PRESS RELEASE

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Oct 31, 2019

Gaming and Leisure Properties, Inc. Reports Third Quarter 2019 Results

- Completed Accretive Refinancing Transaction During the Quarter -
- Establishes 2019 Fourth Quarter Guidance and Increases Full Year Guidance -

WYOMISSING, Pa., Oct. 31, 2019 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”), North America's first gaming-focused real estate investment trust (“REIT”), today announced results for the quarter ended September 30, 2019. On a year-over-year basis, third quarter total revenue grew 13.2%, income from operations grew 13.8%, net income decreased 13.6%, Adjusted EBITDA increased 17.2% and funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) rose 12.6% and 13.6%, respectively. The year-over-year financial growth primarily reflects GLPI’s October 2018 acquisitions of real property assets operated by Boyd Gaming Corporation (“BYD”), Eldorado Resorts, Inc. (“ERI”) and Penn National Gaming, Inc. (“PENN”). The year-over-year decrease in net income was primarily attributable to the non-recurring losses on debt extinguishment of $21.0 million in connection with our cash tender offer to purchase our 4.875% senior unsecured notes due 2020 during the 2019 third quarter, partially offset by the acquisitions.

Chief Executive Officer, Peter M. Carlino, commented “GLPI delivered another quarter of solid financial results reflecting our initiatives and strategies to drive cash flow growth from accretive transactions while actively managing our capital structure and cost of capital. Our diversified portfolio of regional gaming assets, managed by the industry’s leading operators, continues to generate one of the most stable cash flow streams in the triple-net REIT sector. During the third quarter, we further strengthened our balance sheet through an opportunistic refinancing that reduced our borrowing costs and extended our average debt maturities. Our talented team remains focused on identifying and pursuing portfolio enhancing accretive transactions to position GLPI to extend its long-term record of dividend growth and value creation for shareholders.”

During the 2019 third quarter, shareholders received a quarterly cash dividend of $0.68 per share, marking a 7.9% increase over the comparable period in 2018. GLPI's current $2.72 annualized dividend represents 5.0% compound annual growth since the Company's formation. The annual cash dividend represents a yield of 6.7% based on the $40.36 per share closing price of the Company's stock on October 31, 2019.

Financial Highlights

    Three Months Ended
September 30,
(in millions, except per share data)   2019 Actual   2018 Actual
Total Revenue   $ 287.6     $ 254.1  
Income From Operations   $ 187.6     $ 164.8  
Net Income   $ 90.5     $ 104.8  
FFO (1)   $ 145.6     $ 129.4  
AFFO (2)   $ 186.5     $ 164.1  
Adjusted EBITDA (3)   $ 260.5     $ 222.2  
         
Net income, per diluted common share   $ 0.42     $ 0.49  
FFO, per diluted common share   $ 0.68     $ 0.60  
AFFO, per diluted common share   $ 0.87     $ 0.76  

(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, the amortization of land rights, straight-line rent adjustments, direct financing lease adjustments, losses on debt extinguishment, retirement costs and goodwill 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, direct financing lease adjustments, the amortization of land rights, losses on debt extinguishment, retirement costs and goodwill and loan impairment charges.

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 September 30, 2019, GLPI's portfolio consisted of interests in 46 gaming and related facilities, including Hollywood Casino Baton Rouge and Hollywood Casino Perryville, which are referred to as the "TRS Properties", the real property associated with 33 gaming and related facilities operated by PENN, the real property associated with 6 gaming and related facilities operated by ERI (including one mortgaged facility), the real property associated with 4 gaming and related facilities operated by BYD (including one mortgaged facility) 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 23.5 million square feet.

Guidance

The table below sets forth current guidance targets for financial results for the 2019 fourth quarter and full year, based on the following assumptions:

  • Includes the full year benefit of the transaction closed on October 1, 2018, with ERI and contributions from the transactions closed on October 15, 2018 with PENN, Pinnacle Entertainment, Inc. (“PNK”) and BYD;
  • Reported revenue from real estate of approximately $1,025.1 million for the year and $258.5 million for the fourth quarter consisting of:
(in millions)   Three Months Ended
December 31, 2019
  Full Year Ended
December 31, 2019
Cash Revenue from Real Estate        
PENN   $ 204.7     $ 811.9  
ERI   27.9     110.4  
BYD   26.3     104.2  
Casino Queen   3.6     14.5  
PENN non-assigned land lease   (0.7 )   (2.8 )
Total Cash Revenue from Real Estate   $ 261.8     $ 1,038.2  
         
