Posted on: February 11, 2026, 12:19h.
Last updated on: February 11, 2026, 12:19h.
- Company forecast 2026 spending of up to $425 million, including Durango, Green Valley Ranch, and Sunset Station expansions
- Those projects are on time and on budget
- Red Rock declared a special dividend of $1 per share
Red Rock Resorts (NASDAQ: RRR) delivered fourth-quarter results after the close of US markets Tuesday, but the real points of emphasis may be the casino operator’s Las Vegas spending plans and its ongoing shareholder rewards story.
Perhaps to the delight of some investors, the company said it spent $319 million enhancing and maintaining its various Las Vegas locals casino hotels last year, below prior guidance of $325 million to $350 million. The Palace Station operator said it expects to spend $375 million to $425 million this year – an estimate including the second phase of expansion at Durango and enhancements at Green Valley Ranch Resort Spa & Casino in Henderson, Nevada.
Looking around the portfolio, Sunset Station’s $53 million Phase I refresh is on budget and on schedule for a 1H:26 completion with a $87 million Phase II set to begin in Q2 and extend into early 2027,” said Truist Securities analyst Barry Jonas in a report. “In addition, GVR’s $56 million project is well underway with the west hotel tower reopened; though its casino refresh, east hotel tower and convention center are in progress.”
He reiterated a “buy” rating on Red Rock while upping his price target to $80 from $75, implying upside of approximately 19% from the Feb. 10 close.
Red Rock Capital Return Story Remains Strong
Not only are the aforementioned spending plans on time and on budget, but Red Rock remains one of the most impressive shareholder rewards stories in the gaming industry, particularly among small- and mid-cap operators.
The company announced yesterday it’s paying another special dividend of $1 per share, marking the fifth time since 2021 the Boulder Station operator has declared a special payout. That goes along with a modest increase to the regularly quarterly dividend, which is now 26 cents a share, up from 25 cents. Red Rock remains an active buyer of its shares and got good pricing on that front in the fourth quarter.
“RRR bought back another ~880,000 shares for a total of $48 million (avg $54.67/share) in Q4, and has another $513 million of capacity remaining (~7% of market cap). In addition to RRR’s quarterly dividend ($0.26/share), management paid a $1.00 special payable 2/27. All-in, these bring RRR’s YTD total to $297 million of shareholder returns,” adds Jonas.
Red Rock Real Estate Not Fully Appreciated
With the shares up more than 30% over the past year, good for one of the best performances among all gaming equities, it’s hard to say Red Rock is underappreciated, but one analyst argues that is the case regarding one element of the story: The operator’s vast real estate holdings.
Unlike some rivals that sold off property to raise cash, taking on long-term obligations in the process, Red Rock owns all the land on which its gaming venues resides as well as hundreds of unused acres in Las Vegas and Reno. Stifel analyst Steven Wieczynski says Red Rock’s average land holding is worth $2 million per acre, which is well above the value investors are baking into the share price.
“We aren’t saying all their ~460 acres would get sold for that amount per acre, but there are clearly parcels of land out in their portfolio which aren’t getting full recognition from investors they probably should be,” observes the analyst.
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