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Gaming and Leisure Properties, Inc. Reports Record Second Quarter 2021 Results

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WYOMISSING, Pa., July 29, 2021 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”) today announced record financial results for the quarter ended June 30, 2021.

Financial Highlights

Three Months Ended June 30,

(in millions, except per share data)

2021

2020

Total Revenue

$

317.8

$

262.0

Income from Operations

$

212.1

$

180.7

Net Income

$

138.2

$

112.4

FFO (1)

$

195.1

$

166.9

AFFO (2)

$

203.8

$

180.6

Adjusted EBITDA (3)

$

276.2

$

246.9

Net income, per diluted common share

$

0.59

$

0.52

FFO, per diluted common share

$

0.83

$

0.77

AFFO, per diluted common share

$

0.87

$

0.84

___________________________

(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 and losses on debt extinguishment, 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, and losses on debt extinguishment.

Peter Carlino, Chairman and Chief Executive Officer of GLPI, commented, "GLPI’s record second quarter results and our financial performance over the last year highlight the value of resilient regional gaming markets and our high quality tenant roster that has been further diversified while maintaining a close watch on our capital structure and cost of capital. As a result, we have established sustained financial stability, capitalized on new growth opportunities with existing and new tenants, and returned capital to shareholders in the form of stock and cash dividends on an uninterrupted basis, despite the challenges presented by the pandemic.

“As we look to the second half of 2021, GLPI remains well positioned to deliver record results as we further expand and diversify our portfolio and benefit from the continued strength in regional gaming markets, with many of the operations at GLPI’s properties recording both record bottom line results and margins, as well as growth in topline performance compared to 2019 (prior to the COVID-19 outbreak). As a result, on May 1, 2021, full rent escalators were achieved with respect to the Amended Pinnacle Master Lease, the Boyd Master Lease and the Belterra Park Lease, which increased annualized rent by $6.1 million. Furthermore, given Penn National Gaming's strong recent performance, we expect to achieve a full rent escalation with respect to the Penn Master Lease in the fourth quarter that would increase annualized rent by $5.6 million. We expect to continue to invest in existing and new tenant relationships by sourcing portfolio enhancing, accretive growth opportunities. Taken together, these factors support our confidence that the Company is well positioned to extend its long track record of value creation for shareholders.”

Recent Developments

  • As of July 29, 2021, all of GLPI's 50 properties, (including Hollywood Casino Baton Rouge which is owned and operated by the Company's taxable REIT subsidiary and has been contracted for sale, as described below) are open to the public.

  • On April 13, 2021, GLPI announced an expansion of its relationship with Bally's Corporation (NYSE: BALY) ("Bally's") to acquire the real estate assets of Bally's casino properties in Rock Island, Illinois and Black Hawk, Colorado, for total consideration of $150 million. The parties expect to add the properties to the master lease created in connection with Bally's acquisition of Tropicana Evansville and Dover Downs Hotel & Casino (the "Bally's Master Lease") (described more fully below). This transaction is expected to generate incremental annualized rent of $12.0 million, with a normalized rent coverage of 2.25x in the first calendar year post-acquisition. The acquisitions of the real estate assets of Bally's properties in Rock Island and Black Hawk are expected to close in early 2022.

  • Bally’s also granted GLPI a right of first refusal to fund the real property acquisition or development project costs associated with all potential future transactions in Michigan, Maryland, Virginia and New York through one or more sale-leaseback or similar transactions for a term of seven years. Furthermore, both GLPI and Bally’s committed to a structure whereby GLPI had the potential to acquire additional assets in sale-leaseback transactions to the extent Bally’s elects to utilize GLPI’s capital as a funding source for their proposed acquisition of Gamesys Group plc ("Gamesys"). The $500 million commitment was intended to provide Bally’s alternative financing, which, at GLPI’s sole discretion could be funded in the form of equity, additional prepaid sale-leaseback transactions or secured loans. On July 26, 2021, Bally's announced that as a result of better than expected operating performance at its land-based retail casinos and interactive businesses, it does not plan to draw on the Company's commitment to fund the Gamesys acquisition.