Non-Cash Adjustments        
Straight-line rent   $ (8.6 )   $ (34.6 )
Land leases paid by tenants   5.3     21.5  
Total Revenue from Real Estate as Reported   $ 258.5     $ 1,025.1  
  • Cash rent includes 2019 escalators of $0.7 million related to the PNK master lease, $0.9 million relating to the PENN master lease, $0.2 million related to the Meadows lease and $0.3 million related to the ERI master lease for the year;
  • Adjusted EBITDA from the TRS Properties of approximately $30.2 million for the year and $5.9 million for the fourth quarter;
  • Blended income tax rate at the TRS Properties of 33%;
  • LIBOR is based on the forward yield curve; and
  • The basic share count is approximately 214.7 million shares for the year and the fourth quarter and the fully diluted share count is approximately 215.4 million shares for the year and 215.3 million shares for the fourth quarter.
    Three Months Ended
December 31,
  Full Year Ended
December 31,
(in millions, except per share data)   2019
Guidance
  2018
Actual
  2019
Revised
Guidance
  2018
Actual
Total Revenue   $ 288.2     $ 303.3     $ 1,152.7     $ 1,055.7  
                 
Net Income   $ 113.1     $ 45.9     $ 389.7     $ 339.5  
Losses from dispositions of property               0.3  
Real estate depreciation   54.5     51.5     230.8     125.6  
Funds From Operations (1)   $ 167.6     $ 97.4     $ 620.5     $ 465.4  
Straight-line rent adjustments   8.6     12.7     34.6     61.9  
Direct financing lease adjustments       1.2         38.4  
Other depreciation   2.3     2.9     9.8     11.4  
Amortization of land rights   3.0     3.0     18.6     11.3  
Amortization of debt issuance costs, bond premiums and original issuance discounts   2.9     2.9     11.4     12.2  
Stock based compensation   3.9     3.3     16.2     11.2  
Losses on debt extinguishment           21.0     3.5  
Retirement costs               13.1  
Goodwill impairment charges       59.5         59.5  
Loan impairment charges           13.0      
Capital maintenance expenditures   (1.4 )   (1.3 )   (3.6 )   (4.3 )
Adjusted Funds From Operations (2)   $ 186.9     $ 181.6     $ 741.5     $ 683.6  
Interest, net   73.6     77.2     301.3     245.9  
Income tax expense   0.9     0.8     4.6     5.0  
Capital maintenance expenditures   1.4     1.3     3.6     4.3  
Amortization of debt issuance costs, bond premiums and original issuance discounts   (2.9 )   (2.9 )   (11.4 )   (12.2 )
Adjusted EBITDA (3)   $ 259.9     $ 258.0     $ 1,039.6     $ 926.6  
                 
Net income, per diluted common share   $ 0.53     $ 0.21     $ 1.81     $ 1.58  
FFO, per diluted common share   $ 0.78     $ 0.45     $ 2.88     $ 2.17  
AFFO, per diluted common share   $ 0.87     $ 0.84     $ 3.44     $ 3.18  

(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, amortization of debt issuance costs, bond premiums and original issuance discounts, other depreciation, amortization of land rights, straight-line rent adjustments, direct financing lease adjustments, losses on debt extinguishment, retirement costs, goodwill impairment charges 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, direct financing lease adjustments, the amortization of land rights, losses on debt extinguishment, retirement costs, goodwill impairment charges and loan impairment charges.

Conference Call Details

The Company will hold a conference call on November 1, 2019 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: 13695540
The playback can be accessed through November 8, 2019.

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
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
Revenues              
Rental income $ 248,789     $ 170,276     $ 745,030     $ 509,546  
Income from direct financing lease     30,843         76,448  
Interest income from mortgaged real estate 7,206         21,600      
Real estate taxes paid by tenants     21,270         64,031  
Total income from real estate 255,995     222,389     766,630     650,025  
Gaming, food, beverage and other 31,617     31,750     97,859     102,385  
Total revenues 287,612     254,139     864,489     752,410  
Operating expenses              
Gaming, food, beverage and other 18,549     18,962     56,739     59,027  
Real estate taxes     21,586         64,981  
Land rights and ground lease expense 9,094     6,484     33,572     19,460  
General and administrative 15,042     15,006     48,266     56,272  
Depreciation 57,302     27,267     183,745     82,744  
Loan impairment charges         13,000      
Total operating expenses 99,987     89,305     335,322     282,484  
Income from operations 187,625     164,834     529,167     469,926  
               
