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Pennsylvania
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46-2116489
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
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Smaller reporting company
¨
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(Do not check if a smaller reporting company)
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Title
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November 4, 2016
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Common Stock, par value $.01 per share
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207,126,523
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•
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the ability to receive, or delays in obtaining, the regulatory approvals required to own and/or operate our properties, or other delays or impediments to completing our planned acquisitions or projects;
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•
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our ability to maintain our status as a real estate investment trust ("REIT"), given the highly technical and complex Internal Revenue Code (the "Code") provisions for which only limited judicial and administrative authorities exist, where even a technical or inadvertent violation could jeopardize REIT qualification and where requirements may depend in part on the actions of third parties over which the Company has no control or only limited influence;
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•
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the satisfaction of certain asset, income, organizational, distribution, shareholder ownership and other requirements on a continuing basis in order for the Company to maintain its elected REIT status;
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•
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the ability and willingness of our tenants, operators and other third parties to meet and/or perform their obligations under their respective contractual arrangements with us, including, in some cases, their obligations to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities;
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•
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the ability of our tenants and operators to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to third parties, including without limitation to satisfy obligations under their existing credit facilities and other indebtedness;
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•
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the ability of our tenants and operators to comply with laws, rules and regulations in the operation of our properties, to deliver high quality services, to attract and retain qualified personnel and to attract customers;
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•
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the availability of and the ability to identify suitable and attractive acquisition and development opportunities and the ability to acquire and lease the respective properties on favorable terms;
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•
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the degree and nature of our competition;
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•
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the ability to generate sufficient cash flows to service our outstanding indebtedness;
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•
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the access to debt and equity capital markets;
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•
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adverse changes in our credit rating;
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•
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fluctuating interest rates;
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•
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the impact of global or regional economic conditions;
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•
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the availability of qualified personnel and our ability to retain our key management personnel;
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•
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GLPI's duty to indemnify Penn National Gaming, Inc. and its subsidiaries ("Penn") in certain circumstances if the spin-off transaction described in Note 1 to the condensed consolidated financial statements fails to be tax-free;
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•
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changes in the United States tax law and other state, federal or local laws, whether or not specific to real estate, real estate investment trusts or to the gaming, lodging or hospitality industries;
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•
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changes in accounting standards;
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•
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the impact of weather events or conditions, natural disasters, acts of terrorism and other international hostilities, war or political instability;
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•
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other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and
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•
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additional factors as discussed in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2015
, in this Quarterly Report on Form 10-Q and Current Reports on Form 8-K as filed with the United States Securities and Exchange Commission (the "SEC").
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September 30,
2016 |
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December 31, 2015
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||||
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(unaudited)
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||||
Assets
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||||
Real estate investments, net
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$
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3,768,774
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$
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2,090,059
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Land rights, net
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593,069
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—
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Property and equipment, used in operations, net
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121,382
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129,747
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Investment in direct financing lease, net
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2,728,716
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—
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Cash and cash equivalents
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25,359
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41,875
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Prepaid expenses
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9,511
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7,908
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Other current assets
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57,983
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57,721
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Goodwill
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75,521
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75,521
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Other intangible assets
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9,577
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9,577
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Debt issuance costs, net of accumulated amortization of $9,500 and $5,937 at September 30, 2016 and December 31, 2015, respectively
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—
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3,563
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Loan receivable
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26,738
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29,350
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Deferred tax assets, non-current
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3,384
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2,447
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Other assets
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1,306
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387
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Total assets
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$
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7,421,320
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$
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2,448,155
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Liabilities
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Accounts payable
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$
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588
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$
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406
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Accrued expenses
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7,290
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9,580
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Accrued interest
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73,367
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17,623
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Accrued salaries and wages
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8,221
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13,719
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Gaming, property, and other taxes
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46,116
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24,702
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Current maturities of long-term debt
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106
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102
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Other current liabilities
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24,323
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17,687
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Long-term debt, net of current maturities and unamortized debt issuance costs
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4,661,577
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2,510,239
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Deferred rental revenue
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149,807
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107,379
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Deferred tax liabilities, non-current
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265
