GLPI ‘well positioned’ for long-term growth after record Q4

Gaming and Leisure Properties has asserted that it’s “well positioned to deliver long-term growth” after closing the past year with record financial results.

The quarter saw the group close on a transaction that saw Bally’s acquire the group’s non-land real estate assets and PENN’s outstanding equity interests in Tropicana Las Vegas Hotel and Casino, as well as agree to a fresh master leave with the latter.

During the quarter, the real estate investment trust saw revenue, net income and adjusted EBITDA increase 12.77 per cent, 66.88 per cent and 12.55 per cent to $336.4m (2021: $298.3m), $199.6m (2021: $119.6m) and $312m (2021: $277.2m).

The, said the group, reflects a maintained successful and aggressive execution of a long-term strategy to grow rental cash flows while funding ongoing growth and dividend increases.

Peter Carlino, Chair and Chief Executive Officer of GLPI, commented: “We ended 2022 with record fourth quarter results and increased dividends as our deep, long-term knowledge of the gaming sector has allowed us to continually expand and diversify our tenant base, geographic footprint and rental streams. 

“Reflecting this ongoing expansion, since our establishment as the gaming industry’s first REIT, GLPI has grown from being a landlord with one tenant and 19 properties to become a landlord with six premiere tenants and 57 properties across 17 states as of December 31, 2022. 

“Fourth quarter results again highlight the durability of our rental streams, including the completion of previously announced agreements in late 2021 and in 2022 with The Cordish Companies and Bally’s Corporation, combined with our initiatives to position the company for further growth through the active management of all aspects of our business and capital structure.”

For the full-year, each financial reporting segment followed suit, with revenue, net income and AEBITDA all tracking increases once again via upticks of 7.83 per cent, 31.67 per cent and 11.4 per cent to $1.31bn (2021: $1.21bn), $703.3m (2021: $534.1m) and $1.22bn (2021: $1.09bn).

Following the close of the quarter, Bally’s and GLPI finalised a sale and leaseback transaction regarding a pair of the former’s casino resort properties. 

This saw the REIT acquire the land and real estate assets of Bally’s Tiverton Casino & Hotel in Tiverton, Rhode Island, and Bally’s Hard Rock Hotel & Casino Biloxi in Biloxi, Mississippi, for a total consideration of $635m.

Those venues were added to operators master lease, with GLPI also retaining the option, subject to receipt by Bally’s of required consents, to acquire the real property assets of Bally’s Twin River Lincoln Casino Resort in Lincoln, Rhode Island, prior to December 31, 2024, for a purchase price of $771m and additional rent of $58.8m.

“Looking forward, we believe GLPI is well positioned to deliver long-term growth based on our gaming operator relationships, our rights and options to participate in select tenants’ future growth and expansion initiatives, and our ability to structure and fund innovative transactions at competitive rates,” added Carlino.

“Our tenants’ strength, combined with GLPI’s balance sheet and liquidity, position the company to consistently grow its cash flows and build value for shareholders in 2023 and beyond.”