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Gaming and Leisure Properties

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Gaming and Leisure Properties, Inc. (Nasdaq: GLPI) is a real estate investment trust (REIT) specializing in casino properties, based in Wyomissing, Pennsylvania. It was formed in November 2013 as a corporate spin-off from Penn National Gaming. The company owns 21 casino properties, and operates two of them.[1]

History

The company was created as a corporate spin-off from Penn National Gaming, effective November 1, 2013.[2] The corporate breakup was designed to increase investor returns by taking advantage of the lack of federal income taxes on REITs.[3]

In November 2013, GLPI agreed to finance a proposed billion-dollar casino in Milford, Massachusetts,[4] but the project was killed days later when town voters rejected the casino.[5]

In January 2014, the company acquired the real estate assets of the Casino Queen in East St. Louis, Illinois for $140 million, and leased them back to the casino's operating company for $14 million a year. GLPI also loaned $43 million to the casino.[6]

The company's Argosy Casino in Sioux City, Iowa was forced to close in July 2014, and GLPI then sold the casino's real estate.[7]

In May 2014, GLPI agreed to buy The Meadows Racetrack and Casino in western Pennsylvania from Cannery Casino Resorts for $465 million. The company said it would sell the facility's license to a third-party operator, while retaining ownership of the land and buildings.[8]

After casino operator Pinnacle Entertainment announced its own plan in November 2014 to spin-off a REIT with the real estate assets of its 15 casinos,[9] GLPI approached Pinnacle with an offer to buy those assets, which it said would be simpler and faster than Pinnacle's plan.[10] Pinnacle did not respond to the offer, so GLPI went public with its offer in March 2015, proposing to acquire Pinnacle's real estate for $4.1 billion in stock and assumed debt, and to lease the properties back to Pinnacle for $358 million per year.[10]

In May 2015, GLPI agreed to finance the real estate portion of a proposed $650-million casino in New Bedford, Massachusetts,[11] but the plan was canceled months later after developers failed to secure the rest of the needed funding.[12]

Properties

Gaming and Leisure Properties owns the following properties:[1]

Owned and operated

Properties leased to Penn National Gaming

Casinos

Racinos

Properties leased to other companies

Former properties

References

  1. ^ a b "Our Portfolio". Gaming and Leisure Properties, Inc. Retrieved 2014-05-18.
  2. ^ Jamison Cocklin (November 2, 2013). "Penn National forms spin-off company for tax breaks on real estate". Youngstown Vindicator. Retrieved 2013-11-07.
  3. ^ Dimitra Defotis (November 16, 2012). "Penn National Gaming hits jackpot". Barron's. Retrieved 2013-11-07. (subscription required)
  4. ^ Bob Salsberg (November 16, 2013). "Foxwoods Group Has Mass. Casino Finance Deal". CBS Boston. AP. Retrieved 2014-05-18.
  5. ^ Mark Arsenault; Ellen Ishkanian (November 19, 2013). "Milford voters reject Foxwoods-backed casino plan". Boston Globe. Retrieved 2014-05-18.
  6. ^ "Gaming and Leisure Properties, Inc. closes acquisition of the real estate assets related to the Casino Queen in East St. Louis for $140 million" (Press release). Gaming and Leisure Properties. January 23, 2014. Retrieved 2014-05-18.
  7. ^ Form 10-K: Annual Report (Report). Gaming and Leisure Properties. February 27, 2015. p. 37 – via EDGAR.
  8. ^ Paul J. Gough (May 14, 2014). "New Meadows owner has short history, familiar name, big growth plans". Pittsburgh Business Times. Retrieved 2014-05-18.
  9. ^ Howard Stutz (November 6, 2014). "Pinnacle Entertainment plans to split off casinos into a REIT". Las Vegas Review-Journal. Retrieved 2015-03-09.
  10. ^ a b Howard Stutz (March 9, 2015). "GLPI offers $4.1 billion for Pinnacle Entertainment's real estate". Las Vegas Review-Journal. Retrieved 2015-03-09.
  11. ^ Mike Lawrence (May 4, 2015). "New Bedford casino developer names big new partners, meets state financial deadline". The Standard-Times. New Bedford, MA. Retrieved 2015-05-14.
  12. ^ "Officials mull future after New Bedford casino plan scrapped". Boston Herald. AP. July 24, 2015. Retrieved 2015-07-24.
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