We ran an analysis based on Insider Monkey’s proprietary database to see which real estate stocks billionaire-led funds held at the end of the second quarter. We narrowed the list to names paying dividend yields above 5%. Two stood out.
VICI Properties Inc. (NYSE:VICI) came in first. A total of 22 billionaire-led funds held stakes in the company at the end of the second quarter. VICI owns casino and gaming real estate and leases the properties back to operators under triple-net agreements, which means tenants cover taxes, insurance and maintenance. It has a dividend yield of about 7%.
Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) was in about 19 billionaire-led fund portfolios as of the end of the June quarter, up from 16 in the first quarter. The stock has a dividend yield of about 7.5%. In this article, we will focus on Gaming and Leisure Properties, Inc..
Gaming and Leisure Properties, Inc. is a REIT focusing on casino properties. In the most recent quarter, its revenue rose about 9% year over year and beat estimates. Management raised its full-year fiscal 2026 outlook for adjusted funds from operations.
Photo by Breno Assis on Unsplash
The Bull Case
Bulls argue that GLPI fundamentals are strong and yet it’s down 12% over the past year. The second quarter beat estimates on both revenue and funds from operations, and management raised its full-year outlook. The balance sheet is in good shape. So what impacted the stock? Interest rates staying higher for longer pushes investors to demand better returns from every REIT, and that drags valuations down across the sector regardless of how individual companies perform.
Valuation
The stock trades at about 13.5 times forward earnings against a real estate sector median near 30, and enterprise value to EBITDA sits at roughly 12.6 versus 16.9 for the sector. Price to cash flow is also below the sector.
Risks
Tenant concentration is the main risk. PENN Entertainment and Bally’s cover a major chunk of the company’s rental income stream. If either one runs into trouble, GLPI feels it right away.
Other risks include the spread of online gaming, which management says has slowed brick-and-mortar growth in states like Pennsylvania without hurting rent so far, and a dispute over video gaming terminals in Chicago that may impact Bally’s, its major tenant. Chicago is approving video gaming terminals in bars and restaurants across the city, which lets people play slot machines without walking into a casino and takes away the exclusivity the project was built around. Bally’s has slowed construction on the hotel and event center next to the casino, and its Chicago unit warned in August that it may not be able to keep operating because of its losses and debt.
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