Gaming and Leisure Properties, Inc.

Gaming and Leisure Properties, Inc.

Type	Public
Traded as	Nasdaq: GLPI Russell 1000 Component
Founded	November 1, 2013 (2013-11-01)
Headquarters	Wyomissing, Pennsylvania , U.S.
Revenue	$1.2 billion (2020)
Net income	$506 million (2020)
Total assets	$9.0 billion (2020)
Number of employees	560 (2020)
Website	glpropinc.com

About GLPI

Gaming & Leisure Properties, Inc (GLPI) operates as a real estate investment trust (REIT) with a primary focus on obtaining real estate assets that are leased to gaming operators. Established in November 2013, GLPI emerged as a result of a corporate separation from Penn National Gaming, a prominent casino operator. Although headquartered in Pennsylvania, GLPI's expansive portfolio encompasses 59 gaming properties situated across 18 states. The predominant leasing structure employed is a triple-net lease, encompassing fundamental rent along with real property taxes, building insurance, and maintenance expenditures.

Considering that the majority, if not all, tenants are gaming operators, this study delves extensively into the gambling market, while also dedicating attention to real estate assets.

Latest Updates

Current REIT performance: via NAREIT

(As of 25/08/2023 - 4:09PM or 09:09PM EST)

The REIT-focused FTSE Nareit U.S. Real Estate Index Series tracks the performance of the U.S. REIT industry at both an industry-wide level and on a sector-by-sector basis. The FTSE EPRA/Nareit Global Real Estate Index represents the performance of real estate equities worldwide. The performance of both indexes are reported on a real-time basis

Please note that the referenced data will updated daily on the NAREIT site, these figures are accurate at the time of the report. For up-to-date figures, please visit: NAREIT Real-Time Index Returns (REIT)

FTSE NAREIT U.S. REAL ESTATE INDEX	% Change	Value	Time (EST)
All REITs	0.19	$200.26	04:09 PM
Composite	0.18	$196.03	04:09 PM
All Equity REITs	0.17	$693.27	04:09 PM
Industrial	0.67	$519.58	04:09 PM
Office	-0.80	$179.25	04:09 PM
Retail	-0.20	$219.94	04:09 PM
Shopping Centers	-0.07	$175.80	04:09 PM
Regional Malls	0.01	$233.25	04:09 PM
Free Standing	-0.44	$359.73	04:09 PM
Residential	0.33	$483.44	04:09 PM
Apartments	0.50	$431.48	04:09 PM
Manufactured Homes	-0.29	$583.35	04:09 PM
Diversified	-0.34	$97.21	04:09 PM
Lodging/Resorts	-1.26	$67.69	04:09 PM
Health Care	0.14	$218.54	04:09 PM
Self Storage	0.69	$1658.69	04:09 PM
Timber	-0.31	$166.23	04:09 PM
Infrastructure	0.34	$244.83	04:09 PM
Equity REITs	0.16	$656.59	09:03 PM
Real Estate 50	0.23	$316.55	04:09 PM
Mortgage REITs	0.37	$2.71	04:09 PM
Home Financing	0.52	$23.13	04:09 PM
Commercial Financing	0.25	$16.00	04:09 PM
FTSE RAFI US 100 Real Estate Index	-0.09	$4395.60	09:09 PM
Data Centers	0.09	$1387.43	04:09 PM
Specialty	0.64	$872.23	04:09 PM
Gaming & Leisure	0.43	$671.03	04:09 PM

Other changes to portfolios, leases or deals:

• None as of yet (EOD, 25/08/2023)

Executive Summary

• There are two gaming REITs, GLPI and VICI properties, both of whom had a good year in 2022, with returns of 13.49% and 14.26% respectively - in the top 5 for performance of all REITs.
• Both GLPI and VICI lease their property to gaming operators (casinos) and so they are tied with the gambling industry.
• Despite challenging economic conditions due to COVID-19 lockdowns and an impending recession, the gambling market is experiencing growth.
• GLPIs properties are all based within the US. The US holds a leading position in the land-based casino segment in terms of revenue, and many of the largest global casino operators are based in the US.
• Online gambling growth is a primary driver of the industry's expansion. Europe currently holds the largest market share, but the US exhibits the highest growth rates in revenue and user numbers. It is anticipated that the US will surpass Europe's total user count and align its user base with the rest of the world (excluding Europe).
• The growth of online gambling, including Live Casino, is not expected to negatively impact the land-based casino market. Instead, it serves as a catalyst. Online platforms attract casual and non-gamblers who might find traditional casinos intimidating. The availability of free demo versions online, where individuals can engage with simulated money, is a draw for early-stage gamblers.
• Casinos are transitioning into comprehensive entertainment centers, offering diverse amenities and services. This appeals to non-gamblers who may not be interested in gambling itself but are enticed by the immersive gambling environment. (See 'Reasons for visiting a casino')
• GLPI owns properties leased by gaming operators, exposing them to the gambling industry's performance. However, due to the adaptability of real estate to market shifts, potential downsides resulting from significant changes in the gambling sector could be mitigated. If necessary, GLPI's properties could be repurposed to target alternative markets, such as the industrial sector.
• GLPI is looking to diversify their risk by acquiring real property assets outside the gaming industry.
• In a comparison with its competitor, GLPI stands out with higher dividends, though there was a reduction in dividends during 2020. Additionally, GLPI offers a higher yield to its investors. However, it's worth noting that GLPI carries a higher Debt to Equity ratio compared to its competitor. Moreover, GLPI's revenue is more concentrated, with a significant 65% of its rent attributed to the top tenant, whereas VICI's top two tenants contribute 40% and 36% respectively.
• Ultimately, the decision between the two investments hinges on the investor's risk tolerance - is GLPI's extra yield worth the extra risk?

GLPI's market

The Gambling market

As the REIT focuses on gaming properties (which are mostly casinos), we must address the gambling market.

The gambling industry can be categorized into verticals:

• Sports
• Racing
• Casino (which would include live casino: poker, roulette, blackjack)
• Slots
• Lottery
• Bingo
• Others (such as E-Sports and Virtual Sports)

It can be further classified by Channel-type:

• Land-Based
• Online (also referred to as ‘iGaming’).
• Omni-channel (both online and land-based. For example a jackpot slot game, where players are competiting for the same jackpot whether they play in-person or online)

A breakdown of GLPI's market & industry position

A gambling-focused REIT like GLPI is engaged in both the gambling and real estate markets.

Gambling market

• Channel: GLPI predominantly operates in the Land-based segment. While omni-channel products connecting online and land-based casinos are emerging, the evaluation of properties should primarily emphasize the 'offline' component.
• Verticals: REITs own 'gaming properties' - most of which are 'Land-based' casinos. Whilst there is a range of different segments in the gambling industry, typically in a casino you will find Slot machines, Casino tables (Poker, Roulette, Blackjack, etc), Sports betting and Bingo/Lottery/Scratch.
• The allure of Land-based casinos, particularly in Casino tables, Slot machines, and Bingo halls, stems from the sensory experiences these physical settings offer, which online counterparts cannot fully replicate. However, the emergence of Live Casino and the potential of Virtual Reality are also noteworthy, and will be explored in the Risks & Catalysts section.

Real Estate

Casinos are no longer gaming venues, they are now entertainment centres and some are resorts. A casino resort can include hotel rooms and entertainment services such as shopping centres, dining, music, recreation and business spaces. Casino go-ers now are far more interested in the Real Estate aspect of a casino, rather than the variety of gambling products on offer or Brand loyalty.

The realm of gambling has maintained its prevalence for millennia, with the land-based sector demonstrating remarkable resilience throughout this extended period. However, the notable rise of online gaming, accelerated by the impact of the Covid pandemic, might paradoxically act as a catalyst for the land-based market.

GLPI's property portfolio is exclusively concentrated within the United States. Interestingly, the US is an emerging contender in the global landscape of online gaming, harboring the potential to surpass both Europe and the rest of the world in this domain.

