Gaming and Leisure Properties reports record third-quarter revenue and AFFO

Gaming and Leisure Properties Inc. posted record financial results for the third quarter, with revenue climbing 9.5 percent from a year earlier to $435.4 million. Adjusted funds from operations rose 10.5 percent to $311.7 million, while adjusted EBITDA increased 13 percent to $413.9 million. The company's AFFO per diluted share and OP/LTIP units grew 7.2 percent to $1.04. These gains contrasted with a decline in net income, which fell to $213.8 million from $248.5 million in the same period last year.

Chairman and Chief Executive Officer Peter Carlino said the quarter demonstrated the strength of the company's business model.

"These results demonstrate the strength of our model, which prioritizes long-term triple-net leases with built-in escalators, strong lease coverage, and the ability to structure and underwrite complex transactions and creative funding solutions for quality tenants," Carlino said.

He argued the company's share price does not reflect its fundamentals, creating an attractive dividend yield exceeding 8.5 percent. Carlino also pointed to the ongoing strength of the regional gaming market where the company's tenants operate.

"Regional gaming has proven its resilience for decades, and it is doing so again. Same-store operator results delivered healthy year-over-year gains through the first nine months of 2026, and the durability of our rents and strong coverage stand out against the currently volatile macro backdrop," Carlino said.

Other financial metrics for the quarter showed income from operations decreased to $309.9 million and funds from operations dropped to $275.9 million.

Updated Guidance and Joint Venture

The company revised its full-year 2026 outlook for adjusted funds from operations to a range of $1.222 billion to $1.225 billion, or $4.11 to $4.12 per share. Its prior forecast was between $1.219 billion and $1.225 billion, equating to $4.10 to $4.12 per share. The new guidance includes about $265 million in extra development funding, raising total planned development spending for the year to $800 million. GLPI said its forecast assumes no major negative changes in economic conditions, regulations or competition.

Separately, GLPI announced a joint venture with logistics real estate firm Prologis, Inc. to redevelop the site of the former Hollywood Casino Joliet in Illinois. Prologis plans to build a Class A warehouse and distribution park on the land, pending city approval. The project is slated to include five buildings with more than 3.8 million square feet of space and will be constructed over roughly five years. GLPI will contribute the land in phases and receive a $61 million capital account credit if all phases proceed. The company will initially own about 20 percent of the completed project, with the potential to increase its stake to approximately 30 percent by providing more capital.