GLPI
Investor Presentation
November 2024
Confidential - For Discussion & General Information Purposes Only
Gaming & Leisure Properties, Inc. Overview
GLPI is a REIT that owns a Geographically Diversified Portfolio of High-Quality Regional Gaming Assets
Fast Facts 1
66
20
Properties
States
29.0M
6.4K
14.9K
Property Sq.
Acres Owned or
Hotel Rooms
Footage
Leased
Snapshot
High-Quality, Nationwide Portfolio of Premier Gaming Assets
Sources: Company Filings and CoStar. Market data as of 11/15/2024. 1. Represents GLPI's owned property metrics as of 9/30/2024. Announced Bally's investments Kansas City, and Shreveport not included given closing hasn't yet occurred.
3
High Quality Real Estate Portfolio
The quality and relevance of our portfolio is demonstrated by the solid property performance of our market leading properties:
A
Ameristar Black
Hawk1
#1 Casino in Colorado
B
Ameristar Kansas City #1 Casino in Kansas City
C
Ameristar St. Charles #1 Casino in St. Louis
D
Hollywood Casino
Toledo
#1 Casino in Toledo
E
Hollywood Casino
Columbus
#1 Casino in Columbus
Charles Town
#1 Casino in WV
#1
A
B
#1#1 #1
C
#1 H
#1
I
#1#D1
E
#1
#1 G
F
Denotes #2 ranked casino in respective market
Denotes a property with no competitor within 60 minutes
Sources: Company filings and State gaming commissions. Note: Based on 2023 annual gaming revenues as reported by each respective gaming commission. Market is defined
as a 60-minute drive time. Number of gaming positions is used to rank properties in states that do not report property level gaming revenue (MS, NV, CO, NM). 1. Gaming
4
revenue is not reported by property in these states.
Strength & Durability Through Diversification
Diversification across states / licensing jurisdictions is a key factor in ensuring the durability of our cash flow. Our footprint across 20 states diversifies our portfolio across the country.
Represents GLPI's owned property metrics as of 9/30/2024 per Company Filings.
Announced Bally's investments Kansas City, and Shreveport not included given closing hasn't yet occurred.
Penn Entertainment
Queen Casino & Entertainment
Boyd Gaming
Caesars Entertainment
Bally's Corporation
The Cordish Companies
Hard Rock Rockford
American Racing & Entertainment
Strategic Gaming
5
Tenant Strength Enhances Cash Flow Durability
Our Major Tenants are Credit Worthy Public Companies with: Balance Sheet Wherewithal, Institutional Quality Operational Platforms, Extensive Experience, and Established Brands.
A leading U.S. regional gaming operator of 43 gaming entertainment properties across 20 states, with approximately $6.4 billion in 2023 revenue 1
Enterprise Value:
$13.6 Billion +2
Equity Market Cap:
$3.1 Billion +2
Enterprise Value:
$9.9 Billion +2
Equity Market Cap:
$6.4 Billion +2
A highly-respected operator
of a large and diversified portfolio of 53 domestic gaming assets across 18 states, with approximately $11.5 billion in 2023 revenue 1
Enterprise Value:
$32.6 Billion +2
Equity Market Cap:
$7.8 Billion +2
A growing and respected operator of a diversified portfolio of 17 gaming assets across 11 states, with approximately $2.4 billion in 2023 revenue 1
Enterprise Value:
$5.5 Billion +2
Equity Market Cap:
$700 Million +2
Master Lease payments are not subject to debt subordination or restricted payment limitations.
In order to cease Master Lease payments, we expect that a tenant would be required to reject the portfolio of leases via bankruptcy, vacate all leased properties, and participate in a sale process to transition the gaming license to a successor tenant.
Source: Company filings and Bloomberg market data. 1. Descriptive information from company websites or company sources, Bally's property count inclusive of development projects near State College, PA and Chicago. 2. Market data as of 11/15/2024.
6
Superior Master Lease Characteristics
Lease Characteristic
GLPI Checks All the Boxes
Achieves High
Occupancy Rate
• GLPI has operated at 100% occupancy since inception
• Master lease requires tenant to sell all operating assets and relinquish gaming license to new tenant
Minimizes Period a
Vacated Property
•
In the event a tenant does not elect to renew a lease, lease mechanics provide a time frame for tenants to sell their
Remains with No Tenant
operating assets without disrupting the lease stream to GLPI or the gaming tax revenue to the host state
Minimizes Period a
Property is Not Operated
after Lease Signing
•
Only a greenfield project would require a delay - all other leased properties have demonstrated no operational impact
• Casino remodeling is generally done in phases with limited impact to operations
Maximizes the Likelihood
that the Property
Remains Open in a
•
State governments are incentivized by tax revenue and employment to help casinos stay open and operational
Downside Scenario
All or None Terms Protect Against Cherry Picking
Uniquely High Level of
Transparency
•
GLPI reports rent coverage metrics to provide a clear indication of tenant credit quality
• Certain state jurisdictions report gaming revenue performance monthly
GLPI's assets and lease terms provide significant stability of rental income
Sources: Company Filings 1. The Boyd Corporation master lease does not have a parent guarantee but has a higher default coverage ratio of 1.4x as well as a subsidiary
guarantee by entities that operate the properties. The Cordish Companies leases do not have a parent guaranty, but each maintains a subsidiary guaranty by entities that
operate the properties.
