The triple net lease structure was new to the gaming industry in the last couple of years, and it hadn\u2019t been through a significant downturn,\u201d said UBS analyst Robin Farley in an interview with Barron’s<\/i>. \u201cThe pandemic has really proven that business model.\u201d<\/p><\/blockquote>\n
At the height of the coronavirus pandemic, when domestic gaming venues were shuttered, these casino REITs like MGP came under significant duress. That was amid concerns that operator tenants would struggle to meet lease obligations in a zero-revenue environment. Today, the situation is significantly brighter, particularly as it pertains to MGP, because MGM has one of the strongest balance sheets in the industry and ample cash, indicating the likelihood of it missing a rent payment is low.<\/p>\n
Other Catalysts for MGP<\/h2>\n
Beyond gaming-related issues, the current environment is conducive to owning REITs. The asset class historically performs well when interest rates are low, as is the case today.<\/p>\n
Additionally, as the Consumer Price Index (CPI), confirms, inflation is here. While market observers are debating if higher prices will be persistent or transitory, the fact remains that REITs usually rise in inflationary environments because of pricing power and rent escalators that are usually built into tenant contracts.<\/strong><\/p>\nSpecific to MGM Growth, the Luxor owner yields 5.45 percent, its dividend is steadily growing, and as MGM continues selling shares<\/a> in the REIT — something the game operator said it will do — the real estate company gains more independence and could spread its wings beyond its MGM relationship.<\/p>\n","protected":false},"excerpt":{"rendered":"Casino landlord MGM Growth Properties (NYSE:MGP) is among the travel and leisure-related stocks that are currently inexpensive. That according to this week’s Barron’s cover article, which highlights six travel equities sporting attractive valuations. MGP, the owner of the property assets of the Excalibur and the Mirage, among other Las Vegas Strip venues, is the only […]<\/p>\n","protected":false},"author":46,"featured_media":180877,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\n
Gaming REIT MGP Is Viewed as a Deal Among Travel and Leisure Stocks<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n