Century On line casino (NASDAQ: CNTY) could leverage its actual property holdings as a method of unlocking shareholder worth and decreasing debt.
That is the view of Stifel analyst Jeffrey Stanshall, who highlighted Century’s actual property choices in a brand new report for purchasers. A on line casino operator within the space not too long ago stated it might promote actual property to lift capital. Earlier this month, Century introduced it might promote the true property property of 4 Canadian gaming venues to VICI Properties (NYSE: VICI) for $164.4 million. The transaction is anticipated to shut within the second half of 2023 and can generate an estimated $114.6 million in income for the vendor.
Stanshall sees potential in Century’s two Colorado on line casino properties and a 50% possession curiosity in Nugget Sparks in northern Nevada.
This implies additional voluntariness, and it’s unlikely that CNTY will obtain full credit score for the remaining property possession within the valuation. For CNTY’s CO property, potential incremental capital would exceed $100 million, assuming double lease compensation and a cap price consistent with the newest settlement signed with VICI. ” wrote the analyst.
Stanshall stated that, as is the case with many on line casino operators that personal actual property, Century’s estimated adjusted earnings (EBITDAR), excluding curiosity, taxes, depreciation, amortization, restructuring and rental bills, are based mostly on the enterprise. It added that it urged that his actual property story was not effectively obtained globally. funding group.
on line casino poland sale
For a number of years, Century was anticipated to promote its two-thirds stake in Casinos Poland. Nonetheless, the deal was delayed by the coronavirus pandemic and the following closure of these venues, in addition to Russia’s invasion of Ukraine in 2022.
Ukrainian refugees to Poland helped the On line casino Poland venue outperform, turning geopolitical headwinds into tailwinds, displaying Century no must rush to promote its stake within the operator. there’s
However, elevated earnings at Polish casinos may recommend that Century could reap the benefits of good timing to promote its shares and lift capital. Stanshall sees advantage within the transfer.
“Extra roll-up alternatives are possible in the long term, however the eventual sale of CNTY’s Polish property simplifies the story for US-focused buyers,” stated the analyst. It ought to,” he added.
Century may achieve momentum within the second half
Century fundamentals could possibly be boosted within the second half of the 12 months as enhancements materialize at two Missouri gaming venues and the operator leverages synergies at Nugget Sparks, along with asset gross sales .
As Stanshall noticed, Century has loads of room to extract earnings from its first Nevada venue, Nugget Sparks. It’s because the venue was beforehand run by a property developer and the slot flooring didn’t obtain ample funding.
The analyst additionally famous that the Reno/Lake Tahoe on line casino resorts have been hampered by unusually heavy snowfall in January and February, however that should not be an issue within the coming months.
