Core Points - Gaming and Leisure Properties, Inc. (GLPI) declared a cash dividend of $0.78 per share for Q4 2025, payable on December 19, 2025, to shareholders of record on December 5, 2025 [1] - The current dividend reflects an annualized yield of 7.25%, based on a closing share price of $43.04 on November 21, 2025, compared to the previous year's Q4 dividend of $0.76 per share [1] Company Overview - GLPI is engaged in acquiring, financing, and owning real estate properties to be leased to gaming operators under triple-net lease arrangements, where tenants are responsible for all maintenance, insurance, taxes, and utilities related to the leased properties [3] - The company intends to pay regular quarterly cash dividends in the foreseeable future, with all subsequent dividends subject to quarterly review and declaration by the Board of Directors [2]

Core Insights - The article compares Boston Properties (BXP) and Gaming and Leisure Properties (GLPI) to determine which stock offers better value for investors [1] Valuation Metrics - BXP has a forward P/E ratio of 10.05, while GLPI has a forward P/E of 11.39 [5] - BXP's PEG ratio is 6.48, indicating a more favorable valuation compared to GLPI's PEG ratio of 9.34 [5] - BXP's P/B ratio is 1.46, compared to GLPI's P/B of 2.51, suggesting BXP is undervalued relative to its book value [6] Investment Grades - Both BXP and GLPI have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions [3] - BXP holds a Value grade of B, while GLPI has a Value grade of C, suggesting BXP is the superior value option [6][7]

Core Viewpoint - The article highlights the prominence of VICI Properties in the casino REIT sector while also emphasizing the potential of Gaming and Leisure Properties as a regional casino REIT [1]. Group 1: Company Overview - VICI Properties is recognized for its significant attention in the casino REIT space due to its market position and performance [1]. - Gaming and Leisure Properties, while less spotlighted, is noted for its contributions and potential within the same sector [1]. Group 2: Investment Perspective - The article suggests a focus on dividend investing, particularly in quality blue-chip stocks, BDCs, and REITs, indicating a strategy aimed at long-term financial independence [1]. - The author expresses a commitment to helping lower and middle-class workers build investment portfolios centered on high-quality, dividend-paying companies [1].

Group 1 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched more than 1000 companies, focusing on metals and mining stocks, as well as other industries like consumer discretionary, REITs, and utilities [1] - The analyst transitioned from writing a blog to creating a value investing-focused YouTube channel, where they have researched hundreds of companies [1]

