Gaming & Leisure Properties, Inc. Q4 FY2024 earnings call

• Peter Carlino noted a strong quarter despite difficult projections, emphasizing commitment to the gaming space for long-term cash flow.
• Desiree Burke detailed income from real estate drivers, operating expenses, and development property accounting.
• Matthew Demchyk spoke about the company's strategy rooted in conservative financial approach, tenant relationships, and focus on driving long-term intrinsic value per share.

For the fourth quarter of 2024, total income from real estate exceeded the fourth quarter of 2023 by over $20 million. This growth was driven by increases in cash rent of over $20 million from acquisitions and escalations. However, non-cash revenue gross-ups, investment and lease adjustments, and other adjustments led to a collective year-over-year decrease of $2.3 million. Operating expenses increased by $7.7 million mainly due to non-cash adjustments in the provision for credit losses. For development properties, interest is capitalized and deferred rent received during development is accounted for, but adjusted in deriving AFFO.

• Full-year guidance for AFFO per diluted share in OP units ranges from $3.83 to $3.88, not including future transactions.
• Anticipates approximately $400 million for development projects in 2025 and expects to settle forward sale agreements in June 2025.
• Guidance considers timing of forward share settlement, development funding timing, interest expense assumptions.

• Uncertainty in project funding timing as funds drawn by tenants may cause lag in company reimbursement.
• Variable rate debt exposure and potential impact of market/regulatory changes on business operations.

Q: $400 million of fundings this year is maybe a little less than expected. Can you break down the figure by project and talk about timing slippage?

A: Desiree Burke said $400 million is total, big chunk is Chicago project, and timing lag due to tenants putting money out first then company reimbursing. Peter Carlino said projects are underway but pace can't be determined exactly.

Q: Talk about positives or negatives from Bally's Casino Queen deal being closed.

A: Peter Carlino said it's all positive, Matthew Demchyk added it gives the company newfound consideration and valuation, expands relationship with Bally's Q: Comments on pipeline and rate environment impact on conversations A: Steve Ladany said broad scale M&A transactions not picked up due to rate environment, but broader market active with various discussions ongoing Q: Talk about pipeline for co-investment with Cordish and equity opportunities A: Steve Ladany said continue dialogue with Cordish, view New Hampshire project as successful but respect current partnership Q: Questions on development funding, Penn agreement, Rockford loan amendment, etc.

A: Various responses from Desiree Burke, Matthew Demchyk, Brandon Moore on details of funding, Penn agreement context, Rockford loan amendment reasons