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Investing.com - JMP Securities has reiterated its Market Outperform rating and $55.00 price target on Gaming and Leisure Properties (NASDAQ:GLPI), a $13.37 billion market cap REIT, following the company’s recent $1.3 billion notes offering. According to InvestingPro data, the company maintains a healthy 6.8% dividend yield and has shown steady revenue growth of 5.38% over the last twelve months.
The proceeds from the debt issuance are expected to be used toward an early-2026 maturity along with loan and construction commitments, as the company partners with tenants to finance growth needs. JMP’s price target represents approximately 14 times current year earnings. InvestingPro analysis suggests the stock is currently undervalued, with multiple ProTips highlighting the company’s strong financial position, including its impressive current ratio of 3.02.
Gaming and Leisure Properties has been active in capital markets recently, settling more than $400 million of equity before this $1.3 billion notes issuance. The company has typically issued unsecured debt well ahead of scheduled maturity dates to ensure seamless execution.
The REIT has implemented a multi-year plan to strategically reduce leverage, with net debt to EBITDA currently in the mid-4x range, approximately one turn below the net-lease REIT sector average. This provides flexibility for future deployments.
JMP notes that GLPI shares currently trade at 12 times 2025 estimated AFFO per share, about 1.5 turns below the net-lease REIT average, which the firm views as an unwarranted discount.
In other recent news, Gaming and Leisure Properties reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.79 against a forecast of $0.75, representing a 5.33% surprise. However, the company’s revenue for the same period was slightly below expectations, coming in at $394.9 million compared to the anticipated $396.97 million. Additionally, Gaming and Leisure Properties announced a public offering of $1.3 billion in senior notes through its operating partnership, GLP Capital, L.P., and subsidiary GLP Financing II, Inc. This offering includes two tranches: senior notes due 2033 with a 5.250% coupon and senior notes due 2037 with a 5.750% coupon. These recent developments reflect key financial activities and performance metrics of the company, providing investors with insights into its current financial standing.
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