WYOMISSING, Pa. - Gaming and Leisure (NASDAQ:GLPI) Properties, Inc. (NASDAQ: GLPI), a real estate investment trust (REIT) specializing in casino properties, has announced the acquisition of the real estate assets of Tioga Downs Casino Resort in Nichols, New York. The deal, valued at $175 million, was completed with American Racing & Entertainment, LLC.
The acquisition includes a triple-net master lease agreement with American Racing for an initial term of 30 years. The agreed initial annual rent is set at $14.5 million, reflecting an 8.3% capitalization rate, with annual rent expected to exceed a coverage ratio of 2.3 times. The lease agreement also stipulates a fixed annual rent escalation of 1.75% starting from the first anniversary and 2.0% beginning in the fifteenth year.
Tioga Downs Casino Resort encompasses approximately 162 acres and features a gaming floor, sportsbook, hotel, harness horse track, food and beverage outlets, and a championship golf course. The property has undergone significant expansion since 2016, following the award of a Class III casino license by the State of New York.
Chairman and CEO of GLPI, Peter Carlino, expressed enthusiasm for the new partnership with American Racing, highlighting the addition of Tioga Downs to their portfolio, which now includes 62 properties across 19 states. Jeff Gural, Founder and CEO of American Racing, also welcomed the partnership, noting Tioga Downs' strong market position with no competition within 85 miles.
The transaction was funded through cash on hand and the issuance of $20.0 million in OP units. GLPI's recent share issuance through its ATM program, which raised net proceeds of $188.9 million, partly funded this acquisition.
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