  • Bally’s agreed to acquire both GLPI’s non-land real estate assets and Penn National Gaming, Inc.’s (NASDAQ: PENN) ("Penn") outstanding equity interests in Tropicana Las Vegas Hotel and Casino, Inc. for an aggregate cash acquisition price of $150 million. GLPI will retain ownership of the land and concurrently enter into a 50-year ground lease with Bally's for an initial annual rent of $10.5 million. The ground lease will be supported by a Bally’s corporate guarantee and cross-defaulted with the Bally’s Master Lease. This transaction is expected to close in early 2022.

  • On December 15, 2020, the Company announced an 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 expected in the second half of 2021, 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.

  • In accordance with the rent deferral agreement that was signed in 2020 with Casino Queen, $2.1 million of rent was deferred due to the property's temporary closure in the first quarter of 2021. GLPI anticipates this amount will be collected at the closing of the HCBR transaction.

  • On December 15, 2020, the Company announced that Penn exercised its option to acquire the operations of Hollywood Casino Perryville for $31.1 million in cash. This transaction closed on July 1, 2021. GLPI entered 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, increasing by 1.50% during such period and then increasing by 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 2020 and June 2020, respectively, HCBR (the operations of which are anticipated to be divested in the second half of 2021) and Hollywood Casino Perryville (the operations of which were divested on July 1, 2021), the gaming properties GLPI owns and operates through its taxable REIT subsidiary, have generated strong financial results. Second quarter 2021 net revenues and adjusted EBITDA from these properties exceeded comparable 2019 levels (prior to the COVID-19 outbreak), increasing by $10.4 million, or 31.3%, and $6.7 million, or 78.4%, respectively.

  • On October 27, 2020, the Company entered into a series of definitive agreements pursuant to which a subsidiary of Bally's acquired 100% of the equity interests in the Caesars Entertainment, Inc. (NASDAQ: CZR) ("Caesars") subsidiary that operated Tropicana Evansville and the Company reacquired 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 acquired the real estate assets of the Dover Downs Hotel & Casino, located in Dover, Delaware, which is currently operated by Bally's, for a cash purchase price of approximately $144.0 million. These transactions closed on June 3, 2021 and the Tropicana Evansville and Dover Downs Hotel & Casino facilities were added to the new Bally's Master Lease. The Bally's Master Lease has 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 is $40.0 million annually, subject to an annual escalator of up to 2% determined in relation to the annual increase in the CPI.

  • The Company's leases contain variable rent that are 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). The Company does not have any variable rent resets until 2022.

Dividend

On May 20, 2021, the Company's Board of Directors declared a second quarter cash dividend of $0.67 per share on the Company's common stock. The dividend was paid on June 25, 2021 to shareholders of record on June 11, 2021.

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 June 30, 2021, GLPI's portfolio consisted of interests in 50 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), the real property associated with 2 gaming and related facilities operated by Bally's and the real property associated with the Casino Queen in East St. Louis, Illinois. These facilities are geographically diversified across 17 states and contain approximately 25.3 million square feet of improvements.

Conference Call Details

The Company will hold a conference call on July 30, 2021 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: 13721022
The playback can be accessed through Friday, August 6, 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 June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Revenues

Rental income

$

274,102

$

245,749

$

537,944

$

495,156

Interest income from real estate loans

6,240

13,556

Total income from real estate

274,102

251,989

537,944

508,712

Gaming, food, beverage and other

43,659

9,979

81,360

36,738

Total revenues

317,761

261,968

619,304

545,450

Operating expenses

Gaming, food, beverage and other

22,382

4,858

42,308

21,361

Land rights and ground lease expense

8,191

5,781

14,924

13,859

General and administrative

16,821

13,231

32,903

29,218

Losses (gains) from dispositions of properties

93

(8

)

93

(7

)

Depreciation

58,150

57,390

116,851

113,953

Total operating expenses

105,637

81,252

207,079

178,384

Income from operations

212,124

180,716

412,225

367,066

Other income (expenses)

Interest expense

(70,413

)

(69,474

)

(140,826

)

(141,478

)

Interest income

54

273

178

469

Losses on debt extinguishment

(5

)

(17,334

)

Total other expenses

(70,359

)

(69,206

)

(140,648

)

(158,343

)

Income before income taxes

141,765

111,510

271,577

208,723

Income tax provision (benefit)

3,549

(840

)

6,177

(521

)

Net income

$

138,216

$

112,350

$

265,400

$

209,244

Earnings per common share:

Basic earnings per common share

$

0.59

$

0.52

$

1.14

$

0.97

Diluted earnings per common share

$

0.59

$

0.52

$

1.14

$

0.97


GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES

Operations
(in thousands) (unaudited)

