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Gaming And Leisure Properties (GLPI) Could Be 22% Undervalued On Joliet Expansion And Earnings

Simply Wall St · 2d ago

Gaming and Leisure Properties (GLPI) just reshaped its story. The REIT announced its first joint venture with Prologis on an industrial park in Joliet, alongside fresh quarterly results showing higher sales and revenue but lower net income.

Those moves come against a mixed share price backdrop, with Gaming and Leisure Properties trading at US$38.89 after the stock declined about 9% over the past three months, while the 5-year total shareholder return of 12.39% points to steadier long-term compounding for patient holders.

Scan the REIT space beyond Gaming and Leisure Properties by comparing its Joliet pivot with a hand-picked list of solid balance sheet and fundamentals (25 results).

Gaming and Leisure Properties now mixes a fresh industrial venture with a sliding share price and a long record of compounding. Do those ingredients still tilt the risk reward toward new buyers at this valuation?

Most Popular Narrative: 22% Undervalued

The most followed narrative currently values Gaming and Leisure Properties at $49.80 per share, compared with the recent $38.89 close. This frames the Joliet industrial move and casino pipeline as part of a broader long term cash flow story rather than a one off headline.

The ongoing development and deployment of committed capital into projects such as Bally’s Chicago, Penn’s Aurora, Bally’s Lincoln and Live! Virginia is now backed by about US$1.8b of future funding expected to be deployed by year end 2027. This can add incremental cash rent and support higher adjusted funds from operations and net income.

See why 31 investors see Gaming and Leisure Properties as 22% undervalued.

Result: Fair Value of $49.80 (UNDERVALUED)

Still, the narrative around Gaming and Leisure Properties can crack if Bally’s credit profile weakens further or if higher funding costs squeeze returns on new projects.

Find out about the key risks to this Gaming and Leisure Properties narrative.

Next Steps

Mixed signals around Gaming and Leisure Properties can pull sentiment in both directions, so move quickly, pressure test the optimism and concern, and ground your own view with the underlying 5 key rewards and 2 important warning signs.

Looking for more ideas beyond Gaming and Leisure Properties?

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