Gaming REITs Explained for Real Estate Investors

Gaming REITs are a type of real estate investment trust that focuses on owning and operating properties related to the gaming industry.

Gaming REITs can be a great option for real estate investors looking to diversify their portfolios.

They offer a unique opportunity to invest in a specific sector of the real estate market.

Some notable examples of gaming REITs include VICI Properties, which owns real estate properties leased to gaming and hospitality companies.

Gaming REITs often have a high level of debt, which can be a concern for some investors.

For another approach, see: Reits vs Real Estate

A gaming REIT, or Real Estate Investment Trust, is a unique investment vehicle that allows individuals to invest in the gaming industry without directly owning physical properties.

Gaming REITs typically invest in a variety of assets, including gaming properties, hotels, and resorts.

These investments can be a great way to diversify your portfolio and potentially earn passive income through rental income or property appreciation.

Gaming REITs often have a diversified portfolio of properties, which can reduce risk and increase potential returns.

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Vici stands out among gaming REITs for its consistent dividend payments, increasing its dividend regularly since its initial public offering.

Gaming & Leisure, on the other hand, cut its dividend in 2020 due to the coronavirus pandemic, but has since gotten back on the growth track.

Vici has 11 tenants across 50 properties, with its top two tenants accounting for 40% and 36% of rents, respectively. Gaming & Leisure owns 57 properties, but is much more dependent on just one operator, with that tenant generating roughly 65% of rents.

Vici's debt-to-equity ratio is 0.7 times, while Gaming & Leisure's is almost 1.7 times, indicating that Vici has more financial flexibility in times of adversity.

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Gaming and Leisure Properties owns a diverse portfolio of properties, including casinos and hotels. They have a significant presence in the gaming industry.

One of the notable properties leased to Strategic Gaming Management is Baldini's Casino in Sparks, Nevada. It's a popular destination for gamers.

Gaming and Leisure Properties also has a significant presence in the Midwest, with properties leased to Boyd Gaming. This includes Ameristar Casino Hotel Kansas City in Kansas City, Missouri.

Belterra Casino Resort & Spa in Florence, Indiana, is another notable property leased to Boyd Gaming. It's a well-known spot for gaming enthusiasts.

Here's a list of some of the notable properties owned by Gaming and Leisure Properties:

Vici's dividend history is a key differentiator, having increased its dividend regularly since its IPO.

Gaming & Leisure, on the other hand, cut its dividend in 2020 due to the pandemic, but has since gotten back on track.

Vici has 11 tenants across 50 properties, whereas Gaming & Leisure owns 57 properties but only has 6 tenants.

Its top two tenants account for 40% and 36% of rents, respectively, while Gaming & Leisure's top tenant generates roughly 65% of rents.

Vici's debt-to-equity ratio is 0.7 times, while Gaming & Leisure's is almost 1.7 times, indicating less financial flexibility in times of adversity.

Vici's adjusted FFO payout ratio was roughly 74% in the first quarter, leaving some room to deal with adversity.

They've been involved in several significant acquisitions, including the purchase of Vantiv for $10.4 billion in 2017.

Their experience in navigating the complex M&A environment has allowed them to expand their portfolio and increase their market share.

The company's focus on strategic acquisitions has helped them stay ahead in the competitive leisure industry.

Their ability to identify and capitalize on opportunities has been a key factor in their success.

By carefully selecting and integrating new assets, they've been able to enhance their offerings and improve their bottom line.

Their expertise in M&A has also enabled them to adapt to changing market conditions and stay competitive.

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Gaming REITs offer a unique opportunity for investors to tap into the growing gaming industry.

Gaming REITs have historically outperformed the broader market, with some companies experiencing growth rates of over 20% per year.

One notable example is Simon Property Group, which has invested in several gaming-related properties, including a Las Vegas casino.

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Investors can gain exposure to the gaming industry through REITs that focus on gaming-related properties, such as casinos, hotels, and entertainment complexes.

These investments can provide a steady stream of income through rental income and property appreciation.

The gaming industry is expected to continue growing, driven by increasing demand for entertainment and leisure activities.

Additional reading: Reits for Retirement Income