TOTAL REVENUES

ADJUSTED EBITDA

Three Months Ended June 30,

Three Months Ended June 30,

2021

2020

2021

2020

Real estate

$

274,102

$

251,989

$

260,986

$

246,009

TRS Segment

43,659

9,979

15,171

851

Total

$

317,761

$

261,968

$

276,157

$

246,860


TOTAL REVENUES

ADJUSTED EBITDA

Six Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Real estate

537,944

508,712

$

515,821

$

499,868

TRS Segment

81,360

36,738

$

26,941

$

5,805

Total

$

619,304

$

545,450

$

542,762

$

505,673


GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES

General and Administrative Expense (1)
(in thousands) (unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Real estate general and administrative expenses

$

10,715

$

8,961

20,792

19,646

TRS Segment general and administrative expenses

6,106

4,270

12,111

9,572

Total reported general and administrative expenses

$

16,821

$

13,231

$

32,903

$

29,218

___________________________

(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 June 30, 2021

Building base rent

Land base rent

Percentage rent

Total cash rental income

Straight-line rent adjustments

Ground rent in revenue

Other rental revenue

Total rental income

Penn Master Lease

$

69,851

$

23,492

$

26,387

$

119,730

$

2,232

$

891

$

12

$

122,865

Amended Pinnacle Master Lease

57,558

17,814

6,694

82,066

(4,837

)

1,804

79,033

Penn Meadows Lease

3,952

2,262

6,214

572

63

6,849

Penn Morgantown

750

750

750

Caesars Master Lease

15,628

5,932

21,560

2,590

403

24,553

Lumiere Place Lease

5,701

5,701

5,701

BYD Master Lease

19,162

2,947

2,462

24,571

574

401

25,546

BYD Belterra Lease

678

473

455

1,606

(303

)

1,303

Bally's Master Lease

3,111

3,111

760

3,871

Casino Queen Lease

2,276

1,355

3,631

3,631

Total

$

177,917

$

51,408

$

39,615

$

268,940

$

828

$

4,259

$

75

$

274,102


Six Months Ended June 30, 2021

Building base rent

Land base rent

Percentage rent

Total cash rental income

Straight-line rent adjustments

Ground rent in revenue

Other rental revenue

Total rental income

Penn Master Lease

$

139,703

$

46,984

$

49,954

$

236,641

$

4,463

$

1,593

$

12

$

242,709

Amended Pinnacle Master Lease

114,358

35,628

13,389

163,375

(9,673

)

3,437

157,139

Penn Meadows Lease

7,905

4,523

12,428

1,144

113

13,685

Penn Morgantown

1,500

1,500

1,500

Caesars Master Lease

31,257

11,864

43,121

5,179

805

49,105

Lumiere Place Lease

11,402

11,402

11,402

BYD Master Lease

38,073

5,893

4,923

48,889

1,148

775

50,812

BYD Belterra Lease

1,346

947

909

3,202

(605

)

2,597

Bally's Master Lease

3,111

3,111

760

3,871

Casino Queen Lease

3,211

1,913

5,124

5,124

Total

$

350,366

$

102,816

$

75,611

$

528,793

$

1,656

$

7,370

$

125

$

537,944


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 June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net income

$

138,216

$

112,350

$

265,400

$

209,244

Losses (gains) from dispositions of property

93

(8

)

93

(7

)

Real estate depreciation

56,783

54,551

113,172

108,830

Funds from operations

$

195,092

$

166,893

$

378,665

$

318,067

Straight-line rent adjustments

(828

)

1,678

(1,656

)

10,322

Other depreciation (1)

1,367

2,839

3,679

5,123

Amortization of land rights

3,006

3,020

5,849

6,040

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

2,470

2,593

4,940

5,363

Stock based compensation

3,612

4,064

9,400

8,299

Losses on debt extinguishment

5

17,334

Capital maintenance expenditures (2)

(914

)

(495

)

(1,352

)

(1,141

)

Adjusted funds from operations

$

203,805

$

180,597

$

399,525

$

369,407

Interest, net

70,359

$

69,201

140,648

141,009

Income tax expense (benefit)

3,549

$

(840

)

6,177

(521

)

Capital maintenance expenditures (2)

914

$

495

1,352

1,141

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

(2,470

)

