Gaming & Leisure Properties(GLPI) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 increased by 3.2% year-over-year to $397.6 million, while cash revenue expanded by 5.8% to $375.7 million[5] - Net income for Q3 2025 was $248.5 million, up from $190.1 million in Q3 2024, resulting in a diluted earnings per share of $0.85 compared to $0.67[2] - Funds from Operations (FFO) for Q3 2025 reached $315.5 million, a 25.8% increase from $250.6 million in Q3 2024[2] - Adjusted Funds From Operations (AFFO) grew by 5.1% to $282.0 million in Q3 2025, with AFFO per diluted share at $0.97 compared to $0.95 in the prior year[2] - Total rental income for Q3 2025 was $341.755 million, a 2.3% increase from $333.244 million in Q3 2024[23] - Net income for Q3 2025 was $248.481 million, compared to $190.100 million in Q3 2024, representing a 30.6% year-over-year increase[23] - Earnings per common share for Q3 2025 were $0.85, up from $0.67 in Q3 2024, reflecting a 26.9% increase[23] - Operating expenses for Q3 2025 totaled $60.447 million, significantly down from $113.897 million in Q3 2024, a decrease of 46.9%[23] - Income from operations for the nine months ended September 30, 2025, was $838.061 million, compared to $822.479 million for the same period in 2024, a slight increase of 1.9%[23] - Comprehensive income for the nine months ended September 30, 2025, was $575.958 million, compared to $584.038 million for the same period in 2024[23] Guidance and Future Expectations - The company updated its full-year 2025 AFFO guidance to between $1.115 billion and $1.118 billion, or between $3.86 and $3.88 per diluted share[15] - The company expects to fund approximately $280 million related to current development projects in Q4 2025[18] - The guidance does not account for potential future acquisitions or dispositions beyond the $150 million funding for the M Resort hotel tower project[18] - The company anticipates growth in cash flows and AFFO guidance for 2025, benefiting from portfolio additions and recent transactions[58] Investments and Commitments - GLPI committed $225 million for the Caesars Republic Sonoma County project, with a term loan of $180 million at a fixed rate of 12.50%[8] - The acquisition of Sunland Park Racetrack & Casino for $183.75 million is expected to be immediately accretive to AFFO per share, with an initial cap rate of 8.2%[9] - The company funded $130 million for the relocation of Hollywood Casino Joliet at a 7.75% cap rate, part of a larger funding agreement with PENN Entertainment[7] - The company has various funding commitments totaling $1,675.5 million, with $130 million already funded for the relocation of Hollywood Casino Joliet and $75.6 million for hotel renovation at The Belle[41][43] - The company has a total of $1,735 million in commitments for future investments in gaming and related facilities, with several projects still pending funding[40] - The company has committed to funding a hotel tower project at M Resort for $150 million, expected to be funded on November 3, 2025[42] Debt and Equity - Long-term debt, net of unamortized costs, was $7.2 billion as of September 30, 2025, down from $7.7 billion at the end of 2024[36] - The company reported a total equity attributable to Gaming and Leisure Properties of $4.6 billion as of September 30, 2025, compared to $4.3 billion at the end of 2024[36] - The company has a total of $1,175 million in senior unsecured notes maturing between 2028 and 2034, with varying interest rates from 3.250% to 6.750%[38] - As of September 30, 2025, the total long-term debt of the company is $7,201.213 million, with a weighted average interest rate of 5.083%[38] Operational Metrics - GLPI's lease coverages remain strong, with major tenants exhibiting rent coverage of over 1.8x on a per tenant basis, accounting for approximately 97% of cash rent[4] - The coverage ratio for the Penn 2023 Master Lease is reported at 1.88, indicating strong rent coverage by tenants[47] - Bally's Master Lease II has a coverage ratio of 2.78 as of June 30, 2025, indicating strong revenue to rent coverage[49] - Boyd Master Lease has a coverage ratio of 2.46 at June 30, 2025, demonstrating solid financial health[50] - Pennsylvania Live! Master Lease has a coverage ratio of 2.50 at June 30, 2025, indicating robust performance[51] - The default adjusted revenue to rent coverage for the Tropicana Lease is 1.35, ensuring financial stability[53] Risk Factors - Risks include the ability to complete casino projects under development and the impact of inflation on consumer spending[58] - The company must maintain its REIT status, which is subject to complex regulatory requirements[58] - The ability to generate sufficient cash flows to meet financial covenants is critical for the company's operations[58] Non-GAAP Measures - Cash Net Operating Income (Cash NOI) is used as a performance measure to evaluate the operating performance of the company's real estate operations[54] - The company believes that FFO and AFFO provide a meaningful perspective of underlying operating performance, excluding real estate depreciation[54] - FFO and AFFO are defined as net income excluding certain expenses, with AFFO adjusted for stock-based compensation and capital maintenance expenditures[55] - Adjusted EBITDA excludes general and administrative expenses, providing a clearer view of operational performance[55] - The company emphasizes that non-GAAP measures should not be viewed as alternatives to GAAP measures[56] Investor Relations - The company is committed to providing accurate financial information and maintaining investor relations[59] - Forward-looking statements are subject to various risks and uncertainties that could affect future performance[58]