GLPI's Q1 Results Showcase the Triumph of Its Diversification Plan

GLPI’s Q1 Results Showcase the Triumph of Its Diversification Plan

Gaming and Leisure Properties (GLPI) has released its financial results for Q1 2023, reporting positive metrics across the board. The company’s total revenue increased by 12.7% YoY to $355m, while income from operations rose from $199.8m in Q1 2022 to $266.8m in Q1 2023. GLPI’s net income for the period was $188.7m, representing a 55% increase, and adjusted EBITDA was $323.1m, a 10% YoY rise. Adjusted Funds from Operations (AFFO) for the period were $248.6m, and the company updated its guidance, expecting AFFO of between $984m and $997m for the year ending December 31. The company paid its first quarter dividend of $0.72 per share to shareholders, as well as a profit dividend of $0.25 per share related to the sale of its Tropicana Las Vegas property.

The Q1 period was a busy one for GLPI, which called for redemption of its $500m, 5.375% Senior Notes in January, completing the move by February 12. The company also completed the $635m sale-leaseback of Bally’s Tiverton and Hard Rock Hotel & Casino Biloxi from Bally’s Corporation in January, adding the properties to the existing master lease with Bally’s. GLPI also completed a new master lease with PENN Entertainment that same month.

GLPI’s CEO, Peter Carlino, praised the Q1 results, highlighting the value of his team’s long-term strategy to expand and diversify the company portfolio. He noted that GLPI has become a landlord with six tenants and 59 properties across 18 states, with eight of these properties added in 2022 and early 2023. Carlino hopes to generate record results in 2023 and continue expanding and diversifying the company’s portfolio. In February, the company published its Q4 2022 results, once again highlighting the durability of its robust rental streams. Carlino believes that GLPI’s disciplined capital investment approach, combined with its focus on stable regional gaming markets, supports the company’s confidence in further growing its cash dividend and driving long-term shareholder value.