Gaming & Leisure Properties(US:GLPI)2020-02-21 21:44Financial Data and Key Metrics Changes - The company modestly exceeded its revenue and adjusted EBITDA guidance for the quarter, with AFFO exceeding guidance by nearly 1% [18] - For the full year, the company also modestly exceeded the high-end of its AFFO guidance, despite facing headwinds from not realizing the full escalator from the amended Pinnacle master lease [19] - The company closed the quarter with gross leverage of 5.5x trailing 12 months EBITDA and net leverage of 5.49x [30] Business Line Data and Key Metrics Changes - The company celebrated the anniversary of lease relationships with both Boyd and Eldorado resorts, which have been mutually beneficial [20] - The company received approval to move the Belterra Park facility into its owned real estate category, highlighting cooperation with Boyd [21] - The TRS (Taxable REIT Subsidiary) outperformed during the quarter, exceeding guidance by nearly $800,000 [29] Market Data and Key Metrics Changes - The company noted significant year-over-year improvements in revenue reports from the Illinois Gaming Commission, indicating a positive trend in the market [28] - The company continues to monitor the performance of Casino Queen, which has been below its default coverage ratio, but is showing signs of improvement [27] Company Strategy and Development Direction - The company aims to generate safe, attractive, and accretive transactions while maintaining a disciplined approach to acquisitions [11][12] - The management emphasized the importance of outreach to shareholders and the need to communicate the value of regional gaming properties [10][11] - The company remains focused on maintaining its investment-grade rating while improving its debt profile [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of regional gaming revenues compared to Las Vegas strip revenues, suggesting a more resilient business model [10] - The management team is optimistic about the future, with plans to continue refining outreach and enhancing shareholder value [11][14] - Management acknowledged the potential impact of sports betting and online gambling on the business, noting positive effects on physical facilities where sports betting is legalized [67] Other Important Information - The company declared a first-quarter 2020 dividend of $0.70 per share, payable on March 20 [17] - The company is actively looking for opportunities to improve its capital structure and reduce interest expenses through early redemption of notes [31][32] Q&A Session Summary Question: How would the company think about funding a sizeable acquisition? - The company has leverage guidelines and is comfortable with leverage levels between 5 to 5.5, potentially stretching to 6 for the right transaction [37] Question: Have there been discussions regarding a potential merger with Landon buildings? - Management sees no particular advantage to a transaction with VG and believes their performance speaks for itself [39][40] Question: Can the company discuss its acquisition pipeline? - The company maintains strong relationships with leading regional gaming operators and is open to exploring opportunities as they arise [47] Question: Are recent high multiples in transactions raising seller expectations? - Management does not see a significant impact from recent high-profile transactions on their own acquisition strategy [74][75] Question: Is the company considering international opportunities? - The company is open to exploring international opportunities as long as they can accretively deploy capital [92]