Gaming and Leisure Properties Reports Second Quarter 2025 Results and Updates 2025 Full Year Guidance

WYOMISSING, Pa., July 24, 2025 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) ("GLPI" or the "Company") today announced financial results for the quarter ended June 30, 2025.

Financial Highlights

 

 

Three Months Ended June 30,

(in millions, except per share data)

 

2025

 

2024

Total Revenue

 

$

394.9

 

 

$

380.6

 

Income from Operations

 

$

242.1

 

 

$

293.4

 

Net Income

 

$

156.2

 

 

$

214.4

 

FFO (1) (4)

 

$

224.9

 

 

$

279.2

 

AFFO (2) (4)

 

$

276.1

 

 

$

264.4

 

Adjusted EBITDA (3) (4)

 

$

361.5

 

 

$

340.4

 

Net income, per diluted common share

 

$

0.54

 

 

$

0.77

 

FFO, per diluted common share and OP/LTIP units (4)

 

$

0.79

 

 

$

1.00

 

AFFO, per diluted common share and OP/LTIP units (4)

 

$

0.96

 

 

$

0.94

 

Annualized dividend per share

 

$

3.12

 

 

$

3.04

 

Dividend yield based on period end stock price

 

 

6.68

%

 

 

6.72

%

 

 

 

 

 

 

 

 

 

_______________________________________

(1) Funds from Operations ("FFO") is net income, excluding (gains) or losses from dispositions of property, net of tax and real estate depreciation as defined by NAREIT.

(2) Adjusted Funds From Operations ("AFFO") is FFO, excluding, as applicable to the particular period, stock based compensation expense; the amortization of debt issuance costs, bond premiums and original issuance discounts; other depreciation; amortization of land rights; accretion on investment in leases, financing receivables; non-cash adjustments to financing lease liabilities; straight-line rent and deferred rent adjustments; losses on debt extinguishment; capitalized interest; and provision (benefit) for credit losses, net, reduced by capital maintenance expenditures.

(3) Adjusted EBITDA is net income, excluding, as applicable to the particular period, interest, net; income tax expense; real estate depreciation; other depreciation; (gains) or losses from dispositions of property, net of tax; stock based compensation expense, straight-line rent and deferred rent adjustments, amortization of land rights, accretion on investment in leases, financing receivables; non-cash adjustments to financing lease liabilities; losses on debt extinguishment; and provision (benefit) for credit losses, net.

(4) Metrics are presented assuming full conversion of limited partnership units to common shares and therefore before the income statement impact of non-controlling interests.

Peter Carlino, Chairman and Chief Executive Officer of GLPI, commented, "The second quarter marked another quarter of record revenue, AFFO and Adjusted EBITDA. On an operating basis, second quarter total revenue rose 3.8% year over year to $394.9 million, AFFO grew 4.4% to $276.1 million and Adjusted EBITDA increased 6.2%.   Our solid second quarter results reflect GLPI's recent acquisitions and financing arrangements, contractual escalators and percentage rent adjustments, and our growing base of leading regional gaming operator tenants. These factors contribute to the ongoing predictability of our rental cash flows and dividends, and are expected to drive continued financial growth in the second half of 2025.

"In the second half of 2025, GLPI will benefit from sale-leaseback transactions and financing commitments completed in 2024 as well as our activity in the first quarter of 2025. For example, earlier this year GLPI continued its funding of the landside conversion of Bally's Belle of Baton Rouge Casino with the hotel now open and the project anticipated to be completed in the fourth quarter. The landside conversion is providing the asset with an attractive runway for growth on par with similar recent conversions across the industry. In July 2025, the DraftKings at Casino Queen and The Queen Baton Rouge properties were transferred to Bally's Master Lease II and the $28.9 million of annual rental income will be reallocated to the new lease which includes a guarantee from several Bally's entities to replace the corporate guarantee for this lease. The Bally's assets in our portfolio are performing very well resulting in strong four-wall coverage from these properties.

"In addition to the Bally's Belle funding and lease modification, future results will also benefit from the five-year extension with Boyd Gaming of their Master Lease and the Belterra Park Lease completed earlier in 2025. In addition, we have funded $25.8 million as of June 30, 2025, for the Ione Band of Miwok Indians' Acorn Ridge Casino development near Sacramento, California, marking a first-of-its-kind financing agreement between a federally recognized tribe and a real estate investment trust. In total, GLPI has committed to Ione a $110 million delayed draw term loan facility which has a 5-year term and an 11% interest rate.   GLPI remains active in identifying additional opportunities in tribal gaming where partnerships can benefit from our unique funding structures, similar to the value our leading regional gaming operator tenants derive from our relationships. Near-term, our relationship with PENN Entertainment is expected to result in $130 million of funding for the relocation of Hollywood Casino Joliet, which is scheduled to open on August 11, 2025, for which GLPI will receive a 7.75% cap rate. These fundings and lease extensions reflect our commitment to delivering creative financing solutions and supporting our tenant partners.

