Penn National takes more than $1 billion in charges for 2013

Penn National Inc., the large casino and racetrack operator, took $1.13 billion in impairment charges in 2013 related to a spin-off of its assets, leading to a net loss of $794 million for the year, according to financial documents released Thursday.

The impairment charges were principally related to Penn National’s formation in the fourth quarter of 2013 of a separate company to hold its properties. The company, called Gaming and Leisure Properties Inc., will receive rent from the properties operated by Penn National Gaming Inc., in a structure called a real-estate investment trust that grants tax breaks to large property owners.

Earlier this year, just after its formation, Gaming and Leisure Properties distributed $1.05 billion in dividends to its shareholders, made up largely of officers of Penn National Gaming Inc. and investment funds with large stakes in the parent company. The company said in securities filings that the distribution was made to satisfy IRS requirements of forming the real-estate investment trust.

Revenue for Penn National Gaming Inc. in 2013 was $2.92 billion, up marginally compared to revenue of $2.90 billion in 2012, according to the documents. Not including the impairment charges, operating expenses for the year were $2.56 billion, up 4 percent compared to expenses of $2.46 billion in 2012.

Penn National operates casinos and racetracks in 16 U.S. states and one Canadian province, including Penn National in Pennsylvania, Zia Park in New Mexico, Charles Town in West Virginia, and the former Beulah Park in Ohio.