WYOMISSING, PA — Gaming and Leisure Properties, Inc. (NASDAQ: GLPI), a leader in the gaming real estate sector, has reported record first quarter results for the fiscal year ending March 31, 2024. Notably, the company’s revenue rose 5.8% year-over-year to $376.0 million due to a stable portfolio of tenants from the gaming industry and successful capital market strategies.
CEO Peter Carlino expressed a positive outlook for the company’s future growth, highlighting the recent dividend payment of $0.76 per share, which translates to an approximate yield of 7% based on the recent closing share price. “Our strategies have set the stage for continued growth and dividend increases,” Carlino said.
In its ongoing pursuit of expanding its portfolio, GLPI has acquired the real estate assets of Tioga Downs Casino Resort in Nichols, NY from American Racing & Entertainment, LLC. This acquisition adds more diversity to the company’s portfolio, which now includes 62 properties across 19 states leased to eight tenants. The 30-year lease agreement with American Racing is projected to deliver a rent coverage ratio over 2.3x, suggesting robust financial returns.
GLPI’s commitment to partnering with top-tier gaming operators has led to the completion of transactions valued at over $1.1 billion in 2023, which included traditional real estate acquisitions and loan funding commitments. Despite a challenging market, the company’s creative financing solutions have added significant value to its tenant partnerships.
In addition to boasting a strong balance sheet, GLPI also anticipates continued financial growth in 2024 and beyond. Backed by a focus on stable and resilient regional gaming markets and disciplined capital investment approach, the company plans to further increase its cash dividend and drive long-term shareholder value.
In February 2024, the company secured the real estate assets of Tioga Downs Casino Resort for $175.0 million. The acquisition was quickly followed by a 30-year triple-net lease agreement with American Racing. An additional $14 million was drawn from the $150 million loan commitment for a developmental project in Rockford, Illinois, which is slated to be completed by September 2024, further illustrating GLPI’s strategic business growth.
As per the updated guidance for 2024, the company projects its AFFO (Adjusted Funds from Operations) to range between $1,042 million and $1,051 million, or between $3.71 and $3.74 per share. This prediction is a slight increase over the previous estimate and indicates a promising trend of growth for GLPI.
GLPI’s current portfolio includes interests in 62 gaming and related facilities spread across 19 states, making the company a formidable player in the gaming real estate industry. As GLPI continues to strategically expand its portfolio and develop innovative financing solutions, shareholders can expect to see continued growth and solid returns on their investments.
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