Gaming and Leisure Properties Stock Rallies as Rivals Combine

Gaming and Leisure Properties (NASDAQ:GLPI) gillyflower is among Wednesday’s best-performing existent landed estate names after an psychoanalyst upgraded the shares and as consolidation comes to its match group.

In a tone to clients before today, UBS analyst Robyn Farley lifts her rating on the gaming existent estate investment funds trustfulness (REIT) to “buy” from “neutral” spell placing a $54 cost place on the stock. That implies upside of 17.4 percent from the Aug. 3 close.

Additionally, the resilience of regional gaming tenants and the strength of engage terms have been proven inward the in conclusion year, with GLPI out of the blue reaching the benchmark for its May 2021 escalators,” said Farley.

Her GLPI call comes a daytime after Deutsche Bank analyst Carlo Santarelli reiterated a “buy” rating on the gaming REIT with a $56 toll target. The Wall Street consensus cost forecast on GLPI stock up is $52.

GLPI Stock ‘Wildcard’ with Tropicana Las Vegas

Farley notes GLPI has a potential “wildcard” with the Tropicana Las Vegas, which could present tense the gaming REIT with a compelling redevelopment operator.

In an April transaction, Bally’s (NYSE:BALY) paid $150 zillion for the non-real land assets of the Strip locus and signed 50-year rent with GLPI precious at $10.5 one thousand thousand annually. Due to its predilection for venues inward regional markets, it was believed the REIT would finally component part with Tropicana, but that wasn’t the case. Now, it’s working with Bally’s on plans to heighten the 35-acre property.

On the company’s second-quarter earnings conference ring finally week, CEO St. Peter Carlino said there’s a possible action of more assets being added to the property, but things are stock-still up in the air.

“I don’t conceive we or regular Bally’s knows what more is correct now,” said Carlino. “Frankly, we’re workings cooperatively with them to figure come out how we can buoy maximise whatever occurs there. And I’m simply hither to say that we are considering the maximisation of every inch of that property.”

Geographic, Tenant Diversity

In increase to highlighting GLPI’s send off line and debt reduction efforts, Farley also pointed to the company’s position as unity of the to the highest degree diverse treble net engage REITs when it comes to geographic and tenant diversification.

That stance is existence enhanced past consolidation inwards the gaming REIT space. Earlier today, VICI Properties (NYSE:VICI) said it’s acquiring MGM Growth Properties (NYSE:MGP) for $17.2 one thousand million in stock. The combined companionship testament depend on Las Vegas for 45 percent of its rental immoral with Caesars Entertainment and MGM Resorts being its marquise tenants.

Conversely, the Tropicana is GLPI’s only when Sin City plus and its renter roster, which includes Bally’s, Caesars and Penn National Gaming, is larger than its rivals.

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