• Alex Pettee, CFA

Casino REITs: The House Always Wins

Updated: Sep 10, 2020

  • 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!

Glass Buildings

Keepin' It Real 

Economics, Housing, & Commercial Real Estate Analysis

apartment REITs
homebuilders ETFs
single family rental REITs
manufactured housing REITs
student housing REITs
data center REITs
Cell tower REITs
net lease REITs
industrial REITs
storage REITs
office REITs
mall REITs
REIT Preferreds and Bonds
hotel REITs
Timber REITs
healthcare REITs
Billboard REITs
shopping center REIT
High-Yield Real Estate ETFs
Real Estate CEFs
Casino REITs
cannabis REITs
prison REITs
mortgage REITs
real estate crowdfunding
REIT Portfolio Strategy
REITs Taxes
HOMZ_Logo_Just Ticker.png
ETF express.png

Explore our Real Estate Indexes

The Easy Way To Invest in Real Estate

REIT Forum HOYA AD.png