Gaming and Leisure Properties, a leading real estate investment trust focused on the acquisition, financing, and ownership of gaming properties, has announced a significant funding agreement with its tenant, The Queen Casino and Entertainment. GLPI has committed to provide up to approximately $111 million to fund the landside move and hotel renovation of the Belle of Baton Rouge casino in Baton Rouge, Louisiana.
The Belle of Baton Rouge, affectionately known as "The Belle," is set to undergo a major transformation as part of this project. The total cost of the landside move and renovation is expected to exceed $141 million, with completion targeted for September 2025. During the construction period, the casino will continue to operate, with the exception of a brief period when gaming equipment is being relocated to the new facility.
Under the terms of the agreement, GLPI will own the new facility, and Queen Casino & Entertainment will pay an incremental rental yield of 9% on the development funding. This rental yield will commence one year from the initial disbursement of funds, which took place on May 30, 2024. The Belle is part of the Queen Casino & Entertainment Inc. master lease, which also includes Draft Kings at Casino Queen in East St. Louis, Illinois, Casino Queen Marquette in Marquette, Iowa, and The Queen Baton Rouge in Baton Rouge, Louisiana.
Peter Carlino, Chairman and CEO of GLPI, expressed enthusiasm for the project, stating, "Building on the success of our landside move funding at The Queen Baton Rouge, we have agreed to provide funding for the hard costs related to Queen Casino & Entertainment Inc.'s landside move at The Belle. Queen Casino & Entertainment has proven its ability to leverage a fresh, new product to grow the overall gaming market and we expect this project to follow a similar path. We remain active in our efforts to expand our portfolio in the current environment and believe that transactions such as this further our reputation as the gaming landlord of choice."
Terry Downey, CEO of Queen Casino & Entertainment, echoed Carlino's sentiment, highlighting the success of their previous collaboration on The Queen Baton Rouge project. Downey noted that GLPI's expertise and project management throughout the entire process enabled Queen Casino & Entertainment Inc. to exceed their financial, operational, and customer-focused goals at The Queen. With the attention now turning to The Belle, Downey expressed confidence in realizing similar operational upside from this latest landside move.
The proven success at The Queen and the synergies made possible by Queen Casino & Entertainment Inc.'s operating model between The Queen and The Belle set the stage for a promising future. Downey emphasized the importance of GLPI's continued partnership in the growth of their business and the excitement surrounding the opportunity to provide players with another fully refreshed casino destination.
GLPI, as a leading gaming REIT, is actively engaged in the acquisition, financing, and ownership of real estate properties leased to gaming operators under triple-net lease arrangements. Under these arrangements, the tenant is responsible for all facility maintenance, insurance, taxes, utilities, and other services necessary for the leased properties and the business conducted on those properties.
Queen Casino & Entertainment, a thriving regional gaming company owned by Standard General, has a growing presence in the gaming industry. The company's portfolio includes DraftKings at Casino Queen in East St. Louis, Illinois, Casino Queen Marquette in Marquette, Iowa, and The Queen Baton Rouge and Belle of Baton Rouge in Baton Rouge, Louisiana.
NASDAQ: GLPI
Current Price: $48.75
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