{"id":287166,"date":"2023-08-28T14:23:04","date_gmt":"2023-08-28T19:23:04","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=287166"},"modified":"2023-08-29T11:45:02","modified_gmt":"2023-08-29T16:45:02","slug":"bellagio-sale-could-benefit-caesars-vici-properties-says-analyst","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/","title":{"rendered":"Bellagio Stake Sale Could Bode Well for Caesars, VICI, Says Analyst"},"content":{"rendered":"

Blackstone\u2019s (NYSE: BX) Blackstone Real Estate Income Trust (BREIT) recently announced the sale of a 21.9% interest in the property assets of Bellagio on the Las Vegas Strip to Realty Income (NYSE: O) for approximately $950 million.<\/p>\n

\"MGM
Bellagio on the Las Vegas Strip. An analyst says the recent sale of a portion of the venue’s real estate could benefit other Las Vegas operators. (Image: BuzzFeed News<\/em>)<\/figcaption><\/figure>\n

That price point implies the casino resort is worth $5.1 billion, or about 20% more than the $4.25 billion BREIT paid for 95% of the real estate of Bellagio in 2019<\/a>. That rapid increase in value has positive implications for other Strip entities, including Caesars Entertainment (NASDAQ: CZR), Bellagio operator MGM Resorts International (NYSE: MGM), and VICI Properties, according to Jefferies analyst David Katz.<\/p>\n

The valuation on the property is reset to $5.1 billion from $4.25 billion when the original sale to Blackstone was executed in November 2019, which is supportive for Caesars, MGM, and VICI,\u201d<\/strong> wrote the analyst in a new report to clients.<\/p><\/blockquote>\n

The purchase of the Bellagio stake<\/a> is the second move into gaming property by Realty Income. In February 2022, the REIT announced the $1.7 billion purchase<\/a> of the real estate of Wynn Resorts\u2019 (NASDAQ: WYNN) Encore Boston Harbor.<\/p>\n

How Bellagio Sale Could Benefit Caesars, VICI<\/h2>\n

A 20% increase in Bellagio\u2019s value in about four years could benefit Caesars and VICI, the largest gaming real estate investment trust (REIT).<\/p>\n

\n

VICI is the largest owner of Las Vegas Strip gaming real estate. The REIT owns the bulk of MGM-operated Sin City venues, Caesars Palace, and the Venetian. The Bellagio transaction could imply that the value of VICI\u2019s Las Vegas real estate<\/a> is higher today than when the company acquired it. Katz also sees positive implications in the Bellagio deal for alternative capital structures used by VICI.<\/p>\n<\/div>\n

\u201cValidation of alternative funding structures by real estate investment trusts in gaming, which is supportive of VICI and its development loans in experiential leisure,\u201d added the analyst.<\/p>\n

As for Caesars, appreciation in Bellagio\u2019s real estate could be a signal that if Caesars decides to unload a Strip venue — a long-running rumor — it could fetch a higher price than previously expected. Additionally, the involvement of Realty Income in the Bellagio transaction could be a sign that sellers of casino real estate could find a broader pool of potential buyers than they have in years past.<\/p>\n

MGM Benefits, Too<\/h2>\n

The positives for MGM in the Bellagio stake sale are clear: the operator maintains a 5% interest in the venue\u2019s property assets, and could likely command an attractive price should it choose to monetize that stake.<\/p>\n

The deal also confirms there\u2019s strong demand for the real estate associated with the Las Vegas integrated resorts run by MGM<\/strong>.<\/p>\n

That\u2019s relevant, because there\u2019s also been speculation that BREIT could look to monetize its stake in the Cosmopolitan,<\/a>\u00a0and also because the Blackstone entity owns the property of MGM-operated Aria and Vdara.<\/p>\n","protected":false},"excerpt":{"rendered":"

Blackstone\u2019s (NYSE: BX) Blackstone Real Estate Income Trust (BREIT) recently announced the sale of a 21.9% interest in the property assets of Bellagio on the Las Vegas Strip to Realty Income (NYSE: O) for approximately $950 million. That price point implies the casino resort is worth $5.1 billion, or about 20% more than the $4.25 […]<\/p>\n","protected":false},"author":46,"featured_media":246479,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10,81886],"tags":[81897,81903,23],"acf":[],"yoast_head":"\nBellagio Sale Could Benefit Caesars, VICI Properties, Says Analyst<\/title>\n<meta name=\"description\" content=\"Bellagio stake sale could be positive for Caesars, MG, VICI, says analyst.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bellagio Sale Could Benefit Caesars, VICI Properties, Says Analyst\" \/>\n<meta property=\"og:description\" content=\"Bellagio stake sale could be positive for Caesars, MG, VICI, says analyst.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T19:23:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-29T16:45:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/bellagio.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"797\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/\",\"url\":\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/\",\"name\":\"Bellagio Sale Could Benefit Caesars, VICI Properties, Says Analyst\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/bellagio.jpg\",\"datePublished\":\"2023-08-28T19:23:04+00:00\",\"dateModified\":\"2023-08-29T16:45:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Bellagio stake sale could be positive for Caesars, MG, VICI, says analyst.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/bellagio-sale-could-benefit-caesars-vici-properties-says-analyst\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/bellagio.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/12\/bellagio.jpg\",\"width\":1200,\"height\":797,\"caption\":\"Bellagio on the Las Vegas Strip. 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