Land & Buildings Takes Stakes in On line casino Shares Boyd, MGP
Posted on: Could 18, 2021, 07:26h.
Final up to date on: Could 18, 2021, 11:20h.
Land & Buildings Funding Administration, LLC (L&B) was busy with on line casino equities within the first quarter, including new positions in Boyd Gaming (NYSE:BYD) and MGM Development Properties (NYSE:MGP).
Jonathan Litt’s agency is taken into account an activist investor with a knack for specializing in actual property belongings. Boyd and MGP are two of 4 stakes added by the cash supervisor within the first three months of the yr, and the one two gaming names amongst that quartet. L&B liquidated a stake in Caesars Leisure (NASDAQ:CZR) — one in all three names it dropped within the January by way of March interval.
L&B purchased 341,787 shares of regional on line casino operator Boyd within the quarter, valued at $20.15 million on the finish of March, based on a Kind 13F submitting with the Securities and Alternate Fee (SEC). The activist investor additionally bought 344,771 shares of MGP, price $11.24 million as of March 31.
Boyd is off 7.82 p.c over the previous month. However there’s a great opportunity L&B is within the inexperienced on that place, because the shares are increased right now than they had been at any level in January, February, and the primary half of March.
Some analysts just like the operator as a result of it performs on renewed client confidence, growing ranges of coronavirus vaccinations, and power in key demographics, resembling these 55-years-old and up and Las Vegas locals.
Future Plans Unsure for Litt and Boyd
Boyd runs 28 gaming venues throughout 10 states, together with 11 in Nevada. The corporate owns practically the entire actual property on which its casinos reside.
It’s not instantly clear if L&B is planning to push Boyd to monetize its property belongings. Such a declaration isn’t made in 13F filings. Nevertheless, that’s the kind of situation Litt is well-versed in. He took a stake in MGM Resorts Worldwide (NYSE:MGM) in 2015 and pushed the on line casino big to the spin-off of MGP. L&B maintains a portion of MGM Resorts.
His plans for the on line casino actual property funding belief (REIT) aren’t public data at this level, both. Final week, the corporate purchased MGM Springfield from its former father or mother for $400 million.
By shopping for MGP shares within the first quarter, not solely is Litt’s agency sitting on a noticeable achieve, however it was within the inventory earlier than the MGM Springfield deal was introduced, and that’s a plus as a result of the REIT mentioned the transaction will add to adjusted funds from operations (AFFO) per share.
Gaming REITs and VICI Properties
Whereas L&B added MGP to its roster within the first quarter, it pared its place in one other gaming REIT, taking its stake in VICI Properties (NYSE:VICI) to 776,537 shares from round 1.01 million.
Final yr, Litt pushed Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) — the opposite publicly traded gaming REIT — to merge with VICI. That deal didn’t come to fruition, and L&B in the end liquidated its place in GLPI.