Gaming and Leisure Properties has welcomed a range of strategic initiatives undertaken in an effort to reduce COVID impacts in the second quarter, as the real estate investment trust releases its new financial statement.
GLPI points out that it has received nearly 99 percent of the contracted rent this year through July, with all tenants up-to – date with their leasing commitments other than Casino Queen, from whom the company has earned a partial payment and continues to work on a deferred contract.
The company posted revenue of $262 m for the quarter , down 9.3 percent from $289 m, net income rose 20.8 percent to $112.4 m (2019: $93 m) and adjusted EBITDA dropped 5.3 percent from $260.9 m to $246.9 m.
GLPI ‘s results for the six-month span up to June 30, 2020 saw revenue dropping 5.4 percent to $545.4 m (2019: $576.8 m), net income fell 12.4 percent from $186 m to $209.2 m and adjusted EBITDA decreased to $511.2 m (2019: $515.9 m) by less than one percentage point.
More moves during the quarter saw the company obtain approval from the Missouri Gaming Commission to own the Lumière Place Casino and Hotel, with the goal of closing the deal and entering into a new lease with Caesars for the asset before the maturity date of the 2018 pre-loan in conjunction with the organisation in October 1 , 2020.
GLPI Chairman and CEO Peter Carlino has explained: “Throughout the second quarter we took active measures to offset the impact of the COVID-19 outbreak on our leading, diversified portfolio of regional gaming assets, which are managed by the industry’s top operators. Our initiatives enhanced liquidity and provided the sector’s only investment-grade balance sheet with incremental financial flexibility.
“At the same time, our efforts supported our tenants and ensured the continuity and predictability of our rental cash flows. Recent amendments and increases to the size of our credit facility and the proceeds from our recent $500.0 million public offering of 4.00 per cent senior notes due 2031 enabled the repayment of all borrowings under our $1.175bn revolving credit facility.
“These efforts, along with the encouraging reopening of 43 of 45 of our properties, and the actions our industry leading publicly traded tenants have taken to strengthen their balance sheets through public market capital raises, have significantly increased the visibility and predictability of our rental receipts going forward.
“We remain focused on creating incremental value and cash flows from the transactions completed with our tenants since the pandemic outbreak. We will also continue to prudently manage our balance sheet and capital structure to deliver attractive shareholder returns.”