Shares of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) traded sideways for a lot of the third quarter, however that proved to be a wonderful time wherein to purchase the inventory. Knowledge verify some skilled buyers did simply that.

Gaming and Leisure Properties, the proprietor of a number of Ameristar casinos, is attracting hedge fund buyers. (Picture: St. Louis Put up-Dispatch)

GLP, the proprietor of 43 casinos in 17 states, is up 8.59 % because the begin of the present quarter, placing the inventory 300 foundation factors forward of the S&P 500 for that interval whereas confirming that professionals that stepped into the actual property funding belief (REIT) a number of months made clever bets.

At Q3’s finish, a complete of 31 of the hedge funds had been bullish on this inventory, a change of 15 % from the second quarter of 2019,” in response to hedge fund knowledge supplier Insider Monkey.

Hedge fund curiosity within the REIT that owns the Tropicana in Atlantic Metropolis, N.J. and 5 casinos in Louisiana had been flat because the finish of final 12 months previous to the uptick within the July by way of September interval.

Amongst hedge funds homeowners of Gaming and Leisure fairness, Renaissance Applied sciences held the most important place on the finish of September, an funding valued at practically $282 million.

Attracted By Earnings

At a time when the dividend yield on the S&P 500 is simply 1.81 % and 10-year Treasuries are barely greater at 1.84 %, buyers’ affinity for REITs is pronounced. GLP yields 6.38 %, or nearly 400 foundation factors greater than the Dow Jones U.S. Actual Property Index.

Final month, the Pennsylvania-based firm introduced a modest dividend improve, its sixth since being spun out from Penn Nationwide Gaming (NASDAQ: PENN) in 2013. That gaming firm is GLP’s largest tenant.

Gaming equities, operators and REITs, are favorites of the hedge fund group, however a few of these automobiles maintain shares for the long-term whereas others have shorter funding horizons.

On the second spot was Gates Capital Administration which amassed $117.9 million value of shares,” notes Insider Monkey. “Citadel Funding Group, Cardinal Capital, and Echo Road Capital Administration had been additionally very keen on the inventory, turning into one of many largest hedge fund holders of the corporate.”

Strong earnings estimates may very well be an indication that third-quarter patrons of GLP shares could wish to follow the identify into subsequent 12 months. Wall Road is anticipating the REIT’s 2019 earnings per share to leap 8.2 % to $3.44 and income to climb 9.2 % to $1.15 billion.

Beating The Competitors

The rise in hedge fund possession of Gaming and Leisure within the September quarter is notable for one more motive: it was accrued as a few of these funds departed Vici Properties Inc. (NYSE:VICI). The truth is, hedge fund curiosity within the REIT that owns Caesars Palace plunged by 37 % within the prior quarter.

12 months-to-date, Vici is the best-performing gaming REIT with a acquire of 32.80 %, besting GLP by about one %. Each shares have greater than doubled the returns supplied by rival MGM Progress Properties (NYSE:MGP), which is up simply 13.59 % this 12 months.

Among the many hedge funds that allocate that largest weights of their portfolios to GLP, Covalent Capital Companions takes the {top} spot at 12.57 %. Covalent describes itself as an “event-driven worth” investor.


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