Seemingly not the focused management we knew at PENN - already experiencing miscues. Rent escalator in doubt to soft regional trends. Acquisitions the only positive catalyst but tough to predict.




  • First full quarter of operations
  • Two items to highlight and guidance deviations...
  1. incorrectly E&P dividend would be fully diluted and new guidance reflects updated calculation
  2. adjusted EBITDA line was $3m higher as didn't account for dividends to employees


  • 2% escalator is in 2014 guidance - how confident of escalator given PENN guidance?   On the cusp of the rent escalator, decided to leave in $1m of escalator as too early to decide if will/will not occur.  Wait until end of 2nd quarter, past calendar and weather impact - if PENN performs as guided then rent escalator at risk.  However, when two Ohio properties open, will help 1.8x calculation - assuming stabilization.  
  • Restate acquisition commentary and expectations - not really able to comment, but fully engaged in building and growing GLPI.  Comfortable and confident will get another transaction done and closed this year...
  • Don't have large operations, therefore not much to discuss as numbers are numbers and not able to talk about all the potential, forward drivers...
  • Acquisitions has operating environment changed landscape and willingness to engage in sales discussions of gaming is in a near-term cyclical vs. structural - hundreds of independent gaming properties...someone always needs to sell.  No reason to believe opportunity has changed and no reduction in conversations.
  • Iowa situation - are there any remedies to reinstate or achieve favorable outcome?  GLPI completely on the outside and along for the ride with PENN.  IRGC actions are outrageous and illegal, appalling.  A preliminary ruling by the court is the charity, PENN & GLPI would never have contemplated.  Peter's encouragement for PENN is to take legal actions to and thru every venue possible...hope and expectation PENN will fight to the last breadth.  Iowa is a disgrace...
  • Possible counter party, participant in NY?  Challenging to figure out, some surprised by location, situation needs to flush out.  Had conversations with multiple parties...could partner and support an operator with financing. 
  • Florida - Mohegan Sun as operator, participated in bidding process but did not prevail at Miami Jai Alai facility.  As looked at property, GLPI did not see upside to support purchase price.
  • Greenfield opportunities - actively engaged and attuned.
  • Look at Atlantic City - not interested at these price levels
  • CZR's Tunica - not interested in that property, a few properties have their interest but not at these price levels -- not interested in antiquated properties on verge of extinction
  • Views on other OpCo/PropCo transactions - anyone who believes process is easy is confused.  Don't have the insights into roadblocks at other operators.  Took PENN three years to deal with internal roadblocks.  Any operator looking at a spin today, has a long and time consuming process ahead. 
  • Base case for acquisition timing and process - Casino Queen not the typical transaction because transaction solved covenant issue, thus process was quicker than "normal" transaction.  Typical transaction is more lengthy - first, verbal & socializing; second, put to paper; third, think about and ask for terms sheet; and, finally ready to move forward to contract.
  • At what point announce a transaction - not announce until signed purchase transaction
  • Non gaming opportunities - always challenged to keep machine growing, but will stick close to knowing what they know easily...but a few years down the road could see GLPI expanding investment focus because such is owed to shareholders to keep machine growing.
  • TRS EBITDA - guidance built conservatively for those two markets?  Guidance built on Q1 2014 trends and draconian view of Baton Rouge and Perryville.  Will wait for Q2 results to adjust TRS view and guidance


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