Gaming and Leisure Properties

Gaming and Leisure Properties, Inc.
Public
Traded as NASDAQ: GLPI
Founded November 2013 (November 2013)
Headquarters Wyomissing, Pennsylvania, United States
Website glpropinc.com

Gaming and Leisure Properties, Inc. 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 35 casino properties, and operates two of them.

History

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

In November 2013, GLPI agreed to finance a proposed billion-dollar casino in Milford, Massachusetts,[3] but the project was killed days later when town voters rejected the casino.[4]

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.[5]

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.[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] The deal ran into trouble, with GLPI filing a lawsuit accusing Cannery of fraud in October 2014; the lawsuit was eventually settled with an agreement on a reduced purchase price of $440 million.[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.[10] In July, the companies reached a deal for GLPI to buy 14 of Pinnacle's 15 properties for $4.75 billion in stock, and lease them back to Pinnacle, with rent starting at $377 million per year.[11] The acquisition was completed in April 2016.[12] GLPI also completed its purchase of The Meadows in September 2016 and sold the racetrack operation to Pinnacle for $138 million.[13][14]

In May 2015, GLPI agreed to finance the real estate portion of a proposed $650-million casino in New Bedford, Massachusetts,[15] but the plan was canceled months later after developers failed to secure the rest of the needed funding.[16]

Properties

Gaming and Leisure Properties owns the following properties:[17]

Owned and operated

Leased to Penn National Gaming

Casinos

Racinos

Leased to Pinnacle Entertainment

Leased to other companies

Former properties

References

  1. ↑ Jamison Cocklin (November 2, 2013). "Penn National forms spin-off company for tax breaks on real estate". Youngstown Vindicator. Retrieved 2013-11-07.
  2. ↑ Dimitra Defotis (November 16, 2012). "Penn National Gaming hits jackpot". Barron's. Retrieved 2013-11-07. (subscription required)
  3. ↑ Bob Salsberg (November 16, 2013). "Foxwoods Group Has Mass. Casino Finance Deal". CBS Boston. AP. Retrieved 2014-05-18.
  4. ↑ Mark Arsenault; Ellen Ishkanian (November 19, 2013). "Milford voters reject Foxwoods-backed casino plan". Boston Globe. Retrieved 2014-05-18.
  5. ↑ "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.
  6. ↑ Form 10-K: Annual Report (Report). Gaming and Leisure Properties. February 27, 2015. p. 37 – via EDGAR.
  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 (December 16, 2015). "Legal matters resolved, GLPI acquires Cannery's Pittsburgh racetrack". Las Vegas Review-Journal. Retrieved 2016-07-22.
  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. 1 2 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. ↑ Howard Stutz (July 21, 2015). "Pinnacle, GLPI agree on $4.75B merger". Las Vegas Review-Journal. Retrieved 2016-07-22.
  12. ↑ "Gaming and Leisure Properties, Inc. completes the previously announced acquisition of the real estate assets of Pinnacle Entertainment, Inc." (Press release). Pinnacle Entertainment. April 28, 2016. Retrieved 2016-07-22.
  13. ↑ Paul J. Gough (March 30, 2016). "Meadows license, gaming assets sold for $138M". Pittsburgh Business Times. Retrieved 2016-07-22.
  14. ↑ Paul J. Gough (September 12, 2016). "Meadows Casino now under new ownership". Pittsburgh Business Times. Retrieved 2016-09-12.
  15. ↑ 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.
  16. ↑ "Officials mull future after New Bedford casino plan scrapped". Boston Herald. AP. July 24, 2015. Retrieved 2015-07-24.
  17. ↑ "Our Portfolio". Gaming and Leisure Properties, Inc. Retrieved 2014-05-18.

External links

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