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Gaming and Leisure Properties, Inc. Reports Record Fourth Quarter Results, Establishes 2023 Guidance and Announces 2023 First Quarter Dividend of $0.72 per Share and Special Dividend of $0.25 per Share

Gaming and Leisure Properties, Inc.
Gaming and Leisure Properties, Inc.

WYOMISSING, Pa., Feb. 23, 2023 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”) today announced record results for the fourth quarter and year-ended December 31, 2022.

Financial Highlights

 

 

Three Months Ended December 31,

Year Ended December 31,

 

(in millions, except per share data)

 

2022 Actual

 

2021 Actual

2022 Actual

 

2021 Actual

 

Total Revenue

 

$

336.4

 

$

298.3

$

1,311.7

 

$

1,216.4

 

Income From Operations

 

$

275.5

 

$

204.4

$

1,029.9

 

$

841.8

 

Net income

 

$

199.6

 

$

119.6

$

703.3

 

$

534.1

 

FFO(1) (4)

 

$

258.8

 

$

178.0

$

887.3

 

$

765.7

 

AFFO(2) (4)

 

$

239.1

 

$

205.3

$

924.4

 

$

812.0

 

Adjusted EBITDA(3) (4)

 

$

312.0

 

$

277.2

$

1,221.7

 

$

1,096.6

 

Net income, per diluted common share and OP units(4)

 

$

0.75

 

$

0.50

$

2.70

 

$

2.26

 

FFO, per diluted common share and OP units(4)

 

$

0.97

 

$

0.74

$

3.40

 

$

3.24

 

AFFO, per diluted common share and OP units(4)

 

$

0.89

 

$

0.85

$

3.55

 

$

3.44

 


(1) Funds from operations ("FFO") is net income, excluding (gains) or losses from dispositions of property, net of tax and real estate depreciation as defined by NAREIT.

(2) Adjusted Funds from Operations ("AFFO") is FFO, excluding, as applicable to the particular period, stock based compensation expense; the amortization of debt issuance costs, bond premiums and original issuance discounts; other depreciation; amortization of land rights; accretion on investment in leases, financing receivables; non-cash adjustments to financing lease liabilities; impairment charges; straight-line rent adjustments; losses or (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, as applicable to the particular period, interest, net; income tax expense; real estate depreciation; other depreciation; (gains) or losses from dispositions of property, net of tax; (gains) or losses on sales of operations, net of tax; stock based compensation expense; straight-line rent adjustments; amortization of land rights; accretion on investment in leases, financing receivables; non-cash adjustments to financing lease liabilities; impairment charges; 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, “We ended 2022 with record fourth quarter results and increased dividends as our deep, long-term knowledge of the gaming sector has allowed us to continually expand and diversify our tenant base, geographic footprint and rental streams. Reflecting this ongoing expansion, since our establishment as the gaming industry’s first REIT, GLPI has grown from being a landlord with one tenant and 19 properties to become a landlord with six premiere tenants and 57 properties across 17 states as of December 31, 2022. Fourth quarter results again highlight the durability of our rental streams, including the completion of previously announced agreements in late 2021 and in 2022 with The Cordish Companies and Bally’s Corporation, combined with our initiatives to position the Company for further growth through the active management of all aspects of our business and capital structure.

“During the fourth quarter, we continued to successfully and aggressively execute on our long-term strategy to grow rental cash flows while prudently funding our ongoing growth and dividend increases. Early in the quarter we announced an agreement to establish a new master lease for seven PENN Entertainment (“PENN”) properties, including a funding option to allow PENN to pursue attractive growth opportunities in several of its existing markets including Illinois, Ohio and Nevada. The relocation of PENN’s Aurora and Joliet properties in Illinois to new land-based locations with expanded amenities will deliver a superior guest experience at sites with proximity to major thoroughfares and highly trafficked areas. In Ohio, PENN’s proposed hotel at Hollywood Casino Columbus is expected to strengthen the property’s already impressive performance and transform it into a regional destination. Consistent with the leases in our portfolio, this new master lease includes attractive rent and financing terms for both parties under a proven structure that offers GLPI downside protection, while positioning us to benefit from PENN’s long-term growth. Our active support of our leading regional gaming operator tenants through innovative transaction structures has proven to be mutually beneficial and we are confident that this new master lease with PENN will extend our record of success on this front.

“Our ongoing pursuit of growth continues in 2023, as earlier this quarter we completed our previously announced acquisition from Bally's of the real property assets of Bally's Tiverton Casino & Hotel in Rhode Island ("Bally's Tiverton") and Bally's Hard Rock Hotel & Casino Biloxi in Mississippi ("Bally's Biloxi") for $635 million, inclusive of $15 million in the form of OP units, both of which were added to GLPI’s existing master lease with Bally's.   The initial rent for the lease was increased by $48.5 million on an annualized basis. GLPI is positioned to benefit from Bally’s long-term growth as we have the option, subject to receipt by Bally's of required consents, to acquire the real property assets of Bally's Twin River Lincoln Casino Resort in Lincoln, RI ("Bally's Lincoln") prior to December 31, 2024 for a purchase price of $771 million and additional rent of $58.8 million.