7
Master Leases Offer Long-Term Stability
GLPI's Lease Terms Provide Enhanced Rent Stability & Protection Over Long Lease Terms
Amended
Amended PNK
2023
Caesar's
BYD
BALY
Queen
The Cordish
Strategic
PENN
PENN
PENN
Entertainment
Gaming
& Casino
Companies
Management
14
12
7
5
3
8
4
2
3
Property Count
9
8
4
2
6
3
1
2
Number of States
5
Next Renewal /
2033
2031
2033
2038
2026
2036
2036
2061
2049
Additional Renewal
15 years
20 years
15 years
20 years
25 years
20 years
20 years
21 years
20 years
Term
Guarantee from
Guarantee from
Corporate Guarantee
Master Lease
Master Lease
Subsidiary
Subsidiary
Default Adjusted
1.10x
1.20x
1.10x
1.20x
1.40x
1.20x
1.40x
1.40x
1.40x 2
Rent to Revenue
Coverage
Coverage Ratio at
2.19x
1.90x
1.94x
1.97x
2.59x
2.08x
2.24x
2.32x
NA
June 30, 2024 1
Sources: Company filings. Note: Belterra (Ohio), Horseshoe St. Louis, Tropicana Las Vegas (cross defaulted with Bally's master lease), Hollywood Casino Morgantown, Live! Casino
reached.
8
Commercial Casino Gaming Taxes are Critical and Depended Upon by States
State and local governments have a vested interest in the success of our properties. They rely heavily on gaming tax revenues to support their budgets
Illustrative Gaming Taxes, Year Ended 2023
Commercial
Direct
State
Gaming
Gaming Tax
Consumer
Revenue by
Spend ($M)
State ($M)
Pennsylvania
$5,864
$2,319
Ohio
$3,319
$929
Maryland
$2,496
$883
Michigan
$3,581
$821
New Jersey
$5,778
$691
Louisiana
$2,696
$603
Illinois
$2,523
$570
Rhode Island
$707
$357
Highest Stated Gaming Tax Rates by State 1
Nevada
6.8%
South Dakota
9.0%
Mississippi
12.0%
New Jersey
17.5%
Nebraska
20.0%
Colorado
20.0%
Arkansas
20.0%
Missouri
21.0%
Iowa
22.0%
Kansas
27.0%
Michigan
28.0%
Virginia
30.0%
Ohio
33.5%
Average
33.9%
Florida
35.0%
Louisiana
36.0%
Indiana
40.0%
Maine
46.0%
New Mexico
46.3%
Massachusetts
49.0%
Oklahoma
50.0%
Illinois
50.0%
West Virginia
53.5%
Pennsylvania
55.0%
Delaware
56.0%
Maryland
61.0%
New York
65.0%
Rhode Island
74.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Sources: State Gaming Commissions; American Gaming Association - State of States 2024; Fantini research; Wells Fargo Securities. 1. Includes states with land-based
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commercial casino gaming operations.
Demonstrated Durability of Regional Gaming Markets: GFC Case Study 2007-2010
GLPI's Regional Markets Have Proven More Profitable And Stable During a Major Downturn Than The Las Vegas Market
Gaming Adj. EBITDA Growth 1 (%)
Rent Coverage 1
PENN
PNK 2
Vegas 3
Vegas Adj.4
2007
2008
2009
2010
2007
0.00%
(1.30%)
2.0x
(5.00%)
(10.00%)
1.8x
(15.00%)
(17.00%)
1.6x
(20.00%)
(25.00%)
1.4x
(30.00%)
(35.00%)
1.2x
(40.00%)
(42.80%)
1.0x
(45.00%)
(47.10%)
(50.00%)
0.8x
PENN
PNK 2
Vegas 3
Vegas Adj.4
2008
2009
2010
1.9x
1.6x
1.1x
1.0x
Source: Company Filings. Note: Excludes corporate overhead and includes the impact from smoking bans and cannibalization. 1. Excludes BYD because BYD assets were owned
by PNK. Excludes Tropicana because it predominantly consisted of Atlantic City portfolio at that time. Assumes rent was at the same terms as existing master leases during the
10
time period shown. 2. Excludes St. Louis and Ameristar assets. 3. Includes Las Vegas assets for CZR, LVS, MGM (excluding City Center due to negative Adjusted EBITDA) and
WYNN. 4. Same as Vegas, adjusted to account for an assumed 4% cost of capital on $4.1bn of capital expenditures related to Palazzo and Encore.
Disclaimer
Gaming and Leisure Properties Inc. published this content on November 18, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 18, 2024 at 22:28:33.912.