International edition
May 13, 2021

Gaming and Leisure Properties is buying Bally's casino properties in Illinois and Colorado

Tropicana Vegas' future owner says deal with Bally's will add $12M in annual revenue

Tropicana Vegas' future owner says deal with Bally's will add $12M in annual revenue
GLPI announced the $308 million Tropicana Las Vegas transaction in mid-April and is expecting the deal to close early next year.
United States | 05/03/2021

The real-estate investment trust said Friday all of its 48 resort properties are open. The company said Illinois and Colorado assets are expected to be added to a previously announced Bally’s master lease for Tropicana Evansville and Dover Downs Hotel and Casino properties, slated to be completed by mid-2021.

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aming and Leisure Properties Inc. (GLPI), a gaming-focused real-estate investment trust affiliated with Penn National Gaming that is expected to become the new owner of the Tropicana Las Vegas, said Friday that all of its 48 resort properties are open in some capacity. Executives added that its expanded relationship with Bally’s Corp. will result in additional annual revenue of $12 million once the deal closes next year.

GLPI announced the $308 million Tropicana Las Vegas transaction in mid-April and is expecting the deal to close early next year.

Bally’s has agreed to spend $150 million to operate the Tropicana. GLPI will retain ownership of the land under the resort-casino and lease it back to Bally’s under an initial 50-year term for $10.5 million in annual rent, subject to increase.

In addition, Gaming and Leisure is acquiring the assets of Bally’s casino properties in Illinois and Colorado. They are expected to be added to a previously announced Bally’s master lease for Tropicana Evansville and Dover Downs Hotel and Casino properties, expected to be completed by mid-2021, according to Peter Carlino, Chairman and CEO of GLPI.

"We are delighted to expand and diversify our relationship with Bally’s through transactions that deliver strong rent coverage and an accretive cap rate," Carlino said in a press release. "By adding to the planned master lease with Bally’s, securing rights of first refusal on potential future assets and converting the Tropicana Las Vegas into an income producing ground lease, we expect to drive incremental cash flows while maintaining a strong balance sheet. We expect our tenants' strength, combined with our standing as the sector's only investment-grade balance sheet, to allow GLPI to consistently grow its cash flows and build value for shareholders in 2021 and beyond.”

GLPI reported first-quarter net income results of $127.2 million, 54 cents a share, on revenue of $301.5 million for the period. That compares with net income of $96.9 million, 45 cents a share, on revenue of $283.5 million in the same quarter a year earlier.

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