Morgan Stanley Remains Focused on Gaming and Leisure Properties' Acquisition Pipeline

In a report published Monday, Morgan Stanley analyst Thomas Allen reiterated an Equal-Weight rating and $37.00 price target on

. In the report, Morgan Stanley noted, “We remain Equal-weight GLPI following 4Q results that were generally in-line with our expectations. We continue to believe that GLPI can take advantage of its unique positioning and create value through M&A, and mgmt remains optimistic as it pursues a wide variety of potential transactions, some of which it expects to complete this year. We also like the stability of GLPI's cash flow stream (a nice contrast to the recent regional gaming volatility), with mgmt highlighting the variable portion of its rental income from PENN accounting for less than 10% of total rent and only ~8% of total EBITDA coming from its taxable REIT subsidiary (TRS). As a result, we expect GLPI to pay a healthy 5.5% dividend yield in 2014, though slightly below the triple net lease REIT average of ~6%.” Gaming and Leisure Properties closed on Friday at $38.23.