Gaming and Leisure Properties Reports 5.1% Revenue Growth, Net Income Decline in Q1 2025

Gaming and Leisure Properties, Inc. (GLPI) reported its financial results for the first quarter of 2025, revealing total revenues of $395.2 million, a 5.1% increase from $376.0 million in the same period last year. The growth was primarily driven by a $20.2 million rise in cash rental income due to recent acquisitions, alongside escalations in lease agreements and favorable variable rents. However, net income attributable to common shareholders decreased to $165.2 million, down from $174.5 million in the prior year, reflecting increased operating expenses and higher interest costs.

Total operating expenses rose by 15.2% to $136.4 million, largely due to a significant increase in the provision for credit losses, which surged by 68.5% to $39.2 million. This increase was attributed to a more pessimistic economic outlook affecting the company's credit loss estimates. Additionally, land rights and ground lease expenses increased by 14.7% to $13.6 million, driven by the acquisition of assets under the Bally's Master Lease II. General and administrative expenses also saw a slight uptick, primarily due to higher stock-based compensation.

In terms of strategic developments, GLPI continues to expand its portfolio, currently owning interests in 68 gaming and related facilities. The company has made significant commitments for future projects, including a potential $940 million investment in the Bally's Chicago Casino Resort and $225 million for the relocation of the Hollywood Casino in Aurora. As of March 31, 2025, GLPI had $168.9 million in cash and cash equivalents, down from $462.6 million at the end of 2024, reflecting cash used for acquisitions and debt repayments.

The company’s long-term debt decreased to $6.89 billion from $7.74 billion at the end of 2024, following the redemption of $850 million in senior unsecured notes. The weighted average interest rate on the company’s debt was reported at 5.06%. GLPI maintains a strong liquidity position, with access to a $2.09 billion revolving credit facility, of which $332.5 million was drawn as of the end of the quarter. The company anticipates that cash generated from operations, along with available credit, will be sufficient to meet its upcoming financial obligations and funding commitments.

Looking ahead, GLPI remains focused on growth through acquisitions and funding commitments to its tenants. The company expects to leverage its existing capital resources and explore new equity offerings to support its expansion strategy. Despite the challenges posed by economic conditions, GLPI is optimistic about its ability to navigate the market and continue delivering value to its shareholders.