WYOMISSING, PA — Gaming and Leisure Properties Inc. (NASDAQ: GLPI) raised the lower end of its 2026 earnings outlook after third-quarter revenue increased 9.5% to a record $435.4 million, supported by casino real estate investments and rental income growth, even as net profit declined.
The Pennsylvania-based real estate investment trust reported adjusted funds from operations, a key measure of REIT performance, of $311.7 million for the quarter ended Sept. 30, up 10.5% from $282 million a year earlier. Adjusted FFO per diluted share and partnership unit increased to $1.04 from 97 cents.
Net income fell 14% to $213.8 million from $248.5 million, while diluted earnings per share declined to 71 cents from 85 cents. Operating income decreased to $309.9 million from $337.2 million.
The decline reflected a $36.2 million provision for credit losses during the quarter, compared with a $37.4 million credit-loss benefit a year earlier. The change increased reported operating expenses despite higher property income.
Adjusted earnings before interest, taxes, depreciation and amortization increased 13% to $413.9 million from $366.4 million.
GLPI now expects full-year adjusted FFO of $1.222 billion to $1.225 billion, compared with its previous forecast of $1.219 billion to $1.225 billion. The revised per-share range is $4.11 to $4.12, up from $4.10 to $4.12.
The updated outlook incorporates approximately $265 million in additional development funding, bringing projected 2026 development spending to $800 million.
Chairman and Chief Executive Officer Peter Carlino attributed the operating gains to the company’s long-term casino leases and financing arrangements, which generate recurring income from gaming operators.
“Regional gaming has proven its resilience for decades, and it is doing so again,” Carlino stated, citing year-over-year improvements in same-store operator results through the first nine months of 2026.
The earnings report follows GLPI’s Oct. 27 agreement with Prologis Inc. (NYSE: PLD) to redevelop the former Hollywood Casino Joliet property in Illinois into a warehouse and distribution complex.
Under the joint venture, GLPI will contribute land in three phases, while Prologis will manage development. Subject to municipal approval, the project is expected to comprise five buildings totaling more than 3.8 million square feet over approximately five years.
GLPI would receive a $61 million capital account credit if all three phases proceed and retain an approximately 20% ownership interest, potentially increasing to 30% through additional capital contributions.
The transaction would diversify the use of a former gaming property into industrial real estate while preserving an ownership stake for GLPI.
The company also continued funding casino development projects during 2026.
In June, GLPI completed its $225 million financing commitment for PENN Entertainment Inc.’s (NASDAQ: PENN) Hollywood Casino and Hotel Aurora landside development in Illinois, providing the final $216.3 million at a 7.75% capitalization rate.
In February, GLPI acquired the real estate assets of Bally’s Lincoln Casino Resort in Rhode Island for $700 million, adding $56 million in annual rent at an 8% capitalization rate.
The company also committed up to $440 million toward construction of Live! Casino & Hotel Virginia and acquired the project’s land for $27 million, establishing a $467 million investment commitment at an 8% capitalization rate.
Its financing arrangements extend to the Hard Rock Casino Rockford property in Illinois, where a June loan amendment resulted in a $16 million principal repayment and extended maturity to Dec. 31, 2029.
For the first nine months of 2026, GLPI generated approximately $1.286 billion in revenue, compared with $1.188 billion during the corresponding period of 2025. Net income increased to $688.2 million from $575 million, while adjusted FFO rose to $912.8 million from $830.1 million.
Rental income totaled $371 million in the third quarter, compared with $341.8 million a year earlier. Income from financing leases increased to $53 million from $48.1 million, while interest income from real estate loans rose to $7.7 million from $4 million.
Interest expense increased to $98.9 million from $94.1 million, reflecting the company’s borrowing obligations as its investment portfolio expanded.
GLPI reported approximately $8.16 billion in outstanding long-term debt at Sept. 30, with a weighted average interest rate of 5.1% and an average remaining maturity of 6.6 years.
The company issued $800 million in senior notes in March at a 5.625% coupon, using proceeds to repay term loan borrowings and support general corporate purposes. It also raised $351 million in June through the issuance of approximately 7.6 million common shares under a forward sale agreement.
Total assets reached $14.1 billion at quarter-end, compared with $12.91 billion at the end of 2025. Cash and cash equivalents stood at $165.8 million.
GLPI’s portfolio included interests in 71 gaming and related facilities across 21 states, with major tenants including PENN Entertainment, Bally’s Corp., Caesars Entertainment and Boyd Gaming.
The company declared a third-quarter dividend of 82 cents per common share, paid Sept. 25 to shareholders of record as of Sept. 11. Its annualized dividend increased to $3.28 per share from $3.12 a year earlier.
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