Gaming and Leisure Properties’ Promotion to S&P MidCap 400

Published: September 1, 2023, 05:32h. 

Last updated: September 1, 2023, 05:32h.

Gaming and Leisure Properties (NASDAQ: GLPI) has received a significant boost as it has been added to the S&P MidCap 400 Index, according to Standard & Poor’s (S&P). This move is crucial for the gaming real estate investment trust (REIT) and its investors.

Gaming and Leisure Properties
A slide from a Gaming and Leisure Properties presentation. The stock is joining the S&P MidCap 400 Index. (Image: Seeking Alpha)

The addition to the mid-cap index is a result of Gaming and Leisure Properties’ market value exceeding the limit for the S&P SmallCap 600 Index. With a market capitalization of $12.45 billion, the REIT’s inclusion in the S&P MidCap 400 Index is appropriate.

“The changes ensure each index is more representative of its market capitalization range. All companies being added to the S&P MidCap 400 are more representative of the mid-cap market space, and all companies being added to the S&P SmallCap 600 are more representative of the small-cap market space,” according to S&P Dow Jones Indices.

Gaming and Leisure Properties will officially join the mid-cap index on Monday, September 18, at the start of US markets.

Why this Matters for GLPI Investors

The inclusion in the S&P MidCap 400 Index means that GLPI shares will attract a wider range of institutional investors. This includes active fund managers who benchmark against the gauge, as well as passive funds such as exchange-traded funds (ETFs) that track the index.

Several significant ETFs track the mid-cap gauge, including the SPDR S&P MIDCAP 400 ETF Trust (NYSEARCA: MDY), which has $19.74 billion in assets under management, the iShares Core S&P Mid-Cap ETF (NYSEARCA: IJH) with $74.67 billion in assets, and the Vanguard S&P MidCap 400 ETF (NYSEARCA: IVOO) with $1.7 billion in assets as of July 31.

In other gaming-related news, Blackstone (NYSE: BX), a major private equity firm that owns the real estate of several well-known Las Vegas Strip casino resorts, will also join the S&P 500 Index.

Busy Week for GLPI

GLPI’s inclusion in the S&P MidCap 400 Index comes after a series of notable events for the company. This week, the REIT announced its acquisition of the real estate associated with the Hard Rock Casino development in Rockford, Illinois, for $100 million.

Additionally, GLPI revealed that it is raising its quarterly dividend by one cent per share to 73 cents, marking its second dividend increase this year. With a year-to-date decline of 8.54%, the stock currently offers a dividend yield of 6.07%.

“The dividend is payable on September 29, 2023, to shareholders of record on September 15, 2023. The third quarter 2022 cash dividend was $0.705 per share of the Company’s common stock,” according to a statement issued by the Pennsylvania-based REIT.

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