Gaming & Leisure Properties(US:GLPI)2020-05-01 19:31Financial 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]