Other income (expenses)              
Interest expense (75,111 )   (60,341 )   (228,362 )   (171,464 )
Interest income 235     1,418     572     2,790  
Losses on debt extinguishment (21,014 )       (21,014 )   (3,473 )
Total other expenses (95,890 )   (58,923 )   (248,804 )   (172,147 )
               
Income from operations before income taxes 91,735     105,911     280,363     297,779  
Income tax expense 1,188     1,096     3,773     4,194  
Net income $ 90,547     $ 104,815     $ 276,590     $ 293,585  
               
Earnings per common share:              
Basic earnings per common share $ 0.42     $ 0.49     $ 1.29     $ 1.37  
Diluted earnings per common share $ 0.42     $ 0.49     $ 1.29     $ 1.37  
                               

GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
Operations
(in thousands) (unaudited)

  TOTAL REVENUES   ADJUSTED EBITDA
  Three Months Ended
September 30,
  Three Months Ended
September 30,
  2019   2018   2019   2018
Real estate $ 255,995     $ 222,389     $ 252,999     $ 214,656  
GLP Holdings, LLC (TRS) 31,617     31,750     7,473     7,495  
Total $ 287,612     $ 254,139     $ 260,472     $ 222,151  
               
  TOTAL REVENUES   ADJUSTED EBITDA
  Nine Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
Real Estate $ 766,630     $ 650,025     $ 755,477     $ 642,120  
GLP Holdings, LLC (TRS) 97,859     102,385     24,284     26,504  
Total $ 864,489     $ 752,410     $ 779,761     $ 668,624  
                               

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

Three Months Ended September 30, 2019   PENN
Master
Lease
  PENN
Amended
Pinnacle
Master
Lease
  ERI
Master
Lease and
Mortgage
  BYD
Master
Lease and
Mortgage
  PENN -
Meadows
Lease
  Casino
Queen
Lease
  Total
Building base rent   $ 68,482     $ 56,555     $ 15,230     $ 18,911     $ 3,283     $ 2,275     $ 164,736  
Land base rent   23,493     17,813     3,340     2,946             47,592  
Percentage rent   21,370     7,942     3,340     2,808     2,792     1,356     39,608  
Total cash rental income   $ 113,345     $ 82,310     $ 21,910     $ 24,665     $ 6,075     $ 3,631     $ 251,936  
Straight-line rent adjustments   2,232     (6,318 )   (2,895 )   (2,234 )   572         (8,643 )
Ground rent in revenue   950     1,828     2,245     383             5,406  
Other rental revenue                   90         90  
Total rental income   $ 116,527     $ 77,820     $ 21,260     $ 22,814     $ 6,737     $ 3,631     $ 248,789  
Interest income from mortgaged real estate           5,590     1,616             7,206  
Total income from real estate   $ 116,527     $ 77,820     $ 26,850     $ 24,430     $ 6,737     $ 3,631     $ 255,995  


Nine Months Ended September 30, 2019   PENN
Master
Lease
  PENN
Amended
Pinnacle
Master
Lease
  ERI
Master
Lease and
Mortgage
  BYD
Master
Lease and
Mortgage
  PENN -
Meadows
Lease
  Casino
Queen
Lease
  Total
Building base rent   $ 205,446     $ 168,633     $ 45,689     $ 55,899     $ 9,850     $ 6,826     $ 492,343  
Land base rent   70,477     53,294     10,020     8,785             142,576  
Percentage rent   64,928     23,680     10,020     8,374     8,376     4,068     119,446  
Total cash rental income   $ 340,851     $ 245,607     $ 65,729     $ 73,058     $ 18,226     $ 10,894     $ 754,365  
Straight-line rent adjustments   6,695     (18,955 )   (8,684 )   (6,703 )   1,717         (25,930 )
Ground rent in revenue   2,838     5,338     6,746     1,235             16,157  
Other rental revenue                   438         438  
Total rental income   $ 350,384     $ 231,990     $ 63,791     $ 67,590     $ 20,381     $ 10,894     $ 745,030  
Interest income from mortgaged real estate           16,771     4,829             21,600  
Total income from real estate   $ 350,384     $ 231,990     $ 80,562     $ 72,419     $ 20,381     $ 10,894     $ 766,630  
                                                         

GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
General and Administrative Expense
(in thousands) (unaudited)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
Real estate general and administrative expenses $ 9,410     $ 10,009     $ 31,388     $ 40,077  
GLP Holdings, LLC (TRS) general and administrative expenses 5,632     4,997     16,878     16,195  
Total reported general and administrative expenses (1) $ 15,042     $ 15,006     $ 48,266     $ 56,272  

(1) General and administrative expenses include payroll related expenses, insurance, utilities, professional fees and other administrative costs.


