Gaming & Leisure Properties agrees to new master lease with PENN Entertainment

10 October 2022

(PRESS RELEASE) -- Gaming & Leisure Properties, Inc. announced today that it agreed to create a new master lease with PENN Entertainment, Inc. for seven of PENN’s current properties. The companies have also agreed to a funding mechanism to support PENN’s pursuit of relocation and development opportunities at several of the properties included in the new master lease. The transaction, including the creation of the new master lease, is subject to customary regulatory approvals and is expected to be effective January 1, 2023.

Pursuant to the terms agreed upon by the parties, the current PENN master lease will be amended to remove PENN’s properties: Hollywood Casino - Aurora and Hollywood Casino - Joliet in Illinois; Hollywood Casino - Columbus and Hollywood Casino - Toledo in Ohio; and Henderson, M Resort in Nevada and those properties will be added to the new master lease. In addition, the existing leases for the Hollywood Casino at The Meadows in Pennsylvania and Hollywood Casino Perryville in Maryland will terminate and these properties will be transferred into the new master lease. GLPI has agreed to fund up to $225 million for the relocation of PENN’s riverboat casino in Aurora at a 7.75% cap rate and to fund up to $350 million for the relocation of the Hollywood Casino Joliet as well as the construction of hotels at Hollywood Casino Columbus and a second hotel tower at M Resort Spa Casino at then current market rates.

The new master lease and GLPI’s funding commitment will allow PENN to pursue several growth projects including the planned projects in Aurora and Joliet, Illinois; Columbus, Ohio; and Henderson, Nevada.

“Our ongoing support of our roster of leading regional gaming operator tenants through innovative transaction structures has proven to be mutually beneficial and we are confident that this new master lease with PENN Entertainment will extend our record of success on this front,” said Peter Carlino, Chief Executive Officer of Gaming & Leisure Properties.

“Throughout its 28 years as a public company, PENN Entertainment has emerged as the industry’s pre-eminent developer of regional gaming assets. GLPI is excited to structure a new master lease with our long-term tenant that includes a funding option to allow PENN to extend its legacy of growth through development by pursuing attractive opportunities in Illinois, Ohio and Nevada. We support the relocation of PENN’s riverboat casinos to land-based operations as we believe this provides a superior guest experience, particularly as the proposed Aurora and Joliet properties are sited to benefit from existing and long-term traffic-driving developments. Further, we believe the creation of a new hotel at Hollywood Casino Columbus will significantly improve the performance of that property and ultimately enable PENN to transform it into a regional destination. Finally, as with every transaction we pursue at GLPI, this new master lease structure comes with attractive rent and financing terms for both parties under a proven master lease structure that offers GLPI material downside protection while offering us an opportunity to benefit from PENN’s long-term growth.”

The terms of the new master lease and the amended PENN master lease are expected to be substantially similar to the current PENN master lease with the following key differences:
The new master lease will be cross-defaulted, cross-collateralized and co-terminus with the existing PENN master lease

  • The initial term of the new master lease will expire on 10/31/2033, with three 5-year extensions at PENN’s option (consistent with the term remaining on the current Penn master lease)

  • All rent in the new master lease will be fixed with annual escalation of 1.50%, with the first escalation occurring for the lease year beginning on November 1, 2023

  • The rent for the new lease will be $232.2 million in base rent. The rent for the original PENN master lease will be $284.1 million, consisting of $208.2 million of Building Base Rent, $43.0 million of land base rent, and $32.9 million of percentage rent

Related Links
Hollywood Casino - Joliet Details
Hollywood Casino - Aurora Details
Penn Entertainment
Hollywood Casino at the Meadows Details
M Resort Spa Casino Details
Hollywood Casino - Perryville Details
Hollywood Casino - Toledo Details
Hollywood Casino - Columbus Details

Featured Vendors
GamblersPick
AmericanChecked
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Top One Tech Limited
Dable Advisory & Consulting Services
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
Goldfinger Monitors
Regulatory Management Counselors, PC
Goldfinger Monitors
Innovative touch-screen solutions - vibrant lighting, high-def imagery, bright, bold colors
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Indian Gaming Tradeshow & Convention
Slot Machines Unlimited
Indian Gaming Tradeshow & Convention
The largest gathering of tribal leaders and casino executives in the United States
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
TribalHub
Casino Trac - Table Trac, Inc.
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas
Casino Trac - Table Trac, Inc.
CasinoTrac™ is a full CMS platform, operating in 225 locations, across 13 countries, since 1995.
Casino City Press
House Tech Ads
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
OCR - Online Casino Reports
Casino Schedule Ease
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Kallop
Oklahoma Indian Gaming Association (OIGA) Conference
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Betson Imperial Parts & Service
Sunkist Graphics, Inc.
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
Casino Network
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands


Your Guide to 14,894 Gaming Industry Suppliers