Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) Q1 2021 Earnings Conference Call April 30, 2021 10:00 AM ET Company Participants Joe Jaffoni - Investor Relations Peter Carlino - Chairman and Chief Executive Officer Desiree Burke - Senior Vice President, Chief Accounting Officer and Treasurer Matthew Demchyk - Senior Vice President and Chief Investment Officer Steve Ladany - Senior Vice President and Chief Development Officer Brandon Moore - Executive Vice President, General Counsel and Secretary Conferenc ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements of Gaming and Leisure Properties, Inc. (GLPI) and its subsidiaries for the quarter ended March 31, 2021, including balance sheets, income statements, statements of changes in shareholders' equity, and cash flow statements, along with detailed notes explaining the company's business, accounting policies, and financial instrument details [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show a slight decrease in total assets and shareholders' equity from December 31, 2020, to March 31, 2021, while total liabilities remained relatively stable | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total assets | $9,013,490 | $9,034,368 | | Total liabilities | $6,366,847 | $6,359,350 | | Total shareholders' equity | $2,646,643 | $2,675,018 | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) GLPI reported a significant increase in net income for the three months ended March 31, 2021, compared to the same period in 2020, driven by higher total revenues and a substantial reduction in other expenses, primarily due to the absence of debt extinguishment losses | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | | Total revenues | $301,543 | $283,482 | | Income from operations | $200,101 | $186,350 | | Total other expenses | $(70,289) | $(89,137) | | Net income | $127,184 | $96,894 | | Basic earnings per common share | $0.55 | $0.45 | | Diluted earnings per common share | $0.54 | $0.45 | - Net income increased by **$30.3 million** (31.3%) year-over-year, primarily due to higher revenues and the absence of **$17.3 million** in debt extinguishment losses incurred in Q1 2020[16](index=16&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) The statements of changes in shareholders' equity reflect a decrease in total equity from December 31, 2020, to March 31, 2021, primarily due to dividends paid, partially offset by net income | Metric | December 31, 2020 (in thousands) | March 31, 2021 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total Shareholders' Equity | $2,675,018 | $2,646,643 | | Dividends paid | N/A | $(151,496) | | Net income | N/A | $127,184 | - Dividends paid amounted to **$0.65 per common share** for Q1 2021, totaling **$151.5 million**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operating activities increased slightly, while investing activities remained minimal. Financing activities shifted from a significant cash provider in 2020 (due to debt issuance) to a cash user in 2021, primarily for dividend payments | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | | :-------------------------------- | :----------------------------------- | :----------------------------------- | | Net cash provided by operating activities | $205,208 | $198,785 | | Net cash used in investing activities | $(1,044) | $(646) | | Net cash (used in) provided by financing activities | $(161,380) | $334,583 | | Net increase in cash and cash equivalents | $34,289 | $532,722 | | Cash and cash equivalents at end of period | $520,740 | $559,545 | - The significant cash provided by financing activities in Q1 2020 was due to **$1.17 billion** in proceeds from long-term debt issuance, which was not repeated in Q1 2021[22](index=22&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential context and detailed breakdowns for the financial statements, covering GLPI's business model as a REIT, significant accounting policies, recent transactions, debt structure, lease agreements, and segment information, crucial for understanding the company's financial position and performance [1. Business and Operations](index=9&type=section&id=1.%20Business%20and%20Operations) GLPI operates as a self-administered REIT, primarily acquiring, financing, and owning real estate for gaming operators under triple-net lease arrangements. As of March 31, 2021, its portfolio included 48 gaming and related facilities across 16 states, with 100% occupancy, and the company continues to pursue growth opportunities - GLPI's primary business is acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements[26](index=26&type=chunk) - As of March 31, 2021, GLPI's portfolio consisted of interests in **48 gaming and related facilities**, geographically diversified across **16 states**, and was **100% occupied**[26](index=26&type=chunk) - The company's portfolio includes properties leased to Penn National Gaming, Caesars Entertainment, Boyd Gaming, and Casino Queen, in addition to its own Taxable REIT Subsidiary (TRS) properties[26](index=26&type=chunk) - The COVID-19 pandemic led to temporary closures of all casino operations in mid-March 2020, with most properties reopening at limited capacity by early July 2020. As of the filing date, none of GLPI's properties are closed[36](index=36&type=chunk) [2. Basis of Presentation](index=11&type=section&id=2.%20Basis%20of%20Presentation) The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information, with all intercompany accounts and transactions eliminated. Management's estimates and assumptions are used, and prior period amounts have been reclassified for consistent presentation - Financial statements are prepared in accordance with U.S. GAAP for interim information, requiring management estimates and assumptions[37](index=37&type=chunk)[38](index=38&type=chunk) - Certain prior period amounts were reclassified, specifically gains and losses from dispositions of properties, now presented separately from General and administrative expenses[39](index=39&type=chunk) [3. New Accounting Pronouncements](index=12&type=section&id=3.