Gaming and Leisure Stock Has 60%+ Upside Potential
Whenever I visit a casino, I like to plunk a little money into a Lucky Larry’s Lobstermania slot. The word “lucky” might be in the name, but it rarely is for me. And that’s a great reminder: the house always wins. Or almost always.
And that’s good news for Gaming and Leisure Properties Inc (NASDAQ:GLPI), the country’s first real estate investment trust (REIT) focused on property assets leased to gaming operators. (Source: “Investor Presentation August 2026,” Gaming and Leisure Properties Inc, last accessed November 5, 2026.)
The company’s portfolio is made up of 71 gaming assets across 21 states. It’s tenants include Penn Entertainment Inc (NASDAQ:PENN), Boyd Gaming Corporation (NYSE:BYD), Caesars Entertainment Inc (NASDAQ:CZR), and Bally’s Corp (NYSE:BALY), among others. (Source: “GLPI Portfolio,” Gaming and Leisure Properties, Inc., last accessed November 5, 2026.)
While the gaming industry took a massive hit during the 2020 health crisis, Gaming & Leisure collected 100% of its rent. Part of this has to do with who its tenants are. Approximately 87% of Gaming & Leisure’s rent comes from premier, publicly traded gaming companies, including Penn Entertainment Inc, Boyd Gaming Corporation, Caesars Entertainment Inc, and Bally’s Corp.
The company’s portfolio continues to grow too. This past October it entered into a joint venture with Prologis, Inc (NYSE: PLD) to develop the former Hollywood Casino Joliet site in Illinois. The 3.8 million square feet. The more than 3.8 million square foot project is expected to be developed over approximately five years.
In June, the company funded $216.3 million to complete its $225 million commitment for the Hollywood Casino and Hotel Aurora landside development project for PENN Entertainment, Inc. at a 7.75% capitalization rate.
Back in February, Gaming and Leisure exercised its option to acquire the real property assets of Bally’s Lincoln Casino Resort for $700 million and additional annual rent of $56.0 million (8.0% cap rate).
Reports Another Quarter of Record Results
Gaming and Leisure has been having a great year, reporting record first, second, and third quarter financial results. Revenue for the third quarter increased 9.5% on an annual basis to a record $435.4 million. (Source: “Gaming and Leisure Properties Reports Record Third Quarter Results,” Gaming and Leisure Properties, Inc., October 29, 2026.)
Third quarter income from operations came in at $309.9 million, while net income was $213.8 million, or $0.71 per share.
Funds From Operations (FFO) was $275.9 million, or $0.92 per share, while adjusted FFO (AFFO) advanced 10.5% to a record $311.7 million, or $1.04 per share. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) climbed 13% to a record $413.9 million.
Peter Carlino, Chairman and Chief Executive Officer, commented, “Our third quarter was another record for revenue, AFFO and Adjusted EBITDA. These results demonstrate the strength of our model which prioritizes long-term triple-net leases with built-in escalators, strong lease coverage, and the ability to structure and underwrite complex transactions and creative funding solutions for quality tenants.”
“Despite this consistent execution, we believe GLPI’s share price remains significantly dislocated from its fundamentals, resulting in an attractive yield of over 8.5% based on the current quarterly cash dividend.”
Looking ahead to the fourth quarter, management expects to report full year AFFO of between $1.222 billion and $1.225 billion, or between $4.11 and $4.12 per diluted share .
Increases Quarterly Distribution to $0.76 Per Share
Thanks to strong AFFO, Gaming and Leisure is able to provide investors with a reliable, dividend. Moreover, because it’s a REIT, they legally have to distribute at least 90% of their taxable income to shareholders in the form of dividends. This can result in some of the most reliable, high yield dividends on Wall Street.
In September it paid out a third quarter dividend of $0.82 per share, or $3.28 per share on an annual basis, for a forward dividend yield of 8.24%.
GLPI Shares Have 60% Upside Potential
Steady transaction activity, annual dividend growth (which has averaged ~4% over the last three years), and tenant escalators, have combined to help GLPI stock produce strong consistent annual returns.
In 2023, the total return for GLPI stock was 9.9%, 8.6% in 2024, 9.5% in 2025, and an estimated total return of 12.9% in 2026. (Source: “Investor Presentation August 2026,” Gaming and Leisure Properties Inc, last accessed November 5, 2026.)
The longer-term outlook for GLPI stock remains solid too, with Wall Street analyst’s providing a 12-month share price target range of $49.80 to $63.00. This points to potential upside of approximately 27% to 60%.
Chart courtesy of StockCharts.com
The Lowdown on Gaming And Leisure Properties Inc.
Gaming and Leisure Properties Inc. continues to be a great specialty REIT with a growing, diversified portfolio of gaming properties located across the U.S.
It has been reporting above peer AFFO growth, which allows it to provide historically steady dividend growth and total return. That should continue. It’s multi-year development pipeline helps provides highly visible growth into 2028.
This may not bode well for gamblers, but it certainly looks good for Gaming & Leisure’s stock and frothy dividend.
It’s also good news for the 847 institutions that hold 96.36% of all outstanding shares. Some of the top holders include Blackrock Inc., Vanguard Portfolio Management LLC, and State Street Corporation. (Source: “Gaming and Leisure Properties, Inc. (GLPI),” Yahoo!Finance, last accessed November 5, 2026.)
For information and education only; not investment, tax or legal advice. Yields and prices are as of the publication date.
