WYOMISSING, PA — Gaming and Leisure Properties Inc. (NASDAQ: GLPI) raised its 2026 earnings outlook after acquisitions, development funding and higher lease income drove record second-quarter revenue and adjusted funds from operations.
The casino-property real estate investment trust now expects full-year adjusted funds from operations of $1.219 billion to $1.225 billion, or $4.10 to $4.12 per diluted share and partnership unit. Its previous forecast called for $1.212 billion to $1.223 billion, or $4.08 to $4.12 per share.
Second-quarter revenue increased 9% to $430.5 million from $394.9 million a year earlier. Adjusted funds from operations rose 10.1% to $304 million, or $1.03 per share, from $276.1 million, or 96 cents per share.
Net income climbed to $234.9 million, or 80 cents per diluted share, from $156.2 million, or 54 cents per share. Adjusted EBITDA increased 12.2% to $405.5 million.
The year-over-year profit increase also reflected a sharp reduction in the provision for credit losses, which fell to $3 million from $53.7 million. Income from operations rose to $332.4 million from $242.1 million.
Rental income increased to $366.2 million from $339.5 million. Income from financing leases and receivables rose to $52.9 million, while interest income from real estate loans more than doubled to $7.6 million.
Chairman and Chief Executive Officer Peter Carlino attributed the results to recent acquisitions, development investments and improved performance among regional gaming operators.
“Recent acquisitions and an expanding base of leading regional gaming operators and tribal relationships are fueling our pipeline,” Carlino stated.
GLPI invested $191 million in tenant development projects during the quarter, including completion of its $225 million funding commitment for PENN Entertainment Inc.’s Hollywood Casino Aurora conversion. The company expects to provide an additional $400 million to $450 million during the second half, bringing 2026 development spending to between $750 million and $800 million.
The company also exercised an option in February to acquire the real estate of Bally’s Twin River Lincoln Casino Resort for $700 million, adding $56 million in annual rent at an 8% capitalization rate. In January, GLPI committed as much as $467 million to the Live! Virginia Casino & Hotel project.
GLPI’s leverage stood at 4.8 times net debt to adjusted EBITDA at June 30, below its target range of 5 to 5.5 times. Management indicated that the balance sheet could support its announced investments without another equity issuance.
The company raised its quarterly dividend to 82 cents per share from 78 cents, a 5.1% increase. The annualized dividend was $3.28 per share, representing a 7.4% yield based on the June 30 share price.
GLPI owned interests in 71 gaming and related properties across 21 states as of June 30. Its portfolio includes facilities operated by PENN Entertainment, Caesars Entertainment, Boyd Gaming and Bally’s, along with projects involving tribal and regional operators.
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