Quarterly earnings of $394 million reported by Gaming and Leisure Properties in the second quarter
Gaming and Leisure Properties (GLPI) has announced its financial results for Q2 2025, showcasing a robust performance despite some minor deviations from analyst expectations. The REIT reported a 3.8% year-over-year increase in total revenue to $394.9 million, though income from operations and net income dipped slightly.
The company's Adjusted Funds From Operations (AFFO) rose 4.4% to $276.1 million, surpassing prior-year levels and analyst forecasts. This strong cash flow growth indicates GLPI's successful operational management and proactive acquisition strategy.
While GAAP net income declined to $156.2 million from $214.4 million in Q2 2024, the softness was primarily due to rising credit loss provisions and a decrease in GAAP earnings per share.
Key Financial Metrics for Q2 2025:
| Metric | Q2 2025 | Q2 2024 | |----------------------------|------------------|------------------| | Total Revenue | $394.9 million | $380.6 million | | Income from Operations | $242.1 million | $293.4 million | | Net Income | $156.2 million | $214.4 million | | FFO | $224.9 million | $279.2 million | | AFFO | $276.1 million | $264.4 million | | AFFO per share | $0.96 | $0.94 | | Dividend per share (annualized) | $3.12 | $3.04 | | Dividend yield | 6.68% | 6.72% |
GLPI also increased its annualized dividend to $3.12 per share, maintaining a robust REIT distribution.
In terms of business developments and future plans, GLPI is actively expanding through acquisitions and partnerships, particularly in regional gaming. The company expects growth driven by new financing commitments and lease modifications, a significant funding deal with PAN Entertainment for relocating Hollywood Casino Joliet, and a strategic focus on tribal gaming acquisitions and disciplined portfolio expansion.
GLPI has made significant strides in its partnerships, funding the landside conversion of Bally's Belle of Baton Rouge Casino in Louisiana, with the hotel now open and the project anticipated to be completed in Q4. The company is also working with Bally's to finalize plans for an integrated casino adjacent to the new stadium in Las Vegas.
Moreover, GLPI has agreed to a five-year extension with Boyd Gaming for their Master Lease, with the $28.9 million in annual rental income from the transferred properties being reallocated to the new lease. The company has also funded $25.8 million for the Ione Band of Miwok Indians' Acorn Ridge Casino development.
GLPI has submitted applications for three available downstate casinos in New York, providing financial support for two projects. One of the New York projects is located at Brooklyn's Coney Island, and the other is at the Bally's Links golf course project in Ferry Point.
GLPI Chairman and CEO Peter Carlino stated that the company's Q2 results were due to recent acquisitions, financing arrangements, contractual escalators, and percentage rent adjustments.
Bally's closed Thursday at $47.15 on the Nasdaq, with a slight increase of $0.02 or 0.04%.
In summary, while GAAP net income has softened, the company’s cash flow (AFFO) and revenue growth reflect successful operational management and a proactive acquisition strategy. GLPI’s outlook for 2025 includes adjusted FFO guidance between $1.112 billion and $1.118 billion, with anticipated ongoing investments in its gaming property portfolio.
- Despite a slight dip in income from operations and net income, GLPI's Adjusted Funds From Operations (AFFO) surpassed prior-year levels and analyst forecasts, indicating the company's successful operational management and proactive acquisition strategy, especially in the gaming industry.
- With its focus on tribal gaming acquisitions and disciplined portfolio expansion, GLPI expects growth driven by new financing commitments, strategic partnerships, and significant investments in regional casinos like the one planned in Las Vegas, further cementing its presence within the casino-and-gambling sector.
- In line with its active expansion strategy, GLPI has submitted applications in the casino-and-gambling industry for three available downstate casinos in New York, positioning itself as a key player in both the casino-games market and the broader casino-culture landscape.