Today, casinos have evolved into multifaceted entertainment hubs featuring diverse amenities, including food courts and various facilities. This transformation has effectively redefined the casino as an establishment centered around enjoyment, rather than a mere avenue for financial gain. Within the industry, responsible gambling has taken center stage, encapsulated by the well-recognized adage, "When the fun stops, stop." The industry is undergoing a transformation by shifting its identity from 'gambling' to 'entertainment', and it is the land-based casinos that are leading the way in embracing this evolution.

Casino Operators & Casino brands

Casino operators oversee a collection of casinos operating under their brand, typically located in properties they either own or lease from a Real Estate Investment Trust (REIT) like GLPI.

Some of the largest (land-based) casino operators is the US are:

• Caesars Entertainment Corporation (Brands include: Caesars, Eldorado, Harrah's, Horseshoe, Tropicana)
  • Isle of Capri Casinos (acquired by Caesars in 2017, when it was formerly known as Eldorado Resorts)
• MGM Resorts International (Brands include: MGM Grand, Bellagio, Luxor,etc)
• Las vegas Sands Corporation - Sold all US properties to focus on properties in Macau and Singapore.
• Wynn Resorts (Brands include: Wnn, Encore)
• Penn National Gaming (Brands include: Hollywood Casino, Ameristar, and Boomtown)
• Boyd Gaming Corporation (Brands include: Belterra, Diamond Jo, etc)
• Hard Rock International (Brands: Hard Rock Hotels)
• Golden Entertainment (Brands include: Golden Nugget, Arizona Charlie, Aquarius, etc)
• Rush Street Gaming (Brands include: BetRivers, Sugarhouse, Rushbet)
• Station casinos (Brands include: Station, Wildfire)

Leadership:

Management

Peter M. Carlino - CEO

Brandon J. Moore - COO, General Counsel and Secretary

Desiree A. Burke - CFO and Treasurer

Steven L. Ladany - Chief Development Office, Senior Vice President

Matthew Demchyk - Chief Investment Officer, Senior Vice President

Board of Directors

Peter M. Carlino - Chairman and CEO

JoAnne A. Epps - Acting President, Temple University

Carol Lili Lynton - Co-Founder and Operating Partner, The Dinex Group

Joseph W. Marshall III - Vice Chairman, Stevens & Lee, LLP

James B. Perry - Former Chairman and CEO, Isle of Capri Casinos

Barry F. Schwartz - Vice Chairman Emeritus, MacAndrews & Forbes Inc

Earl C. Shanks - Retired CFO, Essedant Inc

E. Scott Urdang - Restored CEO and Chairman, Urdang Capital Management

Strategy, Commitment & Ethos

Strategy and M&A

Despite being geographically diversified across the US, their portfolio only consists of gaming properties within the US. However, they are actively monitoring developmental opportunities to diversify portfolio by acquiring real property assets outside the gaming industry. This is evidenced recently as on May 13, 2023, the company entered into a letter of intent with Athletics Holdings LLC and Tropicana Las Vegas to develop a stadium for the Oakland Athletics MLB team on a portion of the Tropicana Site. GLPI will fund up to $175 million for construction costs.

Acquiring further gaming real estate assets and facilities still remains one of their top priorities. On January 3, 2023, the Company completed its acquisition of the real property assets of Bally's Tiverton and Hard Rock Hotel & Casino Biloxi for $635 million. The properties were added to the existing Master Lease with Bally's. They also have the option to acquire the real property assets of Bally's Twin River Lincoln Casino Resort in Lincoln, RI before December 31, 2026.

ESG, Commitment and Ethos

The company emphasizes environmental and community stewardship as an essential aspect of creating shareholder value. They are committed to integrating ESG practices that benefit the company, its employees, and the communities they operate in. Social responsibility is a priority, and they aim to maintain a corporate culture that fosters a sense of community, well-being, and long-term success for both the employees and the company.

Corporate culture and employee engagement are encouraged through town-hall meetings, open feedback culture, talent development programs, and resources for health and well-being. Diversity and inclusion are promoted, and they adhere to equal opportunity employment policies.

The company actively supports the communities in which they operate by partnering with various organizations for charitable contributions, community service, and donation programs to help families in need.

Environmental stewardship is also a focus, with an emphasis on sustainable practices, energy efficiency, recycling, water conservation, and indoor environmental quality at their properties. They promote awareness and encourage environmentally beneficial practices among their tenants as well.

Corporate governance is led by the Board of Directors, which considers the interests of all stakeholders, including the environment and social well-being, to ensure the long-term prosperity of the company. The Nominating and Corporate Governance Committee oversees sustainability and ESG matters, providing recommendations to the Board.

Competition

GLPI’s primary competitor is VICI Properties Inc (VICI), another Gambling REIT. MGM Growth Properties LLC (MGP) was also one of their competitors, until VICI acquired the firm in April 2022 for $17.2billion. They also face competition from Private investment companies, private equity, hedge funds, sovereign wealth funds, lenders and gaming operators themselves.

VICI

Vici Properties was established as part of the Chapter 11 bankruptcy reorganization of Caesars Entertainment Operating Company (CEOC), a significant division of Caesars Entertainment. Following CEOC's entry into bankruptcy proceedings in January 2015, Caesars proposed a division of CEOC into two distinct entities: a Real Estate Investment Trust (REIT) responsible for owning the company's casinos and an operating company tasked with their management. This strategic approach aimed to optimize value for CEOC's creditors by leveraging the favorable tax benefits associated with REITs.

The REIT spin-off, Vici Properties, was successfully completed on October 6, 2017, coinciding with CEOC's emergence from bankruptcy. Vici commenced with a portfolio encompassing nineteen casinos and racetracks, all leased to Caesars, along with four golf courses. The name "Vici" derives from the famous phrase "Veni, vidi, vici," attributed to Julius Caesar.

Over time, Vici expanded its portfolio and pursued various acquisitions. It acquired properties such as Harrah's Las Vegas, engaging in sale and leaseback arrangements. MGM Growth Properties expressed interest in acquiring Vici in 2018, though Vici opted for an initial public offering (IPO) instead. Vici successfully completed its IPO on the New York Stock Exchange, raising $1.2 billion.

The company continued its growth trajectory by engaging in acquisitions, transactions with Caesars, and strategic expansion into Canada in 2023. Vici acquired a range of properties, including casinos and resorts, adding to its diverse portfolio and expanding its influence within the gaming and hospitality sectors.

Portfolio

A list of the properties within GLPI's portfolio - please note GLPI has 59 propeties in the portfolio, 56 listed here and 3 others.

'Other Properties' figures are from the 2022 Annual report, whilst 'Tenant Occupied Properties' has been amended to include two new acquisitions that were complete in March 2023 (Bally's Tiverton and Hard Rock Casino Biloxi).

