GLPI - Earnings call transcript Q1 2018 | Gaming and Leisure Properties, Inc.

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Operator

Greetings, and welcome to the Gaming and Leisure Properties' First Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Hayes Croushore. sir. ahead go Please

Hayes Croushore

Relations press and joining everyone. and us XXXX webcast. first Stacy, is this thank our Private statements available forward-looking the Leisure of management's in www.glpropinc.com. the like you quarter call, Litigation website as On Reform XXXX. contain The Investor in and remarks call for questions and today may earnings at today's distributed Securities Act prepared answers good you, section earlier of to your We'd morning morning, to Properties' release Thank for defined Gaming

to Forward-looking results and non-GAAP financial statements guidance, address discussed statements matters that as from revenue, such differ measures related that are today. actual financial and subject operating cause those well of AFFO. and forward-looking risks include as may as those FFO Examples uncertainties to to income

Snyder, review to current and And morning's As and and encourage any statements Carlino, a Accounting Counsel General now Vice conference and filings of in estimates Chief the earnings to Clifford, Steve the Senior Executive Chief SEC in Also contained President Secretary. we Gaming with Inc. related Burke, Chairman Financial of the Moore, statements company's the to Desiree Peter? reconciliations Carlino. Officer; company's and joined call, Senior contained I'd call this definitions company to by turn Officer; Vice are more are release. represent forward-looking and over Peter joining Officer in We update Chief statements Development; financial and no obligation and Bill Brandon Peter Leisure to like measures these President, non-GAAP forward-looking the Properties, the the reminder, On future. of forward-looking the detailed discussions management's assumes listeners

Peter Carlino

Well, and morning, good everyone. thanks Hayes,

very soft properties in weather that that January there earnings a and I’ll look portfolio able comment We horrendous expect thrilled little transaction things of expectations. signing are good with are we be more had are some with couldn’t obviously in to great our Tropicana to announcements tracking too well appear of of properties and We ahead. our line were and Gaming which transaction happy Boyd acknowledge that. our report we inline the was we ElDorado TRS although those are revenues just addition more ranks be terrific, about have is strong new quarter, operator that our and largely a due we identified to better again operator been to course will and I’ll Penn February – the stronger a excited with to to welcomes and along report had a resort that’s just terrific which with operators Pinnacle a into be as

third and would close year the expect say transactions of say, that We a better. those company to that of think both I year XXXX XXXX even suggests to very should for predictably and be strong be this quarter very

So that. very good we’re very feeling about

of Clifford that who that everything National and movements be well. the a my left includes company, sitting all Bill years. that retiring. Another been been make you’ve is part seen has here to I’ll have Snyder, is Steve this as has Bill Penn significant longer, the release comment in Only we done the over will major that

of a time that that and we decision us been that led produced time Penn was long properties part much and in with that those that has and then who Gaming individual and this effort terrific Penn, time. built value and for a shareholders from enormous to years of have So, a company period form over very at

transition and over with It fast It’s comes want to and stick through while look though, some going with and us oversight this terrific. I So to thought we period just Bill much. acknowledge goes provide very I you present know thanks it for officially next as he’s fast – Bill been years very that back. I and so months, the the

is this from comment the to any to going and with strong I’m I go I there’s your as unless a we report So, that, table we’ll think think usually questions do. other straight here,

please floor. operator, So open the

Operator

Thank you. ahead. Morgan Allen question Our [Operator Please first Thomas Instructions] comes go Stanley. with from

Thomas Allen

all Hi, good on morning and and good help years luck over retirement. Bill the thanks for the

Bill Clifford

you. Thank

Thomas Allen

just bit we you know talk how about a it about deal? came of the elaborate just your can you bit expectations how process little So Tropicana the forward? little going and kind Can together; a worked