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232
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Total liabilities
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4,971,660
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2,701,669
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Shareholders’ equity (deficit)
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||||
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Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at September 30, 2016 and December 31, 2015)
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—
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—
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Common stock ($.01 par value, 500,000,000 shares authorized, 207,115,019 and 115,594,321 shares issued at September 30, 2016 and December 31, 2015, respectively)
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2,071
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1,156
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Additional paid-in capital
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3,745,505
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935,220
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Retained accumulated deficit
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(1,297,916
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)
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(1,189,890
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)
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Total shareholders’ equity (deficit)
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2,449,660
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(253,514
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)
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Total liabilities and shareholders’ equity (deficit)
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$
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7,421,320
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$
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2,448,155
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Three Months Ended September 30,
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Nine Months Ended September 30,
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||||||||||||
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2016
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2015
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2016
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2015
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Revenues
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Rental income
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$
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160,664
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$
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97,754
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$
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402,980
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$
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293,597
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Income from direct financing lease
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18,155
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—
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30,786
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—
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Real estate taxes paid by tenants
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20,438
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13,778
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47,938
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40,071
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Total rental revenue and income from direct financing lease
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199,257
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111,532
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481,704
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333,668
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Gaming
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32,770
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34,915
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103,692
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108,425
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Food, beverage and other
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2,613
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2,794
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8,221
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8,464
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Total revenues
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234,640
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149,241
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593,617
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450,557
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Less promotional allowances
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(1,365
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)
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(1,449
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)
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(4,161
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)
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(4,193
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)
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||||
Net revenues
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233,275
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147,792
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589,456
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446,364
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Operating expenses
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Gaming
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18,080
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19,357
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56,119
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58,644
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Food, beverage and other
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2,037
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2,128
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6,174
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6,489
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||||
Real estate taxes
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20,866
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14,174
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49,148
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41,138
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||||
General and administrative
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21,821
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19,285
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64,988
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64,546
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Depreciation
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27,165
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27,557
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81,267
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82,585
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Total operating expenses
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89,969
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82,501
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257,696
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253,402
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Income from operations
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143,306
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65,291
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331,760
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192,962
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Other income (expenses)
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Interest expense
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(52,880
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)
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(31,226
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)
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(132,217
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)
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(90,373
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)
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Interest income
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481
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|
|
581
|
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1,652
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1,761
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Total other expenses
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(52,399
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)
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(30,645
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)
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(130,565
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)
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(88,612
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)
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||||
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Income before income taxes
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90,907
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34,646
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201,195
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|
104,350
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|
||||
Income tax expense
|
1,307
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|
|
1,417
|
|
|
5,582
|
|
|
6,001
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|
||||
Net income
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$
|
89,600
|
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$
|
33,229
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|
$
|
195,613
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$
|
98,349
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||||||||
Earnings per common share:
|
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Basic earnings per common share
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$
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0.43
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$
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0.29
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$
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1.15
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$
|
0.86
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Diluted earnings per common share
|
$
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0.43
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$
|
0.28
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$
