Nasdaq:GLPI
Gaming and Leisure Properties Reports First Quarter 2024 Results and Updates 2024 Full Year Guidance
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WYOMISSING, Pa., April 25, 2024 (GLOBE NEWSWIRE) — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”) today announced financial results for the quarter ended March 31, 2024.
Financial Highlights
Three Months Ended March 31, | ||||||||
(in millions, except per share data) | 2024 | 2023 | ||||||
Total Revenue | $ | 376.0 | $ | 355.2 | ||||
Income from Operations | $ | 257.6 | $ | 266.8 | ||||
Net Income | $ | 179.5 | $ | 188.7 | ||||
FFO (1) (4) | $ | 244.4 | $ | 253.8 | ||||
AFFO (2) (4) | $ | 258.6 | $ | 248.6 | ||||
Adjusted EBITDA (3) (4) | $ | 333.4 | $ | 323.1 | ||||
Net income, per diluted common share and OP units (4) | $ | 0.64 | $ | 0.70 | ||||
FFO, per diluted common share and OP units (4) | $ | 0.87 | $ | 0.94 | ||||
AFFO, per diluted common share and OP units (4) | $ | 0.92 | $ | 0.92 |
________________________________
(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; property transfer tax recoveries and impairment charges; straight-line rent adjustments; losses on debt extinguishment; and provision (benefit) 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; 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; property transfer tax recoveries and impairment charges; losses on debt extinguishment and provision (benefit) 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, “GLPI’s consistent cash flow generation, based on our work with the industry’s leading operators, led to record first quarter results across key financial metrics when excluding the non-cash impact of a nearly $29 million year-over-year change in our reserve for credit losses, net. On an operating basis, first quarter total revenue rose 5.8% year over year to $376.0 million and AFFO grew 4.0%. Our first quarter growth reflects GLPI’s stable portfolio of gaming operator tenants combined with our liquidity and capital markets discipline. Collectively, our strategies have set the stage for continued growth and dividend increases as highlighted by the March 2024 dividend payment of $0.76 per share, which when annualized, results in a yield of approximately 7% based on yesterday’s closing share price. With our opportunistic approach to portfolio expansion, the proven long-term resiliency of our tenants’ revenue streams, and comfortable rent coverage ratios across our portfolio, we expect to continue to deliver strong capital returns and yields for our shareholders.
“Consistent with our focus on working with the nation’s best gaming operators and strict adherence to risk management policies, we further expanded our footprint and portfolio in the first quarter through the acquisition of the real estate assets of Tioga Downs Casino Resort in Nichols, NY from American Racing & Entertainment, LLC. Tioga Downs is a high-quality, recently expanded asset with significant geographic protection from competition. Simultaneous with the acquisition, GLPI and American Racing entered into a triple-net lease agreement for an initial 30-year term. The initial annual rent for the new lease represents an 8.3% capitalization rate and the rent coverage ratio is expected to be over 2.3x. Tioga Downs further diversifies our portfolio, expanding it to 62 properties across 19 states with eight tenants. As with our other tenant relationships, we look forward to a long-term partnership with American Racing and our initiatives to further expand our portfolio remain active in the current environment as our reputation as the gaming landlord of choice is strengthened, reflecting our deep, long-term knowledge of the sector.
“In 2023 we completed over $1.1 billion of transactions, including over $760.0 million of traditional real estate acquisitions and $337.5 million of loan funding commitments. The overall 2023 transaction value – despite a still challenged market environment – reflects our creativity in crafting comprehensive financing solutions for our tenant partners. Our 2023 portfolio additions and recently completed transactions combined with contractual rent escalators and a strong balance sheet, set the stage for continued financial growth in the balance of 2024 and beyond. Our disciplined capital investment approach, combined with our focus on stable and resilient regional gaming markets, supports our confidence that the Company is well positioned to further grow our cash dividend and drive long-term shareholder value.”
Recent Developments
- On February 6, 2024, the Company acquired the real estate assets of Tioga Downs Casino Resort (“Tioga Downs”) in Nichols, NY from American Racing & Entertainment, LLC (“American Racing”) for $175.0 million. Simultaneous with the acquisition, GLPI and American Racing entered into a triple-net lease agreement for an initial 30-year term. The initial rent is $14.5 million and is subject to annual fixed escalations of 1.75% beginning with the first anniversary which increases to 2% beginning in year fifteen of the lease through the remainder of the initial term.
- During the first quarter of 2024, an additional $14 million was drawn on the $150 million delayed draw term loan commitment for a development project in Rockford, Illinois that is expected to be completed in September 2024. At March 31, 2024, $54 million of the $150 million commitment has been funded which accrues interest at 10%.
Dividends
On February 26, 2024, the Company’s Board of Directors declared a first quarter dividend of $0.76 per share on the Company’s common stock that was paid on March 29, 2024 to shareholders of record on March 15, 2024.
