Gaming and Leisure Properties, Inc.

For first quarter 2026, total income from real estate exceeded first quarter 2025 by over $24 million, driven by approximately $33 million of cash rent increases from acquisitions and development. Operating expenses decreased by $49.8 million, mainly due to noncash adjustments in the provision for credit losses. Full-year 2026 AFFO guidance is $1.212 billion to $1.223 billion, or $4.08 to $4.12 per diluted share in OP units. Guidance includes approximately $590 million to $640 million of additional development funding during the rest of 2026, bringing full-year development spend to $750 million to $800 million, the PENN Aurora facility acquisition for $225 million, and the expected settlement of $363 million of forward equity on June 1. Management said leverage was at 5.0x, at the low end of the target range.

Peter Carlino said GLPI had a “terrific quarter” and emphasized that the company is entering 2026 with a “clear and well-documented line of sight” to multiyear AFFO growth from its acquisition and development pipeline. He stressed that GLPI is not forced to do deals, preferring thoughtful underwriting, careful capital deployment, and balance sheet discipline. His tone was upbeat but measured, with repeated emphasis on accretive transactions and dividend/AFFO growth.

Desiree Burke highlighted the main year-over-year drivers in real estate income: about $33 million of cash rent increases from acquisitions and transformation, offset partly by about $8 million of noncash revenue headwinds. She said operating expenses were down $49.8 million due mainly to noncash credit-loss adjustments. On capital structure, she said leverage was at 5.0x, cash on hand was $275 million, and GLPI also has $363 million of forward equity outstanding; she added that the company expects to remain at the low end of its 5.0x to 5.5x leverage range once planned transactions are completed and credited with their AFFO.

Analysts focused on the investment pipeline, cap rates, development timing, Caesars-related lease durability, Chicago VLT risk, competition for capital, and the impact of iGaming/prediction markets. Management said the cap rate environment has normalized into the “8% area” for regular-way regional gaming sale-leasebacks, that Chicago spend is moving faster because of construction progress, and that the VLT issue in Chicago was already underwritten. On Caesars, management said any consent or parent-guarantee issues depend on deal structure and remain TBD; on competitive capital, they said some owners still have access while others are constrained, and that GLPI expects to remain at the table on large opportunities.