Within the Hoya Capital Casino REIT Index, we track the three casino REITs and their respective major casino operator tenants: VICI Properties ( VICI ) - which was spun out from Caesars Entertainment ( CZR ) in 2017, Gaming and Leisure Properties ( GLPI ) - which was spun-out from Penn National Gaming ( PENN ) in 2013, and MGM Growth Properties ( MGP ) - which was spun-out from MGM Resorts ( MGM ) in 2016. One of the best-performing REIT sectors since the start of the pandemic, Casino REITs have proven to be surprisingly resilient despite the intense struggles faced by the broader leisure industry. ( Hoya Capital Real Estate, Co-Produced with Colorado Wealth Management) Casino & Gaming REIT Sector Overview Photo by Karl Weatherly/DigitalVision via Getty Images REIT Rankings: Casino & Gaming

This idea was discussed in more depth with members of my private investing community, Hoya Capital Income Builder.

With an average dividend yield above 5%, we view casino REITs as a more compelling - and perhaps 'under the radar' - alternative to other high-yielding sectors facing stiffer secular headwinds.

This 'bond-like' structure does result in elevated risks from inflation and interest rates. Casino REITs own properties under a long-term net lease structure, leaving most of the operational risk to their tenants.Fueled by spotless rent collection and accretive acquisitions, these REITs reported strong momentum in early 2021 with AFFO growth averaging nearly 9% in Q1.Caesars noted that 'weekends in Vegas are sold-out for the foreseeable future.'

Sold-Out Vegas: Earnings reports from Casino REITs and operators painted a particularly bright picture for the tourism recovery.

One of the best-performing REIT sectors since the start of the pandemic, Casino REITs have proven to be surprisingly resilient despite the intense struggles faced by the broader leisure industry.

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