“Looking forward, we believe GLPI is well positioned to deliver long-term growth based on our gaming operator relationships, our rights and options to participate in select tenants’ future growth and expansion initiatives, and our ability to structure and fund innovative transactions at competitive rates. Our tenants' strength, combined with GLPI’s balance sheet and liquidity, position the Company to consistently grow its cash flows and build value for shareholders in 2023 and beyond.”

Recent Developments

  • On January 13, 2023, the Company called for redemption all of the $500 million, 5.375% Senior Notes (the "Notes") due in 2023. GLPI redeemed all of the Notes on February 12, 2023 (the "Redemption Date") for $507.5 million which represented 100% of the principal amount of the Notes plus accrued interest through the Redemption Date. GLPI funded the redemption of the Notes primarily from cash on hand.

  • On January 3, 2023, the Company completed its previously announced acquisition from Bally's Corporation (NYSE: BALY) ("Bally's") of the real property assets of Bally's Tiverton and Bally's Biloxi for consideration of $635 million, inclusive of $15 million in the form of OP units. These properties were added to the Company's existing Master Lease with Bally's. The initial rent for the lease was increased by $48.5 million on an annualized basis, subject to contractual escalations based on the Consumer Price Index ("CPI"), with a 1% floor and a 2% ceiling, subject to CPI meeting a 0.5% threshold.

    In connection with the closing, a $200 million deposit funded by GLPI in September 2022 was returned to the Company along with a $9.0 million transaction fee that will be accounted for as a reduction of the purchase price of the assets acquired with no earnings impact. Concurrent with the closing, GLPI borrowed $600 million under its previously structured delayed draw term loan.

    GLPI continues to have the option, subject to receipt by Bally's of required consents to acquire the real property assets of Bally's Lincoln prior to December 31, 2024, for a purchase price of $771 million and additional initial rent of $58.8 million.

  • In December 2022, the Company entered into a new continuous equity offering under which the Company may sell up to $1 billion of its common stock from time to time through a sales agent in "at the market" ("ATM") offerings. The Company continues to have the full $1 billion capacity as of the date of this release.

    Other Significant Developments

  • On October 10, 2022, the Company announced that it agreed to create a new master lease with PENN for seven of PENN's current properties. The Company and PENN also agreed to a funding mechanism to support PENN's pursuit of relocation and development opportunities at several of the properties included in the new master lease. The transaction, including the creation of the new master lease became effective as of January 1, 2023.

    Pursuant to the terms agreed upon by the parties, the current PENN master lease was amended to remove PENN's properties in Aurora and Joliet, Illinois, Columbus and Toledo, Ohio, and Henderson, Nevada. Those properties were added to the new master lease. In addition, the existing leases for the Hollywood Casino at The Meadows in Pennsylvania and Hollywood Casino Perryville in Maryland were terminated and these properties were transferred to the new master lease. GLPI agreed to fund up to $225 million for the relocation of PENN's riverboat casino in Aurora at a 7.75% cap rate. GLPI also agreed to fund, at PENN's election, up to an additional $350 million for the relocation of the Hollywood Casino Joliet as well as the construction of hotels at Hollywood Casino Columbus and a second hotel tower at the M Resort Spa Casino at then current market rates.

    The terms of the new master lease and the amended PENN master lease are substantially similar to the current PENN master lease with the following key differences;

    • The new master lease is cross-defaulted and co-terminus with the existing PENN master lease.

    • The initial term of the new master lease expires on October 31, 2033, with three 5-year extensions at PENN’s option.

    • All rent in the new master lease is fixed with annual escalation of 1.50%, with the first escalation occurring for the lease year beginning on November 1, 2023.

    • The rent for the new lease is $232.2 million in base rent. The rent for the original PENN master lease is $284.1 million, consisting of $208.2 million of building base rent, $43.0 million of land base rent, and $32.9 million of percentage rent.

  • On September 26, 2022, the Company closed on its previously announced transaction whereby Bally's acquired both GLPI's non-land real estate assets and PENN's outstanding equity interests in Tropicana Las Vegas Hotel and Casino, Inc. ("Tropicana Las Vegas") for an aggregate cash acquisition price, net of fees and expenses, of approximately $145 million, which resulted in a pre-tax gain of $67.4 million. GLPI retained ownership of the land and concurrently entered into a 50-year ground lease with Bally's for an initial annual cash rent of $10.5 million. The ground lease is supported by a Bally’s corporate guarantee and cross-defaulted with the Bally’s Master Lease.

  • On August 19, 2022, the Company entered into a forward sale agreement (the "August 2022 Forward Sale Agreement"), for up to $105 million. No amounts have been or will be recorded on the Company's balance sheet with respect to the August 2022 Forward Sale Agreement until settlement. The Company settled the August 2022 Forward Sale Agreement in February 2023, utilizing the proceeds of $64.6 million to partially fund the redemption of the Notes that were redeemed as described above.

