Truist Securities’ Barry Jonas on the Appeal of Gaming REITs to Investors

Barry Jonas, managing director at Truist Securities, joined the REIT Report to discuss the gaming REIT sector, highlighting its acceptance as an asset class that provides a safe, secure rental stream

He noted that when the sector first emerged about 10-15 years ago, “it was seen as an orphan and really misunderstood. But as time has moved on, we are really seeing buy-in from the REIT community.”

Investors understand that gaming REITs are “a very safe, durable stream of rent that has tenants who are sizable, most of them are public, audited, and have at this point not seen any major defaults or lack of payments made,” he said.

In an environment of macro uncertainty and a K-shaped economic recovery, the sector has still seen low single-digit increases in gaming revenues, Jonas said. “Consumers generally want to go have fun, let off some steam, and go to a casino,” he added.

Chapters:
00:00 Gaming REITs Resilience
00:23 Welcome to REIT Report
00:41 How Gaming REITs Work
02:08 Tenant Strength and Coverage
03:38 Where Casinos Are Located
04:59 Fundamentals and Growth Outlook
07:40 Deal Flow and Sale Leasebacks
09:16 Investor Appetite and Valuations
10:26 Online Betting Cannibalization
14:03 Future Growth Drivers