1,457 |
|
|
485 |
|
|
— |
|
|
1,942 |
|
|
60 |
|
|
— |
|
|
— |
|
|
2,002 |
|
Caesars Master Lease |
|
15,628 |
|
|
5,933 |
|
|
— |
|
|
21,561 |
|
|
2,590 |
|
|
378 |
|
|
— |
|
|
24,529 |
|
Lumiere Place Lease |
|
5,772 |
|
|
— |
|
|
— |
|
|
5,772 |
|
|
544 |
|
|
— |
|
|
— |
|
|
6,316 |
|
BYD Master Lease |
|
19,290 |
|
|
2,946 |
|
|
2,461 |
|
|
24,697 |
|
|
574 |
|
|
551 |
|
|
— |
|
|
25,822 |
|
BYD Belterra Lease |
|
681 |
|
|
474 |
|
|
454 |
|
|
1,609 |
|
|
(303 |
) |
|
— |
|
|
— |
|
|
1,306 |
|
Bally's Master Lease |
|
10,000 |
|
|
— |
|
|
— |
|
|
10,000 |
|
|
— |
|
|
2,263 |
|
|
— |
|
|
12,263 |
|
Casino Queen Master Lease |
|
3,366 |
|
|
— |
|
|
1,835 |
|
|
5,201 |
|
|
18 |
|
|
— |
|
|
— |
|
|
5,219 |
|
Total |
$ |
188,866 |
|
$ |
51,894 |
|
$ |
37,239 |
|
$ |
277,999 |
|
$ |
1,449 |
|
$ |
5,953 |
|
$ |
60 |
|
$ |
285,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 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 |
$ |
280,338 |
|
$ |
93,969 |
|
$ |
97,814 |
|
|
472,121 |
|
$ |
8,926 |
|
$ |
3,013 |
|
$ |
12 |
|
$ |
484,072 |
|
Amended Pinnacle Master Lease |
|
230,230 |
|
|
71,256 |
|
|
26,779 |
|
|
328,265 |
|
|
(19,346 |
) |
|
7,430 |
|
|
— |
|
|
316,349 |
|
Penn Meadows Lease |
|
15,811 |
|
|
— |
|
|
9,046 |
|
|
24,857 |
|
|
2,288 |
|
|
— |
|
|
195 |
|
|
27,340 |
|
Penn Morgantown Lease |
|
— |
|
|
3,000 |
|
|
— |
|
|
3,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,000 |
|
Penn Perryville Lease (1) |
|
2,914 |
|
|
971 |
|
|
— |
|
|
3,885 |
|
|
120 |
|
|
— |
|
|
— |
|
|
4,005 |
|
Caesars Master Lease |
|
62,514 |
|
|
23,729 |
|
|
— |
|
|
86,243 |
|
|
10,358 |
|
|
1,586 |
|
|
— |
|
|
98,187 |
|
Lumiere Place Lease |
|
22,875 |
|
|
— |
|
|
— |
|
|
22,875 |
|
|
544 |
|
|
— |
|
|
— |
|
|
23,419 |
|
BYD Master Lease |
|
76,652 |
|
|
11,785 |
|
|
9,845 |
|
|
98,282 |
|
|
2,296 |
|
|
1,726 |
|
|
— |
|
|
102,304 |
|
BYD Belterra Lease |
|
2,709 |
|
|
1,894 |
|
|
1,817 |
|
|
6,420 |
|
|
(1,211 |
) |
|
— |
|
|
— |
|
|
5,209 |
|
Bally's Master Lease |
|
23,111 |
|
|
— |
|
|
— |
|
|
23,111 |
|
|
— |
|
|
4,832 |
|
|
— |
|
|
27,943 |
|
Casino Queen Master Lease |
|
9,388 |
|
|
— |
|
|
5,424 |
|
|
14,812 |
|
|
18 |
|
|
— |
|
|
— |
|
|
14,830 |
|
Total |
$ |
726,542 |
|
$ |
206,604 |
|
$ |
150,725 |
|
$ |
1,083,871 |
|
$ |
3,993 |
|
$ |
18,587 |
|
$ |
207 |
|
$ |
1,106,658 |
|
(1) Rent for the Perryville Lease has been recorded
in the TRS segment.
