Gaming REITs Eye Future Opportunities
The key phrase, ‘gaming REITs positive,’ captures the evolving landscape of gaming real estate investment trusts (REITs) as VICI Properties and Gaming & Leisure Properties (GLPI) express confidence. Amidst challenges, these companies foresee potential deals in the near future, according to analyst Barry Jonas of Truist Securities at a recent real estate investment conference in New York. With ongoing partnerships, such as VICI’s interest in Red Rock Resorts and GLPI’s evolving relationship with Bally’s Corp., gaming REITs are nurturing growth through commercial and tribal gaming investments.
Discover more about upcoming gaming deals.
Challenges and Growth Prospects
Despite mixed performance, gaming REITs maintain a positive outlook. VICI has seen a 7% increase year-to-date, earning a Buy rating, while GLPI reported a slight decline but remains optimistic about reaching the high end of their financial guidance. Barry Jonas noted that GLPI is benefiting from relatively stable interest rates and anticipates meeting most rent escalators. These factors demonstrate that ‘gaming REITs positive’ sentiment prevails among industry leaders.
With ongoing projects like Penn Entertainment’s Joliet development and VICI’s North Fork Rancheria venture in California, there’s significant momentum. Meanwhile, American Gaming Association provides valuable insights into regulatory and market dynamics. As gaming markets mature, investors question growth potential, prompting GLPI to explore new avenues while leveraging its established presence in the sector.
Strategic Partnerships and Future Plans
Both VICI and GLPI are extending their portfolios into tribal gaming and non-gaming ventures. VICI’s collaboration with Red Rock Resorts on the North Fork Mono Casino & Resort exemplifies its strategic expansion. Meanwhile, GLPI is eyeing additional tribal opportunities, seeing current deals as a foundation for future growth. The mutual confidence of gaming REITs like VICI and GLPI reflects their adaptability to current economic conditions and regulatory landscapes.
Tribal partnerships remain complex yet promising. GLPI acknowledges the challenges of working with tribes of high credit quality, emphasizing the long-term benefits of these partnerships. This sentiment underpins the notion that successful navigation of these intricacies positions gaming REITs for continued growth.
