Gaming and Leisure Properties (GLPI) M&A Presentation summary

Transaction overview

• Entered binding term sheet to acquire real property assets of Bally's Kansas City and Shreveport, fund Chicago casino improvements, and adjust Lincoln option.

• Total funded amount is $1.585 billion, with a 15-year lease term and blended cap rate of 8.3%.

• Initial cash rent is $132.1 million, subject to CPI-based escalations between 1.0% and 2.0%.

• Bally's Lincoln option/call right valued at $735 million, exercisable through September 2026, with a call right starting October 2026.

• Pro forma rent coverage ratio exceeds 2.0x.

Strategic benefits and strengths

• Expands relationship to 10 properties across 9 states, enhancing geographic diversification.

• Transaction expected to be immediately accretive to AFFO per share.

• Adds flagship Chicago casino, a major destination outside Las Vegas.

• Portfolio now includes 68 properties across 20 states and 9 tenants.

Bally's Chicago flagship development

• GLPI to invest $1.19 billion for land and improvements, with an 8.4% blended initial yield.

• Ground lease acquisition for $250 million, 15-year term, 8.0% initial yield.

• Construction financing up to $940 million, with total project costs exceeding $1.8 billion.

• Funding expected from August 2024 to December 2026, with rent commencing as advancements are made.