  • In addition to the ATM shares sold pursuant to the forward agreement, during the fourth quarter and third quarter of 2022, the Company sold 3,171,776 shares and 2,034,723 shares of its common stock, respectively, under its regular way ATM program raising net proceeds of $156.4 million and $104.4 million, respectively.

  • On July 1, 2022, the Company issued 7,935,000 shares of its common stock, generating proceeds of approximately $350.8 million.

  • On May 13, 2022, GLP Capital terminated its credit facility that was scheduled to mature on May 21, 2023 that was guaranteed by the Company and entered into a new credit agreement that provides for a $1.75 billion revolving credit facility with a maturity of four years, subject to two six-month extensions at GLP Capital's option, and that is guaranteed by the Company. The Company recorded a debt extinguishment charge of $2.2 million in connection with this transaction.

  • On April 1, 2022, GLPI completed its previously announced acquisition from Bally's of the land and real estate assets of Bally's three casinos in Black Hawk, Colorado, and Bally's Quad Cities Casino & Hotel in Rock Island, Illinois, for total consideration of $150 million. These properties were added to the Bally's Master Lease, with the rent for the Bally's Master Lease increased by $12.0 million on an annual basis. The rent is subject to contractual escalations based on the CPI, with a 1% floor and a 2% ceiling, subject to the CPI meeting a 0.5% threshold.

  • On March 1, 2022, GLPI completed the acquisition of the land and real estate assets of Live! Casino & Hotel Philadelphia ("Live! Philadelphia") and Live! Casino Pittsburgh ("Live! Pittsburgh") from The Cordish Companies ("Cordish") for total consideration of approximately $689 million (inclusive of transaction costs). The Company funded the acquisition by assuming approximately $423 million in debt (which the Company repaid) and issuing approximately $137 million of operating partnership units (approximately 3.0 million total units), with the balance paid from cash on hand, which was in part generated by its December 2021 issuance of senior unsecured notes and common stock.

  • Simultaneous with the March 1, 2022 closing of the above transaction, the Company entered into a master lease with Cordish (the "Pennsylvania Live! Master Lease"), pursuant to which Cordish will continue its ownership, control and management of the operations of Live! Philadelphia and Live! Pittsburgh. The Pennsylvania Live! Master Lease has an initial annual rent of $50.0 million and an initial term of 39 years, with a maximum term of 60 years, inclusive of tenant renewal options, as well as a fixed annual lease escalation of 1.75% on the entirety of rent commencing on the lease's second anniversary.

  • On December 29, 2021, the Company completed the acquisition of the land and real estate assets of Live! Casino & Hotel Maryland ("Live! Maryland") from Cordish for total consideration of $1.16 billion (inclusive of transaction costs). Cordish and the Company entered into a lease with Cordish (the "Maryland Live! Lease"), pursuant to which Cordish will continue its ownership, control and management of the operations of Live! Maryland. The Maryland Live! Lease has an initial annual rent of $75 million and an initial term of 39 years, with a maximum term of 60 years, inclusive of tenant renewal options, as well as a fixed annual lease escalation of 1.75% on the entirety of rent commencing on the lease's second anniversary. The transaction also includes a 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 funded the transaction by assuming $363 million in debt, which was repaid, and issuing $205 million of operating partnership units (4.35 million total units), with the balance of the consideration from cash on hand, which in part was generated by GLPI's December 2021 issuance of senior unsecured notes and common stock.

Dividends

On November 23, 2022, the Company's Board of Directors declared a fourth quarter dividend of $0.705 per share on the Company's common stock. The dividend was paid on December 23, 2022 to shareholders of record on December 9, 2022.

On February 22, 2023, the Company's Board of Directors declared a first quarter dividend of $0.72 per share on the Company's common stock as well as a special earnings and profit dividend of $0.25 per share related to the sale of the Tropicana Las Vegas building. These dividends will be payable on March 24, 2023 to shareholders of record on March 10, 2023.

2023 Guidance

Reflecting the current operating and competitive environment, the Company is providing AFFO guidance for the full year 2023 based on the following assumptions and other factors:

  • The guidance does not include the impact on operating results from any pending or possible future acquisitions or dispositions, future capital markets activity, or other future non-recurring transactions.

  • The guidance assumes there will be no material changes in applicable legislation, regulatory environment, world events, including another COVID-19 or other new pandemic outbreak, weather, recent consumer trends, economic conditions, oil prices, competitive landscape or other circumstances beyond our control that may adversely affect the Company's results of operations.

