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Wyomissing,
PA & Nichols, NY – February 2024 / NewsmakerAlert:
Gaming
and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI”) announces that
it acquired the real estate assets of Tioga
Downs Casino Resort (“Tioga Downs”) in Nichols, NY from American Racing
& Entertainment, LLC (“American Racing”) for $175.0 million. Simultaneous
with the acquisition, GLPI and American Racing entered into a triple-net
master lease agreement for an initial 30-year term. The initial annual
rent for the new master lease is $14.5 million and represents an 8.3% capitalization
rate. The initial annualized rent coverage ratio for the lease is expected
to be over 2.3x. Rent associated with the lease is subject to a fixed 1.75%
annual escalation beginning with the first anniversary and a fixed annual
escalation of 2.0% beginning in year fifteen of the lease and carrying
forward through the balance of its term.
Located
in Nichols, NY, Tioga Downs Casino Resort is a roughly 162-acre property
that features a 32,600-sq.-ft. gaming floor with 895 slots and 29 table
games, a 2,500-sq.-ft. FanDuel sports book, a 160-room hotel, 5/8-mile
harness horse track, seven food and beverage locations, and a separate
18-hole championship golf course. The property underwent a $130 million
expansion beginning in 2016 after it was awarded a Class III casino license
by the State of New York.
Peter
Carlino, GLPI’s Chairman and CEO, commented, “We are pleased to add
Tioga Downs to our portfolio and the new relationship with American Racing
to our tenant roster. Tioga Downs further diversifies our portfolio, expanding
it to 62 properties across 19 states with eight tenants. American Racing
has 20 years of gaming, horse racing, and hotel experience, marking another
addition to our portfolio of leading gaming operator tenants. Tioga Downs
is a high-quality, recently expanded asset with significant geographic
protection from competition. We look forward to the start of a fruitful
partnership with American Racing. Our initiatives to further expand our
portfolio remain active in the current environment as our reputation as
the gaming landlord of choice is strengthened.”
Jeff
Gural, Founder and Chief Executive Officer of American Racing, added,
“We are excited to partner with the team at GLPI as we continue to grow
our business at Tioga Downs. Our locals-oriented property has a well-protected
feeder market with no competition within 85 miles and a very loyal following.
Its location largely insulates it from gaming expansion in the downstate
New York region. GLPI is a great steward of regional casino assets, and
we are excited to begin this new relationship. I’m also personally looking
forward to becoming a GLPI unitholder.”
The
transaction was funded with cash on hand and the issuance of $20.0 million
in OP units. Since the end of the third quarter 2023, GLPI has issued 4.06
million shares through its ATM (At-The-Market) program which raised net
proceeds of $188.9 million, in part towards the funding of this transaction,
as well as its overall potential acquisition pipeline.
Citizens
JMP Securities acted as financial advisor to Gaming and Leisure Properties.
Innovation Capital served as the financial advisor to American Racing.
About
Gaming and Leisure Properties
GLPI
is engaged in the business of acquiring, financing, and owning real estate
property to be leased to gaming operators in triple-net lease arrangements,
pursuant to which the tenant is responsible for all facility maintenance,
insurance required in connection with the leased properties and the business
conducted on the leased properties, taxes levied on or with respect to
the leased properties and all utilities and other services necessary or
appropriate for the leased properties and the business conducted on the
leased properties.
About
American Racing & Entertainment
Founded
in 2005, American Racing is a leading regional casino operator in upstate
New York. American Racing’s casino properties include Tioga
Downs Casino Resort located in Nichols, NY, and Vernon
Downs Casino Hotel (“Vernon Downs”) located in Vernon, NY. Tioga Downs
was established in 1974 as a quarter horse track known as Tioga Park. Today,
Tioga Downs offers entertainment for everyone with amenities that include
895 slots, 29 table games, a 160-room hotel, seven F&B venues, live
harness racing, a FanDuel sports book, a championship golf course, and
13,000+SF of indoor/outdoor event space. Vernon Downs first opened in 1953
and following its purchase by American Racing in 2006, now operates 512
video gaming machines, a 150-room hotel, five F&B venues, live harness
racing, and an 8,600-SF event center.
Forward-Looking
Statements
This
press release includes “forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including our expectations
regarding the anticipated future rent coverage and the benefits of the
transaction to our shareholders. Forward-looking statements can be identified
by the use of forward-looking terminology such as “expects,” “believes,”
“estimates,” “intends,” “may,” “will,” “should” or “anticipates” or the
negative or other variation of these or similar words, or by discussions
of future events, strategies or risks and uncertainties. Such forward-looking
statements are inherently subject to risks, uncertainties and assumptions
about GLPI and its subsidiaries, including risks related to the following:
GLPI’s ability to expand its relationship with American Racing; the potential
negative impact of recent high levels of inflation (which have been exacerbated
by the armed conflict between Russia and Ukraine) on our tenants’ operations;
GLPI’s ability to maintain its status as a REIT; our ability to access
capital through debt and equity markets in amounts and at rates and costs
acceptable to GLPI; the impact of our substantial indebtedness on our future
operations and ability to grow through acquisition; changes in the U.S.
tax law and other state, federal or local laws, whether or not specific
to REITs or to the gaming or lodging industries; and other factors described
in GLPI’s Annual Report on Form 10-K for the year ended December 31, 2022,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, each as
filed with the Securities and Exchange Commission. All subsequent written
and oral forward-looking statements attributable to GLPI or persons acting
on GLPI’s behalf are expressly qualified in their entirety by the cautionary
statements included in this press release. GLPI undertakes no obligation
to publicly update or revise any forward-looking statements contained or
incorporated by reference herein, whether as a result of new information,
future events or otherwise, except as required by law. In light of these
risks, uncertainties and assumptions, the forward-looking events discussed
in this press release may not occur as presented or at all.
Media/Investor
Contact:
Gaming
and Leisure Properties, Inc.
Matthew
Demchyk, Chief Investment Officer
610-401-2900
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