%20New%20Accounting%20Pronouncements) The company adopted ASU No. 2020-04, Reference Rate Reform, which provides optional expedients for contract modifications affected by the phasing out of LIBOR. GLPI anticipates no material impact from this pronouncement due to its limited exposure to LIBOR-referencing obligations - ASU No. 2020-04, Reference Rate Reform, was adopted to address the discontinuation of LIBOR[42](index=42&type=chunk) - GLPI does not anticipate any material impact from this pronouncement due to the limited amount of obligations and contracts referencing LIBOR[42](index=42&type=chunk) [4. Real Estate Investments](index=12&type=section&id=4.%20Real%20Estate%20Investments) Real estate investments, net, decreased slightly from December 31, 2020, to March 31, 2021, primarily due to accumulated depreciation | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | Total real estate investments | $8,698,098 | $8,698,098 | | Less accumulated depreciation | $(1,467,329) | $(1,410,940) | | Real estate investments, net | $7,230,769 | $7,287,158 | [5. Property and Equipment Used in Operations](index=13&type=section&id=5.%20Property%20and%20Equipment%20Used%20in%20Operations) Property and equipment used in operations, net, primarily for TRS Properties, saw a minor decrease from December 31, 2020, to March 31, 2021, reflecting ongoing depreciation and slight changes in construction in progress | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | Total property and equipment | $177,768 | $177,114 | | Less accumulated depreciation | $(97,849) | $(96,496) | | Property and equipment, net | $79,919 | $80,618 | [6. Assets Held for Sale](index=13&type=section&id=6.%20Assets%20Held%20for%20Sale) GLPI has classified the operating assets of Hollywood Casino Baton Rouge and Hollywood Casino Perryville as assets held for sale, with expected closings in the second half of 2021. These transactions involve selling operations while retaining real estate and entering into new master lease agreements - GLPI entered into a definitive agreement to sell the operations of Hollywood Casino Baton Rouge to Casino Queen for **$28.2 million**, retaining real estate and entering a new master lease with initial annual cash rent of approximately **$21.4 million**[46](index=46&type=chunk) - Penn agreed to purchase the operations of Hollywood Casino Perryville for **$31.1 million**, with GLPI leasing the real estate back to Penn for an initial annual rent of **$7.77 million**[47](index=47&type=chunk) | Assets Held for Sale (in thousands) | March 31, 2021 | | :---------------------------------- | :------------- | | Property and equipment, used in operations, net | $9,153 | | Goodwill | $16,067 | | Other intangible assets | $9,577 | | Total Assets Held for Sale | $70,457 | [7. Lease Assets and Lease Liabilities](index=14&type=section&id=7.%20Lease%20Assets%20and%20Lease%20Liabilities) GLPI's lease assets primarily consist of right-of-use assets and land rights related to ground leases, which are subleased to tenants. Lease liabilities represent future lease obligations, with a weighted average remaining lease term of 56.23 years and a discount rate of 6.73% | Lease Assets (in thousands) | March 31, 2021 | December 31, 2020 | | :-------------------------- | :------------- | :---------------- | | Right-of-use assets - operating leases | $150,917 | $151,339 | | Land rights, net | $615,015 | $617,858 | | Total | $765,932 | $769,197 | | Lease Liabilities (in thousands) | March 31, 2021 | | :------------------------------- | :------------- | | Total lease payments | $622,448 | | Less: interest | $(470,544) | | Present value of lease liabilities | $151,904 | | Lease Expense (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--------------------------- | :-------------------------------- | :-------------------------------- | | Operating lease cost | $2,928 | $3,695 | | Variable lease cost | $1,010 | $1,462 | | Short-term lease cost | $327 | $227 | | Amortization of land right assets | $2,843 | $3,020 | | Total lease cost | $7,108 | $8,404 | - Weighted average remaining lease term for operating leases is **56.23 years**, with a weighted average discount rate of **6.73%**[59](index=59&type=chunk) [8. Long-term Debt](index=17&type=section&id=8.%20Long-term%20Debt) GLPI's long-term debt primarily consists of senior unsecured notes and a term loan facility. The company refinanced and extended debt maturities in 2020, resulting in a stable total long-term debt balance as of March 31, 2021, with significant borrowing capacity remaining under its revolving credit facility | Long-term Debt (in thousands) | March 31, 2021 | December 31, 2020 | | :------------------------------ | :------------- | :---------------- | | Total long-term debt | $5,799,846 | $5,799,879 | | Net of unamortized costs | $5,757,125 | $5,754,689 | | Future Minimum Repayments (in thousands) | Amount | | :--------------------------------------- | :----- | | Within one year | $137 | | 2-3 years | $924,313 | | 4-5 years | $1,250,324 | | Over 5 years | $3,625,072 | | Total | $5,799,846 | - As of March 31, 2021, GLPI had **$1,174.6 million** available borrowing capacity under its Revolver[64](index=64&type=chunk) - The company was in compliance with all financial covenants under its Amended Credit Facility and Senior Notes as of March 31, 2021[66](index=66&type=chunk)[69](index=69&type=chunk) [9. Fair Value of Financial Assets and Liabilities](index=19&type=section&id=9.