Gaming-focused real estate investment trust Gaming and Leisure Properties Inc has announced results for the fourth quarter and full year ended December 31, 2018. The headline figures, tabled below, show good growth apart from unadjusted funds from operations which saw a slight decline.
Chief Executive Officer Peter M. Carlino commented: “The fourth quarter of 2018 once again demonstrated the strength and consistency of our operating model as we generated record revenues for the fourth quarter and full year. Our growing diversified portfolio of regional gaming assets is managed by the top operators in the industry and continues to produce one of the triple-net REIT sector’s most stable cash flow streams.
In 2018, we completed $1.5bn of value creating investments, further strengthening our position as the leading owner of regional gaming real estate. These transactions further diversified our portfolio with two new tenants, which added eight new properties and increased annual real estate revenue by $155m. Throughout 2019 we will remain focused on identifying and pursuing portfolio enhancing accretive transactions and prudently managing our balance sheet and capital structure.”
Contained in the report was an investor update on transactions. It noted: “During the fourth quarter the company acquired the real property assets of five casino properties from Tropicana Entertainment Inc and leased these assets to Eldorado Resorts Inc and initiated a mortgage loan for a sixth property to ERI. In addition, the company acquired the real property assets of Plainridge Park Casino from Penn National Gaming Inc and amended the Pinnacle Entertainment Master Lease. Lastly, the company initiated a mortgage loan to Boyd Gaming Corporation for the acquisition of Belterra Park.”
Financial Highlights
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| (in millions, except per share data) | 2018
Actual |
2017
Actual |
2018
Actual |
2017
Actual |
||||||||||||
| Total Revenue | $ | 303.3 | $ | 240.7 | $ | 1,055.7 | $ | 971.3 | ||||||||
| Net Income | $ | 45.9 | $ | 93.3 | $ | 339.5 | $ | 380.6 | ||||||||
| Funds From Operations (1) | $ | 97.4 | $ | 118.5 | $ | 465.4 | $ | 481.7 | ||||||||
| Adjusted Funds From Operations (2) | $ | 181.6 | $ | 165.3 | $ | 683.6 | $ | 669.5 | ||||||||
| Adjusted EBITDA (3) | $ | 258.0 | $ | 219.9 | $ | 926.6 | $ | 884.6 | ||||||||
| Net income, per diluted common share | $ | 0.21 | $ | 0.43 | $ | 1.58 | $ | 1.79 | ||||||||
| FFO, per diluted common share | $ | 0.45 | $ | 0.55 | $ | 2.17 | $ | 2.26 | ||||||||
| AFFO, per diluted common share | $ | 0.84 | $ | 0.77 | $ | 3.18 | $ | 3.15 | ||||||||
