Real estate investment trust Gaming and Leisure Properties has raised full year guidance, as prior acquisitions pay off during 2019’s third quarter.
The firm, which states that it’s “North America’s first gaming focused REIT,” saw revenue during Q3 reach $287.6m, which represents a 13.2 per cent increase from $254.1m.
Year-over-year financial growth is a primary reflection of October 2018 acquisitions of real property assets operated by Boyd Gaming Corporation, Eldorado Resorts and Penn National Gaming.
Adjusted EBITDA for the period increased 17.2 per cent to $260.5m (2018: $222.2m), however net income fell 13.6 per cent from $104.8m to $90.5m.
It was stated that the decrease “was primarily attributable to the non-recurring losses on debt extinguishment of $21m in connection with a cash tender offer to purchase 4.875 per cent senior unsecured notes due 2020 during the quarter,” partially offset by the previously detailed acquisitions.
GLPI has also established guidance for the year’s final quarter, as well as raising expectations of the company’s full year performance to December 31, 2019.
Including the full year benefit of transactions closed on October 1, 2018, with Eldorado and contributions from the transactions closed on October 15, 2018 with Penn, Pinnacle Entertainment and Boyd, reported revenue has been set at $1.02bn for the year and $258.5m for Q4.
Peter Carlino, chief executive officer, commented: “GLPI delivered another quarter of solid financial results reflecting our initiatives and strategies to drive cash flow growth from accretive transactions, while actively managing our capital structure and cost of capital.
“Our diversified portfolio of regional gaming assets, managed by the industry’s leading operators, continues to generate one of the most stable cash flow streams in the triple-net REIT sector.
“During the third quarter, we further strengthened our balance sheet through an opportunistic refinancing that reduced our borrowing costs and extended our average debt maturities.
“Our talented team remains focused on identifying and pursuing portfolio enhancing accretive transactions to position GLPI to extend its long-term record of dividend growth and value creation for shareholders.”
GLPI’s portfolio consists of interests in 46 gaming and related facilities, geographically diversified across 16 states and containing approximately 23.5 million square feet.