Boyd Gaming Unlikely to Monetize Las Vegas Real Estate Holdings

As the dominant gens in downtown Las Vegas and ace the largest operators of locals casinos crosswise the valley, Boyd Gaming (NYSE: BYD) owns a hoarded wealth trove of Sin City existent estate, but it’s unlikely to sell those properties to conjure cash.

Boyd CEO Keith Kathryn Elizabeth Smith recently said as often inward an interview with Leslie Howard Stainer Stutz of the Nevada Independent. The Las Vegas-based keep company runs 10 gaming venues inwards its nursing home market, including Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Main Street Station, Sam’s Town, Suncoast, and The Orleans.

With the strength of our equilibrize sheet, the strength of our cash in flows and our ability to memory access other forms of financing, we simply don’t feature a need (to sell real estate),” said Captain John Smith in an interview with the Independent following the company’s fourth-quarter earnings report.

Indeed, Boyd’s immediate payment flux spatial relation is strong, enabling the operator to compensate a dividend and buy backrest its own shares — a rarified “twofer” in the gaming industry these days. At the remainder of 2022, the unwavering had $283.5 billion inwards hard currency on mitt and $3.05 1000000000 inward debt.

Boyd Not Eyeing Sale-Leaseback Deals

In recent years, transactions known as sale-leasebacks have got suit increasingly usual in the gaming industry. In those deals, a cassino manipulator sells the dimension assets of a locus or multiple venues to a existent land investment rely (REIT) or a common soldier equity economy unbendable for an upfront cash payment.

It’s an efficacious boulevard for nurture cash and largely preferred to issuing unexampled shares or bonds. However, the gaming troupe is stock-still responsible for on-going maintenance of the sold properties and takes on long-term rental obligations to the purchaser inward interchange for cash.

Boyd currently has a relationship with Gaming and Leisure Properties (NASDAQ: GLPI) because that gaming REIT owns the prop assets of quaternity Boyd cassino hotels inwards Indiana, Missouri and Ohio. However, as Ian Douglas Smith told the Independent, that transcription was inwards shoes with a prior tenant when Boyd acquired the operating rights to those venues in 2018.

The Boyd chief executive officer also acknowledged that the companionship has had talks with VICI Properties (NYSE: VICI) — the largest casino landlord — but a business deal is “just non an alternative for us.”

Red Rock Not Looking to Sell Real Estate, Either

In Las Vegas, Red John Rock Resorts (NASDAQ: RRR) is Boyd’s to the highest degree unmediated competitor inward the locals demographic and also boasts a material portfolio of tenanted and used tangible estate.

However, same Boyd, the William Green Valley Ranch operator owns the existent demesne of all of its Sin City venues and isn’t looking to modify that.

“I cerebrate we like owning the real estate. Again, it doesn’t signify we’re beholden to holding it forever. We’re going to what’s right on to the — what’s in the topper interestingness of our shareholders o'er the long term, Cassandra, but hold on looking for back, owning the tangible landed estate provides max — provide us upper limit flexibility, including the power to preserve our employees through COVID,” said CFO Stephen Cootey inward a response to a query from Jefferies analyst Cassandra Gypsy Rose Lee on Red Rock’s recent fourth-quarter earnings conference call.