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 December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
119,627 |
|
|
$ |
169,341 |
|
|
$ |
534,086 |
|
|
$ |
505,711 |
|
(Gains) losses from dispositions of property |
|
(206 |
) |
|
|
(41,390 |
) |
|
|
711 |
|
|
|
(41,393 |
) |
Real estate depreciation |
|
58,564 |
|
|
|
56,141 |
|
|
|
230,941 |
|
|
|
220,069 |
|
Funds from operations |
$ |
177,985 |
|
|
$ |
184,092 |
|
|
$ |
765,738 |
|
|
$ |
684,387 |
|
Straight-line rent adjustments |
|
(1,449 |
) |
|
|
(818 |
) |
|
|
(3,993 |
) |
|
|
4,576 |
|
Other depreciation (1) |
|
837 |
|
|
|
2,799 |
|
|
|
5,493 |
|
|
|
10,904 |
|
Amortization of land rights |
|
6,445 |
|
|
|
2,961 |
|
|
|
15,616 |
|
|
|
12,022 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
2,519 |
|
|
|
2,471 |
|
|
|
9,929 |
|
|
|
10,503 |
|
Stock based compensation |
|
3,645 |
|
|
|
3,352 |
|
|
|
16,831 |
|
|
|
20,004 |
|
Loss (gain) on sale of operations, net of tax |
|
7,730 |
|
|
|
— |
|
|
|
(3,560 |
) |
|
|
— |
|
Losses on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,113 |
|
Provision for credit losses, net |
|
8,226 |
|
|
|
— |
|
|
|
8,226 |
|
|
|
— |
|
Capital maintenance expenditures (2) |
|
(615 |
) |
|
|
(1,501 |
) |
|
|
(2,270 |
) |
|
|
(3,130 |
) |
Adjusted funds from operations |
$ |
205,323 |
|
|
$ |
193,356 |
|
|
$ |
812,010 |
|
|
$ |
757,379 |
|
Interest, net |
|
71,766 |
|
|
|
70,407 |
|
|
|
282,840 |
|
|
|
281,573 |
|
Income tax expense |
|
1,998 |
|
|
|
1,759 |
|
|
|
9,440 |
|
|
|
3,877 |
|
Capital maintenance expenditures (2) |
|
615 |
|
|
|
1,501 |
|
|
|
2,270 |
|
|
|
3,130 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts |
|
(2,519 |
) |
|
|
(2,471 |
) |
|
|
(9,929 |
) |
|
|
(10,503 |
) |
Adjusted EBITDA |
$ |
277,183 |
|
|
$ |
264,552 |
|
|
$ |
1,096,631 |
|
|
$ |
1,035,456 |
|
|
|
|
|
|
|
|
|
Net income, per diluted common shares and OP
units |
$ |
0.50 |
|
|
$ |
0.74 |
|
|
$ |
2.26 |
|
|
$ |
2.30 |
|
FFO, per diluted common share and OP units |
$ |
0.74 |
|
|
$ |
0.81 |
|
|
$ |
3.24 |
|
|
$ |
3.11 |
|
AFFO, per diluted common share and OP units |
$ |
0.85 |
|
|
$ |
0.85 |
|
|
$ |
3.44 |
|
|
$ |
3.45 |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares and OP units
outstanding |
|
|
|
|
|
|
|
Diluted common shares |
|
241,369,486 |
|
|
|
227,842,874 |
|
|
|
236,230,630 |
|
|
|
219,772,725 |
|
OP units |
|
141,808 |
|
|
|
— |
|
|
|
35,743 |
|
|
|
— |
|
Diluted common shares and OP units |
|
241,511,294 |
|
|
|
227,842,874 |
|
|
|
236,266,373 |
|
|
|
219,772,725 |
|
(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 December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
123,443 |
