Gaming and Leisure Properties Reports 3.7% Revenue Growth in Q2 2025

Gaming and Leisure Properties, Inc. (GLPI) reported its financial results for the second quarter of 2025, revealing total revenues of $394.9 million, a 3.7% increase from $380.6 million in the same period last year. For the first half of 2025, revenues reached $790.1 million, up 4.4% from $756.6 million in the prior year. The growth in revenue was primarily driven by increased rental income from recent acquisitions, which contributed an additional $17.5 million in the second quarter and $37.7 million in the first half. However, net income attributable to common shareholders decreased to $151.4 million, or $0.55 per share, compared to $208.3 million, or $0.77 per share, in the previous year.

Operating expenses surged by 75.2% to $152.8 million for the second quarter, largely due to a significant increase in the provision for credit losses, which rose to $53.7 million from a benefit of $3.8 million in the prior year. This increase was attributed to a more pessimistic economic outlook affecting the company's credit loss estimates. Additionally, general and administrative expenses rose by 14.8% to $15.9 million, driven by higher stock-based compensation and payroll costs. For the first half of 2025, total operating expenses increased by 40.7% to $289.2 million, reflecting similar trends.

In terms of strategic developments, GLPI has continued to expand its portfolio, owning interests in 68 gaming and related facilities as of June 30, 2025. The company has also entered into various funding commitments for future projects, including a $940 million commitment for the Bally's Chicago development. As of the end of the second quarter, GLPI had $1.25 billion remaining for issuance under its new continuous equity offering program, which is expected to support future growth initiatives.

Operationally, GLPI's total assets decreased to $12.5 billion from $13.1 billion at the end of 2024, primarily due to a reduction in real estate investments and investments in leases. The company reported a total long-term debt of $6.9 billion, down from $7.7 billion at the end of the previous year, following the redemption of $850 million in senior unsecured notes. The company’s cash and cash equivalents increased to $604.2 million, up from $462.6 million at the end of 2024, providing a stronger liquidity position.

Looking ahead, GLPI remains optimistic about its growth prospects, supported by its ongoing funding commitments and the anticipated performance of its gaming properties. The company expects that cash generated from operations, along with available credit facilities and equity offerings, will be sufficient to meet its debt service requirements and funding commitments in the coming year. However, management acknowledges potential risks related to economic conditions and the gaming industry that could impact future performance.