Gaming and Leisure Properties, Inc. Reports Fourth Quarter 2020 Results
WYOMISSING, Pa., Feb. 18, 2021 (GLOBE NEWSWIRE) — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”) today announced financial results for the quarter ended December 31, 2020.
Peter Carlino, Chairman and Chief Executive Officer of GLPI, commented, “We ended 2020 with strong fourth quarter results and 2021 started with growing momentum, highlighting our proactive measures to creatively collaborate with our tenants throughout the year while further positioning GLPI as the REIT of choice for leading U.S. gaming operators. Reflecting the innovation of our team and the strong support and partnerships we’ve established with tenants, we collected all rents that were due in 2020.
“During the fourth quarter, we continued to successfully and aggressively execute on our long-term strategy to thoughtfully grow rental cash flows, diversify our tenant base and prudently fund our ongoing growth, expansion and dividend increases. Early in the quarter we completed the acquisition from Penn National of the land underlying the gaming facility now being constructed in Morgantown, Pennsylvania in exchange for $30.0 million in rent credits. This land is being leased to Penn National for $3.0 million of annual cash rent with contractual escalators once the property opens, which is expected in the second half of 2021. Later in October, we entered into a series of agreements pursuant to which a subsidiary of Bally’s Corporation will acquire the equity interests in the Caesars operating subsidiary for Tropicana Evansville and the Company will reacquire the real property assets of Tropicana Evansville from Caesars for approximately $340.0 million. We also entered into a real estate purchase agreement with Bally’s to purchase the real estate underlying Dover Downs Hotel & Casino, located in Dover, Delaware for approximately $144.0 million. At the time both transactions close, which we expect to occur later this year, Tropicana Evansville and Dover Downs Hotel & Casino will be added to a new master lease with Bally’s with annual rent of approximately $40.0 million. We issued 9.2 million shares of common stock in November to prefund these transaction opportunities and for working capital and general corporate purposes, resulting in net proceeds of approximately $320.6 million. Then, in December, we entered into sale and lease transactions for our TRS operations in Baton Rouge and Perryville, which will result in sale proceeds of approximately $59.3 million and initial aggregate annual rent of approximately $29.2 million, inclusive of our current rent from the DraftKings Casino Queen property.
“These transactions were followed by the completion of an Exchange Agreement with Caesars whereby the real estate assets of Isle Casino Hotel, Waterloo and Isle Casino Hotel Bettendorf were transferred to GLPI in exchange for the Tropicana Evansville real estate, plus a cash payment of $5.7 million and an annual rent increase of approximately $520,000. We are delighted to expand our relationship with current tenants Caesars Entertainment and Penn National as well as with Casino Queen, whose new master lease will also include our current DraftKings at Casino Queen property in East St. Louis and to add Bally’s Corporation to our tenant roster of leading operators which also includes Boyd Gaming.
“Our strong fourth quarter and full year 2020 results reflect GLPI’s focus on our core business, our deep, long-term knowledge of the gaming sector, and our ability to position the Company for growth through the active management of all aspects of our business and capital structure. We remain committed to building and supporting relationships with the industry’s leading gaming operators, all of whom have fortified their balance sheets with capital and enhanced their operating models as a result of cost and other efficiencies. Our tenants’ strength, combined with the sector’s only investment-grade balance sheet, position GLPI to consistently grow its cash flows and build value for shareholders in 2021 and beyond. Finally, we intend to resume to all cash dividends this year.”
Recent Developments
- As of December 31, 2020, all of our tenants were current with respect to their rental obligations, inclusive of $4.6 million in rent collected during the fourth quarter from Casino Queen which was deferred earlier in 2020. We collected all rent that was due in 2020.
- As of February 18, 2021, 47 of our 48 properties, (including those we own and operate in our taxable REIT subsidiaries) are open with safety protocols and capacity constraints.
