If the price is right, Gaming & Leisure Properties (NASDAQ: GLPI) may think about selling the Tropicana Las Vegas casino hotel. That is, if the purchasers are dedicated to optimizing the property's worth.

Barry Jonas, an analyst with Truist Securities, expressed this opinion after meeting with Senior Vice President Matthew Demchyk and GLPI Chairman and CEO Peter Carlino. Although the CEOs were vague, Jonas pointed out that the real estate investment trust (REIT) might someday consider selling the Tropicana site. It is anticipated that when the Oakland Athletics relocate to Las Vegas, that location would house a brand-new Major League Baseball (MLB) stadium.

The analyst also mentioned that, although Bally's permanent Chicago casino is still a few years away from opening, GLPI is open to the possibility of purchasing its real estate. If the sale were to go through, it would probably produce one of the most expensive properties in the GLPI portfolio.

"We sensed management was open to potentially participating in Bally’s permanent Chicago property, though GLPI hasn’t made any commitments and would require favorable safety and economics to potentially engage in any deal,” wrote Jonas in a note to clients.

The analyst also mentioned that the REIT is still interested in buying Bally's real estate in Lincoln, Rhode Island, on which it has a call option. But the creditors of the casino operator would have to approve that deal.

GLPI May Take Into Account Tribal Deals and Las Vegas

At the moment, GLPI only has two properties in the Las Vegas region: the M Resort near Henderson and the Tropicana on the Strip. 

The executive team also informed Jonas that there could be a large opportunity in tribal gaming real estate, but they did not make it clear whether they were referring to gaming establishments situated on tribal territory or commercial casinos run by tribes. Real estate buyers may encounter certain challenges with the latter.

"Management observed that tribal properties represented a substantial unexplored market, but securing investments would necessitate a framework," stated Jonas. "Management stated that, in addition to the real estate features, its interest in pursuing a Las Vegas Strip asset would depend on the quality of potential tenants and lease fundamentals."

GLPI Has A Robust Dealing Network

Although rival VICI Properties (NYSE: VICI) has been more acquisitive recently than the REIT, GLPI has a strong pipeline of possible acquisitions, some of which may come to pass in the upcoming months.

According to management, talks with casino operators have progressed over the last six to twelve months, resulting in a lengthy list of potential acquisitions for the REIT, Jonas continued.

"We believe that balance sheet flexibility will prove to be highly advantageous in addition to the potential for an improving rate environment, and we are positive about GLPI's increasingly visible deal pipeline," the analyst added. "We reiterate buy and continue to preach about the relative safety of gaming REITs and GLPI."