Steve Snyder

but and we large oil and entertainment able Tropicana and and the the entered the into results in based shareholder Steve. quite the this to going being to approach Yes, transaction but folks, for Isle an really space. Eldorado so their identified or a we of trying the they’ve exclusivity in its of an jointly we property it’s I develop and drive expect obviously terms quarters, -- that and so with portfolio they years management transaction. Thomas, relationship. diligence, I we a an been spent opportunities -- publicly gaming a we the years ElDorado their say and the completed several traded, to without was both folks bit opportunities recently single the on They with they Most cultivate working to approach. out had see due what jointly their collectively [Indiscernible] I a focused a opportunity the be controlled with shareholder, with on sale-leaseback in consolidator OpCo/PropCo because existed conducted period by approach regional discussions performance other time Tropicana of around approached around them continue to Tropicana, really been

of to as the think they facilitate said continue are Tropicana they their look margin ways as in on the they their is phone improvements enhancements do growth. optimistic terms Carano the portfolio, opportunities very and So in as OpCo/PropCo to of opportunities Gary said and Tom at and call, I for performance

look outcome the of the led the that really So the of at to several you announcement developing is since April that quarters XX-day intense an relationship that announcement. year with XX you saw a beginning should on period of

Peter timing, mentioned the will this year. this close later to think As we

year-end I it’s already Tropicana probably new gone the think a of with New and are closing, the exactly we’re Indiana two because for forward -- submission they’ve for their states Jersey reasonably doing and same. and ElDorado applications

pretty So we close, before will year-end. optimistic a should are that transaction close that is this or

Thomas Allen

Isle you and what Thanks. mentioned have then with talking too, around to around transaction deal Helpful. back you them a too. held the transaction And you happening, I Isle mean the been

Steve Snyder

decision any transaction with so was Eldorado. something were time, not that really was comfortable that them they to decided that Isle they took with a the It speak Isle extensive with about just made in that equity on we dilution transaction. at the in and we again engaged didn’t No, go specifically alone. a of they existing were They behalf dialogue it obviously that shareholders that

Thomas Allen

helpful. you. Thank Okay,

Steve Snyder

Thank you.

Operator

Thank you.

comes question next from with ahead. Our Deutsche Santarelli Carlo Bank. go Please

Carlo Santarelli

experience, Bill or from, Thank you etcetera? looking and you you from new experience very about for about background an congratulations. and bit or, looking more a candidate would more as that you you’re what of a for, think REIT Peter, little gaming could be the CFO you talk are of of criteria a much, kind M&A some kind

Peter Carlino

to that’s tough all a – question with, probably that’s Well start both.

way are it going at, that world, helpful, precisely clearly on like what is gaming finance of couple are we now why You what business we properties have that’s so world. happily, the to we and fundamentally but the gaming to that’s It not legs still is in finance dealing the into look do we a the to ourselves, going operate of announced looking three the in but One, are we know We’d we’re we capital we and with that’s is think the something do who’s I of really company at do. market as stool. the focused business. atleast are end a kind

clearly I think, and and that REIT, I be world we that so are we probably a you would the fairly REIT going world So knowledge more ask doubt that, some question, to having since look think no REIT at in that’s experience about broadly, helpful. are

and it see is in general a answer guess perverse, the the we is the I it. know know think view above. above you All So we’ll when the all I

Carlo Santarelli

Understood, a and little coverage of terms from decision Tropicana to with stuff the how success the of you than had go Atlantic synergies of guaranteed much know respect new And obviously minimum the transaction, lower times given helpful. That’s to the the of in has rent coming City by some you. ERI with with that XX bit then your etcetera? just a there’s decision assets generating to escalator, competition some thank deals was some X.X times fueled other that

Peter Carlino

it of deal very speak confidence influence that these to Steve. much but that, gut let our have Steve we folks. fundamentally great a with And did in Yes,

Steve Snyder

portfolio. terms five the it Tropicana we Boardwalk, spoke that City Yes, comfortable were large says steps around escalator. comfortable the times anniversary, hear through X,X up are X.X will for times, you the but on that are on with that the of in property have so the They openings impact with our to speaks optimistic of and fifth that in opportunities with course and cut volumes when because not getting rent volumes guarantees comfortable guaranteeing subject construct Carl, putting we the X% escalators they very the of lease tenants the your Atlantic default, base that you, in improvements margin in coverage, that years

our to in So, conditions willing is rock they table the impact on lease. completely of in might of that what the stipulations the revelry I’m the be with not but tenant proof we of those openings, you agreed those hard the terms to and put or the tell in going in terms what were

Peter Carlino

experienced long been in competitive highly are They These a markets time. this have add. business for very very me let Yes, people. around

think forms judgment that I our of as well. So, it Steve part

Steve Snyder

comfortable decades couple they hits Peter. that’s competed spot that on, that, mean with. were competing it think and familiar know, competition. These I that we markets they are how last know markets and having No, are for were these of to they the in I handle

Carlo Santarelli

so much Thanks, Great. guys.