"Looking forward, construction of the Bally's permanent gaming and entertainment destination resort in Chicago continues and the budget remains unchanged. The resort will feature approximately 3,300 slots, 170-plus table games, a 500-room hotel tower, 3,000 seat theater, six restaurants, cafes, a food hall and a two-acre river-side public park. We are proud of our ability to work alongside Bally's to impart GLPI's decades of casino construction and development expertise to the project in support of our project financing commitment.

"Elsewhere, earlier this year GLPI agreed to fund, at PENN's discretion, construction improvements at Ameristar Casino Council Bluffs where GLPI will continue to own the Ameristar Casino Council Bluffs land and, in the event that GLPI funds the construction of the improvements rather than providing a loan, the entire land-based development. Late last month, applications for three available downstate casinos were submitted to the New York Gaming Facility Location Board. GLPI is providing financial support to two projects, one located in Brooklyn's iconic Coney Island, and the second in the Bronx at Bally's Links golf course project in Ferry Point. If either project is awarded a license, GLPI agreed to provide funding for certain hard costs. Finally, in Las Vegas, we maintain a valuable land parcel of 35 acres, 26 acres of which will remain for development following the dedication of 9 acres for the site of Major League Baseball's new Athletic's stadium. Bally's is continuing to work with its design professionals to finalize plans for an integrated casino adjacent to the new stadium. We intend to remain disciplined as the integrated resort planning process unfolds and we will then determine how much, if any, additional funding we may provide to support the construction of the integrated resort.

"With our pipeline of announced growth opportunities, disciplined approach to portfolio expansion, the proven long-term resiliency of our tenants' revenue streams, and comfortable rent coverage ratios, we expect to continue to deliver strong capital returns and yields for our shareholders."

Recent Developments

Effective July 1, 2025, the DraftKings at Casino Queen and The Queen Baton Rouge properties were transferred to Bally's Master Lease II and the associated annual rental income of $28.9 million will be reallocated from the Casino Queen Master Lease to Bally's Master Lease II. Additionally, the corporate guarantee for this lease has been removed and was replaced by a guarantee from several Bally's entities.

On June 6, 2025, PENN Entertainment, Inc. (NASDAQ:PENN) ("PENN") gave notice to the Company that it intended to utilize $130 million for the relocation of Hollywood Casino Joliet and we expect to fund on August 1, 2025. GLPI will receive a 7.75% cap rate on the funding.

On June 2, 2025, the Company settled its forward sale agreement of 8,170,387 shares of our common stock for $404.0 million inclusive of certain contractual adjustments.

On May 2, 2025, the Company entered into a new continuous equity offering program under which the Company may sell up to an aggregate of $1.25 billion of its common stock from time to time through a sales agent in "at the market" offerings.

During the three month period ended June 30, 2025, the Company entered into a forward starting interest rate swap indexed to US-SOFR with a $100 million notional to hedge against changes in future cash flows resulting from changes in interest rates from the expected issuance of senior unsecured notes. The hedge locked in a fixed SOFR rate of 3.585%. On July 1, 2025, the Company entered into an additional forward starting interest rate swap with a $100 million notional indexed to US-SOFR to hedge against changes in future cash flows resulting from changes in interest rates from the expected issuance of senior unsecured notes. The hedge locked in a fixed SOFR rate of 3.714%.

On March 3, 2025, the Company redeemed its $850 million 5.250% senior unsecured note that was due in June 2025.  

On February 12, 2025, Boyd Gaming Corporation (NYSE:BYD) ("Boyd") exercised its first 5-year renewal option on both the Boyd Master Lease and the Belterra Park Lease.   As a result, both lease terms now expire on April 30, 2031.  

On February 7, 2025, Bally's Corporation (NYSE:BALY) ("Bally's") completed its merger transactions with Standard General L.P. and its affiliates, and pursuant to the terms of the merger agreement, The Queen Casino & Entertainment Inc ("Casino Queen") is now a subsidiary of Bally's.

On February 3, 2025, the Company agreed to fund, if requested by PENN Entertainment, Inc. (NASDAQ:PENN) ("PENN") at their sole discretion, on or before March 31, 2029, construction improvements for the benefit of Ameristar Casino Council Bluffs in an amount not to exceed the greater of (i) the hard costs associated with the project and (ii) $150.0 million.   The financing is being offered at a 7.10% capitalization rate.   PENN is entitled, in its sole discretion, to structure such financing as rent or as a 5-year term loan that is pre-payable at any time without penalty.   GLPI will continue to own the Ameristar Casino Council Bluffs land and -- should PENN access the financing -- the entire land-based development.  