|
|
$ |
168,585 |
|
|
$ |
514,883 |
|
|
$ |
508,060 |
|
(Gains) losses from dispositions of property |
|
(225 |
) |
|
|
(41,402 |
) |
|
|
604 |
|
|
|
(41,402 |
) |
Real estate depreciation |
|
58,321 |
|
|
|
56,141 |
|
|
|
230,333 |
|
|
|
220,069 |
|
Funds from operations |
$ |
181,539 |
|
|
$ |
183,324 |
|
|
$ |
745,820 |
|
|
$ |
686,727 |
|
Straight-line rent adjustments |
|
(1,389 |
) |
|
|
(818 |
) |
|
|
(3,873 |
) |
|
|
4,576 |
|
Other depreciation (1) |
|
470 |
|
|
|
480 |
|
|
|
1,881 |
|
|
|
1,972 |
|
Amortization of land rights |
|
6,445 |
|
|
|
2,961 |
|
|
|
15,616 |
|
|
|
12,022 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts and
premiums |
|
2,519 |
|
|
|
2,471 |
|
|
|
9,929 |
|
|
|
10,503 |
|
Stock based compensation |
|
3,645 |
|
|
|
3,352 |
|
|
|
16,831 |
|
|
|
20,004 |
|
Losses on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,113 |
|
Provision for credit losses, net |
|
8,226 |
|
|
|
— |
|
|
|
8,226 |
|
|
|
— |
|
Capital maintenance expenditures (2) |
|
— |
|
|
|
(31 |
) |
|
|
(65 |
) |
|
|
(186 |
) |
Adjusted funds from operations |
$ |
201,455 |
|
|
$ |
191,739 |
|
|
$ |
794,365 |
|
|
$ |
753,731 |
|
Interest, net (3) |
|
67,742 |
|
|
|
65,949 |
|
|
|
265,439 |
|
|
|
265,597 |
|
Income tax expense |
|
204 |
|
|
|
182 |
|
|
|
904 |
|
|
|
697 |
|
Capital maintenance expenditures (2) |
|
— |
|
|
|
31 |
|
|
|
65 |
|
|
|
186 |
|
Amortization of debt issuance
costs, bond premiums and original issuance discounts and
premiums |
|
(2,519 |
) |
|
|
(2,471 |
) |
|
|
(9,929 |
) |
|
|
(10,503 |
) |
Adjusted EBITDA |
$ |
266,882 |
|
|
$ |
255,430 |
|
|
$ |
1,050,844 |
|
|
$ |
1,009,708 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Adjusted EBITDA |
$ |
266,882 |
|
|
$ |
255,430 |
|
|
$ |
1,050,844 |
|
|
$ |
1,009,708 |
|
Real estate general and administrative expenses |
|
12,225 |
|
|
|
11,292 |
|
|
|
42,993 |
|
|
|
48,019 |
|
Stock based compensation |
|
(3,645 |
) |
|
|
(3,352 |
) |
|
|
(16,831 |
) |
|
|
(20,004 |
) |
REIT Cash net operating income (4) |
$ |
275,462 |
|
|
$ |
263,370 |
|
|
$ |
1,077,006 |
|
|
$ |
1,037,723 |
|
______________________________
(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 $4.0 million and $17.4 million for the
three months and year ended December 31, 2021, compared to
$4.5 million and $16.0 million for the corresponding periods in the
prior year.
(4) REIT cash net operating income is rental and
other property income, less cash property level expenses. Amounts
for the three months and year ended December 31, 2021 exclude cash
rents of $1.9 million and $3.9 million, respectively, from the
Perryville Lease which was recorded in the TRS segment.
