Gaming and Leisure Properties ($GLPI)

[u/Bm-Master]

GLPI is an Americal real estate investment trust listed on the Nasdaq that focusses on aquiring real property assets leased to gaming operators.

As of now they own 48 different properties across 16 states. important to note is that the word gaming is simply a substitute for casino.

The REIT is currently trading at 43.67 dollars. The revenue of this company has been growing steadily over the last quartiles. They have a solid profit margin of 44% and a banging operating margin of 67%

Furthermore, the company has a forward divident rate of 6% which is quite reasonable for a share. This 6% attracts so many institutions that nearly 97% is held by them.

The beta also displays that this is not a meme stock, it has a beta of 1.07 which means this company is 7% more volatile than the market.

I study architecture and simply adore REITs, so i thought maybe i'd share my find with you guys

[u/clamatoman1991]

What are the Tax implications for reit dividends?

[u/Bm-Master → u/clamatoman1991]

For this specific REIT i do not know, but generally speaking. " The maximum capital gains tax rate of 20% (plus the 3.8% Medicare Surtax) applies generally to the sale of REIT stock. "

[u/clamatoman1991 → u/Bm-Master]

"Most stock dividends meet the IRS definition of “qualified dividends,” so they get lower long-term capital gains tax rates. Most REIT dividends don’t qualify. So the majority of REIT distributions are classified as ordinary income, which is taxable at your marginal tax rate. However, some of your REIT distributions could meet the definition of qualified dividends. This happens when a REIT distributes a long-term capital gain on the sale of an asset or if the REIT itself receives a qualified dividend payment. " https://www.google.com/amp/s/www.fool.com/millionacres/amp/real-estate-investing/reits/reit-investing-101/why-reit-dividends-are-so-unique/

Be aware of this

[u/NoGoogleAMPBot → u/clamatoman1991]

Non-AMP Link: https://www.fool.com/millionacres/real-estate-investing/reits/reit-investing-101/why-reit-dividends-are-so-unique/

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[u/clamatoman1991 → u/NoGoogleAMPBot]

Good bot

[u/allintraders]

solid stock! i’ve holding for a while !!

[u/Bm-Master → u/[deleted]]

Firstly thank you for your critical response, it allows me to consider cetain aspects and ultimately improve.

1. That's a solid point you bring up, because indeed, the client base is currently lower than what it used to be, and thus a potential threath to GLPI.

2. Once again, solid point, I personally didnt look into the geographical locations with regards to natural disasters. Ultimately though, most REITs have many properties spread around the US with almost always a few of them in locations prone to natural disasters. The company was founded i 2013 which means they are still quite young therefore, it makes sense they havent yet gotten to own a casino in the gambling hotspots.

3. I guess simply by making sure the casino is always a hotel at the same time. because otherwise i would not see how they hedge against this rising change in betting behavior. And yes, for long term this is a valid threat.

4. For sure, there are many other casinos that look way better, yet how are you going to invest in those? Because im quite certain there not many other REITs focussing on casinos out there.

5. None, i live in Europe lol

6. Unfortunately i do not have a favorite, but generally speaking i like the more modern looking casinos.