%20Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities) GLPI estimates the fair value of its financial instruments, classifying them into a three-level hierarchy based on input observability. Cash and cash equivalents, deferred compensation plan assets, and Amended Credit Facility obligations approximate carrying value, while Senior Notes have a higher fair value than their carrying amount | Financial Instrument (in thousands) | Carrying Amount (March 31, 2021) | Fair Value (March 31, 2021) | | :---------------------------------- | :------------------------------- | :-------------------------- | | Cash and cash equivalents | $520,740 | $520,740 | | Deferred compensation plan assets | $31,005 | $31,005 | | Amended Credit Facility | $424,019 | $424,019 | | Senior Notes | $5,375,000 | $5,903,868 | - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[76](index=76&type=chunk) [10. Commitments and Contingencies](index=21&type=section&id=10.%20Commitments%20and%20Contingencies) GLPI is involved in various legal and administrative proceedings in the normal course of business but does not anticipate a material adverse effect on its financial position or results of operations from these matters - The Company is subject to various legal and administrative proceedings but does not believe the final outcome will have a material adverse effect on its consolidated financial position or results of operations[79](index=79&type=chunk) [11. Revenue Recognition](index=21&type=section&id=11.%20Revenue%20Recognition) GLPI's revenue primarily derives from triple-net operating leases with gaming operators, featuring fixed and performance-based rent components, annual escalators, and tenant responsibilities for executory costs. Lease terms are determined based on reasonable assurance of renewal options, varying by lease type and tenant business significance - GLPI's rental income is primarily from triple-net master leases with Penn, Caesars, and Boyd, and single-property leases with Casino Queen, Caesars (Lumière Place), and Boyd (Belterra Park)[80](index=80&type=chunk) - Lease structures include fixed rent, often with annual escalators (e.g., **2% or CPI-linked**), and percentage rent components based on facility net revenues[82](index=82&type=chunk)[83](index=83&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Tenants are responsible for all executory costs, including maintenance, insurance, property taxes, and utilities[94](index=94&type=chunk) | Rental Income (in thousands) | Three Months Ended March 31, 2021 | | :--------------------------- | :-------------------------------- | | Building base rent | $172,449 | | Land base rent | $51,408 | | Percentage rent | $35,996 | | Total cash rental income | $259,853 | | Straight-line rent adjustments | $828 | | Ground rent in revenue | $3,111 | | Other rental revenue | $50 | | Total rental income | $263,842 | [12. Earnings Per Share](index=24&type=section&id=12.%20Earnings%20Per%20Share) Basic and diluted EPS increased for the three months ended March 31, 2021, compared to 2020, reflecting higher net income and a slight increase in weighted-average common shares outstanding | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Basic EPS | $0.55 | $0.45 | | Diluted EPS | $0.54 | $0.45 | | Weighted-average common shares outstanding (basic, in thousands) | 232,775 | 215,090 | | Diluted weighted-average common shares outstanding (in thousands) | 233,465 | 215,449 | [13. Shareholders' Equity](index=25&type=section&id=13.%20Shareholders'%20Equity) GLPI did not sell any common stock under its ATM Program during Q1 2021, retaining $599.6 million for future issuance. The company declared and paid a common stock dividend of $0.65 per share for the first quarter of 2021 - No shares were sold under the ATM Program during Q1 2021, with **$599.6 million** remaining for issuance[111](index=111&type=chunk) | Dividend Details | 2021 (Q1) | 2020 (Q1) | | :---------------- | :-------- | :-------- | | Dividend Per Share | $0.65 | $0.70 | | Dividend Amount (in thousands) | $151,308 | $150,574 | [14. Stock-Based Compensation](index=26&type=section&id=14.%20Stock-Based%20Compensation) GLPI recognized $3.4 million in compensation expense for time-based restricted stock awards and $2.4 million for performance-based restricted stock awards during Q1 2021. Unrecognized compensation costs for these awards total $6.8 million and $18.6 million, respectively, to be recognized over their remaining vesting periods - Recognized **$3.4 million** in compensation expense for time-based restricted stock awards in Q1 2021, up from **$1.8 million** in Q1 2020[114](index=114&type=chunk) - Recognized **$2.4 million** in compensation expense for performance-based restricted stock awards in Q1 2021 and Q1 2020[116](index=116&type=chunk) - As of March 31, 2021, total unrecognized compensation cost for restricted stock awards was **$6.8 million** (weighted average vesting period of **1.90 years**) and **$18.6 million** for performance-based awards (weighted average vesting period of **2.25 years**)[114](index=114&type=chunk)[116](index=116&type=chunk) [15. Segment Information](index=27&type=section&id=15.%20Segment%20Information) GLPI operates with two reportable segments: GLP Capital, which holds the majority of leased real property, and the TRS Segment, comprising Hollywood Casino Perryville, Hollywood Casino Baton Rouge, and Tropicana Las Vegas real estate. The TRS Segment showed significant revenue and income growth in Q1 2021 compared to Q1 2020 | Segment Performance (in thousands) | GLP Capital (Q1 2021) | TRS Segment (Q1 2021) | GLP Capital (Q1 2020) | TRS Segment (Q1 2020) | | :--------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Total revenues | $263,842 | $37,701 | $256,723 | $26,759 | | Income from operations | $190,171 | $9,930 | $183,184 | $3,166 | | Net income | $124,048 | $3,136 | $96,521 | $373 | - The TRS Segment's total revenues increased by **40.9%** and net income by **740.8%** year-over-year, largely due to the impact of COVID-19 closures in Q1 2020[120](index=120&type=chunk) [16. Supplemental Disclosures of Cash Flow Information and Noncash Activities](index=28&type=section&id=16.