2024 Guidance
Reflecting the current operating and competitive environment, the Company is updating its AFFO guidance for the full year 2024 based on the following assumptions and other factors:
- The guidance does not include the impact on operating results from any 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 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, 2024 will be between $1,042 million and $1,051 million, or between $3.71 and $3.74 per diluted share and OP units. GLPI’s prior guidance contemplated AFFO for the year ending December 31, 2024 of between $1,041 million and $1,050 million, or between $3.70 and $3.74 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, 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 March 31, 2024, GLPI’s portfolio consisted of interests in 62 gaming and related facilities, including, the real property associated with 34 gaming and related facilities operated by PENN Entertainment (NASDAQ: PENN) (“PENN”), the real property associated with 6 gaming and related facilities operated by Caesars Entertainment, Inc. (NASDAQ: CZR) (“Caesars”), the real property associated with 4 gaming and related facilities operated by Boyd Gaming Corporation (NYSE: BYD) (“Boyd”), the real property associated with 9 gaming and related facilities operated by Bally’s Corporation (NYSE: BALY) (“Bally’s”), the real property associated with 3 gaming and related facilities operated by The Cordish Companies, the real property associated with 4 gaming and related facilities operated by Casino Queen, 1 gaming and related facility operated by American Racing and 1 facility under development that is intended to be managed by a subsidiary of Hard Rock International (“Hard Rock”). These facilities are geographically diversified across 19 states and contain approximately 29.0 million square feet of improvements.
Conference Call Details
The Company will hold a conference call on April 26, 2024, 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: 13745861
The playback can be accessed through Friday, May 3, 2024.
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 March 31, | ||||||||
2024 | 2023 | |||||||
Revenues | ||||||||
Rental income | $ | 330,582 | $ | 317,968 | ||||
Income from investment in leases, financing receivables | 44,305 | 37,246 | ||||||
Interest income from real estate loans | 1,077 | — | ||||||
Total income from real estate | 375,964 | 355,214 | ||||||
Operating expenses | ||||||||
Land rights and ground lease expense | 11,818 | 12,014 | ||||||
General and administrative | 17,886 | 16,450 | ||||||
Depreciation | 65,360 | 65,554 | ||||||
Provision (benefit) for credit losses, net | 23,294 | (5,653 | ) | |||||
Total operating expenses | 118,358 | 88,365 | ||||||
Income from operations | 257,606 | 266,849 | ||||||
Other income (expenses) | ||||||||
Interest expense | (86,675 | ) | (81,360 | ) | ||||
Interest income | 9,232 | 4,255 | ||||||
Losses on debt extinguishment | — | (556 | ) | |||||
Total other expenses | (77,443 | ) | (77,661 | ) | ||||
Income before income taxes | 180,163 | 189,188 | ||||||
Income tax expense | 637 | 518 | ||||||
Net income | $ | 179,526 | $ | 188,670 | ||||
Net income attributable to non-controlling interest in the Operating Partnership | (5,062 | ) | (5,319 | ) | ||||
Net income attributable to common shareholders | $ | 174,464 | $ | 183,351 | ||||
Earnings per common share: | ||||||||
Basic earnings attributable to common shareholders | $ | 0.64 | $ | 0.70 | ||||
Diluted earnings attributable to common shareholders | $ | 0.64 | $ | 0.70 |
GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
Current Year Revenue Detail | ||||||||||||||||||||||||||||
(in thousands) (unaudited) | ||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | Building base rent | Land base rent | Percentage rent and other rental revenue | Interest income on real estate loans | Total cash income | Straight-line rent adjustments (1) | Ground rent in revenue | Accretion on financing leases | Total income from real estate | |||||||||||||||||||
Amended PENN Master Lease | $ | 53,090 | $ | 10,759 | $ | 6,519 | $ | — | $ | 70,368 | $ | 4,952 | $ | 569 | $ | — | $ | 75,889 | ||||||||||
PENN 2023 Master Lease | 58,913 | — | (107 | ) | — | 58,806 | 5,622 | — | — | 64,428 | ||||||||||||||||||
Amended Pinnacle Master Lease | 60,277 | 17,814 | 7,164 | — | 85,255 | 1,858 | 2,063 | — | 89,176 | |||||||||||||||||||
PENN Morgantown Lease | — | 784 | — | — | 784 | — | — | — | 784 | |||||||||||||||||||
Caesars Master Lease | 16,022 | 5,932 | — | — | 21,954 | 2,196 | 330 | — | 24,480 | |||||||||||||||||||
Horseshoe St. Louis Lease | 5,918 | — | — | — | 5,918 | 399 | — | — | 6,317 | |||||||||||||||||||
Boyd Master Lease | 20,068 | 2,946 | 2,566 | — | 25,580 | 574 | 432 | — | 26,586 | |||||||||||||||||||
Boyd Belterra Lease | 709 | 473 | 472 | — | 1,654 | 151 | — | — | 1,805 | |||||||||||||||||||
Bally’s Master Lease | 25,893 | — | — | — | 25,893 | — | 2,689 | — | 28,582 | |||||||||||||||||||
Maryland Live! Lease | 19,078 | — | — | — | 19,078 | — | 2,160 | 4,529 | 25,767 | |||||||||||||||||||
Pennsylvania Live! Master Lease | 12,573 | — | — | — | 12,573 | — | 311 | 2,273 | 15,157 | |||||||||||||||||||
Casino Queen Master Lease | 7,905 | — | — | — | 7,905 | 38 | — | — | 7,943 | |||||||||||||||||||
Tropicana Las Vegas Lease | — | 2,678 | — | — | 2,678 | — | — | — | 2,678 | |||||||||||||||||||
Rockford Lease | — | 2,000 | — | — | 2,000 | — | — | 498 | 2,498 | |||||||||||||||||||
Rockford Loan | — | — | — | 1,077 | 1,077 | — | — | — | 1,077 | |||||||||||||||||||
Tioga Lease | 2,212 | — | — | — | 2,212 | — | 1 | 584 | 2,797 | |||||||||||||||||||
Total | $ | 282,658 | $ | 43,386 | $ | 16,614 | $ | 1,077 | $ | 343,735 | $ | 15,790 | $ | 8,555 | $ | 7,884 | $ | 375,964 |
(1) Includes $0.1 million of tenant improvement allowance amortization.