- On December 18, 2020, the transaction contemplated by the previously announced Exchange Agreement with subsidiaries of Caesars Entertainment Corporation (NASDAQ: CZR) (“Caesars”) closed whereby, the real estate assets of Isle Casino Hotel, Waterloo (“Waterloo”) and the Isle Casino Hotel, Bettendorf (“Bettendorf”) were transferred to GLPI in exchange for the transfer to Caesars of the real property assets of Tropicana Evansville, plus a cash payment of $5.7 million. The rent under the Caesars Amended and Restated Master Lease, to which Waterloo and Bettendorf were added, was increased by approximately $520,000 annually. This transaction resulted in a non-cash gain of $41.4 million, which has been excluded from FFO and AFFO (each defined below), that represented the excess of the fair value of the assets received over the carrying value of the assets transferred plus the cash payment made to Caesars.
- On December 15, 2020, the Company entered into a definitive agreement to sell the operations of Hollywood Casino Baton Rouge (“HCBR”) to Casino Queen for $28.2 million. GLPI will continue to own the real estate and will enter into an amended master lease with Casino Queen, which will include both their current DraftKings at Casino Queen property in East St. Louis and the HCBR facility, for annual cash rent of $21.4 million with a new initial term of 15 years and four 5-year extensions. This rental amount will be increased annually by 0.5% for the first six years. Beginning with the seventh lease year through the remainder of the lease term, if the Consumer Price Index (“CPI”) increases by at least 0.25% for any lease year then annual rent shall be increased by 1.25%, and if the CPI increase is less than 0.25% then rent will remain unchanged for such lease year. GLPI will complete the previously announced landside development project at HCBR and the rent under the master lease will be adjusted upon completion to reflect a yield of 8.25% on our project costs. GLPI will also have a right of first refusal with Casino Queen for other sale leaseback transactions for up to an incremental $50 million of rent over the next 2 years. Finally, upon the closing of the transaction, which is subject to regulatory approvals and customary closing conditions, GLPI will receive a one-time cash payment of $4 million in satisfaction of the outstanding loan to Casino Queen.
- On December 15, 2020, the Company announced that Penn National Gaming, Inc. (NASDAQ: PENN) (“Penn”) exercised its option to acquire the operations of Hollywood Casino Perryville for $31.1 million in cash. GLPI will enter into a new lease with Penn with an initial term of 20 years, with three 5-year renewal options, for the real estate assets associated with the property for an initial annual cash rent of $7.77 million, $5.83 million of which will be subject to escalation provisions beginning in the second lease year through the fourth lease year and shall increase by 1.50% and then to 1.25% for the remaining lease term. The escalation provisions beginning in the fifth lease year are subject to CPI being at least 0.5% for the preceding lease year.
- Since re-opening in May and June, respectively, HCBR and Hollywood Casino Perryville, the gaming properties GLPI owns and operates in its taxable REIT subsidiary, have generated strong financial results. Total fourth quarter net revenues and adjusted EBITDA from these properties exceeded prior-year levels by $1.3 million and $2.4 million, respectively.
- On October 27, 2020, the Company entered into a series of definitive agreements pursuant to which a subsidiary of Bally’s Corporation (NYSE: BALY) (“Bally’s”) will acquire 100% of the equity interests in the Caesars subsidiary that currently operates Tropicana Evansville and the Company will reacquire the real property assets of Tropicana Evansville from Caesars for a cash purchase price of approximately $340.0 million. The Company also entered into a real estate purchase agreement with Bally’s pursuant to which it will purchase the real estate assets of the Dover Downs Hotel & Casino, located in Dover, Delaware, which is currently owned and operated by Bally’s, for a cash purchase price of approximately $144.0 million. At the close of these transactions, which are expected to occur in mid-2021 subject to regulatory approvals, the Tropicana Evansville and Dover Downs Hotel & Casino facilities will be added to a new master lease between GLPI and Bally’s (the “Bally’s Master Lease”). The Company anticipates that the Bally’s Master Lease will have an initial term of 15 years, with no purchase option, followed by four five-year renewal options (exercisable by Bally’s) on the same terms and conditions. Rent under the Bally’s Master Lease will be $40.0 million annually and is subject to an annual escalator of up to 2% determined in relation to the annual increase in the CPI.
