WYOMISSING, PA — Gaming and Leisure Properties, Inc. (GLPI) has announced the acquisition of the real estate assets of Tioga Downs Casino Resort from American Racing & Entertainment, LLC. The deal, worth $175.0 million, sees the Pennsylvania-based gaming company expanding its portfolio and diversifying its tenant roster.
Tioga Downs, located in Nichols, NY, is a sprawling 162-acre property that boasts a 32,600 sq. ft. gaming floor with 895 slots and 29 table games, a FanDuel sports book, a 160-room hotel, a harness horse track, seven food and beverage locations, and a championship golf course. The resort underwent a $130 million expansion beginning in 2016 after it was awarded a Class III casino license by the State of New York.
Simultaneously with the acquisition, GLPI and American Racing have 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, reflecting an 8.3% capitalization rate. The rent associated with the lease will see a fixed 1.75% annual escalation beginning on the first anniversary and a fixed annual escalation of 2.0% starting in the fifteenth year of the lease.
Peter Carlino, GLPI’s Chairman and CEO, expressed his satisfaction with the acquisition. “Tioga Downs further diversifies our portfolio, expanding it to 62 properties across 19 states with 8 tenants,” he said. He also welcomed the new relationship with American Racing, praising their 20 years of experience in gaming, horse racing, and hotel management.
Jeff Gural, Founder and CEO of American Racing, echoed these sentiments, expressing excitement about the partnership with GLPI and confidence in the future growth of Tioga Downs.
The transaction was funded with cash on hand and the issuance of $20.0 million in Operating Partnership (OP) units. GLPI has also issued 4.06 million shares through its ATM program, raising net proceeds of $188.9 million, partly funding this transaction and potential future acquisitions.
With this acquisition, GLPI strengthens its position as a leading player in the gaming industry, demonstrating its commitment to portfolio expansion and diversification.
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