Pinnacle Entertainment Will Not Spin-Off Casinos

Pinnacle Entertainment has dismissed a proposal to spin-off its casinos, including the Belterra in Indiana (l.), into a new real estate investment trust (REIT). Company officials said they are focused on consolidating the casinos and reducing debt, but may consider the idea in the future.

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.

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