Century Casino to sell four Canadian properties to Vici
Century Casinos has entered into a definitive agreement with VICI Properties to sell the real estate assets in Alberta.
Canada.- Century Casinos has announced that it has entered into a definitive agreement with VICI Properties subsidiaries to sell the real estate assets of four properties in Alberta, Canada. The companies have agreed upon an aggregate purchase price of $164.4m (CA$221.7m).
VICI will buy Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino. The master lease will have a 15-year initial base as part of a mutually agreed-upon extension that will start at the close of the sale.
The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2023.
Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos said: “We are pleased to extend our good partnership with VICI to our Canada portfolio. This transaction unlocks the real estate value of our Canadian properties while continuing our Canadian operations and provides us with greater financial flexibility as we continue to grow.
“We intend to use the sale proceeds to fund improvements at the Nugget and for general corporate purposes. We are also looking at the potential to apply some proceeds to paydown debt under our credit agreement and/or to return funds to shareholders through stock repurchases and/or a special dividend. We continue to evaluate the optimal use of our capital.”
In April, Century Casinos completed its acquisition of the operations of the Nugget Casino Resort from Marnell Gaming for approximately $100m. It had already purchased 50 per cent of the membership interests in Smooth Bourbon, which owns the land and building on which the Nugget is located, a year ago.
Century Casinos revenue rises 5.3% in Q1 2023
Century Casinos has reported financial results for the quarter ended March 31. The company has reported net operating revenue of $108.5m, up 5.3 per cent compared to the same period last year. Adjusted EBITDA rose by 9 per cent to $26.1m while the net loss attributable to shareholders was $1.2m, a decrease of 670 per cent. Earnings from operations were $18.4m, up 41 per cent.
Gaming revenue made up a majority of Century’s operating revenue at $94.2m. Food and beverages generated $5.7m, while parti-mutuel, sports betting and igaming generated $3.3m. The remaining revenue was made up of hotel and other revenue.