Gaming and Leisure Properties, Inc.

What they do

GLPI acquires, finances and owns real estate leased to gaming operators in triple-net arrangements, and also extends loans that can convert into leased rent upon project completion or stabilization. As of December 31, 2025, the portfolio consisted of interests in 69 gaming and related facilities across 20 states, including properties operated by PENN, Caesars, Boyd, Bally's, Cordish, Hard Rock, Strategic and American Racing. GLPI operates as an umbrella partnership REIT, with substantially all business conducted through GLP Capital, L.P., and owned 97.1% of GLP Capital's outstanding units as of December 31, 2025.

Revenue drivers

• Triple-net lease rent from gaming operators — The primary revenue source is rent from 69 gaming and related facilities leased to operators such as PENN, Caesars, Boyd, Bally's, Cordish, Hard Rock, Strategic and American Racing. Approximately 97% of cash rent comes from five tenants.
• PENN Entertainment relationship — GLPI's largest tenant relationship is with PENN, which operates 34 of the 69 gaming and related facilities in the portfolio, making PENN rent a material concentration.
• Bally's portfolio and development pipeline — Bally's operates 15 gaming and related facilities, plus one facility under development, Bally's Chicago, for which GLPI has agreed to provide construction development funding.
• Development and sale-leaseback transactions — GLPI funds tenant development projects and executes sale-leaseback transactions, which add leased rent. During the second quarter of 2026 it invested $191 million in tenant developments.

Recent performance

For the quarter ended June 30, 2026, GLPI reported record total revenue of $430.5 million, up 9.0% from $394.9 million a year earlier, and income from operations of $332.4 million versus $242.1 million. Net income was $234.9 million, or $0.80 per diluted share, compared with $156.2 million, or $0.54 per diluted share, in the prior-year quarter. AFFO rose 10.1% to $304.0 million and Adjusted EBITDA increased 12.2% to $405.5 million. FFO per diluted share and OP LTIP units was $1.03, up from $0.79, and AFFO per diluted share and OP LTIP units was $1.03 versus $0.96. The company also raised its quarterly dividend to $0.82 per share, a 5.1% increase over the prior $0.78.

Strategy

GLPI states it intends to continue growing its portfolio by acquiring or developing additional gaming facilities to lease to gaming operators under prudent terms, with a focus on regional gaming markets where demand has historically been resilient. Management highlights expansion with leading regional gaming operators and tribal relationships as a driver of the pipeline. In the second quarter of 2026, GLPI invested $191 million in tenant developments and completed the $225 million funding commitment for PENN Entertainment's Hollywood Casino Aurora land-based conversion. GLPI anticipates additional development funding of approximately $400 million to $450 million in the second half of 2026, bringing 2026 total development spend to a range of $750 million to $800 million. The company also cites geographic diversification, adding California and Virginia through recently announced transactions.

Risks

• Tenant concentration — Approximately 97% of cash rent comes from five tenants, with PENN alone operating 34 of 69 facilities, so tenant financial distress would directly affect rent collections.
• Development and construction funding — GLPI has committed construction development funding, including for Bally's Chicago and the Hollywood Casino Aurora conversion, and partner failure to complete projects or meet obligations could impair returns.
• Interest rates and inflation — The company states higher inflation and interest rates and economic uncertainty could affect discretionary consumer spending at tenant casinos and its own access to capital.
• REIT qualification and regulatory approvals — Maintaining REIT status depends on highly technical Internal Revenue Code requirements, and delays in obtaining regulatory approvals could impede planned acquisitions or projects.

Outlook

Management raised the midpoint of its 2026 AFFO per share guidance to a range of $4.10 to $4.12. It expects additional development funding of approximately $400 million to $450 million in the second half of 2026, bringing full-year 2026 development spend to $750 million to $800 million. GLPI states this activity, coupled with future funding plans, should continue to drive AFFO per share growth through 2027 and into 2028. Management also describes same-store regional gaming operator results as showing healthy year-over-year gains through the midpoint of the calendar year.