The Company estimates AFFO for the year ending December 31, 2023 will be between $980 million and $997 million, or between $3.61 and $3.67 per diluted share and OP units.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.   This is due to the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, provision for credit losses, net, acquisition costs and other non-core items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted.   For the same reasons, the Company is unable to address the probable significance of the unavailable information.   In particular, the Company is unable to predict with reasonable certainty the amount of the change in the provision for credit losses, net, under ASU No. 2016-13 - Financial Instruments - Credit Losses ("ASC 326") in future periods.   The non-cash change in the provision for credit losses under ASC 326 with respect to future periods is dependent upon future events that are entirely outside of the Company's control and may not be reliably predicted, including the performance and future outlook of our tenant's operations for our leases that are accounted for as investment in leases, financing receivables, as well as broader macroeconomic factors and future predictions of such factors.   As a result, forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

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, 2022, GLPI's portfolio consisted of interests in 57 gaming and related facilities, the real property associated with 34 gaming and related facilities operated by PENN, the real property associated with 7 gaming and related facilities operated by Caesars Entertainment, Inc. (NASDAQ: CZR), the real property associated with 4 gaming and related facilities operated by Boyd Gaming Corporation (NYSE: BYD), the real property associated with 7 gaming and related facilities operated by Bally's, the real property associated with 3 gaming and related facilities 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 27.8 million square feet of improvements. The figures above do not reflect the January 3, 2023 acquisition of the real property assets of Bally's Biloxi and Bally's Tiverton, which added 2.4 million of property square footage and diversified the Company into Rhode Island.

Conference Call Details

The Company will hold a conference call on February 24, 2023 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: 1-877/407-0784
International: 1-201/689-8560

Conference Call Playback:
Domestic: 1-844/512-2921
International: 1-412/317-6671
Passcode: 13735382
The playback can be accessed through Friday, March 3, 2023.

Webcast
The conference call will be available in the Investor Relations section of the Company's website at www.glpropinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary 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 SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues

 

 

 

 

 

 

 

Rental income

$

299,246

 

 

$

285,461

 

 

$

1,173,376

 

 

$

1,106,658

 

Income from investment in leases, financing receivables

 

37,142

 

 

 

 

 

 

138,309

 

 

 

 

Total income from real estate

 

336,388

 

 

 

285,461

 

 

 

1,311,685

 

 

 

1,106,658

 

Gaming, food, beverage and other

 

 

 

 

12,874

 

 

 

 

 

 

109,693

 

Total revenues

 

336,388

 

 

 

298,335

 

 

 

1,311,685

 

 

 

1,216,351

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Gaming, food, beverage and other

 

 

 

 

4,965

 

 

 

 

 

 

53,039

 

Land rights and ground lease expense

 

11,870

 

 

 

13,052

 

 

 

49,048

 

 

 

37,390

 

General and administrative

 

11,315

 

 

 

15,276

 

 

 

51,319

 

 

 

61,245

 

Gains from dispositions

 

 

 

 

(7,029

)

 

 

(67,481

)

 

 

(21,751

)

Impairment charge on land

 

 

 

 

 

 

 

3,298

 

 

 

 

Depreciation

 

59,708

 

 

 

59,401

 

 

 

238,688

 

 

 

236,434

 

Provision for credit losses, net

 

(21,961

)

 

 

8,226

 

 

 

6,898

 

 

 

8,226

 

Total operating expenses

 

60,932

 

 

 

93,891

 

 

 

281,770

 

 

 

374,583

 

Income from operations

 

275,456

 

 

 

204,444

 

 

 

1,029,915

 

 

 

841,768

 

 

 

 

 

 

 

 

 

Other income (expenses)

 

 

 

 

 

 

 

Interest expense

 

(76,538

)

 

 

(71,779

)

 

 

(309,291

)

 

 

(283,037

)

Interest income

 

1,293

 

 

 

13

 

 

 

1,905

 

 

 

197

 

Insurance gain

 

 

 

 

3,500

 

 

 

 

 

 

3,500

 

Losses on debt extinguishment

 

 

 

 

 

 

 

(2,189

)

 

 

 

Total other expenses

 

(75,245

)

 

 

(68,266

)

 

 

(309,575

)

 

 

(279,340

)

 

 

 

 

 

 

 

 

Income before income taxes

 

200,211

 

 

 

136,178

 

 

 

720,340

 

 

 

562,428

 

Income tax provision

 

624

 

 

 

16,551

 

 

 

17,055

 

 

 

28,342

 

Net income

$

199,587

 

 

$

119,627

 

 

$

703,285

 

 

$

534,086

 

Less: Net income attributable to non-controlling interest in Operating Partnership

 

(5,470

)

 

 

(39

)

 

 

(18,632

)

 

 

(39

)

Net income attributable to common shareholders

$

194,117

 

 

$

119,588

 

 

$

684,653

 

 

$

534,047

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Basic earnings attributable to common shareholders

$

0.75

 

 

$

0.50

 

 

$

2.71

 

 

$

2.27

 

Diluted earnings attributable to common shareholders

$

0.75

 

 

$

0.50

 

 

$

2.70

 

 

$

2.26

 

  

GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
Current Year Revenue Detail
(in thousands) (unaudited)

Three Months Ended December 31, 2022

Building base rent

Land base rent

Percentage rent

Total cash income

Straight
line rent

Ground rent in revenue

Accretion on financing leases

Other
rental revenue

Total rental income

PENN Master Lease

$

72,198

$

23,492

$

23,934

$

119,624

$

(3,394

)

$

572

$

$

$

116,802

Amended Pinnacle Master Lease

 

59,095

 

17,814

 

7,164

 

84,073

 

1,858

 

 

2,204

 

 

 

88,135

PENN Meadows Lease

 

3,953

 

 

2,040

 

