Gaming and Leisure Properties to Acquire Two Regional Gaming Properties for $484 Million and Simultaneously Enter Into a New Master Lease Agreement With Twin River Worldwide Holdings
Acquisition Expected to be Immediately Accretive at Closing and Further Diversifies Tenant Roster
Acquiring Desirable Regional Gaming Assets at an 8.3% Capitalization Rate
WYOMISSING, Pa., Oct. 27, 2020 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) (“GLPI” or the “Company”) announced today that it entered into definitive agreements to acquire the real property assets of Dover Downs Hotel and Casino from Twin River Worldwide Holdings, Inc. (“Twin River”) (NYSE: TRWH) and to re-acquire the real property assets of Tropicana Evansville from Caesars Entertainment, Inc. (“Caesars”) (NASDAQ: CZR), after the substitution right related to the property was triggered. Pursuant to the Tropicana Evansville agreement, GLPI will acquire the real property assets for approximately $340.0 million, and Twin River will acquire the operating assets of the property for approximately $140.0 million. GLPI will separately engage in a sale-leaseback transaction directly with Twin River for Dover Downs, and will acquire the real property for $144.0 million. The two properties have an aggregate real estate purchase price of approximately $484 million.
Simultaneous with the closing of these transactions, GLPI will enter into a new triple-net master lease with Twin River for both assets with an initial term of 15 years, with four 5-year tenant renewal options. The initial annual cash rent will be $40.0 million, representing an implied capitalization rate of 8.3%. The trailing rent coverage ratio in the first year after closing is expected to approximate 2.1x and the master lease obligations will be subject to a corporate guarantee from Twin River.
Peter Carlino, Chairman and CEO of GLPI, commented, “We are excited to establish a formal relationship with Twin River as they represent another leading operator to add to GLPI’s growing platform. Our new master lease with Twin River will have strong rent coverage at an accretive cap rate and is the result of our team’s hard work to structure and complete a complex transaction that benefits both parties. These transactions further diversify our portfolio with the addition of a new operator and expands our footprint into Delaware.”