Gaming and Leisure Properties

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, 19 of which are leased back to Penn National.[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]

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.[7]

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,[8] GLPI approached Pinnacle with an offer to buy those assets, which it said would be simpler and faster than Pinnacle's plan.[9] 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.[9]

Properties

Gaming and Leisure Properties owns the following properties:[10]

Owned and operated

Properties leased to Penn National Gaming

Casinos

Racinos

Properties leased to other companies

References

  1. ↑ Howard Stutz (October 7, 2013). "Penn National to begin spinoff of real estate holdings". Las Vegas Review-Journal. Retrieved 2013-11-07.
  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. ↑ Paul J. Gough (May 14, 2014). "New Meadows owner has short history, familiar name, big growth plans". Pittsburgh Business Times. Retrieved 2014-05-18.
  8. ↑ Howard Stutz (November 6, 2014). "Pinnacle Entertainment plans to split off casinos into a REIT". Las Vegas Review-Journal. Retrieved 2015-03-09.
  9. ↑ 9.0 9.1 Howard Stutz (March 9, 2015). "GLPI offers $4.1 billion for Pinnacle Entertainment’s real estate". Las Vegas Review-Journal. Retrieved 2015-03-09.
  10. ↑ "Our Portfolio". Gaming and Leisure Properties, Inc. Retrieved 2014-05-18.

External links