5,993

 

572

 

 

 

 

183

 

6,748

PENN Morgantown Lease

 

 

762

 

 

762

 

 

 

 

 

 

762

PENN Perryville Lease

 

1,479

 

486

 

 

1,965

 

38

 

 

 

 

 

2,003

Caesars Master Lease

 

15,823

 

5,933

 

 

21,756

 

2,394

 

 

378

 

 

 

24,528

Horseshoe St. Louis Lease

 

5,844

 

 

 

5,844

 

472

 

 

 

 

 

6,316

Boyd Master Lease

 

19,674

 

2,946

 

2,566

 

25,186

 

574

 

 

432

 

 

 

26,192

Boyd Belterra Lease

 

696

 

474

 

472

 

1,642

 

151

 

 

 

 

 

1,793

Bally's Master Lease

 

13,260

 

 

 

13,260

 

 

 

2,537

 

 

 

15,797

Maryland Live! Lease

 

18,750

 

 

 

18,750

 

 

 

2,155

 

3,227

 

 

24,132

Pennsylvania Live! Master Lease

 

12,500

 

 

 

12,500

 

 

 

302

 

2,112

 

 

14,914

Casino Queen Master Lease

 

5,534

 

 

 

5,534

 

107

 

 

 

 

 

5,641

Tropicana Las Vegas Lease

 

 

2,625

 

 

2,625

 

 

 

 

 

 

2,625

Total

$

228,806

$

54,532

$

36,176

$

319,514

$

2,772

 

$

8,580

$

5,339

$

183

$

336,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2022

Building base rent

Land base rent

Percentage rent

Total cash income

Straight
line rent

Ground rent in revenue

Accretion on financing leases

Other
rental revenue

Total rental income

PENN Master Lease

$

285,944

$

93,969

$

97,423

$

477,336

$

(11,700

)

$

2,495

$

$

$

468,131

Amended Pinnacle Master Lease

 

234,835

 

71,256

 

28,030

 

334,121

 

(1,494

)

 

8,173

 

 

 

340,800

PENN Meadows Lease

 

15,811

 

 

8,824

 

24,635

 

2,289

 

 

 

 

589

 

27,513

PENN Morgantown Lease

 

 

3,047

 

 

3,047

 

 

 

 

 

 

3,047

PENN Perryville Lease

 

5,871

 

1,943

 

 

7,814

 

196

 

 

 

 

 

8,010

Caesars Master Lease

 

62,709

 

23,729

 

 

86,438

 

10,162

 

 

1,512

 

 

 

98,112

Horseshoe St. Louis Lease

 

23,161

 

 

 

23,161

 

2,103

 

 

 

 

 

25,264

Boyd Master Lease

 

78,184

 

11,785

 

10,124

 

100,093

 

2,296

 

 

1,729

 

 

 

104,118

Boyd Belterra Lease

 

2,764

 

1,894

 

1,865

 

6,523

 

 

 

 

 

 

6,523

Bally's Master Lease

 

49,598

 

 

 

49,598

 

 

 

9,603

 

 

 

59,201

Maryland Live! Lease

 

75,000

$

 

 

75,000

 

 

 

8,521

 

12,569

 

 

96,090

Pennsylvania Live! Master Lease

 

41,667

$

 

 

41,667

 

 

 

1,001

 

6,873

 

 

49,541

Casino Queen Master Lease

 

22,122

 

 

 

22,122

 

442

 

 

 

 

 

22,564

Tropicana Las Vegas Lease

 

 

2,771

 

 

2,771

 

 

 

 

 

 

2,771

Total

$

897,666

$

210,394

$

146,266

$

1,254,326

$

4,294

 

$

33,034

$

19,442

$

589

$

1,311,685


Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, and AFFO to Adjusted EBITDA
Gaming and Leisure Properties, Inc. and Subsidiaries
CONSOLIDATED
(in thousands, except per share and share data) (unaudited)

                

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income

$

199,587

 

 

$

119,627

 

 

$

703,285

 

 

$

534,086

 

(Gains) losses from dispositions of property, net of tax

 

 

 

 

(206

)

 

 

(52,844

)

 

 

711

 

Real estate depreciation

 

59,240

 

 

 

58,564

 

 

 

236,809

 

 

 

230,941

 

Funds from operations

$

258,827

 

 

$

177,985

 

 

$

887,250

 

 

$

765,738

 

Straight-line rent adjustments

 

(2,772

)

 

 

(1,449

)

 

 

(4,294

)

 

 

(3,993

)

Other depreciation(1)

 

468

 

 

 

837

 

 

 

1,879

 

 

 

5,493

 

Amortization of land rights

 

3,289

 

 

 

6,445

 

 

 

15,859

 

 

 

15,616

 

Amortization of debt issuance costs, bond premiums and original issuance discounts

 

2,377

 

 

 

2,519

 

 

 

9,975

 

 

 

9,929

 

Accretion on investment in leases, financing receivables

 

(5,339

)

 

 

 

 

 

(19,442

)

 

 

 

Non-cash adjustment to financing lease liabilities

 

123

 

 

 

 

 

 

