Pinnacle Plans REIT Spin-Off of Real Estate

LAS VEGAS—In an effort to maximize long-term shareholder value, the board of directors of Pinnacle Entertainment Inc. has green-lighted the firm’s plan to split its operating and real estate assets into two publicly traded companies. According to a Bloomberg report, the decision was driven in part by pressure from Orange Capital LLC, an activist investor in PNK.

To facilitate the separation, Pinnacle will create a newly formed, publicly traded REIT that will be distributed to PNK stockholders in a tax-free spin-off. PNK, meanwhile will remain as the operating entity. Pinnacle owns and operates 15 gaming entertainment properties in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada and Ohio. It also holds a majority interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, TX.