$

(2,593

)

(4,940

)

(5,363

)

Adjusted EBITDA

$

276,157

$

246,860

$

542,762

$

505,673

Net income, per diluted common share

$

0.59

$

0.52

$

1.14

$

0.97

FFO, per diluted common share

$

0.83

$

0.77

$

1.62

$

1.47

AFFO, per diluted common share

$

0.87

$

0.84

$

1.71

$

1.71

Weighted average number of common shares outstanding

Diluted

234,050,329

215,931,653

233,768,296

215,868,231

___________________________

(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 June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net income

$

131,841

$

117,268

$

255,889

$

213,789

Losses (gains) from dispositions of property

Real estate depreciation

56,783

54,551

113,172

108,830

Funds from operations

$

188,624

$

171,819

$

369,061

$

322,619

Straight-line rent adjustments

(828

)

1,678

(1,656

)

10,322

Other depreciation (1)

468

498

940

995

Amortization of land rights

3,006

3,020

5,849

6,040

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

2,470

2,593

4,940

5,363

Stock based compensation

3,612

4,064

9,400

8,299

Losses on debt extinguishment

5

17,334

Capital maintenance expenditures (2)

(44

)

(56

)

(65

)

(144

)

Adjusted funds from operations

$

197,308

$

183,621

$

388,469

$

370,828

Interest, net (3)

65,900

64,743

131,731

133,950

Income tax expense

204

182

496

309

Capital maintenance expenditures (2)

44

56

65

144

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

(2,470

)

(2,593

)

(4,940

)

(5,363

)

Adjusted EBITDA

$

260,986

$

246,009

$

515,821

$

499,868


Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Adjusted EBITDA

$

260,986

$

246,009

$

515,821

$

499,868

Real estate general and administrative expenses

10,715

8,961

20,792

19,646

Stock based compensation

(3,612

)

(4,064

)

(9,400

)

(8,299

)

Cash net operating income (4)

$

268,089

$

250,906

$

527,213

$

511,215

___________________________

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

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

(3) Interest, net is net of intercompany interest eliminations of $4.5 million and $8.9 million for the three and six months ended June 30, 2021 compared to $4.5 million and $7.1 million for the corresponding periods in the prior year.

(4) Cash net operating income 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
TRS Segment
(in thousands) (unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net income

$

6,375

$

(4,918

)

$

9,511

$

(4,545

)

Losses (gains) from dispositions of property

93

(8

)

93

(7

)

Funds from operations

6,468

(4,926

)

$

9,604

$

(4,552

)

Other depreciation (1)

899

2,341

2,739

4,128

Capital maintenance expenditures (2)

(870

)

(439

)

(1,287

)

(997

)

Adjusted funds from operations

6,497

(3,024

)

$

11,056

$

(1,421

)

Interest, net

4,459

4,458

$

8,917

$

7,059

Income tax expense (benefit)

3,345

(1,022

)

$

5,681

$

(830

)

Capital maintenance expenditures (2)

870

439

$

1,287

$

997

Adjusted EBITDA

$

15,171

$

851

$

26,941

$

5,805

___________________________

(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)

June 30, 2021

December 31, 2020

Assets

Real estate investments, net

$

7,820,070

$

7,287,158

Property and equipment, used in operations, net

79,077

80,618

Assets held for sale

142,939

61,448

Real estate of Tropicana Las Vegas, net

304,831

Right-of-use assets and land rights, net

865,392

769,197

Cash and cash equivalents

147,594

486,451

Prepaid expenses

2,152

2,098

Deferred tax assets, net

5,668

5,690

Other assets

36,427

36,877

Total assets

$

9,099,319

$

9,034,368

Liabilities

Accounts payable

$

585

$

375

Accrued expenses

2,167

398

Accrued interest

70,598

72,285

Accrued salaries and wages

3,404

5,849

Gaming, property, and other taxes

295

146

Lease liabilities

186,928

152,203

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

5,759,561

5,754,689

Deferred rental revenue

331,405

333,061

Deferred tax liabilities

380

359

Other liabilities

42,265

39,985

Total liabilities

6,397,588

6,359,350

Shareholders’ equity

Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at June 30, 2021 and December 31, 2020)

Common stock ($.01 par value, 500,000,000 shares authorized, 234,288,809 and 232,452,220 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

