Casino giant Gaming and Leisure Properties Inc. (GLPI) has reported a 17% increase in its total revenue figures during the second quarter of 2017.
The company posted revenue of $243m at the April-June interval, improving on the $207m generated during the same period last year.
GLPI reported better-than-expected Adjusted EBITDA results in Q2 of 2017. The corporation’s guidance expected a total of $221m, but it topped $222m. This resulted in a 22% improvement from the prior year’s data.
Equally impressive results came from its Adjusted Funds From Operations, which were up by 23%, reaching a total of $167m.
In a corporate statement accompanying the released figures, Chief Executive Officer, Peter M. Carlino, said: “Our business model promotes stability through long-term master leases with large fixed components and highly respected operators with market-leading assets.”
The self-managed real estate investment trust operates by acquiring, financing and owning properties to be leased to gaming operators in triple net lease arrangements. It functions within two segments: GLP Capital L.P - a wholly owned subsidiary of GLPI through which GLPI owns all of its real estate assets - and the TRS Properties, which mainly consists of Hollywood properties.
GLPI owns over 4,000 acres of land and approximately 15 million square feet of building space, which was all occupied as of June 30, 2017. The company’s latest acquisition was Bally's Casino Tunica and Resorts Casino Tunica Real Estate Assets for $82m.
Carlino commented on the transaction: “The accretive Tunica Properties acquisition along with the addition of an annual $5.8m escalator on the Pinnacle Entertainment, Inc. master lease resulted in our Board deciding to increase our quarterly dividend to $0.63 per share.
“Our quarterly dividend has grown at a compounded annual rate of 6.6% in the last three years, with five dividend increases during that period."
Following this H1 data, GLPI analysts are optimistic and they expect GLP to finish 2017 in a similar vein. If this was the case, the company would reach $971m total revenue by December 2017, an increase of over $100m compared to last year.
