Gaming & Leisure Properties, Inc. Q1 FY2025 earnings call

Peter Carlino discussed the Chicago project being well underway with 272 out of 331 caissons installed, steel expected in July. Steve Ladany talked about ongoing dialogues with tenants. Matthew Demchyk emphasized balance sheet strength at 4.7 times annualized net debt to EBITDA and long-term focus. Desiree Burke provided financial guidance details, including full-year 2025 guidance range and funding expectations for development projects.

For the first quarter of 2025, total income from real estate exceeded the first quarter of 2024 by over $19 million. Cash rent increased by over $26 million from acquisitions and escalation, with specific acquisitions like Valley Chicago Land contributing $5 million, Tropicana $1 million, etc. Non-cash revenue elements like gross-ups and adjustments partially offset these increases, resulting in a collective year-over-year decrease of approximately $7.6 million. Operating expenses increased by $18 million mainly due to a non-adjustment in the provision for credit losses.

Updated full-year 2025 guidance ranges from $3.84 to $3.87 per diluted share in OP units. Reduction in the high end of guidance is due to assumption of no escalation on the Pinnacle lease. Guidance includes anticipated funding of approximately $35 million for development projects and expectation to settle forward sale agreements in June 2025.

Potential delays in projects like Chicago due to complexities and approvals. Macro-economic uncertainties affecting counterparties' decisions. Regulatory changes impacting gaming trends and potential new supply affecting existing properties.

Q: Just curious on the expectation to build out from this point forward, is it basically just assuming that there's kinda no other complications?

A: Things are well underway but delays are always possible, but monitoring is in place.

Q: Has anything changed in terms of know, what you might want in terms of a yield now versus even, like, a month or so ago?

A: Counterparties seem more interested in talking now due to market gyrations, but transactions not guaranteed.

Q: How will the accounting for the Penn commitments if they when or if they're done is that gonna be similar to a loan or what you're doing on the development side?

A: Depends on timing of when Penn takes funding, will be similar to development accounting if taken during development period.