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1. Company Snapshot

1.a. Company Description

GLPI is engaged in the business of acquiring, financing, and owning real estate property to be leased to gaming operators in triple-net lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties.

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1.b. Last Insights on GLPI

Gaming and Leisure Properties' recent performance was negatively impacted by a lackluster Q2 2025 earnings release, which failed to exceed expectations despite a 2.6% dividend increase. The company's FFO of $0.96 per share matched the Zacks Consensus Estimate, but a year-over-year comparison revealed a slight decline from $0.94 per share. Additionally, the company's full-year guidance update was not provided, leaving investors with uncertainty about future growth prospects.

1.c. Company Highlights

2. GLPI's Q3 2025 Earnings: A Strong Performance

Gaming and Leisure Properties, Inc. (GLPI) reported a robust third quarter in 2025, with total income from real estate surpassing the same quarter in 2024 by over $12 million, primarily driven by increases in cash rent of $20 million from acquisitions, including Bally's Kansas City and Shreveport, the Chicago land lease, and other developments. The company's actual EPS came out at $0.97, beating estimates of $0.96. GLPI's financial performance was strong, with a significant increase in cash rent and a blended cap rate of 9.3% through three recent transactions, which will add over 5% to current annualized cash rent.

Publication Date: Nov -16

📋 Highlights
  • Q3 2025 Real Estate Income Surge: Total income from real estate rose $12M YoY, driven by $20M cash rent increases from recent acquisitions.
  • Capital Deployment Expansion: $875M deployed at 9.3% blended cap rate, adding >5% to annualized cash rent and expanding tenant partnerships.
  • Strong Liquidity and Leverage: $3B funding pipeline; leverage at 4.4x (below target 5.1x) despite $1.3B bond issuance and $975M debt redemption.
  • Debt Management Success: Raised $363.3M via forward sale and $1.3B in new bonds, maintaining under 5.1x leverage with low capital constraints.
  • AFFO Guidance Raised: Full-year 2025 AFFO now $3.86-$3.88/share, reflecting strong tenant performance and stable regional gaming trends.

Capital Deployment and Funding

The company deployed $875 million of capital through three recent transactions and has a funding pipeline standing at over $3 billion. GLPI can fund future commitments solely with debt financing, maintaining a leverage ratio of approximately 5.1x, and has taken steps to optimize its debt structure by raising $363.3 million through a forward sale agreement and issuing $1.3 billion in new bonds, redeeming its sole 2026 maturity of $975 million. As a result, GLPI's leverage ratio is currently at 4.4x, well below its target and historical levels.

Regional Gaming Trends and Partnerships

Regional gaming trends have been strong, with tenants reporting solid performance, and foot traffic remaining steady. GLPI extended its option to acquire Bally's Twin River Lincoln by two years to 2028, demonstrating its confidence in the partnership. The company is optimistic about its pipeline, citing increased inbound interest and ongoing education efforts, and remains interested in participating in casino projects, including in New York City, with a right of first refusal associated with Bally's project.

Valuation and Outlook

GLPI's valuation metrics indicate a relatively stable position, with a P/E Ratio of 16.26, P/B Ratio of 2.75, and EV/EBITDA of 13.63. Analysts estimate next year's revenue growth at 5.2%. The company's strong rent coverage ratio, typically around 2x, and its disciplined approach to investments, seeking wider spreads to the cost of capital, position it well for future growth. With a Dividend Yield of 6.92% and a Free Cash Flow Yield of 7.91%, GLPI presents an attractive investment opportunity.

Return Hurdles and Tribal Deals

GLPI seeks wider spreads to the cost of capital, likely 50-150 basis points, and stronger coverage, likely above 2:1, for tribal deals. The company is open to increasing its Vegas exposure if the right opportunity arises, but is not actively looking for deals. With a strong appetite for the market and a focus on getting the spend, facility, market, and EBITDA right, GLPI is well-positioned to capitalize on emerging opportunities.

3. NewsRoom

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Edgestream Partners L.P. Acquires New Position in Gaming and Leisure Properties, Inc. $GLPI

Dec -04

Source: defenseworld.net

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Gaming and Leisure Properties, Inc. Declares Fourth Quarter 2025 Cash Dividend of $0.78 Per Share

Nov -24

Source: globenewswire.com

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BXP vs. GLPI: Which Stock Should Value Investors Buy Now?

