The VICI/GLPI comp is interesting because it highlights how much valuation can diverge even when business models are nearly identical. I've noticed with casino REITs that tenant concentration worries tend to spike during broader market volatility, but the actual rent collection track record stays solid. The real edge here isn't predicting Caesars' performance quarter-to-quarter but recognizing that these assets have geographic monopolies baked in—especially Vegas properties. Triple-net leases with CPI escalators are basically inflation-protected annuites if the tenant stays solvent. One thing worth watching: if travel patterns shift permanently (more regional, less destination-heavy), GLPI's regional focus might actualy become an advantage rather than a discount to NAV.
Yep. Super long leases. And casino operators will continue to pay rent. Casino space has a high barrier to entry. High chance that rent will be paid no matter what.
The VICI/GLPI comp is interesting because it highlights how much valuation can diverge even when business models are nearly identical. I've noticed with casino REITs that tenant concentration worries tend to spike during broader market volatility, but the actual rent collection track record stays solid. The real edge here isn't predicting Caesars' performance quarter-to-quarter but recognizing that these assets have geographic monopolies baked in—especially Vegas properties. Triple-net leases with CPI escalators are basically inflation-protected annuites if the tenant stays solvent. One thing worth watching: if travel patterns shift permanently (more regional, less destination-heavy), GLPI's regional focus might actualy become an advantage rather than a discount to NAV.
Man you hit the nail on the head!
Yep. Super long leases. And casino operators will continue to pay rent. Casino space has a high barrier to entry. High chance that rent will be paid no matter what.