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1.14
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$
|
0.83
|
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|
||||||||
Dividends paid per common share
|
$
|
0.60
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$
|
0.55
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|
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$
|
1.72
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|
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$
|
1.64
|
|
|
Common Stock
|
|
Additional
Paid-In
Capital
|
|
Retained Accumulated
Deficit
|
|
Total
Shareholders’
(Deficit) Equity
|
|||||||||||
|
Shares
|
|
Amount
|
|
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|
||||||||||||
Balance, December 31, 2015
|
115,594,321
|
|
|
$
|
1,156
|
|
|
$
|
935,220
|
|
|
$
|
(1,189,890
|
)
|
|
$
|
(253,514
|
)
|
Issuance of common stock
|
86,074,167
|
|
|
861
|
|
|
2,694,060
|
|
|
—
|
|
|
2,694,921
|
|
||||
Stock option activity
|
5,308,579
|
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|
53
|
|
|
104,535
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|
|
—
|
|
|
104,588
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|
||||
Restricted stock activity
|
137,952
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|
1
|
|
|
11,690
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|
|
—
|
|
|
11,691
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|
||||
Dividends paid
|
—
|
|
|
—
|
|
|
—
|
|
|
(303,639
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)
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|
(303,639
|
)
|
||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
195,613
|
|
|
195,613
|
|
||||
Balance, September 30, 2016
|
207,115,019
|
|
|
$
|
2,071
|
|
|
$
|
3,745,505
|
|
|
$
|
(1,297,916
|
)
|
|
$
|
2,449,660
|
|
Nine months ended September 30,
|
|
2016
|
|
2015
|
||||
|
|
|
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|
||||
Operating activities
|
|
|
|
|
|
|
||
Net income
|
|
$
|
195,613
|
|
|
$
|
98,349
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
85,119
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|
|
82,585
|
|
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Amortization of debt issuance costs
|
|
11,889
|
|
|
7,730
|
|
||
(Gains) losses on dispositions of property
|
|
(460
|
)
|
|
89
|
|
||
Deferred income taxes
|
|
(997
|
)
|
|
(2,179
|
)
|
||
Stock-based compensation
|
|
13,804
|
|
|
12,658
|
|
||
Straight-line rent adjustments
|
|
42,429
|
|
|
41,869
|
|
||
(Increase), decrease
|
|
|
|
|
|
|
||
Prepaid expenses and other current assets
|
|
10,593
|
|
|
(1,026
|
)
|
||
Other assets
|
|
(658
|
)
|
|
(2
|
)
|
||
Increase, (decrease)
|
|
|
|
|
|
|
||
Accounts payable
|
|
57
|
|
|
16
|
|
||
Accrued expenses
|
|
(4,123
|
)
|
|
3,634
|
|
||
Accrued interest
|
|
55,744
|
|
|
25,005
|
|
||
Accrued salaries and wages
|
|
(5,498
|
)
|
|
(902
|
)
|
||
Gaming, property and other taxes
|
|
840
|
|
|
(687
|
)
|
||
Other current and non-current liabilities
|
|
1,093
|
|
|
(314
|
)
|
||
Net cash provided by operating activities
|
|
405,445
|
|
|
266,825
|
|
||
Investing activities
|
|
|
|
|
|
|
||
Capital project expenditures, net of reimbursements
|
|
(323
|
)
|
|
(13,699
|
)
|
||
Capital maintenance expenditures
|
|
(1,693
|
)
|
|
(2,108
|
)
|
||
Proceeds from sale of property and equipment
|
|
1,131
|
|
|
117
|
|
||
Principal payments on loan receivable
|
|
2,612
|
|
|
1,613
|
|
||
Acquisition of real estate assets
|
|
(3,267,123
|
)
|
|
—
|
|
||
Collections of principal payments on investment in direct financing lease
|
|
30,529
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(3,234,867
|
)
|
|
(14,077
|
)
|
||
Financing activities
|
|
|
|
|
|
|
||
Dividends paid
|
|
(303,639
|
)
|
|
(188,470
|
)
|
||
Proceeds from exercise of options
|
|
102,598
|
|
|
17,250
|
|
||
Proceeds from issuance of common stock, net of issuance costs
|
|
870,931
|
|
|
—
|
|
||
Proceeds from issuance of long-term debt
|
|
2,502,000
|
|
|
—
|
|
||
Financing costs
|
|
(31,908
|
)
|
|
(6,688
|
)
|
||
Repayments of long-term debt
|
|
(327,076
|
)
|
|
(68,073
|
)
|
||
Net cash provided by (used in) financing activities
|
|
2,812,906
|
|
|
(245,981
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(16,516
|
)
|
|
6,767
|
|
||
Cash and cash equivalents at beginning of period
|
|
41,875
|
|
|
35,973
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
25,359
|
|
|
$
|
42,740
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment in direct financing lease, net
|
$
|
2,728,716
|
|
|
$
|
2,728,716
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash and cash equivalents
|
25,359
|
|
|
25,359
|
|
|
41,875
|
|
|
41,875
|
|
||||
Deferred compensation plan assets
|
17,110
|
|
|
17,110
|
|
|
14,833
|
|
|
14,833
|
|
||||
Loan receivable
|
26,738
|
|
|
26,738
|
|
|
29,350
|
|
|
29,350
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred compensation plan liabilities
|
17,263
|
|
|
17,263
|
|
|
14,866
|
|
|
14,866
|
|
||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
||||
Senior unsecured credit facility
|
1,290,000
|
|
|
1,283,165
|
|
|
490,000
|
|
|
479,612
|
|
||||
Senior unsecured notes
|
3,425,000
|
|
|
3,643,750
|
|
|
2,050,000
|
|
|
2,014,750
|
|
Year ending December 31,
|
Cash Receipts to be Recorded as Income
|
Cash Receipts to be Applied Against the Investment in Direct Financing Lease
|
||||
2016
|
$
|
17,724
|
|
$
|
18,004
|
|
2017
|
68,672
|
|
73,073
|
|
||
2018
|
66,509
|
|
45,244
|
|
||
2019
|
64,722
|
|
32,881
|
|
||
2020
|
63,057
|
|
34,546
|
|
||
Thereafter
|
1,121,270
|
|
1,835,157
|
|
||
Total
|
$
|
1,401,954
|
|
$
|
2,038,905
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Video lottery
|
$
|
28,285
|
|
|
$
|
30,053
|
|
|
$
|
89,403
|
|
|
$
|
93,224
|
|
Table game
|
4,226
|
|
|
4,584
|
|
|
13,417
|
|
|
14,275
|
|
||||
Poker
|
259
|
|
|
278
|
|
|
872
|
|
|
926
|
|
||||
Total gaming revenue, net of cash incentives
|
$
|
32,770
|
|
|
$
|
34,915
|
|
|
$
|
103,692
|
|
|
$
|
108,425
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Food and beverage
|
$
|
1,336
|
|
|
$
|
1,427
|
|
|
$
|
4,070
|
|
|
$
|
4,150
|
|
Other
|
29
|
|
|
22
|
|
|
91
|
|
|
43
|
|
||||
Total promotional allowances
|
$
|
1,365
|
|
|
$
|
1,449
|
|
|
$
|
4,161
|
|
|
$
|
4,193
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Food and beverage
|
$
|
582
|
|
|
$
|
578
|
|
|
$
|
1,696
|
|
|
$
|
1,750
|
|
Other
|
13
|
|
|
12
|
|
|
42
|
|
|
19
|
|
||||
Total cost of complimentary services
|
$
|
595
|
|
|
$
|
590
|
|
|
$
|
1,738
|
|
|
$
|
1,769
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
|
(in thousands)
|
||||||||||
Determination of shares:
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding
|
205,826
|
|
|
114,540
|
|
|
168,955
|
|
|
114,182
|
|
Assumed conversion of dilutive employee stock-based awards
|
1,293
|
|
|
3,696
|
|
|
1,983
|
|
|
4,112
|
|
Assumed conversion of restricted stock
|
185
|
|
|
150
|
|
|
158
|
|
|
178
|
|
Assumed conversion of performance-based restricted stock awards
|
572
|
|
|
377
|
|
|
453
|
|
|
420
|
|
Diluted weighted-average common shares outstanding
|
207,876
|
|
|
118,763
|
|
|
171,549
|
|
|
118,892
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands, except per share data)
|
||||||||||||||
Calculation of basic EPS:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
89,600
|
|
|
$
|
33,229
|
|
|
$
|
195,613
|
|
|
$
|
98,349
|
|
Less: Net income allocated to participating securities
|
(184
|
)
|
|
(135
|
)
|
|
(489
|
)
|
|
(399
|
)
|
||||
Net income attributable to common shareholders
|
$
|
89,416
|
|
|
$
|
33,094
|
|
|
$
|
195,124
|
|
|
$
|
97,950
|
|
Weighted-average common shares outstanding
|
205,826
|
|
|
114,540
|
|
|
168,955
|
|
|
114,182
|
|
||||
Basic EPS
|
$
|
0.43
|
|
|
$
|
0.29
|
|
|
$
|
1.15
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
||||||||
Calculation of diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
89,600
|
|
|
$
|
33,229
|
|
|
$
|
195,613
|
|
|
$
|
98,349
|
|
Diluted weighted-average common shares outstanding
|
207,876
|
|
|
118,763
|
|
|
171,549
|
|
|
118,892
|
|
||||
Diluted EPS
|
$
|
0.43
|
|
|
$
|
0.28
|
|
|
$
|
1.14
|
|
|
$
|
0.83
|
|
|
Number of Award
Shares
|
|
Outstanding at December 31, 2015
|
463,764
|
|
Granted
|
168,966
|
|
Released
|
(204,429
|
)
|
Canceled
|
(4,713
|
)
|
Outstanding at September 30, 2016
|
423,588
|
|
|
Number of Performance-Based Award Shares
|
|
Outstanding at December 31, 2015
|
1,091,556
|
|
Granted
|
558,000
|
|
Released
|
—
|
|
Canceled
|
—
|
|
Outstanding at September 30, 2016
|
1,649,556
|
|
Consideration
|
|
||
Cash
|
$
|
2,954,493
|
|
GLPI common stock
|
1,823,991
|
|
|
Accrual for unpaid invoices at September 30, 2016
|
597
|
|
|
Fair value of total consideration transferred
|
$
|
4,779,081
|
|
Real estate investments, net
|
$
|
1,422,547
|
|
Land rights, net
|
596,920
|
|
|
Investment in direct financing lease, net
|
2,759,244
|
|
|
Prepaid expenses
|
111
|
|
|
Other assets
|
259
|
|
|
Total purchase price
|
$
|
4,779,081
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(in thousands)
|
||||||
Land and improvements
|
$
|
2,062,216
|
|
|
$
|
453,739
|
|
Building and improvements
|
2,438,522
|
|
|
2,297,128
|
|
||
Construction in progress
|
8
|
|
|
—
|
|
||
Total real estate investments
|
4,500,746
|
|
|
2,750,867
|
|
||
Less accumulated depreciation
|
(731,972
|
)
|
|
(660,808
|
)
|
||
Real estate investments, net
|
$
|
3,768,774
|
|
|
$
|
2,090,059
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(in thousands)
|
||||||
Land rights
|
$
|
596,921
|
|
|
$
|
—
|
|
Less accumulated amortization
|
(3,852
|
)
|
|
—
|
|
||
Land rights, net
|
$
|
593,069
|
|
|
$
|
—
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(in thousands)
|
||||||
Land and improvements
|
$
|
30,920
|
|
|
$
|
31,187
|
|
Building and improvements
|
117,146
|
|
|
117,314
|
|
||
Furniture, fixtures, and equipment
|
113,987
|
|
|
112,227
|
|
||
Construction in progress
|
320
|
|
|
354
|
|
||
Total property and equipment
|
262,373
|
|
|
261,082
|
|
||
Less accumulated depreciation
|
(140,991
|
)
|
|
(131,335
|
)
|
||
Property and equipment, net
|
$
|
121,382
|
|
|
$
|
129,747
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(in thousands)
|
||||||
Minimum lease payments receivable
|
$
|
3,440,859
|
|
|
$
|
—
|
|
Unguaranteed residual value
|
689,811
|
|
|
—
|
|
||
Gross investment in direct financing lease
|
4,130,670
|
|
|
—
|
|
||
Less: unearned income
|
(1,401,954
|
)
|
|
—
|
|
||
Investment in direct financing lease, net
|
$
|
2,728,716
|
|
|
$
|
—
|
|
|
September 30,
2016 |
|
December 31,
2015 |
||||
|
(in thousands)
|
||||||
Unsecured term loan A
|
$
|
300,000
|
|
|
$
|
300,000
|
|
Unsecured term loan A-1
|
825,000
|
|
|
—
|
|
||
Unsecured $700 million revolver
|
165,000
|
|
|
190,000
|
|
||
$550 million 4.375% senior unsecured notes due November 2018
|
550,000
|
|
|
550,000
|
|
||
$1,000 million 4.875% senior unsecured notes due November 2020
|
1,000,000
|
|
|
1,000,000
|
|
||
$400 million 4.375% senior unsecured notes due April 2021
|
400,000
|
|
|
—
|
|
||
$500 million 5.375% senior unsecured notes due November 2023
|
500,000
|
|
|
500,000
|
|
||
$975 million 5.375% senior unsecured notes due April 2026
|
975,000
|
|
|
—
|
|
||
Capital lease
|
1,313
|
|
|
1,389
|
|
||
Total long-term debt
|
4,716,313
|
|
|
2,541,389
|
|
||
Less: unamortized debt issuance costs
|
(54,630
|
)
|
|
(31,048
|
)
|
||
