Gaming and Leisure Properties (GLPI) has announced its second-quarter 2025 financial results, reporting that its Adjusted Funds from Operations (AFFO) per share surpassed analyst expectations. While the real estate investment trust (REIT) specializing in gaming properties saw a year-over-year increase in revenue and record AFFO and Adjusted EBITDA, its net income experienced a significant decline due to higher credit loss provisions.
Key Financial Highlights
- Adjusted Funds from Operations (AFFO) per share: $0.96, exceeding analyst estimates of $0.94 and up 2.1% year-over-year.
- Revenue: $394.9 million, a 3.8% increase from Q2 2024, slightly below the consensus estimate of $397.0 million.
- Net Income (GAAP): $156.2 million, a 27.2% decrease from Q2 2024, attributed to a $53.7 million provision for credit losses.
- Adjusted EBITDA: A record $361.5 million, up 6.2% year-over-year.
- Quarterly Dividend: Increased to an annualized $3.12 per share, reflecting the company’s REIT distribution strength.
Operational Performance and Strategy
Gaming and Leisure Properties, which owns and leases casino properties across the United States, reported a robust occupancy rate of 100% as of December 31, 2024. The company continues to focus on portfolio diversification and disciplined capital deployment. Recent development funding includes projects like Bally’s Chicago casino and the Ione Band tribal gaming project. Master lease coverage ratios remained solid, though the Pinnacle Master Lease coverage edged closer to escalation thresholds.
The company is actively managing its capital structure, with net debt to EBITDA at 4.7x. Significant transactions in the quarter included a $404.0 million forward equity sale and the initiation of a $1.25 billion at-the-market equity offering program. Debt maturities are well-staggered, with an average maturity of 6.1 years.
Outlook and Market Position
For fiscal year 2025, Gaming and Leisure Properties has updated its AFFO guidance to a range of $1.112 billion to $1.118 billion, or $3.85 to $3.87 per diluted share. This forecast incorporates anticipated funding for major projects. Management remains focused on measured capital allocation, careful underwriting, and monitoring tenant performance. The company also noted its strategy of focusing on brick-and-mortar operations and its cautious stance on iGaming.
Q2 2025 Earnings Summary
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS – Net income, per diluted share | $0.54 | $0.75 | $0.77 | (29.9 %) |
| Revenue | $394.9M | $397.0M | $380.6M | 3.8 % |
| AFFO per diluted share | $0.96 | $0.94 | N/A | 2.1 % |
| Adjusted EBITDA | $361.5M | N/A | $340.4M | 6.2 % |
| Net income | $156.2M | N/A | $214.4M | (27.2 %) |
Despite a slight revenue miss and a significant drop in GAAP net income, the company’s strong AFFO performance and increased dividend signal continued operational strength.
