• Fri. Sep 24th, 2021

Gaming and Leisure Properties Inventory Rallies as Rivals Mix


Aug 5, 2021

Posted on: August 4, 2021, 10:42h. 
Final up to date on: August 4, 2021, 11:11h.

Todd Shriber Learn Extra

Gaming and Leisure Properties (NASDAQ:GLPI) inventory is amongst Wednesday’s best-performing actual property names. That’s after an analyst upgraded the shares and as consolidation involves its peer group.

Gaming and Leisure’s Tropicana Laughlin. An analyst forecasts extra upside for the gaming REIT. (Picture: Go to Laughlin)

In a be aware to purchasers earlier right this moment, UBS analyst Robyn Farley lifts her score on the gaming actual property funding belief (REIT) to “purchase” from “impartial,” whereas inserting a $54 value goal on the inventory. That means upside of 17.4 % from the Aug. 3 shut.

Moreover, the resilience of regional gaming tenants and the energy of lease phrases have been confirmed within the final yr, with GLPI unexpectedly reaching the benchmark for its Could 2021 escalators,” stated Farley.

Her GLPI name comes a day after Deutsche Financial institution analyst Carlo Santarelli reiterated a “purchase” score on the gaming REIT with a $56 value goal. The Wall Road consensus value forecast on GLPI inventory is $52.
GLPI Inventory ‘Wild Card’ with Tropicana Las Vegas
Farley notes GLPI has a possible “wild card” with the Tropicana Las Vegas, which might current the gaming REIT with a compelling redevelopment operator.

In an April transaction, Bally’s (NYSE:BALY) paid $150 million for the non-real property property of the Strip venue, and signed a 50-year lease with GLPI valued at $10.5 million yearly. Due to its desire for venues in regional markets, it was believed the REIT would finally half with Tropicana. However that wasn’t the case. Now, it’s working with Bally’s on plans to reinforce the 35-acre property.

On the corporate’s second-quarter earnings convention name final week, CEO Peter Carlino stated there’s a chance of extra property being added to the property. However issues are nonetheless up within the air.
“I don’t assume we and even Bally’s is aware of what extra is true now,” stated Carlino. “Frankly, we’re working cooperatively with them to determine how we will maximize no matter happens there. And I’m simply right here to say that we’re contemplating the maximization of each inch of that property.”
Geographic, Tenant Variety
Along with highlighting GLPI’s undertaking pipeline and debt discount efforts, Farley additionally pointed to the corporate’s standing as probably the most numerous triple internet lease REITs in the case of geographic and tenant diversification.
That place is being enhanced by consolidation within the gaming REIT house. Earlier right this moment, VICI Properties (NYSE:VICI) stated it’s buying MGM Development Properties (NYSE:MGP) for $17.2 billion in inventory. The mixed firm will depend upon Las Vegas for 45 % of its rental base, with Caesars Leisure and MGM Resorts being its marquee tenants.
Conversely, the Tropicana is GLPI’s solely Sin Metropolis asset, and its tenant roster, which incorporates Bally’s, Caesars, and Penn Nationwide Gaming, is bigger than its rivals.

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