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 December 31, |
|
Year Ended December 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
(3,816 |
) |
|
$ |
756 |
|
|
$ |
19,203 |
|
|
$ |
(2,349 |
) |
Losses from dispositions of property |
|
19 |
|
|
|
12 |
|
|
|
107 |
|
|
|
9 |
|
Real estate depreciation |
|
243 |
|
|
|
— |
|
|
|
608 |
|
|
|
— |
|
Funds from operations |
$ |
(3,554 |
) |
|
$ |
768 |
|
|
$ |
19,918 |
|
|
$ |
(2,340 |
) |
Other depreciation (1) |
|
367 |
|
|
|
2,319 |
|
|
|
3,612 |
|
|
|
8,932 |
|
Loss (gain) on sale of operations, net of tax |
|
7,730 |
|
|
|
— |
|
|
|
(3,560 |
) |
|
|
— |
|
Straight-line rent adjustments |
|
(60 |
) |
|
|
— |
|
|
|
(120 |
) |
|
|
— |
|
Capital maintenance expenditures (2) |
|
(615 |
) |
|
|
(1,470 |
) |
|
|
(2,205 |
) |
|
|
(2,944 |
) |
Adjusted funds from operations |
$ |
3,868 |
|
|
$ |
1,617 |
|
|
$ |
17,645 |
|
|
$ |
3,648 |
|
Interest, net |
|
4,024 |
|
|
|
4,458 |
|
|
|
17,401 |
|
|
|
15,976 |
|
Income tax expense |
|
1,794 |
|
|
|
1,577 |
|
|
|
8,536 |
|
|
|
3,180 |
|
Capital maintenance expenditures (2) |
|
615 |
|
|
|
1,470 |
|
|
|
2,205 |
|
|
|
2,944 |
|
Adjusted EBITDA |
$ |
10,301 |
|
|
$ |
9,122 |
|
|
$ |
45,787 |
|
|
$ |
25,748 |
|
______________________________
(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)
|
December 31, |
|
December 31, |
|
2021 |
|
2020 |
|
|
|
|
Assets |
|
|
|
Real estate investments, net |
$ |
7,777,551 |
|
|
$ |
7,287,158 |
|
Investment in leases, financing receivables - net |
|
1,201,670 |
|
|
|
— |
|
Property and equipment, used in operations, net |
|
12,977 |
|
|
|
80,618 |
|
Assets held for sale |
|
77,728 |
|
|
|
61,448 |
|
Tropicana, Las Vegas Investment |
|
— |
|
|
|
304,831 |
|
Right-of-use assets and land rights, net |
|
851,819 |
|
|
|
769,197 |
|
Cash and cash equivalents |
|
724,595 |
|
|
|
486,451 |
|
Other assets |
|
44,109 |
|
|
|
44,665 |
|
Total assets |
$ |
10,690,449 |
|
|
$ |
9,034,368 |
|
|
|
|
|
Liabilities |
|
|
|
Accounts payable |
$ |
779 |
|
|
$ |
375 |
|
Dividend payable and accrued expenses |
|
62,764 |
|
|
|
398 |
|
Accrued interest |
|
71,810 |
|
|
|
72,285 |
|
Accrued salaries and wages |
|
6,798 |
|
|
|
5,849 |
|
Gaming, property, and other taxes |
|
502 |
|
|
|
146 |
|
Income taxes payable |
|
5,166 |
|
|
|
— |
|
Operating lease liabilities |
|
183,945 |
|
|
|
152,203 |
|
Financing lease liabilities |
|
53,309 |
|
|
|
— |
|
Long-term debt, net of unamortized debt issuance costs, bond
premiums and original issuance discounts |
|
6,552,372 |
|
|
|
5,754,689 |
|
Deferred rental revenue |
|
329,068 |
|
|
|
333,061 |
|
Deferred tax liabilities |
|