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 March 31, | ||||||||
2024 | 2023 | |||||||
Net income | $ | 179,526 | $ | 188,670 | ||||
Gains from dispositions of property, net of tax | — | — | ||||||
Real estate depreciation | 64,877 | 65,084 | ||||||
Funds from operations | $ | 244,403 | $ | 253,754 | ||||
Straight-line rent adjustments (1) | (15,790 | ) | (8,752 | ) | ||||
Other depreciation | 483 | 470 | ||||||
Provision (benefit) for credit losses, net | 23,294 | (5,653 | ) | |||||
Amortization of land rights | 3,276 | 3,290 | ||||||
Amortization of debt issuance costs, bond premiums and original issuance discounts | 2,684 | 2,501 | ||||||
Stock based compensation | 8,122 | 7,807 | ||||||
Losses on debt extinguishment | — | 556 | ||||||
Accretion on investment in leases, financing receivables | (7,884 | ) | (5,444 | ) | ||||
Non-cash adjustment to financing lease liabilities | 117 | 109 | ||||||
Capital maintenance expenditures (2) | (90 | ) | (8 | ) | ||||
Adjusted funds from operations | $ | 258,615 | $ | 248,630 | ||||
Interest, net (3) | 76,768 | 76,444 | ||||||
Income tax expense | 637 | 518 | ||||||
Capital maintenance expenditures (2) | 90 | 8 | ||||||
Amortization of debt issuance costs, bond premiums and original issuance discounts | (2,684 | ) | (2,501 | ) | ||||
Adjusted EBITDA | $ | 333,426 | $ | 323,099 | ||||
Net income, per diluted common share and OP units | $ | 0.64 | $ | 0.70 | ||||
FFO, per diluted common share and OP units | $ | 0.87 | $ | 0.94 | ||||
AFFO, per diluted common share and OP units | $ | 0.92 | $ | 0.92 | ||||
Weighted average number of common shares and OP units outstanding | ||||||||
Diluted common shares | 272,026,480 | 262,671,762 | ||||||
OP units | 7,915,817 | 7,646,956 | ||||||
Diluted common shares and OP units | 279,942,297 | 270,318,718 |
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(1) Current year amount includes $0.1 million of tenant improvement allowance amortization.
(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) Excludes a 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 March 31, 2024 |
||||
Adjusted EBITDA | $ | 333,426 | ||
General and administrative expenses | 17,886 | |||
Stock based compensation | (8,122 | ) | ||
Cash net operating income (1) | $ | 343,190 |
________________________________
(1) Cash net operating income is cash rental income and interest on real estate loans less cash property level expenses.
Gaming and Leisure Properties, Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(in thousands, except share and per share data) | ||||||||
March 31, 2024 | December 31, 2023 | |||||||
Assets | ||||||||
Real estate investments, net | $ | 8,103,928 | $ | 8,168,792 | ||||
Investment in leases, financing receivables, net | 2,185,707 | 2,023,606 | ||||||
Real estate loans, net | 52,307 | 39,036 | ||||||
Right-of-use assets and land rights, net | 831,922 | 835,524 | ||||||
Cash and cash equivalents | 211,533 | 683,983 | ||||||
Held to maturity investment securities (1) | 343,244 | — | ||||||
Other assets | 55,380 | 55,717 | ||||||
Total assets | $ | 11,784,021 | $ | 11,806,658 | ||||
Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 4,692 | $ | 7,011 | ||||
Accrued interest | 87,394 | 83,112 | ||||||
Accrued salaries and wages | 1,760 | 7,452 | ||||||
Operating lease liabilities | 196,496 | 196,853 | ||||||
Financing lease liabilities | 54,378 | 54,261 | ||||||
Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts | 6,630,196 | 6,627,550 | ||||||
Deferred rental revenue | 269,032 | 284,893 | ||||||
Other liabilities | 42,256 | 36,572 | ||||||
Total liabilities | 7,286,204 | 7,297,704 | ||||||
Equity | ||||||||
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at March 31, 2024 and December 31, 2023) | — | — | ||||||
Common stock ($.01 par value, 500,000,000 shares authorized, 271,500,584 and 270,922,719 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively) | 2,715 | 2,709 | ||||||
Additional paid-in capital | 6,054,530 | 6,052,109 | ||||||
Accumulated deficit | (1,930,027 | ) | (1,897,913 | ) | ||||
Total equity attributable to Gaming and Leisure Properties | 4,127,218 | 4,156,905 | ||||||
Noncontrolling interests in GLPI’s Operating Partnership (8,087,630 units and 7,653,326 units outstanding at March 31,2024 and December 31, 2023, respectively) | 370,599 | 352,049 | ||||||
Total equity | 4,497,817 | 4,508,954 | ||||||
Total liabilities and equity | $ | 11,784,021 | $ | 11,806,658 |
(1) Represents zero coupon treasury bill that at maturity in August 2024 will total $350 million.