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
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
Net income $ 90,547     $ 104,815     $ 276,590     $ 293,585  
Losses from dispositions of property 37     129     50     354  
Real estate depreciation 55,047     24,406     176,290     74,155  
Funds from operations $ 145,631     $ 129,350     $ 452,930     $ 368,094  
Straight-line rent adjustments 8,643     15,917     25,930     49,150  
Direct financing lease adjustments     8,002         37,241  
Other depreciation (1) 2,255     2,861     7,455     8,589  
Amortization of land rights 3,020     2,727     15,516     8,182  
Amortization of debt issuance costs, bond premiums and original issuance discounts 2,807     2,982     8,597     9,278  
Stock based compensation 3,845     3,275     12,353     7,878  
Losses on debt extinguishment 21,014         21,014     3,473  
Retirement costs             13,149  
Loan impairment charges         13,000      
Capital maintenance expenditures (2) (709 )   (970 )   (2,256 )   (2,954 )
Adjusted funds from operations $ 186,506     $ 164,144     $ 554,539     $ 502,080  
Interest, net 74,876     58,923     227,790     168,674  
Income tax expense 1,188     1,096     3,773     4,194  
Capital maintenance expenditures (2) 709     970     2,256     2,954  
Amortization of debt issuance costs, bond premiums and original issuance discounts (2,807 )   (2,982 )   (8,597 )   (9,278 )
Adjusted EBITDA $ 260,472     $ 222,151     $ 779,761     $ 668,624  
               
Net income, per diluted common share $ 0.42     $ 0.49     $ 1.29     $ 1.37  
FFO, per diluted common share $ 0.68     $ 0.60     $ 2.10     $ 1.71  
AFFO, per diluted common share $ 0.87     $ 0.76     $ 2.58     $ 2.34  
               
Weighted average number of common shares outstanding              
Diluted 215,325,154     214,872,707     215,217,574     214,717,803  

(1) Other depreciation includes both real estate and equipment depreciation from the Company's taxable REIT subsidiaries, as well as equipment depreciation from the REIT subsidiaries.

(2) Capital maintenance expenditures are expenditures to replace existing fixed assets with a useful life greater than one year that are obsolete, worn out or no longer cost effective to repair.

Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, AFFO to Adjusted EBITDA and
Adjusted EBITDA to Cash Net Operating Income
Gaming and Leisure Properties, Inc. and Subsidiaries
REAL ESTATE and CORPORATE (REIT)
(in thousands) (unaudited)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
Net income $ 88,461     $ 103,126     $ 269,421     $ 285,712  
Losses from dispositions of property     129     8     120  
Real estate depreciation 55,047     24,406     176,290     74,155  
Funds from operations $ 143,508     $ 127,661     $ 445,719     $ 359,987  
Straight-line rent adjustments 8,643     15,917     25,930     49,150  
Direct financing lease adjustments     8,002         37,241  
Other depreciation (1) 497     522     1,496     1,560  
Amortization of land rights 3,020     2,727     15,516     8,182  
Amortization of debt issuance costs, bond premiums and original issuance discounts 2,807     2,982     8,597     9,278  
Stock based compensation 3,845     3,275     12,353     7,878  
Losses on debt extinguishment 21,014         21,014     3,473  
Retirement costs             13,149  
Loan impairment charges         13,000      
Capital maintenance expenditures (2)         (4 )   (51 )
Adjusted funds from operations $ 183,334     $ 161,086     $ 543,621     $ 489,847  
Interest, net (3) 72,276     56,323     219,988     160,872  
Income tax expense 196     229     461     628  
Capital maintenance expenditures (2)         4     51  
Amortization of debt issuance costs, bond premiums and original issuance discounts (2,807 )   (2,982 )   (8,597 )   (9,278 )
Adjusted EBITDA $ 252,999     $ 214,656     $ 755,477     $ 642,120  


  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2019
Adjusted EBITDA $ 252,999     $ 755,477  
Real estate general and administrative expenses 9,410     31,388  
Stock based compensation (3,845 )   (12,353 )
Losses from dispositions of property     (8 )
Cash net operating income (4) $ 258,564     $ 774,504  

(1) Other depreciation includes both real estate and equipment depreciation from the Company's taxable REIT subsidiaries, as well as equipment depreciation from the REIT subsidiaries.