Operator

Thank you.

ahead. Joe JPMorgan. go Please from comes question next Our with Greff

Joe Greff

congratulations Good morning like to say well. would Bill to as everybody I and

You’ve you right in I’m the of sets you’ve [Indiscernible]. with look acquisitions -- there been just forward busy and…. obviously Are now com. and – on a mode your to things had these migrate pause close career They two until on the front. great working and of kind until acquisitions seeing index continue to

Steve Snyder

question Joe, what kind of is that.

I on Never, make, good make many pause if feel out we alive me you then in mode. many there but the keep about looking the and you’ve never as do. stock years. say the this kidding. looking our nothing like transactions and be are it my that the we is I that the you that breathing, to it’s time, we particularly on I are to as goes powder challenge. that at finally to the can is, And, know it. always But, business finance count but few you prepared are we is dry fact and want are very all got you’ve view always Look, be many to look so are to the kind a And say it’s many of called over -- and chosen. comment, mean heard changes. aggressively in general answer, We times we

Joe Greff

have issue month it. under any share ATM press And referenced did count you the you this all? the obviously Got release, in then at equity

Desiree Burke

we not. No, did

Joe Greff

very much. you Thank

Steve Snyder

you. thank Well

Operator

Please Our question of Bank with America. Kelly comes Sean go next from ahead.

Barry Jonas

this Hi, Jonas. Barry is

Peter pleasure a your begs general working operating think First with for you. in planning? been succession off, the continuing an guess, atleast question, timeline you’ll I about thoughts curious any role, Bill on own it’s how congratulations,

Peter Carlino

know over you now but and when fun. are me tough that judgement way grown Listen, and see highly of right come you will are business in a isn’t we I look you effective kind anywhere maybe as a question, question. we time. the go a has That’s the having my long case, we long this be effective for as I’ll I’ll day very do asked can this feel the since the don’t much years, too

Barry Jonas

or variable release. just it’s terms master of guess what maybe years? of just rent details will Fair in of subject reset, years question the ElDorado how escalator the give I then a to will be more two sort enough. Thanks. whether be, can on much timeline And the few total rent that five and one you the

Peter Carlino

will be based Yes, of portfolio, to months two to subject closing existing terms years the Pinnacle Lease of of the XX% -- base it’s the set at prior that Master revenues two and in It every be with to the in versus XX should escalator. the be going closing. terms you variable on would rent reset phase X% think of in range components plus the consistent XX-ish

Barry Jonas

very Thank much. you Great.

Desiree Burke

is the best-- we fixed base clarification, escalators second yet, of do portion about numbers so escalators round base usually rent their only not land the -- set of the portion we the Just on but which the probably only those half the haven't that, of the the rate. our fixed on

Barry Jonas

approximately be would or the than it XX% So that? XXX less of

Desiree Burke

than it’s be than would less less the escalators that. No. that, some but of

Barry Jonas

Understood. Thank you.

Operator

with Our next question Patrick Robinson Please from ahead. Humphrey. SunTrust Scholes comes go

Patrick Scholes

you Hi. Good morning. on that mind I past why forward? that recall market bit the your on Question you've City, your little is been market. going and now for Atlantic changing cautious on thoughts in somewhat as Talk just entering

Peter Carlino

with Well, we're dealing the partners.

flow owners cash invested more property. over condition. would in years that. the great It's appear I folks do who you and a of The that. great improving invested the deal those terrific that think will their deal. Steve, a on comment broadly we It explain likes

Steve Snyder

No. Yes.

percent As flow that the Tropicana way it, sellers the if owned of that you driving of be free in gotten to be aggregate XX-ish Atlantic mean, reinvested in we'll that the portfolio being I market. a out they've they've Atlantic and of they've going we've the City. looked City out coming quite over tenant Eldorado our the all years from indicated bit at that rent the is new of just it at that look cash properties approximately of

portfolio But comfortable this improve tenant comparable in City answer that were get their concentration on of portfolio this it nature Would as we in with the sort think a the So know and Atlantic do see able other not. proceeding the I absolutely that, they at you with a experience the own we do markets given Tropicana the of to look opportunities performance we to lease? of really its City. Atlantic operating as some transaction. standalone across diversified

Peter Carlino

Yes.

informed it who think about thinking it, I a it's clearly lot you and start about here about good with that dealing feel are more says Eldorado we when judgment, our that.

