Published on: October 1, 2025, 12:37h.
Updated on: October 1, 2025, 12:37h.
- Casino REIT is set to acquire the real estate of Sunland Park Racetrack & Casino
- Gaming and Leisure Properties is investing $183.75 million at an 8.2% cap rate
Gaming and Leisure Properties (NASDAQ: GLPI) has announced the acquisition of the real estate assets associated with Sunland Park Racetrack & Casino, located in southern New Mexico.
The gaming-focused real estate investment trust (REIT) will pay an amount of $183.75 million for the racino’s property, reflecting an initial cap rate of 8.2%. According to representatives from Gaming and Leisure, this transaction, which entails a 2% annual rent escalator, will positively impact adjusted funds from operations (AFFO) immediately. AFFO serves as a crucial metric for investors assessing the financial stability and dividend sustainability of a REIT.
Established in 1959, Sunland Park spans roughly 157 acres and features 738 slot machines alongside 12 electronic gaming tables within a 25,000 square foot gaming area,” stated GLPI in a press release. “The facility includes a one-mile Thoroughbred and Quarter Horse racetrack with a stadium seating 733, a 600-person ballroom, a simulcast wagering space, and a hotel with 78 rooms. Additionally, the property holds underutilized land, which presents significant expansion opportunities and the potential for increased performance.”
The lease agreement will start with a term of 25 years and includes two 10-year renewal options.
GLPI Strengthens Partnership with Strategic Gaming
The acquisition of Sunland Park Racetrack & Casino not only continues but also enhances Gaming and Leisure’s collaboration with Strategic Gaming Management, the venue’s operator.
The New Mexico venue marks the fourth property managed by Strategic Gaming that GLPI has acquired. In May 2024, the REIT announced it would purchase Baldini’s Casino in Sparks, Nevada for $105 million, along with the Silverado Franklin Hotel & Gaming Complex and the Deadwood Mountain Grand in South Dakota.
With this new acquisition, GLPI now holds two properties in New Mexico, the other being Zia Park Casino Hotel & Racetrack located in Hobbs. The newly acquired venue boasts specific geographic advantages.
“Sunland Park is situated in the Borderplex Region, comprising El Paso, Texas, and Las Cruces, NM. This area has a large adult demographic (approximately 2 million) and a growing median household income,” noted Barry Jonas, analyst at Truist Securities, in a report released today. “The property encounters limited competition, with its nearest rival over 20 miles away (Speaking Rock) and no proposed commercial casinos within a 550-mile radius.”
Investment Strategy Aligns with Gaming and Leisure Properties’ Focus
The acquisition of Sunland Park aligns perfectly with Gaming and Leisure’s investment strategy. Based in Pennsylvania, Gaming & Leisure holds the real estate for numerous casinos, deliberately steering clear of competitive markets like Las Vegas while favoring properties in more rural areas.
This investment strategy was further exemplified in September when GLPI secured a financing agreement worth $225 million with Caesars Entertainment (NASDAQ: CZR) and the Dry Creek Rancheria Band of Pomo Indians for the Caesars Republic Sonoma County project.
Later that month, the REIT finalized a substantial $735 million sale-leaseback transaction with Bally’s concerning the Twin River Lincoln Casino Resort in Lincoln, RI.