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WYOMISSING, Pa. - Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) announced Wednesday it will acquire the real estate assets of Sunland Park Racetrack & Casino for $183.75 million at an initial 8.2% cap rate.
The transaction, expected to close on October 15, 2025, will add a fourth property to Strategic Gaming Management’s existing triple-net master lease agreement with GLPI. Annual rent on the lease will escalate at 2.0% per year, and the company expects the acquisition to be immediately accretive to AFFO per share. The company has demonstrated solid financial performance, with revenue growing at 5.38% over the last twelve months.
Sunland Park, located in southern New Mexico along the Texas border, will become GLPI’s second property in New Mexico. The facility serves the El Paso-Las Cruces gaming market and operates in what the company describes as a stable regulatory environment.
The property sits on approximately 157 acres and features 738 slots and 12 electronic gaming tables across a 25,000 square foot gaming floor. Additional amenities include a one-mile thoroughbred and quarter horse racetrack with a 733-seat stadium, a 600-person ballroom, simulcast wagering area, and a 78-room third-party hotel.
"Through our acquisition of Sunland Park, we are again diversifying our property portfolio, while again supporting the growth strategy of an existing tenant," said Peter Carlino, GLPI’s Chairman and CEO, in the press release statement.
Truist Securities, Inc. served as financial advisor to Gaming and Leisure Properties, while CBRE Investment Banking and Macquarie advised Sunland Park on the transaction.
Gaming and Leisure Properties specializes in acquiring, financing, and owning real estate leased to gaming operators in triple-net lease arrangements. The company maintains a strong financial position with a current ratio of 3.02, and InvestingPro rates its overall financial health as "GREAT". Discover more insights and access the comprehensive Pro Research Report, along with additional ProTips and metrics, available exclusively on InvestingPro.
In other recent news, Gaming and Leisure Properties reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $0.79, compared to the forecasted $0.75. However, the company fell short on revenue, posting $394.9 million against an anticipated $396.97 million. Additionally, Gaming and Leisure Properties announced a $1.3 billion public offering of senior notes through its operating partnership, GLP Capital, L.P., and subsidiary GLP Financing II, Inc. This offering includes senior notes due in 2033 and 2037, with respective coupons of 5.250% and 5.750%.
Cantor Fitzgerald initiated coverage on Gaming and Leisure Properties with a Neutral rating and a $51.00 price target. Meanwhile, JMP Securities reiterated its Market Outperform rating with a $55.00 price target, emphasizing the company’s large forward commitment pipeline and prudent balance sheet management. JMP also noted a recently announced credit facility amendment by Bally’s, which could lead to a sale-leaseback transaction with Gaming and Leisure Properties. This transaction is expected to provide capital for Bally’s growth projects while allowing Gaming and Leisure Properties to add a quality asset.
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