	Location	State	Acquisition date	Tenant Lease Agreement	Approx Property Square Footage	Owned Acreage	Leased Acreage	Hotel Rooms
Tenant Occupied Properties
Dover Downs	Dover, DE	DELAWARE	06/03/2021	Bally's Master Lease	212,500	69.6	—	500
Tropicana Evansville	Evansville, IN	INDIANA	06/03/2021	Bally's Master Lease	754,833	18.4	10.2	338
Black Hawk (Black Hawk North, West and East casinos)	Black Hawk, CO	COLORADO	04/01/2022	Bally's Master Lease	118,552	3.2	—	—
Quad Cities Casino & Hotel	Rock Island, IL	ILLINOIS	04/01/2022	Bally's Master Lease	390,285	119.9	—	205
Bally's Tiverton Hotel & Casino	Tiverton, RI	RHODE ISLAND	01/03/2023	Bally's Master Lease	2,030,767	46.6	0	84
Hard Rock Casino and Hotel Biloxi	Biloxi, MS	MISSISSIPPI	01/03/2023	Bally's Master Lease	376,358	8.6	0	479
Tropicana Las Vegas	Las Vegas, NV	NEVADA	4/16/2020	Bally's/ Tropicana Las Vegas Lease	—	35.1	—	—
Belterra Park Gaming & Entertainment Center	Cincinnati, OH	OHIO	10/15/2018	Boyd/Belterra Park Lease	372,650	160	—	—
Ameristar Kansas City	Kansas City, MO	MISSOURI	4/28/2016	Boyd/Boyd Master Lease	763,939	224.5	31.4	184
Ameristar St. Charles	St. Charles, MO	MISSOURI	4/28/2016	Boyd/Boyd Master Lease	1,272,938	241.2	—	397
Belterra Casino Resort	Florence, IN	INDIANA	4/28/2016	Boyd/Boyd Master Lease	782,393	167.1	149	662
Trop Casino Greenville	Greenville, MS	MISSISSIPPI	10/01/2018	Caesars/Amended Caesars Master Lease	94,017	—	7.4	—
Tropicana Atlantic City	Atlantic City, NJ	NEW JERSEY	10/01/2018	Caesars/Amended Caesars Master Lease	4,232,018	18.3	—	2,364
Tropicana Laughlin	Laughlin, NV	NEVADA	10/01/2018	Caesars/Amended Caesars Master Lease	936,453	93.6	—	1,487
Belle of Baton Rouge	Baton Rouge, LA	LOUISIANA	10/01/2018	Caesars/Amended Caesars Master Lease	386,398	13.1	0.8	288
Isle Casino Hotel Bettendorf	Bettendorf, IA	IOWA	12/18/2020	Caesars/Amended Caesars Master Lease	738,905	24.6	—	509
Isle Casino Hotel Waterloo	Waterloo, IA	IOWA	12/18/2020	Caesars/Amended Caesars Master Lease	287,436	52.6	—	194
Horseshoe St Louis	St Louis, MO	MISSOURI	10/01/2018	Caesars/Horseshoe St. Louis Lease	807,407	18.5	—	494
Casino Queen	St. Louis, IL	ILLINOIS	1/23/2014	Casino Queen Master Lease	330,502	67.2	—	157
Hollywood Casino Baton Rouge	Baton Rouge, LA	LOUISIANA	12/17/2021	Casino Queen Master Lease	95,318	25	—	—
Live! Casino & Hotel Maryland	Hanover, MD	MARYLAND	12/29/2021	Cordish Maryland Live! Lease	2,326,669	12.6	—	310
Live! Casino Pittsburgh	Greensburg, PA	PENNSYLVANIA	03/01/2022	Cordish/Pennsylvania Live! Master Lease	129,552	—	1.8	—
Live! Casino & Hotel Philadelphia	Philadelphia, PA	PENNSYLVANIA	03/01/2022	Cordish/Pennsylvania Live! Master Lease	685,000	9.6	—	208
Ameristar Black Hawk	Black Hawk, CO	COLORADO	4/28/2016	PENN/Amended Pinnacle Master Lease	775,744	105.2	—	536
Ameristar Council Bluffs	Council Bluffs, IA	IOWA	4/28/2016	PENN/Amended Pinnacle Master Lease	312,047	36.2	22.6	160
Ameristar East Chicago	Chicago, IN	INDIANA	4/28/2016	PENN/Amended Pinnacle Master Lease	509,867	—	21.6	288
Ameristar Vicksburg	Vicksburg, MS	MISSISSIPPI	4/28/2016	PENN/Amended Pinnacle Master Lease	298,006	74.1	—	148
Boomtown Bossier City	Bossier City, LA	LOUISIANA	4/28/2016	PENN/Amended Pinnacle Master Lease	281,747	21.8	—	187
Boomtown New Orleans	New Orleans, LA	LOUISIANA	4/28/2016	PENN/Amended Pinnacle Master Lease	278,227	53.6	—	150
L'Auberge Baton Rouge	Baton Rouge, LA	LOUISIANA	4/28/2016	PENN/Amended Pinnacle Master Lease	436,461	99.1	—	205
L'Auberge Lake Charles	Lake Charles, LA	LOUISIANA	4/28/2016	PENN/Amended Pinnacle Master Lease	1,014,497	—	234.5	995
Jackpot Properties (Cactus Petes and Horseshu)	Jackpot, NV	NEVADA	4/28/2016	PENN/Amended Pinnacle Master Lease	419,800	79.5	—	416
River City Casino & Hotel	St. Louis, MO	MISSOURI	4/28/2016	PENN/Amended Pinnacle Master Lease	431,226	—	83.4	200
Plainridge Park Casino	Plainville, MA	MASSACHUSETTS	10/15/2018	PENN/Amended Pinnacle Master Lease	196,473	87.9	—	—
Hollywood Casino at the Meadows	Washington, PA	PENNSYLVANIA	09/09/2016	PENN/Meadows Lease	417,921	155.5	—	—
Hollywood Casino Morgantown	Morgantown, PA	PENNSYLVANIA	10/01/2020	PENN/Morgantown Lease	—	36	—	—
Argosy Casino Alton	Alton, IL	ILLINOIS	11/01/2013	PENN/PENN Master Lease	124,569	0.2	4	—
Argosy Casino Riverside	Riverside, MO	MISSOURI	11/01/2013	PENN/PENN Master Lease	450,397	37.9	—	258
Boomtown Biloxi	Biloxi, MS	MISSISSIPPI	11/01/2013	PENN/PENN Master Lease	134,800	1.5	1	—
Hollywood Casino at Charles Town Races	Town, WV	WEST VIRGINIA	11/01/2013	PENN/PENN Master Lease	511,249	298.6	—	153
Hollywood Casino at Penn National Race Course	Grantville, PA	PENNSYLVANIA	11/01/2013	PENN/PENN Master Lease	451,758	573.7	—	—
Hollywood Casino Aurora	Aurora, IL	ILLINOIS	11/01/2013	PENN/PENN Master Lease	222,189	0.4	1.7	—
Hollywood Casino Bangor	Bangor, ME	MAINE	11/01/2013	PENN/PENN Master Lease	257,085	6.4	37.9	152
Hollywood Casino Columbus	Columbus, OH	OHIO	11/01/2013	PENN/PENN Master Lease	354,075	116	—	—
Hollywood Casino Gulf Coast	Bay St. Louis MS	MISSISSIPPI	11/01/2013	PENN/PENN Master Lease	425,920	578.7	—	291
Hollywood Casino Joliet	Joliet, IL	ILLINOIS	11/01/2013	PENN/PENN Master Lease	322,446	275.6	—	100
Hollywood Casino Lawrenceburg	Lawrenceburg, IN	INDIANA	11/01/2013	PENN/PENN Master Lease	634,000	73.1	32.1	295
Hollywood Casino St. Louis	Maryland Heights, MO	MISSOURI	11/01/2013	PENN/PENN Master Lease	645,270	220.8	—	502
Hollywood Casino Toledo	Toledo, OH	OHIO	11/01/2013	PENN/PENN Master Lease	285,335	42.3	—	—
Hollywood Casino Tunica	Tunica, MS	MISSISSIPPI	11/01/2013	PENN/PENN Master Lease	315,831	—	67.7	494
M Resort	Henderson, NV	NEVADA	11/01/2013	PENN/PENN Master Lease	910,173	83.5	—	390
Zia Park Casino	Hobbs, NM	NEW MEXICO	11/01/2013	PENN/PENN Master Lease	109,067	317.4	—	—
Hollywood Gaming Casino at Dayton Raceway	Dayton, OH	OHIO	11/01/2013	PENN/PENN Master Lease	191,037	119.7	—	—
Hollywood Gaming Casino at Mahoning Valley Race Track	Youngstown, OH	OHIO	11/01/2013	PENN/PENN Master Lease	177,448	193.4	—	—
1st Jackpot Casino	Tunica, MS	MISSISSIPPI	05/01/2017	PENN/PENN Master Lease	78,941	52.9	93.8	—
Hollywood Casino Perryville	Perryville, MD	MARYLAND	07/01/2021	PENN/Perryville Lease	97,961	36.3	—	—
					30,196,457	5,207	800	14,780
Other Properties
Other owned buildings and land (2022 figures)					23,400	0.3	—	—
Total					30,219,857	5,207	800	14,780

