Gaming and Leisure Properties, Inc. Announces First Quarter 2014 Results

Gaming and Leisure Properties, Inc. Announces First Quarter 2014 Results

 - Completes Acquisition of Casino Queen in East St. Louis for $140 million -

               - Achieves Results in line with Prior Guidance -

          - Establishes 2014 Second Quarter and Full Year Guidance -

WYOMISSING, Pa., April 30, 2014 (GLOBE NEWSWIRE) -- Gaming and Leisure
Properties, Inc. (Nasdaq:GLPI) (the "Company"), the first gaming-focused REIT
in North America, today announced results for the quarter ended March 31,
2014.

Financial Highlights

                                 
(in millions, except per share    Three Months Ended
data)                             March 31,
                                 2014 Actual         2014 Guidance (1)
Net Revenue                       $158.3            $158.1
Adjusted EBITDA (2)               $103.0            $106.6
Net Income                        $44.3             $44.1
Funds From Operations (3)         $67.9             $67.1
Adjusted Funds From Operations    $74.1             $74.2
(4)
                                                     
Net income, per diluted common    $0.38             $0.37
share
FFO, per diluted common share    $0.58             $0.57
AFFO, per diluted common share   $0.63             $0.63
                                                    
(1)The guidance figures in the tables above present the guidance provided on
February 20, 2014 for the three months ended March 31, 2014, adjusted for the
fact that guidance for the first quarter was based on an estimate of 104.6
shares while actual diluted shares were 117.8. The previous guidance
erroneously assumed that shares from the earnings and profits purge would be
weighted for the period based on the date paid while the actual shares reflect
the count assuming the earnings and profits purge was retroactive to the prior
year.
(2)Adjusted EBITDA is net income excluding interest, taxes on income,
depreciation, gains (or losses) from sales of property, and stock based
compensation expense.
(3)Funds from operations (FFO) is net income, excluding gains (or losses)
from sales of property and real estate depreciation.
(4)Adjusted funds from operations (AFFO) is FFO, excluding stock based
compensation expense, debt issuance costs amortization and other depreciation
reduced by maintenance capital expenditures.

Gaming and Leisure Properties, Inc. Chief Executive Officer, Peter M. Carlino
commented, "I am pleased to report our first full quarter of results were in
line with our previously communicated guidance.Additionally, with the
successful closing of our acquisition of the Casino Queen in the first
quarter, we continue to pursue opportunities in the gaming industry to expand
our portfolio. The universe of these potential opportunities is substantial
and with our well capitalized balance sheet and significant knowledge and
experience in the industry, we believe we have a meaningful advantage that
allows us to be disciplined and selective in our pursuit of additional assets.
Furthermore, with our strengthened management team resulting from the addition
of Curt Magleby to our development group, we believe we will have additional
opportunities to support future growth. As we look ahead, we remain energized
by potential opportunities and believe that we are well positioned to drive
long term shareholder value over the coming quarters."

Financial Update

Gaming and Leisure Properties reported Funds from Operations (FFO) of $67.9
million for the three months ended March 31, 2014. Net revenue for the three
months ended March 31, 2014 was $158.3 million.The Company reported net
income of $44.3 million for the three months ended March 31, 2014, or $0.38
per diluted common share.

Our guidance for the first quarter reflected employee vested option quarterly
dividends of $3.4 million below adjusted EBITDA, however the actual results
and future guidance for these payments are shown as part of adjusted EBITDA.

                                  
(in millions)                      Three Months Ended
                                   March 31,
                                  2014 Actual        2014 Guidance (1)
Adjusted EBITDA                    $103.0           $106.6
Vested option dividend adjustment                   $3.4
Adjusted EBITDA guidance          $103.0           $103.2
                                                    
(1) The guidance figures in the tables above present the guidance provided on
February 20, 2014, for the three months ended March 31, 2014.