(2) Capital maintenance expenditures are expenditures to replace existing fixed assets with a useful life greater than one year that are obsolete, worn out or no longer cost effective to repair.

(3) Interest expense, net is net of intercompany interest eliminations of $2.6 million and $7.8 million for the three and nine months ended September 30, 2019 and 2018, respectively.

(4) Cash net operating income (“Cash NOI”) is rental and other property income less cash property level expenses.

Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, and AFFO to Adjusted EBITDA
Gaming and Leisure Properties, Inc. and Subsidiaries
GLP HOLDINGS, LLC (TRS)
(in thousands) (unaudited)

  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2019   2018   2019   2018
Net income $ 2,086     $ 1,689     $ 7,169     $ 7,873  
Losses from dispositions of property 37         42     234  
Real estate depreciation              
Funds from operations $ 2,123     $ 1,689     $ 7,211     $ 8,107  
Straight-line rent adjustments              
Direct financing lease adjustments              
Other depreciation (1) 1,758     2,339     5,959     7,029  
Amortization of land rights              
Amortization of debt issuance costs, bond premiums and original issuance discounts              
Stock based compensation              
Losses on debt extinguishment              
Retirement costs              
Loan impairment charges              
Capital maintenance expenditures (2) (709 )   (970 )   (2,252 )   (2,903 )
Adjusted funds from operations $ 3,172     $ 3,058     $ 10,918     $ 12,233  
Interest, net 2,600     2,600     7,802     7,802  
Income tax expense 992     867     3,312     3,566  
Capital maintenance expenditures (2) 709     970     2,252     2,903  
Amortization of debt issuance costs, bond premiums and original issuance discounts              
Adjusted EBITDA $ 7,473     $ 7,495     $ 24,284     $ 26,504  

(1) Other depreciation includes both real estate and equipment depreciation from the Company's taxable REIT subsidiaries, as well as equipment depreciation from the REIT subsidiaries.

(2) Capital maintenance expenditures are expenditures to replace existing fixed assets with a useful life greater than one year that are obsolete, worn out or no longer cost effective to repair.

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

  September 30, 2019   December 31, 2018
  (unaudited)    
Assets      
Real estate investments, net $ 7,154,980     $ 7,331,460  
Property and equipment, used in operations, net 95,617     100,884  
Mortgage loans receivable 303,684     303,684  
Right-of-use assets and land rights, net 859,293     673,207  
Cash and cash equivalents 25,556     25,783  
Prepaid expenses 2,665     30,967  
Goodwill 16,067     16,067  
Other intangible assets 9,577     9,577  
Loan receivable     13,000  
Deferred tax assets 5,812     5,178  
Other assets 31,501     67,486  
Total assets $ 8,504,752     $ 8,577,293  
       
Liabilities      
Accounts payable $ 166     $ 2,511  
Accrued expenses 6,716     30,297  
Accrued interest 84,456     45,261  
Accrued salaries and wages 10,215     17,010  
Gaming, property, and other taxes 1,111     42,879  
Lease liabilities 201,497      
Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts 5,749,136     5,853,497  
Deferred rental revenue 319,841     293,911  
Deferred tax liabilities 262     261  
Other liabilities 24,720     26,059  
Total liabilities 6,398,120     6,311,686  
       
Shareholders’ equity      
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at September 30, 2019 and December 31, 2018)      
Common stock ($.01 par value, 500,000,000 shares authorized, 214,682,856 and 214,211,932 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively) 2,147     2,142  
Additional paid-in capital 3,955,555     3,952,503  
Accumulated deficit (1,851,070 )   (1,689,038 )
Total shareholders’ equity 2,106,632     2,265,607  
Total liabilities and shareholders’ equity $ 8,504,752     $ 8,577,293  
               

Debt Capitalization

The Company had $25.6 million of unrestricted cash and $5.7 billion in total debt at September 30, 2019. The Company’s debt structure as of September 30, 2019 was as follows:

