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

Key points about potential real estate transactions:

• Gaming REITs show interest in Las Vegas assets but face execution challenges
• The Strat, located near the Las Vegas Strip, represents the most valuable property in Golden's portfolio
• Golden owns real estate for eight casino hotels: three in Las Vegas, three in Pahrump, and two in Laughlin
• The company has demonstrated commitment to shareholder value through previous strategic moves, including:
  • Sale of distributed gaming operations in 2023
  • Share buybacks
  • Introduction of quarterly dividends

Santarelli suggests Golden's current structure needs adjustment, citing:

• Limited portfolio growth
• Decreasing public float
• High corporate expenses relative to EBITDA

The company might consider selling the currently closed Colorado Belle in Laughlin, though no official sale announcement has been made. More details about potential asset sales may emerge during Golden's upcoming fourth-quarter results presentation.

The company's willingness to consider strategic moves, combined with its smaller float and perceived strategic alternatives, could make its capital-return strategy particularly effective compared to industry peers.

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