%20Supplemental%20Disclosures%20of%20Cash%20Flow%20Information%20and%20Noncash%20Activities) Supplemental cash flow information indicates an increase in cash paid for interest in Q1 2021 compared to Q1 2020. No noncash investing and financing activities occurred during the three months ended March 31, 2021 or 2020 | Cash Flow Information (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Cash paid for income taxes, net | $24 | $0 | | Cash paid for interest | $58,645 | $52,339 | - No noncash investing and financing activities were reported for the three months ended March 31, 2021 and 2020[123](index=123&type=chunk) [17. Pending Acquisitions](index=28&type=section&id=17.%20Pending%20Acquisitions) GLPI has definitive agreements to acquire the real property assets of Tropicana Evansville and Dover Downs Hotel & Casino from Bally's for a total of $484.0 million, expected to close in mid-2021. These properties will be added to a new Bally's Master Lease with an initial annual rent of $40.0 million, subject to CPI-linked escalators - GLPI will acquire real property assets of Tropicana Evansville and Dover Downs Hotel & Casino from Bally's for approximately **$340.0 million** and **$144.0 million**, respectively[124](index=124&type=chunk) - These acquisitions, expected to close in mid-2021, will be added to a new Bally's Master Lease with an initial annual rent of **$40.0 million**, subject to annual escalators of up to **2%** based on CPI[124](index=124&type=chunk) [18. Subsequent Events](index=28&type=section&id=18.%20Subsequent%20Events) Subsequent to the quarter end, GLPI entered a binding term sheet with Bally's to acquire real estate in Black Hawk, CO, and Rock Island, IL, for $150 million, generating $12 million in incremental rent under the Bally's Master Lease, expected to close in early 2022. Bally's also granted GLPI a right of first refusal for future real property acquisitions in several states and committed to a structure for potential additional sale-leaseback transactions up to $500 million - On April 13, 2021, GLPI announced a binding term sheet with Bally's to acquire real estate in Black Hawk, CO, and Rock Island, IL, for **$150 million**, expected to generate **$12 million** in incremental rent[125](index=125&type=chunk) - Bally's granted GLPI a **seven-year** right of first refusal for real property acquisitions or development projects in Michigan, Maryland, New York, and Virginia[126](index=126&type=chunk) - Bally's plans to acquire GLPI's non-land real estate assets and Penn's equity interests in Tropicana Las Vegas for **$150 million**, with GLPI retaining land ownership and entering a **50-year** ground lease with **$10.5 million** initial annual rent[127](index=127&type=chunk) - GLPI and Bally's committed to a structure for potential additional sale-leaseback transactions up to **$500 million**, providing Bally's an alternative financing commitment[128](index=128&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=28&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on GLPI's financial condition and operational results for the three months ended March 31, 2021, highlighting the company's business model, recent developments, financial performance, and liquidity. It details the impact of COVID-19, pending acquisitions, and the drivers behind revenue and expense changes, including non-GAAP financial measures [Our Operations](index=29&type=section&id=Our%20Operations) GLPI, a REIT spun off from Penn National Gaming, focuses on acquiring and leasing gaming real estate under triple-net arrangements. Its portfolio includes 48 facilities, 100% occupied, with major leases to Penn, Caesars, and Boyd. Recent transactions include the acquisition of Tropicana Las Vegas real estate and pending sales of TRS operations with new leasebacks - GLPI's primary business is acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements[131](index=131&type=chunk) - As of March 31, 2021, GLPI's portfolio consisted of interests in **48 gaming and related facilities**, **100% occupied**, across **16 states**[131](index=131&type=chunk) - Key lease agreements include the Penn Master Lease, Amended Pinnacle Master Lease, Boyd Master Lease, Belterra Park Lease, Meadows Lease, Amended and Restated Caesars Master Lease, Lumière Place Lease, Morgantown Lease, and Casino Queen Lease[132](index=132&type=chunk)[133](index=133&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk)[140](index=140&type=chunk)[141](index=141&type=chunk) - Tenants under triple-net leases are responsible for all facility maintenance, insurance, property taxes, and utilities[144](index=144&type=chunk) [Recent Developments and Business Outlook](index=33&type=section&id=Recent%20Developments%20and%20Business%20Outlook) The COVID-19 pandemic significantly impacted GLPI's tenants and TRS properties, leading to temporary closures and subsequent strong reopening results, though future performance remains uncertain. GLPI is actively pursuing strategic acquisitions and sale-leaseback opportunities with Bally's, including Tropicana Evansville, Dover Downs, and future properties, expanding its portfolio and lease agreements - COVID-19 caused nationwide casino closures in mid-March 2020, significantly impacting tenants and GLPI's TRS operations. Reopened properties have shown strong performance, but continuation is uncertain[147](index=147&type=chunk)[148](index=148&type=chunk) - GLPI entered agreements to acquire real property assets of Tropicana Evansville and Dover Downs Hotel & Casino from Bally's for **$340.0 million** and **$144.0 million**, respectively, to be added to a new Bally's Master Lease with **$40.0 million** annual rent[148](index=148&type=chunk)[149](index=149&type=chunk) - Subsequent to quarter-end, GLPI agreed to acquire Bally's casino properties in Black Hawk, CO, and Rock Island, IL, for **$150 million**, generating **$12.0 million** in incremental rent, and secured a right of first refusal for future Bally's