Total long-term debt, net of unamortized debt issuance costs
|
4,661,683
|
|
|
2,510,341
|
|
||
Less current maturities of long-term debt
|
(106
|
)
|
|
(102
|
)
|
||
Long-term debt, net of current maturities
|
$
|
4,661,577
|
|
|
$
|
2,510,239
|
|
Within one year
|
$
|
106
|
|
2-3 years
|
1,015,228
|
|
|
4-5 years
|
2,225,251
|
|
|
Over 5 years
|
1,475,728
|
|
|
Total minimum payments
|
$
|
4,716,313
|
|
Declaration Date
|
|
Shareholder Record Date
|
|
Securities Class
|
|
Dividend Per Share
|
|
Period Covered
|
|
Distribution Date
|
|
Dividend Amount
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
January 29, 2016
|
|
February 22, 2016
|
|
Common Stock
|
|
$
|
0.56
|
|
|
First Quarter 2016
|
|
March 25, 2016
|
|
$
|
65,345
|
|
April 25, 2016
|
|
June 2, 2016
|
|
Common Stock
|
|
$
|
0.56
|
|
|
Second Quarter 2016
|
|
June 17, 2016
|
|
$
|
113,212
|
|
August 3, 2016
|
|
September 12, 2016
|
|
Common Stock
|
|
$
|
0.60
|
|
|
Third Quarter 2016
|
|
September 23, 2016
|
|
$
|
124,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
February 3, 2015
|
|
March 10, 2015
|
|
Common Stock
|
|
$
|
0.545
|
|
|
First Quarter 2015
|
|
March 27, 2015
|
|
$
|
62,072
|
|
May 1, 2015
|
|
June 11, 2015
|
|
Common Stock
|
|
$
|
0.545
|
|
|
Second Quarter 2015
|
|
June 26, 2015
|
|
$
|
62,348
|
|
July 30, 2015
|
|
September 14, 2015
|
|
Common Stock
|
|
$
|
0.545
|
|
|
Third Quarter 2015
|
|
September 25, 2015
|
|
$
|
62,456
|
|
|
|
Three Months Ended September 30, 2016
|
|
Three Months Ended September 30, 2015
|
||||||||||||||||||||||||||||
(in thousands)
|
|
GLP Capital
|
|
TRS Properties
|
|
Eliminations
(1)
|
|
Total
|
|
GLP Capital
|
|
TRS Properties
|
|
Eliminations
(1)
|
|
Total
|
||||||||||||||||
Net revenues
|
|
$
|
199,257
|
|
|
$
|
34,018
|
|
|
$
|
—
|
|
|
$
|
233,275
|
|
|
$
|
111,532
|
|
|
$
|
36,260
|
|
|
$
|
—
|
|
|
$
|
147,792
|
|
Income from operations
|
|
138,270
|
|
|
5,036
|
|
|
—
|
|
|
143,306
|
|
|
59,896
|
|
|
5,395
|
|
|
—
|
|
|
65,291
|
|
||||||||
Interest, net
|
|
52,400
|
|
|
2,600
|
|
|
(2,601
|
)
|
|
52,399
|
|
|
30,646
|
|
|
2,600
|
|
|
(2,601
|
)
|
|
30,645
|
|
||||||||
Income before income taxes
|
|
88,471
|
|
|
2,436
|
|
|
—
|
|
|
90,907
|
|
|
31,851
|
|
|
2,795
|
|
|
—
|
|
|
34,646
|
|
||||||||
Income tax expense
|
|
210
|
|
|
1,097
|
|
|
—
|
|
|
1,307
|
|
|
225
|
|
|
1,192
|
|
|
—
|
|
|
1,417
|
|
||||||||
Net income
|
|
88,261
|
|
|
1,339
|
|
|
—
|
|
|
89,600
|
|
|
31,626
|
|
|
1,603
|
|
|
—
|
|
|
33,229
|
|
||||||||
Depreciation
|
|
24,328
|
|
|
2,837
|
|
|
—
|
|
|
27,165
|
|
|
24,337
|
|
|
3,220
|
|
|
—
|
|
|
27,557
|
|
||||||||
Capital project expenditures, net of reimbursements
|
|
54
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
2,949
|
|
|
—
|
|
|
—
|
|
|
2,949
|
|
||||||||
Capital maintenance expenditures
|
|
—
|
|
|
496
|
|
|
—
|
|
|
496
|
|
|
—
|
|
|
382
|
|
|
—
|
|
|
382
|
|
|
|
Nine Months Ended September 30, 2016
|
|
Nine Months Ended September 30, 2015
|
||||||||||||||||||||||||||||
(in thousands)
|
|
GLP Capital
|
|
TRS Properties
|
|
Eliminations
(1)
|
|
Total
|
|
GLP Capital
|
|
TRS Properties
|
|
Eliminations
(1)
|
|
Total
|
||||||||||||||||
Net revenues
|
|
$
|
481,704
|
|
|
$
|
107,752
|
|
|
$
|
—
|
|
|
$
|
589,456
|
|
|
$
|
333,668
|
|
|
$
|
112,696
|
|
|
$
|
—
|
|
|
$
|
446,364
|
|
Income from operations
|
|
312,586
|
|
|
19,174
|
|
|
—
|
|
|
331,760
|
|
|
173,809
|
|
|
19,153
|
|
|
—
|
|
|
192,962
|
|
||||||||
Interest, net
|
|
130,568
|
|
|
7,801
|
|
|
(7,804
|
)
|
|
130,565
|
|
|
88,615
|
|
|
7,801
|
|
|
(7,804
|
)
|
|
88,612
|
|
||||||||
Income before income taxes
|
|
189,822
|
|
|
11,373
|
|
|
—
|
|
|
201,195
|
|
|
92,998
|
|
|
11,352
|
|
|
—
|
|
|
104,350
|
|
||||||||
Income tax expense
|
|
806
|
|
|
4,776
|
|
|
—
|
|
|
5,582
|
|
|
1,221
|
|
|
4,780
|
|
|
—
|
|
|
6,001
|
|
||||||||
Net income
|
|
189,016
|
|
|
6,597
|
|
|
—
|
|
|
195,613
|
|
|
91,777
|
|
|
6,572
|
|
|
—
|
|
|
98,349
|
|
||||||||
Depreciation
|
|
72,737
|
|
|
8,530
|
|
|
—
|
|
|
81,267
|
|
|
73,123
|
|
|
9,462
|
|
|
—
|
|
|
82,585
|
|
||||||||
Capital project expenditures, net of reimbursements
|
|
222
|
|
|
101
|
|
|
—
|
|
|
323
|
|
|
7,802
|
|
|
5,897
|
|
|
—
|
|
|
13,699
|
|
||||||||
Capital maintenance expenditures
|
|
—
|
|
|
1,693
|
|
|
—
|
|
|
1,693
|
|
|
—
|
|
|
2,108
|
|
|
—
|
|
|
2,108
|
|
(in thousands)
|
|
GLP Capital
|
|
TRS Properties
|
|
Eliminations
|
|
Total
|
||||||||
Balance sheet at September 30, 2016
|
|
|
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
7,211,477
|
|
|
$
|
209,843
|
|
|
$
|
—
|
|
|
$
|
7,421,320
|
|
|
|
|
|
|
|
|
|
|
||||||||
Balance sheet at December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Total assets
|
|
$
|
2,223,373
|
|
|
$
|
224,782
|
|
|
$
|
—
|
|
|
$
|
2,448,155
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Cash paid for income taxes, net of refunds received
|
$
|
1,608
|
|
|
$
|
3,009
|
|
|
$
|
4,638
|
|
|
$
|
7,434
|
|
Cash paid for interest
|
6,201
|
|
|
2,491
|
|
|
64,502
|
|
|
57,557
|
|
At September 30, 2016
Condensed Consolidating Balance Sheet |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate investments, net
|
|
$
|
—
|
|
|
$
|
1,886,252
|
|
|
$
|
1,882,522
|
|
|
$
|
—
|
|
|
$
|
3,768,774
|
|
Land rights, net
|
|
—
|
|
|
—
|
|
|
593,069
|
|
|
—
|
|
|
593,069
|
|
|||||
Property and equipment, used in operations, net
|
|
—
|
|
|
23,110
|
|
|
98,272
|
|
|
—
|
|
|
121,382
|
|
|||||
Investment in direct financing lease, net
|
|
—
|
|
|
—
|
|
|
2,728,716
|
|
|
—
|
|
|
2,728,716
|
|
|||||
Cash and cash equivalents
|
|
—
|
|
|
3,971
|
|
|
21,388
|
|
|
—
|
|
|
25,359
|
|
|||||
Prepaid expenses
|
|
—
|
|
|
5,114
|
|
|
3,878
|
|
|
519
|
|
|
9,511
|
|
|||||
Other current assets
|
|
—
|
|
|
39,880
|
|
|
18,103
|
|
|
—
|
|
|
57,983
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
75,521
|
|
|
—
|
|
|
75,521
|
|
|||||
Other intangible assets
|
|
—
|
|
|
—
|
|
|
9,577
|
|
|
—
|
|
|
9,577
|
|
|||||
Debt issuance costs, net of accumulated amortization of $9,500 at September 30, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Loan receivable
|
|
—
|
|
|
—
|
|
|
26,738
|
|
|
—
|
|
|
26,738
|
|
|||||
Intercompany loan receivable
|
|
—
|
|
|
193,595
|
|
|
—
|
|
|
(193,595
|
)
|
|
—
|
|
|||||
Intercompany transactions and investment in subsidiaries
|
|
2,449,660
|
|
|
5,239,292
|
|
|
2,969,761
|
|
|
(10,658,713
|
)
|
|
—
|
|
|||||
Deferred tax assets, non-current
|
|
|
|
|
—
|
|
|
3,384
|
|
|
—
|
|
|
3,384
|
|
|||||
Other assets
|
|
—
|
|
|
256
|
|
|
1,050
|
|
|
—
|
|
|
1,306
|
|
|||||
Total assets
|
|
$
|
2,449,660
|
|
|
$
|
7,391,470
|
|
|
$
|
8,431,979
|
|
|
$
|
(10,851,789
|
)
|
|
$
|
7,421,320
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
367
|
|
|
$
|
221
|
|
|
$
|
—
|
|
|
$
|
588
|
|
Accrued expenses
|
|
—
|
|
|
917
|
|
|
6,373
|
|
|
—
|
|
|
7,290
|
|
|||||
Accrued interest
|
|
—
|
|
|
73,367
|
|
|
—
|
|
|
—
|
|
|
73,367
|
|
|||||
Accrued salaries and wages
|
|
—
|
|
|
6,275
|
|
|
1,946
|
|
|
—
|
|
|
8,221
|
|
|||||
Gaming, property, and other taxes
|
|
—
|
|
|
27,579
|
|
|
18,537
|
|
|
—
|
|
|
46,116
|
|
|||||
Income taxes
|
|
—
|
|
|
3
|
|
|
(522
|
)
|
|
519
|
|
|
—
|
|
|||||
Current maturities of long-term debt
|
|
—
|
|
|
106
|
|
|
—
|
|
|
—
|
|
|
106
|
|
|||||
Other current liabilities
|
|
—
|
|
|
22,372
|
|
|
1,951
|
|
|
—
|
|
|
24,323
|
|
|||||
Long-term debt, net of current maturities and unamortized debt issuance costs
|
|
—
|
|
|
4,661,577
|
|
|
—
|
|
|
—
|
|
|
4,661,577
|
|
|||||
Intercompany loan payable
|
|
—
|
|
|
—
|
|
|
193,595
|
|
|
(193,595
|
)
|
|
—
|
|
|||||
Deferred rental revenue
|
|
—
|
|
|
149,247
|
|
|
560
|
|
|
—
|
|
|
149,807
|
|
|||||
Deferred tax liabilities, non-current
|
|
—
|
|
|
—
|
|
|
265
|
|
|
—
|
|
|
265
|
|
|||||
Total liabilities
|
|
—
|
|
|
4,941,810
|
|
|
222,926
|
|
|
(193,076
|
)
|
|
4,971,660
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ (deficit) equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at September 30, 2016)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Common stock ($.01 par value, 500,000,000 shares authorized, 207,115,019 shares issued at September 30, 2016)
|
|
2,071
|
|
|
2,071
|
|
|
2,071
|
|
|
(4,142
|
)
|
|
2,071
|
|
|||||
Additional paid-in capital
|
|
3,745,505
|
|
|
3,745,507
|
|
|
9,332,507
|
|
|
(13,078,014
|
)
|
|
3,745,505
|
|
|||||
Retained accumulated (deficit) earnings
|
|
(1,297,916
|
)
|
|
(1,297,918
|
)
|
|
(1,125,525
|
)
|
|
2,423,443
|
|
|
(1,297,916
|
)
|
|||||
Total shareholders’ (deficit) equity
|
|
2,449,660
|
|
|
2,449,660
|
|
|
8,209,053
|
|
|
(10,658,713
|
)
|
|
2,449,660
|
|
|||||
Total liabilities and shareholders’ (deficit) equity
|
|
$
|
2,449,660
|
|
|
$
|
7,391,470
|
|
|
$
|
8,431,979
|
|
|
$
|
(10,851,789
|
)
|
|
$
|
7,421,320
|
|
Three months ended September 30, 2016
Condensed Consolidating Statement of Operations |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Rental income
|
|
$
|
—
|
|
|
$
|
95,045
|
|
|
$
|
65,619
|
|
|
$
|
—
|
|
|
$
|
160,664
|
|
Income from direct financing lease
|
|
—
|
|
|
—
|
|
|
18,155
|
|
|
—
|
|
|
18,155
|
|
|||||
Real estate taxes paid by tenants
|
|
—
|
|
|
10,919
|
|
|
9,519
|
|
|
—
|
|
|
20,438
|
|
|||||
Total rental revenue and income from direct financing lease
|
|
—
|
|
|
105,964
|
|
|
93,293
|
|
|
—
|
|
|
199,257
|
|
|||||
Gaming
|
|
—
|
|
|
—
|
|
|
32,770
|
|
|
—
|
|
|
32,770
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
2,613
|
|
|
—
|
|
|
2,613
|
|
|||||
Total revenues
|
|
—
|
|
|
105,964
|
|
|
128,676
|
|
|
—
|
|
|
234,640
|
|
|||||
Less promotional allowances
|
|
—
|
|
|
—
|
|
|
(1,365
|
)
|
|
—
|
|
|
(1,365
|
)
|
|||||
Net revenues
|
|
—
|
|
|
105,964
|
|
|
127,311
|
|
|
—
|
|
|
233,275
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gaming
|
|
—
|
|
|
—
|
|
|
18,080
|
|
|
—
|
|
|
18,080
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
2,037
|
|
|
—
|
|
|
2,037
|
|
|||||
Real estate taxes
|
|
—
|
|
|
10,938
|
|
|
9,928
|
|
|
—
|
|
|
20,866
|
|
|||||
General and administrative
|
|
—
|
|
|
11,610
|
|
|
10,211
|
|
|
—
|
|
|
21,821
|
|
|||||
Depreciation
|
|
—
|
|
|
23,331
|
|
|
3,834
|
|
|
—
|
|
|
27,165
|
|
|||||
Total operating expenses
|
|
—
|
|
|
45,879
|
|
|
44,090
|
|
|
—
|
|
|
89,969
|
|
|||||
Income from operations
|
|
—
|
|
|
60,085
|
|
|
83,221
|
|
|
—
|
|
|
143,306
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense
|
|
—
|
|
|
(52,880
|
)
|
|
—
|
|
|
—
|
|
|
(52,880
|
)
|
|||||
Interest income
|
|
—
|
|
|
—
|
|
|
481
|
|
|
—
|
|
|
481
|
|
|||||
Intercompany dividends and interest
|
|
—
|
|
|
103,903
|
|
|
1,399
|
|
|
(105,302
|
)
|
|
—
|
|
|||||
Total other income (expenses)
|
|
—
|
|
|
51,023
|
|
|
1,880
|
|
|
(105,302
|
)
|
|
(52,399
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes
|
|
—
|
|
|
111,108
|
|
|
85,101
|
|
|
(105,302
|
)
|
|
90,907
|
|
|||||
Income tax expense
|
|
—
|
|
|
210
|
|
|
1,097
|
|
|
—
|
|
|
1,307
|
|
|||||
Net income (loss)
|
|
$
|
—
|
|
|
$
|
110,898
|
|
|
$
|
84,004
|
|
|
$
|
(105,302
|
)
|
|
$
|
89,600
|
|
Nine months ended September 30, 2016
Condensed Consolidating Statement of Operations |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Rental income
|
|
$
|
—
|
|
|
$
|
287,783
|
|
|
$
|
115,197
|
|
|
$
|
—
|
|
|
$
|
402,980
|
|
Income from direct financing lease
|
|
—
|
|
|
—
|
|
|
30,786
|
|
|
—
|
|
|
30,786
|
|
|||||
Real estate taxes paid by tenants
|
|
—
|
|
|
30,815
|
|
|
17,123
|
|
|
—
|
|
|
47,938
|
|
|||||
Total rental revenue and income from direct financing lease
|
|
—
|
|
|
318,598
|
