Gaming And Leisure Properties: 5% Yield With Economic Moat

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Cappuccino Finance


  • GLPI's AFFO has been rapidly growing in the past 5 years (average 13.42%) and will continue to do so for the foreseeable future.
  • GLPI has a great economic moat with built-in growth in their lease agreements.
  • GLPI has been paying a solid dividend (4-year average of 6.9%), and I expect them to increase the payment to the pre-pandemic level soon.
  • They were undervalued by the market, given their FWD P/AFFO of 14.02x is about 30% lower than the sector median. I expect it to converge to the median soon.

Black Casino Cards Royal Flush

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Investment Thesis

Gaming and Leisure Properties (NASDAQ:GLPI) is a REIT that acquires, finances, and owns real estate properties for gaming operators in triple-net lease agreements. I believe they present a great investment opportunity because:

  1. GLPI
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This article was written by

Cappuccino Finance profile picture
Visit me at Cappuccino Finance, I share my top picks (Value, Growth, Dividend & Growth), market outlook, and interesting ideas from super investors, based on my 12 years of experience and knowledge in stock investment and in real estate. I, Justin J. Lee, believe in fundamental analysis and disciplined market research. I have strong quant background with a Ph.D. (University of California, Santa Barbara) in model predictive control and an MBA (Jones School of Business, Rice University). My primary focus is to identify 1) small cap companies with strong fundamentals and growth potential, 2) large cap companies going through temporary set-backs, and 3) stable companies with solid dividend yields and growth potential.

Disclosure: I/we have a beneficial long position in the shares of GLPI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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