Caesars Entertainment’s third-quarter revenues and adjusted earnings were essentially flat year over year, as it announced the sale of the Linq Promenade in Las Vegas for $275 million.
Caesars made the announcement just prior to its third-quarter earnings call on Tuesday. The sale is to a joint venture to be formed between TPG Real Estate and the Investment Management Platform of Acadia Realty Trust. The sale of the retail enclave between its Linq and Flamingo properties on the Las Vegas Strip is expected to close during the fourth quarter 2024.
“The sale of the Linq Promenade represents an accretive, non-core, asset sale that will accelerate our debt-reduction goals,” said Caesars CEO Tom Reeg.
Caesars reported net revenues of $2.9 billion versus $3 billion for the comparable prior-year period. Same-store adjusted EBITDA was $1 billion versus $1.04 billion year over year. The net loss of $9 million compared to net income of $74 million.
Caesars Digital had adjusted EBITDA of $52 million versus $2 million for the comparable prior-year period, setting a new all-time quarterly record for adjusted EBITDA driven by over 40% growth in net revenues.
“During the third quarter, we delivered another quarter of $1 billion of same-store consolidated adjusted EBITDA,” Reeg said. “Results in Las Vegas reflect record third- quarter hotel, food and beverage, and banquet revenues driven by strong occupancy and cash average daily room rates.”
Reeg said the regional-segment operating results were negatively impacted by new competition, construction disruption, and difficult comparisons against third quarter 2023.