Portfolio: State analysis

A breakdown of the Tenant occupied properties by State:

State	No. of properties	Sum of Property Sq footage	Sum of Owned Acreage	Sum of Leased Acreage	Sum of Hotel Rooms
COLORADO	2	894,296	108	0	536
DELAWARE	1	212,500	70	0	500
ILLINOIS	5	1,389,991	463	5	462
INDIANA	4	2,681,093	259	212	1,583
IOWA	3	1,338,388	113	23	863
LOUISIANA	6	2,492,648	213	235	1,825
MAINE	1	257,085	6	38	152
MARYLAND	2	2,424,630	49	0	310
MASSACHUSETTS	1	196,473	88	0	0
MISSISSIPPI	7	1,723,873	716	170	1,412
MISSOURI	6	4,371,177	743	115	2,035
NEVADA	4	2,266,426	292	0	2,293
NEW JERSEY	1	4,232,018	18	0	2,364
NEW MEXICO	1	109,067	317	0	0
OHIO	5	1,380,545	632	0	0
PENNSYLVANIA	5	1,684,231	775	2	208
RHODE ISLAND	1	2,030,767	47	0	84
WEST VIRGINIA	1	511,249	299	0	153
Grand Total	56	30,196,457	5,207	800	14,780

As a percentage of the total portfolio:

Top 3 in each column in Bold

State	Properties	Square footage	Owned Acreage	Leased Acreage	Hotel rooms
COLORADO	4%	3%	2%	0%	4%
DELAWARE	2%	1%	1%	0%	3%
ILLINOIS	9%	5%	9%	1%	3%
INDIANA	7%	9%	5%	27%	11%
IOWA	5%	4%	2%	3%	6%
LOUISIANA	11%	8%	4%	29%	12%
MAINE	2%	1%	0%	5%	1%
MARYLAND	4%	8%	1%	0%	2%
MASSACHUSETTS	2%	1%	2%	0%	0%
MISSISSIPPI	13%	6%	14%	21%	10%
MISSOURI	11%	14%	14%	14%	14%
NEVADA	7%	8%	6%	0%	16%
NEW JERSEY	2%	14%	0%	0%	16%
NEW MEXICO	2%	0%	6%	0%	0%
OHIO	9%	5%	12%	0%	0%
PENNSYLVANIA	9%	6%	15%	0%	1%
RHODE ISLAND	2%	7%	1%	0%	1%
WEST VIRGINIA	2%	2%	6%	0%	1%

Portfolio: Tenant Analysis

Tenant Lease Agreement	No. of Properties	Sum of Approx Property Square Footage	Sum of Owned Acreage	Sum of Leased Acreage	Sum of Hotel Rooms
CASINO QUEEN
Casino Queen Master Lease	2	425,820	92	0	157
	2	425,820	92	0	157
BALLYS
Bally's Master Lease	6	3,883,295	266	10	1,606
Bally's/ Tropicana Las Vegas Lease	1	0	35	0	0
	7	3,883,295	301	10	1,606
BOYD
Boyd/Belterra Park Lease	1	372,650	160	0	0
Boyd/Boyd Master Lease	3	2,819,270	633	180	1,243
	4	3,191,920	793	180	1243
CAESARS
Caesars/Amended Caesars Master Lease	6	6,675,227	202	8	4,842
Caesars/Horseshoe St. Louis Lease	1	807,407	19	0	494
	7	7,482,634	221	8	5,336
CORDISH
Cordish Maryland Live! Lease	1	2,326,669	13	0	310
Cordish/Pennsylvania Live! Master Lease	2	814,552	10	2	208
	3	3,141,221	23	2	518
PENN
PENN/Amended Pinnacle Master Lease	11	4,954,095	557	362	3,285
PENN/Meadows Lease	1	417,921	156	0	0
PENN/Morgantown Lease	1	0	36	0	0
PENN/PENN Master Lease	19	6,601,590	2,992	238	2,635
PENN/Perryville Lease	1	97,961	36	0	0
	33	12,071,567	3777	600	5,920
Grand Total	56	30,196,457	5,207	800	14,780

As a percentage of the total portfolio:

Tenant group	Properties	Square footage	Owned Acreage	Leased Acreage	Hotel rooms
CASINO QUEEN	4%	1%	2%	0%	1%
BALLYS	13%	13%	6%	1%	11%
BOYD	7%	11%	15%	23%	8%
CAESARS	13%	25%	4%	1%	36%
CORDISH	5%	10%	0%	0%	4%
PENN	59%	40%	73%	75%	40%

The majority of the properties are leased to Penn National Gaming operators, this is expected as GLPI was a corporate spin-off from Penn, so it inherited these properties at inception.

Risks & Catalysts

Market

Gambling Industry performance

The global gambling market was valued at approximate $449.04bn in 2022, having declined at a compund annual growth rate of -0.9% since 2017. This decline is largely due to covid lockdowns which affected the Gross Gaming Revenue (GGR) of the market in 2020. Whilst some regions, such as the US, recovered, others like Macau have not had a full recovery yet. The market is expected to grow from $449.04bn in 2022 to $765.89 billion in 2027 at a CAGR of 11.3%.

Gambling in the US

The strength of the US gambling market has consistently prevailed. As of 2020, the top five global casino companies, ranked by revenue, were exclusively US-based entities, with MGM Resorts claiming the crown.

Commercial gross gaming revenue (GGR) in the United States has demonstrated steady growth since the 2000s. The only instances of year-on-year decline occurred during the 2008 financial crisis and the Covid-related lockdown in 2020. However, in both scenarios, the market exhibited remarkable resilience, rebounding swiftly from these challenges. 2019 Revenue was ~$42bn at a ~4% YOY growth, in 2020 this declined to approximately -32%, but 2021 and 2022 the market recovered, with revenue exceeding $52bn and $60bn respectively.

Real Estate: Casino Hotels in the US

GLPI possesses multiple properties featuring hotel accommodations, with the combined total of hotel rooms across its portfolio amounting to 14,780. The count of casino hotels within the United States has displayed a rising trend, increasing from 291 in 2020 to 322 in 2021, further growing to 360 in 2022, and reaching 377 in 2023. This sector has demonstrated remarkable resilience in the face of the pandemic, and real estate, in general, stands as a robust asset. The real estate industry is inherently fluid, continually adjusting to prevailing trends. Hence, ownership of the real estate housing gaming enterprises provides these companies with some risk mitigation.

Channel analysis

In-person gaming serves as the cornerstone of the industry, complemented by the ascending presence of online gaming. Land-based casinos continue to experience gradual growth, whereas Sports Betting and iGaming are demonstrating more substantial and accelerated expansion. As of 2022, traditional brick-and-mortar casinos and retail sports betting contributed to 80.5 percent of the total gaming revenue. In contrast, the combined revenue generated from mobile sports betting and online casinos accounted for 19.5 percent.

Comparatively, the proportion of total gaming revenue in the United States originating from online platforms remains notably lower than prominent international markets. For instance, the U.K. commands a share of around 65%, while France and Germany hold approximately 30% and 28%, respectively.

However, at the state level, a more nuanced perspective emerges. In states offering both land-based and online gaming options, the combined online share of sports betting and iGaming averages at 40.7 percent.

Reasons for Visiting a casino

Group	2014	2022
Primarly to gamble (A)	~50%	~50%
Primarily to make use of non-gambling entertainment (B)	~47%	~32%
To gamble and make use of non-gambling entertainment (C)	~4%	~18%

A survey conducted by the American Gaming Association investigated the motivations of casino-goers for their visits. It's important to note that the provided percentages are approximate. The shift from group (B) to (C) suggests that even individuals who don't primarily engage in gambling but visit to access other amenities might ultimately participate in gambling activities.