Nov -18

Source: zacks.com

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Gaming and Leisure Properties: This Forgotten Casino REIT Has A Near 7% Jackpot Yield

Nov -13

Source: seekingalpha.com

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Gaming and Leisure Properties: An Even Better Opportunity Following Recent Dip And Deals

Nov -02

Source: seekingalpha.com

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Gaming and Leisure Properties, Inc. (GLPI) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Gaming and Leisure Properties (GLPI) Q3 FFO Surpass Estimates

Oct -30

Source: zacks.com

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

Oct -30

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Rental Income

Expected Growth: 3.0%

Rental income growth of 3.0% driven by increasing demand for gaming and leisure properties, fueled by rising disposable income, growing tourism, and expansion of existing properties. Additionally, strategic acquisitions and partnerships contribute to revenue growth, while a strong balance sheet enables reinvestment in high-growth opportunities.

Income from Investment in leases, Financing Receivables

Expected Growth: 3.0%

The 3.0% growth in Income from Investment in leases and Financing Receivables from Gaming and Leisure Properties, Inc. is driven by increasing demand for gaming and leisure activities, expansion of existing properties, and strategic acquisitions. Additionally, favorable interest rates and a strong balance sheet enable the company to optimize its financing structure, leading to improved profitability.

Interest income from real estate loans

Expected Growth: 3.0%

Gaming and Leisure Properties, Inc.'s 3.0% growth in interest income from real estate loans is driven by increasing demand for gaming and leisure facilities, expansion of existing properties, and strategic acquisitions. Additionally, a low-interest-rate environment and a strong balance sheet enable the company to capitalize on growth opportunities, resulting in higher interest income.

7. Detailed Products

Real Estate Investment Trust (REIT)

Gaming and Leisure Properties, Inc. operates as a REIT, providing a diversified portfolio of properties to gaming operators.

Gaming Facility Operations

The company operates gaming facilities, including casinos, hotels, and racetracks, offering a range of gaming, hospitality, and entertainment options.

Casino Development and Management

GLPI develops and manages casinos, providing expertise in design, construction, and operational management.

Racing and Sports Wagering

The company operates racetracks and offers sports wagering services, providing a platform for horse racing and sports betting.

8. Gaming and Leisure Properties, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Gaming and Leisure Properties, Inc. operates in a niche market, providing a unique product offering. However, there are substitutes available in the market, such as online gaming platforms and other forms of entertainment. The threat of substitutes is moderate, as customers have some alternatives, but they are not easily substitutable.

Bargaining Power Of Customers

Gaming and Leisure Properties, Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's customers are primarily individual gamers and tourists, who do not have the ability to negotiate prices or terms.

Bargaining Power Of Suppliers

Gaming and Leisure Properties, Inc. has a diverse supplier base, and no single supplier has significant bargaining power. The company's suppliers are primarily providers of goods and services, such as food and beverage suppliers, and do not have the ability to negotiate prices or terms.

Threat Of New Entrants

The gaming and leisure industry is highly regulated, and new entrants face significant barriers to entry. However, the industry is also highly competitive, and new entrants can potentially disrupt the market. The threat of new entrants is high, as new companies can potentially enter the market and compete with Gaming and Leisure Properties, Inc.

Intensity Of Rivalry

The gaming and leisure industry is highly competitive, with many established players competing for market share. Gaming and Leisure Properties, Inc. faces intense competition from other gaming and leisure companies, and the intensity of rivalry is high.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.46%
Debt Cost 4.71%
Equity Weight 38.54%
Equity Cost 8.65%
WACC 6.23%
Leverage 159.49%

11. Quality Control: Gaming and Leisure Properties, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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EPR Properties

A-Score: 7.1/10

Value: 5.2

Growth: 3.9

Quality: 8.1

Yield: 9.0

Momentum: 7.0

Volatility: 9.3

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Hannon Armstrong

A-Score: 6.5/10

Value: 9.1

Growth: 4.4

Quality: 6.4

Yield: 10.0

Momentum: 3.5

Volatility: 5.7

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Rayonier

A-Score: 6.5/10

Value: 5.1

Growth: 5.4

Quality: 7.7

Yield: 9.0

Momentum: 3.0

Volatility: 8.7

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Gaming and Leisure Properties

A-Score: 6.4/10

Value: 3.8

Growth: 4.4

Quality: 6.5

Yield: 10.0

Momentum: 3.5

Volatility: 10.0

1-Year Total Return ->

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Lamar

A-Score: 5.7/10

Value: 2.6

Growth: 5.1

Quality: 6.5

Yield: 8.0

Momentum: 3.5

Volatility: 8.7

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Weyerhaeuser

A-Score: 4.8/10

Value: 2.3

Growth: 3.0

Quality: 5.1

Yield: 8.0

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

42.77$

Current Price

42.77$

Potential

-0.00%

Expected Cash-Flows