Debt Capitalization
The Company’s debt structure as of March 31, 2024 was as follows:
Years to Maturity |
Interest Rate | Balance | |||||||
(in thousands) | |||||||||
Unsecured $1,750 Million Revolver Due May 2026 | 2.1 | — | % | — | |||||
Term Loan Credit Facility due September 2027 | 3.4 | 6.719 | % | 600,000 | |||||
Senior Unsecured Notes Due September 2024 | 0.4 | 3.350 | % | 400,000 | |||||
Senior Unsecured Notes Due June 2025 | 1.2 | 5.250 | % | 850,000 | |||||
Senior Unsecured Notes Due April 2026 | 2.0 | 5.375 | % | 975,000 | |||||
Senior Unsecured Notes Due June 2028 | 4.2 | 5.750 | % | 500,000 | |||||
Senior Unsecured Notes Due January 2029 | 4.8 | 5.300 | % | 750,000 | |||||
Senior Unsecured Notes Due January 2030 | 5.8 | 4.000 | % | 700,000 | |||||
Senior Unsecured Notes Due January 2031 | 6.8 | 4.000 | % | 700,000 | |||||
Senior Unsecured Notes Due January 2032 | 7.8 | 3.250 | % | 800,000 | |||||
Senior Unsecured Notes Due December 2033 | 9.7 | 6.750 | % | 400,000 | |||||
Other | 2.4 | 4.780 | % | 396 | |||||
Total long-term debt | 6,675,396 | ||||||||
Less: unamortized debt issuance costs, bond premiums and original issuance discounts | (45,200 | ) | |||||||
Total long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts | 6,630,196 | ||||||||
Weighted average | 4.5 | 4.917 | % | ||||||
Rating Agency – Issue Rating
Rating Agency | Rating | |
Standard & Poor’s | BBB- | |
Fitch | BBB- | |
Moody’s | Ba1 | |
Properties
Description | Location | Date Acquired | Tenant/Operator |
Amended PENN Master Lease (14 Properties) | |||
Hollywood Casino Lawrenceburg | Lawrenceburg, IN | 11/1/2013 | PENN |
Argosy Casino Alton | Alton, IL | 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 |
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 |
PENN 2023 Master Lease (7 Properties) | |||
Hollywood Casino Aurora | Aurora, IL | 11/1/2013 | PENN |
Hollywood Casino Joliet | Joliet, IL | 11/1/2013 | PENN |
Hollywood Casino Toledo | Toledo, OH | 11/1/2013 | PENN |
Hollywood Casino Columbus | Columbus, OH | 11/1/2013 | PENN |
M Resort | Henderson, NV | 11/1/2013 | PENN |
Hollywood Casino at the Meadows | Washington, PA | 9/9/2016 | PENN |
Hollywood Casino Perryville | Perryville, MD | 7/1/2021 | 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 (5 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 |
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 (8 Properties) | |||
Tropicana Evansville | Evansville, IN | 6/3/2021 | BALY |
Bally’s Dover Casino Resort | Dover, DE | 6/3/2021 | BALY |
Black Hawk (Black Hawk North, West and East casinos) | Black Hawk, CO | 4/1/2022 | BALY |
Quad Cities Casino & Hotel | Rock Island, IL | 4/1/2022 | BALY |
Bally’s Tiverton Hotel & Casino | Tiverton, RI | 1/3/2023 | BALY |
Hard Rock Casino and Hotel Biloxi | Biloxi, MS | 1/3/2023 | BALY |
Casino Queen Master Lease (4 Properties) | |||
DraftKings at Casino Queen | East St. Louis, IL | 1/23/2014 | Casino Queen |
The Queen Baton Rouge | Baton Rouge, LA | 12/17/2021 | Casino Queen |
Casino Queen Marquette | Marquette, IA | 9/6/2023 | Casino Queen |
Belle of Baton Rouge | Baton Rouge, LA | 10/1/2018 | Casino Queen |
Pennsylvania Live! Master Lease (2 Properties) | |||
Live! Casino & Hotel Philadelphia | Philadelphia, PA | 3/1/2022 | Cordish |
Live! Casino Pittsburgh | Greensburg, PA | 3/1/2022 | 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 Morgantown | Morgantown, PA | 10/1/2020 | PENN |
Live! Casino & Hotel Maryland | Hanover, MD | 12/29/2021 | Cordish |
Tropicana Las Vegas | Las Vegas, NV | 4/16/2020 | BALY |
Tioga Downs | Nichols, NY | 2/6/2024 | American Racing |
Hard Rock Casino Rockford | Rockford, IL | 8/29/2023 | 815 ENT Lessee (1) |
(1) Managed by a subsidiary of Hard Rock | |||
Lease Information
Master Leases | ||||||||
PENN 2023 Master Lease | Amended 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 | Pennsylvania Live! Master Lease operated by Cordish | |
Property Count | 7 | 14 | 12 | 5 | 3 | 8 | 4 | 2 |
Number of States Represented | 5 | 9 | 8 | 4 | 2 | 6 | 3 | 1 |