Financial Performance - Total revenue for Q3 2025 increased by 3.2% year-over-year to $397.6 million, while cash revenue expanded by 5.8% to $375.7 million[5] - Net income for Q3 2025 was $248.5 million, up from $190.1 million in Q3 2024, resulting in a diluted earnings per share of $0.85 compared to $0.67[2] - Funds from Operations (FFO) for Q3 2025 reached $315.5 million, a 25.8% increase from $250.6 million in Q3 2024[2] - Adjusted Funds From Operations (AFFO) grew by 5.1% to $282.0 million in Q3 2025, with AFFO per diluted share at $0.97 compared to $0.95 in the prior year[2] - Total rental income for Q3 2025 was $341.755 million, a 2.3% increase from $333.244 million in Q3 2024[23] - Net income for Q3 2025 was $248.481 million, compared to $190.100 million in Q3 2024, representing a 30.6% year-over-year increase[23] - Earnings per common share for Q3 2025 were $0.85, up from $0.67 in Q3 2024, reflecting a 26.9% increase[23] - Operating expenses for Q3 2025 totaled $60.447 million, significantly down from $113.897 million in Q3 2024, a decrease of 46.9%[23] - Income from operations for the nine months ended September 30, 2025, was $838.061 million, compared to $822.479 million for the same period in 2024, a slight increase of 1.9%[23] - Comprehensive income for the nine months ended September 30, 2025, was $575.958 million, compared to $584.038 million for the same period in 2024[23] Guidance and Future Expectations - The company updated its full-year 2025 AFFO guidance to between $1.115 billion and $1.118 billion, or between $3.86 and $3.88 per diluted share[15] - The company expects to fund approximately $280 million related to current development projects in Q4 2025[18] - The guidance does not account for potential future acquisitions or dispositions beyond the $150 million funding for the M Resort hotel tower project[18] - The company anticipates growth in cash flows and AFFO guidance for 2025, benefiting from portfolio additions and recent transactions[58] Investments and Commitments - GLPI committed $225 million for the Caesars Republic Sonoma County project, with a term loan of $180 million at a fixed rate of 12.50%[8] - The acquisition of Sunland Park Racetrack & Casino for $183.75 million is expected to be immediately accretive to AFFO per share, with an initial cap rate of 8.2%[9] - The company funded $130 million for the relocation of Hollywood Casino Joliet at a 7.75% cap rate, part of a larger funding agreement with PENN Entertainment[7] - The company has various funding commitments totaling $1,675.5 million, with $130 million already funded for the relocation of Hollywood Casino Joliet and $75.6 million for hotel renovation at The Belle[41][43] - The company has a total of $1,735 million in commitments for future investments in gaming and related facilities, with several projects still pending funding[40] - The company has committed to funding a hotel tower project at M Resort for $150 million, expected to be funded on November 3, 2025[42] Debt and Equity - Long-term debt, net of unamortized costs, was $7.2 billion as of September 30, 2025, down from $7.7 billion at the end of 2024[36] - The company reported a total equity attributable to Gaming and Leisure Properties of $4.6 billion as of September 30, 2025, compared to $4.3 billion at the end of 2024[36] - The company has a total of $1,175 million in senior unsecured notes maturing between 2028 and 2034, with varying interest rates from 3.250% to 6.750%[38] - As of September 30, 2025, the total long-term debt of the company is $7,201.213 million, with a weighted average interest rate of 5.083%[38] Operational Metrics - GLPI's lease coverages remain strong, with major tenants exhibiting rent coverage of over 1.8x on a per tenant basis, accounting for approximately 97% of cash rent[4] - The coverage ratio for the Penn 2023 Master Lease is reported at 1.88, indicating strong rent coverage by tenants[47] - Bally's Master Lease II has a coverage ratio of 2.78 as of June 30, 2025, indicating strong revenue to rent coverage[49] - Boyd Master Lease has a coverage ratio of 2.46 at June 30, 2025, demonstrating solid financial health[50] - Pennsylvania Live! Master Lease has a coverage ratio of 2.50 at June 30, 2025, indicating robust performance[51] - The default adjusted revenue to rent coverage for the Tropicana Lease is 1.35, ensuring financial stability[53] Risk Factors - Risks include the ability to complete casino projects under development and the impact of inflation on consumer spending[58] - The company must maintain its REIT status, which is subject to complex regulatory requirements[58] - The ability to generate sufficient cash flows to meet financial covenants is critical for the company's operations[58] Non-GAAP Measures - Cash Net Operating Income (Cash NOI) is used as a performance measure to evaluate the operating performance of the company's real estate operations[54] - The company believes that FFO and AFFO provide a meaningful perspective of underlying operating performance, excluding real estate depreciation[54] - FFO and AFFO are defined as net income excluding certain expenses, with AFFO adjusted for stock-based compensation and capital maintenance expenditures[55] - Adjusted EBITDA excludes general and administrative expenses, providing a clearer view of operational performance[55] - The company emphasizes that non-GAAP measures should not be viewed as alternatives to GAAP measures[56] Investor Relations - The company is committed to providing accurate financial information and maintaining investor relations[59] - Forward-looking statements are subject to various risks and uncertainties that could affect future performance[58]

Financial Data and Key Metrics Changes - For Q3 2025, total income from real estate increased by over $12 million compared to Q3 2024, primarily driven by a $20 million increase in cash rent [11] - Operating expenses decreased by $53.5 million due to non-cash adjustments in the provision for credit losses and a less pessimistic economic forecast [12] - The company raised its full-year 2025 AFFO guidance to a range of $3.86 to $3.88 per diluted share [12][13] Business Line Data and Key Metrics Changes - Cash rent increases were attributed to several acquisitions, including Bally's Kansas City and Shreveport, which contributed an additional $8 million [11] - The Chicago land lease increased cash income by $3.9 million, while the recognition of escalators and percentage rent adjustments added about $4.2 million [11] Market Data and Key Metrics Changes - Regional gaming has shown strong performance, with no significant threats observed despite broader economic concerns [18][19] - Foot traffic in regional markets remains steady, indicating resilience in demand [20] Company Strategy and Development Direction - The company announced three transactions in the last 60 days, deploying $875 million of capital at a blended cap rate of 9.3% [4][5] - The company is focusing on expanding partnerships with existing tenants and exploring opportunities in tribal gaming [5][36] - The company has a significant pipeline of announced transaction activity exceeding $3 billion [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current liquidity position and the ability to fund future commitments solely through debt financing [17] - The company views the current valuation of its equity as unattractive for tapping the equity market [5] - Management remains optimistic about the Chicago development project, noting significant progress and a strong ROI framework [8][9] Other Important Information - The company extended its option to acquire Bally's Twin River Lincoln by two years, indicating a strategic approach to asset management [14] - The leverage ratio is currently at 4.4 times, below historical levels, providing flexibility for future funding [13] Q&A Session Summary Question: How comfortable is the company with its current liquidity profile and leverage? - Management indicated comfort with a leverage ratio of 5.1 times if funded entirely through debt, which is within their historical range [17] Question: What is the outlook for regional gaming performance? - Management noted that regional gaming has held up well, with strong coverage and no significant threats to the industry [18][19] Question: What changes occurred in the expected fourth-quarter development funding? - The company reduced Chicago development funding by $25 million, pushing it into 2026 due to timing adjustments [24] Question: How does the company view the New York City casinos? - The appetite for participation in New York remains strong, with management considering the potential for significant EBITDA from the projects [43] Question: What are the return hurdles for tribal deals? - The company is looking for increased coverage on tribal assets, with a focus on stronger coverage than typical commercial deals [46] Question: How does the company approach equity issuance? - The company looks at equity issuance opportunistically, with no current interest in funding with equity at the present share price levels [103][104]

