written and last updated by
Sam Smith at
12 Jan 2024
Journalist, Editorial Department
Gaming and Leisure Properties, a real estate investment trust, is potentially considering the sale of the Tropicana Las Vegas hotel-casino at a reasonable price. This insight comes from Barry Jonas, an analyst at Truist Securities, following meetings with GLPI Chairman and CEO Peter Carlino and Senior Vice President Matthew Demchick.
Jonas noted that while the executives did not delve into specifics, it is quite possible that the investment fund will sell the property to the highest bidder. The analyst also mentioned that GLPI is exploring the acquisition of the permanent Bally’s casino in Chicago, which is still a few years away from opening. If this deal goes through, the casino would become one of the most expensive assets in the fund's portfolio.
At the same time, Gaming and Leisure Properties is open to expanding its presence in Las Vegas. Currently, the fund owns two properties in the area: the Tropicana on the Strip and the M Resort in Henderson. GLPI representatives informed Jonas that there are potentially vast opportunities in tribal gaming real estate. "Management noted that tribal properties represent a significant untapped market, although a solid foundation will be necessary for safe and reliable investment. Interest in acquisitions will depend on the quality of potential tenants and lease terms, as well as the characteristics of the properties," the analyst stated.
Recently, GLPI has been less active compared to its competitor VICI Properties. However, the fund has numerous plans for potential acquisitions, some of which may materialize in the near future.
Jonas highlighted that, according to Gaming and Leisure Properties' management, negotiations with casino operators have progressed over the past 6 to 12 months, resulting in a lengthy list of potential deals.
Meanwhile, Macau casino operator SJM Resorts has announced bonuses for 98% of its employees.
