Gaming and Leisure Properties, Inc. Announces Acquisition of the Real Estate Assets of Bally’s Casino Tunica and Resorts Ca...
March 28 2017 - 9:00AM
- Purchase Price of $82.6 Million With
Initial Rent of $9.0 Million -- Properties Will Be
Operated by Penn National Gaming, Inc. --
Acquisition Is Expected To Be Immediately Accretive -
Gaming and Leisure Properties, Inc. (Nasdaq:GLPI) ("GLPI" or the
"Company") today announced that it has entered into a definitive
agreement to acquire the real estate assets of Bally’s Casino
Tunica and Resorts Casino Tunica located in Robinsonville,
Mississippi for $82.6 million. The two properties combined include
75,000 casino square feet, 1,747 slot machines and 25 table games.
In addition to the casinos, the properties include six restaurants,
201 hotel rooms and 18,000 square feet of meeting space. The
properties will be operated by Penn National Gaming, Inc.
(NASDAQ:PENN) and will be added to the existing master lease with
Penn. Initial rent of $9.0 million, which equates to 2.3
times rent coverage on combined property adjusted EBITDA for the
twelve months ended December 31, 2016, is subject to escalators and
adjustments consistent with the other master lease
properties. The transaction, which is expected to be
immediately accretive, is subject to regulatory approval and is
expected to close in the second quarter of 2017. The
transaction is expected to be funded with a combination of debt and
equity, within the Company’s existing Revolving Credit Facility and
ATM program.
Chief Executive Officer, Peter M. Carlino,
commented, “The acquisition of Bally’s and Resorts in Tunica
reflects the Company’s focus on creating shareholder value by
completing accretive transactions at attractive multiples.
Additionally, the transaction demonstrates our ability to work with
our existing partners to create opportunities that are mutually
beneficial. Penn has extensive experience operating in the
Tunica market and has the ability to effectively maximize the
operating potential of the properties. Inclusion of these
assets in the master lease is an important benefit of this
transaction as it will increase asset diversification, improve
aggregate rent coverage and further enhance the benefit of
cross-collateralization.”
Disclosure Regarding Non-GAAP Financial
Measures
Adjusted EBITDA is a non-GAAP performance
measure, which the Company believes may provide additional
meaningful comparisons between current results and results in prior
periods. Non-GAAP performance measures should be viewed in addition
to, and not as an alternative for, the reported results under
accounting principles generally accepted in the United States.
Further information regarding these measures and reconciliation to
GAAP may be found in Gaming & Leisure Properties, Inc.’s SEC
filings on the SEC’s website.
About Gaming and Leisure Properties
GLPI 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. GLPI expects to grow its
portfolio by pursuing opportunities to acquire additional gaming
facilities to lease to gaming operators. GLPI also intends to
diversify its portfolio over time, including by acquiring
properties outside the gaming industry to lease to third parties.
GLPI elected to be taxed as a REIT for United States federal income
tax purposes commencing with the 2014 taxable year and is the first
gaming-focused REIT in North America.
Forward-Looking Statements
This press release includes “forward-looking
statements” within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act
of 1934, as amended, including statements regarding our
expectations for growth and diversification. 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 ability to receive, or delays in
obtaining, the regulatory approvals required to own and/or operate
its properties, or other delays or impediments to completing GLPI’s
planned acquisitions or projects; GLPI's ability to maintain its
status as a REIT; the availability of and the ability to identify
suitable and attractive acquisition and development opportunities
and the ability to acquire and lease those properties on favorable
terms; our ability to access capital through debt and equity
markets in amounts and at rates and costs acceptable to GLPI;
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, 2016, 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.
Contact
Investor Relations – Gaming and Leisure
Properties, Inc.
Bill CliffordT: 610-401-2900Email:
bclifford@glpropinc.com
Hayes CroushoreT: 610-378-8396Email:
hcroushore@glpropinc.com
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From Aug 2024 to Sep 2024
PENN Entertainment (NASDAQ:PENN)
Historical Stock Chart
From Sep 2023 to Sep 2024