transactions in several states[151](index=151&type=chunk) - Bally's plans to acquire GLPI's non-land real estate assets and Penn's equity in Tropicana Las Vegas for **$150 million**, with GLPI retaining land and entering a **50-year** ground lease for **$10.5 million** annual rent[151](index=151&type=chunk) [Executive Summary](index=34&type=section&id=Executive%20Summary) GLPI reported increased total revenues and income from operations for Q1 2021, driven by favorable straight-line rent adjustments, higher percentage rent from the Penn Master Lease, and improved performance at TRS properties due to COVID-19 recovery. This was partially offset by lower ground rents and percentage rents on other leases, and a rent deferral with Casino Queen | Metric | Three Months Ended March 31, 2021 (in millions) | Three Months Ended March 31, 2020 (in millions) | | :----------------------- | :---------------------------------- | :---------------------------------- | | Total revenues | $301.5 | $283.5 | | Income from operations | $200.1 | $186.4 | | Net income | $127.2 | $96.9 | - Total income from real estate increased by **$7.1 million**, primarily due to **$9.5 million** in favorable straight-line rent adjustments and **$3.2 million** higher percentage rent on the Penn Master Lease[151](index=151&type=chunk)[152](index=152&type=chunk) - Revenues for TRS Properties increased by **$10.9 million**, driven by strong 2021 results and the impact of COVID-19 closures in Q1 2020[151](index=151&type=chunk) - Other expenses decreased by **$18.8 million** due to the absence of **$17.3 million** in debt extinguishment charges incurred in Q1 2020[151](index=151&type=chunk) [Critical Accounting Estimates](index=35&type=section&id=Critical%20Accounting%20Estimates) GLPI's critical accounting estimates, including those for leases, income taxes, and real estate investments, involve significant judgment and subjectivity. Management believes current assumptions are appropriate, but actual results could materially differ - Key critical accounting estimates include accounting for leases, income taxes, and real estate investments[153](index=153&type=chunk) - No material changes to these estimates occurred for the three months ended March 31, 2021[155](index=155&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) GLPI's Q1 2021 results show a 6.4% increase in total revenues and a 7.4% increase in income from operations year-over-year. This was primarily driven by a $7.1 million increase in real estate income and a $10.9 million increase in TRS segment revenues, coupled with a significant reduction in other expenses due to the absence of prior year debt extinguishment losses | Metric | Three Months Ended March 31, 2021 (in thousands) | Three Months Ended March 31, 2020 (in thousands) | | :----------------------- | :----------------------------------- | :----------------------------------- | | Total revenues | $301,543 | $283,482 | | Total operating expenses | $101,442 | $97,132 | | Income from operations | $200,101 | $186,350 | | Total other expenses | $(70,289) | $(89,137) | | Net income | $127,184 | $96,894 | - Total income from real estate increased by **$7.1 million** (**2.8%**), driven by favorable straight-line rent adjustments and higher percentage rent from the Penn Master Lease, partially offset by lower ground rents and other percentage rents[169](index=169&type=chunk) - Gaming, food, beverage and other revenue for the TRS segment increased by **$10.9 million** (**40.9%**), primarily due to properties being closed in mid-March 2020 due to COVID-19 and strong performance post-reopening[172](index=172&type=chunk) - Other expenses decreased by **$18.8 million** (**21.1%**) due to the absence of **$17.3 million** in losses on debt extinguishment recorded in Q1 2020[178](index=178&type=chunk)[180](index=180&type=chunk) [FFO, AFFO and Adjusted EBITDA](index=36&type=section&id=FFO%2C%20AFFO%20and%20Adjusted%20EBITDA) GLPI uses non-GAAP financial measures like FFO, AFFO, and Adjusted EBITDA to assess operating performance. For Q1 2021, all three metrics increased significantly year-over-year, primarily driven by higher net income, increased real estate income, and the absence of debt extinguishment charges from the prior year - FFO, AFFO, and Adjusted EBITDA are non-GAAP measures used to evaluate operating performance, excluding real estate depreciation and other non-cash items[157](index=157&type=chunk)[159](index=159&type=chunk) | Non-GAAP Metric (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Funds from operations (FFO) | $183,573 | $151,174 | | Adjusted funds from operations (AFFO) | $195,720 | $188,810 | | Adjusted EBITDA | $266,605 | $258,813 | - GLP Capital segment's FFO, AFFO, and Adjusted EBITDA increased due to higher income from real estate and lower interest expense, while the TRS Properties segment's metrics increased significantly due to recovery from COVID-19 closures[163](index=163&type=chunk)[165](index=165&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) GLPI's primary liquidity sources are cash flow from operations, bank borrowings, and debt/equity issuances. Net cash from operating activities increased in Q1 2021, while financing activities shifted to a net cash outflow due to dividend payments, contrasting with Q1 2020's significant debt issuance. Capital expenditures were minimal, primarily for TRS properties - Primary liquidity sources are cash flow from operations, bank borrowings, and proceeds from debt and equity securities[182](index=182&type=chunk) | Cash Flow Activity (in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $205,208 | $198,785 | | Net cash used in investing activities | $(1,044) | $(646) | | Net cash (used in) provided by financing activities | $(161,380) | $334,583 | - The increase in operating cash flow was driven by higher cash receipts from customers and lower cash paid to employees, partially offset by increased interest