      As of September 30, 2019
    Years to
Maturity
Interest Rate   Balance
          (in thousands)
Unsecured $1,175 Million Revolver Due May 2023 (1)   3.6 3.557 %   $ 60,000  
Unsecured Term Loan A-1 Due April 2021 (1)   1.6 3.544 %   449,000  
Senior Unsecured Notes Due November 2020   1.1 4.875 %   215,174  
Senior Unsecured Notes Due April 2021   1.5 4.375 %   400,000  
Senior Unsecured Notes Due November 2023   4.1 5.375 %   500,000  
Senior Unsecured Notes Due September 2024   4.9 3.350 %   400,000  
Senior Unsecured Notes Due June 2025   5.7 5.250 %   850,000  
Senior Unsecured Notes Due April 2026   6.5 5.375 %   975,000  
Senior Unsecured Notes Due June 2028   8.7 5.750 %   500,000  
Senior Unsecured Notes Due January 2029   9.3 5.300 %   750,000  
Senior Unsecured Notes Due January 2030   10.3 4.000 %   700,000  
Finance lease liability   6.9 4.780 %   1,021  
Total long-term debt         $ 5,800,195  
Less: unamortized debt issuance costs, bond premiums and original issuance discounts         (51,059 )
Total long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts         $ 5,749,136  
Weighted average   6.1 4.826 %    

(1) The rate on the term loan facility and revolver is LIBOR plus 1.50%.

Rating Agency Update - Issue Rating

Rating Agency   Rating
Standard & Poor's   BBB-
Fitch   BBB-
Moody's   Ba1
     

Properties

Description Location Date Acquired Tenant/Operator
PENN Master Lease (20 Properties)      
Hollywood Casino Lawrenceburg Lawrenceburg, IN 11/1/2013 PENN
Hollywood Casino Aurora Aurora, IL 11/1/2013 PENN
Hollywood Casino Joliet Joliet, IL 11/1/2013 PENN
Argosy Casino Alton Alton, IL 11/1/2013 PENN
Hollywood Casino Toledo Toledo, OH 11/1/2013 PENN
Hollywood Casino Columbus Columbus, OH 11/1/2013 PENN
Hollywood Casino at Charles Town Races Charles Town, WV 11/1/2013 PENN
Hollywood Casino at Penn National Race Course Grantville, PA 11/1/2013 PENN
M Resort Henderson, NV 11/1/2013 PENN
Hollywood Casino Bangor Bangor, ME 11/1/2013 PENN
Zia Park Casino Hobbs, NM 11/1/2013 PENN
Hollywood Casino Gulf Coast Bay St. Louis, MS 11/1/2013 PENN
Argosy Casino Riverside Riverside, MO 11/1/2013 PENN
Hollywood Casino Tunica Tunica, MS 11/1/2013 PENN
Boomtown Biloxi Biloxi, MS 11/1/2013 PENN
Hollywood Casino St. Louis Maryland Heights, MO 11/1/2013 PENN
Hollywood Gaming Casino at Dayton Raceway Dayton, OH 11/1/2013 PENN
Hollywood Gaming Casino at Mahoning Valley Race Track Youngstown, OH 11/1/2013 PENN
Resorts Casino Tunica (1) Tunica, MS 5/1/2017 PENN
1st Jackpot Casino Tunica, MS 5/1/2017 PENN
Amended Pinnacle Master Lease (12 Properties)      
Ameristar Black Hawk Black Hawk, CO 4/28/2016 PENN
Ameristar East Chicago East Chicago, IN 4/28/2016 PENN
Ameristar Council Bluffs Council Bluffs, IA 4/28/2016 PENN
L'Auberge Baton Rouge Baton Rouge, LA 4/28/2016 PENN
Boomtown Bossier City Bossier City, LA 4/28/2016 PENN
L'Auberge Lake Charles Lake Charles, LA 4/28/2016 PENN
Boomtown New Orleans New Orleans, LA 4/28/2016 PENN
Ameristar Vicksburg Vicksburg, MS 4/28/2016 PENN
River City Casino & Hotel St. Louis, MO 4/28/2016 PENN
Jackpot Properties (Cactus Petes and Horseshu) Jackpot, NV 4/28/2016 PENN
Plainridge Park Casino Plainridge, MA 10/15/2018 PENN
ERI Master Lease (5 Properties)      
Tropicana Atlantic City Atlantic City, NJ 10/1/2018 ERI
Tropicana Evansville Evansville, IN 10/1/2018 ERI
Tropicana Laughlin Laughlin, NV 10/1/2018 ERI
Trop Casino Greenville Greenville, MS 10/1/2018 ERI
Belle of Baton Rouge Baton Rouge, LA 10/1/2018 ERI
BYD Master Lease (3 Properties)      
Belterra Casino Resort Florence, IN 4/28/2016 BYD
Ameristar Kansas City Kansas City, MO 4/28/2016 BYD
Ameristar St. Charles St. Charles, MO 4/28/2016 BYD
Single Asset Leases      
The Meadows Racetrack and Casino Washington, PA 9/9/2016 PENN
Casino Queen East St. Louis, IL 1/23/2014 Casino Queen
Mortgaged Properties      
Belterra Park Gaming & Entertainment Center Cincinnati, OH N/A BYD
Lumière Place St. Louis, MO N/A ERI
TRS Properties      
Hollywood Casino Baton Rouge Baton Rouge, LA 11/1/2013 GLPI
Hollywood Casino Perryville Perryville, MD 11/1/2013 GLPI

