Casino REITs: The House Always Wins

July 16, 2020 | Hoya Capital

Casino REITs: The House Always Wins REIT Rankings Sector Jul 16 Written By Ready to roll the dice? Casino REITs aren't the gamble that may appear on the surface. Despite the ongoing coronavirus pandemic, casino REITs have actually outperformed the broader REIT sector. Double down: Casino REITs have nearly doubled from their lows in late March when the sector was off by as much as 60% amid fears of significant operator distress.

Despite the temporary closure of many gaming properties across the country, rent collection has been spotless since the start of the pandemic and dividends have been essentially untouched. Critically, casino REITs operate under a long-term, triple-net lease structure, leaving most of the financial and operational risk - both on the upside and the downside - to their tenants. Risks remain, however, as these long-term leases are only as safe as the tenant's ability to pay.

The pandemic has stretched some major operators to the brink. To continue reading, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Stimulus Rally | Casino Merger | School In Session? Next Next Vaccine Hope | DéJà Vu | Housing Stays Hot