are already expressing doubt<\/a> that LVS will be able to execute a sale of the aforementioned assets at $6 billion, because that price point limits the number of credible buyers. By market capitalization, MGP is the largest gaming REIT at $12.49 billion. But its Strip penetration is already substantial, as it owns all the MGM-operated properties there, aside from Bellagio.<\/p>\n<\/div>\nGLP, the smallest of the trio of casino landlords, doesn’t appear interested in increasing its Las Vegas footprint.<\/p>\n
\u201cI think most of you know that we’ve made the case for years, that the real safety and stability is out in the hinterlands, not on the Strip. Love those assets. Terrific. But they’re much too volatile for our case,\u201d <\/strong>said Chairman and CEO Peter Carlino on a Tuesday conference call with analysts and investors.<\/p>\nThat leaves VICI, which is well-capitalized, but likely to add a Las Vegas venue or two via a transaction with former parent Caesars Entertainment.<\/p>\n
Case for Full Divestment Is Strong<\/h2>\n
A sale-leaseback with a landlord would enable LVS to maintain a presence in the largest domestic gaming center. But math indicates it’s not necessary for the company to do that.<\/p>\n
As Bernstein notes, the operator generated $5.387 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) last year, of which just $487 was derived from the Strip<\/strong>.<\/p>\nOther analysts believe full divestment of its Las Vegas assets would allow LVS to pursue opportunities in higher return markets, likely in the Asia-Pacific area, and perhaps restore its previously suspended cash dividend.<\/p>\n","protected":false},"excerpt":{"rendered":"
One brokerage firm is speculating that Las Vegas Sands (NYSE:LVS) could ultimately partner with a gaming real estate investment trust (REIT) in disposing of its Nevada assets. That means the operator wouldn’t end up leaving its home city. Earlier this week, the Venetian operator confirmed it’s in early-stage talks to potentially sell that integrated resort, […]<\/p>\n","protected":false},"author":46,"featured_media":153654,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,1],"tags":[],"acf":[],"yoast_head":"\n
LVS Could Work with Gaming REIT on Vegas Asset Sale, Says Bernstein<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n