GLPI Considering Shopping for Property on the Las Vegas Strip

Aerial view of Mandalay Bay, Excalibur, and Luxor on the Las Vegas Strip

Historically centered on regional casinos, GLPI is all for buying a property on the Las Vegas Strip. [Image:]

GLPI owns the Tropicana’s land

The CEO of Gaming and Leisure Properties Inc. (GLPI) stated that, opposite to well-liked perception, he’s all for buying extra property on the Las Vegas Strip, if the best alternative presents itself. In an earnings name on Friday, Peter Carlino admitted, in a little bit of a shocking mea culpa for somebody in his place, that his predictions for the Strip’s emergence from the worst of the pandemic had been flawed.

I used to be flawed, frankly”

“I’ve been chastened a bit of bit following this newest downturn and recognizing after COVID that the Strip proved to be much more resilient than I might have ever have guessed,” Carlino stated. “We knew what would occur within the regional markets with folks the primary minute they might exit of their door would head over to our properties and did so with nice enthusiasm. However Vegas, I used to be a bit of bit extra cautious about it and I used to be flawed, frankly.”

GLPI owns the land on which the Tropicana Lodge and On line casino sits, in addition to 57 gaming properties throughout 17 states. It bought the Trop to Bally’s Company in April 2021 for $150m after which agreed to lease the land to Bally’s for $10.5m per yr for 50 years. Penn Nationwide was the Tropicana’s operator; it bought its remaining curiosity within the property to GLPI as a part of the deal.

It’s simply enterprise

Within the earnings name, Carlino stated that his firm was by no means towards increasing on the Las Vegas Strip, it merely most popular “regional” casinos from a price standpoint.

“It’s solely about cash,” Carlino defined. “There’s nothing that we received’t personal, I’m going each instructions. We’d like to have Strip properties. I’ve usually stated to a lot of you that I’d personal a shack on the seaside with no home windows and doorways if the money stream was rock strong.”

Bally’s Company will seemingly rebrand the Tropicana as a Bally’s. The present Bally’s Las Vegas will change its identify to Horeseshoe Las Vegas in December. Bally’s Corp. chairman Soohyung Kim stated in January that it’s potential that his firm might resolve to raze the Trop and begin from scratch if it makes probably the most monetary sense.

Caesars is seeking to shed a Strip property. One which has particularly come up is the Flamingo, which the corporate reportedly desires to promote for no less than $1bn. It’s unknown if GLPI has any curiosity.

Las Vegas A’s?

The Tropicana has additionally been on the heart of negotiations for a potential transfer by MLB’s Oakland A’s to Las Vegas. Late final yr, CNBC reported that the workforce has focused the location of the Tropicana for its new stadium, ought to it transfer.

Within the earnings name, Carlino didn’t present any new info on potential negotiations. Whereas it isn’t a assure that the A’s will transfer, MLB commissioner Rob Manfred stated on Sunday that it’s in all probability going to occur. The workforce’s stadium is arguably the worst within the league, its lease runs out after the 2024 season, and it has not been capable of safe a take care of the town to construct a brand new one.

the mayor in Oakland has made an enormous effort to attempt to get it executed in Oakland”

Talking with Chris Russo on MLB Community Radio on SiriusXM Saturday, Manfred stated: “I feel the mayor in Oakland has made an enormous effort to attempt to get it executed in Oakland. It simply doesn’t appear to be it’s going to occur.”

“Given the dearth of tempo in Oakland, I feel [the A’s] must search for another,” Manfred added, acknowledging that the choice is probably going Las Vegas.