Direct Answer
110 SEC filers are classified under the Standard Industrial Classification code that describes the gaming reits industry, and their latest annual reports show $180.6 billion of combined revenue and a median operating margin of 20.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Gaming REITs own casino and resort properties and lease them to operators under long triple-net leases with rent escalators. Rent is the key revenue line, and the credit of the operator tenants matters most. The first numbers to compare across companies here are rent coverage ratios, adjusted funds from operations per share and lease term remaining.
Key Industry Metrics
- Rent coverage ratios: Operator property earnings divided by the rent owed. A comfortable ratio shows the tenant can pay rent with room to spare, and a falling ratio warns of distress.
- Adjusted funds from operations per share: Cash earnings after recurring adjustments, divided by shares. It is the headline measure for dividend capacity in net-leased portfolios.
- Lease term remaining: The average years left on leases. Long terms give predictable income, and shortening terms bring renewal risk and negotiation.
- Tenant concentration: The share of rent coming from a few operators. High concentration means one operator's trouble can affect most income.
- Acquisitions: Properties bought, often through sale-leasebacks. Growth depends on the price paid relative to the cost of capital and the quality of the new tenant.
Primary Macro Drivers
- Casino operator performance: Rent is tied to long leases but supported by operators' earnings, so rent coverage shows how well casinos are performing against rent.
- Interest rates and cost of capital: Rates affect borrowing cost and how profitably the REIT can buy properties, shown in acquisition spreads and AFFO.
- Rent escalators: Contracts raise rent over time, so escalators lift AFFO per share steadily, shown in lease terms.
- Sale-leaseback acquisitions: Operators sell properties and lease them back, giving the REIT new rent, shown in acquisitions and tenant concentration.
Major Risks
- Tenant concentration: A few operators supply most rent, so trouble at one hits income, shown in tenant concentration and rent coverage.
- Operator financial distress: If an operator's earnings fall, rent coverage thins and payments may be at risk, so watch coverage ratios and operator leverage.
- Regulatory changes in gaming: Licensing changes or new taxes could affect operators' earnings, so read regulatory notes and rent coverage.
- Interest rates: Higher rates raise financing cost and lower valuation, shown in AFFO per share and the spread on acquisitions.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Mixed |
| Capital Intensity | High |
| Regulatory Intensity | High |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Gaming REITs Filers in the SEC Record
110 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6798. Their latest fiscal years end between 2022 and 2026, and together they reported $180.6 billion of revenue. Median revenue growth over the prior year was 2.9%. Median operating margin was 20.0% and median net margin 10.0%. Median total liabilities were 54% of total assets, and 77 of 110 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Welltower Inc. | $10.8 billion | 35.6% | n/a | 8.6% | FY 2025 |
| American Tower Corp | $10.6 billion | 5.1% | 45.5% | 24.7% | FY 2025 |
| Equinix Inc | $9.2 billion | 5.4% | 20.0% | 14.6% | FY 2025 |
| Prologis, Inc. | $8.8 billion | 7.2% | 49.6% | 37.9% | FY 2025 |
| Weyerhaeuser Co | $6.9 billion | -3.1% | 10.6% | 4.7% | FY 2025 |
| Iron Mountain Inc | $6.9 billion | 12.2% | 16.9% | 2.2% | FY 2025 |
| Simon Property Group Inc. | $6.4 billion | 6.7% | 49.9% | 84.3% | FY 2025 |
| Host Hotels & Resorts, Inc. | $6.1 billion | 7.6% | 14.0% | 12.5% | FY 2025 |
The 8 largest of 110 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Gaming REITs guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Gaming REITs industry?
Key performance indicators for the Gaming REITs industry include: Rent coverage ratios, Adjusted funds from operations per share, Lease term remaining, Tenant concentration, Acquisitions. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Gaming REITs industry?
The Gaming REITs industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.
What are the biggest risks in the Gaming REITs industry?
The primary risks for Gaming REITs companies include: Tenant concentration, Operator financial distress, Regulatory changes in gaming, Interest rates. Investors should assess each company's exposure to these factors and its track record of navigating them.