Don’t call it a comeback (been here for years)
According to brokerage CBRE’s latest industry activity report with data through 4Q2025, annual net lease investment volume increased 16% year-over-year while 4Q represented a 13% uptick versus the prior year quarter.
As a portion of total commercial real estate trades, net lease remains stable around 10%. Check out the full report here: Q4_2025_U.S._Net_Lease_CBRE Report
It’s not gambling if you always win
Bally’s Corporation (NYSE: BALY) announced completion of the previously announced sale/leaseback of the Twin River Lincoln Casino Resort with Gaming and Leisure Properties (NASDAQ: GLPI) for $700 million.
Priced at an 8.0% cap rate, the originally disclosed GLPI purchase option noted a $735 million price tag. The property was added to an existing master lease with a 2039 expiration and annual escalators between 1-2%. The 4-wall EBITDAR-to-rent coverage ratio is ‘over 1.9x’ with the property generating $490 million in GGR (gross gaming revenue) in 2025.
Located in Lincoln, Rhode Island, the facility features a 165,000 sq. ft. casino with 3,900 slots and 118 table games, 136 rooms and suites, a convention center, a sportsbook, a spa, and multiple F&B and entertainment venues on 190 acres. In 2021, the property embarked on a $100 million expansion and improvement program.
Source: Company filings
The two parties deep existing relationship also includes GLPI funding the Bally’s Chicago development with a commitment of $940 million on top of the $250 million land purchase. The gaming REIT releases 4Q and full year 2025 earnings after market close on Thursday, 2/19, and will hold a conference call at 10am ET the next day.
New year, same flows
Equity capital sales remain robust for the big four net lease-focused non-traded REIT with the first two months of 2026 each posting over $300 million in aggregate.
Assuming even modest leverage, these entities represent significant purchasing power and demand for single tenant net lease assets - particularly sale/leaseback deals.
Call me the breeze
After completion of a strategic alternatives review, Darden Restaurants (NYSE: DRI) announced it will shutter the Bahama Breeze brand and its 28 locations. According to the company, 14 restaurants will permanently close while the remaining 14 will convert to other Darden concepts.
The result is likely not a surprise to those that follow Darden as from November 2024 to November 2025 the company reduced its Bahama Breeze restaurants from 43 to 28.
Interestingly, Bahama Breeze restaurants operating for the entirety of FY2025 generated average revenue of $6.2 million - higher than several other successful Darden concepts like Olive Garden ($5.6 million), Longhorn Steakhouse ($5.2 million), and Ruth’s Chris Steakhouse ($5.4 million).
Refer to the earnings review below for any impact on the closure of Bahama Breeze to institutional net lease landlords.
Paint it, black
As part of its recent earnings release, Blackstone Mortgage Trust (NYSE: BXMT) disclosed its net lease joint venture (with Reliant) acquired 178 net lease properties for $421.8 million in 2025.
As discussed in the October 8, 2025 edition of the Observer Lite, BXMT holds a 75% interest in the venture. New disclosures (below) show a focus on retail sectors like early childhood education, quick service restaurants, and car washes.
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