Commencement Date | 1/1/2023 | 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 | 10/31/2033 | 4/30/2031 | 9/30/2038 | 04/30/2026 | 06/02/2036 | 12/31/2036 | 2/28/2061 |
Remaining Renewal Terms | 15 (3×5 years) | 15 (3×5 years) | 20 (4×5 years) | 20 (4×5 years) | 25 (5×5 years) | 20 (4×5 years) | 20 (4X5 years) | 21 (1 x 11 years, 1 x 10 years) |
Corporate Guarantee | Yes | Yes | Yes | Yes | No | Yes | Yes | No |
Master Lease with Cross Collateralization | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Technical Default Landlord Protection | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Default Adjusted Revenue to Rent Coverage | 1.1 | 1.1 | 1.2 | 1.2 | 1.4 | 1.2 | 1.4 | 1.4 |
Competitive Radius Landlord Protection | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Escalator Details | ||||||||
Yearly Base Rent Escalator Maximum | 1.5% (1) | 2% | 2% | (2) | 2% | (3) | (4) | 1.75% |
Coverage ratio at December 31, 2023 (5) | 1.98 | 2.25 | 1.98 | 2.12 | 2.71 | 2.10 | 2.23 | 2.33 |
Minimum Escalator Coverage Governor | N/A | 1.8 | 1.8 | N/A | 1.8 | N/A | N/A | N/A |
Yearly Anniversary for Realization | November | November | May | October | May | June | December | March |
Percentage Rent Reset Details | ||||||||
Reset Frequency | N/A | 5 years | 2 years | N/A | 2 years | N/A | N/A | N/A |
Next Reset | N/A | November 2028 | May 2024 | N/A | May 2024 | N/A | N/A | N/A |
(1) In addition to the annual escalation, a one-time annualized increase of $1.4 million occurs on November 1, 2027.
(2) Building base rent will 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.
(3) 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.
(4) 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.
(5) Information with respect to our tenants’ rent coverage over the trailing twelve months was provided by our tenants as of December 31, 2023. Due to the recent additions to the Casino Queen Master Lease the coverage ratio is calculated on a proforma basis. GLPI has not independently verified the accuracy of the tenants’ information and therefore makes no representation as to its accuracy.
Lease Information
Single Property Leases | |||||||
Belterra Park Lease operated by BYD | Horseshoe St. Louis Lease operated by CZR | Morgantown Ground Lease operated by PENN | Live! Casino & Hotel Maryland operated by Cordish | Tropicana Las Vegas Ground Lease operated by BALY | Tioga Downs Lease operated by American Racing | Hard Rock Rockford Ground Lease managed by Hard Rock | |
Commencement Date | 10/15/2018 | 9/29/2020 | 10/1/2020 | 12/29/2021 | 9/26/2022 | 2/6/2024 | 8/29/2023 |
Lease Expiration Date | 04/30/2026 | 10/31/2033 | 10/31/2040 | 12/31/2060 | 9/25/2072 | 2/28/2054 | 8/31/2122 |
Remaining Renewal Terms | 25 (5×5 years) | 20 (4×5 years) | 30 (6×5 years) | 21 (1 x 11 years, 1 x 10 years) | 49 (1 x 24 years, 1 x 25 years) | 32 years and 10 months (2 x 10 years, 1 x 12 years and 10 months) | None |
Corporate Guarantee | No | Yes | Yes | No | Yes | Yes | No |
Technical Default Landlord Protection | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Default Adjusted Revenue to Rent Coverage | 1.4 | 1.2 | N/A | 1.4 | 1.4 | 1.4 | 1.4 |
Competitive Radius Landlord Protection | Yes | Yes | N/A | Yes | Yes | Yes | Yes |
Escalator Details | |||||||
Yearly Base Rent Escalator Maximum | 2% | 1.25% (1) | 1.5% (2) | 1.75% | (3) | 1.75% (4) | 2% |
Coverage ratio at December 31, 2023 (5) | 3.77 | 2.28 | N/A | 3.52 | N/A | N/A | N/A |
Minimum Escalator Coverage Governor | 1.8 | N/A | N/A | N/A | N/A | N/A | N/A |
Yearly Anniversary for Realization | May | October | December | January | October | March | September |
Percentage Rent Reset Details | |||||||
Reset Frequency | 2 years | N/A | N/A | N/A | N/A | N/A | N/A |
Next Reset | May 2024 | N/A | N/A | N/A | N/A | N/A | N/A |
(1) 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.
(2) 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.
(3) 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.
(4) Increases by 1.75% beginning with the first anniversary which increases to 2% beginning in year fifteen of the lease through the remainder of the initial term.