|
|
163,106
|
|
|
—
|
|
|
481,704
|
|
|||||
Gaming
|
|
—
|
|
|
—
|
|
|
103,692
|
|
|
—
|
|
|
103,692
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
8,221
|
|
|
—
|
|
|
8,221
|
|
|||||
Total revenues
|
|
—
|
|
|
318,598
|
|
|
275,019
|
|
|
—
|
|
|
593,617
|
|
|||||
Less promotional allowances
|
|
—
|
|
|
—
|
|
|
(4,161
|
)
|
|
—
|
|
|
(4,161
|
)
|
|||||
Net revenues
|
|
—
|
|
|
318,598
|
|
|
270,858
|
|
|
—
|
|
|
589,456
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gaming
|
|
—
|
|
|
—
|
|
|
56,119
|
|
|
—
|
|
|
56,119
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
6,174
|
|
|
—
|
|
|
6,174
|
|
|||||
Real estate taxes
|
|
—
|
|
|
30,865
|
|
|
18,283
|
|
|
—
|
|
|
49,148
|
|
|||||
General and administrative
|
|
—
|
|
|
40,661
|
|
|
24,327
|
|
|
—
|
|
|
64,988
|
|
|||||
Depreciation
|
|
—
|
|
|
70,218
|
|
|
11,049
|
|
|
—
|
|
|
81,267
|
|
|||||
Total operating expenses
|
|
—
|
|
|
141,744
|
|
|
115,952
|
|
|
—
|
|
|
257,696
|
|
|||||
Income from operations
|
|
—
|
|
|
176,854
|
|
|
154,906
|
|
|
—
|
|
|
331,760
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense
|
|
—
|
|
|
(132,217
|
)
|
|
—
|
|
|
—
|
|
|
(132,217
|
)
|
|||||
Interest income
|
|
—
|
|
|
169
|
|
|
1,483
|
|
|
—
|
|
|
1,652
|
|
|||||
Intercompany dividends and interest
|
|
—
|
|
|
209,505
|
|
|
18,696
|
|
|
(228,201
|
)
|
|
—
|
|
|||||
Total other income (expenses)
|
|
—
|
|
|
77,457
|
|
|
20,179
|
|
|
(228,201
|
)
|
|
(130,565
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes
|
|
—
|
|
|
254,311
|
|
|
175,085
|
|
|
(228,201
|
)
|
|
201,195
|
|
|||||
Income tax expense
|
|
—
|
|
|
806
|
|
|
4,776
|
|
|
—
|
|
|
5,582
|
|
|||||
Net income (loss)
|
|
$
|
—
|
|
|
$
|
253,505
|
|
|
$
|
170,309
|
|
|
$
|
(228,201
|
)
|
|
$
|
195,613
|
|
Nine months ended September 30, 2016
Condensed Consolidating Statement of Cash Flows |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss)
|
|
$
|
—
|
|
|
$
|
253,505
|
|
|
$
|
170,309
|
|
|
$
|
(228,201
|
)
|
|
$
|
195,613
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization
|
|
—
|
|
|
70,218
|
|
|
14,901
|
|
|
—
|
|
|
85,119
|
|
|||||
Amortization of debt issuance costs
|
|
—
|
|
|
11,889
|
|
|
—
|
|
|
—
|
|
|
11,889
|
|
|||||
Gains on dispositions of property
|
|
—
|
|
|
(471
|
)
|
|
11
|
|
|
—
|
|
|
(460
|
)
|
|||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
(997
|
)
|
|
—
|
|
|
(997
|
)
|
|||||
Stock-based compensation
|
|
—
|
|
|
13,804
|
|
|
—
|
|
|
—
|
|
|
13,804
|
|
|||||
Straight-line rent adjustments
|
|
—
|
|
|
41,869
|
|
|
560
|
|
|
—
|
|
|
42,429
|
|
|||||
(Increase) decrease,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Prepaid expenses and other current assets
|
|
—
|
|
|
8,559
|
|
|
(369
|
)
|
|
2,403
|
|
|
10,593
|
|
|||||
Other assets
|
|
—
|
|
|
—
|
|
|
(658
|
)
|
|
—
|
|
|
(658
|
)
|
|||||
Intercompany
|
|
—
|
|
|
365
|
|
|
(365
|
)
|
|
—
|
|
|
—
|
|
|||||
Increase (decrease),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
|
—
|
|
|
115
|
|
|
(58
|
)
|
|
—
|
|
|
57
|
|
|||||
Accrued expenses
|
|
—
|
|
|
(3,820
|
)
|
|
(303
|
)
|
|
—
|
|
|
(4,123
|
)
|
|||||
Accrued interest
|
|
—
|
|
|
55,744
|
|
|
—
|
|
|
—
|
|
|
55,744
|
|
|||||
Accrued salaries and wages
|
|
—
|
|
|
(4,453
|
)
|
|
(1,045
|
)
|
|
—
|
|
|
(5,498
|
)
|
|||||
Gaming, property and other taxes
|
|
—
|
|
|
683
|
|
|
157
|
|
|
—
|
|
|
840
|
|
|||||
Income taxes
|
|
—
|
|
|
43
|
|
|
2,360
|
|
|
(2,403
|
)
|
|
—
|
|
|||||
Other current and non-current liabilities
|
|
—
|
|
|
6,072
|
|
|
(4,979
|
)
|
|
—
|
|
|
1,093
|
|
|||||
Net cash provided by (used in) operating activities
|
|
—
|
|
|
454,122
|
|
|
179,524
|
|
|
(228,201
|
)
|
|
405,445
|
|
|||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital project expenditures, net of reimbursements
|
|
—
|
|
|
(222
|
)
|
|
(101
|
)
|
|
—
|
|
|
(323
|
)
|
|||||
Capital maintenance expenditures
|
|
—
|
|
|
—
|
|
|
(1,693
|
)
|
|
—
|
|
|
(1,693
|
)
|
|||||
Proceeds from sale of property and equipment
|
|
—
|
|
|
897
|
|
|
234
|
|
|
—
|
|
|
1,131
|
|
|||||
Principal payments on loan receivable
|
|
—
|
|
|
—
|
|
|
2,612
|
|
|
—
|
|
|
2,612
|
|
|||||
Acquisition of real estate assets
|
|
—
|
|
|
—
|
|
|
(3,267,123
|
)
|
|
—
|
|
|
(3,267,123
|
)
|
|||||
Collection of principal payments on investment in direct financing lease
|
|
—
|
|
|
—
|
|
|
30,529
|
|
|
—
|
|
|
30,529
|
|
|||||
Net cash provided by (used in) investing activities
|
|
—
|
|
|
675
|
|
|
(3,235,542
|
)
|
|
—
|
|
|
(3,234,867
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dividends paid
|
|
(303,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(303,639
|
)
|
|||||
Proceeds from exercise of options
|
|
102,598
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,598
|
|
|||||
Proceeds from issuance of common stock, net of issuance costs
|
|
870,931
|
|
|
—
|
|
|
|
|
|
—
|
|
|
870,931
|
|
|||||
Proceeds from issuance of long-term debt
|
|
—
|
|
|
2,502,000
|
|
|
—
|
|
|
—
|
|
|
2,502,000
|
|
|||||
Financing costs
|
|
—
|
|
|
(31,908
|
)
|
|
—
|
|
|
—
|
|
|
(31,908
|
)
|
|||||
Repayments of long-term debt
|
|
—
|
|
|
(327,076
|
)
|
|
—
|
|
|
—
|
|
|
(327,076
|
)
|
|||||
Intercompany financing
|
|
(669,890
|
)
|
|
(2,602,558
|
)
|
|
3,044,247
|
|
|
228,201
|
|
|
—
|
|
|||||
Net cash (used in) provided by financing activities
|
|
—
|
|
|
(459,542
|
)
|
|
3,044,247
|
|
|
228,201
|
|
|
2,812,906
|
|
|||||
Net decrease in cash and cash equivalents
|
|
—
|
|
|
(4,745
|
)
|
|
(11,771
|
)
|
|
—
|
|
|
(16,516
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
8,716
|
|
|
33,159
|
|
|
—
|
|
|
41,875
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
3,971
|
|
|
$
|
21,388
|
|
|
$
|
—
|
|
|
$
|
25,359
|
|
At December 31, 2015 Condensed Consolidating Balance Sheet
|
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real estate investments, net
|
|
$
|
—
|
|
|
$
|
1,955,290
|
|
|
$
|
134,769
|
|
|
$
|
—
|
|
|
$
|
2,090,059
|
|
Property and equipment, used in operations, net
|
|
—
|
|
|
24,494
|
|
|
105,253
|
|
|
—
|
|
|
129,747
|
|
|||||
Cash and cash equivalents
|
|
—
|
|
|
8,716
|
|
|
33,159
|
|
|
—
|
|
|
41,875
|
|
|||||
Prepaid expenses
|
|
—
|
|
|
3,768
|
|
|
1,218
|
|
|
2,922
|
|
|
7,908
|
|
|||||
Other current assets
|
|
—
|
|
|
54,838
|
|
|
2,883
|
|
|
—
|
|
|
57,721
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
75,521
|
|
|
—
|
|
|
75,521
|
|
|||||
Other intangible assets
|
|
—
|
|
|
—
|
|
|
9,577
|
|
|
—
|
|
|
9,577
|
|
|||||
Debt issuance costs, net of accumulated amortization of $5,937 at December 31, 2015
|
|
—
|
|
|
3,563
|
|
|
—
|
|
|
—
|
|
|
3,563
|
|
|||||
Loan receivable
|
|
—
|
|
|
—
|
|
|
29,350
|
|
|
—
|
|
|
29,350
|
|
|||||
Intercompany loan receivable
|
|
—
|
|
|
193,595
|
|
|
—
|
|
|
(193,595
|
)
|
|
—
|
|
|||||
Intercompany transactions and investment in subsidiaries
|
|
(253,514
|
)
|
|
191,112
|
|
|
(46,418
|
)
|
|
108,820
|
|
|
—
|
|
|||||
Deferred tax assets, non-current
|
|
—
|
|
|
—
|
|
|
2,554
|
|
|
(107
|
)
|
|
2,447
|
|
|||||
Other assets
|
|
—
|
|
|
256
|
|
|
131
|
|
|
—
|
|
|
387
|
|
|||||
Total assets
|
|
$
|
(253,514
|
)
|
|
$
|
2,435,632
|
|
|
$
|
347,997
|
|
|
$
|
(81,960
|
)
|
|
$
|
2,448,155
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable
|
|
$
|
—
|
|
|
$
|
127
|
|
|
$
|
279
|
|
|
$
|
—
|
|
|
$
|
406
|
|
Accrued expenses
|
|
—
|
|
|
4,737
|
|
|
4,843
|
|
|
—
|
|
|
9,580
|
|
|||||
Accrued interest
|
|
—
|
|
|
17,623
|
|
|
—
|
|
|
—
|
|
|
17,623
|
|
|||||
Accrued salaries and wages
|
|
—
|
|
|
10,728
|
|
|
2,991
|
|
|
—
|
|
|
13,719
|
|
|||||
Gaming, property, and other taxes
|
|
—
|
|
|
21,949
|
|
|
2,753
|
|
|
—
|
|
|
24,702
|
|
|||||
Income taxes
|
|
—
|
|
|
(41
|
)
|
|
(2,881
|
)
|
|
2,922
|
|
|
—
|
|
|||||
Current maturities of long-term debt
|
|
—
|
|
|
102
|
|
|
—
|
|
|
—
|
|
|
102
|
|
|||||
Other current liabilities
|
|
—
|
|
|
16,303
|
|
|
1,384
|
|
|
—
|
|
|
17,687
|
|
|||||
Long-term debt, net of current maturities and unamortized debt issuance costs
|
|
—
|
|
|
2,510,239
|
|
|
—
|
|
|
—
|
|
|
2,510,239
|
|
|||||
Intercompany loan payable
|
|
—
|
|
|
—
|
|
|
193,595
|
|
|
(193,595
|
)
|
|
—
|
|
|||||
Deferred rental revenue
|
|
—
|
|
|
107,379
|
|
|
—
|
|
|
—
|
|
|
107,379
|
|
|||||
Deferred tax liabilities, non-current
|
|
—
|
|
|
—
|
|
|
339
|
|
|
(107
|
)
|
|
232
|
|
|||||
Total liabilities
|
|
—
|
|
|
2,689,146
|
|
|
203,303
|
|
|
(190,780
|
)
|
|
2,701,669
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders’ (deficit) equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at December 31, 2015)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Common stock ($.01 par value, 500,000,000 shares authorized, 115,594,321 shares issued at December 31, 2015)
|
|
1,156
|
|
|
1,156
|
|
|
1,156
|
|
|
(2,312
|
)
|
|
1,156
|
|
|||||
Additional paid-in capital
|
|
935,220
|
|
|
935,221
|
|
|
1,088,058
|
|
|
(2,023,279
|
)
|
|
935,220
|
|
|||||
Retained accumulated (deficit) earnings
|
|
(1,189,890
|
)
|
|
(1,189,891
|
)
|
|
(944,520
|
)
|
|
2,134,411
|
|
|
(1,189,890
|
)
|
|||||
Total shareholders’ (deficit) equity
|
|
(253,514
|
)
|
|
(253,514
|
)
|
|
144,694
|
|
|
108,820
|
|
|
(253,514
|
)
|
|||||
Total liabilities and shareholders’ (deficit) equity
|
|
$
|
(253,514
|
)
|
|
$
|
2,435,632
|
|
|
$
|
347,997
|
|
|
$
|
(81,960
|
)
|
|
$
|
2,448,155
|
|
Three months ended September 30, 2015
Condensed Consolidating Statement of Operations |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-
Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Rental income
|
|
$
|
—
|
|
|
$
|
94,254
|
|
|
$
|
3,500
|
|
|
$
|
—
|
|
|
$
|
97,754
|
|
Income from direct financing lease
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate taxes paid by tenants
|
|
—
|
|
|
13,266
|
|
|
512
|
|
|
—
|
|
|
13,778
|
|
|||||
Total rental revenue and income from direct financing lease
|
|
—
|
|
|
107,520
|
|
|
4,012
|
|
|
—
|
|
|
111,532
|
|
|||||
Gaming
|
|
—
|
|
|
—
|
|
|
34,915
|
|
|
—
|
|
|
34,915
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
2,794
|
|
|
—
|
|
|
2,794
|
|
|||||
Total revenues
|
|
—
|
|
|
107,520
|
|
|
41,721
|
|
|
—
|
|
|
149,241
|
|
|||||
Less promotional allowances
|
|
—
|
|
|
—
|
|
|
(1,449
|
)
|
|
—
|
|
|
(1,449
|
)
|
|||||
Net revenues
|
|
—
|
|
|
107,520
|
|
|
40,272
|
|
|
—
|
|
|
147,792
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gaming
|
|
—
|
|
|
—
|
|
|
19,357
|
|
|
—
|
|
|
19,357
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
2,128
|
|
|
—
|
|
|
2,128
|
|
|||||
Real estate taxes
|
|
—
|
|
|
13,266
|
|
|
908
|
|
|
—
|
|
|
14,174
|
|
|||||
General and administrative
|
|
—
|
|
|
13,521
|
|
|
5,764
|
|
|
—
|
|
|
19,285
|
|
|||||
Depreciation
|
|
—
|
|
|
23,576
|
|
|
3,981
|
|
|
—
|
|
|
27,557
|
|
|||||
Total operating expenses
|
|
—
|
|
|
50,363
|
|
|
32,138
|
|
|
—
|
|
|
82,501
|
|
|||||
Income from operations
|
|
—
|
|
|
57,157
|
|
|
8,134
|
|
|
—
|
|
|
65,291
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
—
|
|
|
(31,226
|
)
|
|
—
|
|
|
—
|
|
|
(31,226
|
)
|
|||||
Interest income
|
|
—
|
|
|
(1
|
)
|
|
582
|
|
|
—
|
|
|
581
|
|
|||||
Intercompany dividends and interest
|
|
—
|
|
|
6,101
|
|
|
2,399
|
|
|
(8,500
|
)
|
|
—
|
|
|||||
Total other income (expenses)
|
|
—
|
|
|
(25,126
|
)
|
|
2,981
|
|
|
(8,500
|
)
|
|
(30,645
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes
|
|
—
|
|
|
32,031
|
|
|
11,115
|
|
|
(8,500
|
)
|
|
34,646
|
|
|||||
Income tax expense
|
|
—
|
|
|
226
|
|
|
1,191
|
|
|
—
|
|
|
1,417
|
|
|||||
Net income (loss)
|
|
$
|
—
|
|
|
$
|
31,805
|
|
|
$
|