Company Overview - GLPI owns a geographically diversified portfolio of high-quality regional gaming assets, comprising 68 properties across 20 states[12] - The company's total enterprise value is approximately $20 billion[15] - Approximately 88.2% of GLPI's cash rent comes from gaming companies with public reporting[15] Recent Developments and Transactions - GLPI extended its option to acquire Bally's Twin River Lincoln Casino Resort's real property assets for $735 million, with additional rent of $58.8 million, extending the applicable dates to December 31, 2028, and October 1, 2028, respectively[17] - The company announced a transaction with Cordish to acquire land and fund the construction of Live! Virginia Casino & Hotel for a total commitment of $467 million at an 8.0% cap rate[17] - GLPI provided initial development funding of $125.4 million to Bally's Chicago as part of a $940 million development commitment at an 8.5% cap rate[17] - The company acquired the real estate assets of Sunland Park Racetrack and Casino for $183.75 million at an initial 8.2% cap rate[17] - During the third quarter of 2025, the company sold 7.59 million shares under forward sale agreements for a gross sales price of $363.3 million[17] - GLPI issued $600 million of Senior Notes due 2033 (5.25%) and $700 million of Senior Notes due 2037 (5.75%) in August 2025[17] - The company redeemed $975 million of Senior Notes due 2026[17] Financial Performance and Guidance - The company's 2025 AFFO guidance is between $1,115 million and $1,118 million, with AFFO per share between $3.86 and $3.88[18] - Adjusted Funds from Operations (AFFO) for 3Q25 was $282.019 million, a 5.1% increase year-over-year[42] - Net income for 3Q25 was $248.481 million, a 30.7% increase year-over-year[42]