(5) Information with respect to our tenants’ rent coverage over the trailing twelve months was provided by our tenants as of December 31, 2023. 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, property transfer tax recoveries and impairment charges, straight-line rent adjustments, losses on debt extinguishment, and provision (benefit) 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, 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, property transfer tax recoveries and impairment charges, losses on debt extinguishment, and provision (benefit) for credit losses, net. 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 and OP units, AFFO, AFFO per diluted common share and OP units, 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 2024 AFFO guidance and the Company benefiting from recently completed transactions. Forward-looking statements can be identified by the use of forward-looking terminology such as “expects,” “believes,” “estimates,” “intends,” “may,” “will,” “should” or “anticipates” or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward looking statements are inherently subject to risks, uncertainties and assumptions about GLPI and its subsidiaries, including risks related to the following: GLPI’s expectations regarding continued growth and dividend increases, GLPI’s expectation that it will continue to deliver strong capital returns and yields for its shareholders, GLPI’s expectations regarding its partnership with American Racing, 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 ongoing high levels of inflation (which have been exacerbated by the armed conflict between Russia and Ukraine and may be further impacted by events in the Middle East) 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, 2023, 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 |
[email protected] | [email protected] |
Nasdaq:GLPI
Gaming and Leisure Properties Enters into Sale Leaseback and Development Funding Transactions with Bally’s Corporation Totaling $1.585 Billion at Blended 8.3% Initial Cash Yield
![gaming-and-leisure-properties-enters-into-sale-leaseback-and-development-funding-transactions-with-bally’s-corporation-totaling-$1585-billion-at-blended-8.3%-initial-cash-yield](https://recentslotreleases.com/wp-content/uploads/2024/07/138170-gaming-and-leisure-properties-enters-into-sale-leaseback-and-development-funding-transactions-with-ballys-corporation-totaling-1585-billion-at-blended-8-3-initial-cash-yield.jpg)
Multi-Faceted Transaction Further Expands and Diversifies GLPI’s Industry-Leading Regional Property Portfolio; Provides Bally’s with Financing for its Highly-Anticipated Flagship Chicago Casino Facility
WYOMISSING, Pa., July 12, 2024 (GLOBE NEWSWIRE) — Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) (“GLPI” or “the Company”), announced today that it has entered into a binding term sheet with Bally’s Corporation (NYSE: BALY) (“Bally’s”) pursuant to which the Company intends to acquire the real property assets of Bally’s Kansas City Casino (“Bally’s Kansas City”) and Bally’s Shreveport Casino & Hotel (“Bally’s Shreveport”) as well as the land under Bally’s permanent Chicago casino, and provide construction financing for the Bally’s Chicago Casino Resort (“Bally’s Chicago”) for aggregate consideration of approximately $1.585 billion representing a blended 8.3% initial cash yield. In addition, GLPI secured adjustments to improve the purchase price and related cap rate related to the existing, previously announced, contingent purchase option for Bally’s Lincoln Casino Resort (“Bally’s Lincoln”), as well as the addition of a right for GLPI to call the asset beginning on October 1, 2026.
$1.19 Billion Chicago Flagship Casino Development Investment
GLPI intends to fund construction hard costs of up to $940 million at an 8.5% initial cash yield with the remainder to be funded by Bally’s with the sale leaseback proceeds related to Bally’s Kansas City and Bally’s Shreveport along with other funding sources such as Bally’s Chicago’s planned initial public offering and cash flows from operations. Funding is expected to occur from August 2024 through December 2026. GLPI will own all funded improvements, which will be leased to Bally’s with rent commencing at a rate of 8.5% as advances are made. The total project’s costs are currently expected to be approximately $1.8 billion, inclusive of construction, land, and rent.
In addition to the development funding of hard costs, GLPI also intends to acquire the Chicago land for approximately $250 million before development begins. Upon GLPI’s purchase of the Chicago land, rent will commence under a new lease carrying a 15-year initial term with an initial cash yield of 8.0%. The new lease will be cross-defaulted with the construction development funding agreement. Upon completion of the improvements and acquisition of the land, GLPI will own substantially all of the real estate land and improvements related to the Chicago casino and hotel for a total investment of $1.19 billion and blended initial cash investment yield of 8.4%. Upon stabilization of the property’s operations, the rent coverage for the lease is expected to be in the range of 2.0x – 2.4x.
$395 Million Kansas City and Shreveport Sale Leaseback Investment
GLPI will purchase the real property assets of both Bally’s Kansas City and Bally’s Shreveport for total consideration of $395 million. The two properties will be in a new Bally’s Master Lease that will be cross-defaulted with the existing Bally’s Master Lease with initial cash rent pursuant to the agreement for the two new properties of $32.2 million, representing an 8.2% initial cash capitalization rate. Total rent coverage on the Kansas City and Shreveport assets is expected to be 2.2x in the initial year post acquisition. The Company expects to close on the proposed Bally’s Kansas City and Bally’s Shreveport sale leaseback transactions as early as Q4 2024 subject to customary regulatory and other approvals.
In total, the Chicago, Kansas City, and Shreveport transactions represent a blended 8.3% yield and are expected to be funded on a staggered basis with cash on hand, retained operational cash flow, availability on GLPI’s revolving credit facility, and proceeds from potential capital markets activity.
The transactions are subject to several conditions as well as certain third-party consents and regulatory approvals. Key conditions include but are not limited to: (a) valid assignment of the current ground lease to GLPI or acquisition by GLPI of the fee interest in Chicago; (b) the final structure and pro forma capitalization of Bally’s following the proposed Standard General acquisition, or similar transaction, in the event any agreement is reached with the board of directors of Bally’s; (c) completion of customary due diligence on the Chicago site; and (d) receipt of all necessary gaming regulatory and other third party approvals.
