Gaming and Leisure Properties (GLPI) has recently released its 10-K report, detailing its operations and financial performance. As of December 31, 2023, GLPI's portfolio consisted of interests in 61 gaming and related facilities, geographically diversified across 18 states and containing approximately 28.7 million square feet, all of which were 100% occupied. The company's primary business involves acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements.
In 2021, GLPI sold the operations of Hollywood Casino Perryville to PENN and leased the real estate to PENN pursuant to a standalone lease. Additionally, the company sold the operations of Hollywood Casino Baton Rouge to Casino Queen and leased the real estate to Casino Queen. Subsequently, GLP Holdings, Inc. was merged into GLP Capital. In September 2022, Bally's acquired both the building assets from GLPI and PENN's outstanding equity interests in Tropicana Las Vegas. GLPI retained ownership of the land and entered into a ground lease with Bally's. In connection with this transaction, Tropicana LV, LLC was merged into GLP Capital. GLPI paid a special earnings and profit dividend of $0.25 per share in the first quarter of 2023 related to the sale of the building to Bally's. In connection with the UPREIT Transaction with Cordish, GLP Capital issued 7,366,683 newly-issued OP Units to affiliates of Cordish.
GLPI's operations primarily revolve around its master leases with gaming operators. The company has master leases with various operators such as PENN, Caesars, Boyd, Bally's, Cordish, and Casino Queen, among others. These leases have specific terms and conditions, including base rent with fixed annual escalation, lease expiration dates, and renewal options.
For example, GLPI owns substantially all of PENN’s former real property assets and leases back most of those assets to PENN for use by its subsidiaries pursuant to the Original PENN Master Lease. On October 10, 2022, GLPI agreed to create the PENN 2023 Master Lease for seven of PENN's properties, with a funding mechanism to support PENN's pursuit of relocation and development opportunities at several of the properties included in the new master lease. The PENN 2023 Master Lease became effective on January 1, 2023. GLPI also has similar master leases with other operators such as Caesars and Boyd, each with its own specific terms and conditions.
The market has reacted to these announcements by moving the company's shares 0.2% to a price of $44.55. If you want to know more, read the company's complete 10-K report here.
