UPDATE: Gaming and Leisure Properties (GLPI) PT Lowered to $49 at Scotiabank (correction)

June 30, 2022 11:51 AM EDT
Get Alerts GLPI Hot Sheet
Price: $52.68 +1.23%

Rating Summary:
    22 Buy, 5 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 24 | New: 34
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(Updated - June 30, 2022 11:52 AM EDT)

Scotiabank analyst Greg McGinniss lowered the price target on Gaming and Leisure Properties (NASDAQ: GLPI) to $49.00 (from $51.00) while maintaining a Sector Perform rating.

The analyst comments "Yesterday, GLPI announced the $1.0bn acquisition (7.63% cap rate) of two Rhode Island casinos owned by Bally’s, Twin River Lincoln Casino Resort and Tiverton Casino & Hotel, with the deal anticipated to close in late 2022. Assuming the deal does close at that time, we estimate 2023 AFFOPS earnings accretion of ~2.9% (assuming 2023 debt paid down with the expected issuance). The casinos will be added to the existing Bally’s master lease with an expected aggregate one-year forward rent coverage of 2.0x. Although the cap rate is tighter than prior Bally’s acquisitions, we view this as a good acquisition for GLPI given the earnings accretion and strengthening of the master lease."

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