LAS VEGAS - Full House Resorts Inc . (NASDAQ:FLL), a prominent player in the hospitality and gaming industry, has announced the extension of its casino operations lease through a subsidiary. The extension secures the company's long-term presence in a key location.
On Monday, Full House Resorts' subsidiary, Gaming Entertainment (Nevada) LLC, agreed with Incline Hotel LLC to amend the existing lease, which was due to expire at the end of 2024. The new arrangement extends the lease for an additional ten years, with a new expiration date of December 31, 2034.
Under the terms of the amendment, the annual rent for 2025 is set at $2,010,857, marking a slight increase from the $2,000,000 in 2024. Subsequent years will see an annual rent increase of 2%. The amended agreement also grants the landlord the right to terminate the lease early if they wish to renovate the premises.
This strategic move ensures that Full House Resorts will continue its operations without interruption and reflects the company's commitment to its long-term business plans. The extension also provides stability and predictability in terms of operational costs, with a clear schedule of rent increases.
The details of the lease amendment have been filed with the SEC and are accessible in the full text of the Amendment, which is incorporated by reference into this report. This financial maneuver, based on a press release statement, is part of Full House Resorts' ongoing efforts to maintain and enhance its market position in the competitive hospitality and gaming sector.
Investors and stakeholders in Full House Resorts may view this lease extension as a positive development, underscoring the company's confidence in its operational strategy and its commitment to maintaining a strong foothold in the industry.
In other recent news, Full House Resorts reported a robust first quarter with a remarkable 39% increase in gaming revenues at its American Place casino. The company also announced a noteworthy decrease in property insurance costs by 19% at Silver Slipper, which is projected to save approximately $900,000 over the next year.
Despite initial losses at the newly opened Chamonix casino, Full House Resorts anticipates reaching a break-even point in the near future. The company also plans to commence construction of a permanent location in Waukegan in August 2025, backed by fundraising efforts over the next 15-18 months.
On the board level, Full House Resorts announced the resignation of Michael Hartmeier, leading to a restructuring of its board from eight to seven directors. The company has appointed Lynn Handler as the new Chairperson of the Nominating Committee.
CEO Dan Lee addressed labor issues at new properties, assuring that a stable workforce has been established and these issues should be resolved within a year. Full House Resorts is also exploring the potential of offering online sports betting to its customer database.
InvestingPro Insights
In light of Full House Resorts Inc.'s (NASDAQ:FLL) recent lease extension, a look at the company's financial health and market performance offers additional context for investors. According to real-time data from InvestingPro, Full House Resorts has a market capitalization of $169.03 million, and despite a challenging environment, has achieved a significant revenue growth of 51.71% over the last twelve months as of Q1 2024. This growth is further exemplified by a quarterly revenue increase of 39.55% in Q1 2024, indicating a strong upward trend in the company's earning potential.
Two InvestingPro Tips highlight critical aspects of the company's financial landscape. Firstly, analysts are optimistic about Full House Resorts' sales growth in the current year, which aligns with the recent positive revenue trends. Secondly, the company is noted for not being profitable over the last twelve months and is not expected to be profitable this year either. These insights suggest that while Full House Resorts is expanding its revenue, it is still navigating the path to profitability.
For investors considering a deeper analysis, there are additional InvestingPro Tips available that can provide a comprehensive understanding of Full House Resorts' financial position and market outlook. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to exclusive insights that could further inform investment decisions. Visit https://www.investing.com/pro/FLL to explore further.
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