Gaming and Leisure Properties Completes Acquisition of Two Regional Gaming Properties, Enters into Master Lease Agreement wit...
June 04 2021 - 8:00AM
Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (the “Company”),
today announced the completion of its previously announced
transaction to acquire the land and real estate assets of Tropicana
Evansville from Caesars Entertainment (NASDAQ: CZR) (“Caesars”) and
The Dover Downs Hotel and Casino from Bally’s Corporation (NASDAQ:
BALY) (“Bally’s”) for an aggregate purchase price of approximately
$484.0 million in cash. The Company funded the transaction with
cash on hand which was in part generated by its equity raise
completed on October 29, 2020.
Simultaneous with the closing of the
transaction, the Company entered into a triple-net master lease
agreement with Bally’s. The master lease has an initial total
annual cash rent of $40.0 million and an initial term of 15 years
with four 5-year tenant renewal options, as well as annual lease
escalation terms based on the Consumer Price Index, with a 1% floor
and 2% ceiling, subject to CPI meeting a .5% threshold.
Peter Carlino, Chairman and CEO of GLPI
commented, “We are pleased to add these high-quality regional
assets to our portfolio, expand our roster of operators, and gain
geographic exposure to a new state. Bally’s is one of the nation’s
most dynamic regional gaming operators and we look forward to
further supporting the execution of their growth plans. In
particular, we look forward to adding their Mardi Gras and Golden
casinos in Blackhawk, Colorado and their Jumer’s Casino and Hotel
in Rock Island, Illinois to our existing master lease as we further
expand our partnership.
“Furthermore, as the owner of the nation’s
largest regional gaming portfolio, we are extraordinarily
encouraged by operating results at regional properties across our
portfolio. After the underlying properties successfully re-opened
from mandated COVID-19 closures, the $6.1 million of additional
annual cash rent generated by the May 1, 2021 achievement of rent
escalators in each of our Pinnacle master lease operated by Penn
National Gaming, Inc. (NASDAQ: PENN), our master lease with Boyd
Gaming Corporation (NYSE: BYD) (“Boyd”), and our Belterra Park
lease with Boyd underscores this robust and recently accelerated
operational strength.”
Tropicana Evansville was the first casino in
Indiana to move from a riverboat vessel to a landside facility in
2017. The property, located on approximately 20 acres along the
Ohio river in Vanderburgh County features 46,265 square feet of
casino space, 1,145 gaming machines, 41 table games, 338 hotel
rooms, and approximately 47,000 square feet of meeting space, and a
sportsbook.
Dover Downs Casino and Hotel is situated on
approximately 70 acres in Delaware’s capital city. It is accessible
to the Northeast Corridor and proximate to beach communities on the
Eastern Shore. The property features approximately 145,000 square
feet of casino space, 2,188 video lottery terminals, 38 table
games, 500 hotel rooms, a race book, and a sportsbook.
About Gaming and Leisure
PropertiesGLPI is engaged in the business of acquiring,
financing, and owning real estate property to be leased to gaming
operators in triple-net lease arrangements, pursuant to which the
tenant is responsible for all facility maintenance, insurance
required in connection with the leased properties and the business
conducted on the leased properties, taxes levied on or with respect
to the leased properties and all utilities and other services
necessary or appropriate for the leased properties and the business
conducted on the leased properties.
Forward-Looking StatementsThis
press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including our ability to expand our tenant relationships through
the acquisition of new properties and our ability to receive the
necessary approvals and satisfy conditions precedent necessary to
close previously announced transactions. Forward-looking statements
can be identified by the use of forward-looking terminology such as
“expects,” “believes,” “estimates,” “intends,” “may,” “will,”
“should” or “anticipates” or the negative or other variation of
these or similar words, or by discussions of future events,
strategies or risks and uncertainties. Such forward looking
statements are inherently subject to risks, uncertainties and
assumptions about GLPI and its subsidiaries, including risks
related to the following: the effect of pandemics, such as the
novel coronavirus (COVID-19), on GLPI as a result of the impact of
such pandemics on the business operations of GLPI’s tenants and
their continued ability to pay rent in a timely manner or at all;
GLPI’s ability to successfully consummate the announced
transactions in Colorado and Illinois with Bally's, including the
ability of the parties to satisfy the various conditions to
closing, including receipt of all required regulatory approvals, or
other delays or impediments to completing the proposed
transactions; GLPI's ability to maintain its status as a REIT; our
ability to access capital through debt and equity markets in
amounts and at rates and costs acceptable to GLPI; the impact of
our substantial indebtedness on our future operations; changes in
the U.S. tax law and other state, federal or local laws, whether or
not specific to REITs or to the gaming or lodging industries; and
other factors described in GLPI’s Annual Report on Form 10-K for
the year ended December 31, 2020, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K, each as filed with the Securities
and Exchange Commission. All subsequent written and oral
forward-looking statements attributable to GLPI or persons acting
on GLPI’s behalf are expressly qualified in their entirety by the
cautionary statements included in this press release. GLPI
undertakes no obligation to publicly update or revise any
forward-looking statements contained or incorporated by reference
herein, whether as a result of new information, future events or
otherwise, except as required by law. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
in this press release may not occur as presented or at all.
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Contact: |
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Gaming and Leisure Properties, Inc. |
Investor Relations |
Matthew Demchyk, Chief Investment Officer |
Joseph Jaffoni, Richard Land, James Leahy at JCIR |
610/401-2900 |
212/835-8500 |
investorinquiries@glpropinc.com |
glpi@jcir.com |
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