2,343

2,325

Additional paid-in capital

4,354,643

4,284,789

Accumulated deficit

(1,655,255

)

(1,612,096

)

Total shareholders’ equity

2,701,731

2,675,018

Total liabilities and shareholders’ equity

$

9,099,319

$

9,034,368

Debt Capitalization

The Company had $147.6 million of unrestricted cash and $5.76 billion in total debt at June 30, 2021. The Company’s debt structure as of June 30, 2021 was as follows:

Years to Maturity

Interest Rate

Balance

(in thousands)

Unsecured $1,175 Million Revolver Due May 2023 (1)

1.9

%

Unsecured Term Loan A-2 Due May 2023 (1)

1.9

1.57

%

424,019

Senior Unsecured Notes Due November 2023

2.3

5.38

%

500,000

Senior Unsecured Notes Due September 2024

3.2

3.35

%

400,000

Senior Unsecured Notes Due June 2025

3.9

5.25

%

850,000

Senior Unsecured Notes Due April 2026

4.8

5.38

%

975,000

Senior Unsecured Notes Due June 2028

6.9

5.75

%

500,000

Senior Unsecured Notes Due January 2029

7.6

5.30

%

750,000

Senior Unsecured Notes Due January 2030

8.6

4.00

%

700,000

Senior Unsecured Notes Due January 2031

9.6

4.00

%

700,000

Finance lease liability

5.2

4.78

%

793

Total long-term debt

5,799,812

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

(40,251

)

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

5,759,561

Weighted average

5.7

4.63

%

___________________________

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

Rating Agency - Issue Rating

Rating Agency

Rating

Standard & Poor's

BBB-

Fitch

BBB-

Moody's

Ba1

Properties

Description

Location

Date Acquired

Tenant/Operator

PENN Master Lease (19 Properties)

Hollywood Casino Lawrenceburg

Lawrenceburg, IN

11/1/2013

PENN

Hollywood Casino Aurora

Aurora, IL

11/1/2013

PENN

Hollywood Casino Joliet

Joliet, IL

11/1/2013

PENN

Argosy Casino Alton

Alton, IL

11/1/2013

PENN

Hollywood Casino Toledo

Toledo, OH

11/1/2013

PENN

Hollywood Casino Columbus

Columbus, OH

11/1/2013

PENN

Hollywood Casino at Charles Town Races

Charles Town, WV

11/1/2013

PENN

Hollywood Casino at Penn National Race Course

Grantville, PA

11/1/2013

PENN

M Resort

Henderson, NV

11/1/2013

PENN

Hollywood Casino Bangor

Bangor, ME

11/1/2013

PENN

Zia Park Casino

Hobbs, NM

11/1/2013

PENN

Hollywood Casino Gulf Coast

Bay St. Louis, MS

11/1/2013

PENN

Argosy Casino Riverside

Riverside, MO

11/1/2013

PENN

Hollywood Casino Tunica

Tunica, MS

11/1/2013

PENN

Boomtown Biloxi

Biloxi, MS

11/1/2013

PENN

Hollywood Casino St. Louis

Maryland Heights, MO

11/1/2013

PENN

Hollywood Gaming Casino at Dayton Raceway

Dayton, OH

11/1/2013

PENN

Hollywood Gaming Casino at Mahoning Valley Race Track

Youngstown, OH

11/1/2013

PENN

1st Jackpot Casino

Tunica, MS

5/1/2017

PENN

Amended Pinnacle Master Lease (12 Properties)

Ameristar Black Hawk

Black Hawk, CO

4/28/2016

PENN

Ameristar East Chicago

East Chicago, IN

4/28/2016

PENN

Ameristar Council Bluffs

Council Bluffs, IA

4/28/2016

PENN

L'Auberge Baton Rouge

Baton Rouge, LA

4/28/2016

PENN

Boomtown Bossier City

Bossier City, LA

4/28/2016

PENN

L'Auberge Lake Charles

Lake Charles, LA

4/28/2016

PENN

Boomtown New Orleans

New Orleans, LA

4/28/2016

PENN

Ameristar Vicksburg

Vicksburg, MS

4/28/2016

PENN

River City Casino & Hotel

St. Louis, MO

4/28/2016

PENN

Jackpot Properties (Cactus Petes and Horseshu)

Jackpot, NV

4/28/2016

PENN

Plainridge Park Casino

Plainridge, MA

10/15/2018

PENN

CZR Master Lease (6 Properties)