Dividends

On May 15, 2025, the Company's Board of Directors declared a second quarter dividend of $0.78 per share on the Company's common stock that was paid on June 27, 2025 to shareholders of record on June 13, 2025.

2025 Guidance

Reflecting the current operating and competitive environment, the Company is updating its AFFO guidance for the full year 2025 based on the following assumptions and other factors:

The guidance does not include the impact on operating results from any possible future acquisitions or dispositions, future capital markets activity, or other future non-recurring transactions other than the anticipated $130 million related to the Joliet relocation project and approximately $375 million related to current development projects of which $338 million is anticipated to be funded during the second half of 2025.

The guidance assumes there will be no material changes in applicable legislation, regulatory environment, world events, including weather, recent consumer trends, economic conditions, oil prices, competitive landscape or other circumstances beyond our control that may adversely affect the Company's results of operations.

The Company estimates AFFO for the year ending December 31, 2025 will be between $1.112 billion and $1.118 billion, or between $3.85 and $3.87 per diluted share and OP/LTIP units. GLPI's prior guidance contemplated AFFO for the year ending December 31, 2025 of between $1.109 billion and $1.118 billion, or between $3.84 and $3.87 per diluted share and OP/LTIP units.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort.   This is due to the inherent difficulty of forecasting the timing and/or amounts of various items that would impact net income, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, provision for credit losses, net, and other non-core items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted.   For the same reasons, the Company is unable to address the probable significance of the unavailable information.   In particular, the Company is unable to predict with reasonable certainty the amount of the change in the provision for credit losses, net, under ASU No. 2016-13 - Financial Instruments - Credit Losses ("ASC 326") in future periods. The non-cash change in the provision for credit losses under ASC 326 with respect to future periods is dependent upon future events that are entirely outside of the Company's control and may not be reliably predicted, including the performance and future outlook of our tenant's operations for our leases that are accounted for as investment in leases, financing receivables, as well as broader macroeconomic factors and future predictions of such factors. As a result, forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Portfolio Update

GLPI's primary business consists of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements. As of June 30, 2025, GLPI's portfolio consisted of interests in 68 gaming and related facilities, including, the real property associated with 34 gaming and related facilities operated by PENN, the real property associated with 6 gaming and related facilities operated by Caesars Entertainment, Inc. (NASDAQ:CZR) ("Caesars"), the real property associated with 4 gaming and related facilities operated by Boyd, the real property associated with 15 gaming and related facilities operated by Bally's, 1 facility under development with Bally's in Chicago, Illinois, the real property associated with 3 gaming and related facilities operated by The Cordish Companies ("Cordish"), 1 gaming and related facility operated by American Racing & Entertainment LLC ("American Racing"), 3 gaming and related facilities operated by Strategic Gaming Management, LLC ("Strategic") and 1 facility managed by a subsidiary of Hard Rock International ("Hard Rock"). These facilities are geographically diversified across 20 states.

Conference Call Details

The Company will hold a conference call on July 25, 2025, at 10:00 a.m. (Eastern Time) to discuss its financial results, current business trends and market conditions.

To Participate in the Telephone Conference Call:Dial in at least five minutes prior to start time.Domestic: 1-877/407-0784International: 1-201/689-8560

Conference Call Playback:Domestic: 1-844/512-2921International: 1-412/317-6671Passcode: 13754658The playback can be accessed through Friday, August 1, 2025.

WebcastThe conference call will be available in the Investor Relations section of the Company's website at www.glpropinc.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary software. A replay of the call will also be available for 90 days thereafter on the Company's website.                

GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Income

(in thousands, except per share data) (unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2025

 

2024

 

2025

 

2024

Revenues

 

 

 

 

 

 

 

Rental income

$

339,527

 

 

$

332,815

 

 

$

679,779

 

 

$

663,397

 

Income from investment in leases, financing receivables

 

47,926

 

 

 

45,974

 

 

 

95,690

 

 

 

90,279

 

Income from investment in leases, sales type

 

3,762

 

 

 

—

 

 

 

7,522

 

 

 

—

 

Interest income from real estate loans

 

3,661

 

 

 

1,837

 

 

 

7,120

 

 

 

2,914

 

Total income from real estate

 

394,876

 

 

 

380,626

 

 

 

790,111

 

 

 

756,590

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Land rights and ground lease expense

 

13,942

 

 

 

11,870

 

 

 

27,497

 

 

 

