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First one out of the block - not too shabby


  • 4Q:  3 months of operating results from Hollywood Baton Rouge and Perryville
  • 4Q:  2 months included for real estate entity
  • Columbus/Toledo variable rent:  less than 10% of total rent
  • Rent coverage expected to exceed 1.8%
  • Rent escalator will begin on Nov 1, 2014
  • 2 OH race tracks will open Fall 2014

Q & A

  • Pleasantly surprised with strength of Perryville
  • Baton Rouge will improve as L'Auberge Baton Rouge property ramps up
  • Horseshoe Baltimore competition is reflected in 2014 guidance
  • Non-gaming acquisitions?  Not soon.
  • At least a few years of 'happy entertainment' before thinking about outside of gaming
  • Pretty confident more transactions will be done this year
  • People more interested in talking with GLPI given tough gaming environment; focused on rent coverage
  • Investment opportunities:  Independent properties that are owned by families, trusts, etc.
  • Queen acquisition:  GLPI loan 7% has a 5% spread on revolver (2%)
  • No pushback on GLPI; just ongoing conversations 
    • Number of opportunities haven't changed given environment
  • AFFO reduction due to PENN stock options: $12MM in 2014 and more reductions in years farther out
  • May be included in other indices; will approach relevant parties
  • Need to raise equity to fund new transactions?  Yes.  Leverage ratio goal is 5.5x.  Currently, under 6x.  Expect to reach investment grade.
    • Expect revolver to be around $200MM by end of 2014
  • Private transactions/greenfield development projects (e.g. MA) are most likely for transactions
  • Rent coverage across each property:  range from 1.4X to 3.5X
  • When looking at potential transaction, will access risk of gaming market, heath of earnings, margin trends, will set target rent coverage of 2x
  • Run rate on taxes:  40% on TRS