Gaming and Leisure Properties Acquires Real Estate Assets of Tioga Downs Casino Resort for $175 Million
06 Février 2024 - 11:33PM
Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI”)
announced today that it acquired the real estate assets of Tioga
Downs Casino Resort (“Tioga Downs”) in Nichols, NY from American
Racing & Entertainment, LLC (“American Racing”) for
$175.0 million. Simultaneous with the acquisition, GLPI and
American Racing entered into a triple-net master lease agreement
for an initial 30-year term. The initial annual rent for the new
master lease is $14.5 million and represents an 8.3% capitalization
rate. The initial annualized rent coverage ratio for the lease is
expected to be over 2.3x. Rent associated with the lease is subject
to a fixed 1.75% annual escalation beginning with the first
anniversary and a fixed annual escalation of 2.0% beginning in year
fifteen of the lease and carrying forward through the balance of
its term.
Located in Nichols, NY, Tioga Downs Casino
Resort is a roughly 162-acre property that features a 32,600 sq.
ft. gaming floor with 895 slots and 29 table games, a 2,500 sq. ft.
FanDuel sports book, a 160-room hotel, 5/8-mile harness horse
track, 7 food and beverage locations, and a separate 18-hole
championship golf course. The property underwent a $130 million
expansion beginning in 2016 after it was awarded a Class III casino
license by the State of New York.
Peter Carlino, GLPI’s Chairman and CEO,
commented, “We are pleased to add Tioga Downs to our portfolio and
the new relationship with American Racing to our tenant roster.
Tioga Downs further diversifies our portfolio, expanding it to 62
properties across 19 states with 8 tenants. American Racing has 20
years of gaming, horse racing, and hotel experience, marking
another addition to our portfolio of leading gaming operator
tenants. Tioga Downs is a high-quality, recently expanded asset
with significant geographic protection from competition. We look
forward to the start of a fruitful partnership with American
Racing. Our initiatives to further expand our portfolio remain
active in the current environment as our reputation as the gaming
landlord of choice is strengthened.”
Jeff Gural, Founder and Chief Executive Officer
of American Racing, added, “We are excited to partner with the team
at GLPI as we continue to grow our business at Tioga Downs. Our
locals-oriented property has a well-protected feeder market with no
competition within 85 miles and a very loyal following. Its
location largely insulates it from gaming expansion in the
downstate New York region. GLPI is a great steward of regional
casino assets, and we are excited to begin this new relationship.
I’m also personally looking forward to becoming a GLPI
unitholder.”
The transaction was funded with cash on hand and
the issuance of $20.0 million in OP units. Since the end of the
third quarter 2023, GLPI has issued 4.06 million shares through its
ATM (At-The-Market) program which raised net proceeds of $188.9
million, in part towards the funding of this transaction, as well
as its overall potential acquisition pipeline.
Citizens JMP Securities acted as financial
advisor to Gaming and Leisure Properties. Innovation Capital served
as the financial advisor to American Racing.
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.
About American Racing &
EntertainmentFounded in 2005, American Racing is a leading
regional casino operator in upstate New York. American Racing’s
casino properties include Tioga Downs Casino Resort located in
Nichols, NY, and Vernon Downs Casino Hotel (“Vernon Downs”) located
in Vernon, NY. Tioga Downs was established in 1974 as a quarter
horse track known as Tioga Park. Today, Tioga Downs offers
entertainment for everyone with amenities that include 895 slots,
29 table games, a 160-room hotel, 7 F&B venues, live harness
racing, a FanDuel sports book, a championship golf course, and
13,000+ SF of indoor/outdoor event space. Vernon Downs first opened
in 1953 and following its purchase by American Racing in 2006, now
operates 512 video gaming machines, a 150-room hotel, 5 F&B
venues, live harness racing, and an 8,600 SF event center.
Forward-Looking Statements
This 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 expectations regarding the
anticipated future rent coverage and the benefits of the
transaction to our shareholders. 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: GLPI’s ability to expand its relationship
with American Racing; the potential negative impact of recent high
levels of inflation (which have been exacerbated by the armed
conflict between Russia and Ukraine) on our tenants' operations;
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 and ability to grow through
acquisition; 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, 2022, 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.
Contact |
|
Gaming
and Leisure
Properties, Inc.Matthew
Demchyk, Chief Investment
Officer610/401-2900investorinquiries@glpropinc.com |
Investor
RelationsJoseph Jaffoni, Richard Land, James Leahy
at JCIR212/835-8500glpi@jcir.com |
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