23,688

 

General and administrative

 

15,907

 

 

 

13,851

 

 

 

34,620

 

 

 

31,737

 

Gains from dispositions of property

 

—

 

 

 

—

 

 

 

(125

)

 

 

—

 

Depreciation

 

69,235

 

 

 

65,262

 

 

 

134,247

 

 

 

130,622

 

Provision (benefit) for credit losses, net

 

53,728

 

 

 

(3,786

)

 

 

92,974

 

 

 

19,508

 

Total operating expenses

 

152,812

 

 

 

87,197

 

 

 

289,213

 

 

 

205,555

 

Income from operations

 

242,064

 

 

 

293,429

 

 

 

500,898

 

 

 

551,035

 

 

 

 

 

 

 

 

 

Other income (expenses)

 

 

 

 

 

 

 

Interest expense

 

(89,934

)

 

 

(86,670

)

 

 

(187,206

)

 

 

(173,345

)

Interest income

 

4,580

 

 

 

8,065

 

 

 

13,936

 

 

 

17,297

 

Total other expenses

 

(85,354

)

 

 

(78,605

)

 

 

(173,270

)

 

 

(156,048

)

 

 

 

 

 

 

 

 

Income before income taxes

 

156,710

 

 

 

214,824

 

 

 

327,628

 

 

 

394,987

 

Income tax expense

 

545

 

 

 

412

 

 

 

1,109

 

 

 

1,049

 

Net income

$

156,165

 

 

$

214,412

 

 

$

326,519

 

 

$

393,938

 

Net income attributable to non-controlling interest in the Operating Partnership

 

(4,726

)

 

 

(6,162

)

 

$

(9,896

)

 

 

(11,224

)

Net income attributable to common shareholders

$

151,439

 

 

$

208,250

 

 

$

316,623

 

 

$

382,714

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

Basic earnings attributable to common shareholders

$

0.55

 

 

$

0.77

 

 

$

1.15

 

 

$

1.41

 

Diluted earnings attributable to common shareholders

$

0.54

 

 

$

0.77

 

 

$

1.14

 

 

$

1.41

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

Net income

 

156,165

 

 

 

214,412

 

 

 

326,519

 

 

 

393,938

 

Unrealized gain on cash flow hedges

 

864

 

 

 

—

 

 

 

864

 

 

 

—

 

Comprehensive income

 

157,029

 

 

 

214,412

 

 

 

327,383

 

 

 

393,938

 

Comprehensive income attributable to non-controlling interest in the Operating Partnership

 

(4,753

)

 

 

(6,162

)

 

 

(9,923

)

 

 

(11,224

)

Comprehensive income attributable to common shareholders

 

152,276

 

 

 

208,250

 

 

 

317,460

 

 

 

382,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAMING AND LEISURE PROPERTIES, INC. AND SUBSIDIARIES

Current Year Revenue Detail

(in thousands) (unaudited)

 

Three Months Ended June 30, 2025

Buildingbase rent

Land baserent

Percentagerent andotherrentalrevenue

Interestincome onreal estateloans

Total cashincome

Straight-linerent anddeferredrentadjustments (1)

Groundrent inrevenue

Accretiononfinancingleases

Totalincomefrom realestate

Amended PENN Master Lease

$

54,151

$

10,759

$

6,495

 

$

—

$

71,405

$

4,952

 

$

637

$

—

$

76,994

PENN 2023 Master Lease

 

59,797

 

—

 

(83

)

 

—

 

59,714

 

4,737

 

 

—

 

—

 

64,451

Amended Pinnacle Master Lease

 

61,483

 

17,814

 

8,121

 

 

—

 

87,418

 

1,858

 

 

2,145

 

—

 

91,421

PENN Morgantown Lease

 

—

 

796

 

—

 

 

—

 

796

 

—

 

 

—

 

—

 

796

Caesars Master Lease

 

16,302

 

5,932

 

—

 

 

—

 

22,234

 

1,916

 

 

330

 

—

 

24,480

Horseshoe St. Louis Lease

 

5,992

 

—

 

—

 

 

—

 

5,992

 

325

 

 

—

 

—

 

6,317

Boyd Master Lease

 

20,742

 

2,947

 

3,046

 

 

—

 

26,735

 

(2,364

)

 

433

 

—

 

24,804

Boyd Belterra Lease

 

733

 

474

 

500

 

 

—

 

1,707

 

(377

)

 

—

 

—

 

1,330

Bally's Master Lease

 

26,574

 

—

 

—

 

 

—

 

26,574

 

—

 

 

2,649

 

—

 

29,223

Bally's Master Lease II

 

8,048

 

—

 

—

 

 

—

 

8,048

 

—