Gaming and Leisure Properties Q2 Earnings Call Highlights

Gaming and Leisure Properties NASDAQ: GLPI reported second-quarter 2026 growth in adjusted funds from operations, or AFFO, as acquisitions, lease escalators and development funding increased cash income. Chairman and Chief Executive Officer Peter Carlino said AFFO rose 10% from a year earlier and described the company’s near- and medium-term growth pipeline as highly visible. Carlino said the regional gaming market remained strong despite concerns expressed elsewhere about the sector’s outlook. He said GLPI’s tenants were seeing same-store growth and attractive returns on investments in new properties and expansions. The company also raised its quarterly dividend 5% to $0.82 per share, bringing its three-year compounded dividend growth rate to 4.4%, according to Carlino. Income growth and guidance Chief Financial Officer and Treasurer Desiree Burke said total income from real estate exceeded the prior-year second quarter by more than $35 million. Cash income increased by about $43 million, driven by acquisitions and contractual escalations. Among the principal contributors were GLPI’s acquisition of Bally’s Lincoln real estate, which added $14 million of cash income; the Bally’s Chicago lease, which contributed $9 million; and the Belle development project, which added $2.4 million. Funding for Penn Entertainment projects in Joliet, Aurora and at M Resort collectively added $5.8 million, while the Sunland Park acquisition contributed $3.8 million. Loans associated with Dry Creek, Ione and Cordish Virginia added $4 million of cash income, Burke said. Lease escalators and percentage-rent adjustments provided an additional approximately $4 million. Non-cash items, including revenue gross-ups, investment and lease adjustments, and straight-line rent adjustments, reduced income by $7.2 million. Operating expenses declined by $54 million, mainly because of non-cash adjustments and the provision for credit losses, Burke said. GLPI guided to 2026 AFFO of $1.219 billion to $1.225 billion, or $4.10 to $4.12 per diluted share and operating partnership unit. The guidance excludes potential future transactions but includes an estimated $400 million to $450 million of additional development funding expected to be deployed relatively evenly over the next two quarters. That would bring total projected development spending to $750 million to $800 million, unchanged from the prior quarter’s forecast. The company’s leverage ratio stood at 4.8 times, below its stated target range of five to 5.5 times. GLPI also settled a forward contract, issuing 7.6 million shares and generating net proceeds of $351 million.