Vertical analysis

Vertical	GGR ($bn)	% Change from 2021
Slot	34.19	+5.1%
Table Game (Casino)	10.00	+13.9%
Sports Betting	7.50	+72.7%
iGaming	5.02	+35.2%
Total	60.42	+13.9%

In 2022, all three primary segments — casino slots and table games, sports betting, and iGaming — achieved their respective record-breaking revenue figures. Casino slots and table games collectively contributed an impressive $47.83 billion (among some others), constituting 79.3 percent of the entire commercial gaming revenue. Simultaneously, sports betting generated $7.50 billion (12.4% of total), while iGaming amassed a total of $5.02 billion (8.3% of total). The large growth in Sports betting is likely attributed to the FIFA World Cup 2022 - a global sporting event.

Live casino serves as a distinct category within the domain of iGaming/Online Gaming, with its primary objective being the faithful emulation of the in-person casino experience. Its fundamental approach involves real-time video feeds featuring live dealers who actively shuffle and distribute cards. This setup enables players to engage in each round, fostering an interactive atmosphere akin to physical casinos.

The prominence of Live Casino experienced a significant surge during the pandemic, as it emerged as the sole viable alternative for those seeking the casino ambiance. Since then, its trajectory has remained steadfast, illustrated by the substantial growth of Evolution Gaming, a leading global provider of live casino solutions, which has seen substantial growth in its revenues. Live Casino continues to command widespread attention. Industry giants like Playtech are intensifying their Live Casino offerings, gaming providers are establishing additional live casino studios, and talk of how the metaverse may revolutionize the market. Ady Totah, CEO of LuckStreak, a live casino provider, believes the audience prefers a casual setting rather than a sensory-overwhelming experience that Virtual reality can offer. Further to this, other Live casino providers are looking to offer something new: combining gameshows, robot arms and different camera angles - their goal to to create a different experience to the casino experience in a typical land-based casino.

Legal, Geopolitical and Regulations

Regional

The record year for land-based casino gaming was fueled by the introduction of markets in Nebraska and Virginia, alongside a nationwide rebound in visitation after a two-year pandemic-related decline. In 2022, approximately 84 million American adults, accounting for 34 percent of the adult population, visited a casino, indicating a 6% rise compared to 2020 and 2021. However, this figure remained 10% lower than the peak observed in 2019. Mississippi, South Dakota, Michigan, and Kansas saw a negative YOY change in traditional casino gaming revenue when compared to 2021. New Mexico (+22%), Rhode Island (+15%) and Illinois (+13%) were the top 3 states in % change.

The following table shows the Top 20 revenue generating markets in the US - GLPI has 23 properties across these markets, as mentioned earlier, they wish to acquire more gaming properties as part of their M&A strategy, and perhaps they are considering entering markets where they currently do not hold any properties - this would of course depends on valuation and availability.

Top 20 revenue generating markets in the US

Rank	Market	Casino Locations	2022 GGR (US$m)	GLPI Properties in Market
1	Las Vegas Strip	Nevada	$8,240	1
2	Atlantic City	New Jersey	$2,790	1
3	Baltimore-Washington DC	Maryland/West Virginia	$2,170	1
4	Chicagoland	Illinois/Indiana	$2,120	3
5	Gulf Coast	Mississippi	$1,558	3
6	Queens/Yonkers	New York	$1,497	0
7	Philadelphia	Pennsylvania	$1,374	1
8	Detroit	Michigan	$1,276	0
9	St. Louis	Missouri/Illinois	$1,066	4
10	Boulder Strip	Nevada	$967	0
11	The Poconos	Pennsylvania	$920	0
12	Reno/Sparks	Nevada	$911	0
13	Black Hawk/Central City	Colorado	$899	2
14	Memphis	Mississippi/Arkansas	$886	1
15	Lake Charles	Louisiana	$867	1
16	Kansas City	Missouri	$824	2
17	Downtown Las Vegas	Nevada	$787	0
18	Miami	Florida	$694	0
19	Pittsburgh/Meadowlands	Pennsylvania	$665	2
20	Cincinnati Area	Ohio/Indiana	$661	1
		Total	$31,172	23

Legality of gambling types by state

X - determines legality and presence of mentioned gambling type, 'O' - is where the gambling type is permitted but none are active yet.

Most states that do not permit commercial casinos have tribal casinos. The distinctions between Indian and commercial casinos are primarily evident in their operational aspects. The National Indian Gaming Regulatory Act (NIGRA) provides guidance to Indian casinos regarding the utilization of their earnings. These funds are required to be reinvested in tribal communities, fostering economic growth and enhancing the self-reliance of tribal administrations. In a broader context, Indian casinos are fewer in number compared to their commercial counterparts. While they may not yield as much revenue nationwide as commercial casinos, they have emerged as significant players in the sector, generating billions in annual income. Regulatory changes in these states will be rare, and often viewed as controversial. Instead, it's better to direct attention towards states that exhibit less openness to gambling, where neither commercial nor tribal casinos are present. Attitudes towards gambling might evolve as additional data becomes available and new officials take office. Notably, regulatory adjustments are occurring in response to the increasing trend of states legalising online gambling.

State	Commercial Casino	Tribal Casinos	Card Rooms	Electronic Gaming Devices	iGaming	Brick & Mortar Sports Betting	Mobile sports betting	Lottery	iLottery	Casino Activities
Alabama	O	X								Tribal casinos offer only Class II games
Alaska		X								Tribal casinos offer only Class II games
Arizona		X				X	X	X
Arkansas	X					X	X	X
California		X	X					X
Colorado	X	X				X	X	X
Connecticut		X			X	X	X	X	O	iLottery legal, but not live
Delaware	X				X	X		X
D.C.						X	X	X	X
Florida	X	X	X			O	O	X		Sports betting legal but not active and Subject to legal challenges
Georgia								X	X
Hawaii
Idaho		X						X
Illinois	X			X		X	X	X	X
Indiana	X	X				X	X	X
Iowa	X	X				X	X	X
Kansas	X	X				X	X	X
Kentucky				X				X	X	Instant racing terminals at racetracks
Louisiana	X	X		X		X	X	X		Sports betting legal in most parishes
Maine	X					O	O	X	X	iLottery includes only subscription services; sports betting legal, but not active
Maryland	X					X	X	X
Massachusetts	X					O	O	X		Sports betting legal, but not active
Michigan	X	X			X	X	X	X	X
Minnesota		X	X					X
Mississippi	X	X				X		X		Mobile sports betting only available at casino properties
Missouri	X							X
Montana		X	X	X		X		X		Mobile sports betting only available within licensed properties
Nebraska	X	X				O		X		Sports betting legal, but not active
Nevada	X	X		X	X	X	X
New Hampshire						X	X	X	X	Brick and mortar sports betting available at lottery retailers
New Jersey	X				X	X	X	X
New Mexico	X	X				X		X		Sports betting limited to tribal properties
New York	X	X				X	X	X	X	iLottery includes only subscription services
North Carolina		X				X		X	X	Sports betting limited to tribal properties; iLottery includes only subscription services
North Dakota		X				X		X	X	Sports betting limited to tribal properties; iLottery includes only subscription services
Ohio	X					O	O	X		Racetracks only permitted to have VLTs; sports betting legal but not active
Oklahoma	X	X						X
Oregon	X	X		X		X	X	X		Limited EGDs and instant racing terminals at racetracks
Pennsylvania	X			X	X	X	X	X	X
Rhode Island	X					X	X	X	X	iLottery includes Keno and some instant games
South Carolina								X
South Dakota	X	X		X		X		X		Only limited-stakes gaming at commercial casinos; mobile sports betting only legal at a casino property
Tennessee							X	X
Texas		X						X		Tribal casinos offer only Class II games
Utah
Vermont								X
Virginia	X			X		X	X	X	X	Instant racing terminals at racetracks; iLottery includes only subscription services
Washington		X	X			X		X		Mobile sports betting only legal within tribal properties
West Virginia	X			X	X	X	X	X
Wisconsin		X				X		X		Sports betting limited to tribal properties
Wyoming		X		X		X	X	X

Tax rate across states, renewal fees and availability of licenses (for operator)

This table shows the tax rates for each state. Renewal fee is approximated (if there is a range) and annualised where possible - to allow comparison. 'Commercial Casinos allowed' shows the maximum number of licenses permitted in the state, where 'Existing Commercial Casinos' shows the existing licenses granted. % Occupied licenses is a calculated field to show the availability of licenses, if a new operator were to enter the state.

