Gaming and Leisure Properties Inc. (GLPI) has acquired the real estate assets of Tioga Downs Casino in Nichols, N.Y. from American Racing & Entertainment LLC for $175.0 million.
Simultaneous with the acquisition, the Wyomissing-based Gaming and Leisure Properties 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, with a fixed 1.75% annual escalation beginning with the first anniversary; and a fixed annual escalation of 2.0% beginning in year 15 of the lease — continuing through the balance of its term, according to a press release.
“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,” Peter Carlino, Gaming and Leisure Properties’ chairman and CEO, said in a statement. “American Racing has 20 years of gaming, horse racing, and hotel experience, marking another addition to our portfolio of leading gaming operator tenants.”
Carlino added that Gaming and Leisure’s initiatives to further expand its portfolio “remain active in the current environment as our reputation as the gaming landlord of choice is strengthened.”
Tioga Downs Casino Resort is a roughly 162-acre property that features a 32,600-square-foot gaming floor with 895 slots and 29 table games, a 2,500-square-foot 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.
According to Jeff Gural, founder and CEO of American Racing, Tioga Downs has a loyal following and no competition within 85 miles.
“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,” Gural said in a statement.
The transaction was funded with cash on hand and the issuance of $20.0 million in operating partnership — or OP — units. Since the end of the third quarter 2023, Gaming and Leisure Properties has issued 4.06 million shares through its ATM (At-The-Market) program which raised net proceeds of $188.9 million. Those proceeds are to be used in part toward the funding of this transaction, as well as the company’s overall potential acquisition pipeline, the release said.
Source: Berkshire mont