9,924
|
|
|
$
|
(8,500
|
)
|
|
$
|
33,229
|
|
Nine months ended September 30, 2015
Condensed Consolidating Statement of Operations |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-
Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Rental income
|
|
$
|
—
|
|
|
$
|
283,097
|
|
|
$
|
10,500
|
|
|
$
|
—
|
|
|
$
|
293,597
|
|
Income from direct financing lease
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate taxes paid by tenants
|
|
—
|
|
|
38,575
|
|
|
1,496
|
|
|
—
|
|
|
40,071
|
|
|||||
Total rental revenue and income from direct financing lease
|
|
—
|
|
|
321,672
|
|
|
11,996
|
|
|
—
|
|
|
333,668
|
|
|||||
Gaming
|
|
—
|
|
|
—
|
|
|
108,425
|
|
|
—
|
|
|
108,425
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
8,464
|
|
|
—
|
|
|
8,464
|
|
|||||
Total revenues
|
|
—
|
|
|
321,672
|
|
|
128,885
|
|
|
—
|
|
|
450,557
|
|
|||||
Less promotional allowances
|
|
—
|
|
|
—
|
|
|
(4,193
|
)
|
|
—
|
|
|
(4,193
|
)
|
|||||
Net revenues
|
|
—
|
|
|
321,672
|
|
|
124,692
|
|
|
—
|
|
|
446,364
|
|
|||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gaming
|
|
—
|
|
|
—
|
|
|
58,644
|
|
|
—
|
|
|
58,644
|
|
|||||
Food, beverage and other
|
|
—
|
|
|
—
|
|
|
6,489
|
|
|
—
|
|
|
6,489
|
|
|||||
Real estate taxes
|
|
—
|
|
|
38,575
|
|
|
2,563
|
|
|
—
|
|
|
41,138
|
|
|||||
General and administrative
|
|
—
|
|
|
46,665
|
|
|
17,881
|
|
|
—
|
|
|
64,546
|
|
|||||
Depreciation
|
|
—
|
|
|
70,840
|
|
|
11,745
|
|
|
—
|
|
|
82,585
|
|
|||||
Total operating expenses
|
|
—
|
|
|
156,080
|
|
|
97,322
|
|
|
—
|
|
|
253,402
|
|
|||||
Income from operations
|
|
—
|
|
|
165,592
|
|
|
27,370
|
|
|
—
|
|
|
192,962
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
—
|
|
|
(90,373
|
)
|
|
—
|
|
|
—
|
|
|
(90,373
|
)
|
|||||
Interest income
|
|
—
|
|
|
10
|
|
|
1,751
|
|
|
—
|
|
|
1,761
|
|
|||||
Intercompany dividends and interest
|
|
—
|
|
|
23,790
|
|
|
4,196
|
|
|
(27,986
|
)
|
|
—
|
|
|||||
Total other income (expenses)
|
|
—
|
|
|
(66,573
|
)
|
|
5,947
|
|
|
(27,986
|
)
|
|
(88,612
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes
|
|
—
|
|
|
99,019
|
|
|
33,317
|
|
|
(27,986
|
)
|
|
104,350
|
|
|||||
Income tax expense
|
|
—
|
|
|
1,222
|
|
|
4,779
|
|
|
—
|
|
|
6,001
|
|
|||||
Net income (loss)
|
|
$
|
—
|
|
|
$
|
97,797
|
|
|
$
|
28,538
|
|
|
$
|
(27,986
|
)
|
|
$
|
98,349
|
|
Nine months ended September 30, 2015
Condensed Consolidating Statement of Cash Flows |
|
Parent
Guarantor
|
|
Subsidiary
Issuers
|
|
Other
Subsidiary
Non-Issuers
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss)
|
|
$
|
—
|
|
|
$
|
97,797
|
|
|
$
|
28,538
|
|
|
$
|
(27,986
|
)
|
|
$
|
98,349
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization
|
|
—
|
|
|
70,840
|
|
|
11,745
|
|
|
—
|
|
|
82,585
|
|
|||||
Amortization of debt issuance costs
|
|
—
|
|
|
7,730
|
|
|
—
|
|
|
—
|
|
|
7,730
|
|
|||||
Losses on dispositions of property
|
|
—
|
|
|
56
|
|
|
33
|
|
|
—
|
|
|
89
|
|
|||||
Deferred income taxes
|
|
—
|
|
|
—
|
|
|
(2,179
|
)
|
|
—
|
|
|
(2,179
|
)
|
|||||
Stock-based compensation
|
|
—
|
|
|
12,658
|
|
|
—
|
|
|
—
|
|
|
12,658
|
|
|||||
Straight-line rent adjustments
|
|
—
|
|
|
41,869
|
|
|
—
|
|
|
—
|
|
|
41,869
|
|
|||||
(Increase) decrease,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Prepaid expenses and other current assets
|
|
—
|
|
|
(2,831
|
)
|
|
1,102
|
|
|
703
|
|
|
(1,026
|
)
|
|||||
Other assets
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Intercompany
|
|
—
|
|
|
2,467
|
|
|
(2,467
|
)
|
|
—
|
|
|
—
|
|
|||||
(Decrease) increase,
|
|
0
|
|
|
0
|
|
|
|
|
|
0
|
|
|
|
||||||
Accounts payable
|
|
—
|
|
|
(104
|
)
|
|
120
|
|
|
—
|
|
|
16
|
|
|||||
Accrued expenses
|
|
—
|
|
|
3,871
|
|
|
(237
|
)
|
|
—
|
|
|
3,634
|
|
|||||
Accrued interest
|
|
—
|
|
|
25,005
|
|
|
—
|
|
|
—
|
|
|
25,005
|
|
|||||
Accrued salaries and wages
|
|
—
|
|
|
(912
|
)
|
|
10
|
|
|
—
|
|
|
(902
|
)
|
|||||
Gaming, property and other taxes
|
|
—
|
|
|
(951
|
)
|
|
264
|
|
|
—
|
|
|
(687
|
)
|
|||||
Income taxes
|
|
—
|
|
|
165
|
|
|
538
|
|
|
(703
|
)
|
|
—
|
|
|||||
Other current and non-current liabilities
|
|
—
|
|
|
(223
|
)
|
|
(91
|
)
|
|
—
|
|
|
(314
|
)
|
|||||
Net cash provided by (used in) operating activities
|
|
—
|
|
|
257,437
|
|
|
37,374
|
|
|
(27,986
|
)
|
|
266,825
|
|
|||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital project expenditures, net of reimbursements
|
|
—
|
|
|
(7,802
|
)
|
|
(5,897
|
)
|
|
—
|
|
|
(13,699
|
)
|
|||||
Capital maintenance expenditures
|
|
—
|
|
|
—
|
|
|
(2,108
|
)
|
|
—
|
|
|
(2,108
|
)
|
|||||
Proceeds from sale of property and equipment
|
|
—
|
|
|
111
|
|
|
6
|
|
|
—
|
|
|
117
|
|
|||||
Principal payments on loan receivable
|
|
—
|
|
|
—
|
|
|
1,613
|
|
|
—
|
|
|
1,613
|
|
|||||
Net cash used in investing activities
|
|
—
|
|
|
(7,691
|
)
|
|
(6,386
|
)
|
|
—
|
|
|
(14,077
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dividends paid
|
|
(188,470
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(188,470
|
)
|
|||||
Proceeds from exercise of options
|
|
17,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,250
|
|
|||||
Financing costs
|
|
—
|
|
|
(6,688
|
)
|
|
—
|
|
|
—
|
|
|
(6,688
|
)
|
|||||
Payments of long-term debt
|
|
—
|
|
|
(68,073
|
)
|
|
—
|
|
|
—
|
|
|
(68,073
|
)
|
|||||
Intercompany financing
|
|
168,577
|
|
|
(168,628
|
)
|
|
(27,935
|
)
|
|
27,986
|
|
|
—
|
|
|||||
Net cash (used in) provided by financing activities
|
|
(2,643
|
)
|
|
(243,389
|
)
|
|
(27,935
|
)
|
|
27,986
|
|
|
(245,981
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
|
(2,643
|
)
|
|
6,357
|
|
|
3,053
|
|
|
—
|
|
|
6,767
|
|
|||||
Cash and cash equivalents at beginning of period
|
|
2,643
|
|
|
4,450
|
|
|
28,880
|
|
|
—
|
|
|
35,973
|
|
|||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
10,807
|
|
|
$
|
31,933
|
|
|
$
|
—
|
|
|
$
|
42,740
|
|
•
|
During April 2016, we acquired substantially all of Pinnacle's real estate assets. These assets are leased back to Pinnacle under a Master Lease which is bifurcated between an operating lease and a direct financing lease, resulting in the recognition of rental income for the land assets leased to Pinnacle and income from a direct financing lease for the building assets leased to Pinnacle. Additionally, during September 2016, we acquired the real estate assets of the Meadows and leased these assets to Pinnacle under a single property triple-net lease. Rental revenue and income from the direct financing lease were
$199.3 million
and
$481.7 million
, respectively, for the
three and nine
months ended
September 30, 2016
, and
$111.5 million
and
$333.7 million
, respectively, for the
three and nine
months ended
September 30, 2015
. Rental revenue and income from the direct financing lease increased by
$87.7 million
for the three months ended
September 30, 2016
, as compared to the corresponding period in the prior year, primarily due to the Pinnacle transaction which increased rental income, income from the direct financing lease and the revenue recorded for real estate taxes paid by our tenants. Rental revenue and income from the direct financing lease increased by
$148.0 million
for the
nine
months ended
September 30, 2016
, as compared to the corresponding period in the prior year, primarily due to the reasons described above, as well as the impact of the Penn rent escalator and improved results at our two properties with monthly variable rent in 2016.
|
•
|
Net revenues for our TRS Properties decreased by $
2.2 million
and
4.9 million
for the
three and nine
months ended
September 30, 2016
, as compared to the corresponding periods in the prior year, primarily due to decreased gaming revenues at both Hollywood Casino Baton Rouge and Hollywood Casino Perryville, resulting from lower volumes.
|
•
|
Total operating expenses increased by
$7.5 million
and
$4.3 million
, respectively, for the
three and nine
months ended
September 30, 2016
, as compared to the corresponding periods in the prior year, driven by increases in real estate taxes, primarily as a result of the addition of the Pinnacle and Meadows properties to our real estate portfolio and partially offset by declines in gaming and food, beverage and other expenses led by the revenue declines at our TRS properties.
|
•
|
Other expenses, net increased by
$21.8 million
and
$42.0 million
, respectively, for the
three and nine
months ended
September 30, 2016
, as compared to the corresponding periods in the prior year, driven by increases in interest expense related to the Company's new borrowings.
|
•
|
Net income increased by
$56.4 million
and
$97.3 million
, respectively, for the
three and nine
months ended
September 30, 2016
, as compared to the corresponding periods in the prior year, primarily due to the variances explained above.
|
•
|
On September 9, 2016, the Company purchased the real property assets of the Meadows Racetrack and Casino from CCR. Concurrent with the Company's purchase of the Meadows' real estate assets, Pinnacle purchased the entities holding the Meadows gaming and racing licenses and operating assets from CCR. GLPI leases the Meadows real property assets to Pinnacle under a triple-net lease separate from the Pinnacle Master Lease with an initial term of 10 years with no purchase option and the option to renew for three successive five-year terms and one four-year term, at Pinnacle's option. See "Note 5: Acquisitions" in the Notes to the Condensed Consolidated Financial Statements in Part I of this Quarterly Report on Form 10-Q for further details surrounding the Meadows acquisition.
|
•
|
On April 28, 2016, the Company acquired substantially all of the real estate assets of Pinnacle, for approximately
$4.8 billion
. GLPI leases these assets back to Pinnacle, under a triple-net lease with an initial term of
10 years
with no purchase option, followed by
five
5
-year renewal options (exercisable by Pinnacle) on the same terms and conditions. The Pinnacle Master Lease added 14 properties to our real estate portfolio. See "Note 5: Acquisitions" in the Notes to the Condensed Consolidated Financial Statements in Part I of this Quarterly Report on Form 10-Q for further details surrounding the Pinnacle acquisition.
|
•
|
In November 2012, voters approved legislation authorizing a sixth casino in Prince George’s County, Maryland. The new law also changed the tax rate casino operators pay the state, varying from casino to casino, allowed all casinos in Maryland to be open 24 hours per day for the entire year, and permitted casinos to directly purchase slot machines in exchange for gaming tax reductions. As a result of slot machines purchased during 2015, Hollywood Casino Perryville's effective tax rate was reduced to 62.5 percent from 67 percent in 2015 and to 61 percent in 2016. The option for an additional 5 percent tax reduction is possible in 2019, if an independent commission agrees. In December 2013, the license for the sixth casino in Prince George’s County was granted. The $1.4 billion casino resort, which is scheduled to open on December 8, 2016, could adversely impact Hollywood Casino Perryville’s financial results.
|
•
|
The fact that the rules and regulations of U.S. federal income taxation are constantly under review by legislators, the IRS and the U.S. Department of the Treasury. Changes to the tax laws or interpretations thereof, with or without retroactive application, could materially and adversely affect GLPI's investors or GLPI.