(1) The Company entered into an agreement to terminate the long-term ground lease at this property, which will be effective in February 2020.

Dividends

On August 20, 2019, the Company’s Board of Directors declared the third quarter 2019 dividend. Shareholders of record on September 6, 2019 received $0.68 per common share, which was paid on September 20, 2019. The Company anticipates the following schedule regarding 2019 dividend payments:

Payment Dates
March 22, 2019 (paid)
June 28, 2019 (paid)
September 20, 2019 (paid)
December 27, 2019  
   

Lease and Mortgage Information

  Master Leases   Single Asset Leases
  PENN Master
Lease
PENN
Amended
Pinnacle
Master Lease
ERI Master
Lease
BYD Master
Lease
  PENN-
Meadows
Lease
Casino Queen
Lease
Property Count 20 12 5 3   1 1
Number of States Represented 10 8 5 2   1 1
Commencement Date 11/1/2013 4/28/2016 10/1/2018 10/15/2018 (1)   9/9/2016 1/23/2014
Initial Term 15 10 15 10 (1)   10 15
Renewal Terms 20 (4x5 years) 25 (5x5 years) 20 (4x5 years) 25 (5x5 years)   19 (3x5years, 1x4 years) 20 (4x5 years)
Corporate Guarantee Yes Yes Yes No   Yes No
Master Lease with Cross Collateralization Yes Yes Yes Yes   No No
Technical Default Landlord Protection Yes Yes Yes Yes   Yes Yes
Default Adjusted Rent to Revenue Coverage 1.1 1.2 1.2 1.4   1.2 1.4
Competitive Radius Landlord Protection Yes Yes Yes Yes   Yes Yes
Escalator Details              
Yearly Base Rent Escalator Maximum 2% 2% 2% 2%   5% (2) 2%
Coverage as of Tenants' latest Earnings Report (3) 1.91 1.75 1.98 1.90   2.06 1.33
Minimum Escalator Coverage Governor 1.8 1.8 1.2 (4) 1.8   2.0 1.8
Yearly Anniversary for Realization November 2019 May 2020 October 2020 May 2020   October 2020 February 2020
Percentage Rent Reset Details              
Reset Frequency 5 years 2 years 2 years 2 years   2 years 5 years
Next Reset November 2023 May 2020 October 2020 May 2020   October 2020 February 2024


  Mortgages
  BYD (Belterra) (5) ERI (Lumière Place) (6)
Property Count 1 1
Commencement Date 10/15/2018 10/1/2018
Current Interest Rate 11.20% 9.27%
Credit Enhancement Guarantee from Master Lease Entity Corporate Guarantee

(1) Boyd assumed Pinnacle's legacy lease initial term, which will end on April 30, 2026.
(2) Meadows yearly escalator is 5% until a breakpoint when it resets to 2%.
(3) Information with respect to our tenants' rent coverage is derived from the public statements and filings of PENN, BYD and ERI as of September 30, 2019 and from certifications provided by Casino Queen, Inc. Casino Queen is not a public reporting entity. Its information was certified by the tenant as of September 30, 2019. GLPI has not independently verified the accuracy of the tenants' information and therefore makes no representation as to the accuracy of such information.
(4) Eldorado escalator governor is 1.2x for the initial 5 years and then 1.8x in subsequent years.
(5)The Belterra Park mortgage is supported by the BYD Master Lease subsidiaries and its terms are consistent with the BYD Master Lease.
(6) The Lumière loan bears interest at a rate equal to (i) 9.09% until the one-year anniversary of the closing, and (ii) 9.27% until its maturity.

