Golden Entertainment's potential real estate sale could significantly boost its stock value in 2025, according to Deutsche Bank analyst Carlo Santarelli. The casino operator's shares could reach $40 if the company monetizes its property assets, up from its current trading price of around $32.

Key Points:

• Current stock price: ~$32
• Deutsche Bank price target: $36
• Potential value after real estate sale: $40
• Market capitalization: $861.27 million

Property Portfolio:

• 8 casino hotels total
• 3 in Las Vegas
• 3 in Pahrump, Nevada
• 2 in Laughlin
• The Strat (near Las Vegas Strip) is the most valuable asset

Recent Value-Creating Moves:

• 2023 sale of distributed gaming operations
• Implementation of share buybacks
• Introduction of quarterly dividend

Santarelli suggests that Golden Entertainment might consider strategic alternatives in 2025, citing:

• Lack of portfolio growth
• Shrinking public float
• High corporate expenses relative to EBITDA

Gaming REITs have shown interest in Las Vegas assets, though deal execution remains challenging in the current market. The company owns all its casino hotel real estate, presenting significant opportunities for potential sale-leaseback arrangements.

The company may provide more details about potential asset sales during its upcoming fourth-quarter earnings report, with The Strat likely being the most attractive property to potential buyers. Additionally, speculation continues about the future of the currently shuttered Colorado Belle in Laughlin.

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