|
•
|
The risks related to economic conditions and the effect of such conditions on consumer spending for leisure and gaming activities, which may negatively impact our gaming tenants and operators.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in thousands)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental income
|
$
|
160,664
|
|
|
$
|
97,754
|
|
|
$
|
402,980
|
|
|
$
|
293,597
|
|
Income from direct financing lease
|
18,155
|
|
|
—
|
|
|
30,786
|
|
|
—
|
|
||||
Real estate taxes paid by tenants
|
20,438
|
|
|
13,778
|
|
|
47,938
|
|
|
40,071
|
|
||||
Total rental revenue and income from direct financing lease
|
199,257
|
|
|
111,532
|
|
|
481,704
|
|
|
333,668
|
|
||||
Gaming
|
32,770
|
|
|
34,915
|
|
|
103,692
|
|
|
108,425
|
|
||||
Food, beverage and other
|
2,613
|
|
|
2,794
|
|
|
8,221
|
|
|
8,464
|
|
||||
Total revenues
|
234,640
|
|
|
149,241
|
|
|
593,617
|
|
|
450,557
|
|
||||
Less promotional allowances
|
(1,365
|
)
|
|
(1,449
|
)
|
|
(4,161
|
)
|
|
(4,193
|
)
|
||||
Net revenues
|
233,275
|
|
|
147,792
|
|
|
589,456
|
|
|
446,364
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gaming
|
18,080
|
|
|
19,357
|
|
|
56,119
|
|
|
58,644
|
|
||||
Food, beverage and other
|
2,037
|
|
|
2,128
|
|
|
6,174
|
|
|
6,489
|
|
||||
Real estate taxes
|
20,866
|
|
|
14,174
|
|
|
49,148
|
|
|
41,138
|
|
||||
General and administrative
|
21,821
|
|
|
19,285
|
|
|
64,988
|
|
|
64,546
|
|
||||
Depreciation
|
27,165
|
|
|
27,557
|
|
|
81,267
|
|
|
82,585
|
|
||||
Total operating expenses
|
89,969
|
|
|
82,501
|
|
|
257,696
|
|
|
253,402
|
|
||||
Income from operations
|
$
|
143,306
|
|
|
$
|
65,291
|
|
|
$
|
331,760
|
|
|
$
|
192,962
|
|
|
Three Months Ended September 30,
|
||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
Net Revenues
|
|
Income from Operations
|
||||||||||||
|
(in thousands)
|
||||||||||||||
GLP Capital
|
$
|
199,257
|
|
|
$
|
111,532
|
|
|
$
|
138,270
|
|
|
$
|
59,896
|
|
TRS Properties
|
34,018
|
|
|
36,260
|
|
|
5,036
|
|
|
5,395
|
|
||||
Total
|
$
|
233,275
|
|
|
$
|
147,792
|
|
|
$
|
143,306
|
|
|
$
|
65,291
|
|
|
Nine Months Ended September 30,
|
||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
Net Revenues
|
|
Income from Operations
|
||||||||||||
|
(in thousands)
|
||||||||||||||
GLP Capital
|
$
|
481,704
|
|
|
$
|
333,668
|
|
|
$
|
312,586
|
|
|
$
|
173,809
|
|
TRS Properties
|
107,752
|
|
|
112,696
|
|
|
19,174
|
|
|
19,153
|
|
||||
Total
|
$
|
589,456
|
|
|
$
|
446,364
|
|
|
$
|
331,760
|
|
|
$
|
192,962
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Net income
|
|
$
|
89,600
|
|
|
$
|
33,229
|
|
|
$
|
195,613
|
|
|
$
|
98,349
|
|
(Gains) or losses from dispositions of property
|
|
(445
|
)
|
|
22
|
|
|
(460
|
)
|
|
89
|
|
||||
Real estate depreciation
|
|
23,802
|
|
|
23,867
|
|
|
71,164
|
|
|
71,718
|
|
||||
Funds from operations
|
|
$
|
112,957
|
|
|
$
|
57,118
|
|
|
$
|
266,317
|
|
|
$
|
170,156
|
|
Straight-line rent adjustments
|
|
14,517
|
|
|
13,957
|
|
|
42,429
|
|
|
41,869
|
|
||||
Direct financing lease adjustments
|
|
18,004
|
|
|
—
|
|
|
30,529
|
|
|
—
|
|
||||
Other depreciation
|
|
3,363
|
|
|
3,690
|
|
|
10,103
|
|
|
10,867
|
|
||||
Amortization of land rights
|
|
2,311
|
|
|
—
|
|
|
3,852
|
|
|
—
|
|
||||
Amortization of debt issuance costs
|
|
3,257
|
|
|
3,691
|
|
|
11,889
|
|
|
7,730
|
|
||||
Stock based compensation
|
|
4,641
|
|
|
4,153
|
|
|
13,804
|
|
|
12,658
|
|
||||
Maintenance CAPEX
|
|
(496
|
)
|
|
(382
|
)
|
|
(1,693
|
)
|
|
(2,108
|
)
|
||||
Adjusted funds from operations
|
|
$
|
158,554
|
|
|
$
|
82,227
|
|
|
$
|
377,230
|
|
|
$
|
241,172
|
|
Interest, net
|
|
52,399
|
|
|
30,645
|
|
|
130,565
|
|
|
88,612
|
|
||||
Income tax expense
|
|
1,307
|
|
|
1,417
|
|
|
5,582
|
|
|
6,001
|
|
||||
Maintenance CAPEX
|
|
496
|
|
|
382
|
|
|
1,693
|
|
|
2,108
|
|
||||
Amortization of debt issuance costs
|
|
(3,257
|
)
|
|
(3,691
|
)
|
|
(11,889
|
)
|
|
(7,730
|
)
|
||||
Adjusted EBITDA
|
|
$
|
209,499
|
|
|
$
|
110,980
|
|
|
$
|
503,181
|
|
|
$
|
330,163
|
|
|
|
GLP Capital
|
|
TRS Properties
|
||||||||||||
Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Net income
|
|
$
|
88,261
|
|
|
$
|
31,626
|
|
|
$
|
1,339
|
|
|
$
|
1,603
|
|
(Gains) or losses from dispositions of property
|
|
(471
|
)
|
|
10
|
|
|
26
|
|
|
12
|
|
||||
Real estate depreciation
|
|
23,802
|
|
|
23,867
|
|
|
—
|
|
|
—
|
|
||||
Funds from operations
|
|
$
|
111,592
|
|
|
$
|
55,503
|
|
|
$
|
1,365
|
|
|
$
|
1,615
|
|
Straight-line rent adjustments
|
|
14,517
|
|
|
13,957
|
|
|
—
|
|
|
—
|
|
||||
Direct financing lease adjustments
|
|
18,004
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other depreciation
|
|
526
|
|
|
470
|
|
|
2,837
|
|
|
3,220
|
|
||||
Amortization of land rights
|
|
2,311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Debt issuance costs amortization
|
|
3,257
|
|
|
3,691
|
|
|
—
|
|
|
—
|
|
||||
Stock based compensation
|
|
4,641
|
|
|
4,153
|
|
|
—
|
|
|
—
|
|
||||
Maintenance CAPEX
|
|
—
|
|
|
—
|
|
|
(496
|
)
|
|
(382
|
)
|
||||
Adjusted funds from operations
|
|
$
|
154,848
|
|
|
$
|
77,774
|
|
|
$
|
3,706
|
|
|
$
|
4,453
|
|
Interest, net
(1)
|
|
49,799
|
|
|
28,045
|
|
|
2,600
|
|
|
2,600
|
|
||||
Income tax expense
|
|
210
|
|
|
225
|
|
|
1,097
|
|
|
1,192
|
|
||||
Maintenance CAPEX
|
|
—
|
|
|
—
|
|
|
496
|
|
|
382
|
|
||||
Debt issuance costs amortization
|
|
(3,257
|
)
|
|
(3,691
|
)
|
|
—
|
|
|
—
|
|
||||
Adjusted EBITDA
|
|
$
|
201,600
|
|
|
$
|
102,353
|
|
|
$
|
7,899
|
|
|
$
|
8,627
|
|
|
|
GLP Capital
|
|
TRS Properties
|
||||||||||||
Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
189,016
|
|
|
$
|
91,777
|
|
|
$
|
6,597
|
|
|
$
|
6,572
|
|
(Gains) or losses from dispositions of property
|
|
(471
|
)
|
|
56
|
|
|
11
|
|
|
33
|
|
||||
Real estate depreciation
|
|
71,164
|
|
|
71,718
|
|
|
—
|
|
|
—
|
|
||||
Funds from operations
|
|
$
|
259,709
|
|
|
$
|
163,551
|
|
|
$
|
6,608
|
|
|
$
|
6,605
|
|
Straight-line rent adjustments
|
|
42,429
|
|
|
41,869
|
|
|
—
|
|
|
—
|
|
||||
Direct financing lease adjustments
|
|
30,529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other depreciation
|
|
1,573
|
|
|
1,405
|
|
|
8,530
|
|
|
9,462
|
|
||||
Amortization of land rights
|
|
3,852
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Debt issuance costs amortization
|
|
11,889
|
|
|
7,730
|
|
|
—
|
|
|
—
|
|
||||
Stock based compensation
|
|
13,804
|
|
|
12,658
|
|
|
—
|
|
|
—
|
|
||||
Maintenance CAPEX
|
|
—
|
|
|
—
|
|
|
(1,693
|
)
|
|
(2,108
|
)
|
||||
Adjusted funds from operations
|
|
$
|
363,785
|
|
|
$
|
227,213
|
|
|
$
|
13,445
|
|
|
$
|
13,959
|
|
Interest, net
(1)
|
|
122,764
|
|
|
80,811
|
|
|
7,801
|
|
|
7,801
|
|
||||
Income tax expense
|
|
806
|
|
|
1,221
|
|
|
4,776
|
|
|
4,780
|
|
||||
Maintenance CAPEX
|
|
—
|
|
|
—
|
|
|
1,693
|
|
|
2,108
|
|
||||
Debt issuance costs amortization
|
|
(11,889
|
)
|
|
(7,730
|
)
|
|
—
|
|
|
—
|
|
||||
Adjusted EBITDA
|
|
$
|
475,466
|
|
|
$
|
301,515
|
|
|
$
|
27,715
|
|
|
$
|
28,648
|
|
|
(1)
|
Interest expense, net for the GLP Capital segment is net of intercompany interest eliminations of
$2.6 million
and
$7.8 million
for both the
three and nine
months ended
September 30, 2016
and
2015
, respectively.
