Gaming & Leisure Properties(GLPI) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 increased by 5.1% year-over-year to $395.2 million, compared to$376.0 million in Q1 2024[2] - Adjusted Funds From Operations (AFFO) grew by 5.2% to $272.0 million, up from$258.6 million in the same period last year[2] - Adjusted EBITDA rose by 8% to $360.1 million, compared to$333.4 million in Q1 2024[2] - The company reported net income of $170.4 million for Q1 2025, down from$179.5 million in Q1 2024[2] - Net income for the three months ended March 31, 2025, was $170,354,000, a decrease of 5.0$179,526,000 in the same period of 2024[21] - Funds from operations (FFO) for Q1 2025 were $234,758,000, down 3.0$244,403,000 in Q1 2024[21] - Adjusted funds from operations (AFFO) increased to $271,996,000 in Q1 2025, compared to$258,615,000 in Q1 2024, reflecting a growth of 5.2%[21] - Adjusted EBITDA for the three months ended March 31, 2025, was $360,118,000, up 8.0$333,426,000 in the prior year[22] - The company reported cash net operating income of $369,973,000 for Q1 2025, indicating strong cash flow generation[22] Debt and Financing - GLPI has committed to a$110 million delayed draw term loan facility for the Ione Band of Miwok Indians' Acorn Ridge Casino development, with an 11% interest rate[5] - The company successfully redeemed its $850 million 5.250$6,957,679,000, with a weighted average interest rate of 5.064%[25] - The company has a diversified debt structure with various maturities, including $332,455,000 due in December 2028 and$975,000,000 due in April 2026[25] Portfolio and Assets - As of March 31, 2025, GLPI's portfolio consisted of interests in 68 gaming and related facilities across 20 states[13] - Total assets decreased to $12,132,521,000 as of March 31, 2025, from$13,075,949,000 at the end of 2024, a decline of 7.2%[24] Lease Agreements - The company extended the Master Lease and the Belterra Park Lease with Boyd Gaming for an additional five years, now expiring on April 30, 2031[10] - The Penn Master Lease has a commencement date of January 1, 2023, and an expiration date of October 31, 2033, with a coverage ratio of 1.1[29] - The yearly base rent escalator for the Penn Master Lease is capped at 1.5%, with a one-time annualized increase of $1.4 million occurring on November 1, 2027[29] - The Amended Pinnacle Master Lease has a coverage ratio of 1.2 and a maximum yearly base rent escalator of 2%[30] - The Bally's Master Lease II has a coverage ratio of 1.35, with a lease expiration date of December 15, 2039[31] - The Boyd Master Lease has a coverage ratio of 1.4, with a maximum yearly base rent escalator of 2%[32] - The Pennsylvania Live! Master Lease has a coverage ratio of 1.4 and a maximum yearly base rent escalator of 1.75%[33] - The Belterra Park lease has a coverage ratio of 1.4, with a maximum yearly base rent escalator of 2%[34] - The coverage ratio for the Ameristar Kansas City property under the Boyd Master Lease is projected to be 2.51 by December 31, 2024[32] - The next rent reset for the Amended Pinnacle Master Lease is scheduled for May 2026[30] - The coverage ratio for the Bally's Master Lease II is projected to be 2.34 by December 31, 2024[31] - The company has multiple property leases with varying commencement and expiration dates, including leases for Tioga Downs (commencing 9/26/2022, expiring 9/25/2072) and Tropicana Lease (commencing 2/6/2024, expiring 2/28/2054)[35] Operational Strategy - The company focuses on acquiring and financing real estate properties to be leased to gaming operators under triple-net lease arrangements, ensuring stable cash flows[27] - The company anticipates benefiting from portfolio additions and completed transactions in 2024, with forward-looking statements regarding growth and cash flows in 2025 and beyond[40] - The company emphasizes the importance of maintaining its REIT status, which is subject to complex IRS provisions and ongoing compliance requirements[40] - The company has established a competitive lease structure with protections such as technical default landlord protection and coverage ratios of 1.4 for various leases[35] - The company is currently amending the Tropicana Lease to have an initial term of 15 years with multiple renewal extensions[35] Risk Factors - The company faces risks related to construction projects, economic conditions, tenant financial stability, and regulatory approvals that could impact future performance[40] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as FFO, AFFO, Adjusted EBITDA, and Cash NOI to benchmark performance against peers and assess internal business operations[36] - FFO is defined as net income excluding gains or losses from property dispositions and real estate depreciation, while AFFO further excludes stock-based compensation and other specific expenses[37] - The company’s Cash NOI reflects rental income minus property-level expenses, excluding depreciation and other non-routine costs, providing a clearer view of operational performance[36]