Gaming and Leisure Properties Interested in Strip Real Estate Acquisition

After antecedently indicating it wasn’t enamored past the prospect of increasing its step on the Las Vegas Strip, Gaming and Leisure Properties (NASDAQ:GLPI) is signaling willingness to moot a Sin City acquisition.

The real acres investment swear (REIT) owns the prop assets of the Tropicana, but that’s its only if holding on the Strip. Previously, GLPI CEO Simon Peter Carlino expressed a penchant for regional cassino properties inward “the hinterlands” piece eschewing the unpredictability of the Strip. But on the company’s third-quarter earnings conference call up in conclusion week, the chief executive director officer said he’s willing to adapt that consider and potentially judge Strip tangible demesne acquisitions.

We’ve never had any ill feelings toward Strip assets, it’s just a affair of cost,” said Carlino, responding to an analyst’s question. “We’ve found more note value inward the regional markets.”

The GLPI CEO admitted he was “chastened” by the resilience of the Las Vegas Strip in the viewing of the coronavirus pandemic.

“We knew what would befall inward the regional markets with people the for the first time arcminute they could lead out of their door would be to head over to our properties, and did so with great enthusiasm. But Vegas, i was a small flake more conservative almost it, and i was wrong, frankly,” he said on the call.

GLPI Las Vegas Activity

While its Strip front is light, GLPI is active in the Las Vegas area. Bally’s latterly completed its purchase of Tropicana’s operating rights, and the time to come of that locus could include a important inspection and repair or outright demolition.

Penn Entertainment is provision to stunt woman the size of the M Resort inwards Henderson, Silver State — another attribute owned by GLPI. The REIT also owns the dimension assets of Cactus Pete’s inwards Jackpot, and the Tropicana Laughlin.

As its portfolio stands today, GLPI is a stark direct contrast to its lone publically traded competitor — VICI Properties (NYSE:VICI). Not only does VICI have the tangible demesne of Caesars Palace, it’s past far the largest landlord on the Strip.

The mass of GLPI’s gaming existent estate assets are concentrated inward the Mid-Atlantic region, the Midwest, and the South past way of significant holdings inwards LA and Mississippi.

GLPI New View of Las Vegas

The rate of Strip tangible demesne transactions over the past times dyad of years has been solid, if non brisk, indicating on that point could live opportunities for GLPI to go away shopping. On the conference call, Carlino did not cite specific properties the REIT could target. But he was remorseful almost ignoring Las Vegas following COVID-19, and appears unresolved to rectifying that mistake.

“But Vegas, i was a small chip more conservative well-nigh it. And i was wrong. Frankly, you regard the result. So look, it’s only if about money,” he said on the call. “There’s null that we won’t own. I’ll move both directions. We’d enjoy to experience Strip properties. I’ve often said to many of you that I’d have a shack in the beach with no windows and doors if the immediate payment rate of flow was shake solid.”

It’s expected that Caesars Entertainment will sell a Strip locale — potentially Flamingo. That transaction was supposed to occur this yr and it did not. But it could follow ane of the world-class inward 2023.