and operating expense payments[183](index=183&type=chunk) - Capital expenditures for TRS Properties were **$1.0 million** in Q1 2021, mainly for a landside development project at Hollywood Casino Baton Rouge and slot machine equipment[188](index=188&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=44&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) GLPI's primary market risk exposure is interest rate risk, mainly from its $5.8 billion indebtedness. While most debt is fixed-rate, variable-rate exposure exists through its Revolver and Term Loan A-2, which are indexed to LIBOR. The company is monitoring the LIBOR transition to SOFR and may use hedging strategies, though REIT provisions limit such activities - GLPI's primary market risk exposure is interest rate risk, with **$5,799.8 million** in indebtedness at March 31, 2021[206](index=206&type=chunk) - Most debt (**$5,375.0 million**) is fixed-rate, but variable-rate exposure exists through the Revolver and Term Loan A-2, indexed to LIBOR, which is phasing out[204](index=204&type=chunk)[206](index=206&type=chunk) | Debt Type (in thousands) | 2-3 years | 4-5 years | Thereafter | Total | Fair Value (March 31, 2021) | | :----------------------- | :-------- | :-------- | :--------- | :---- | :-------------------------- | | Fixed rate | $500,000 | $1,250,000 | $3,625,000 | $5,375,000 | $5,903,868 | | Variable rate | $424,019 | — | — | $424,019 | $424,019 | [ITEM 4. CONTROLS AND PROCEDURES](index=45&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) GLPI's management, including its principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of March 31, 2021. There were no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of March 31, 2021[209](index=209&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter[210](index=210&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=46&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Information regarding legal proceedings is incorporated by reference from Note 10: Commitments and Contingencies in the condensed consolidated financial statements - Legal proceedings information is incorporated by reference from Note 10 to the condensed consolidated financial statements[212](index=212&type=chunk) [ITEM 1A. RISK FACTORS](index=46&type=section&id=ITEM%201A.%20RISK%20FACTORS) Risk factors affecting GLPI's business and financial results are discussed in the company's Annual Report on Form 10-K. No material changes to these risk factors have occurred since the Annual Report - Risk factors are discussed in Part I, Item 1A of the Annual Report on Form 10-K[213](index=213&type=chunk) - There have been no material changes in risk factors from those previously disclosed in the Annual Report[213](index=213&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=46&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The Company did not repurchase any shares of common stock or sell any unregistered securities during the three months ended March 31, 2021 - No repurchases of common stock or sales of unregistered securities occurred during Q1 2021[214](index=214&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=46&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) There were no defaults upon senior securities during the reporting period - No defaults upon senior securities[215](index=215&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=46&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the Company - Mine safety disclosures are not applicable[216](index=216&type=chunk) [ITEM 5. OTHER INFORMATION](index=46&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No other information is required to be disclosed under this item - No other information is applicable[217](index=217&type=chunk) [ITEM 6. EXHIBITS](index=47&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including subsidiary lists, officer certifications, and financial information formatted in Inline XBRL - Exhibits include a list of subsidiary issuers, officer certifications, and financial information in Inline XBRL format[220](index=220&type=chunk) [SIGNATURE](index=48&type=section&id=SIGNATURE) The report is duly signed on behalf of Gaming and Leisure Properties, Inc. by Peter M. Carlino, Chairman of the Board and Chief Executive Officer (Principal Executive Officer and Principal Financial Officer), on April 30, 2021 - The report was signed by Peter M. Carlino, Chairman of the Board and Chief Executive Officer, on April 30, 2021[224](index=224&type=chunk)

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) Q4 2020 Earnings Conference Call February 19, 2021 9:00 AM ET Company Participants Joe Jaffoni - Investor Relations Peter Carlino - Chairman & Chief Executive Officer Desiree Burke - Senior Vice President, Chief Accounting Officer & Treasurer Matthew Demchyk - Senior Vice President & Chief Investment Officer Brandon Moore - Executive Vice President, General Counsel & Secretary Steve Ladany - Senior Vice President and Chief Development Officer Conference Cal ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Wyomissing, PA 19610 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 610 401-2900 Securities registered pursuant to Sect ...

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) Q3 2020 Earnings Conference Call October 28, 2020 8:30 AM ET Company Participants Peter Carlino - Chairman and CEO Steve Ladany - SVP, Finance Desiree Burke - SVP and CAO Brandon Moore - SVP, General Counsel and Secretary Matthew Demchyk - SVP of Investments Joe Jaffoni - IR Conference Call Participants Dan Politzer - JPMorgan Barry Jonas - Truist Securities Carlo Santarellis - Deutsche Bank Nick Yulico - Scotiabank Spencer Allaway - Green Street Advisors Ja ...

or (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) Pennsylvania 46-2116489 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 845 Berkshire Blvd., Suite 200 Wyomissing, PA 19610 (Address of principal executi ...