|
|
|
|
|
|
|
|
|
Percentage
|
|||||||
Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Variance
|
|
Variance
|
|||||||
Total rental revenue and income from direct financing lease
|
|
$
|
199,257
|
|
|
$
|
111,532
|
|
|
$
|
87,725
|
|
|
78.7
|
%
|
Gaming
|
|
32,770
|
|
|
34,915
|
|
|
(2,145
|
)
|
|
(6.1
|
)%
|
|||
Food, beverage and other
|
|
2,613
|
|
|
2,794
|
|
|
(181
|
)
|
|
(6.5
|
)%
|
|||
Total revenues
|
|
234,640
|
|
|
149,241
|
|
|
85,399
|
|
|
57.2
|
%
|
|||
Less promotional allowances
|
|
(1,365
|
)
|
|
(1,449
|
)
|
|
84
|
|
|
5.8
|
%
|
|||
Net revenues
|
|
$
|
233,275
|
|
|
$
|
147,792
|
|
|
$
|
85,483
|
|
|
57.8
|
%
|
|
|
|
|
|
|
|
|
Percentage
|
|||||||
Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Variance
|
|
Variance
|
|||||||
Total rental revenue and income from direct financing lease
|
|
$
|
481,704
|
|
|
$
|
333,668
|
|
|
$
|
148,036
|
|
|
44.4
|
%
|
Gaming
|
|
103,692
|
|
|
108,425
|
|
|
(4,733
|
)
|
|
(4.4
|
)%
|
|||
Food, beverage and other
|
|
8,221
|
|
|
8,464
|
|
|
(243
|
)
|
|
(2.9
|
)%
|
|||
Total revenues
|
|
593,617
|
|
|
450,557
|
|
|
143,060
|
|
|
31.8
|
%
|
|||
Less promotional allowances
|
|
(4,161
|
)
|
|
(4,193
|
)
|
|
32
|
|
|
0.8
|
%
|
|||
Net revenues
|
|
$
|
589,456
|
|
|
$
|
446,364
|
|
|
$
|
143,092
|
|
|
32.1
|
%
|
|
|
|
|
|
|
|
|
Percentage
|
|||||||
Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Variance
|
|
Variance
|
|||||||
Gaming
|
|
$
|
18,080
|
|
|
$
|
19,357
|
|
|
$
|
(1,277
|
)
|
|
(6.6
|
)%
|
Food, beverage and other
|
|
2,037
|
|
|
2,128
|
|
|
(91
|
)
|
|
(4.3
|
)%
|
|||
Real estate taxes
|
|
20,866
|
|
|
14,174
|
|
|
6,692
|
|
|
47.2
|
%
|
|||
General and administrative
|
|
21,821
|
|
|
19,285
|
|
|
2,536
|
|
|
13.2
|
%
|
|||
Depreciation
|
|
27,165
|
|
|
27,557
|
|
|
(392
|
)
|
|
(1.4
|
)%
|
|||
Total operating expenses
|
|
$
|
89,969
|
|
|
$
|
82,501
|
|
|
$
|
7,468
|
|
|
9.1
|
%
|
|
|
|
|
|
|
|
|
Percentage
|
|||||||
Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Variance
|
|
Variance
|
|||||||
Gaming
|
|
$
|
56,119
|
|
|
$
|
58,644
|
|
|
$
|
(2,525
|
)
|
|
(4.3
|
)%
|
Food, beverage and other
|
|
6,174
|
|
|
6,489
|
|
|
(315
|
)
|
|
(4.9
|
)%
|
|||
Real estate taxes
|
|
49,148
|
|
|
41,138
|
|
|
8,010
|
|
|
19.5
|
%
|
|||
General and administrative
|
|
64,988
|
|
|
64,546
|
|
|
442
|
|
|
0.7
|
%
|
|||
Depreciation
|
|
81,267
|
|
|
82,585
|
|
|
(1,318
|
)
|
|
(1.6
|
)%
|
|||
Total operating expenses
|
|
$
|
257,696
|
|
|
$
|
253,402
|
|
|
$
|
4,294
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
Percentage
|
|||||||
Three Months Ended September 30,
|
|
2016
|
|
2015
|
|
Variance
|
|
Variance
|
|||||||
Interest expense
|
|
$
|
(52,880
|
)
|
|
$
|
(31,226
|
)
|
|
$
|
(21,654
|
)
|
|
(69.3
|
)%
|
Interest income
|
|
481
|
|
|
581
|
|
|
(100
|
)
|
|
(17.2
|
)%
|
|||
Total other expenses
|
|
$
|
(52,399
|
)
|
|
$
|
(30,645
|
)
|
|
$
|
(21,754
|
)
|
|
(71.0
|
)%
|
|
|
|
|
|
|
|
|
Percentage
|
|||||||
Nine Months Ended September 30,
|
|
2016
|
|
2015
|
|
Variance
|
|
Variance
|
|||||||
Interest expense
|
|
$
|
(132,217
|
)
|
|
$
|
(90,373
|
)
|
|
$
|
(41,844
|
)
|
|
(46.3
|
)%
|
Interest income
|
|
1,652
|
|
|
1,761
|
|
|
(109
|
)
|
|
(6.2
|
)%
|
|||
Total other expenses
|
|
$
|
(130,565
|
)
|
|
$
|
(88,612
|
)
|
|
$
|
(41,953
|
)
|
|
(47.3
|
)%
|
|
Payments Due By Period
|
||||||||||||||||||
|
Total
|
|
Remainder of 2016
|
|
2017 - 2018
|
|
2019 - 2020
|
|
2021 and After
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Senior unsecured credit facility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Principal
|
$
|
1,290,000
|
|
|
$
|
—
|
|
|
$
|
465,000
|
|
|
$
|
—
|
|
|
$
|
825,000
|
|
Interest
(1)
|
170,278
|
|
|
10,954
|
|
|
88,328
|
|
|
61,060
|
|
|
9,936
|
|
|||||
4.375% senior unsecured notes due 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal
|
550,000
|
|
|
—
|
|
|
550,000
|
|
|
—
|
|
|
—
|
|
|||||
Interest
|
60,156
|
|
|
12,031
|
|
|
48,125
|
|
|
—
|
|
|
—
|
|
|||||
4.875% senior unsecured notes due 2020
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal
|
1,000,000
|
|
|
—
|
|
|
—
|
|
|
1,000,000
|
|
|
—
|
|
|||||
Interest
|
219,375
|
|
|
24,375
|
|
|
97,500
|
|
|
97,500
|
|
|
|
||||||
4.375% senior unsecured notes due 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Principal
|
400,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
400,000
|
|
|||||
Interest
|
86,868
|
|
|
8,118
|
|
|
35,000
|
|
|
35,000
|
|
|
8,750
|
|
|||||
5.375% senior unsecured notes due 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Principal
|
500,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500,000
|
|
|||||
Interest
|
201,563
|
|
|
13,438
|
|
|
53,750
|
|
|
53,750
|
|
|
80,625
|
|
|||||
5.375% senior unsecured notes due 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Principal
|
975,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
975,000
|
|
|||||
Interest
|
522,171
|
|
|
24,311
|
|
|
104,813
|
|
|
104,813
|
|
|
288,234
|
|
|||||
Capital lease obligations
|
1,313
|
|
|
26
|
|
|
220
|
|
|
242
|
|
|
825
|
|
|||||
Purchase obligations
|
354
|
|
|
220
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
525,675
|
|
|
2,178
|
|
|
17,288
|
|
|
15,724
|
|
|
490,485
|
|
|||||
Other liabilities reflected in the Company's consolidated balance sheets
(2)
|
458
|
|
|
458
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
6,503,211
|
|
|
$
|
96,109
|
|
|
$
|
1,460,158
|
|
|
$
|
1,368,089
|
|
|
$
|
3,578,855
|
|
|
(1)
|
The interest rates associated with the variable rate components of our senior unsecured credit facility are estimated, reflected of forward LIBOR curves plus the spread over LIBOR of 175 basis points. The contractual amounts to be paid on our variable rate obligations are affected by changes in market interest rates and changes in our spreads which are based on our leverage ratios. Future changes in such ratios will impact the contractual amounts to be paid.
|
(2)
|
Primarily represents liabilities associated with reward programs at our TRS Properties that can be redeemed for free play, merchandise or services.
|
|
Total Amounts Committed
|
|
Remainder of 2016
|
|
2017 - 2018
|
|
2019 - 2020
|
|
2021 and After
|
|||||||
|
(in thousands)
|
|||||||||||||||
Letters of Credit
(1)
|
$
|
855
|
|
|
$
|
855
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
$
|
855
|
|
|
$
|
855
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
The available balance under the revolving credit portion of our senior unsecured credit facility is reduced by outstanding letters of credit.
|
|
|
10/01/16-09/30/17
|
|
10/01/17-09/30/18
|
|
10/01/18-09/30/19
|
|
10/01/19-9/30/20
|
|
10/01/20-09/30/21
|
|
Thereafter
|
|
Total
|
|
Fair Value at 9/30/2016
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Long-term debt:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fixed rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
550,000
|
|
|
$
|
—
|
|
|
$
|
1,400,000
|
|
|
$
|
1,475,000
|
|
|
$
|
3,425,000
|
|
|
$
|
3,643,750
|
|
Average interest rate
|
|
|
|
|
|
|
4.38%
|
|
|
|
4.73%
|
|
5.38%
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Variable rate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
465,000
|
|
|
$
|
—
|
|
|
$
|
825,000
|
|
|
$
|
—
|
|
|
$
|
1,290,000
|
|
|
$
|
1,283,165
|
|
Average interest rate
(1)
|
|
|
|
|
|
|
3.53%
|
|
|
|
3.71%
|
|
|
|
|
|
|
|
|
|
|
Exhibit
|
|
Description of Exhibit
|
|
|
|
10.1*
|
|
First Amendment to the Master Lease, dated August 29, 2016, by and among Gold Merger Sub, LLC (as successor to Pinnacle Entertainment, Inc.) and Pinnacle MLS, LLC.
|
|
|
|
10.2*
|
|
Third Amendment to the Master Lease Agreement, dated as of September 20, 2016, by and among GLP Capital L.P. and Penn Tenant, LLC.
|
|
|
|
31.1*
|
|
CEO Certification pursuant to rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
|
31.2*
|
|
CFO Certification pursuant to rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
|
32.1*
|
|
CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2*
|
|
CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101*
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, (ii) the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015, (iii) the Condensed Consolidated Statement of Changes in Shareholders’ (Deficit) Equity for the nine months ended September 30, 2016, (iv) the Condensed Consolidated Statements of Cash Flows for nine months ended September 30, 2016 and 2015 and (v) the notes to the Condensed Consolidated Financial Statements.
|
|
*
|
Filed or furnished, as applicable, herewith
|
|
GAMING AND LEISURE PROPERTIES, INC.
|
|
|
|
|
November 9, 2016
|
By:
|
/s/ William J. Clifford
|
|
|
William J. Clifford
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
Exhibit
|
|
Description of Exhibit
|
|
|
|
10.1*
|
|
First Amendment to the Master Lease, dated August 29, 2016, by and among Gold Merger Sub, LLC (as successor to Pinnacle Entertainment, Inc.) and Pinnacle MLS, LLC.
|
|
|
|
10.2*
|
|
Third Amendment to the Master Lease Agreement, dated as of September 20, 2016, by and among GLP Capital L.P. and Penn Tenant, LLC.
|
|
|
|
31.1*
|
|
CEO Certification pursuant to rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
|
31.2*
|
|
CFO Certification pursuant to rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.
|
|
|
|
32.1*
|
|
CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2*
|
|
CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101*
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Balance Sheets at September 30, 2016 and December 31, 2015, (ii) the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015, (iii) the Condensed Consolidated Statement of Changes in Shareholders’ (Deficit) Equity for the nine months ended September 30, 2016, (iv) the Condensed Consolidated Statements of Cash Flows for nine months ended September 30, 2016 and 2015 and (v) the notes to the Condensed Consolidated Financial Statements.
|
|
*
|
Filed or furnished, as applicable, herewith
|
|
LANDLORD:
|
|
|
|
GOLD MERGER SUB, LLC
|
|
By:
/s/ Brandon J. Moore
|
|
Name: Brandon J. Moore
|
|
Title: Secretary
|
|
|
|
|
|
TENANT:
|
|
|
|
PINNACLE MLS, LLC
|
|
By:
/s/ Carlos A. Ruisanchez
|
|
Name: Carlos A. Ruisanchez
|
|
Title: President and Secretary
|
By:
|
/s/ William J. Clifford
|
By:
|
Penn National Gaming, Inc.
|
November 9, 2016
|
/s/ Peter M. Carlino
|
|
Name: Peter M. Carlino
|
|
Chief Executive Officer
|
November 9, 2016
|
/s/ William J. Clifford
|
|
Name: William J. Clifford
|
|
Chief Financial Officer
|
|
/s/ Peter M. Carlino
|
|
Peter M. Carlino
|
|
Chief Executive Officer
|
|
November 9, 2016
|
|
/s/ William J. Clifford
|
|
William J. Clifford
|
|
Chief Financial Officer
|
|
November 9, 2016
|