Published on: February 11, 2026, 12:19 PM.
Updated on: February 11, 2026, 12:19 PM.
- Company anticipates 2026 expenditures to reach up to $425 million for Durango, Green Valley Ranch, and Sunset Station expansions
- Projects are proceeding as scheduled and within budget
- Red Rock has announced a special dividend of $1 per share
Red Rock Resorts (NASDAQ: RRR) released their fourth-quarter results after the US market close on Tuesday. However, the highlights seem to revolve around the casino operator’s planned investments in Las Vegas and its ongoing strategy for shareholder rewards.
Encouragingly for investors, the firm disclosed that it invested $319 million in enhancing and maintaining its Las Vegas local casino hotels last year, which is less than its previous guidance of $325 million to $350 million. The Palace Station operator anticipates spending between $375 million to $425 million in the current year, including the second phase of Durango’s expansion and upgrades at Green Valley Ranch Resort Spa & Casino in Henderson, Nevada.
“Reviewing the projects, Sunset Station’s $53 million Phase I upgrade remains on budget and is slated for completion in the first half of 2026, with a $87 million Phase II beginning in Q2 and extending into early 2027,” noted Truist Securities analyst Barry Jonas in a report. “Additionally, GVR’s $56 million project is progressing well, with the west hotel tower reopened, while the casino refresh, the east hotel tower, and the convention center are all in development.”
Jonas reiterated a “buy” recommendation for Red Rock, raising his price target from $75 to $80, suggesting an upside of about 19% from its closing price on February 10.
Strong Capital Returns by Red Rock
The outlined spending plans are progressing effectively, and Red Rock remains a significant player in shareholder rewards within the gaming sector, particularly among small- and mid-cap companies.
The company recently announced another special dividend of $1 per share, marking the fifth such payout since 2021 for the Boulder Station operator. Additionally, the regular quarterly dividend has been marginally increased to 26 cents per share, up from 25 cents. Red Rock is actively buying back its shares, having found favorable prices during the fourth quarter.
“In Q4, RRR repurchased approximately 880,000 shares for $48 million (at an average of $54.67/share) and still has a remaining buyback capacity of around $513 million (about 7% of its market cap). Alongside RRR’s quarterly dividend ($0.26/share), management will issue a special $1.00 dividend payable on 2/27. Overall, these actions contribute to RRR’s year-to-date total of $297 million in shareholder returns,” said Jonas.
Red Rock’s Real Estate Assets Underappreciated
Despite a rise in shares by over 30% in the last year, one of the best performances among gaming stocks, it’s argued that one aspect of Red Rock’s value remains overlooked: its extensive real estate portfolio.
Unlike competitors who have offloaded assets for cash, leading to long-term liabilities, Red Rock retains full ownership of the land on which its gaming establishments operate and possesses numerous undeveloped acres in Las Vegas and Reno. Stifel analyst Steven Wieczynski asserts that Red Rock’s average land value is approximately $2 million per acre, significantly higher than what investors currently factor into the share price.
“We’re not suggesting that all their ~460 acres would sell for that price per acre, but there are certainly parcels in their holdings that are not receiving the recognition they merit from investors,” the analyst observed.