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) Q2 2020 Earnings Conference Call July 31, 2020 9:00 AM ET Company Participants Joe Jaffoni – Investor Relations Peter Carlino – Chairman and Chief Executive Officer Steve Snyder – Chief Financial Officer Matthew Demchyk – Senior Vice President-Investments Brandon Moore – Senior Vice President-General Counsel and Secretary Steve Ladany – Senior Vice President-Finance Conference Call Participants Barry Jonas – SunTrust Carlo Santarellis – Deutsche Bank Jared S ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited Q2 and H1 2020 financial statements show increased net income despite revenue decline, driven by lower expenses and the Tropicana Las Vegas acquisition [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $8.67 billion by June 30, 2020, driven by the Tropicana Las Vegas acquisition, while liabilities also rose Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | June 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$8,665,425** | **$8,434,298** | | Real estate investments, net | $7,049,408 | $7,100,555 | | Real estate of Tropicana Las Vegas, net | $306,715 | $— | | Cash and cash equivalents | $74,050 | $26,823 | | **Total Liabilities** | **$6,562,660** | **$6,360,053** | | Long-term debt, net | $5,768,330 | $5,737,962 | | Deferred rental revenue | $515,495 | $328,485 | | **Total Shareholders' Equity** | **$2,102,765** | **$2,074,245** | [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2020 revenues decreased to $262.0 million due to COVID-19, yet net income increased to $112.4 million from lower expenses Condensed Consolidated Statements of Income Highlights (in thousands USD) | Metric | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $261,968 | $289,013 | $545,450 | $576,877 | | Income from Operations | $180,716 | $170,767 | $367,066 | $341,542 | | Net Income | $112,350 | $93,033 | $209,244 | $186,043 | | Diluted EPS | $0.52 | $0.43 | $0.97 | $0.86 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $229.7 million in H1 2020, impacted by non-cash deferred rent and lower TRS revenues Condensed Consolidated Statements of Cash Flows Highlights (in thousands USD) | Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $229,713 | $364,081 | | Net cash used in investing activities | $(1,134) | $(1,357) | | Net cash used in financing activities | $(181,352) | $(363,768) | | **Net increase in cash** | **$47,227** | **$(1,044)** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail REIT operations, Tropicana Las Vegas acquisition, debt refinancing, and the material impact of COVID-19 on property closures - The company's portfolio consisted of **45 gaming and related facilities** across **16 states** as of June 30, 2020, with major tenants including Penn National, Caesars, and Boyd Gaming[33](index=33&type=chunk) - On April 16, 2020, the company acquired the real property of Tropicana Las Vegas from Penn National in exchange for **$307.5 million** of rent credits[32](index=32&type=chunk)[47](index=47&type=chunk) - In Q1 2020, the company redeemed **$215.2 million** of its 4.875% notes due 2020 and **$400 million** of its 4.375% notes due 2021, incurring a **$17.3 million** loss on debt extinguishment[79](index=79&type=chunk)[183](index=183&type=chunk) - The Q2 2020 dividend of **$0.60 per share** was paid with **$25.8 million** in cash and **$103.2 million** in common stock[119](index=119&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=36&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A covers COVID-19's impact, revenue decline, increased net income from expense cuts, liquidity enhancements, and strategic acquisitions [Recent Developments and Business Outlook](index=38&type=section&id=Recent%20Developments%20and%20Business%20Outlook) COVID-19 closures impacted business, but most properties reopened; company bolstered liquidity and expects CARES Act tax benefits - All of the company's tenants' casino operations and its two TRS Properties were closed in mid-March 2020 due to COVID-19. As of July 30, 2020, **43 out of 45 total properties** have reopened at limited capacity[34](index=34&type=chunk)[143](index=143&type=chunk) - The company enhanced liquidity on June 25, 2020, by extending the maturity of its Term Loan A-1, raising **$200 million** in additional term loans, and issuing **$500 million** of 4.00% senior unsecured notes due 2031. Proceeds were used to repay all outstanding amounts under its revolving credit facility[75](index=75&type=chunk)[144](index=144&type=chunk) - The CARES Act allows for NOL carrybacks and increases the business interest expense deduction limit from **30% to 50%** of adjusted taxable income for 2019 and 2020, which is expected to benefit the TRS Properties[144](index=144&type=chunk) [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q2 2020 revenues decreased 9.4% to $262.0 million due to COVID-19, but income from operations and net income increased from expense cuts Results of Operations Summary (in thousands USD) | Metric | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $261,968 | $289,013 | $545,450 | $576,877 | | Total Operating Expenses | $81,252 | $118,246 | $178,384 | $235,335 | | Income from Operations | $180,716 | $170,767 | $367,066 | $341,542 | | Net Income | $112,350 | $93,033 | $209,244 | $186,043 | - TRS Properties revenue decreased by **$23.3 million** in Q2 2020 and **$29.5 million** in H1 2020 compared to the prior year, due to property closures from COVID-19[152](index=152&type=chunk) - Total operating expenses decreased by **$37.0 million** in Q2 2020, primarily due to lower TRS operating expenses (**$15.1 million**) and lower depreciation and land right amortization expense in the REIT segment (**$20.5 million**)[152](index=152&type=chunk) [Non-GAAP Financial Measures (FFO, AFFO, and Adjusted EBITDA)](index=42&type=section&id=Non-GAAP%20Financial%20Measures) Q2 2020 FFO increased to $166.9 million, while AFFO and Adjusted EBITDA slightly decreased due to lower revenues from property closures Non-GAAP Financial Measures Reconciliation (in thousands USD) | Metric | Q2 2020 | Q2 2019 | YTD 2020 | YTD 2019 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $112,350 | $93,033 | $209,244 | $186,043 | | Funds from operations (FFO) | $166,893 | $158,607 | $318,067 | $307,299 | | Adjusted funds from operations (AFFO) | $180,597 | $185,018 | $369,407 | $368,033 | | Adjusted EBITDA | $246,860 | $260,870 | $505,673 | $519,289 | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operations decreased to $229.7 million in H1 2020; company enhanced liquidity through debt refinancing and maintained covenant compliance - Net cash provided by operating activities decreased by **$134.4 million** for the six months ended June 30, 2020, primarily due to the recognition of **$130.8 million** in non-cash deferred rent and the impact of COVID-19 on TRS properties[187](index=187&type=chunk) - On June 25, 2020, the company amended its credit facility, extending the maturity of **~$224 million** in term loans to 2023, borrowing an additional **$200 million**, and issuing **$500 million** in