{"id":272185,"date":"2023-05-05T11:48:56","date_gmt":"2023-05-05T16:48:56","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=272185"},"modified":"2023-05-05T17:22:36","modified_gmt":"2023-05-05T22:22:36","slug":"red-rock-can-score-big-payday-in-baseball-stadium-land-deal","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/","title":{"rendered":"Red Rock Sitting on Treasure Trove of Stadium Land, Says Analyst"},"content":{"rendered":"

Red Rock Resorts (NASDAQ: RRR) delivered first-quarter results on Thursday. But the company was mostly mum about a potential land sale to Major League Baseball\u2019s Oakland Athletics. Analysts believe the casino operator can wring significant rewards from such a transaction.<\/p>\n

\"Red
An image of the Red Rock Resort, Casino, and Spa. The operator could be in for a big payday in its baseball stadium land sale. (Image: Station Casinos)<\/figcaption><\/figure>\n

Less than three weeks ago, it was revealed the A\u2019s are moving to Las Vegas<\/a> and plan to build a $1.5 billion ballpark near Tropicana Boulevard and Interstate 15. That land is owned by Red Rock. The operator previously wanted to use a portion of the 96 acres for its Viva casino complex, but the global financial crisis damned that effort. The A\u2019s have an agreement with Red Rock under which the team will buy 48.6 of those acres, with an option to acquire eight more in the future.<\/p>\n

Due to confidentiality, the purchase price of this transaction has not been disclosed, but the anticipated closing of the sales anticipated to occur in the fourth quarter later this year. As a reminder, the entire Viva site consists of 96 acres,\u201d said Red Rock CFO Stephen Cootey on a conference call with analysts. \u201cSo if the A’s transaction closes and they exercise their 8-acre option, we still retain 39.3 acres for future monetization as we continue to execute on our strategy of repositioning our land portfolio for future growth.\u201d<\/p><\/blockquote>\n

Twenty of those acres were previously occupied by Red Rock\u2019s Wild Wild West Gambling Hall & Hotel, which the operator shuttered last September<\/a> and later demolished.<\/p>\n

Red Rock Primary Beneficiary of A\u2019s Move<\/h2>\n

While it\u2019s expected that all Las Vegas casino operators will benefit from adding Major League Baseball to Sin City, the consensus is building among analysts that gaming properties catering to locals<\/a> will be the biggest winners, with Red Rock a clear leader of that group.<\/p>\n

The land is an obvious foundation for that thesis, and while Red Rock isn\u2019t yet telling analysts and investors how much it\u2019s getting for the property it\u2019s selling to the A\u2019s, it will surely be an impressive sum.<\/strong><\/p>\n

\u201cEven if they don\u2019t build a casino, we believe the company\u2019s remaining ~40 acres that would sit next to the ballpark complex would become extremely valuable if they wanted to eventually sell those acres,\u201d wrote Stifel analyst Steven Wieczynski in a note to clients. \u201cWe estimate that land sold around the Raiders’ new stadium was valued in the $5M-$6M range, and believe RRR\u2019s untapped acreage around the prospective A\u2019s ballpark could go for more than that.\u201d<\/p>\n

Even when working on a hypothetical scenario that Las Vegas commercial real estate hasn\u2019t appreciated over the past several years, Red Rock would gross $288 million by selling 48 acres to the A\u2019s at $6 million an acre. Throw in the eight acres the A\u2019s have the option to buy, and the potential sales price at $6 million balloons to $336 million, or a significant percentage of Red Rock\u2019s market capitalization of $4.76 billion.<\/p>\n

Land Sale Cash Added Perk for Red Rock<\/h2>\n

As Wieczynski pointed out, Red Rock already has one of the cleaner balance sheets among regional casino operators, indicating it doesn\u2019t necessarily need the capital from the land sale. It\u2019s merely icing on the cake.<\/p>\n

We think this story becomes more attractive by the day and while we model flattish margins moving forward, if we are wrong, shares are massively undervalued at current levels,\u201d<\/strong> concluded the analyst.<\/p><\/blockquote>\n

He rates the stock \u201chold\u201d with a $54 price target.<\/p>\n","protected":false},"excerpt":{"rendered":"

Red Rock Resorts (NASDAQ: RRR) delivered first-quarter results on Thursday. But the company was mostly mum about a potential land sale to Major League Baseball\u2019s Oakland Athletics. Analysts believe the casino operator can wring significant rewards from such a transaction. Less than three weeks ago, it was revealed the A\u2019s are moving to Las Vegas […]<\/p>\n","protected":false},"author":46,"featured_media":218833,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886,82963,1],"tags":[81903,23,81829,81967],"acf":[],"yoast_head":"\nRed Rock Can Score Big Payday In Baseball Stadium Land Deal<\/title>\n<meta name=\"description\" content=\"Red Rock could reap windfall by selling land to Oakland A's.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Red Rock Can Score Big Payday In Baseball Stadium Land Deal\" \/>\n<meta property=\"og:description\" content=\"Red Rock could reap windfall by selling land to Oakland A's.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-05T16:48:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-05T22:22:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/RR-Property-Hero-scaled-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/\",\"url\":\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/\",\"name\":\"Red Rock Can Score Big Payday In Baseball Stadium Land Deal\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/RR-Property-Hero-scaled-1.jpeg\",\"datePublished\":\"2023-05-05T16:48:56+00:00\",\"dateModified\":\"2023-05-05T22:22:36+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Red Rock could reap windfall by selling land to Oakland A's.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/red-rock-can-score-big-payday-in-baseball-stadium-land-deal\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/RR-Property-Hero-scaled-1.jpeg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/RR-Property-Hero-scaled-1.jpeg\",\"width\":2560,\"height\":1440,\"caption\":\"An image of the Red Rock Resort, Casino, and Spa. 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