State	Tax rate	Renewal fee (annualised, approximate)	Commercial Casino licenses allowed	Existing Commercial Casinos licenses	% occupied licenses	GLPI properties
Arkansas	13% on the first $150 million in casino gaming revenue, 20% thereafter	$1,000	4	3	0.75	0
Colorado	Graduated rate ranging from 0.25% on gaming revenue up to $2m to 20% on gaming revenue of more than 13 million.	$1,850	Unlimited	33	0.00	2
Delaware	57% effective rate on electronic gaming device revenue; 20% effective rate on table games revenue. Internet casino versions of games are taxed at the same rates after paying the first $3.75 million in revenues and costs for lottery administration	$3,000,000	3	3	1.00	1
Florida	35% electronic gaming device revenue	$2,250,000	8	8	1.00	0
Illinois	Electronic gaming devices: Graduated rate ranging from 15% on revenue up to $25 million to 50% on revenue of more than $200 million. Table games: Graduated rate randing from 15% of revenue up to $25m to 20% on revenue above that amoun	$250,000+	20	11	0.55	5
Indiana	Riverboat: Graduated rate ranging from 15% on gaming revenue of up to $25 million to 40% on gaming revenue of more than $600 million. Casinos, with one exception, also pay a supplemental wagering tax of 3.5%. Racino: 25% of revenue up to $100 million to 35% on revenue exceeding $200 million	Riverboat: $5,000 annually; Racinos: $100 per electronic gaming device annually	13	13	1.00	4
Iowa	Riverboat/Land-based: Graduated rate ranging from 5% on gaming revenue up to $1 million to 22% on revenue of more than $3 million. Racino: 22% or 24% depending on various conditions	Riverboat/Land-based: $5 per person per facility capacity (min.$1,250); Racino: $1,000 annually	Unlimited	19	0.00	3
Kansas	Minimum 27% on casino gaming revenue	$0	4	4	1.00	0
Louisiana	Riverboat: 21.5% of gaming revenue, with additional taxes and fees applied by local governments. Racino: effective rate of around 36% of gaming revenue. LandBased: either 21.5% on gaming revenue or an annual fee of $60 million, whichever is greater, plus rent and various other payments to local authorities	$100,000	20	19	0.95	6
Maine	Racino: 39% on electronic gaming device revenue and 1% on handle; 16% on table game revenue Land-Based: 46% on electronic gaming device revenue; 16% on table game revenue	$80,000	2	2	1.00	1
Maryland	40-61% on electronic gaming device revenue; 20% on table game revenue	$3 million for every 500 electronic gaming devices following 15-year initial license term	6	6	1.00	2
Massachusetts	Casino-Resort: 25% on casino gaming revenue; Slot Parlor: 49% on electronic gaming device revenue	$600 per electronic gaming device	4	3	0.75	1
Michigan	Casino gaming: 19% on casino gaming revenue Internet gaming: Graduated tax ranging from 20% on iGaming revenue up to $4 million to 28% on revenue of more than $12 million	Casino gaming: $25,000, Internet gaming: $50,000	3	3	1.00	0
Mississippi	Graduated rate ranging from 4% on gaming revenue up to $50,000 per month to 8% on gaming revenue of more than $134,000 per month, plus additional host municipality license fee at an average rate of 3–4% on gaming revenue annually	$5,000+	Unlimited	26	0.00	7
Missouri	21% on gaming revenue	$25,000	13	13	1.00	6
Nebraska	20% on casino gaming revenue	Authorized gaming operator fee valid for 20 years and subject to minimum fee of $1 million	6	2	0.33	0
Nevada	Graduated rate ranging from 3.5% on gaming revenue up to $50,000 per month to 6.75% on gaming revenue of more than $134,000 per month	$250 per electronic gaming device as excise tax, plus additional $80 per device annually. Table games fees are dependent on the amount of games in operation	Unlimited	216	0.00	4
New Jersey	9.25% on land-based gaming revenue; 17.5% on iGaming revenue.	License renewal every 5 years; fee of $500 per electronic gaming device annually	Unlimited	9	0.00	1
New Mexico	46.25% effective rate on electronic gaming device revenue	$4,000 and $25 per electronic gaming device annually	6	5	0.83	1
New York	Land-Based: 30%–45% on electronic gaming device revenue; 10% on table game revenue. Racino: average effective rate of 55% on electronic gaming device revenue	Land-Based: $500 per electronic gaming device and table game annually. Racinos: N/A	16	13	0.81	0
Ohio	Land-Based: 33% on casino gaming revenue Racinos: 33.5% on electronic gaming device revenue	Land-Based: $1.5m license fee every three years; Racinos: $10,000 every three years	11	11	1.00	5
Oklahoma	Graduated rate ranging from 35% on casino gaming revenue up to $10 million to 50% on gaming revenue of more than $70 million	$50,000	2	2	1.00	0
Pennsylvania	Land-Based/Racino: 55% on electronic gaming device revenue; 16% table game revenue. Internet gaming: 54% on virtual electronic gaming device-type games; 16% on virtual table games/ poker revenue	Casino/Racino: $1.5 million every five years; CasinoResort: $150,000 every five years. Interactive gaming certificate: $250,000 every five years	23	16	0.70	5
Rhode Island	68.85–74% on electronic gaming device revenue; 17%–19% on table game revenue	N/A	2	2	1.00	1
South Dakota	9% on casino gaming revenue	$200 and $2,000 per device annually	Unlimited	21	0.00	0
Virginia	Graduated rate ranging from 18% on casino gaming revenue up to $200 million to 30% on gaming revenue of more than $400 million	Initial license valid subject to $15 million fee and valid for 10-year period	5	1	0.20	0
West Virginia	53.5% on electronic gaming device revenue; 35% on table game revenue; 15% on iGaming revenue	Casino gaming: $500,000- $2.5 million annually Internet gaming: $100,000 every five years	5	5	1.00	1

Lease agreements, length

Lease Name	Property Count	Number of States Represented	Commencement Date	Lease Expiration Date	Remaining Renewal Terms
PENN 2023 Master Lease	7	5	1/1/2023	10/31/2033	15 (3x5 years)
Amended PENN Master Lease	14	10	11/1/2013	10/31/2033	15 (3x5 years)
PENN Amended Pinnacle Master Lease	12	8	4/28/2016	4/30/2031	20 (4x5 years)
Caesars Amended and Restated Master Lease	6	5	10/1/2018	9/30/2038	20 (4x5 years)
BYD Master Lease	3	2	10/15/2018	04/30/2026	25 (5x5 years)
Bally's Master Lease	8	4	6/3/2021	06/02/2036	20 (4x5 years)
Casino Queen Master Lease	2	2	12/17/2021	12/17/2036	20 (4x5 years)
Pennsylvania Live! Master Lease	2	1	3/1/2022	2/28/2061	21 (1 x 11 years, 1 x 10 years)

Financials

Balance Sheet

This table compares the balance statement at end of Q2 2023 to end of Q4 2022/end of year 2022.