- On October 1, 2020, the Company completed the acquisition from Penn of the land underlying its gaming facility under construction in Morgantown, Pennsylvania in exchange for $30.0 million in rent credits. The Morgantown land is being leased back to Penn for $3.0 million of annual cash rent, provided, however, that (i) on the opening date and on each anniversary thereafter the rent shall be increased by 1.5% annually (on a prorated basis for the remainder of the lease year in which the gaming facility opens) for each of the following three lease years and (ii) commencing on the fourth anniversary of the opening date and for each anniversary thereafter, (a) 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 (b) if the CPI increase is less than 0.5% for such lease year, then the rent shall not increase for such lease year. Penn also exercised the next scheduled five-year renewal options under each of its two master leases with the Company.
- In light of nationwide casino closures in 2020, the Company did not achieve any rent escalators during the year. The Company’s leases contain variable rent which is reset on varying schedules depending on the lease. In the aggregate, the portion of cash rents that are variable represented approximately 15% of GLPI’s 2020 full year cash rental income. Of that 15% variable rent, approximately 29% resets every five years which is associated with the Penn Master Lease and the Casino Queen lease, 41% resets every two years and 30% resets monthly which is associated with the Penn Master Lease (of which approximately 51% is subject to a floor or $22.9 million annually for Hollywood Casino Toledo). Results for the three-month period ended December 31, 2020 benefited from the collection of prior quarters’ deferred rent at Casino Queen of $4.6 million.
- The variable rent resets in the Boyd Master Lease, whose properties are leased by Boyd Gaming Corporation (NYSE: BYD) (“Boyd”)) and the Amended Pinnacle Master Lease, whose properties are leased by Penn, reset for the two-year period ended April 30, 2020. As a result, reductions of $1.4 million and $5.0 million, respectively, will be incurred in annual variable rent on these respective leases through April 30, 2022. For the Meadows Lease, whose property is leased by Penn, variable rent reset occurred in October 2020 and resulted in a $2.1 million annual decline. As detailed later in this release, the Company’s next variable rent reset on its portfolio of leases does not occur until May 2022.
Balance Sheet Update
- During the fourth quarter GLPI issued 9.2 million shares of common stock at $36.25 per share, resulting in net proceeds of approximately $320.6 million. The Company expects to allocate these proceeds to the upcoming Bally’s transaction, working capital and general corporate purposes.
- The aggregate fourth quarter dividends paid on December 24, 2020, were comprised of $27.6 million in cash and $110.5 million in common stock (2,546,397 shares at $43.3758 per share).
Financial Highlights
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| (in millions, except per share data) | 2020 Actual | 2019 Actual | 2020 Actual | 2019 Actual | |||||||||||
| Total Revenue | $ | 300.2 | $ | 289.0 | $ | 1,153.2 | $ | 1,153.5 | |||||||
| Income From Operations | $ | 241.5 | $ | 188.3 | $ | 809.3 | $ | 717.4 | |||||||
| Net Income | $ | 169.3 | $ | 114.3 | $ | 505.7 | $ | 390.9 | |||||||
| FFO (1) | $ | 184.1 | $ | 168.8 | $ | 684.4 | $ | 621.7 | |||||||
| AFFO (2) | $ | 193.4 | $ | 188.6 | $ | 757.4 | $ | 743.2 | |||||||
| Adjusted EBITDA (3) | $ | 264.6 | $ | 260.5 | $ | 1,035.5 | $ | 1,040.3 | |||||||
| Net income, per diluted common share | $ | 0.74 | $ | 0.53 | $ | 2.30 | $ | 1.81 | |||||||
| FFO, per diluted common share | $ | 0.81 | $ | 0.78 | $ | 3.11 | $ | 2.88 | |||||||
| AFFO, per diluted common share | $ | 0.85 | $ | 0.87 | $ | 3.45 | $ | 3.44 | |||||||
(1) FFO is net income, excluding (gains) or losses from sales of property and real estate depreciation as defined by NAREIT.
(2) AFFO is FFO, excluding stock based compensation expense, the amortization of debt issuance costs, bond premiums and original issuance discounts, other depreciation, amortization of land rights, straight-line rent adjustments, losses on debt extinguishment, and loan impairment charges, reduced by capital maintenance expenditures.
(3) Adjusted EBITDA is net income, excluding interest, taxes on income, depreciation, (gains) or losses from sales of property, stock based compensation expense, straight-line rent adjustments, amortization of land rights, losses on debt extinguishment and loan impairment charges.
