Officials for Pinnacle Entertainment have dismissed an investor proposal to move their 14 casinos into a real estate investment trust.
Instead, officials said they are consolidating the casinos the company acquired last year in a $2.8 billion buyout of Ameristar Casinos.
Pinnacle CEO Anthony Sanfilippo told reporters during a conference call that Pinnacle is looking to reduce its $4.35 billion in debt, including debt taken on from the Ameristar casinos. But the company might consider the idea in the future, he said.
Earlier this month, Orange Capital, a New York-based investment fund, proposed the Real Estate Investment Trust spin-off to increase shareholder value.
Sanfilippo also said Pinnacle was still exploring expansion. Responding to questions, he said the company is not looking to develop a casino in japan, but is looking at possibly pursuing development in New York State.
Pinnacle has submitted a $1 million application fee in New York, but has not named a preferred site.
“It has to be compelling to move forward and compete for a license,” Sanfilippo said, according to the Las Vegas Review Journal.
Pinnacle reported a net income of $19 million and earnings per share of 31 cents in the first quarter of this year. Last year, the company lost $85.4 million or 31 cents per share. Net revenue grew 100 percent to $532.8 million, according to the Journal.
