Gaming and Leisure Properties raises AFFO forecast, but Q3 revenue misses

Gaming and Leisure Properties (GLPI) raised the low end of its 2026 AFFO forecast on Oct. 29, but third-quarter revenue of $435.4 million missed the $445.06 million consensus estimate compiled by Finnhub.

Shares were little changed at $38.99 as of 2:17 p.m. ET in regular trading.

GLPI is a real estate investment trust that acquires, finances and owns properties leased to gaming operators under triple-net leases, in which the tenant pays for maintenance, insurance and taxes. The company said in its results release that revenue rose 9.5% from a year earlier, and adjusted funds from operations, or AFFO, grew 10.5%.

Its per-share measures assume full conversion of limited partnership units into common shares.

Here's how the company did:

• Revenue: $435.4 million vs. $397.6 million a year earlier, and $445.06 million expected, according to Finnhub
• AFFO: $311.7 million vs. $282.0 million a year earlier
• AFFO per diluted share and OP/LTIP unit: $1.04 vs. 97 cents a year earlier
• Funds from operations: $275.9 million vs. $315.5 million a year earlier
• FFO per diluted share and OP/LTIP unit: 92 cents vs. $1.08 a year earlier
• Net income: $213.8 million vs. $248.5 million a year earlier
• Adjusted EBITDA: $413.9 million vs. $366.4 million a year earlier

Chairman and Chief Executive Officer Peter Carlino said, “Our third quarter was another record for revenue, AFFO and Adjusted EBITDA.” He said total revenue rose 9.5% to $435.4 million and Adjusted EBITDA increased 13.0% to $413.9 million.

Carlino also said he believed “GLPI’s share price remains significantly dislocated from its fundamentals.”

2026 guidance

The company now expects AFFO for the year ending Dec. 31, 2026 to be between $1.222 billion and $1.225 billion, or between $4.11 and $4.12 per diluted share and OP/LTIP unit.

That compares with its prior range of $1.219 billion to $1.225 billion, or $4.10 to $4.12, from the guidance it gave on July 31.

The update reflects about $265 million of additional development fundings, which brings total 2026 development spending to $800 million.

The forecast excludes any acquisitions, dispositions or capital markets activity that have yet to be announced, and assumes no material changes in legislation, the regulatory environment or economic conditions.

Rent and costs

Provision for credit losses, net, was $36.2 million in the quarter, compared with a benefit of $37.4 million a year earlier.

General and administrative expenses fell to $12.9 million from $16.6 million, and interest expense rose to $98.9 million from $94.1 million.

Bally’s Chicago development had $640.7 million funded of a $940 million commitment as of Sept. 30, the company said in its quarterly supplemental presentation.

The portfolio held interests in 71 gaming and related facilities in 21 states as of Sept. 30, including 34 operated by PENN Entertainment.

Revenue has risen in each of the last three quarters, from $407.0 million in the fourth quarter of 2025 to $435.4 million in the third quarter of 2026, according to its SEC filings.

Dividend and balance sheet

The board declared a third-quarter dividend of 82 cents per share, paid Sept. 25 to shareholders of record on Sept. 11. The annualized rate is $3.28, up from $3.12 a year earlier.

Long-term debt, net of unamortized costs, was $8.08 billion at Sept. 30, up from $7.20 billion at Dec. 31, 2025.

The company will hold a conference call on Oct. 30 at 10 a.m. Eastern Time to discuss the results.

Joliet joint venture

On Oct. 27, the company entered into definitive agreements with Prologis to form a joint venture to develop the former Hollywood Casino Joliet site in Illinois.

GLPI will contribute its owned land in three phases, and Prologis will serve as managing member and developer. The project is expected to take about five years and include five buildings totaling more than 3.8 million square feet, subject to review by the City of Joliet.

GLPI will receive a $61 million capital account credit, assuming all three phases are developed, and will hold an ownership interest of about 20% in the completed project. That could rise to about 30% if GLPI elects to contribute additional capital.