New Tropicana owner says ‘stand by’ for next move

The highest executive of the categorical property investment belief that holds the land the set the Tropicana sits isn’t asserting what construction plans will be ahead for the positioning of the 64-365 days-historical, 1,470-room resort on one amongst the metropolis’s busiest corners.

Peter Carlino, CEO of Pennsylvania-basically based totally Gaming and Leisure Properties Inc., told analysts on an earnings conference call Friday that his group is working with executives of Bally’s Corp., which is shopping the Tropicana for $308 million in a deal announced in April, on lengthy-period of time plans for the resort on 35 acres at Tropicana Avenue and the Strip.

Bally’s Corp. has affiliations with Major League Baseball, together with broadcast rights for quite a bit of teams, together with the Oakland A’s through its partnership with the Sinclair Broadcasting Crew. The A’s were scouting Las Vegas as a ability relocation lumber dwelling.

Penn National Gaming Inc., of Wyomissing, Pennsylvania, which is affiliated with Gaming and Leisure Properties, is the Tropicana seller and furthermore owns and operates the M Resort in Henderson.

The transaction is predicted to cease in early 2022.

Providence, Rhode Island-basically based totally Bally’s Corp. is no longer affiliated with the Bally’s resort on the Strip.

Cryptic hints

Responding to an analyst’s seek data from, Carlino hinted that extra news would design out concerning the Tropicana — however no longer now.

“There might be doable for additional sources on the positioning,” Carlino said. “I don’t assume we or even Bally’s knows what ‘extra’ is ravishing now. Frankly, we’re working cooperatively with them to perceive how we can maximize whatever occurs there. We’re serious referring to the maximization of each and each lumber of that property. That’s as significant as I can mumble for the moment.”

But that in reality wasn’t the remainder thing he’d mumble about it.

“I wouldn’t discover that the deal we absorb announced is all that you’re going to perceive popping out of it. Time will pronounce. We’re very anxious to invent our relationship with Bally’s. They’ve been terrific to work with to this point, however I don’t assume they’ve refined what they wish to develop, however we’re helping in that route of to resolve out how we can score the perfect use of that field,” Carlino said. “I receive (we’ve) historical the period of time ‘Conclude tuned,’ (earlier in the call) and I’d mumble preserve tuned on that one as successfully.”

The Tropicana field has been a minute-mentioned ability field for a Major League Baseball stadium for the Oakland A’s if the group were to relocate to Las Vegas.

Soo Kim, a hedge fund investor who is chairman of Bally’s board of directors, said in Would possibly perhaps perhaps perhaps that he hadn’t heard from Oakland A’s President Dave Kaval, however that he’d be totally happy to chat with him if he came calling. Kaval has no longer namely mentioned the Tropicana in interviews with the Review-Journal.

“We’re very inventive and there are 35 acres (on the Tropicana),” Kim said in Would possibly perhaps perhaps perhaps. “I in reality don’t perceive what number of acres it takes to host a baseball stadium so it’s exhausting for me to touch upon this. But Vegas is a a must-absorb market on a call of fronts. It’s furthermore rapid-increasing and dynamic which is what sports teams worship.”

Sharp outcomes

Gaming and Leisure Properties reported file leads to the 2d quarter, which ended June 30.

The company reported web earnings of $138.2 million, 59 cents a half, on earnings of $317.8 million. Within the identical quarter a 365 days earlier, GLPI posted web earnings of $112.3 million, 52 cents a half, on earnings of $262 million.

In Would possibly perhaps perhaps perhaps, GLPI’s board of directors agreed to pay a 67-cents-per-half dividend to shareholders of file June 11. The dividend modified into once paid June 25.

Gaming analyst Joe Greff of New York-basically based totally J.P. Morgan praised GLPI’s industry model in a Friday tell to merchants.

“We continue to worship the soundness of GLPI’s triple web lease (staunch property investment belief) industry model and its stunning, protected, and likely increasing dividend,” Greff said in the tell.

“This might perhaps well absorb to develop for an unheard of possibility-reward in a possibility-off market for our coverage universe, which we tell has sold off on three investor concerns referring to to sustainability of solid top-line trends and elevated margins relative to pre-pandemic stages, spikes in Delta variant infection rates and most modern veil mandates, and a normal possibility-off market in particular with regards to “re-opening” sectors similar to gaming.”

GLPI shares were in a solid climb in after-hours trading Friday. After closing down 14 cents, 0.3 p.c, to $47.34 a half in above-average quantity, the stock, traded on the Nasdaq alternate, rebounded to $47.91 a half, a 57-cent, 1.2 p.c comeback.

Contact Richard N. Velotta at [email protected] or 702-477-3893. Practice @RickVelotta on Twitter.