Tropicana Atlantic City

Atlantic City, NJ

10/1/2018

CZR

Tropicana Laughlin

Laughlin, NV

10/1/2018

CZR

Trop Casino Greenville

Greenville, MS

10/1/2018

CZR

Belle of Baton Rouge

Baton Rouge, LA

10/1/2018

CZR

Isle Casino Hotel Bettendorf

Bettendorf, IA

12/18/2020

CZR

Isle Casino Hotel Waterloo

Waterloo, IA

12/18/2020

CZR

BYD Master Lease (3 Properties)

Belterra Casino Resort

Florence, IN

4/28/2016

BYD

Ameristar Kansas City

Kansas City, MO

4/28/2016

BYD

Ameristar St. Charles

St. Charles, MO

4/28/2016

BYD

Bally's Master Lease ( 2 properties)

Tropicana Evansville

Evansville, IN

06/03/2021

BALY

Dover Downs

Dover, DE

06/03/2021

BALY

Single Asset Leases

Belterra Park Gaming & Entertainment Center

Cincinnati, OH

10/15/2018

BYD

Lumière Place

St. Louis, MO

10/1/2018

CZR

The Meadows Racetrack and Casino

Washington, PA

9/9/2016

PENN

Hollywood Casino Morgantown

Morgantown, PA

10/1/2020

PENN

Casino Queen

East St. Louis, IL

1/23/2014

Casino Queen

TRS Segment

Hollywood Casino Baton Rouge

Baton Rouge, LA

11/1/2013

GLPI

Hollywood Casino Perryville

Perryville, MD

11/1/2013

GLPI

Tropicana Las Vegas

Las Vegas, NV

4/16/2020

PENN

Lease Information

Master Leases

PENN Master
Lease

PENN
Amended
Pinnacle
Master Lease

Caesars
Amended and
Restated
Master Lease

BYD Master
Lease

Bally's Master
Lease

Property Count

19

12

6

3

2

Number of States Represented

10

8

5

2

2

Commencement Date

11/1/2013

4/28/2016

10/1/2018

10/15/2018

6/3/2021

Lease Expiration Date

10/31/2033

4/30/2031

9/30/2038

04/30/2026

06/02/2036

Remaining Renewal Terms

15 (3x5 years)

20 (4x5 years)

20 (4x5 years)

25 (5x5 years)

20 (4x5 years)

Corporate Guarantee

Yes

Yes

Yes

No

Yes

Master Lease with Cross Collateralization

Yes

Yes

Yes

Yes

Yes

Technical Default Landlord Protection

Yes

Yes

Yes

Yes

Yes

Default Adjusted Revenue to Rent Coverage (1)

1.1

1.2

1.2

1.4

1.35

Competitive Radius Landlord Protection

Yes

Yes

Yes

Yes

Yes

Escalator Details

Yearly Base Rent Escalator Maximum

2%

2%

(3)

2%

(4)

Coverage ratio at March 31, 2021 (2)

1.53

1.54

1.22

1.89

N/A

Minimum Escalator Coverage Governor

1.8

1.8

N/A

1.8

N/A

Yearly Anniversary for Realization

November

May

October

May

June

Percentage Rent Reset Details

Reset Frequency

5 years

2 years

N/A

2 years

N/A

Next Reset

November 2023

May 2022

N/A

May 2022

N/A

(1) In support of our tenants, compliance with this ratio has been waived for all periods impacted by COVID-19. The Bally's Master Lease ratio declines to 1.20 once annual rent reaches $60 million.

(2) Information with respect to our tenants' rent coverage was provided by our tenants as of March 31, 2021. GLPI has not independently verified the accuracy of the tenants' information and therefore makes no representation as to its accuracy.

(3) In the third lease year the annual building base rent became $62.1 million and the annual land component was increased to $23.6 million. Building base rent shall be increased by 1.25% annually in the 5th and 6th lease year, 1.75% in the 7th and 8th lease year, and 2% in the 9th lease year and each year thereafter. On December 18, 2020, the Company and Caesars completed an Exchange Agreement (the "Exchange Agreement") with subsidiaries of Caesars in which Caesars transferred to the Company the real estate assets of Waterloo and Bettendorf in exchange for the transfer by the Company to Caesars of the real property assets of Tropicana Evansville, plus a cash payment of $5.7 million. In connection with the Exchange Agreement, the annual building base rent was increased to $62.5 million and the annual land component was increased to $23.7 million.

