Gaming and Leisure Properties is Poised for Growth with Robust Deal Pipeline

Posted on: January 11, 2024, 02:20h.

Last updated on: January 11, 2024, 02:20h.

Gaming and Leisure Properties (NASDAQ: GLPI) may look into offloading the Tropicana Las Vegas casino hotel under the conditions of the write price and a strong commitment to maximizing property value, according to Truist Securities analyst Barry Jonas. Potential buyers would be pleased to know that executives of the real estate investment trust (REIT) are considering potential acquisitions in Chicago and Las Vegas with a focus on MLB stadium developments and the tribal gaming market.

Gaming and Leisure Properties
A slide from a Gaming and Leisure Properties presentation. The REIT is open to acquisitions in Chicago, Las Vegas, and beyond. (Image: Seeking Alpha)

Jonas reported that the REIT is open to the potential acquisition of Bally’s permanent Chicago casino, and may also be considering the real estate of Bally’s in Lincoln, RI. “We sensed management was open to potentially participating in Bally’s permanent Chicago property, though GLPI hasn’t made any commitments and would require favorable safety and economics to potentially engage in any deal,” wrote Jonas in a note to clients.

The executive team also told Jonas that there’s potentially significant opportunity in Tribal gaming real estate. “Management noted tribal properties were a significant untapped market, though it would require a framework to make investments safely and securely,” Jonas said.

Should such a transaction being executed, it’d likely result in one of the priciest pieces of property in the GLPI portfolio.

The REIT has an existing relationship with the Seminole Tribe of Florida, which operates gaming venues under the Hard Rock brand, but those agreements pertain to casinos outside of Florida.

Although VICI Properties (NYSE: VICI) has been more active in the acquisition space recently, GLPI’s management says conversations with casino operators have progressed and have resulted in a long list of potential deals for the REIT. Overall, most analysts agree that this is a buy.”We are positive on GLPI’s increasingly visible deal pipeline and think balance sheet flexibility will prove highly advantageous on top of the potential for an improving rate environment,” concluded the analyst.

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