Patrick Scholes

color that. Louis in shifting getting might for there regulatory of thoughts on gears And in over be Thank was I you the that regard? markets, the there some weekend know have article St. here; for then Post-Dispatch any Okay. an if don't risk suggesting the approved you that somewhat

Peter Carlino

you. We do and to going Brandon tell is

Patrick Scholes

Okay.

Brandon Moore

Those went on the optimistic same us going in that as to market lease Louis we're our and reason. present and just in leases a finishes we're markets we're anti-competitive transaction certainly on lease obviously impact the I the level, and very that confident the deal that to publicly confident say state permit Pinnacle basis level four and competition, our article in-depth for at and in in still particular and market. federal and that in at this through very review we those if market traded in we're that opportunity And Pinnacle regulatory we're but operators that have market be pretty deal market forma a saw competition think on the for in our we wouldn't the of fine. in of We at look impact publicly currently traded to and any St. pro look three effects thereof we'll have in Yes. level other that operators if even I as lease market you or don't the we any us the or deal don't confident any all. lack

us that to come those that in So conclusion conversations they any don't as these present the impact the get to leases too competition we opportunity through have when we're state. pretty process we will the confident that same

Patrick Scholes

all. much. That's very you Thank Okay.

Operator

question ahead. Robin next Please comes Farley UBS. with go Our from

Robin Farley

values? different that's just a Thanks. about are and transaction is time if another more more have in between. that words maybe enough there's significant It expecting been Or want talked yourself, expect maybe at there elevated you previously year transactions seems established now? just generally. know something ask the multiples pace activity and aside understanding this in market about I have transaction like and you the of level do be lumpy there's now, to market to think stay activity that to Thanks. better just – about I and you Do sellers the been you increase you've little transactions something from

Peter Carlino

spin mean, I dear been and growing going we've sure happily knew. kind going as AFFO able our we out We for look at personal Robin, to not my I do able as anything forth. could managed I'm never come to and job. always transactions and incredible at But in eke market. heart and to and nonetheless has I told wish we've and have being from to of real I look you have its been it's we've think we in so have answer an any Yes, dividends But or willingness where we I to terrific. where the near -- what done talked changed that. about sellers materially lumpy have we're be I the it do transact. don't predicted owners and much same. expect to unpredictable

out You out. it kind falls of know, when it falls

question United you're that the I pretty at of that of that transaction by to to around something doing mostly though estate owned soon going and Read, have back with owned sensitized handful, I the change. the St. the pricing a That of. the I possibility least more that a may You States handful and don't well sense aware people is be rate to small Louis think expect as are occurred. correct by that real And think companies

not is and going some I can't that pattern trend to as predictability, do that. So backward. we it’s say a But

Robin Farley

six months coincidentally you're level like couple versus an sounds of discussions the of is things timing, just of not sort ago, having this year? it it now elevated So

Peter Carlino

Steve, would want that? you to how characterize

Steve Snyder

risen. to Robin, think I evaluation No, your point have

expect Our of in fearful yes, ago stakeholders you're think for sector to more are with you are a in but in our I year been the going at are look of than that upward risk. terms reads. our that frequent seen that announced, and kind the taking gaming transactions of has Interest you the competitor of approached way we rates may trending a people transactions are inordinate that. consistent business place I of new with should introduction be past are had other of it stick rather there suggest, would terms and dialogues the we've seeing accretive that any taking

I So, at that. would leave just it

Robin Farley

Thank you. great. Okay,

Operator

next Our Massocca John from with question comes go Thalmann. Ladenburg ahead. Please

John Massocca

First off, retirement. Bill congratulations on

William Clifford

you. Thank

John Massocca

get various you then given have debt of you viewing what and the speaking markets? are kind looking relative at of capital movement maybe the kind balance maturing up generally lined year, you you existing this are And rates? can sheet, how acquisitions given you have And in kind versus pricing underlying the you later debt debt think do of the

William Clifford

about to debt to sheet and market incremental company's No. up. get has here closing the looking senior do John, QX. we balance the you should term on think as and to closer positioning fund take near sub got they maturities the Obviously online, us QX they come at ticked that to as the acquisitions

ticked our bonds impacting that's access our at guidance, the than or level issue form in You yield but new with secondary in premium. that got market the a we've don't are the curve trading reflected ability fairly capital capital markets to our way markets toward see shape any the in where other we LIBOR up consistent

