Gaming & Leisure Properties(US:GLPI)2023-02-23 21:23Debt and Indebtedness - GLPI's total indebtedness was $6,175.6 million as of December 31, 2022, with $6,175.0 million in senior unsecured notes having fixed interest rates[406]. - The average interest rate for fixed-rate debt is 4.36%, with specific maturities ranging from 1.5% to 5.38%[408]. - GLPI's long-term debt decreased to $6,128.5 million in 2022 from $6,552.4 million in 2021[427]. - GLPI's ability to refinance its debt may be limited by rising interest rates, which could increase financing costs for acquisitions[406]. - The Company entered into a $600 million Term Loan Credit Facility on September 2, 2022, with a maturity date of September 2, 2027, to finance the acquisition of specified properties[548]. - At December 31, 2022, the Company had an outstanding balance of $6,175.0 million of senior unsecured notes[562]. - The Company recorded a debt extinguishment loss of $2.2 million in connection with the termination of its Amended Credit Facility[555]. - At December 31, 2022, the Company had $1,749.6 million of available borrowing capacity under the Credit Agreement[559]. Financial Performance - Total revenues for the year ended December 31, 2022, were $1,311,685,000, an increase of 7.8% from $1,216,351,000 in 2021[431]. - Net income for 2022 was $703,285,000, representing a 31.7% increase compared to $534,086,000 in 2021[431]. - Basic earnings per common share increased to $2.71 in 2022 from $2.27 in 2021, reflecting a growth of 19.4%[431]. - Total operating expenses decreased to $281,770,000 in 2022 from $374,583,000 in 2021, a reduction of 24.8%[431]. - Net cash provided by operating activities for 2022 was $920,126,000, up from $803,778,000 in 2021, indicating a growth of 14.5%[437]. - The company paid dividends totaling $770,858,000 in 2022, compared to $633,901,000 in 2021, marking an increase of 21.6%[437]. - The company incurred interest expenses of $309,291,000 in 2022, an increase from $283,037,000 in 2021, reflecting a rise of 9.3%[431]. Assets and Investments - Total assets increased to $10,930.4 million in 2022 from $10,690.4 million in 2021, primarily driven by real estate investments and financing receivables[427]. - The investment in leases, financing receivables, net rose to $1,903.2 million in 2022, up from $1,201.7 million in 2021[427]. - The Company's total real estate investments as of December 31, 2022, amounted to $9,626.0 million, an increase from $9,458.9 million in 2021[507]. - The Company reported a total of 260,727,030 common shares outstanding as of December 31, 2022, an increase from 247,206,937 shares in 2021[434]. - The fair value of the Company's investment in leases, financing receivables, net, was approximately $1.901 billion as of December 31, 2022, compared to $1.214 billion in 2021[544]. Real Estate Operations - As of December 31, 2022, GLPI's portfolio consisted of interests in 57 gaming and related facilities, with properties 100% occupied and totaling approximately 27.8 million square feet[442]. - The Company acquired real estate assets from Tropicana for an aggregate cash purchase price of $964.0 million, which included properties such as Tropicana Atlantic City and Tropicana Evansville[447]. - The Company completed the acquisition of Bally's three Black Hawk Casinos and Quad Cities Casino & Hotel for $150 million, increasing the initial rent by $12.0 million annually[455]. - The Company completed the acquisition of Bally's Hard Rock Hotel & Casino and Bally's Tiverton Casino & Hotel for a total consideration of $635.0 million, increasing the initial annual rent by $48.5 million[456]. - The Company agreed to acquire real property assets of Live! Casino & Hotel Maryland and Live! Casino & Hotel Philadelphia for approximately $1.81 billion, with annual rents of $75.0 million and $50.0 million respectively[465]. - The Company monitors real estate investments for impairment, considering factors such as tenant payment status and financial stability[470]. Lease Agreements - The PENN Master Lease, a triple-net operating lease, has a term expiring on October 31, 2033, with no purchase option and three remaining 5-year renewal options[444]. - The Amended and Restated Caesars Master Lease was modified to extend the initial term to 20 years, with fixed escalations and an increase in annual land base rent to approximately $23.6 million[450]. - The Horseshoe St. Louis Lease has an initial term expiring on October 31, 2033, with rent terms adjusted to include fixed annual escalators[452]. - The Bally's Master Lease was established with an initial term of 15 years, following the reacquisition of real property assets for approximately $340.0 million[453]. - The Maryland Live! Lease and Pennsylvania Live! Master Lease have initial terms of 39 years, with a 1.75% fixed yearly escalator starting on the second anniversary[465]. - The initial rent under the Casino Queen Master Lease is $21.4 million, increasing by 0.5% annually for the first six years, with adjustments based on CPI thereafter[585]. - The total lease cost for the year ended December 31, 2022, was $49.093 million, an increase of approximately 27.2% from $38.597 million in 2021[536]. Credit Losses and Allowances - The Company follows ASC 326 to measure and record current expected credit losses (CECL) for investments in leases and real estate loans, with no allowances recorded against real estate loans for expected losses[489]. - The CECL allowance is updated quarterly and recorded as a reduction to net investments in leases, impacting the Consolidated Statement of Income[492]. - The allowance for credit losses for the Company's financing receivables was $19.1 million as of December 31, 2022, with a significant portion attributed to the Pennsylvania Live! Master Lease[525]. - The Company recorded an initial allowance for credit losses of $32.3 million on the Pennsylvania Live! Master Lease, which was originated on March 1, 2022[526]. Tax and Compliance - The Company has no uncertain tax positions for the three years ended December 31, 2022, and recognized no penalties and interest related to income taxes during this period[499][500]. - The Company must distribute at least 90% of its annual REIT taxable income to qualify as a REIT, avoiding federal, state, and local income tax on distributed income[501]. - At December 31, 2022, the Company was in compliance with all required financial covenants under its Senior Notes[569]. - The Amended Credit Facility includes financial covenants measured quarterly on a trailing four-quarter basis, including maximum total debt to total asset value ratio[561].