Real estate investment trust Gaming and Leisure Properties has praised “another strong year,” as declining revenue in 2019’s final quarter proves to be a blot on an otherwise solid financial report.
A 4.7 per cent quarterly decrease to $289m (2018: $303.3m) was reported by the firm, as full-year figures reached $1.15bn, a 9.2 per cent rise from $1.05bn. Fourth quarter year-over-year financial growth reflects GLPI’s 2018 acquisition of the real property assets operated by Eldorado Resorts, as well as the impact of a non-cash $59.5m goodwill impairment charge.
Net income for Q4 saw a significant rise to $114.3m (2018: $49.3m), helping boost its full-year performance 15.1 per cent from $339.5m to $390.9m. Adjusted EBITDA rose slightly during the quarter to $260.5 (2018: $258m), with a 12.2 per cent boost felt on a full-year basis to $1.04bn from $926.6m.
GLPI’s portfolio consisted of interests in 44 gaming and related facilities, including wholly-owned and operated Hollywood Casino Baton Rouge and Hollywood Casino Perryville and the real property associated with 32 gaming and related facilities operated by Penn National Gaming.
Furthermore, the company’s portfolio also includes the real property associated with five gaming and related facilities operated by Eldorado Resorts, the real property associated with four gaming and related facilities operated by Boyd Gaming and the real property associated with the Casino Queen in East St. Louis, Illinois.
“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,” commented Peter Carlino, chairman and CEO.
“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.”
Publishing 2020 guidance, GLPI is anticipating first quarter revenue in the region of $259.4m, with full-year figures expected to be in the $1.06bn region.