GLPI Reports Strong Q3 Revenue Growth

Date: 2023-10-30 Author: Dima Zakharov Categories: EVENTS
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Gaming and Leisure Properties, Inc. (GLPI) has released its Q3 financial results, showing substantial revenue growth and a promising outlook for the future. On an operational basis, the company's revenue was 7.7% higher year-on-year, reaching $359.6 million. This increase is attributed to GLPI's strategic expansion of its portfolio in recent months.

In January, GLPI completed the acquisition of Bally's Tiverton in Rhode Island and the Hard Rock Hotel & Casino Biloxi in Mississippi. Additionally, the company established a new master lease with Penn Entertainment, demonstrating its commitment to partnering with industry leaders.

During the third quarter, GLPI acquired land for the Hard Rock Casino development project in Illinois and secured a 99-year ground lease agreement with 815 Entertainment for this initiative. Other highlights include land acquisition at Casino Queen Marquette in Iowa and the reopening of The Queen Baton Rouge in Louisiana.

One significant development for GLPI is the partnership with the Oakland Athletics to build an integrated casino within a new stadium in Las Vegas. This strategic move has positioned GLPI for further growth, as stated by the company's chairman and CEO, Peter Carlino.

Carlino emphasized, "The merits of our strategy to work with the industry's leading operators and support their current and future initiatives, while expanding and diversifying our tenant roster in an accretive manner, was evident again in our record third quarter results."

Looking closer at the Q3 results, GLPI reported that FFO (funds from operations) increased by 9.3% to $254.4 million, while AFFO (adjusted funds from operation) rose by 6.9% to $251.2 million.

However, higher operating expenses, driven by GLPI's portfolio expansion, reached $91.3 million in Q3. Other expenses, related to interest, amounted to $79.8 million. This increased spending offset revenue growth, causing pre-tax profit to decline by 21.4% year-on-year to $189.8 million.

Net profit also decreased by 16.4% to $184.0 million, but adjusted EBITDA increased by 5.9% to $327.1 million.

When considering year-to-date performance, GLPI reported revenue of $1.07 billion for the nine months ending on September 30, marking a 9.8% increase compared to the previous year.

GLPI is optimistic about its future performance, anticipating that AFFO for the full year 2023 could surpass $1.00 billion, with CEO Peter Carlino expressing confidence in the company's growth prospects.
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