As the leading entity in downtown Las Vegas and a prominent operator of local casinos throughout the valley, Boyd Gaming (NYSE: BYD) holds a plethora of Las Vegas real estate assets, yet it is unlikely to unload these properties in order to generate cash.
In an interview with Howard Stutz of the Nevada Independent, Boyd CEO Keith Smith reinforced this notion, saying, “With the strength of our balance sheet, the strength of our cash flows and our ability to access other forms of financing, we just don’t have a need (to sell real estate).”
Boyd’s financial situation is strong, which allows the operator to pay out dividends and repurchase its own stock, a rare combination in the gaming industry. At the end of 2022, the company had $283.5 million in cash and $3.05 billion in debt.
The company is also not likely to pursue sale-leaseback deals, which have become increasingly common in the gaming sector. In such deals, a casino operator sells the property assets of a venue or multiple venues to a real estate investment trust or private equity firm for an upfront cash payment. However, the gaming company is still responsible for the upkeep of the sold properties and assumes long-term
