Gaming and Leisure Properties, Inc. (GLPI – Free Report) is slated to report fourth-quarter and full-year 2018 outcomes on Feb 13, earlier than market open. The corporate’s efficiency is prone to replicate a year-over-year improve in revenues and funds from operations (FFO) per share.
Within the final reported quarter, this Wyomissing, PA-based first gaming-focused actual property funding belief (REIT) delivered a destructive shock when it comes to funds from operations (FFO) per share. Outcomes mirrored lower-than-expected revenues within the quarter.
For the trailing 4 quarters, Gaming and Leisure Properties has a combined shock historical past, having crushed estimates in a single event, met in one other and missed within the different two, recording common destructive shock of 0.55%. The graph under depicts this shock historical past:
Let’s see how issues are shaping up for this announcement.
Elements at Play
Gaming and Leisure Properties has a geographically diversified actual property firm targeted on possession of gaming amenities. Within the to-be-reported quarter, the corporate is anticipated to have generated steady and predictable money circulate from long-term triple-net grasp leases with important mounted elements. Additional, the corporate is planning to reinforce its portfolio by aggressively searching for scopes to amass gaming amenities to be leased to gaming operators.
Significantly, the corporate witnessed a outstanding fourth quarter, asserting the completion of its acquisition of the true property belongings of Tropicana Leisure Inc. on Oct 1. As well as, through the center of the identical month, the corporate introduced the conclusion of the transactions related to the buyout of Pinnacle Leisure, Inc. by Penn Nationwide Gaming, Inc. (PENN – Free Report) .
These transactions have enhanced and diversified the corporate’s geographic footprint and tenant roster, and are instantly accretive. The strikes additionally led to progress in annual actual property revenue by round $155 million. Additionally, Penn Nationwide Gaming, Boyd Gaming and Eldorado Resorts are reputed and skilled operators in regional gaming, and can doubtless drive the corporate’s top-line progress.
The corporate has been displaying strong monetary efficiency since its spin-off from PENN in 2013. It is ready to generate constant money circulate and margin profile, and enjoys excessive money circulate conversion with capital expenditures being lined by operators. These are anticipated to have buoyed the corporate’s fourth-quarter efficiency. Moreover, the state and native governments’ heavy dependency on gaming tax revenues to help their budgets, alerts brighter days forward for Gaming and Leisure Properties.
Gaming and Leisure Properties additionally has a staggered debt maturity profile, ample liquidity, robust governance and demonstrated entry to capital markets, that are anticipated to have continued within the quarter below evaluation.
Furthermore, the corporate has guided for fourth-quarter revenues of $304.7 million, up 26.6% from the prior-year quarter and adjusted FFO per share of $181.4, indicating estimated rise of 9.7%. Moreover, the corporate tasks adjusted EBITDA of $256.Four million for the fourth quarter, indicating estimated progress of 16.5% 12 months over 12 months.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $304.9 million — indicating a year-over-year improve of virtually 26.7%. Additionally, the Zacks Consensus Estimate for FFO per share of 84 cents signifies 10.5% soar, 12 months over 12 months. Nonetheless, the Zacks Consensus Estimate for fourth-quarter FFO per share remained unchanged over the past 60 days.
Here’s what our quantitative mannequin predicts:
Gaming and Leisure Properties doesn’t have the appropriate mixture of two key substances — a constructive Earnings ESP and Zacks Rank #3 (Maintain) or increased — for rising the percentages of an earnings beat.
You possibly can uncover one of the best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Gaming and Leisure Properties is 0.00%.
Zacks Rank: Gaming and Leisure Properties has a Zacks Rank of two (Purchase), which will increase the predictive energy of ESP. Nonetheless, we additionally want a constructive ESP to be assured of a constructive shock.
Shares That Warrant a Look
Listed below are just a few shares within the REIT sector that you could be need to take into account, as our mannequin exhibits that these have the appropriate mixture of parts to report a constructive shock this quarter:
Hersha Hospitality Belief (HT – Free Report) , scheduled to launch earnings on Feb 25, has an Earnings ESP of +3.81% and a Zacks Rank #2 (Purchase). You possibly can see the entire checklist of at the moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Be aware: Something associated to earnings offered on this write-up represents funds from operations (FFO) — a extensively used metric to gauge the efficiency of REITs.
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