— |
|
|
|
359 |
|
Other liabilities |
|
33,796 |
|
|
|
39,985 |
|
Total liabilities |
|
7,300,309 |
|
|
|
6,359,350 |
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Preferred stock ($.01 par value, 50,000,000 shares authorized, no
shares issued or outstanding at December 31, 2021 and December 31,
2020) |
|
— |
|
|
|
— |
|
Common stock ($.01 par value, 500,000,000 shares authorized,
247,206,937 shares and 232,452,220 shares issued and outstanding at
December 31, 2021 and December 31, 2020, respectively) |
|
2,472 |
|
|
|
2,325 |
|
Additional paid-in capital |
|
4,953,943 |
|
|
|
4,284,789 |
|
Retained deficit |
|
(1,771,402 |
) |
|
|
(1,612,096 |
) |
Total equity attributable to Gaming and Leisure Properties |
|
3,185,013 |
|
|
|
2,675,018 |
|
Noncontrolling interests in GLPI's Operating Partnership (4,348,774
units and no units outstanding at December 31, 2021 and December
31, 2020, respectively) |
|
205,127 |
|
|
|
— |
|
Total equity |
|
3,390,140 |
|
|
|
2,675,018 |
|
Total liabilities and equity |
$ |
10,690,449 |
|
|
$ |
9,034,368 |
|
Debt Capitalization
The Company had $724.6 million of unrestricted cash and $6.55
billion in total debt at December 31, 2021. The Company’s debt
structure as of December 31, 2021 was as follows:
|
Years to Maturity |
Interest Rate |
|
Balance |
|
|
|
|
|
(in thousands) |
Unsecured $1,175 Million Revolver Due May 2023 (1) |
1.4 |
— |
% |
|
$ |
— |
|
Unsecured Term Loan A-2 Due May 2023 (1) |
1.4 |
1.60 |
% |
|
|
424,019 |
|
Senior Unsecured Notes Due November 2023 |
1.8 |
5.38 |
% |
|
|
500,000 |
|
Senior Unsecured Notes Due September 2024 |
2.7 |
3.35 |
% |
|
|
400,000 |
|
Senior Unsecured Notes Due June 2025 |
3.4 |
5.25 |
% |
|
|
850,000 |
|
Senior Unsecured Notes Due April 2026 |
4.3 |
5.38 |
% |
|
|
975,000 |
|
Senior Unsecured Notes Due June 2028 |
6.4 |
5.75 |
% |
|
|
500,000 |
|
Senior Unsecured Notes Due January 2029 |
7.0 |
5.30 |
% |
|
|
750,000 |
|
Senior Unsecured Notes Due January 2030 |
8.0 |
4.00 |
% |
|
|
700,000 |
|
Senior Unsecured Notes Due January 2031 |
9.0 |
4.00 |
% |
|
|
700,000 |
|
Senior Unsecured Notes due January 2032 |
10.0 |
3.25 |
% |
|
|
800,000 |
|
Other |
4.7 |
4.78 |
% |
|
|
725 |
|
Total long-term debt |
|
|
|
|
6,599,744 |
|
Less: unamortized debt
issuance costs, bond premiums and original issuance discounts |
|
|
|
|
(47,372 |
) |
Total long-term debt,
net of unamortized debt issuance costs, bond premiums and original
issuance discounts |
|
|
|
$ |
6,552,372 |
|
Weighted
average |
5.8 |
4.46 |
% |
|
|
______________________________
(1) The rate on the term loan facility and
revolver is LIBOR plus 1.50%.