Dividend
On November 5, 2020, the Company’s Board of Directors declared a fourth quarter dividend of $0.60 per share on the Company’s common stock, consisting of a combination of cash and shares of the Company’s common stock. The dividend was paid on December 24, 2020 to shareholders of record on November 16, 2020. Now that all non-cash rents have been realized by the Company, GLPI expects to return to an all cash dividend in 2021.
The Company expects the dividends to be taxable to shareholders, regardless of whether a particular shareholder received a dividend in the form of cash or shares. The Company reserves the right to pay future dividends in cash or the Company’s common stock, and the composition of future dividends with respect to cash and stock will be made by the Board of Directors on a quarterly basis.
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, 2020, GLPI’s portfolio consisted of interests in 48 gaming and related facilities, including approximately 35 acres of real estate at Tropicana Las Vegas and the Company’s wholly-owned and operated Hollywood Casino Baton Rouge and Hollywood Casino Perryville, which are referred to as the “TRS Segment”, the real property associated with 33 gaming and related facilities operated by Penn (excluding the Tropicana Las Vegas), the real property associated with 7 gaming and related facilities operated by Caesars, the real property associated with 4 gaming and related facilities operated by Boyd Gaming Corporation (NYSE: BYD), and the real property associated with the Casino Queen in East St. Louis, Illinois. These facilities are geographically diversified across 16 states and contain approximately 24.3 million square feet of improvements.
Conference Call Details
The Company will hold a conference call on February 19, 2021 at 9:00 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: 13715360
The playback can be accessed through February 26, 2021.
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, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Revenues | |||||||||||||||
| Rental income | $ | 268,325 | $ | 251,136 | $ | 1,031,036 | $ | 996,166 | |||||||
| Interest income from real estate loans | — | 7,316 | 19,130 | 28,916 | |||||||||||
| Total income from real estate | 268,325 | 258,452 | 1,050,166 | 1,025,082 | |||||||||||
| Gaming, food, beverage and other | 31,836 | 30,532 | 102,999 | 128,391 | |||||||||||
| Total revenues | 300,161 | 288,984 | 1,153,165 | 1,153,473 | |||||||||||
| Operating expenses | |||||||||||||||
| Gaming, food, beverage and other | 17,162 | 17,961 | 56,698 | 74,700 | |||||||||||
| Land rights and ground lease expense | 7,098 | 8,866 | 29,041 | 42,438 | |||||||||||
| General and administrative | 16,844 | 17,169 | 68,572 | 65,385 | |||||||||||
| (Gains) losses from dispositions of properties | (41,390 | ) | 42 | (41,393 | ) | 92 | |||||||||
| Depreciation (1) | 58,940 | 56,690 | 230,973 | 240,435 | |||||||||||
| Loan impairment charges | — | — | — | 13,000 | |||||||||||
| Total operating expenses | 58,654 | 100,728 | 343,891 | 436,050 | |||||||||||
| Income from operations | 241,507 | 188,256 | 809,274 | 717,423 | |||||||||||
| Other income (expenses) | |||||||||||||||
| Interest expense | (70,485 | ) | (73,158 | ) | (282,142 | ) | (301,520 | ) | |||||||
| Interest income | 78 | 184 | 569 | 756 | |||||||||||
| Losses on debt extinguishment | — | — | (18,113 | ) | (21,014 | ) | |||||||||
| Total other expenses | (70,407 | ) | (72,974 | ) | (299,686 | ) | (321,778 | ) | |||||||
| Income before income taxes | 171,100 | 115,282 | 509,588 | 395,645 | |||||||||||
| Income tax provision | 1,759 | 991 | 3,877 | 4,764 | |||||||||||
| Net income | $ | 169,341 | $ | 114,291 | $ | 505,711 | $ | 390,881 | |||||||
| Earnings per common share: | |||||||||||||||
| Basic earnings per common share | $ | 0.75 | $ | 0.53 | $ | 2.31 | $ | 1.82 | |||||||
| Diluted earnings per common share | $ | 0.74 | $ | 0.53 | $ | 2.30 | $ | 1.81 | |||||||
(1) Results for the year ended December 31, 2019 included the acceleration of $10.3 million of depreciation expense due to the closure of the Resorts Casino Tunica property.
GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
Operations
(in thousands) (unaudited)
| TOTAL REVENUES | ADJUSTED EBITDA | ||||||||||||||
| Three Months Ended December 31, | Three Months Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Real estate | $ | 268,325 | $ | 258,452 | $ | 255,430 | $ | 253,762 | |||||||
| TRS Segment | 31,836 | 30,532 | 9,122 | 6,735 | |||||||||||
| Total | $ | 300,161 | $ | 288,984 | $ | 264,552 | $ | 260,497 | |||||||
| TOTAL REVENUES | ADJUSTED EBITDA | ||||||||||||||
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Real estate | 1,050,166 | 1,025,082 | $ | 1,009,708 | $ | 1,009,239 | |||||||||
| TRS Segment | 102,999 | 128,391 | $ | 25,748 | $ | 31,019 | |||||||||
| Total | $ | 1,153,165 | $ | 1,153,473 | $ | 1,035,456 | $ | 1,040,258 | |||||||
GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
General and Administrative Expense (1)
(in thousands) (unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Real estate general and administrative expenses | $ | 11,292 | $ | 11,333 | $ | 48,019 | $ | 42,713 | |||||||
| TRS Segment general and administrative expenses | 5,552 | 5,836 | 20,553 | 22,672 | |||||||||||
| Total reported general and administrative expenses | 16,844 | 17,169 | 68,572 | 65,385 | |||||||||||
(1) General and administrative expenses include payroll related expenses, insurance, utilities, professional fees and other administrative costs.
GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
Current Year Revenue Detail
(in thousands) (unaudited)
| Three Months Ended December 31, 2020 |
PENN Master Lease | PENN Amended Pinnacle Master Lease | CZR Master Lease | Lumiere Place Lease | BYD Master Lease | BYD Belterra Lease | PENN – Meadows Lease | Casino Queen Lease | PENN Morgantown Lease | Total | |||||||||||||||||||||||||
| Building base rent | $ | 69,851 | $ | 56,800 | $ | 15,554 | $ | 5,701 | $ | 18,911 | $ | 669 | $ | 3,953 | $ | 5,059 | $ | — | $ | 176,498 | |||||||||||||||
| Land base rent | 23,493 | 17,814 | 5,896 | — | 2,946 | 474 | — | — | 750 | 51,373 | |||||||||||||||||||||||||
| Percentage rent | 20,904 | 6,695 | — | — | 2,461 | 454 | 2,261 | 3,164 | — | 35,939 | |||||||||||||||||||||||||
| Total cash rental income | $ | 114,248 | $ | 81,309 | $ | 21,450 | $ | 5,701 | $ | 24,318 | $ | 1,597 | $ | 6,214 | $ | 8,223 | $ | 750 | $ | 263,810 | |||||||||||||||
| Straight-line rent adjustments | $ | 2,232 | $ | (4,836 | ) | $ | 2,580 | $ | — | $ | 574 | $ | (304 | ) | $ | 572 | $ | — | $ | — | $ | 818 | |||||||||||||
| Ground rent in revenue | 532 | 1,421 | 1,312 | — | 401 | — | — | — | — | 3,666 | |||||||||||||||||||||||||
| Other rental revenue | — | — | — | — | — | — | 31 | — | — | 31 | |||||||||||||||||||||||||
| Total rental income | $ | 117,012 | $ | 77,894 | $ | 25,342 | $ | 5,701 | $ | 25,293 | $ | 1,293 | $ | 6,817 | $ | 8,223 | $ | 750 | $ | 268,325 | |||||||||||||||
| Interest income from real estate loans | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Total income from real estate | $ | 117,012 | $ | 77,894 | $ | 25,342 | $ | 5,701 | $ | 25,293 | $ | 1,293 | $ | 6,817 | $ | 8,223 | $ | 750 | $ | 268,325 | |||||||||||||||
| Year Ended December 31, 2020 | PENN Master Lease | PENN Amended Pinnacle Master Lease | CZR Master Lease | Lumiere Place Lease and Loan | BYD Master Lease | BYD Belterra Lease and Loan | PENN – Meadows Lease | Casino Queen Lease | PENN Morgantown Lease | Total | |||||||||||||||||||||||||
| Building base rent | $ | 279,406 | $ | 227,201 | $ | 62,156 | $ | 5,828 | $ | 75,643 | $ | 1,783 | $ | 15,811 | $ | 9,101 | $ | — | $ | 676,929 | |||||||||||||||
