Golden Entertainment Inc. is exploring the potential sale-leaseback of one of its unnamed casinos, according to a recent report by Deutsche Bank analyst Carlo Santarelli. The move comes as the gaming company looks to unlock value from its real estate assets and improve its financial position.
Santarelli, who covers the gaming and leisure sector for Deutsche Bank, notes that a possible sale-leaseback deal could bring in much-needed cash for Golden Entertainment. The company has been facing financial difficulties in recent years, due in part to the impact of the COVID-19 pandemic on the gaming industry.
In a research note to investors, Santarelli writes, “We believe the potential sale-leaseback could be one of many options Golden Entertainment may pursue to strengthen its balance sheet. With the casino market slowly recovering from the pandemic, it is crucial for gaming companies to explore all avenues to improve their financial stability.”
While the identity of the casino in question has not been revealed, Golden Entertainment owns and operates a number of properties in Nevada, including the iconic Stratosphere Casino, Hotel & Tower in Las Vegas. The company also has casinos in Pahrump, Jean, and Laughlin, as well as in Maryland and Montana.
A sale-leaseback transaction typically involves a company selling a property to an investor and then leasing it back on a long-term basis. This allows the company to free up capital while still maintaining control of the property and continuing to operate its business.
Golden Entertainment has not confirmed any plans for a sale-leaseback deal, but Santarelli’s report has sparked speculation among investors and industry insiders. The gaming company has been actively looking for ways to improve its financial position, including selling non-core assets and cutting costs.
In a statement to CDC Gaming Reports, Golden Entertainment CEO Blake Sartini said, “We are constantly evaluating opportunities to enhance shareholder value and strengthen our balance sheet. While we have not made any specific decisions regarding a potential sale-leaseback, we are open to exploring all options that may benefit our company.”
If Golden Entertainment goes through with a sale-leaseback deal for one of its casinos, it could provide a much-needed boost to the company’s finances. The gaming industry has been hit hard by the pandemic, and companies like Golden Entertainment are looking for creative ways to weather the storm and emerge stronger on the other side.
Investors will be eagerly watching for any developments on this front, as a potential sale-leaseback deal could have significant implications for Golden Entertainment and the wider gaming industry. The company’s stock price has fluctuated in recent months, and a successful transaction could help restore confidence among shareholders and analysts alike.
As the gaming industry continues to navigate the challenges of the COVID-19 pandemic, companies like Golden Entertainment are looking for innovative ways to secure their futures. A sale-leaseback deal could be just the boost that the company needs to move forward and thrive in a post-pandemic world.