	June 30, 2023	December 31, 2022
Assets
Real estate investments, net	$8,238,398	$7,707,935
Investment in leases, financing receivables, net	$1,891,789	$1,903,195
Right-of-use assets and land rights, net	$844,627	$834,067
Cash and cash equivalents	$9,450	$239,083
Other assets	$47,673	$246,106
Total assets	$11,031,937	$10,930,386
Liabilities
Accounts payable and accrued expenses	$5,084	$6,561
Accrued interest	$80,651	$82,297
Accrued salaries and wages	$3,795	$6,742
Operating lease liabilities	$199,060	$181,965
Financing lease liabilities	$54,017	$53,792
Long-term debt, net of unamortized debt issuance costs, bond premiums and original issuance discounts	$6,248,838	$6,128,468
Deferred rental revenue	$307,271	$324,774
Other liabilities	$30,347	$27,691
Total liabilities	$6,929,063	$6,812,290
Equity
Preferred stock ($.01 par value, 50,000,000 shares authorized, no shares issued or outstanding at June 30, 2023 and December 31, 2022)	—	—
Common stock ($.01 par value, 500,000,000 shares authorized, 262,640,178 and 260,727,030 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively)	$2,626	$2,607
Additional paid-in capital	$5,651,612	$5,573,567
Accumulated deficit	($1,903,326)	($1,798,216)
Total equity attributable to Gaming and Leisure Properties	$3,750,912	$3,777,958
Noncontrolling interests in GLPI's Operating Partnership (7,653,326 units and 7,366,683 units outstanding at June 30, 2023 and December 31, 2022, respectively)	$351,962	$340,138
Total equity	$4,102,874	$4,118,096
Total liabilities and equity	$11,031,937	$10,930,386

Income Statement/Consolidated Statement of Operations

Income Statement from 2023 Q2 report.

This table compares:

• Q2 2023 vs Q2 2022 (Three Months Ended)
• Half-year (HY) 2023 VS HY 2022 (Six Months Ended)

Consolidated Statement of Operations

	Three Months Ended June 30 (Q2)		Six Months Ended June 30 (HY)
Revenues	2023	2022	2023	2022
Rental income	$319,236	$289,574	$637,204	$577,351
Interest income	$37,353	$36,939	$74,599	$64,128
Total income from real estate	$356,589	$326,513	$711,803	$641,479
Operating expenses
Land rights and ground lease expense	$11,892	$11,720	$23,906	$25,424
General and administrative	$12,639	$12,212	$29,089	$27,944
Gains from dispositions	$—	$—	$—	($51)
Impairment charge on land	$—	$3,298	$—	$3,298
Depreciation	$65,731	$59,964	$131,285	$119,093
Provision for credit losses, net	$28,052	$2,222	$22,399	$28,878
Total operating expenses	$118,314	$89,416	$206,679	$204,586
Income from operations	$238,275	$237,097	$505,124	$436,893
Other income (expenses)
Interest expense	($79,371)	($78,257)	($160,731)	($156,179)
Interest income	$1,273	$102	$5,528	$124
Losses on debt extinguishment	$—	($2,189)	($556)	($2,189)
Total other expenses	($78,098)	($80,344)	($155,759)	($158,244)
Income before income taxes	$160,177	$156,753	$349,365	$278,649
Income tax expense	$40	$966	$558	$1,170
Net income	$160,137	$155,787	$348,807	$277,479
Net income attributable to non-controlling interest in the Operating Partnership	($4,507)	($4,473)	($9,826)	($6,897)
Net income attributable to common shareholders	$155,630	$151,314	$338,981	$270,582
Earnings per common share:
Basic earnings attributable to common shareholders	$0.59	$0.61	$1.29	$1.09
Diluted earnings attributable to common shareholders	$0.59	$0.61	$1.29	$1.09

Reconciliation of Net income (GAAP) to FFO, FFO to AFFO, and AFFO to Adjusted EBITDA

	Three Months Ended June 30 (Q2) - $		Six Months Ended June 30 (HY) - $
	2023	2022	2023	2022
Net income	160,137	155,787	348,807	277,479
(Gains) losses from dispositions of property, net of tax	—	—	—	(51)
Real estate depreciation	65,255	59,494	130,339	118,153
Funds from operations	225,392	215,281	479,146	395,581
Straight-line rent adjustments	(8,751)	3,066	(17,503)	1,523
Other depreciation	476	470	946	940
Provision (benefit) for credit losses, net	28,052	2,222	22,399	28,878
Amortization of land rights	3,289	3,290	6,579	9,280
Amortization of debt issuance costs, bond premiums and original issuance discounts	2,405	2,479	4,906	5,250
Stock based compensation	5,013	4,308	12,820	11,908
Impairment charge on land	—	3,298	—	3,298
Losses on debt extinguishment	—	2,189	556	2,189
Accretion on investment in leases, financing receivables	(5,549)	(5,140)	(10,993)	(8,865)
Non-cash adjustment to financing lease liabilities	116	115	225	239
Capital maintenance expenditures (1)	—	(21)	(8)	(36)
Adjusted funds from operations	250,443	231,557	499,073	450,185
Interest, net (2)	77,428	77,490	153,872	154,720
Income tax expense	40	966	558	1,170
Capital maintenance expenditures (1)	—	21	8	36
Amortization of debt issuance costs, bond premiums and original issuance discounts	(2,405)	(2,479)	(4,906)	(5,250)
Adjusted EBITDA	325,506	307,555	648,605	600,861
Net income, per diluted common share and OP units	$0.59	$0.61	$1.29	$1.09
FFO, per diluted common share and OP units	$0.83	$0.84	$1.77	$1.55
AFFO, per diluted common share and OP units	$0.92	$0.91	$1.84	$1.77
Weighted average number of common shares and OP units outstanding
Diluted common shares	263,400,006	248,361,281	263,029,150	248,321,517
OP units	7,653,326	7,366,683	7,650,159	6,382,945
Diluted common shares and OP units	271,053,332	255,727,964	270,679,309	254,704,462

State of Cash Flows (2022 Annual report)

Year ended December 31	2022	2021	2020
Operating activities
Net income	$ 703,285	$ 534,086	$ 505,711
Depreciation and amortization	254,547	252,049	242,995
Amortization of debt issuance costs, premiums and discounts	9,975	9,929	10,503
Accretion on financing receivables and adjustments to lease liabilities	(18,959)	—	—
(Gains) losses on dispositions of property	(67,481)	(21,751)	(41,393)
Deferred income taxes	—	5,326	451
Stock-based compensation	20,427	16,831	20,004
Straight-line rent adjustments	(4,294)	(3,993)	4,576
Deferred rent recognized	—	—	(337,500)
Impairment charges and losses on debt extinguishment	5,487	—	18,113
Provision for credit losses, net	6,898	8,226	—
(Increase) decrease, Other assets	11,777	1,903	(6,628)
(Decrease), increase Dividend and accounts payable, accrued salaries, wages and expenses	(251)	(3,412)	(7,160)
Accrued interest	10,487	(475)	11,590
Other liabilities	(11,772)	5,059	6,815
Net cash provided by operating activities	920,126	803,778	428,077
Investing activities
Capital project expenditures	(23,865)	(13,926)	(474)
Capital maintenance expenditures	(159)	(2,270)	(3,130)
Proceeds from assets held for sale and property and equipment, net of costs	148,709	2,087	15
Proceeds from sale of operations, net of transaction costs	—	58,993	—
Loan loss recovery	—	4,000	—
Acquisition of real estate assets and deposit payments	(350,126)	(487,475)	(5,898)
Investment in leases, financing receivables	(129,047)	(592,243)	—
Net cash used in investing activities	(354,488)	(1,030,834)	(9,487)
Financing activities
Dividends paid	(770,858)	(633,901)	(230,522)
Non-controlling interest distributions	(20,664)	—	—
Taxes paid related to shares withheld for taxes on stock award vestings	(11,924)	(9,867)	(15,293)
Proceeds from issuance of common stock, net	611,256	662,338	320,873
Proceeds from issuance of long-term debt	424,000	795,008	2,076,383
Financing costs	(11,907)	(7,118)	(11,641)
Repayments of long-term debt	(1,271,053)	(363,391)	(2,076,631)
Net cash (used in) provided by financing activities	(1,051,150)	443,069	63,169
Net increase in cash and cash equivalents, including cash classified within assets held for sale	(485,512)	216,013	481,759
Decrease (increase) in cash classified within assets held for sale	—	22,131	(22,131)
Net increase in cash and cash equivalents	(485,512)	238,144	459,628
Cash and cash equivalents at beginning of period	724,595	486,451	26,823
Cash and cash equivalents at end of period	$ 239,083	$ 724,595	$ 486,451