| Land base rent | 93,969 | 71,256 | 15,916 | — | 11,785 | 1,263 | — | — | 750 | 194,939 | |||||||||||||||||||||||||
| Percentage rent | 82,595 | 28,452 | 10,020 | — | 10,308 | 1,211 | 10,637 | 5,424 | — | 148,647 | |||||||||||||||||||||||||
| Total cash rental income (1) | $ | 455,970 | $ | 326,909 | $ | 88,092 | $ | 5,828 | $ | 97,736 | $ | 4,257 | $ | 26,448 | $ | 14,525 | $ | 750 | $ | 1,020,515 | |||||||||||||||
| Straight-line rent adjustments | $ | 8,926 | $ | (10,555 | ) | $ | (2,980 | ) | $ | — | $ | (1,448 | ) | $ | (808 | ) | $ | 2,289 | $ | — | $ | — | $ | (4,576 | ) | ||||||||||
| Ground rent in revenue | 2,317 | 5,770 | 5,299 | — | 1,519 | — | — | — | 14,905 | ||||||||||||||||||||||||||
| Other rental revenue | — | — | — | — | — | — | 192 | — | — | 192 | |||||||||||||||||||||||||
| Total rental income | $ | 467,213 | $ | 322,124 | $ | 90,411 | $ | 5,828 | $ | 97,807 | $ | 3,449 | $ | 28,929 | $ | 14,525 | $ | 750 | $ | 1,031,036 | |||||||||||||||
| Interest income from real estate loans | — | — | — | 16,976 | — | 2,154 | — | — | — | 19,130 | |||||||||||||||||||||||||
| Total income from real estate | $ | 467,213 | $ | 322,124 | $ | 90,411 | $ | 22,804 | $ | 97,807 | $ | 5,603 | $ | 28,929 | $ | 14,525 | $ | 750 | $ | 1,050,166 | |||||||||||||||
(1) Cash rental income for the PENN leases is inclusive of rent credits recognized in connection with the Tropicana Las Vegas and Morgantown transactions which closed in 2020.
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, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net income | $ | 169,341 | $ | 114,291 | $ | 505,711 | $ | 390,881 | |||||||
| (Gains) losses from dispositions of property | (41,390 | ) | 42 | (41,393 | ) | 92 | |||||||||
| Real estate depreciation (1) | 56,141 | 54,426 | 220,069 | 230,716 | |||||||||||
| Funds from operations | $ | 184,092 | $ | 168,759 | $ | 684,387 | $ | 621,689 | |||||||
| Straight-line rent adjustments | (818 | ) | 8,644 | 4,576 | 34,574 | ||||||||||
| Other depreciation (2) | 2,799 | 2,264 | 10,904 | 9,719 | |||||||||||
| Amortization of land rights | 2,961 | 3,020 | 12,022 | 18,536 | |||||||||||
| Amortization of debt issuance costs, bond premiums and original issuance discounts | 2,471 | 2,858 | 10,503 | 11,455 | |||||||||||
| Stock based compensation | 3,352 | 3,845 | 20,004 | 16,198 | |||||||||||
| Losses on debt extinguishment | — | — | 18,113 | 21,014 | |||||||||||
| Loan impairment charges | — | — | — | 13,000 | |||||||||||
| Capital maintenance expenditures (3) | (1,501 | ) | (761 | ) | (3,130 | ) | (3,017 | ) | |||||||
| Adjusted funds from operations | $ | 193,356 | $ | 188,629 | $ | 757,379 | $ | 743,168 | |||||||
| Interest, net | 70,407 | 72,974 | 281,573 | 300,764 | |||||||||||
| Income tax expense | 1,759 | 991 | 3,877 | 4,764 | |||||||||||
| Capital maintenance expenditures (3) | 1,501 | 761 | 3,130 | 3,017 | |||||||||||
| Amortization of debt issuance costs, bond premiums and original issuance discounts | (2,471 | ) | (2,858 | ) | (10,503 | ) | (11,455 | ) | |||||||
| Adjusted EBITDA | $ | 264,552 | $ | 260,497 | $ | 1,035,456 | $ | 1,040,258 | |||||||
| Net income, per diluted common share | $ | 0.74 | $ | 0.53 | $ | 2.30 | $ | 1.81 | |||||||
| FFO, per diluted common share | $ | 0.81 | $ | 0.78 | $ | 3.11 | $ | 2.88 | |||||||
| AFFO, per diluted common share | $ | 0.85 | $ | 0.87 | $ | 3.45 | $ | 3.44 | |||||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Diluted | 227,842,874 | 215,962,065 | 219,772,725 | 215,786,023 | |||||||||||
(1) Real estate depreciation expense for the year ended December 30, 2019 included the acceleration of $10.3 million of depreciation expense due to the closure of the Resorts Casino Tunica property.
