Gaming and Leisure Properties Inc., the Wyomissing-based real estate investment trust spun off from Penn National Gaming, said it is acquiring the real estate assets of Pinnacle Entertainment Inc. of Las Vegas in an all-stock transaction.
“Pinnacle’s real estate portfolio brings great properties to GLPI and adds one of the leading gaming operators as a new tenant,” said Peter Carlino, chairman and CEO of GLPI. “Pinnacle’s proven track record of continued improving operating performance will make GLPI even stronger as we pursue long-term growth.”
Pinnacle will continue to operate the gaming facilities, which it will lease from Gaming and Leisure under a 10-year contract, similar to the deal Gaming and Leisure has with Penn National for the casinos it operates. The casinos are in seven states including Nevada, Missouri and Louisiana.
The addition of Pinnacle’s 14 properties in seven states to GLPI’s existing portfolio of 21 properties in 12 states will give the combined company 35 casino and hotels in 14 states. The combined REIT will lease 18 of its facilities to Penn National Gaming, 14 to Pinnacle and one to Casino Queen in East St. Louis, Ill. GLPI Holdings Inc., a subsidiary of GLPI, will continue to own and operate two gaming facilities in Baton Rouge, La., and Perryville, Md.
Pending customary regulatory approval, the transaction is expected to be completed in the first quarter of 2016.