Disclosure Regarding Non-GAAP Financial Measures

FFO, FFO per diluted common share, AFFO, AFFO per diluted common share, Adjusted EBITDA and Cash NOI, which are detailed in the reconciliation tables that accompany this release, are used by the Company as performance measures for benchmarking against the Company’s peers and as internal measures of business operating performance, which is used for a bonus metric. The Company believes FFO, FFO per diluted common share, AFFO, AFFO per diluted common share, Adjusted EBITDA and Cash NOI provide a meaningful perspective of the underlying operating performance of the Company’s current business. This is especially true since these measures exclude real estate depreciation and we believe that real estate values fluctuate based on market conditions rather than depreciating in value ratably on a straight-line basis over time. Cash NOI is rental and other property income 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 GAAP adjustments to rental revenue, such as straight-line rent adjustments and non-cash ground lease income and expense. It is management's view that Cash NOI is a performance measure used to evaluate the operating performance of the Company’s real estate operations and provides investors relevant and useful information because it reflects only income and operating expense items that are incurred at the property level and presents them on an unleveraged basis.

FFO, FFO per diluted common share, AFFO, AFFO per diluted common share, Adjusted EBITDA and Cash NOI are non-GAAP financial measures, that are considered supplemental measures for the real estate industry and a supplement to GAAP measures. NAREIT defines FFO as net income (computed in accordance with generally accepted accounting principles), excluding (gains) or losses from sales of property and real estate depreciation. We have defined AFFO as FFO excluding stock based compensation expense, the amortization of debt issuance costs, bond premiums and original issuance discounts, other depreciation, the amortization of land rights, straight-line rent adjustments, direct financing lease adjustments, losses on debt extinguishment, retirement costs and goodwill and loan impairment charges, reduced by capital maintenance expenditures. We have defined Adjusted EBITDA as net income excluding interest, taxes on income, depreciation, (gains) or losses from sales of property, stock based compensation expense, straight-line rent adjustments, direct financing lease adjustments, the amortization of land rights, losses on debt extinguishment, retirement costs, and goodwill and loan impairment charges. Finally, we have defined Cash NOI as Adjusted EBITDA for the REIT excluding real estate general and administrative expenses and including stock based compensation expense and (gains) or losses from sales of property.

FFO, FFO per diluted common share, AFFO, AFFO per diluted common share, Adjusted EBITDA and Cash NOI are not recognized terms under GAAP. These non-GAAP financial measures: (i) do not represent cash flow from operations as defined by GAAP; (ii) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (iii) are not alternatives to cash flow as a measure of liquidity. In addition, these measures should not be viewed as an indication of our ability to fund all of our cash needs, including to make cash distributions to our shareholders, to fund capital improvements, or to make interest payments on our indebtedness. Investors are also cautioned that FFO, FFO per share, AFFO, AFFO per share, Adjusted EBITDA and Cash NOI, as presented, may not be comparable to similarly titled measures reported by other real estate companies, including REITs due to the fact that not all real estate companies use the same definitions. Our presentation of these measures does not replace the presentation of our financial results in accordance with GAAP.

About Gaming and Leisure Properties

GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. GLPI expects to grow its portfolio by pursuing opportunities to acquire additional gaming facilities to lease to gaming operators. GLPI also intends to diversify its portfolio over time, including by acquiring properties outside the gaming industry to lease to third parties. GLPI elected to be taxed as a REIT for United States federal income tax purposes commencing with the 2014 taxable year and was the first gaming-focused REIT in North America.

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 statements regarding our financial outlook for the fourth quarter of 2019 and the full 2019 fiscal year; our expectations regarding future acquisitions and expected 2019 dividend payments. Forward looking statements can be identified by the use of forward looking terminology such as “expects,” “believes,” “estimates,” “intends,” “may,” “will,” “should” or “anticipates” or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward looking statements are inherently subject to risks, uncertainties and assumptions about GLPI and its subsidiaries, including risks related to the following: the 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 pay dividends in the future; 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, 2018, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as filed with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this press release may not occur. 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.

Contact

Investor Relations – Gaming and Leisure Properties, Inc.
Steven T. Snyder   Joseph Jaffoni, Richard Land, James Leahy at JCIR
T: 610/378-8215   T: 212/835-8500
Email: investorinquiries@glpropinc.com   Email: glpi@jcir.com

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Source: Gaming and Leisure Properties, Inc.