One of the longest-running Las Vegas Strip dealings rumors was lay to bottom earlier this afternoon. That’s when Caesars Entertainment (NASDAQ:CZR) management said the accompany will not continue with selling ace of its Sin City assets.

CEO Tom Reeg made the comments on the company’s third-quarter earnings conference call. Entering 2022, the rife wisdom held that Caesars would herald the sales event of I of its Strip properties inwards the number 1 half of the year. As the months passed, speculation largely centered around Flamingo and a possible $1 one thousand million toll tag.

Selling a Strip holding was long viewed by psychoanalyst and investors as indispensable to Caesars’ debt-reducing efforts. But the gambling casino whale is making get along on that front. The Horseshoe manipulator entered the third billet with $13.7 one thousand million inward liabilities, but that enter declined to $13.3 billion, as of Sept. 30. The companionship has $944 one thousand thousand in immediate payment and hard cash equivalents, not counting $244 billion in restricted cash.

We continued to scale down debt during the quarter using net plus cut-rate sale proceeds and liberate cash in flowing totaling $880 million. In betimes October, we successfully upsized our pro rata camber facilities to $3 billion, including a young $750 meg Term Loan type A and a $2.25 billion Revolving Credit Facility that mature in 2028,” said CFO Bret Yunker in a statement.

Investors didn’t seem to brain news of the asset sales agreement project existence scrapped, as shares of Caesars jumped 5.43% inward after-hours trading.

Not Surprising Caesars Asset Sale Plan Is Off

As noted above, the dominant wisdom entering 2022 was that Caesars would announce a Las Vegas asset sales agreement inward the foremost half of the year. But as time dragged on, analysts adjusted expectations, with some late expression the dealing in all probability wouldn’t occur this year.

That’s non surprising, because the macroeconomic environs rapidly turned against commercial-grade tangible estate sellers. Rising interest group rates and venture that creditors will shortly tighten loaning standards are among the factors working against any society looking to offload commercial message properties, casinos, or otherwise.

Additionally, Reeg indicated on the claim that Caesars couldn’t fetch its desired $1 billion-plus asking cost for Flamingo. Specific to that property, that’s not especially surprising, because prospective buyers reportedly fretted almost the disbursal necessary to enhance the locale and its time to come public presentation upon being removed from the Caesars Rewards program.

For now, it could follow to Caesars’ vantage to hold its Strip portfolio as is, because Las Vegas is olympian expectations. That’s highlighted by the fact that the operator said Oct was the strongest month inwards fellowship history.

Q3 Earnings Review

In the Sept quarter, Harrah’s operated at 24 cents a portion out on sales of $2.9 billion, as same-store familiarised Earnings Before Interest Taxes Depreciation and Amortization climbed to $1 one million million from $880 1000000000000 a yr earlier. Analysts expected earnings of 23 cents a share. Investors are also likely excited past the results from Caesars Digital, which includes Caesars Sportsbook.

“Caesars Digital reported warm revenue ontogeny in the quarter, and a littler than expected EBITDA red ink impelled by improved operating efficiencies,” said Reeg inwards the statement.

In the July through and through Sep period, that social unit missed $38 million, compared with a twelvemonth earliest red of $164 million. The troupe added enhancements to its Atlantic City properties testament be completed inward 2023.