Gaming and Leisure Properties, Inc. Enters into Triple Net Master Lease with Affiliates of The Cordish Companies for the Pennsylvania Live! Properties

WYOMISSING, Pa., March 02, 2022 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (the “Company”), announced today that it completed the acquisition of the land and real estate assets of Live! Casino & Hotel Philadelphia (“Live! Philadelphia”) and Live! Casino Pittsburgh (“Live! Pittsburgh”) from The Cordish Companies (“Cordish”) for total consideration of approximately $674 million. The Company funded the transaction by assuming approximately $423 million in debt (which the Company has repaid), and issuing approximately $137 million of operating partnership units (3.0 million total units), with the balance paid from cash on hand, which was in part generated by its December issuance of senior unsecured notes and common stock.

Simultaneous with the closing of the transaction, Gaming and Leisure Properties entered into a master lease with Cordish, pursuant to which Cordish will continue its uninterrupted ownership, control and management of the operations of Live! Philadelphia and Live! Pittsburgh (the “PA Live! Master Lease”). The PA Live! Master Lease has an initial annual cash rent of $50.0 million and an initial term of 39 years with a maximum term of 60 years, inclusive of tenant renewal options, as well as a fixed annual lease escalation of 1.75% beginning in the lease’s third year.

Peter Carlino, Chairman and CEO of Gaming and Leisure Properties commented, “We are delighted to add the Live! Pennsylvania properties to our portfolio and expand our presence in the attractive Pennsylvania market with truly world-class properties. The Cordish Companies is world renowned for creating large-scale experiential real estate projects, casinos, hospitality and entertainment districts and we believe their Live! brand exemplifies their track record of development and operating success. Further, our PA Live! Master Lease with Cordish has strong rent coverage and is part of an accretive overall transaction that positions Gaming and Leisure Properties to continue to build value for shareholders through our industry- leading, high quality tenant roster. We are excited to welcome the Live! Pennsylvania properties to the GLPI family and we look forward to working with their team to support the long-term success of the properties. In addition, our announced transactions with Bally’s Corporation for properties located in Rock Island, Illinois and Black Hawk, Colorado are now expected to close in the first half of 2022, while the transactions for Tropicana Las Vegas are expected to close by year end.”

Live! Philadelphia, located in the heart of the Philadelphia Stadium District, includes more than 510,000 square feet of gaming, hotel, dining and entertainment space.  It features more than 2,100 slot machines, 116 live action table games, a 29 table poker room, 15 electronic table games, and a FanDuel Sportsbook and Lounge.  The property also has a 208 room hotel, a multi-level structured parking facility and surface parking as well as a six room event center featuring 15,000 square feet of customizable meeting space to accommodate up to 1,000 guests.  Finally, it includes multiple dining and nightlife options including the Prime Rib, Sports and Social Philly, and Luk Fu.  

Live! Pittsburgh is situated directly off Route 30 at the Westmoreland Mall, approximately 30 miles from downtown Pittsburgh.  The 100,000 square foot facility features 750 slots and approximately 30 live-action table games plus a FanDuel Sportsbook. 

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.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including our expectations regarding the timing of closing the announced transactions with Bally’s Corporation. Forward-looking 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 effect of pandemics such as COVID-19 on GLPI as a result of the impact of such pandemics on the business operations of GLPI’s tenants and their continued ability to pay rent in a timely manner or at all; GLPI’s ability to successfully consummate the announced transactions Bally’s Corporation, including the ability of the parties to satisfy the various conditions to closing, including receipt of all required regulatory approvals, or other delays or impediments to completing the proposed transactions; our ability to continue to build shareholder value through our existing tenants; 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 acquisitions or projects; GLPI's ability to maintain its status as a REIT; our ability to access capital through debt and equity markets in amounts and at rates and costs acceptable to GLPI; the impact of our substantial indebtedness on our future operations; 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, 2021, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each 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 as presented or at all.

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