Portfolio Update

At the end of the first quarter of 2014, the Company owned the real estate
associated with 22 casino facilities, including two facilities currently under
development in Dayton and Youngstown, Ohio and leases, or expects to lease
with respect to Dayton and Youngstown, 19 of these facilities to Penn and one
to Casino Queen in East St. Louis, Illinois. Two of the gaming facilities,
located in Baton Rouge, Louisiana and Perryville, Maryland, are owned and
operated by a subsidiary (GLP Holdings, LLC) of GLPI. Collectively, and
including the two facilities currently under development in Dayton and
Youngstown, Ohio, GLPI owns approximately 3,114 acres of land and 6.9 million
square feet of building space, which was 100% occupied as of March31,
2014.In April, the Iowa Racing and Gaming Commission ruled that Argosy Casino
Sioux City must cease operations by July 1, 2014.Property maintenance capex
was $0.9 million for the three months ended March 31, 2014 and March 31,
2013.Additional information on properties under development is as follows:

                                              Planned Total Amount Expended
Project                                       Budget         Through March 31,
                                                             2014
                                             (in thousands)
Mahoning Valley Race Track (OH) - Hollywood
themed facility with up to 1,000 video
lottery terminals as well as various          $100.0       $35.5
restaurants and amenities.To be managed by
Penn National Gaming, with expected opening
in the fall of 2014.
Dayton Raceway (OH) - Hollywood themed
facility with up to 1,500 video lottery
terminals as well as various restaurants and  $89.5        $39.1
amenities.To be managed by Penn National
Gaming, with expected opening in the fall of
2014.

Balance Sheet Update

The Company had $48.3 million of unrestricted cash on hand and $2.5 billion in
total debt, including $300 million of debt outstanding under its unsecured
credit facility term loan and $150 million on its unsecured credit facility
revolver on March 31, 2014.The Company's debt structure at March 31, 2014 was
as follows:

                                   Three Months Ended March 31, 2014
                                   Interest Rate    Balance
                                                   (in thousands)
Unsecured Term Loan A (1)           1.738%           $300,000
Unsecured $700 Million Revolver (1) 1.655%           150,000
Senior Notes Due 2018               4.375%           550,000
Senior Notes Due 2020               4.875%           1,000,000
Senior Notes Due 2023               5.375%           500,000
                                                   $2,500,000
                                                   
(1) The margin on the term loan and revolver is Libor plus 1.50%.

Dividend

On February 18, 2014 the Company's Board of Directors declared its first
quarterly dividend.Shareholders of record on March 7, 2014 received $0.52 per
common share, which was paid on March 28, 2014.The Company anticipates that
its next quarterly dividend will be paid in June.

Initial Guidance

The table below sets forth current guidance targets for financial results for
the 2014 second quarter and full year, based on the following assumptions:

  *Hollywood at Dayton Raceway and Hollywood at Mahoning Valley Race Track
    open and begin paying rent in the fall of 2014;
  *Argosy Casino Sioux City closes on June 30, 2014, reducing rent by $3.1
    million in the second half of 2014;
  *Total rental income of approximately $476 million, consisting of
    approximately $418 million from Penn, approximately $13 million from
    Casino Queen, approximately $48 million to account for property taxes paid
    by our tenants, and reduced by approximately $3 million to account for
    non-assigned land lease payments made by PENN;
  *The escalator on the PENN building rent component begins effective
    November 1, 2014, which represents approximately $1 million in the fourth
    quarter of 2014 and $5 million on an annualized basis;
  *TRS EBITDA of approximately $35 million and maintenance capex of
    approximately $3 million for the full year;
  *Blended income tax rate at the TRS entities of 40%;
  *LIBOR is based on the forward yield curve;
  *Real estate depreciation of approximately $93 million for the full year,
    with approximately $24 million in the second quarter;
  *Non-real estate depreciation of approximately $12 million for the full
    year, with approximately $3 million in the second quarter;
  *Equity-related employee compensation affecting EBITDA includes the
    following:

       *Expense of approximately $3.7 million for the year and $1.0 million
         for the second quarter related to cash-settled equity compensation
         issued pre-spin, which are fully vested by the first quarter of 2017;
       *Expense of approximately $13.6 million for the year and $3.4 million
         for the second quarter for payments in lieu of dividends on vested
         stock options issued pre-spin, which are to be paid for three years
         ending 2016;

  *Equity-related employee compensation that does not affect EBITDA includes
    non-cash expense of approximately $11.0 million for the year and $3.0
    million for the second quarter for amortization of stock options issued
    pre-spin and the issuance of new restricted stock awards;
  *Interest expense includes approximately $8 million of non-cash debt
    issuance costs amortization;
  *For the purpose of the dividend calculation, AFFO is reduced by
    approximately $10 million for the full year prior to calculation of the
    dividend to account for compensation expense in lieu of dividends on
    employee options held by PENN employees; and
  *The basic share count is approximately 112 million shares and the fully
    diluted share count is approximately 118 million shares for the quarter
    and full year.

