Waiting for “breadcrumbs to fall off the truck.” That’s Gaming & Leisure Properties‘ self-described business plan. GLPI execs, including CEO Peter Carlino (left), were in Las Vegas for Global Gaming Expo and took the opportunity to chat with J.P. Morgan analyst Joseph Greff. Salient takeaways from the meeting included:
- Given the opportunity to buy, GLPI would prefer the Tropicana to The Rio, viewing the Trop as “a superior asset.” (After all, you can’t move The Rio to the Strip—and the Trop is far more up to date in terms of maintenance.) GLPI doesn’t think the Trop is “a natural fit” for Penn National Gaming but sees the recent sale of The Rio as a real estate play.
- As for The Cosmopolitan of Las Vegas, “GLPI believes the property is already run extremely well and that the only real opportunity left is likely on the gaming side, so it would be surprised if a buyer without a significant gaming footprint were to emerge.”
- Potential GLPI acquisitions would be properties divested by larger companies in the merger-and-acquisition phase. Price is not the key issue, “noting that sellers often need a reason to transact, with each deal/asset having a unique catalyst.”
- “GLPI places a strong emphasis on the quality of the operator for its assets, and believes having several of the top regional gaming operators should be viewed positively by investors.”
- GLPI’s much hyped diversification out of gaming has not happened because the REIT “has yet to find anything that rivals the value proposition of its existing gaming portfolio.” On the plus side, its philosophy is a sensible one that “values safety, accretion, and earnings stability, and is happy to ‘hit singles’ and still grow.”
* According to the American Gaming Association, 49% of Americans have a favorable view of gaming. While we’d like that 
number to be higher the AGA says it’s four points up from last year, significant growth by any yardstick. Visitation by Americans is 44%, a nine-point vault from 2018. And while 41% of Yankees said they would visit a casino to gamble last year, this year the number is up to 49%.“The favorability of our industry has never been higher,” said AGA President Bill Miller, who unfortunately did not speculate on the economic exuberance shown in the poll.
However, personal feelings on gambling pale in comparison to the industry’s positive image. While 57% think casinos are a positive economic force, 71% see them as job creators. Keep up the good work, guys.
* Las Vegas Sands could lose an anchor tenant at Venelazzo. Talks between Authentic Brands and Barneys, if carried to fruition, 
would see most existing and planned Barneys stores closed, to be reopened within extant Saks Fifth Avenue stores. There’s a glimmer of hope: A planned Barneys in Greenwich, Connecticut, would proceed, so maybe the Las Vegas Strip wouldn’t be evacuated. Authentic Brands isn’t the only bidder for Barneys, which is in Chapter 11, so we’re not talking about a done deal. However, Barneys already plans to close 15 of 22 stores. Authentic Brands is looking to ‘green’ the Barneys demographic, so maybe Millennial-popular Las Vegas would work out after all.
* Sin City entrepreneur Bri Steck is pioneering a “unique concierge service” for women vacationing on the Strip. “Vegas Girls Night Out” aims to provide fine dining, limo service and nightclub fun at an affordable price. TAO, Marquee, On the Record, Light, Drai’s, XS, Juniper and Encore Beach Club are listed as participants. What’s the hook? Steck culls her clients from fans of the Bravo series Vanderpump Rules. Soon to come is a “Brides Party Free” evening that culminates in—what else?—Thunder From Down Under.
* Could a tribal casino be built in your back yard? Check out the maps provided by Native-Land.ca and discover what tribe’s formerly sovereign land you’re living upon.
