Vici Properties, the real estate investment trust which owns multiple casino properties in North America, has announced that its footprint in Canada will expand significantly through the acquisition of four properties in Alberta from Century Casinos.
The real estate investment trust will spend 221.7 million Canadian dollars in a sale-leaseback transaction to acquire Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino and Century Downs from Century Casinos.
The four casinos will be added to the existing master lease agreement between Vici Properties and Century Casinos. Once the deal is closed, the casino operator will have to pay a total of 17.3 million dollars in rent every year to the real estate investment trust.
Speaking about the transaction, Erwin Haitzmann and Peter Hoetzinger, co-Chief Executive Officers of Century Casinos, said that it allows the casino operator to have “greater financial flexibility” as it seeks to grow its business.
The funds from the sale will mainly be used by Century Casinos to make improvements at Nugget Casino Resort in Nevada. The company also plans to pay some of its debt from the money received from the sale, while also giving something back to shareholders through stock repurchases or a special dividend.
The casino operator recorded revenue of 430.5 million dollars in 2022, 10.8 percent higher than the previous year, but the profit declined by 37.6 percent to 13.6 million dollars.
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