(2) Total debt net of cash totaled $5.83
billion at December 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 |
Bally's Master Lease (
2 Properties) |
|
|
|
Tropicana Evansville |
Evansville, IN |
06/03/2021 |
BALY |
Dover Downs |
Dover, DE |
06/03/2021 |
BALY |
Casino Queen Master
Lease (2 Properties) |
|
|
|
Casino Queen |
East St. Louis, IL |
1/23/2014 |
Casino Queen |
Hollywood Casino Baton
Rouge |
Baton Rouge, LA |
12/17/2021 |
Casino Queen |
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 |
Hollywood Casino
Perryville |
Perryville, MD |
7/1/2021 |
PENN |
Live! Hotel & Casino
Maryland |
Hanover, MD |
12/29/2021 |
Cordish |
TRS
Segment |
|
|
|
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 |
Casino Queen Master Lease |
Property Count |
19 |
12 |
6 |
3 |
2 |
2 |
Number of States
Represented |
10 |
8 |
5 |
2 |
2 |
2 |
Commencement Date |
11/1/2013 |
4/28/2016 |
10/1/2018 |
10/15/2018 |
6/3/2021 |
12/17/2021 |
Lease Expiration Date |
10/31/2033 |
4/30/2031 |
9/30/2038 |
04/30/2026 |
06/02/2036 |
12/17/2036 |
Remaining Renewal Terms |
15 (3x5 years) |
20 (4x5 years) |
20 (4x5 years) |
25 (5x5 years) |
20 (4x5 years) |
20 (4x5 years) |
Corporate Guarantee |
Yes |
Yes |
Yes |
No |
Yes |
Yes |
Master Lease with Cross
Collateralization |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage (1) |
1.1 |
1.2 |
1.2 |
1.4 |
1.35 |
1.4 |
Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Escalator
Details |
|
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
2% |
(3) |
2% |
(4) |
(5) |
Coverage ratio at September
30, 2021 (2) |
2.16 |
2.17 |
2.43 |
2.72 |
N/A |
2.40 |
Minimum Escalator Coverage
Governor |
1.8 |
1.8 |
N/A |
1.8 |
N/A |
N/A |
Yearly Anniversary for
Realization |
November |
May |
October |
May |
June |
December |
Percentage Rent Reset
Details |
|
|
|
|
|
|
Reset Frequency |
5 years |
2 years |
N/A |
2 years |
N/A |
N/A |
Next Reset |
November 2023 |
May 2022 |
N/A |
May 2022 |
N/A |
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 over the
trailing twelve months was provided by our tenants as of September
30, 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. |
|
|
(5) |
Rent increases by 0.5% for the first six years. Beginning in the
seventh lease year through the remainder of the lease term, if the
CPI increases by at least 0.25% for any lease year then annual rent
shall be increased by 1.25%, and if the CPI is less than 0.25% then
rent will remain unchanged for such lease year. |
Lease Information
|
|
Single Property Leases |
|
|
|
|
Belterra Park Lease operated by BYD |
PENN-Meadows Lease |
Lumière Place Lease operated by CZR |
PENN - Morgantown Lease |
PENN- Perryville Lease |
Live! Casino & Hotel- Maryland |
Commencement Date |
10/15/2018 |
9/9/2016 |
9/29/2020 |
10/1/2020 |
7/1/2021 |
12/29/2021 |
Lease Expiration Date |
04/30/2026 |
9/30/2026 |
10/31/2033 |
10/31/2040 |
6/30/2041 |
12/31/2060 |
Remaining Renewal Terms |
25 (5x5 years) |
19 (3x5years, 1x4 years) |
20 (4x5 years) |
30 (6x5 years) |
15 (3x5 years) |
21 (1x11 years, 1x10 years) |
Corporate Guarantee |
No |
Yes |
Yes |
Yes |
Yes |
No |
Technical Default Landlord
Protection |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
Default Adjusted Revenue to
Rent Coverage (1) |
1.4 |
1.2 |
1.2 |
N/A |
1.2 |
1.4 |
Competitive Radius Landlord
Protection |
Yes |
Yes |
Yes |
N/A |
Yes |
Yes |
Escalator
Details |
|
|
|
|
|
|
Yearly Base Rent Escalator
Maximum |
2% |
5% (2) |
1.25% (3) |
1.5% (4) |
1.5% (5) |
1.75% (6) |
Coverage ratio at September
30, 2021 (7) |
4.54 |
1.47 |
2.85 |
N/A |
N/A |
N/A |
Minimum Escalator Coverage
Governor |
1.8 |
2.0 |
N/A |
N/A |
N/A |
N/A |
Yearly Anniversary for
Realization |
May |
October |
October |
October |
July |
January 2024 |
Percentage Rent Reset
Details |
|
|
|
|
|
|
Reset Frequency |
2 years |
2 years |
N/A |
N/A |
N/A |
N/A |
Next Reset |
May 2022 |
October 2022 |
N/A |
N/A |
N/A |
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) |
For the second through fifth lease years, after which time the