So envision obstacles. any I don't

on indication, the no of rating reports in and they'll no from a of company made that the been And pretty transaction in the indication outlook there's this going result have seen always terms You've time. Tropicana/Eldorado the movement their case as agencies changed. goal our at as that and rating credit to any we're remain conservative in point underlying the make never had they've

John Massocca

your where relative Is versus any expect increasing Understood. given your expense sacrificing – your kind longer be interest debt be I debt. could you process but the thought how getting was to bit of acquisitions accretive debt? of there little and little of on lengthening maybe existing more term interested kind pricing potentially on a in these out relative on term pricing maybe

Peter Carlino

No.

is market a consistent I in and stack ladders looking sort sort has looks the be any when of think like at, any debts out would debt -- that at any for market. risk. that asked don't us spikes that we conditioned keeping huge yes, the market capital to undue the of in we're stack years capital [ph] faced our expose were a our board in something market that duration of have longer But our on look the so take with what

William Clifford

being not I'm not science. cubed. Yes, Its rocket

to be I would allows. recognize period smooth could goals think you that out time over a as this longer and what is our of pricing

clear yes, we're be So of have of to there. we I sense where we and think get want think pretty to going I a

Peter Carlino

anticipated those guidance the And announcement. the we transactions from in accretion reflected that we gave impacts in the XX April on the

John Massocca

then bit. gears And a of Understood. little kind shifted

included Tropicana it just lease at factors driving Eldorado deal, that decision? kind the in MontBleu with underneath Lease the of there other ground because were Looking of not or Master with

Peter Carlino

in did of just and relative get and scope it the trouble underlying involved I than the was transactions we not MontBleu owner Tropicana and that ground want given the something overall were lease try to here. of is getting as we land to ground leases we've just really we and of other transaction that did leaving enough it simple No, facility assignments lease And scale more behind. mean, consents had a MontBleu comfortable lease, rather a that.

John Massocca

me. it from much. That's Understand. Thank very you

Peter Carlino

you. Thank

Operator

Our Andrew Please next question comes Instructions] Berg ahead. go Post from with [Operator Advisory.

Andrew Berg

Yes.

all, one and they I on echo your comments to are can Bill of with off of respect best luck congratulations retirement. First

regarding senior refinancing unsecured? made did actually senior you mean senior said sub-debt, – you comment debt did mean sub, the to respect refinancing With missed. be definitely You’ll potential you

Peter Carlino

Senior unsecured.

Andrew Berg

Okay.

with the here? then that that tone bit to And that while assets respect seeing. the for market levels dynamics wondering that little a that time you're for more bumped changed with at now Just the little being all competitive to been a been? VICI's bit that. out conversation clarify little maybe to in of Is now more competition with want longer. changed it up Has Just whether than even the the had respect bid that

Peter Carlino

Well, they're like and happier we'll and got going do never much but one, by to better have the we just here ourselves, what wait circumstance, going see In how not them plays been, share experience shoulders out. may may at over their they life even transactions. not my it has looking to They'll so look we're thinking we were we do. win of look what they're or our or

We Deals expect happen different reasons we'll for ours. price win sometimes. even beyond

yes, think early going mean I it's too go. So to know this to is I how

it Let's out the see over plays year. how next

Andrew Berg

great. Thanks long look seen Okay, and again time, for I have Peter. forward. you

Peter Carlino

you. thank Well,

Operator

turn There I to are for Peter closing the over like further no to call comments. questions. would

Peter Carlino

thanks a be a We're great like today. looks a Bill to good the this -- next this up thanks year. transition. kind wishing for couple be make of year, XXXX smiling, year, appreciate to in his listen, Look, a going everybody help good months dialing over is very very farewell lines as and Well, we good of to

I'm So goals the spin at a quarter. every hope when we're and and are good did look many shape. out is well. here. the being we dividend met at of we I what's on guy great Company you feel excited as pretty very the in happy collects are I who beginning going that that set shareholder this about and the

quarter. next you See lot. a thanks So

Operator

Thank teleconference. for you participation. your today's concludes This

your at disconnect this may time. line You

Gaming and Leisure Properties (GLPI) 25 Apr 182018 Q1 Earnings call transcript