REIT Gaming And Leisure Completes Acquisition Of Bally’s Properties

    REIT Gaming And Leisure Completes Acquisition Of Ballys Properties
    Article by : Erik Gibbs Dec 18, 2024

    Gaming and Leisure Properties Inc. (GLPI) has officially completed its $395 million acquisition of the land and real estate assets for Bally’s Kansas City Casino in Missouri and Bally’s Shreveport Casino & Hotel in Louisiana. The deal was initially announced earlier this year and is structured as a sale-leaseback agreement. 

    Both properties have been added to a new master lease agreement with Bally’s, which is linked to their existing lease. The transaction includes an initial annual cash rent of $32.2 million, representing an 8.2% cash capitalization rate.

    The rent coverage for the Kansas City and Shreveport properties is projected to reach 2.2 times in the first year of ownership, indicating strong financial backing for the deal. GLPI Chairman and CEO Peter Carlino stated that the acquisition aligns with the company’s growth strategy, enhancing its portfolio of regional gaming properties. 

    “This transaction was executed at an attractive cap rate and expands our partnership with Bally’s, while strengthening our portfolio which has now grown to include 67 high-quality regional gaming assets,” Carlino said in a statement.

    Bally’s Kansas City Casino, situated along the Missouri River, has undergone a significant $70 million renovation and expansion. The updated property now features a 42,000-square-foot casino floor, boasting over 900 slot machines, 24 table games, and more than 50 video poker and keno terminals. 

    Guests can also enjoy three dining options, including the popular sports bar Chickie’s & Pete’s, as well as event spaces totaling nearly 3,000 square feet and several entertainment lounges.

    In Louisiana, Bally’s Shreveport Casino & Hotel offers a 30,000-square-foot casino that includes over 950 slot machines, more than 50 table games, and a dedicated poker room. The facility also houses the Bally Bet Sportsbook, providing guests with a comprehensive gaming experience.

    Additional amenities include a 400-room hotel with a full-service spa, three on-site restaurants such as a steakhouse and noodle bar, live entertainment venues, and two nightclubs.

    The acquisition underscores GLPI’s commitment to expanding its portfolio of regional gaming properties while strengthening its partnership with Bally’s Corporation. The deal’s financial structure and the properties’ quality are expected to impact GLPI’s overall performance positively. By securing long-term lease agreements, the company continues to solidify its position as a leading real estate investment trust in the gaming industry.

    With these additions, GLPI now manages 67 properties, further cementing its presence in the North American gaming market. The enhanced facilities in Kansas City and Shreveport are poised to attract guests seeking comprehensive entertainment experiences, bolstering both properties’ competitive edge.