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Gaming REITs show steady FFO and NOI growth but lag returns
Gaming REITs reported record quarterly FFO of $1.2 billion in 2026 Q1, while the sector total return was -1.2% through July 31 and the dividend yield stood at 6.98%.
Nareit says gaming REITs, which buy real estate such as casinos, resorts, hotels, and leisure venues leased to operators under long-term triple-net contracts, have continued to improve operating metrics. The sector has an aggregate equity market capitalization of $40.7 billion as of July 31, and gaming REITs have shown compound average annual total return of 0.8% since inception.
In 2026, Nareit reports gaming REITs had a total return of -1.2% through July 31 alongside a 6.98% dividend yield. Full-year dividends paid over recent years have been modestly increasing, with 2026 trailing-year dividend payments totaling $2.8 billion in Q1.
On fundamentals, Nareit reports funds from operations edged higher, reaching $3.7 billion in 2024 and $3.9 billion in 2025. The firm also notes that 2026 Q1 marked a record high quarterly FFO at $1.2 billion, and trailing four-quarter net operating income growth rose 5.2% as of 2026 Q1.
Nareit adds that gaming REITs are more geographically concentrated than other REIT property sectors, with Nevada, Mississippi, Louisiana, and Missouri accounting for 48% of REIT-owned gaming properties, and Nevada alone representing 21%. The sector’s leverage ratio is 38, just above the equity REIT average of 35, and Nareit data indicate gaming is one of the most underweight sectors in actively managed funds, with a 45% share of index weight.