On an operating basis, revenue at GLPI in Q3 increased by 7.7% year-on-year, reaching $359.6m (£296.2m/€339.7m). This growth can be attributed to the expansion of GLPI’s portfolio through recent acquisitions. In January, GLPI acquired Bally’s Tiverton in Rhode Island and the Hard Rock Hotel & Casino Biloxi in Mississippi. Additionally, GLPI completed a new master lease with Penn Entertainment. During Q3, GLPI also acquired land for the Hard Rock Casino development project in Illinois and entered into a ground lease agreement with 815 Entertainment. Other notable developments in Q3 included land acquisition at Casino Queen Marquette in Iowa and the reopening of The Queen Baton Rouge in Louisiana. GLPI’s chairman and CEO, Peter Carlino, believes that these achievements, along with the agreement made with the Oakland Athletics for an integrated casino in Las Vegas, position GLPI for further growth.
In terms of financial performance, although net profit declined in Q3, GLPI witnessed revenue growth. FFO (funds from operations) increased by 9.3% to $254.4m, and AFFO (adjusted funds from operation) increased by 6.9% to $251.2m. Operating expenses rose due to the expansion of the property portfolio, resulting in a 460.1% increase to $91.3m. Interest-related expenses amounted to $79.8m. Despite the decrease in pre-tax profit by 21.4% to $189.8m, adjusted EBITDA saw a 5.9% increase to $327.1m.
GLPI’s year-to-date revenue for the nine months ending September 30th exceeded $1.00bn, representing a 9.8% growth compared to the previous year. The company did not disclose data on FFO or AFFO. However, it revealed that operating costs for the nine months were 34.9% higher at $297.2m, and net other costs amounted to $234.3m. With revenue growth driving performance, pre-tax profit slightly decreased by 3.7% to $539.2m. GLPI paid $1.0m in tax and discounted $15.1m in net profit from the operating partnership, resulting in a net profit of $523.0m for the nine-month period. Adjusted EBITDA increased by 7.3% to $975.7m.
Based on these figures, GLPI is increasing its full-year guidance, expecting AFFO for the 12 months ending December 31st, 2023 to be between $1.00bn and $1.01bn. This revised guidance reflects GLPI’s recent portfolio additions, completed transactions, and contractual rent escalators. Carlino emphasizes their disciplined capital investment approach and focus on stable regional gaming markets, demonstrating confidence in the company’s ability to generate long-term shareholder value and sustain financial growth.
