A high-yield gaming REIT with strong fundamentals is down almost 11% from its 52-week high.

Gaming and Leisure Properties, Inc. ($GLPI) is a company I've been interested in for some time. However, shares rallied earlier this year, and the stock didn't look like an attractive entry point. Now, though, this REIT is experiencing a major sell-off due to Wall Street's fears about interest rate hikes.

With shares down more than 6% over the past trading week, my interest has been reignited.

Here's what Gaming and Leisure Properties does, and why it could be an interesting high-yield investment.

Gaming and Leisure Properties is the most geographically diversified owner of gaming assets in the United States. It's a real estate investment trust that owns 71 casinos and gaming properties across 21 states. Most of these casinos are located outside Las Vegas, serving less-saturated markets such as Illinois, Colorado, Rhode Island, and Maine.

According to the company's 2026 investor presentation, "relative to the Las Vegas Strip, GLPI's regional markets have proven more profitable and stable during a major downturn." The presentation also highlights another advantage of geographic diversification: greater protection from state regulatory changes and increased competition.

The company has also maintained 100% occupancy since inception, and no tenant has ever defaulted on rent.

Gaming and Leisure Properties has never received much attention from Wall Street.

Historically, it's a company that trades at a low valuation while offering a high starting yield. At the time of writing, the firm has a price to funds from operations ratio of 10.85 and a starting yield of 7.36%. The dividend is well protected, for a REIT, with a payout ratio of 77.80%. While Gaming and Leisure Properties' five-year compound annual dividend growth rate of 4.63% isn't super impressive, it's partially offset by the high initial yield.

Despite its recent sell-off and being down year to date, Gaming and Leisure Properties has still delivered a decent 10-year average annual total return of 9.35%.

This isn't a market-beater, but it's primarily an income investment, and also a stock that's currently out of favor. If interest rates rise, which seems increasingly likely, REITs and utilities could see their prices fall further. Institutional investors would rather own "risk-free" bonds and Treasury bills yielding 6% than hold "risky" equities, even if those equities yield slightly more.

While I understand that sentiment, REITs like Gaming and Leisure Properties increase their dividends annually, while bonds and T-bills do not.

If interest rates rise, Gaming and Leisure Properties will probably fall further. However, I'm comfortable buying now for the 7% starting yield. Eventually, rates will decline or investors will adjust, and the stock will recover.

That's not wishful thinking, either. During the post-COVID zero-interest-rate era, Realty Income climbed from around $60 per share to a premium valuation above $70. Once rates increased, the stock dropped into the low-$50 range, only to gradually rebound above $60.

Gaming and Leisure Properties is unlikely to ever be a market-beater, but I plan to buy it for its income-generating potential. A 7%+ starting yield from a cheap stock operating within a unique niche is hard to pass up.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.