Business
Gaming and Leisure Properties Completes Acquisition of Two Regional Gaming Properties, Enters into Master Lease Agreement with Bally’s Corporation
Adds Fifth Tenant Relationship Through Long-Term Partnership with Bally’s Corporation WYOMISSING, Pa., June 04, 2021 (GLOBE NEWSWIRE) -- Gaming and Leisure
About this update from Gaming And Leisure Properties, Inc.
[{"type":"text","content":"Adds Fifth Tenant Relationship Through Long-Term Partnership with Bally’s Corporation\nWYOMISSING, Pa., June 04, 2021 (GLOBE NEWSWIRE) -- 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 ca...