Gaming & Leisure Properties(GLPI) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 reached $389.6 million, a 5.6% increase from $369.0 million in Q4 2023[2] - Net income for the year ended December 31, 2024, was $807.6 million, up from $755.4 million in 2023, reflecting a year-over-year growth of 6.9%[2] - Adjusted Funds from Operations (AFFO) for Q4 2024 was $269.7 million, a 5.1% increase compared to $256.6 million in Q4 2023[2] - Total rental income for Q4 2024 was $333,979,000, a 1% increase from $327,948,000 in Q4 2023[18] - Total income from real estate for the year ended December 31, 2024, was $1,531,546,000, up from $1,440,392,000 in 2023, representing a 6.3% increase[18] - Net income for Q4 2024 was $223,610,000, compared to $217,256,000 in Q4 2023, reflecting a 2% increase[18] - Basic earnings per share for the year ended December 31, 2024, were $2.87, up from $2.78 in 2023, indicating a 3.2% growth[18] - Funds from operations (FFO) for the year ended December 31, 2024, reached $1.06 billion, up from $1.02 billion in 2023, reflecting a 4.6% increase[24] - Adjusted EBITDA for the year ended December 31, 2024, was $1.37 billion, compared to $1.31 billion in 2023, indicating a growth of 5.1%[26] - Cash net operating income for the year ended December 31, 2024, was $1.41 billion, compared to $1.36 billion in 2023, reflecting a 3.7% increase[26] - The company reported a diluted net income per share of $2.87 for the year ended December 31, 2024, compared to $2.77 in 2023, a 3.6% increase[24] Acquisitions and Investments - The company completed the acquisition of Bally's Kansas City and Bally's Shreveport for $395 million, with an initial cash rent of $32.2 million[7] - The company completed a $250 million acquisition of land for Bally's permanent Chicago Casino, with an initial cash yield of 8.0%[7] - The company has executed over $12 billion in gaming real estate transactions, adding over $900 million in annual rent or financing revenue[4] Debt and Financial Position - The company increased its revolver capacity to $2.09 billion from $1.75 billion and extended the maturity to December 2028[4] - Total assets as of December 31, 2024, amounted to $13.08 billion, an increase from $11.81 billion in 2023, representing a 10.7% growth[29] - The company's total long-term debt as of December 31, 2024, was $7.74 billion, up from $6.63 billion in 2023, marking a 16.7% increase[30] - The weighted average interest rate on the company's debt was 5.09% as of December 31, 2024[30] - The total equity attributable to Gaming and Leisure Properties as of December 31, 2024, was $4.27 billion, up from $4.16 billion in 2023, indicating a 2.7% increase[29] Dividends and Shareholder Returns - The company declared a first quarter dividend of $0.76 per share, payable on March 28, 2025[10] Market Position and Growth Outlook - The company is well-positioned for growth in 2025, supported by strong tenant relationships and a healthy pipeline of new agreements[5] - The company anticipates benefiting from 2024 portfolio additions and recently completed transactions, with a focus on future growth and cash flows in 2025 and beyond[48] Lease Agreements and Tenant Information - The company has a total of 14 properties under the amended PENN Master Lease, with a commencement date of November 1, 2013[33] - The PENN 2023 Master Lease includes 7 properties, with a lease expiration date of October 31, 2033[36] - The average rent coverage ratio for the tenants as of September 30, 2024, is 1.91 for PENN, 2.16 for Caesars, and 1.79 for Boyd[36] - The company has a yearly base rent escalator of 1.5% for the PENN Master Lease, with a one-time annualized increase of $1.4 million occurring on November 1, 2027[36] - The remaining renewal terms for the Caesars Master Lease properties total 15 years, with a corporate guarantee in place[36] - The Bally's Master Lease II includes 2 properties with a lease expiration date of December 15, 2039[38] - The company operates properties across 6 states under the Bally's Master Lease, with a commencement date of June 3, 2021[38] - The Strategic Gaming Leases consist of 3 properties, with a commencement date of May 16, 2024[34] - The company has a competitive radius landlord protection in place for all master leases[36] - The next rent reset for the Pennsylvania Live! Master Lease is scheduled for June 2026[38] - The company reported a coverage ratio of 3.35 for Horseshoe St. and 2.05 for Morgantown as of September 30, 2024[40] - The annual base rent escalator maximum for Belterra Park is set at 1.25% for the first three lease years, increasing to 1.75% for the 6th and 7th years, and then 2% for the remaining term[41] Risks and Challenges - The company faces risks related to inflation, interest rates, and the ability of tenants to maintain financial strength, which could impact future performance[48] - The company has not independently verified the accuracy of tenants' rent coverage information, which is provided by tenants as of September 30, 2024[41] Upcoming Events - GLPI plans to hold a conference call on February 21, 2025, to discuss financial results and market conditions[14]