GLPI Posts Record Q1 2022 Revenue
Author:
Muhammad Gregory
High times: Gaming and Leisure Properties Inc. (GLPI) has posted record revenue results for the first quarter of the 2022 financial year. It also saw a year-on-year rise in net profit. During the quarter, the business finished its acquisition of Bally’s Tiverton in Rhode Island, as well as the Hard Rock Hotel & Casino Biloxi from Bally’s Corporation for $635 million.
Gaming and Leisure Properties Inc. (GLPI) has posted record revenue results for the first quarter of the 2022 financial year, while also experiencing a year-on-year rise in net profit during the same time period.
?Maklay62/Pixabay
GLPI Also Secured New Master Lease Plan with Penn Entertainment in Q1 2022
Business is booming: casino estate developer Gaming and Leisure Properties Inc. (GLPI) has revealed record revenue showings for the first quarter of the 2022 financial year, while also seeing a year-on-year rise in net profit.
The quarter was likewise an active period for GLPI: in January 2023, it wrapped up its acquisition of Bally’s Tiverton in Rhode Island and the Hard Rock Hotel & Casino Biloxi in Mississippi from Bally’s Corporation for a not insignificant amount of $635 million.
During the same quarter, GLPI finalized the birth of a new master lease plan with Penn Entertainment, encompassing seven of the latter’s properties. Penn’s casinos in properties in Aurora and Joliet in Illinois, along with locations in Columbus and Toledo in Ohio, as well as Henderson, Nevada, have now all been added to the new master lease.
In addition to the master lease plan, the existing leases for the Hollywood Casino at the Meadows in Pennsylvania and Hollywood Casino Perryville in Maryland were ended by Gaming and Leisure Properties Inc. (GLPI) and switched over to the new 2023 master lease.
Strong Revenue Showings Can be Attributed GLPI’s Long-Term Strategy
Gaming and Leisure Properties Inc’s (GLPI) impressive revenue showings for the first quarter of the 2022 financial year can be chalked up to the group’s sound long-term strategy and increasingly diverse portfolio, said GLPI chairman and chief executive Peter Carlino:
“Our record first quarter financial results further highlight and reinforce the value of our long-term strategy to expand and diversify our portfolio of regional gaming assets, align with the industry’s top regional gaming operators, and support our tenants with innovative structures in an accretive, prudent manner.”– Peter Carlino, Chairman and Chief Executive, Gaming and Leisure Properties Inc. (GLPI),Press Release
Carlino continued by revealing that its business strategy even allowed it to heighten its capital returns to its investors and shareholders:
“This approach has driven predictable growth of our rental cash flows and adjusted funds from operators, enabling GLPI to increase its capital returns to shareholders through increased cash dividends.”
Finally, in looking towards the future, Carlino promised observers that it is set to continue growing and producing encouraging revenue results, continuing to drive shareholder value in the long-term:
“Looking forward to the balance of 2023, GLPI is on track to generate record results based on the ongoing expansion and diversification of our portfolio as well as the upside from recently completed transactions and contractual rent escalators. Our disciplined capital investment approach, combined with our focus on stable regional gaming markets, supports our confidence that the company is well positioned to further grow our cash dividend and drive long-term shareholder value.”
Bally’s Corporation Saw €425.5 Million Net Loss in 2022
Someone who didn’t experience such favorable financial showings in 2022 was Bally’s Corporation, who in March 2023 reported a net loss of $425.5 million it experienced during the 2022 financial year, which it attributed to impairment charges.
Despite the losses, Bally’s also saw a 70.7% increase in overall revenue during the same period. In fact, the casino and sportsbook giant somewhat pre-empted the news of the loss by warning observers that it was quite likely it would see a large net loss for the 12 months to December 31st, 2022 due to building up impairment charges.
Nevertheless, the financial year’s net loss in the end was still above the amount which was hinted at in Bally’s preliminary guidance. George Papanier, President of Bally’s Casinos & Resorts, as well as the incoming Bally’s President, kept things positive by noting that the company broke ground on its upcoming mega Bally’s Chicago complex:
“As previously noted, Casinos & Resorts saw continued momentum across the portfolio during the fourth quarter. We also broke ground on our temporary facility in Chicago, which we expect will contribute to the business in the second half of 2023. Though Atlantic City generated a loss during a slower fourth quarter, it continues to progress, and we expect the property to be profitable in 2023. Significant capital expenditures toward property improvements will decrease in 2023 as we focus on generating cash flows to invest in long-term growth opportunities for the entire Bally’s portfolio. Finally, business momentum continues to be strong into 2023, with no slowdown in the consumer, as we continue to closely monitor market macro dynamics.”
Full House Disclosed Plans in November 2022 to Launch Casino in Illinois
In other casino news, US land-based casino operator Full House Resorts announced its plans in November 2022 to launch a new casino facility in the midwestern state of Illinois within the subsequent three months.
Testing at the Waukegan site took place in November 2022. The project brought with it hundreds of new jobs, with over 400 offers for open positions at the resort made public at the time of the announcement.
Full House Resorts president and chief executive Daniel Lee remarked that Full House’s new retail location would be the only land-based casino in Lake County, Illinois, while also providing details about its upcoming Colorado resort:
“When The Temporary opens, it will be the only casino in Lake County, Illinois, which has a population of approximately 700,000 and ranks as one of the wealthiest counties in the US. Chamonix’s construction continues at a meaningful pace, with glass now being installed on the fa?ade and drywall within the building. When complete, Chamonix will be one of the larger casino hotels in Colorado and the largest and most luxurious casino hotel in Cripple Creek, which is the primary casino destination for the Colorado Springs market.”
