The GLPI raised its full-year outlook after a record Q2.

The GLPI raised its full-year outlook after a record Q2.

The GLPI raised its full-year outlook after a record Q2.

 Gaming and Leisure Properties Inc. (GLPI) has raised its full-year adjusted funds from operations (AFFO) forecast following a record Q2 in which both revenue and net profit rose year-over-year.
 In the second quarter of this year, GLPI made $356.6 million from real estate, which was 6.7% more than the same time last year.

 GLPI noticed that recent acquisitions had an effect on revenue performance in Q2, which led to an increase of $11 million in cash rental income.  Rental income brought in $332.8 million, which is 4.3% more than the previous quarter.

 The money made from investing in leases and financing debt went up by 23% to $46 million.  On top of that, GLPI made $1.8 million from interest on real estate loans. 

 It was also stated by GLPI that AFFO went up by 5.6% to $264.4m in Q2.  AFFO stands for "funds from operations," which is net income minus any gains or losses from selling property, as well as taxes and the value of the land going down over time. It also doesn't include a number of other things.  These include the cost of stock-based pay, the wear and tear on land rights, property transfer tax refunds, and impairment charges.

 "We did well because our property portfolio grew and our rents went up, and we were disciplined about our capital structure and liquidity," said Peter Carlino, chairman and CEO of GLPI.

 "Also, our consistent success in attracting new tenants shows that we are quick to take advantage of opportunities to grow our portfolio and that we can work with current tenants to find fun new ways to strengthen our relationships."

 In Q2, net income went up 33.9%.
 When it comes to costs for the quarter, running costs dropped by 26.3% to $87.2m.  This is mostly because the amount set aside for net credit loss dropped sharply.  In the second quarter of last year, this was $28.1m. GLPI, on the other hand, allowed for a $3.8m gain.

 In other places, net finance costs went from $78.1m to $78.6m, which is only a small increase, because higher interest income almost fully cancelled out higher interest costs. 

 Because of this, the profit before taxes went up by 34.1% to $214.8 mg.  GLPI paid $412,000 in income tax and made $6.2 million from a non-controlling stake in an operating partnership. This profit was taken out of the final amount due.

 So, the net profit for the quarter was $208.3 million, up 33.9% from $155.6 million the previous year.  Also, adjusted EBIDTA went up by 4.6% to $340.4m.

 The same story in H1 for GLPI
 How did Q2 affect GLPI so far this year? Sales for the six months ending June 30, 2017, were $756.6 million, up 6.3% from $711.8 million the same time last year. 

 Its overall rental revenue went up 4.1% to $663.4 million, thanks to acquisitions. Its investment in leases and financing receivables revenue went up 21.1% to $90.3 million.  GLPI also said that real estate loans brought in $2.9 million in interest.

 Spending-wise, running costs stayed about the same at $205.6m, and finance costs went up only slightly year-over-year to $156.0m. 

 The profit before taxes was $395 million, which is 13.1% more than the previous year.  GLPI made a profit of $11.2 million from a non-controlling stake and paid $1 million in taxes on it.  Because of this, the net profit went up by 12.9% to $382.7 million.

 AFFO also went up 4.8% to $523.0m in H1, and adjusted EBITDA went up 3.9% to $673.9m.

 GLPI expects more growth as full-year goals rise.
 Some of the group's predictions for the whole year have been raised.  This mostly has to do with AFFO.  GLPI thinks that AFFO will be between $1.054bn and $1.059bn for the year ending December 31, 2024.  This is different from the past estimates of $1.042bn and $1.051bn.

 As we look ahead to the rest of 2024, Carlino said, "we expect to continue to keep our promise to shareholders to be good stewards of their investment capital."

 GLPI wins in Windy City
 In addition, GLPI sent out a report on its recent deal with Bally's in Chicago.  GLPI will give Bally's about $2.07bn to help with its new land-based casino project in the Illinois city. The deal was announced earlier this month.

 A new master lease deal will cover the first $940 million, and the rent for the next 15 years will be $20 million.  GLPI will also buy and lease back some of the real estate interests that support Bally's Kansas City in Missouri and Bally's Shreveport in Louisiana for a total of $395 million in exchange for $32.2 million in initial yearly rent.

 Bally's also plans to change its contribution deal with GLPI and has said again that it wants to sell and lease back its Twin River Lincoln property in Rhode Island to GLPI.  This is coming before the end of 2026 and will bring in around $735m.

 During an earnings call after the second quarter, Carlino said, "This is a big-time project that is going to be pretty impressive."  "It's important to finish projects like this on time and on budget, and I think we've done a pretty good job of that over the years."

 "We've looked at it for a long time."  We like that Bally's is sponsoring us.  We will be able to help make a project that will probably be a success.  That's why we feel good about it.  In any case, I think the range of options for us is very, very strong.