483

 

 

 

 

Stock based compensation

 

4,183

 

 

 

3,645

 

 

 

20,427

 

 

 

16,831

 

Loss (gain) on sale of operations, net of tax

 

 

 

 

7,730

 

 

 

 

 

 

(3,560

)

Losses on debt extinguishment

 

 

 

 

 

 

 

2,189

 

 

 

 

Impairment charge on land

 

 

 

 

 

 

 

3,298

 

 

 

 

Provision for credit losses, net

 

(21,961

)

 

 

8,226

 

 

 

6,898

 

 

 

8,226

 

Capital maintenance expenditures(2)

 

(57

)

 

 

(615

)

 

 

(159

)

 

 

(2,270

)

Adjusted funds from operations

$

239,138

 

 

$

205,323

 

 

$

924,363

 

 

$

812,010

 

Interest, net(3)

 

74,570

 

 

 

71,766

 

 

 

304,703

 

 

 

282,840

 

Income tax expense

 

624

 

 

 

1,998

 

 

 

2,418

 

 

 

9,440

 

Capital maintenance expenditures(2)

 

57

 

 

 

615

 

 

 

159

 

 

 

2,270

 

Amortization of debt issuance costs, bond premiums and original issuance discounts

 

(2,377

)

 

 

(2,519

)

 

 

(9,975

)

 

 

(9,929

)

Adjusted EBITDA

$

312,012

 

 

$

277,183

 

 

$

1,221,668

 

 

$

1,096,631

 

 

 

 

 

 

 

 

 

Net income, per diluted common shares and OP units

$

0.75

 

 

$

0.50

 

 

$

2.70

 

 

$

2.26

 

FFO, per diluted common share and OP units

$

0.97

 

 

$

0.74

 

 

$

3.40

 

 

$

3.24

 

AFFO, per diluted common share and OP units

$

0.89

 

 

$

0.85

 

 

$

3.55

 

 

$

3.44

 

 

 

 

 

 

 

 

 

Weighted average number of common shares and OP units outstanding

 

 

 

 

 

 

 

Diluted common shares

 

260,365,257

 

 

 

241,369,486

 

 

 

253,846,475

 

 

 

236,230,630

 

OP units

 

7,366,683

 

 

 

141,808

 

 

 

6,878,857

 

 

 

35,743

 

Diluted common shares and OP units

 

267,731,940

 

 

 

241,511,294

 

 

 

260,725,332

 

 

 

236,266,373

 

(1) Other depreciation includes both real estate and equipment depreciation from the Company's taxable 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) Current year amounts excludes non-cash interest expense gross up related to the ground lease for the Live! Maryland property.


Reconciliation of Cash Net Operating Income
Gaming and Leisure Properties, Inc. and Subsidiaries
CONSOLIDATED
(in thousands, except per share and share data) (unaudited)

                

 

Three Months Ended
December 31, 2022

 

Year Ended
December 31, 2022

Adjusted EBITDA

$

312,012

 

 

$

1,221,668

 

General and administrative expenses

 

11,315

 

 

 

51,319

 

Stock based compensation

 

(4,183

)

 

 

(20,427

)

Cash net operating income(1)

 

319,144

 

 

 

1,252,560

 

(1) Cash net operating income is rental and other property income less cash property level expenses.


Gaming and Leisure Properties, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share data)

 

December 31, 2022

 

December 31, 2021

 

 

 

 

Assets

 

 

 

Real estate investments, net

$

7,707,935

 

 

$

7,777,551

 

Investment in leases, financing receivables, net

 

1,903,195

 

 

 

1,201,670

 

Assets held for sale

 

 

 

 

77,728

 

Right-of-use assets and land rights, net

 

834,067

 

 

 

851,819

 

Cash and cash equivalents

 

239,083

 

 

 

724,595

 

Other assets

 

246,106

 

 

 

57,086

 

Total assets

$

10,930,386

 

 

$

10,690,449

 

 

 

 

 

Liabilities

 

 

 

Accounts payable, dividend payable and accrued expenses

$

6,561

 

 

$

63,543

 

Accrued interest

 

82,297

 

 

 

71,810

 

Accrued salaries and wages

 

6,742

 

 

 

6,798

 

Operating lease liabilities

 

181,965

 

 

 

183,945

 

Financing lease liabilities

 

53,792

 

 

 

53,309

 

Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts

 

6,128,468

 

 

 

6,552,372

 

Deferred rental revenue

 

324,774

 

 

 

329,068

 

Other liabilities

 

27,691

 

 

 

39,464

 

Total liabilities

 

6,812,290

 

 

 

7,300,309

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at December 31, 2022 and December 31, 2021)

 

 

 

 

 

Common stock ($.01 par value, 500,000,000 shares authorized, 260,727,030 shares and 247,206,937 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively)

 

2,607

 

 

 

2,472

 

Additional paid-in capital

 

5,573,567

 

 

 

4,953,943

 

Retained deficit

 

(1,798,216

)

 

 

(1,771,402

)

Total equity attributable to Gaming and Leisure Properties

 

3,777,958

 

 

 

