New Report: Gaming And Leisure Properties (GLPI)

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Gaming and Leisure Properties Inc, known by the ticker symbol GLPI, is a large-cap Specialty Real Estate Investment Trust, operating in the real estate business sector. This is my first report on Gaming and Leisure Properties Inc for this Viital portfolio or any of my previous six portfolios.

Gaming and Leisure Properties Inc, or GLPI, is a real estate investment property trust primarily involved in the leasing of gaming and related facilities to wholly-owned subsidiaries of Penn National Gaming, or Penn, throughout the U.S. 

GLPI segments its operations into GLP Capital and TRS Properties divisions. The company derives the vast majority of its revenue from its GLP Capital unit in the form of rental income from dockside and land-based casinos located mostly in the American Midwest. 

Almost all of GLP Capital's leases are long-term agreements that give Penn the option for future extensions. 

Gaming revenue generated by TRS Properties, which encompasses the operations of Hollywood Casino Perryville and Hollywood Casino Baton Rouge, also represents a significant income stream for GLP.

The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. 

The company was incorporated in 2013 and is based in Wyomissing, PA.

Three key data points gauge any dividend equity or fund such as Gaming and Leisure Properties Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

GLPI Price

GLPI's price per share was $46.96 as of yesterday's market close. One year ago its price was $43.67. Therefore, Gaming's share price rose $2.29 or 7.5% in the past year. 

If GLPI's stock trades in the range of $40.00 to $55.00 this next year, its recent $36.96 share price might rise by $5.04 to reach $52.00 by April 1, 2023. My $5.04 estimate is  $1.17 less than the median of target price estimates from twenty-one analysts covering GLPI for various brokerages. 

GLPI Dividends 

Gaming and Leisure Properties' most recent quarterly dividend of $0.69 was paid March 25 to shareholders on record as of March 10th.  Assuming the same rate holds true for the coming months, the resulting annual dividend payout per share of $2.76 yields 5.88% at yesterday's $46.96 closing price. 

Gaming has paid variable quarterly payouts since June 27, 2014 That stretch marks 8 years in June. 

 

GLPI Returns

Adding the $2.76 Gaming and Leisure Properties annual dividend to the estimated one-year price upside of $5.04 shows a $7.80 potential gross gain, per share, to be reduced by any costs to trade GLPI shares.  

At yesterday's $46.96 price per share, a little over $1000 would buy 21 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.48 per share.

Subtract that maybe $0.48 brokerage cost from my estimated $7.80 gross gain estimate per share results in a net gain of $7.32 X 21 shares = $153.72 for a 15.4% net gain on a $985.16 investment.

So it is that Gaming and Leisure Properties Inc (GLPI): shows a possible 15.4% net gain including a 5.88% forward looking dividend yield. 

Over the next year at this time our $1000 investment in  Gaming and Leisure Properties Inc could generate $58.80 in cash dividends alone. Note that a single share of GLPI stock bought at yesterday's price of $46.96 is about $11.84 below the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now maybe the time to buy Gaming and Leisure Properties Inc shares. The estimated next-year dividend from $1K invested is $11.84 greater than yesterday's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Gaming and Leisure Properties Inc (CIM). Only time and money invested in this stock will determine its market value.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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