GLPI - Gaming and Leisure Properties: Outstanding Business Metrics Within A Unique Sector
2024-05-21 12:17:15 ET
Summary
- Gaming and Leisure Properties operates in the gaming properties sector, offering unique value drivers compared to other triple net lease REITs.
- It operated at a 100% occupancy rate since inception due to limited supply and regulations limiting tenants' movement, as well as strong triple net leases with favorable terms.
- GLPI remains immune to major secular trends and offers the potential for double-digit total returns through dividends, multiple appreciation, and further growth.
Investment thesis
Gaming and Leisure Properties, Inc. ( GLPI ) operates within a gaming properties sector that offers unique value drivers compared to other triple net lease REITs. To name a few of them:
- Mission-criticality of assets that often come with a brand value in itself.
- High occupancy rates are derived from a low supply of suitable properties and regulations limiting tenants' ability to move.
- Strong, triple net leases with outstanding terms and favorable lease escalators.
- Immunity to some major secular trends (incl. the "Amazon effect" or advancing digitization).