Gaming and Leisure Properties has reported its financial results for the third quarter of the year. For the period ended September 30, the real estate investment trust (REIT) reported $333.8 million in revenue, up by 11% from the same quarter last year. As a result, the firm has now updated its full-year guidance.
The company also experienced a 52% rise in profitability during Q3, with net income increasing to $226.2 million, up from $149.1 million year-on-year. As for GLPI’s adjusted EBITDA, it experienced a 12% rise from $276.7 million to $308.8 million. Peter Carlino, Chairman and Chief Executive Officer, described the third quarter as “another period of disciplined expansion and diversification” of the company’s portfolio of regional gaming assets.
The results drove “another quarter of record operating results” along with strong capital returns and yields for shareholders, pointed out Carlino. The CEO said GLPI’s record results and ongoing momentum highlight the value of the company’s strategic approach to aligning its business with regional gaming’s “leading operators” while managing the expansion and diversification of its portfolio in “an accretive, prudent manner.”
On a sequential basis, GLPI’s revenue experienced 2% growth, rising from $326.5 million. The company has now increased its guidance for the full year, estimating it will generate between $918 million and $923 million, or between $3.52 and $3.54 per diluted share and OP units. This is up from previous Q2 guidance between $908 million and $920 million.
Q3 growth initiatives included the completion of GLPI’s transaction whereby its tenant Bally’s Corporation acquired the REIT’s non-land real estate assets and PENN Entertainment‘s equity interests in Tropicana Las Vegas Hotel and Casino for approximately $145 million, which resulted in a pre-tax gain of $67.4 million for GLPI. Upon completing the transaction, Bally’s entered into a 50-year ground lease with GLPI for an initial annual cash rent of $10.5 million.
“Since our formation almost nine years ago, GLPI has grown from being a landlord with one tenant and 19 properties to a landlord with six tenants with 57 properties across 17 states as we have significantly diversified our tenant base with the industry’s premiere operators,” noted Carlino.
In this regard, the company announced a new master lease for seven of PENN Entertainment’s properties earlier this month. “As with other transactions we pursue at GLPI, we believe that this new master lease structure comes with attractive rent and financing terms for both parties under a proven master lease structure that offers GLPI material downside protection while offering us an opportunity to benefit from PENN Entertainment’s long-term growth,” the company said.
Discussing the Q3 results, Carlino told investors and analysts that Las Vegas had shaken off the pandemic and regained its footing faster than he thought it would, which might lead GLPI to consider acquiring more property on the Strip. The Pennsylvania-based REIT’s cash-flow measure and revenue topped Wall Street forecasts.
Original article: https://www.yogonet.com/international/news/2022/11/01/64855-gaming-and-leisure-posts-revenue-up-11–in-q3-record-operating-results
