Gaming REITs specialize in owning and leasing properties used specifically for gaming and entertainment purposes, such as casinos and related venues. These REITs generate revenue primarily by leasing their properties to gaming operators under long-term lease agreements. Properties owned by gaming REITs include hotels, restaurants, and entertainment venues that complement the gaming experience. By focusing on this specific sector, gaming REITs offer a unique investment opportunity within the broader real estate market.
Investing in gaming REITs offers several potential benefits. The long-term leases common in this sector provide stability and predictability in income because gaming operators typically commit to maintaining their venues for the long term, stability that may appeal to investors looking for reliable income sources. In 2023, gaming REITs generated $3.5 billion in funds from operations and paid dividends of $2.5 billion.
Gaming REITs also offer growth potential through strategic acquisitions, and as the cost of debt has become more expensive over the past few years, gaming REITs have leveraged sale-leaseback arrangements to acquire assets while providing working capital to gaming operators. From December 2020 to July 2024, the sector market cap grew from $23 billion to $46 billion; and in June 2023, a standalone Gaming sector created In the FTSE Nareit US Real Estate Index Series.
As the gaming industry continues to expand, especially with the legalization of gaming in more regions, gaming REITs have opportunities to acquire new properties and enter emerging markets. 2021: Q1–2024: From Q1, gaming REITs were net acquirers of properties with approximately $14.7 billion in assets. View Nareit’s T-Tracker Contact for more information.
Below is a list of Nareit member companies in the gaming sector.
