Crimson Rock Unveils One other Particular Dividend, Updates Las Vegas Spending Plans

• Firm forecast 2026 spending of as much as $425 million, together with Durango, Inexperienced Valley Ranch, and Sundown Station expansions
• These initiatives are on time and on funds
• Crimson Rock declared a particular dividend of $1 per share

Crimson Rock Resorts (NASDAQ: RRR) delivered fourth-quarter outcomes after the shut of US markets Tuesday, however the true factors of emphasis would be the on line casino operator’s Las Vegas spending plans and its ongoing shareholder rewards story.

Durango On line casino & Resort. Operator Crimson Rock is paying one other particular dividend. (Picture: Shutterstock)

Maybe to the delight of some traders, the corporate stated it spent $319 million enhancing and sustaining its numerous Las Vegas locals on line casino accommodations final yr, beneath prior steering of $325 million to $350 million. The Palace Station operator stated it expects to spend $375 million to $425 million this yr – an estimate together with the second part of growth at Durango and enhancements at Inexperienced Valley Ranch Resort Spa & On line casino in Henderson, Nevada.

Wanting across the portfolio, Sundown Station’s $53 million Section I refresh is on funds and on schedule for a 1H:26 completion with a $87 million Section II set to start in Q2 and prolong into early 2027,” stated Truist Securities analyst Barry Jonas in a report. “As well as, GVR’s $56 million mission is effectively underway with the west resort tower reopened; although its on line casino refresh, east resort tower and conference heart are in progress.”

He reiterated a “purchase” score on Crimson Rock whereas upping his worth goal to $80 from $75, implying upside of roughly 19% from the Feb. 10 shut.

Crimson Rock Capital Return Story Stays Robust

Not solely are the aforementioned spending plans on time and on funds, however Crimson Rock stays one of the crucial spectacular shareholder rewards tales within the gaming business, significantly amongst small- and mid-cap operators.

The corporate introduced yesterday it’s paying one other particular dividend of $1 per share, marking the fifth time since 2021 the Boulder Station operator has declared a particular payout. That goes together with a modest improve to the often quarterly dividend, which is now 26 cents a share, up from 25 cents. Crimson Rock stays an energetic purchaser of its shares and bought good pricing on that entrance within the fourth quarter.

“RRR purchased again one other ~880,000 shares for a complete of $48 million (avg $54.67/share) in This fall, and has one other $513 million of capability remaining (~7% of market cap). Along with RRR’s quarterly dividend ($0.26/share), administration paid a $1.00 particular payable 2/27. All-in, these deliver RRR’s YTD whole to $297 million of shareholder returns,” provides Jonas.

Crimson Rock Actual Property Not Totally Appreciated

With the shares up greater than 30% over the previous yr, good for among the finest performances amongst all gaming equities, it’s laborious to say Crimson Rock is underappreciated, however one analyst argues that’s the case concerning one factor of the story: The operator’s huge actual property holdings.

Not like some rivals that bought off property to lift money, taking up long-term obligations within the course of, Crimson Rock owns all of the land on which its gaming venues resides in addition to a whole bunch of unused acres in Las Vegas and Reno. Stifel analyst Steven Wieczynski says Crimson Rock’s common land holding is price $2 million per acre, which is effectively above the worth traders are baking into the share worth.

“We aren’t saying all their ~460 acres would get bought for that quantity per acre, however there are clearly parcels of land out of their portfolio which aren’t getting full recognition from traders they in all probability ought to be,” observes the analyst.