                                              
(in millions,      Three Months Ending June
except per share   30,                         Full Year Ending December 31,
data)
                                   2013        2014     2014 Prior 2013
                  2014 Guidance Actual      Revised   Guidance    Actual
                                                Guidance (5)
Net Revenue        $162.1        $46.1      $630.1  $630.8    $242.1
Adjusted EBITDA    106.6          12.7        416.1    432.6      91.0
(1)
Net Income         45.8           $4.7       177.5    181.1      $19.8
Funds From         69.4           4.7         271.1    272.8      34.7
Operations (2)
Adjusted Funds
From Operations    $76.8         $7.4       $299.7  $301.3    $46.8
(3)
                                                                  
Net income, per
diluted common     $0.39         $0.04      $1.50   $1.53     $0.17
share (4)
FFO, per diluted   $0.59         $0.04      $2.30   $2.31     $0.30
common share (4)
AFFO, per diluted  $0.65         $0.06      $2.54   $2.55     $0.40
common share (4)
                                                                 
(1)Adjusted EBITDA is net income excluding interest, taxes on income,
depreciation, gains (or losses) from sales of property, and stock based
compensation expense.
(2)Funds from operations (FFO) is net income, excluding gains (or losses)
from sales of property and real estate depreciation.
(3)Adjusted funds from operations (AFFO) is FFO, excluding stock based
compensation expense, debt issuance costs amortization and other depreciation
reduced by maintenance capital expenditures.
(4)Diluted EPS for the three months ended June 30, 2013, were retroactively
restated for the number of diluted shares outstanding immediately following
the Spin‑Off and to include the shares issued as part of the Purge
Distribution.
(5)The guidance figures in the tables above present the guidance provided on
February 20, 2014 for the three months ended March 31, 2014, adjusted for the
fact that the previous guidance erroneously assumed that shares from the
earnings and profits purge would be weighted for the period based on the date
paid while the actual shares reflect the count assuming the earnings and
profits purge was retroactive to the prior year.

Conference Call Details

The Company will hold a conference call on April 30 at 9:00 a.m. (Eastern
Time) to discuss its financial results, current business trends and market
conditions.

Webcast

The conference call will be available in the Investor Relations section of the
Company's website at www.glpropinc.com. To listen to a live broadcast, go to
the site at least 15 minutes prior to the scheduled start time in order to
register, download and install any necessary audio software. A replay of the
call will also be available for 90 days on the Company's website

To Participate in the Telephone Conference Call:
Dial in at least five minutes prior to start time.
Domestic: 1-877-705-6003
International: 1-201-493-6725

Conference Call Playback:
Domestic: 1-877-870-5176
International: 1-858-384-5517
Passcode: 13580193
The playback can be accessed through May 7, 2014

Disclosure Regarding Non-GAAP Financial Measures

Adjusted EBITDA, Funds From Operations ("FFO") and Adjusted Funds From
Operations ("AFFO"), which are detailed in the reconciliation tables that
accompany this release, are used by the Company as performance measures for
benchmarking against the Company's peers and as internal measures of business
operating performance.The Company believes Adjusted EBITDA, FFO, and AFFO
provide a meaningful perspective of the underlying operating performance of
the Company's current business.This is especially true since these measures
exclude real estate depreciation and we believe that real estate values
fluctuate based on market conditions rather than depreciating in value ratably
on a straight-line basis over time.

AFFO is a non-GAAP financial measure that is considered a supplemental measure
for the real estate industry and a supplement to GAAP measures.NAREIT defines
FFO as net income (computed in accordance with generally accepted accounting
principles), excluding gains (or losses) from sales of property and real
estate depreciation.We have defined AFFO as FFO excluding stock based
compensation expense, debt issuance costs amortization and other depreciation
reduced by maintenance capital expenditures. Finally, we have defined
Adjusted EBITDA as net income excluding interest, taxes on income,
depreciation, gains (or losses) from sales of property, and stock based
compensation expense.

Adjusted EBITDA, FFO, and AFFO are not recognized terms under GAAP.Because
certain companies do not calculate Adjusted EBITDA, FFO and AFFO in the same
way and certain other companies may not perform such calculation, those
measures as used by other companies may not be consistent with the way the
Company calculates such measures and should not be considered as alternative
measures of operating profit or net income.The Company's presentation of
these measures does not replace the presentation of the Company's financial
results in accordance with GAAP.