Adjustments to Improve Bally’s Lincoln Purchase Option
GLPI and Bally’s have further agreed to adjust GLPI’s existing contingent purchase option for Bally’s Lincoln to reflect a purchase price of $735 million, which has been reduced from $771 million. The purchase price adjustment results in the initial cash yield’s favorable adjustment from 7.6% to 8.0% based on $58.8 million initial cash rent. GLPI has also been granted a call right, subject only to regulatory approval, beginning on October 1, 2026 to ensure that GLPI has the opportunity to acquire the property prior to the expiration of the current option period.
Peter Carlino, Chairman and CEO of GLPI commented, “We are delighted to partner again with Bally’s on this series of highly attractive transactions that will benefit our shareholders and represent a win-win for both parties. These transactions will be accretive to our financial results, delivering an 8.3% blended initial cash yield and are structured with conservative rent coverage. GLPI is ideally positioned for these transactions as structured given our strong balance sheet, visible recurring cash flows, low leverage and the extensive casino development and construction experience that our team uniquely brings to the opportunity. This multi-faceted deal is another example of our ability to be innovative in our approach to creating opportunities for our shareholders in conjunction with our best-in-class regional gaming tenants in what remains a volatile interest rate and challenging transaction environment. Furthermore, these transactions will expand and diversify our already industry-leading regional gaming property portfolio while adding a downtown asset in a world-class city, and the nation’s third largest metropolitan area, to our unmatched geographic breadth. We look forward to working with the Bally’s team as they begin development of what promises to be a must-visit destination casino resort property in the heart of Chicago.”
Soo Kim, Chairman of Bally’s, added, “GLPI has been a great partner for many years. We are excited to expand our relationship as we leverage their development and financing expertise to grow Bally’s with the world class Chicago casino development. Chicago is a vitally important market for our company and our permanent downtown facility will become our company’s flagship property when it opens in late 2026. We are thrilled to have the investment from GLPI as we begin construction of Bally’s Chicago, and we are confident that this critical project funding milestone will be well-received by our host community and the various stakeholders in Chicago.”
Wells Fargo acted as financial advisor to Gaming and Leisure Properties. Goodwin Procter LLP acted as legal advisor to Gaming and Leisure Properties.
About Bally’s Transaction Related Properties
Bally’s Chicago will be a nearly 1 million square-foot casino resort located on the Chicago River, roughly 1.5 miles from the temporary Bally’s casino site. The single-level, 178,000 square-foot casino will feature approximately 3,300 slot machines and 173 table games (including poker). Once fully completed, the property will feature a 500-room hotel with a portion of the rooms above the casino and the remainder in an adjacent 27-floor tower. The hotel will include a full-service spa, fitness center and pool, along with a rooftop bar. Bally’s Chicago will offer a premium steakhouse, noodle bar, nightclub, food hall and other bars and lounges. It will also include more than 100,000 square feet of event and meeting space and nearly 3,000 valet and self-park parking spaces. The property will also have more than two acres of public green space and a riverwalk for casino patrons and the community to enjoy.
Bally’s Kansas City is located on the Missouri River in Kansas City, Missouri and recently completed a $50 million renovation and expansion. The property features a 42,000 square foot casino with over 900 slot machines, 24 table games and more than 50 video poker and keno terminals. It also offers three restaurants including a location of the award-winning Chickie’s & Pete’s sports bar, a full-service bar, nearly 3,000 square feet of event space and several entertainment lounges.
Bally’s Shreveport is located along the Red River in downtown Shreveport, Louisiana. The property features a 30,000 square foot casino with more than 950 slot machines, over 50 table games, a poker room and a Bally Bet Sportsbook. It has a 400-room hotel with full-service spa, three on-site restaurants including an award-winning fine dining steakhouse and a noodle bar, event spaces, live entertainment and two on-site nightclubs.
Bally’s Lincoln is located in Lincoln, Rhode Island and recently completed a roughly $100 million expansion and improvement project. The updated property features 188,000 square feet of gaming space with more than 3,900 slot machines, 114 table games, the Sportsbook Bar & Grill and a race book with live simulcast wagering spread across both smoking and non-smoking sections. The property also offers a 136-room hotel, three fine dining restaurants, two food courts, eight bars including a cigar bar, a 29,000 square foot event center and two live entertainment venues.
About Gaming and Leisure Properties, Inc.
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.
About Bally’s Corporation
Bally’s Corporation is a global casino-entertainment company with a growing omni-channel presence. It currently owns and manages 15 casinos across 10 states, a golf course in New York, a horse racetrack in Colorado, and has access to OSB licenses in 18 states. It also owns Bally’s Interactive International, formerly Gamesys Group, a leading, global, online gaming operator, Bally Bet, a first-in-class sports betting platform, and Bally Casino, a growing iCasino platform.
With 10,600 employees, the Company’s casino operations include approximately 15,300 slot machines, 580 table games and 3,800 hotel rooms. Upon completing the construction of a permanent casino facility in Chicago, IL, and a land-based casino near the Nittany Mall in State College, PA, Bally’s will own and/or manage 16 casinos across 11 states. Bally’s also has rights to developable land in Las Vegas. It shares trade on the New York Stock Exchange under the ticker symbol “BALY”.