new senior notes due 2031. Proceeds were used to fully repay the revolver[193](index=193&type=chunk) - As of June 30, 2020, the company had **$1,174.6 million** (or **$1.17 billion**) of available borrowing capacity under its revolver and was in compliance with all debt covenants[194](index=194&type=chunk)[196](index=196&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Primary market risk is interest rate exposure on $5.82 billion total debt, with $5.18 billion fixed-rate and $649 million variable-rate tied to LIBOR - As of June 30, 2020, total debt was **$5.82 billion**, of which **$5.18 billion** was fixed-rate and **$649 million** was variable-rate[207](index=207&type=chunk)[209](index=209&type=chunk) - The company's variable-rate debt is indexed to LIBOR, which is expected to be phased out in late 2021. The transition to a new standard rate like SOFR is being monitored[205](index=205&type=chunk) [Controls and Procedures](index=56&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Disclosure controls and procedures were effective as of June 30, 2020, with new controls implemented for credit loss accounting standard (ASU 2016-13) - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2020[211](index=211&type=chunk) - Changes in internal control were made to properly assess the impact of the new credit loss accounting standard (**ASU 2016-13**) which became effective January 1, 2020[212](index=212&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=57&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company faces various legal proceedings in the normal course of business, not expected to materially impact financial position or results - The company is involved in various legal proceedings from the normal course of business but does not expect them to have a material adverse effect[94](index=94&type=chunk)[214](index=214&type=chunk) [Risk Factors](index=57&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to risk factors except for the significant and ongoing impact of COVID-19 on tenant operations and rent obligations - The primary update to risk factors is the significant and ongoing impact of the COVID-19 pandemic on tenants' financial conditions and operations[215](index=215&type=chunk)[216](index=216&type=chunk) - Temporary casino closures and subsequent reopening with capacity constraints may lead to tenant difficulties in funding rent obligations, potentially resulting in requests for rent deferrals or non-cash payments[217](index=217&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) No common stock repurchases or unregistered equity securities sales occurred during the second quarter of 2020 - No common stock was repurchased and no unregistered securities were sold during the second quarter of 2020[218](index=218&type=chunk) [Defaults Upon Senior Securities](index=57&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) No defaults upon senior securities were reported during the period - There were no defaults upon senior securities during the reporting period[219](index=219&type=chunk) [Exhibits](index=58&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with Form 10-Q, including debt indentures, credit agreement amendments, and required certifications

G A M I N G & L E I S U R E PROPERTIES, inc Investor Presentation June 2020 Forward Looking Statements Company Overview Certain statements contained in this presentation may constitute "forward-looking statements" within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as ame ...

Financial Data and Key Metrics Changes - The company reported nearly 99% of overall cash rent received in April, with full payments from major tenants including Penn National, Eldorado, and Boyd [15][32] - The company drew down its revolving credit facility, resulting in a quarter-end cash position of nearly $560 million, which was enhanced by cash rents received in April [32][35] - The average monthly interest expense is approximately $23.5 million, with total monthly cash burn averaging just over $26 million [35] Business Line Data and Key Metrics Changes - The company has negotiated favorable terms with its largest tenant, Penn National, including a new ground lease and lease modifications to ensure rent payments through the end of the year [11][13] - The company is in constructive dialogue with Casino Queen regarding rent payments, which were not received for April [36] Market Data and Key Metrics Changes - The company anticipates that states will feel pressure to reopen gaming facilities quickly due to the significant tax revenue generated by these properties [21][40] - The company believes that the regional markets and its tenants will lead the recovery of assets once they reopen [40] Company Strategy and Development Direction - The company is focused on maintaining liquidity and flexibility by changing the composition of its second-quarter dividend to 80% stock and 20% cash [18][38] - The company sees potential for favorable asset purchases as the market begins to normalize [24] - The management emphasizes the importance of their properties to state economies and plans to navigate through the crisis to emerge stronger [23][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unprecedented impact of COVID-19 on operations and emphasizes the need for a cautious approach moving forward [26][31] - The management is optimistic about the eventual return of customers to gaming facilities, despite uncertainties regarding the speed of recovery [53][106] - The company is committed to maintaining employee benefits and preparing for a safe reopening of facilities [16][34] Other Important Information - The company has made the difficult decision to furlough nearly 550 employees while maintaining their benefits through the end of May [33] - The company has received approval from its directors to amend its dividend policy in light of current economic conditions [38][66] Q&A Session Summary Question: How does the company view the ramp-up of operations post-COVID? - Management acknowledges the uncertainty in the ramp-up process and emphasizes ongoing dialogue with tenants to explore options for support [49][51] Question: What is the company's approach to dividends in light of potential rent relief? - Management indicates a conservative approach to dividends, focusing on sustainability and the potential for future adjustments based on operational recovery [62][66] Question: How does the company view the impact of state legislation on the gaming industry? - Management expresses uncertainty about future state legislation but anticipates that online and sports wagering will be accelerated post-COVID [73][74] Question: What is the company's strategy regarding potential acquisitions in the gaming sector? - Management remains open to opportunities but emphasizes the need for high-quality assets that match their existing portfolio [85][86] Question: How does the company plan to utilize its liquidity? - Management discusses the potential for using liquidity for value-enhancing transactions or returning capital to shareholders, depending on market conditions [114][116]