Jonathan Liit, Land & Building Investment Management (L & B) investor based in Connecticut, has been vocal in advocating for change in real estate companies for years. Currently, he is focusing on Gaming and Leisure Properties Inc. (NASDAQ: GLPI) and Vici Properties (NYSE” VICI). Litt wants the two to consider a deal or even a merger.
According to the Wall Street Journal, Liit has been speaking with Gaming and Leisure executives about a possible merger between the two companies. On Wednesday, Liit posted on Twitter that L & B has a significant investment in GLP and that the company has a strong position.
Recently, GLP has become an attractive hedge fund among investors, and it has been rumored that L & B has been buying stock in the gaming investment company right from the start of 2019. However, by the Q3 of this financial year, L & B has not been among the top investors in GLP.
MGM Growth Properties, Vici, and GLP are the only gaming real estate investment trusts (REITs). If the merger of GLP and Vici become successful, it would create the industry mover.
Penn National Gaming established GLP as the first REIT. Currently, GLP owns 46 properties in 16 states. Some of its properties include Tropicana in Atlantic City and five casinos in Louisiana. Eldorado and Penn National are GLP’s largest tenants. On the other hand, Vici was born as a spin-off from Caesars Entertainment in 2017 when the company wanted to raise cash to evade bankruptcy. The company is based in New York and is rapidly adding properties in other states, which include Missouri, Ohio, and West Virginia.
According to Casino.org, Vici’s other real assets include Caesars Palace on Las Vegas, Caesars casino on Atlantic City Boardwalk, Harrah’s properties, among others. Its main tenants are Century and Caesars. Based on the current market, capitalization, GLP, and Vici have $20.70 billion worth of capital. According to Liit, a merger between the two will result in a growth of about 20 to 25 percent and will reduce the market concentration of both companies.