3,185,013

 

Noncontrolling interests in GLPI's Operating Partnership (7,366,683 units and 4,348,774 units outstanding at December 31, 2022 and December 31, 2021, respectively)

 

340,138

 

 

 

205,127

 

Total equity

 

4,118,096

 

 

 

3,390,140

 

Total liabilities and equity

$

10,930,386

 

 

$

10,690,449

 


Debt Capitalization

The Company’s debt structure as of December 31, 2022 was as follows:

 

 

 

 

 

 

Years to
Maturity

Interest Rate

 

Balance

 

 

 

 

 

(in thousands)

Unsecured $1,750 Million Revolver Due May 2026

 

3.4

%

 

 

 

Term Loan Credit Facility

 

4.7

%

 

 

 

Senior Unsecured Notes Due November 2023

 

0.8

5.375

%

 

 

500,000

 

Senior Unsecured Notes Due September 2024

 

1.7

3.350

%

 

 

400,000

 

Senior Unsecured Notes Due June 2025

 

2.4

5.250

%

 

 

850,000

 

Senior Unsecured Notes Due April 2026

 

3.3

5.375

%

 

 

975,000

 

Senior Unsecured Notes Due June 2028

 

5.4

5.750

%

 

 

500,000

 

Senior Unsecured Notes Due January 2029

 

6.0

5.300

%

 

 

750,000

 

Senior Unsecured Notes Due January 2030

 

7.0

4.000

%

 

 

700,000

 

Senior Unsecured Notes Due January 2031

 

8.0

4.000

%

 

 

700,000

 

Senior Unsecured Notes due January 2032

 

9.0

3.250

%

 

 

800,000

 

Other

 

3.7

4.780

%

 

 

583

 

Total long-term debt

 

 

 

 

 

6,175,583

 

Less: unamortized debt issuance costs, bond premiums and original issuance discounts

 

 

 

 

 

(47,115

)

Total long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts

 

 

 

 

$

6,128,468

 

Weighted average

 

5.1

4.660

%

 

 

 

 

 

 

 

 



Rating Agency Update - Issue Rating

Rating Agency

 

Rating

Standard & Poor's

 

BBB-

Fitch

 

BBB-

Moody's

 

Ba1


Properties (1)

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

Caesars 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

Boyd 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 ( 6 Properties)

 

 

 

Tropicana Evansville

Evansville, IN

06/03/2021

BALY

Dover Downs

Dover, DE

06/03/2021

BALY

Black Hawk (Black Hawk North, West and East casinos)

Black Hawk, CO

4/1/2022

BALY

Quad Cities Casino & Hotel

Rock Island, IL

4/01/2022

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

Pennsylvania Live! Master Lease (2 Properties)

 

 

 

Live! Casino & Hotel Philadelphia

Philadelphia, PA

3/01/2022

Cordish

Live! Casino Pittsburgh

Greensburg, PA

3/01/2022

Cordish

 

 

 

 

Single Asset Leases

 

 

 

Belterra Park Gaming & Entertainment Center

Cincinnati, OH

10/15/2018

BYD

Horseshoe St. Louis

St. Louis, MO

10/1/2018

CZR

Hollywood Casino at the Meadows

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! Casino & Hotel Maryland

Hanover, MD

12/29/2021

Cordish

Tropicana Las Vegas

Las Vegas, NV

4/16/2020

BALY

(1) Table above represents properties owned as of December 31, 2022 and therefore excludes the January 3, 2023 acquisition of Bally's Tiverton and Bally's Biloxi which were added to the Bally's Master Lease.


Lease Information

 

Master Leases

 

 

 

 

PENN
Master
Lease

PENN
Amended
Pinnacle
Master
Lease

Caesars
Amended and Restated
Master Lease

Boyd Master
Lease

Bally's Master Lease

Casino Queen Master Lease

Pennsylvania
Live! Master
Lease
operated by Cordish

Property Count

19

12

6

3

6

2

2

Number of States Represented

10

8

5

2

4

2

1

Commencement Date

11/1/2013

4/28/2016

10/1/2018

10/15/2018

6/3/2021

12/17/2021

3/1/2022

Lease Expiration Date

10/31/2033

4/30/2031

9/30/2038

04/30/2026

06/02/2036

12/17/2036

2/28/2061

Remaining Renewal Terms

15 (3x5 years)

20 (4x5 years)

20 (4x5 years)

25 (5x5 years)

20 (4x5 years)

20 (4x5 years)

21 (1 X 11 years, 1 X 10 years)

Corporate Guarantee

Yes

Yes

Yes

No

Yes

Yes

No

Master Lease with Cross Collateralization

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Technical Default Landlord Protection

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Default Adjusted Revenue to Rent Coverage

1.1

1.2

1.2

1.4

1.35(1)

1.4

1.4

Competitive Radius Landlord Protection

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Escalator Details

 

 

 

 

 

 

 

Yearly Base Rent Escalator Maximum

2%

2%

(3)

2%

(4)

(5)

1.75 (6)

Coverage ratio at September 30, 2022(2)

2.21

2.23

2.48

2.81

2.52

2.76

N/A

Minimum Escalator Coverage Governor

1.8

1.8

N/A

1.8

N/A

N/A

N/A

Yearly Anniversary for Realization

November

May

October

May

June

December

March 2024

Percentage Rent Reset Details

 

 

 

 

 

 

 

Reset Frequency

5 years

2 years

N/A

2 years

N/A

N/A

N/A

Next Reset

November 2023

May 2024

N/A

May 2024

N/A

N/A

N/A

(1) 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, 2022. The Casino Queen Master Lease is calculated on a proforma basis for the addition of Hollywood Casino Baton Rouge which occurred in December 2021. GLPI has not independently verified the accuracy of the tenants' information and therefore makes no representation as to its accuracy.