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 the benefits of the transaction to our shareholders. 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: GLPI’s ability to successfully consummate the announced transactions with Bally’s, including the ability of the parties to satisfy the various conditions to advancing loan proceeds, including receipt of all required regulatory approvals and other approvals and consents, or other delays or impediments to completing the proposed transactions; 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; 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, 2023, 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. Matthew Demchyk, Chief Investment Officer 610/401-2900 [email protected] |
Investor Relations Joseph Jaffoni, Richard Land, James Leahy at JCIR 212/835-8500 [email protected] |
Nasdaq:GLPI
Gaming and Leisure Properties, Inc. Schedules Second Quarter 2024 Earnings Release and Conference Call
![gaming-and-leisure-properties,-inc.-schedules-second-quarter-2024-earnings-release-and-conference-call](https://recentslotreleases.com/wp-content/uploads/2024/06/137612-gaming-and-leisure-properties-inc-schedules-second-quarter-2024-earnings-release-and-conference-call.jpg)
WYOMISSING, Pa., June 26, 2024 (GLOBE NEWSWIRE) — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) announced today that the Company will release its 2024 second quarter financial results after the market close on Thursday, July 25, 2024. The Company will host a conference call at 10:00 a.m. ET on Friday, July 26, 2024.
During the conference call, Peter M. Carlino, Chairman and Chief Executive Officer, and senior management, will review the quarter’s results and performance, discuss recent events and conduct a question-and-answer period.
Webcast:
The conference call will be available in the Investor Relations section of the Company’s website at www.glpropinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Company’s website.
To Participate in the Telephone Conference Call:
Dial in at least five minutes prior to start time.
Domestic: 1-877/407-0784
International: 1-201/689-8560
Conference Call Playback:
Domestic: 1-844/512-2921
International: 1-412/317-6671
Passcode: 13747503
The playback can be accessed through Friday, August 2, 2024.
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.
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 |
[email protected] | [email protected] |
Nasdaq:GLPI
Gaming and Leisure Properties to Provide Casino Queen Holdings with $111 Million Funding for Landside Move of Belle of Baton Rouge
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Total Project Cost Expected to Exceed $141 Million
WYOMISSING, Pa., June 03, 2024 (GLOBE NEWSWIRE) — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI”) announced today that it has agreed to fund and oversee a landside move and hotel renovation of Belle of Baton Rouge (“The Belle”) in Baton Rouge, LA for its tenant The Queen Casino and Entertainment Inc. (“Queen Casino & Entertainment Inc.”). GLPI has committed to provide up to approximately $111 million of funding for the project, which is expected to be completed by September 2025. Total project costs are expected to exceed $141 million. The casino will continue to operate for the construction period except while gaming equipment is being moved to the new facility. GLPI will own the new facility and Queen Casino & Entertainment Inc. will pay an incremental rental yield of 9% on the development funding beginning a year from the initial disbursement of funds, which occurred on May 30, 2024. The Belle is part of the Queen Casino & Entertainment Inc. master lease along with Draft Kings at Casino Queen in East St. Louis, IL, Casino Queen Marquette in Marquette, IA, and The Queen Baton Rouge in Baton Rouge, LA.
Peter Carlino, Chairman and CEO of GLPI, commented, “Building on the success of our landside move funding at The Queen Baton Rouge, we have agreed to provide funding for the hard costs related to Queen Casino & Entertainment Inc.‘s landside move at The Belle. Queen Casino & Entertainment has proven its ability to leverage a fresh, new product to grow the overall gaming market and we expect this project to follow a similar path. We remain active in our efforts to expand our portfolio in the current environment and believe that transactions such as this further our reputation as the gaming landlord of choice.”
Terry Downey, CEO of Queen Casino & Entertainment Inc., added, “We are extremely pleased with the Queen’s performance since its grand reopening in August 2023, thanks in large part to GLPI’s partnership. Their depth of expertise and project management through the entire process have enabled us to exceed our financial, operational, and customer focused goals at the Queen. As we now turn our attention to The Belle, we look forward to realizing similar operational upside from this latest move landside. In particular, the proven success at the Queen and the synergies made possible by our operating model between the Queen and The Belle set the stage for success. We appreciate GLPI’s continued partnership in the growth of our business and look forward to providing our players with another fully refreshed casino destination.”
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.
About The Queen Casino and Entertainment Inc.
The Queen Casino & Entertainment Inc.’s entry into gaming began with DraftKings at Casino Queen. Formerly known as Casino Queen, the property is located across the Mississippi River from St. Louis and has been welcoming visitors since 1993. The company expanded into Marquette, Iowa in 2017, adding Casino Queen Marquette. The Queen Casino & Entertainment expanded into Louisiana with the completed acquisition of Hollywood Casino Baton Rouge from Gaming and Leisure Properties, Inc. in 2021 and the acquisition of the historic Belle of Baton Rouge from Caesars Entertainment in 2022. A thriving regional gaming company, The Queen Casino & Entertainment Inc. is owned by Standard General L.P. More information about The Queen Casino & Entertainment Inc. is available on the website at www.thequeengaming.com.
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 the benefits of the transaction to our shareholders. 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: GLPI’s ability to successfully consummate the announced transactions with Casino Queen holdings, including the ability of the parties to satisfy the various conditions to advancing loan proceeds, including receipt of all required approvals and consents, or other delays or impediments to completing the proposed transactions; 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; 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, 2023, 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. Matthew Demchyk, Chief Investment Officer 610/401-2900 [email protected] |
Investor Relations Joseph Jaffoni, Richard Land, James Leahy at JCIR 212/835-8500 [email protected] |
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