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Gaming REITs win more investor buy-in amid economic uncertainty
A Nareit executive said gaming REIT tenants are largely public and audited, and the sector has not seen major defaults or missed rent payments.
Truist Securities’ Barry Jonas said gaming real estate investment trusts are gaining greater acceptance from the broader REIT investment community, noting the sector was once viewed as misunderstood when it emerged roughly 10 to 15 years ago.
In an interview, Jonas characterized gaming REIT income as a “safe, durable” rent stream, pointing to tenants that are mostly public and audited and saying the sector has not experienced major defaults or lack of payments.
He also linked the sector’s appeal to current conditions, saying that despite macro uncertainty and a K-shaped recovery, gaming REITs have still seen low single-digit increases in gaming revenues.
Jonas added that consumer demand tends to persist because people generally want to go out for entertainment, including visiting casinos, which supports the sector’s rent durability.