Gaming REITs an attractive space with M&A boom, Vegas demand - Berenberg

Bally's

11/04/2022 18:24

** Berenberg views several upcoming events such as the NFL
Draft convention and F1 race in 2023 as positive catalysts for
net-lease and gaming REITs operating in the Las Vegas strip
    ** Broker says M&A activity in the industry last year, along
with strong demand in commercial activity in Vegas, should
create further potential earning opportunity in the gaming REITs
sector 
    ** M&A activity last year included Bally's Corp's  BALY.N 
purchase of Tropicana Las Vegas, Nevada casino from Gaming and
Leisure Properties Inc  GLPI.O , and VICI Properties purchase of
MGM Resort-controlled MGM Growth  MGP.N   urn:newsml:reuters.com:*:nL4N2PB2PT
    ** Based on these updates, Berenberg believes gaming REITs
require a higher valuation to reflect their current assets
    ** "The discount for the gaming REITs relative to the net
lease space should narrow over time given the strong cash flows
and resiliency associated with gaming assets," says Berenberg 
    ** S&P 500 real estate index  .SPLRCR  down 5.4% YTD vs ~7%
loss on the S&P 500 index  .SPX 

 

    
    


 (Reporting by Raechel Thankam Job)
 ((RaechelThankam.Job@thomsonreuters.com;))