Posted on: February 23, 2023, 05:30h.
Final up to date on: February 23, 2023, 05:30h.
Gaming and Leisure Properties (NASDAQ:GLPI) as we speak introduced that it’s rising its quarterly dividend whereas unveiling a particular payout.
The on line casino landlord raised its quarterly payout to 72 cents a share from 70 cents and mentioned will ship a particular dividend of 25 cents per share, the latter of which is attributable to sale of the property property of the Tropicana on the Las Vegas Strip. The dividends might be paid on March 24 to shareholders of document on March 10.
Our tenants’ energy, mixed with GLPI’s stability sheet and liquidity, place the corporate to persistently develop its money flows and construct worth for shareholders in 2023 and past,” mentioned GLPI CEO Peter Carlino in a press release.
The gaming actual property funding belief (REIT) reported fourth-quarter earnings as we speak, noting it generated funds from operations (FFO) of 89 cents a share within the remaining three months of 2022 on income of $336.4 million. Analysts anticipated FFO of 87 cents on income of $335.17 million.
Gaming and Leisure Has Sources for Dividend Progress
Like rival VICI Properties (NYSE: VICI), Gaming and Leisure has a longtime observe document of dividend progress. The REIT additionally has a historical past of distributing particular payouts, having carried out simply that in January 2022 to the tune of 24 cents a share.
Pennsylvania-based GLPI has $6.12 billion in long-term debt of which simply $900 million is coming due in both 2023 or 2024. Nonetheless, the REIT had $10.93 billion in property, together with money and money equivalents north of $239 million, on the finish of 2022. That sturdy asset base and respectable money place are indicators the corporate has the assets to maintain and probably develop dividends.
That’s essential as a result of to ensure that an organization to realize the preferential tax remedy afforded by the REIT designation, it should distribute no less than 90% of its annual taxable earnings within the type of dividends.
“A dividend is any distribution of money or property made by an organization to its shareholders out of its earnings and earnings from the present taxable yr after which from accrued earnings and earnings from prior years. If there aren’t any earnings and earnings obtainable for a distribution, the distribution is taken into account a return of capital for the shareholder and is subsequently nontaxable to the extent the shareholder has foundation within the REIT shares,” in response to RSM.
Why GLPI Dividend Hike Issues
When accounting for the quarterly dividend improve, GLPI’s annual payout will rise to $2.88 a share. Based mostly on the February 23 closing worth of $52.50, the brand new dividend boosts the yield on the inventory to five.48%.
That’s greater than double the trailing 12-month dividend yield discovered on the Dow Jones U.S. Actual Property Capped Index and nicely above the yield provided by 10-year Treasuries.
Penn Leisure is GLPI’s largest tenant and different purchasers embody Bally’s, Boyd Gaming, Caesars Leisure and Cordish Cos.