Real estate investment trust Gaming and Leisure Properties has celebrated “another strong year,” as declining revenue in the final quarter of 2019 is proving to be a blip on a still solid financial report.
The company reported a 4.7 percent quarterly decline to $289 m (2018: $303.3 m), with full-year estimates hitting $1.15bn, an improvement of 9.2 percent from $1.05bn. Financial growth for the fourth quarter of the year reflects GLPI’s 2018 purchase of Eldorado Resorts’ real estate assets, as well as the effect of a $59.5 m goodwill impairment charge that is non-cash.
Net income for Q4 saw a significant increase to $114.3 million (2018: $49.3 million), helping to improve its overall performance from $339.5 million to $390.9 million by 15.1 percent. Adjusted EBITDA slightly increased over the quarter to $260.5 (2018: $258 m), with a full-year 12.2% raise felt from $926.6 m to $1.04bn.
GLPI’s assets consisted of investments in 44 gaming and related facilities, including Hollywood Casino Baton Rouge and Hollywood Casino Perryville, wholly-owned and operated, and real estate associated with 32 gaming and related facilities run by Penn National Gaming.
Additionally the business’s portfolio includes the real estate connected with five gaming and related facilities operated by Eldorado Resorts, the real estate associated with four gaming and related facilities operated by Boyd Gaming and the real estate associated with the Casino Queen in East St. Louis, Illinois.
Peter Carlino, chairman and CEO said: “The fourth quarter concluded what was another strong year for GLPI and our shareholders, as we generated durable income from our best-in-class regional gaming portfolio, strengthened the Company’s financial position and increased our return of capital to shareholders.
“In 2019, we delivered a total shareholder return of over 42 per cent, as our leading diversified portfolio of regional gaming assets, managed by the top operators in the industry, gains growing attention and appreciation in the capital markets for generating one of the triple-net REIT sector’s most stable cash flow streams.
“We remain focused on opportunistically identifying and pursuing portfolio enhancing accretive transactions that meet our stringent underwriting requirements while prudently managing our balance sheet and capital structure. The GLPI team remains committed to furthering the company’s long-term record of driving attractive total shareholder returns and maximising value in 2020 and beyond.”
GLPI anticipates first quarter sales in the region of $259.4 m, publishing 2020 guidance, with full-year estimates projected to be in the region of $1.06bn.