(3) 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.

(4) If the CPI increase is at least 0.5% for any lease year, then the rent 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.
  
(6) Effective on the second anniversary of the commencement date of the lease.


Lease Information

 

 

Single Property Leases

 

 

 

 

 

Belterra Park Lease
operated by
Boyd

Meadows
Lease
operated by
PENN

Horseshoe St. Louis Lease operated by
CZR

Morgantown Ground
Lease
operated by
PENN

Perryville
Lease
operated by
PENN

Live! Casino
& Hotel-
Maryland
operated by Cordish

Tropicana Las Vegas Ground Lease
operated by 
BALY

Commencement Date

10/15/2018

9/9/2016

9/29/2020

10/1/2020

7/1/2021

12/29/2021

9/26/2022

Lease Expiration Date

04/30/2026

9/30/2026

10/31/2033

10/31/2040

6/30/2041

12/31/2060

9/25/2072

Remaining Renewal Terms

25 (5x5 years)

19 (3x5years, 1x4 years)

20 (4x5 years)

30 (6x5 years)

15 (3x5 years)

21 (1x11 years, 1x10 years)

49 (1 x 24 years, 1 x 25 years)

Corporate Guarantee

No

Yes

Yes

Yes

Yes

No

Yes

Technical Default Landlord Protection

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Default Adjusted Revenue to Rent Coverage

1.4

1.2

1.2

N/A

1.2

1.4

1.4

Competitive Radius Landlord Protection

Yes

Yes

Yes

N/A

Yes

Yes

Yes

Escalator Details

 

 

 

 

 

 

 

Yearly Base Rent Escalator Maximum

2%

5%(1)

1.25%(2)

1.5%(3)

1.5%(4)

1.75%(5)

(6)

Coverage ratio at September 30, 2022(7)

4.31

1.85

2.30

N/A

3.19

N/A

N/A

Minimum Escalator Coverage Governor

1.8

2.0

N/A

N/A

N/A

N/A

N/A

Yearly Anniversary for Realization

May

October

October

December

July

January 2024

October

Percentage Rent Reset Details

 

 

 

 

 

 

 

Reset Frequency

2 years

2 years

N/A

N/A

N/A

N/A

N/A

Next Reset

May 2024

October 2024

N/A

N/A

N/A

N/A

N/A

(1) 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%.

(2) 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.

(3) Increases by 1.5% on the opening date (which occurred on December 22, 2021) 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.

(4) Building base rent increases 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%.

(5) Effective on the second anniversary of the commencement date of the lease.

(6) If the CPI increase is at least 0.5% for any lease year, then the rent 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.

(7) Information with respect to our tenants' rent coverage over the trailing twelve months was provided by our tenants as of September 30, 2022. 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 Cash Net Operating Income ("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 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, 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 and OP units, AFFO, AFFO per diluted common share and OP units, 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 dispositions of property, net of tax and real estate depreciation.  We have defined AFFO as FFO excluding, as applicable to the particular period, stock based compensation expense, the amortization of debt issuance costs, bond premiums and original issuance discounts, other depreciation, the amortization of land rights, accretion on investment in leases, financing receivables, non-cash adjustments to financing lease liabilities, impairment charges, straight-line rent adjustments, losses or (gains) 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, as applicable to the particular period, interest, net, income tax expense, real estate depreciation, other depreciation, (gains) or losses from dispositions of property, net of tax, (gains) or losses on sales of operations, net of tax, stock based compensation expense, straight-line rent adjustments, the amortization of land rights, accretion on investment in leases, financing receivables, non-cash adjustments to financing lease liabilities, impairment charges, 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 Cash NOI as Adjusted EBITDA excluding general and administrative expenses and including, as applicable to the particular period, stock based compensation expense and (gains) or losses from dispositions of property.

FFO, FFO per diluted common share and OP units, AFFO, AFFO per diluted common share and OP units, 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 diluted common share, AFFO, AFFO per diluted common 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 2023 AFFO guidance and the Company being positioned to deliver long-term growth through portfolio expansion and diversification and to benefit from Bally's and PENN's long-term growth. 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 such pandemics may have on the business operations of GLPI's tenants and their continued ability to pay rent in a timely manner or at all; the potential negative impact of recent high levels of inflation (which have been exacerbated by the armed conflict between Russia and Ukraine) on our tenants' operations; 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, 2022, 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

 

glpi@jcir.com