(4) If the CPI increase is at least 0.5% for any lease year, then the rent under the Bally's Master Lease shall increase by the greater of 1% of the rent as of the immediately preceding lease year and the CPI increase capped at 2%. If the CPI is less than 0.5% for such lease year, then the rent shall not increase for such lease year.

Lease Information

Single Property Leases

Belterra Park
Lease operated
by BYD

PENN-Meadows
Lease

Lumière Place
Lease operated
by CZR

Casino Queen
Lease

PENN - Morgantown
Lease

Commencement Date

10/15/2018

9/9/2016

9/29/2020

1/23/2014

10/1/2020

Lease Expiration Date

04/30/2026

9/30/2026

10/31/2033

1/23/2029

10/31/2040

Remaining Renewal Terms

25 (5x5 years)

19 (3x5years, 1x4 years)

20 (4x5 years)

20 (4x5 years)

30 (6x5 years)

Corporate Guarantee

No

Yes

Yes

No

Yes

Technical Default Landlord Protection

Yes

Yes

Yes

Yes

Yes

Default Adjusted Revenue to Rent Coverage (1)

1.4

1.2

1.2

1.4

N/A

Competitive Radius Landlord Protection

Yes

Yes

Yes

Yes

N/A

Escalator Details

Yearly Base Rent Escalator Maximum

2%

5% (2)

2%

2%

1.5%

Coverage ratio at March 31, 2021 (3)

2.56

0.87

1.93

0.94

N/A

Minimum Escalator Coverage Governor

1.8

2.0

1.2 (4)

1.8

N/A

Yearly Anniversary for Realization

May

October

October

February

TBD

Percentage Rent Reset Details

Reset Frequency

2 years

2 years

N/A

5 years

N/A

Next Reset

May 2022

October 2022

N/A

February 2024

N/A

(1) In support of our tenants, compliance with this ratio has been waived for all periods impacted by COVID-19.

(2) Meadows contains an annual escalator for up to 5% of the base rent, if certain rent coverage ratio thresholds are met, which remains at 5% until the earlier of 10 years or the year in which total rent is $31 million, at which point the escalator is reduced to 2%.

(3) Information with respect to our tenants' rent coverage was provided by our tenants as of March 31, 2021. GLPI has not independently verified the accuracy of the tenants' information and therefore makes no representation as to its accuracy.

(4) For the first five lease years after which time the ratio increases to 1.8.

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, inclusive of rent credits recognized in connection with the Tropicana Las Vegas transaction, 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, 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 GAAP), excluding gains or losses from sales of property and real estate depreciation. We have defined AFFO as FFO excluding stock based compensation expense, the amortization of debt issuance costs, bond premiums and original issuance discounts, other depreciation, the amortization of land rights, straight-line rent adjustments and losses on debt extinguishment 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, the amortization of land rights, and losses on debt extinguishment. For financial reporting and debt covenant purposes, the Company includes the amounts of non-cash rents earned in FFO, AFFO, and Adjusted EBITDA. Finally, we have defined Cash NOI as Adjusted EBITDA 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.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including our expectations regarding our receipt of rent payments and rent escalation in future periods, the impact of pending transactions and the potential for future 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: the effect of pandemics, such as COVID-19, on GLPI as a result of the impact of such pandemics on the business operations of GLPI’s tenants and their continued ability to pay rent in a timely manner or at all; GLPI’s ability to successfully consummate the announced transactions with Bally's, and Casino Queen, including the ability of the parties to satisfy the various conditions to closing, including receipt of all required regulatory approvals, or other delays or impediments to completing the proposed transactions; the availability of and the ability to identify suitable and attractive acquisition and development opportunities and the ability to acquire and lease those properties on favorable terms; the ability to receive, or delays in obtaining, the regulatory approvals required to own and/or operate its properties, or other delays or impediments to completing acquisitions or projects; GLPI's ability to maintain its status as a REIT; our ability to access capital through debt and equity markets in amounts and at rates and costs acceptable to GLPI; the impact of our substantial indebtedness on our future operations; changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs or to the gaming or lodging industries; and other factors described in GLPI’s Annual Report on Form 10-K for the year ended December 31, 2020, 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

investorinquiries@glpropinc.com

glpi@jcir.com