Gaming and Leisure Properties has lauded its ability to consistently build value for shareholders, as the real-estate investment trust states that it has collected 99 per cent of contractual rents during the year thus far.
The comments come as the group publishes its latest financial report, as GLPI asserts that as of October 27, 2020, 45 out of its 46 properties have reopened with safety protocols and capacity constraints.
During the quarter the firm has praised the addition of several portfolio enhancements, with approval also received from the Louisiana Gaming and Control Board to move the gaming operations of Hollywood Casino Baton Rouge to a landside facility.
The project, expected to cost between $21m and $25m, will add 38,000 square feet and include a 250-seat entertainment venue and sportsbook. The expansion and land-based facility is anticipated to be completed in early 2022.
“Our record third quarter financial results highlight our ability to dynamically manage our leading, diversified portfolio of regional gaming assets and support our tenants throughout the pandemic to ensure the ongoing predictability of our rental cash flows,” explained Peter Carlino, chairman and CEO of GLPI.
“Year-to-date, we have collected over 99 per cent of our contractual rents as our tenants have generated impressive financial results since reopening and, in many cases, are generating higher cash flows from their properties leased from GLPI, thus increasing the longer-term visibility of our rental receipts.
“In addition, third quarter results benefited from the variable rent component of certain of our leases as well as strong post-reopening results at Hollywood Casino Baton Rouge and Hollywood Casino Perryville, the gaming properties we own and operate in our taxable REIT subsidiary.”
During the third quarter, GLPI reports a 6.9 per cent revenue increase to $307.6m (2019: $287.6m), net income rose 40.4 per cent from $90.5m to $127.1m, and adjusted EBITDA rose a slight 1.8 per cent to $265.2m (2019: $260.5m).
“GLPI’s assets are managed by the industry’s top operators and they have taken prudent steps to fortify their liquidity positions through public market capital raises,” Carlino added.
“At the same time, we also proactively enhanced our financial flexibility and liquidity thereby fortifying the sector’s only investment-grade balance sheet. During the third quarter, we issued an additional $200m of 4.000 per cent senior unsecured notes maturing in 2031 at an effective yield of 3.548 per cent and applied the net proceeds to repay our Term Loan A-1 borrowings.
“As a result we have no debt maturities before May 2023. Today we announced a transaction with Twin River thereby adding another well-operated, publicly traded tenant relationship to our growing portfolio.
“In summary, we are confident that the consistent value and cash flows generated by our portfolio as well as our active management of all aspects of our operations and capital structure position us to consistently build value for shareholders.”