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Gaming REITs show higher FFO and NOI, but weaker returns in 2026
Through July 31, 2026 gaming REITs had a -1.2% total return alongside a 6.98% dividend yield, while 2026 Q1 FFO hit a record $1.2 billion.
Gaming REITs, which own casinos, resorts, hotels and other leisure venues leased to operators on long-term, triple-net contracts, have continued to improve fundamentals, according to Nareit’s REIT industry coverage. The sector’s portfolio structure is designed to support steady cash flows, and Nareit notes that gaming REITs have posted positive trailing four-quarter NOI growth since the pandemic, rising 5.2% as of 2026 Q1.
The sector has also seen higher cash flow measures over time, with funds from operations edging up to $3.7 billion in 2024 and $3.9 billion in 2025. Nareit reports that 2026 Q1 marked a record high in quarterly FFO, reaching $1.2 billion.
Despite the improving FFO and NOI, performance in 2026 has been softer. Nareit says gaming REITs had a -1.2% total return through July 31 in 2026, while the dividend yield stood at 6.98%. The sector had an aggregate equity market capitalization of $40.7 billion as of July 31, and its compound average annual total return since inception is 0.8%.
Nareit also highlights risk and positioning details, including a leverage ratio of 38%, slightly above the equity REIT average of 35%. The gaming REIT sector remains geographically concentrated, with Nevada, Mississippi, Louisiana and Missouri together accounting for 48% of REIT-owned gaming properties, and Nareit’s actively managed fund tracker showing the sector is relatively underweighted in active funds, at 45% of index weight as of 2026 Q1.