Gaming and Leisure Properties, also known as GLPI, has increased its portfolio by acquiring three casino resorts in South Dakota and Nevada.
GLPI Increases Portfolio With Three Casinos In South Dakota & Nevada
GLPI has spent a reported $105 million when purchasing the three casino resorts in South Dakota and Nevada, as it looks to increase its name across North America.
The selected properties were the Silverado Franklin Hotel & Gaming Complex and the Deadwood Mountain Grand in South Dakota, alongside the Baldini’s Casino in Nevada.
GLPI has also created a new ‘tenant’ agreement with Strategic Gaming Management, as it enters a longer-term lease partnership in 2024.
This new agreement has a variety of terms, as GLPI will now lease the newly purchased properties to partners of Strategic Gaming Management for around 25-years.
Over the course of these agreements, the overall investment (which includes capital improvement proceeds) has reached $110m.
Annually, this lease will make an initial aggregate cash rent of $9.2m and this will represent a capitalization rate of 8.4%.
GLPI has also obtained a right of first refusal on any purchases in the future that are in partnership with Strategic Gaming Management.
This runs until SGM’s adjusted earnings, prior to interest, depreciation, taxes, amortization and restructuring or rent costs finish $40m per year.
GLPI CEO and Chairman, Peter Carlino, spoke about the new additions at the company and how it can improve operating results.
He said: “With our acquisition of the Silverado, DMG and Baldini’s properties, we are pleased to further diversify our property portfolio while expanding our tenant roster through our new relationship with Strategic, a dynamic and growing gaming operator.
“The addition of Strategic’s properties expands our portfolio to 65 properties across 20 states with 9 tenants and is expected to be immediately accretive to GLPI’s operating results.”
Strategics’ CEO, J. Grant Lincoln, was also pleased with the new partnership and believes it can kick-start a period of growth.
He said: “We are pleased to begin our partnership with GLPI. Our operating approach, informed by decades of successful experience in competitive gaming markets, is laser-focused on bottom-line results.
“Our platform is well positioned for thoughtful, ongoing growth. As we explored the options for a sale-leaseback partner, GLPI rose above the rest given their unique approach and true emphasis on partnership as well as their deep experience as gaming operators.”
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