Core Insights - Gaming and Leisure Properties (GLPI) reported quarterly funds from operations (FFO) of $0.97 per share, exceeding the Zacks Consensus Estimate of $0.96 per share, and showing an increase from $0.95 per share a year ago, resulting in an FFO surprise of +1.04% [1] - The company generated revenues of $397.61 million for the quarter ended September 2025, which fell short of the Zacks Consensus Estimate by 0.49%, but represented an increase from $385.34 million year-over-year [2] - The stock has underperformed the market, losing approximately 9.4% since the beginning of the year, while the S&P 500 has gained 17.2% [3] Financial Performance - Over the last four quarters, GLPI has surpassed consensus FFO estimates two times, but has not beaten consensus revenue estimates during the same period [2] - The current consensus FFO estimate for the upcoming quarter is $0.97, with projected revenues of $405.65 million, and for the current fiscal year, the estimate is $3.86 on $1.6 billion in revenues [7] Market Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and future FFO expectations [3][4] - The Zacks Industry Rank places the REIT and Equity Trust - Other sector in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The estimate revisions trend for GLPI was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Interest and Structure - As of September 30, 2025, GLPI holds a 97.1% controlling financial interest in GLP Capital[167]. - The Company was incorporated on February 13, 2013, and spun off from PENN on November 1, 2013[166]. - The Company operates under a self-administered and self-managed REIT structure[166]. Lease Coverage Ratios - The Coverage ratio for the Penn 2023 Master Lease was reported at 1.88 as of June 30, 2025[170]. - The Coverage ratio for the Amended Pinnacle Master Lease was reported at 1.69 as of June 30, 2025[171]. - The minimum coverage ratio for certain leases must be 1.8 to 1 before a rent escalation of up to 2% can occur[169]. - Bally's Master Lease II has a default adjusted revenue to rent coverage ratio of 1.35, with a coverage ratio projected at 2.78 by June 30, 2025[172]. - The Boyd Master Lease has a default adjusted revenue to rent coverage of 1.4, with a coverage ratio of 2.46 expected by June 30, 2025[174]. - The Pennsylvania Live! Master Lease has a default adjusted revenue to rent coverage of 1.4, with a coverage ratio projected at 2.50 by June 30, 2025[176]. - The Tropicana Lease has a default adjusted revenue to rent coverage of 1.35, with a coverage ratio not available for June 30, 2025[178]. Financial Performance - Total revenues for Q3 2025 were $397.6 million, up from $385.3 million in Q3 2024, representing a 3.0% increase[186]. - Income from operations for Q3 2025 was $337.2 million, compared to $271.4 million in Q3 2024, reflecting a 24.2% increase[186]. - Net income for Q3 2025 increased by $58.4 million to $248.5 million compared to $190.1 million in Q3 2024[188]. - Total revenues for the nine months ended September 30, 2025, were $1,187.7 million, up from $1,141.9 million in the prior year, a 4.0% increase[186]. - The company experienced a decrease in net income for the nine months ended September 30, 2025, to $575.0 million from $584.0 million in the prior year, a decline of 1.5%[197]. Real Estate and Acquisitions - The Company is focused on acquiring, financing, and owning real estate properties to be leased to gaming operators[168]. - The company has committed $225 million for the relocation of Hollywood Casino Aurora, with no funds yet disbursed[180]. - The company has funded $130 million for the relocation of Hollywood Casino Joliet as of September 30, 2025[180]. - The company anticipates funding $940 million for real estate construction costs for Bally's Chicago, with $125.4 million already funded in October 2025[182]. - The company has committed $150 million for the construction of a hotel tower at the M Resort, anticipated to be funded in early November 2025[181]. Operating Expenses and Income - Total operating expenses decreased by $53.5 million for Q3 2025, mainly due to a decline in the provision for credit losses by $65.0 million[187]. - Total operating expenses for the nine months ended September 30, 2025, increased by $30.2 million compared to the prior year, driven by higher land rights and ground lease expenses[187]. - Land rights and ground lease expense increased by $5.8 million for the nine months ended September 30, 2025, due to the acquisition of real estate assets in Bally's Master Lease II[207]. - General and administrative expenses rose by $6.0 million for the nine months ended September 30, 2025, impacted by a $6.3 million executive severance charge[208]. Cash Flow and Debt - Net cash provided by operating activities was $786.2 million for the nine months ended September 30, 2025, an increase of $5.8 million from $780.4 million in 2024[222]. - Financing activities used cash of $830.6 million during the nine months ended September 30, 2025, primarily due to the repayment of long-term debt of $1,825.2 million[224]. - The Company has $7.20 billion of debt outstanding with a weighted average maturity of 7.2 years and an interest rate of 5.08% as of September 30, 2025[229]. - The Company entered into a new $1.25 billion ATM program during the nine months ended September 30, 2025, with $886.7 million remaining for issuance[234]. Risks and Economic Conditions - The Company faces risks related to inflation rates, interest rates, and the financial strength of its tenants[164]. - The company faces risks related to economic conditions, including high inflation and its impact on consumer spending for leisure and gaming activities[192]. - Interest rate risk is a primary market risk exposure, with $6.35 billion of obligations being senior unsecured notes with fixed interest rates[237].

Core Viewpoint - Gaming and Leisure Properties, Inc. (GLPI) reported strong financial results for Q3 2025, with record revenue, AFFO, and Adjusted EBITDA, driven by a diversified tenant base and strategic acquisitions [6][19]. Financial Highlights - Total revenue for Q3 2025 was $397.6 million, a 3.2% increase from $385.3 million in Q3 2024 [2]. - Income from operations rose to $337.2 million from $271.4 million year-over-year [2]. - Net income increased to $248.5 million compared to $190.1 million in the previous year [2]. - Funds from Operations (FFO) reached $315.5 million, up from $250.6 million [2]. - Adjusted Funds From Operations (AFFO) grew to $282.0 million from $268.2 million [2]. - Adjusted EBITDA was $366.4 million, an increase from $346.4 million [2]. - The annualized dividend per share was $3.12, with a dividend yield of 6.69% [2]. Recent Developments - GLPI's lease coverages remain strong, with major tenants exhibiting rent coverage of over 1.8x [6]. - The company has committed significant funding for various projects, including $130 million for the relocation of Hollywood Casino Joliet and $225 million for Caesars Republic Sonoma County [9][10]. - GLPI acquired the real estate assets of Sunland Park Racetrack & Casino for $183.75 million, which is expected to be accretive to AFFO per share [11]. - The company is actively pursuing opportunities in tribal gaming and has established a unique funding agreement with the Ione Band of Miwok Indians [10]. Portfolio Update - As of September 30, 2025, GLPI's portfolio included interests in 68 gaming and related facilities across 20 states, with significant operators such as PENN and Caesars Entertainment [21].