(2) Other depreciation includes both real estate and equipment depreciation from the Company’s taxable REIT subsidiaries, as well as equipment depreciation from the REIT subsidiaries.
(3) Capital maintenance expenditures are expenditures to replace existing fixed assets with a useful life greater than one year that are obsolete, worn out or no longer cost effective to repair.
Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, AFFO to Adjusted EBITDA and
Adjusted EBITDA to Cash Net Operating Income
Gaming and Leisure Properties, Inc. and Subsidiaries
REAL ESTATE and CORPORATE (REIT)
(in thousands) (unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Net income | $ | 168,585 | $ | 112,763 | $ | 508,060 | $ | 382,184 | |||||||
| (Gains) losses from dispositions of property | (41,402 | ) | — | (41,402 | ) | 8 | |||||||||
| Real estate depreciation | 56,141 | 54,426 | 220,069 | 230,716 | |||||||||||
| Funds from operations | $ | 183,324 | $ | 167,189 | $ | 686,727 | $ | 612,908 | |||||||
| Straight-line rent adjustments | (818 | ) | 8,644 | 4,576 | 34,574 | ||||||||||
| Other depreciation (1) | 480 | 496 | 1,972 | 1,992 | |||||||||||
| Amortization of land rights | 2,961 | 3,020 | 12,022 | 18,536 | |||||||||||
| Amortization of debt issuance costs, bond premiums and original issuance discounts | 2,471 | 2,858 | 10,503 | 11,455 | |||||||||||
| Stock based compensation | 3,352 | 3,845 | 20,004 | 16,198 | |||||||||||
| Losses on debt extinguishment | — | — | 18,113 | 21,014 | |||||||||||
| Loan impairment charges | — | — | — | 13,000 | |||||||||||
| Capital maintenance expenditures (2) | (31 | ) | (18 | ) | (186 | ) | (22 | ) | |||||||
| Adjusted funds from operations | $ | 191,739 | $ | 186,034 | $ | 753,731 | $ | 729,655 | |||||||
| Interest, net (3) | 65,949 | 70,372 | 265,597 | 290,360 | |||||||||||
| Income tax expense | 182 | 196 | 697 | 657 | |||||||||||
| Capital maintenance expenditures (2) | 31 | 18 | 186 | 22 | |||||||||||
| Amortization of debt issuance costs, bond premiums and original issuance discounts | (2,471 | ) | (2,858 | ) | (10,503 | ) | (11,455 | ) | |||||||
| Adjusted EBITDA | $ | 255,430 | $ | 253,762 | $ | 1,009,708 | $ | 1,009,239 | |||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Adjusted EBITDA | $ | 255,430 | $ | 253,762 | $ | 1,009,708 | $ | 1,009,239 | |||||||
| Real estate general and administrative expenses | 11,292 | 11,333 | 48,019 | 42,713 | |||||||||||
| Stock based compensation | (3,352 | ) | (3,845 | ) | (20,004 | ) | (16,198 | ) | |||||||
| Cash net operating income (4) | $ | 263,370 | $ | 261,250 | $ | 1,037,723 | $ | 1,035,754 | |||||||
(1) Other depreciation includes both real estate and equipment depreciation from the Company’s taxable REIT subsidiaries, as well as equipment depreciation from the REIT subsidiaries.…
The post Gaming and Leisure Properties, Inc. Reports Fourth Quarter 2020 Results appeared first on Eastern European Gaming – News – Interviews – Legal Market Updates – Premium Reports – Events – Directory.
Source: Eastern European Gaming
