US real estate company, Gaming and Leisure Properties, revealed a 63 per cent increase in its Q1 profits year on year in its Q1 results, going from US$148.8 in 2016 to US$242.7 this year.
CEO, Peter Carlino, said: “Our first quarter results exceeded expectations largely as the result of out-performance at our managed property, Hollywood Casino Baton Rouge, which grew net revenue by nine per cent over the previous year, and at the Penn operated Hollywood Casino Toledo and Hollywood Casino Columbus properties.
“These property level results are indicative of the healthy regional gaming markets in which the company and our tenants operate. We expect to continue to generate secure and predictable cash flow for our investors, while we pursue strategic acquisitions that achieve our goals of stability, diversification and accretion.” During the first quarter, the company reached an agreement to acquire the real estate assets of Bally’s Casino Tunica and Resorts Casino in Tunica, Mississippi, for US$82.6m, which it expects to be completed on May 1, 2017.
“We are excited to partner with Penn National Gaming on this transaction as these assets will be added to the existing Penn master lease and will produce $9m of incremental annual rent. We appreciate the expedient review completed by the Mississippi Gaming Commission, which approved the transaction on April 20, 2017.
“This acquisition demonstrates our steadfast focus on accretive growth for our shareholders. Since the beginning of 2016, we have acquired the real estate assets of 17 casinos across eight states, which generate annual cash rental income of $411.4m,” he added.