Stock performance history

Nasdaq: https://www.nasdaq.com/market-activity/stocks/glpi GLPI: https://www.nasdaq.com/market-activity/stocks/glpi

Year End Stock Prices

Year	Stock Price ($)
2018	32.32
2019	43.05
2020	42.4
2021	48.66
2022	52.09

Dividends history

GLPI's dividends history are as follows:

Declared	Ex-Date	Record	Payable	Amount	Type
Jun 01, 2023	Jun 15, 2023	Jun 16, 2023	Jun 30, 2023	0.72	U.S. Currency
Feb 22, 2023	Mar 09, 2023	Mar 10, 2023	Mar 24, 2023	0.25	Extra, special, participating or arrears
Feb 22, 2023	Mar 09, 2023	Mar 10, 2023	Mar 24, 2023	0.72	U.S. Currency
Total dividends in 2023:				1.69
Nov 23, 2022	Dec 08, 2022	Dec 09, 2022	Dec 23, 2022	0.705	U.S. Currency
Aug 31, 2022	Sep 15, 2022	Sep 16, 2022	Sep 30, 2022	0.705	U.S. Currency
May 10, 2022	Jun 09, 2022	Jun 10, 2022	Jun 24, 2022	0.705	U.S. Currency
Feb 24, 2022	Mar 10, 2022	Mar 11, 2022	Mar 25, 2022	0.69	U.S. Currency
Total dividends in 2022:				2.805
Dec 17, 2021	Dec 23, 2021	Dec 27, 2021	Jan 07, 2022	0.24	Extra, special, participating or arrears
Nov 30, 2021	Dec 08, 2021	Dec 09, 2021	Dec 23, 2021	0.67	U.S. Currency
Aug 27, 2021	Sep 09, 2021	Sep 10, 2021	Sep 24, 2021	0.67	U.S. Currency
May 20, 2021	Jun 10, 2021	Jun 11, 2021	Jun 25, 2021	0.67	U.S. Currency
Feb 23, 2021	Mar 08, 2021	Mar 09, 2021	Mar 23, 2021	0.65	U.S. Currency
Total dividends in 2021:				2.90
Nov 05, 2020	Nov 13, 2020	Nov 16, 2020	Dec 24, 2020	0.60	U.S. Currency
Aug 06, 2020	Aug 14, 2020	Aug 17, 2020	Sep 25, 2020	0.60	U.S. Currency
Apr 29, 2020	May 12, 2020	May 13, 2020	Jun 26, 2020	0.60	U.S. Currency
Feb 21, 2020	Mar 05, 2020	Mar 06, 2020	Mar 20, 2020	0.70	U.S. Currency
Total dividends in 2020:				2.50
Nov 27, 2019	Dec 12, 2019	Dec 13, 2019	Dec 27, 2019	0.70	U.S. Currency
Aug 20, 2019	Sep 05, 2019	Sep 06, 2019	Sep 20, 2019	0.68	U.S. Currency
May 28, 2019	Jun 13, 2019	Jun 14, 2019	Jun 28, 2019	0.68	U.S. Currency
Feb 19, 2019	Mar 07, 2019	Mar 08, 2019	Mar 22, 2019	0.68	U.S. Currency
Total dividends in 2019:				2.74
Oct 12, 2018	Dec 13, 2018	Dec 14, 2018	Dec 28, 2018	0.68	U.S. Currency
Jul 31, 2018	Sep 06, 2018	Sep 07, 2018	Sep 21, 2018	0.63	U.S. Currency
Apr 24, 2018	Jun 14, 2018	Jun 15, 2018	Jun 29, 2018	0.63	U.S. Currency
Feb 01, 2018	Mar 08, 2018	Mar 09, 2018	Mar 23, 2018	0.63	U.S. Currency
Total dividends in 2018:				2.57
Oct 19, 2017	Nov 30, 2017	Dec 01, 2017	Dec 15, 2017	0.63	U.S. Currency
Jul 25, 2017	Sep 07, 2017	Sep 08, 2017	Sep 22, 2017	0.63	U.S. Currency
Apr 25, 2017	Jun 14, 2017	Jun 16, 2017	Jun 30, 2017	0.62	U.S. Currency
Feb 01, 2017	Mar 09, 2017	Mar 13, 2017	Mar 24, 2017	0.62	U.S. Currency
Total dividends in 2017:				2.50
Nov 04, 2016	Dec 01, 2016	Dec 05, 2016	Dec 16, 2016	0.60	U.S. Currency
Aug 03, 2016	Sep 08, 2016	Sep 12, 2016	Sep 23, 2016	0.60	U.S. Currency
Apr 25, 2016	May 31, 2016	Jun 02, 2016	Jun 17, 2016	0.56	U.S. Currency
Jan 29, 2016	Feb 18, 2016	Feb 22, 2016	Mar 25, 2016	0.56	U.S. Currency
Total dividends in 2016:				2.32
Oct 28, 2015	Nov 27, 2015	Dec 01, 2015	Dec 18, 2015	0.545	U.S. Currency
Jul 30, 2015	Sep 10, 2015	Sep 14, 2015	Sep 25, 2015	0.545	U.S. Currency
May 04, 2015	Jun 09, 2015	Jun 11, 2015	Jun 26, 2015	0.545	U.S. Currency
Feb 03, 2015	Mar 06, 2015	Mar 10, 2015	Mar 27, 2015	0.545	U.S. Currency
Total dividends in 2015:				2.18
Nov 19, 2014	Nov 28, 2014	Dec 02, 2014	Dec 19, 2014	0.52	U.S. Currency
Nov 19, 2014	Nov 28, 2014	Dec 02, 2014	Dec 19, 2014	0.40	Extra, special, participating or arrears
Sep 03, 2014	Sep 11, 2014	Sep 15, 2014	Sep 26, 2014	0.52	U.S. Currency
May 30, 2014	Jun 10, 2014	Jun 12, 2014	Jun 27, 2014	0.52	U.S. Currency
Feb 19, 2014	Mar 05, 2014	Mar 07, 2014	Mar 28, 2014	0.52	U.S. Currency
Jan 03, 2014	Jan 09, 2014	Jan 13, 2014	Feb 18, 2014	11.84	Extra, special, participating or arrears
Total dividends in 2014:				14.32

Competitor Analysis (VICI)

Analysis of GLPI and VICI's Financials, both from Q2 2023 results:

(in $, and 000s - unless per share or ratio)

Item	GLPI	VICI
Total Revenue	356,600	898,158
Income from Operations	238,300	897,814
Net Income	160,100	690,702
FFO	225,400	690,702
AFFO	250,400	540,407
Adjusted EBITDA	324,500	723,414
Net income, per diluted common share	$0.59	$0.69
FFO per diluted share	$0.83	$0.69
AFFO per diluted share	$0.92	$0.54
Ratios
Current Ratio	0.03	1.14
EV to Assets Ratio	1.66	1.12
Interest Coverage Ratio	3.36	4.23
Price to FCF Ratio	40.94	20.21
Debt to Equity Ratio	1.68	0.73
EV to sales Ratio	13.26	14.38
PB Value	3.21	1.3
PS Ratio	8.71	9.33
Earnings Yield	6.25%	6.97%
PE Ratio	15.86	14.06
EV to EBIT Ratio	17.78	16.53
EV to EBITDA Ratio	14.3	16.51
FCF Yield	2.45%	4.95%
PEG Ratio	1.92	0.12
Dividend Yield (As of 25/08/2023)	6.28%	5.11%

Ratios are from Finance Charts - Income Statement and Balance sheet data are as of June 30th 2023 (Q2 2023).