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What Is an Opco?

Contents

Deciphering Opco: Understanding Operating Companies in REIT Deals

Learn about opcos and propcos in real estate investment trust (REIT) deals. Explore the mechanics of opco/propco structures, their benefits, and examples of their implementation in the casino industry.

Understanding Opco in REIT Deals

Discover the role of operating companies (opcos) in opco/propco deals within the context of REIT transactions. Learn how opcos manage day-to-day operations while propcos maintain ownership of revenue-generating properties.

How Opco/Propco Deals Work

Explore the intricacies of opco/propco deals and their financial implications for companies. Learn how separating operating and property entities can enhance financial flexibility and improve credit ratings.

Case Study: Opco Restructuring in Casino Companies

Delve into real-world examples of opco restructuring, such as Penn National Gaming's 2013 spinoff of its properties into a REIT. Understand the tax benefits and financial advantages of implementing opco/propco strategies in the casino industry.

Differentiating REOCs and REITs

Contrast real estate operating companies (REOCs) with REITs in terms of investment strategies and income distribution. Explore the growth prospects and income generation capabilities of both entities within the real estate sector.