annual escalation becomes 1.75% for the 6th and 7th lease years and
then 2% for the remaining term of the lease. |
|
|
(4) |
Increases by 1.5% on the opening date and for the first three lease
years. Commencing on the fourth anniversary of the opening date and
for each anniversary thereafter, if the CPI increase is at least
0.5% for any lease year, the rent for such lease year shall
increase by 1.25% of rent as of the immediately preceding lease
year, and if the CPI increase is less than 0.5% for such lease
year, then the rent shall not increase for such lease year. |
|
|
(5) |
Building base rent increase for the second through fourth lease
years, after which time the annual escalation becomes 1.25% to the
extent CPI for the preceding lease year is at least 0.5%. |
|
|
(6) |
Effective on the second anniversary of the commencement date of the
lease. |
|
|
(7) |
Information with respect to our tenants' rent coverage over the
trailing twelve months was provided by our tenants as of September
30, 2021. GLPI has not independently verified the accuracy of the
tenants' information and therefore makes no representation as to
its accuracy. |
Disclosure Regarding Non-GAAP Financial
Measures
FFO, FFO per diluted common share and OP units,
AFFO, AFFO per diluted common share and OP units, Adjusted EBITDA
and REIT Cash NOI, which are detailed in the reconciliation tables
that accompany this release, are used by the Company as performance
measures for benchmarking against the Company’s peers and as
internal measures of business operating performance, which is used
for a bonus metric. These metrics are presented assuming full
conversion of limited partnership units to common shares and
therefore before the income statement impact of non-controlling
interests. The Company believes FFO, FFO per diluted common share
and OP units, AFFO, AFFO per diluted common share and OP units,
Adjusted EBITDA and REIT 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. REIT Cash NOI is
rental and other property income, inclusive of rent credits
recognized during 2020 in connection with the Tropicana Las Vegas
transaction, less cash property level expenses. REIT 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 REIT Cash NOI is a performance measure used
to evaluate the operating performance of the Company’s real estate
operations and provides investors relevant and useful information
because it reflects only income and operating expense items that
are incurred at the property level and presents them on an
unleveraged basis.
FFO, FFO per diluted common share and OP units,
AFFO, AFFO per diluted common share and OP units, Adjusted EBITDA
and REIT 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, (gains) or losses on sales
of operations, net of tax, losses on debt extinguishment, and
provision for credit losses, net, reduced by capital maintenance
expenditures. We have defined Adjusted EBITDA as net income
excluding interest, income tax expense, depreciation, (gains) or
losses from sales of property and (gains) or losses on sales of
operations, net of tax, stock based compensation expense,
straight-line rent adjustments, amortization of land rights, losses
on debt extinguishment, and provision for credit losses, net. 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 REIT 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 and OP units,
AFFO, AFFO per diluted common share and OP units, Adjusted EBITDA
and REIT 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 REIT 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, the Company's position to deliver long-term growth
and extend its long-term record of shareholder value creation 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 Cordish and Bally's,
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, 2021, 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 |
|
|
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From Oct 2024 to Nov 2024
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From Nov 2023 to Nov 2024