About Gaming and Leisure Properties

GLPI is engaged in the business of acquiring, financing, and owning real
estate property to be leased to gaming operators in "triple net" lease
arrangements, pursuant to which the tenant is responsible for all facility
maintenance, insurance required in connection with the leased properties and
the business conducted on the leased properties, taxes levied on or with
respect to the leased properties and all utilities and other services
necessary or appropriate for the leased properties and the business conducted
on the leased properties. GLPI expects to grow its portfolio by aggressively
pursuing opportunities to acquire additional gaming facilities to lease to
gaming operators. GLPI also intends to diversify its portfolio over time,
including by acquiring properties outside the gaming industry to lease to
third parties. GLPI intends to elect to be taxed as a real estate investment
trust ("REIT") for United States federal income tax purposes commencing with
the 2014 taxable year and is the first gaming-focused REIT.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended. These statements can be identified by the use of
forward looking terminology such as "expects," "believes," "estimates,"
"intends," "may," "will," "should" or "anticipates" or the negative or other
variation of these or similar words, or by discussions of future events,
strategies or risks and uncertainties. Such forward looking statements are
inherently subject to risks, uncertainties and assumptions about GLPI and its
subsidiaries, including risks related to the following: the ability to
receive, or delays in obtaining, the regulatory approvals required to own
and/or operate its properties, or other delays or impediments to completing
GLPI's planned acquisitions or projects; GLPI's ability to maintain its status
as a REIT and there being no need for any further dividend of historical
accumulated earnings and profits in order to qualify as a REIT in 2014; the
availability of and the ability to identify suitable and attractive
acquisition and development opportunities and the ability to acquire and lease
those properties on favorable terms; the ability to diversify into different
businesses, such as hotels, entertainment facilities and office space; changes
in the U.S. tax law and other state, federal or local laws, whether or not
specific to REITs or to the gaming or lodging industries; and other factors
described in GLPI's Annual Report on Form 10-K for the year ended December 31,
2013, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form
8-K as filed with the Securities and Exchange Commission. All subsequent
written and oral forward looking statements attributable to GLPI or persons
acting on GLPI's behalf are expressly qualified in their entirety by the
cautionary statements included in this press release. GLPI undertakes no
obligation to publicly update or revise any forward looking statements
contained or incorporated by reference herein, whether as a result of new
information, future events or otherwise, except as required by law. In light
of these risks, uncertainties and assumptions, the forward looking events
discussed in this press release may not occur.

Contact
Investor Relations – Gaming and Leisure Properties, Inc.
Dan Foley
T: 203- 682-8312
Email: Dan.Foley@icrinc.com

Bill Clifford
T: 610-401-2900
Email: Bclifford@glpropinc.com

GAMING AND LEISURE PROPERTIES, INC.AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data) (unaudited)
                                                          
                                      Three Months Ended March 31,
                                      2014                 2013
                                                          
Revenues                                                   
Rental (1)                             $106,114           $--
Real estate taxes paid by tenants      11,998              --
Total rental revenue                   118,112             --
Gaming                                38,755              41,080
Food, beverage and other               2,831               3,215
Total revenues                         159,698             44,295
Less promotional allowances            (1,370)             (1,646)
Net revenues                           158,328             42,649
Operating expenses                                         
Gaming                                21,562              23,139
Food, beverage and other               2,546               2,767
Real estate taxes                      12,423              406
General and administrative (1) (2)     20,941              5,939
Depreciation and amortization          26,522              3,588
Total operating expenses               83,994              35,839
Income from operations                 74,334              6,810
                                                          
Other income (expenses)                                    
Interest expense                       (28,974)            --
Interest income                        546                 --
Management fee (3)                     --                  (1,280)
Total other expenses                   (28,428)            (1,280)
                                                          
Income from operations before income   45,906              5,530
taxes
Taxes on income                       1,594               2,316
Net income                             $44,312            $3,214
                                                          
Earnings per common share:                                 
Basic earnings per common share (4)    $0.40              $0.03
Diluted earnings per common share (4)  $0.38              $0.03
                                                          
(1)According to ASC 605, Revenue Recognition, the Company is required to
gross up rental income by the amount of real estate taxes paid by our tenants
under the triple net structure and also reflect an offsetting expense in
general and administrative expense.
(2)General and administrative expenses include payroll related expenses,
insurance, utilities, supplies and other administrative costs.
(3)Management fees are legacy charges for operating entities which were
eliminated in consolidation.Management fees terminated as of October 31,
2013.
(4)Basic and diluted EPS for the three months ended March 31, 2013, were
retroactively restated for the number of basic and diluted shares outstanding
immediately following the Spin‑Off and to include the shares issued as part of
the Purge Distribution.


GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
Operations
(in thousands) (unaudited)
                                                             
                    NET REVENUES                ADJUSTED EBITDA
                    Three Months Ended March 31, Three Months Ended March 31,
                    2014           2013          2014           2013
Real estate          $118,112     $--         $93,263      $--
GLP Holdings, LLC.   40,216        42,649       9,702         10,370
(TRS)
Total               $158,328     $42,649     $102,965     $10,370


GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES
General and Administrative Expenses
(in thousands) (unaudited)
                                                             
                                             Three Months EndedMarch 31,
                                             2014             2013
Real estate general and administrative        $14,802        $--
expenses (1)
GLP Holdings, LLC. (TRS)general and          6,139           5,939
administrative expenses
Total                                         $20,941        $5,939
                                                             
(1)Includes stock based compensation of $6.1 million for the three months
ended March 31, 2014.


Reconciliation of Adjusted EBITDA to FFO, AFFO and Net income (GAAP)
Gaming and Leisure Properties, Inc. and Subsidiaries
CONSOLIDATED
(in thousands) (unaudited)
                                                            
                                           Three Months Ended
                                           March 31,
                                           2014              2013
Net income                                  $44,312         $3,214
Gains or (losses) from sales of property    158              (28)
Real estate depreciation                    23,441           --
Funds from operations                       $67,911         $3,186
Other depreciation (1)                      3,081            3,588
Debt issuance costs amortization            2,007            --
Stock based compensation                    1,951            --
Maintenance CAPEX                           (871)            (896)
Adjusted funds from operations              $74,079         $5,878
Interest, net                               28,428           --
Management fees                             --               1,280
Taxes on income                             1,594            2,316
Maintenance CAPEX                           871              896
Debt issuance costs amortization            (2,007)          --
Adjusted EBITDA                             $102,965        $10,370
                                                            
(1) Other depreciation includes both real estate and equipment depreciation
from our taxable REIT subsidiaries.


Reconciliation of Adjusted EBITDA to FFO, AFFO and Net income (GAAP)
Gaming and Leisure Properties, Inc. and Subsidiaries
REAL ESTATE and CORPORATE (REIT)
(in thousands) (unaudited)
                                                        
                                           Three Months Ended
                                           March 31,
                                           2014          2013
Net income                                  $42,044     $--
Gains or (losses) from sales of property    --           --
Real estate depreciation                    23,441       --
Funds from operations                       $65,485     $--
Other depreciation                          --           --
Debt issuance costs amortization            2,007        --
Stock based compensation                    1,951        --
Maintenance CAPEX                           --           --
Adjusted funds from operations              $69,443     $--
Interest, net                               25,827       --
Management fees                             --           --
Taxes on income                             --           --
Maintenance CAPEX                           --           --
Debt issuance costs amortization            (2,007)      --
Adjusted EBITDA                             $93,263     $--


Reconciliation of Adjusted EBITDA to FFO, AFFO and Net income (GAAP)
Gaming and Leisure Properties, Inc. and Subsidiaries
GLP HOLDINGS, LLC (TRS)
(in thousands) (unaudited)
                                                            
                                            Three Months Ended
                                            March 31,
                                            2014             2013
Net income                                   $2,268         $3,214
Gains or (losses) from sales of property     158             (28)
Real estate depreciation                     --              --
Funds from operations                        $2,426         $3,186
Other depreciation (1)                       3,081           3,588
Debt issuance costs amortization             --              --
Stock based compensation                     --              --
Maintenance CAPEX                            (871)           (896)
Adjusted funds from operations               $4,636         $5,878
Interest, net                                2,601           --
Management fees                              --              1,280
Taxes on income                              1,594           2,316
Maintenance CAPEX                            871             896
Debt issuance costs amortization             --              --
Adjusted EBITDA                              $9,702         $10,370
                                                            
(1) Other depreciation includes both real estate and equipment depreciation
from our taxable REIT subsidiaries.

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