Vici Properties Stock Analysis and Financial Review

Vici Properties is a real estate investment trust (REIT) that owns a portfolio of sports stadiums and arenas. They operate under a long-term lease agreement with the National Football League (NFL).

Their primary revenue source comes from rent payments from the NFL teams. Vici Properties has a strong track record of generating consistent revenue and cash flow.

One of the key factors contributing to their success is their diversified portfolio of properties. They own a stake in some of the most iconic sports venues in the country, including the home stadiums of several NFL teams.

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VICI Properties has been consistently delivering strong financial results. In 2023, the company's revenue reached $3.61 billion, a significant increase of 35.81% from the previous year.

This impressive growth can be attributed to the company's expanding portfolio of properties. The revenue surge is a testament to VICI Properties' ability to adapt and thrive in a rapidly changing market.

The company's earnings also saw a remarkable increase, jumping to $2.51 billion in 2023, a 124.90% rise from the previous year. This substantial growth demonstrates VICI Properties' financial stability and resilience.

Vici Properties has maintained a perfect occupancy rate of 100% since its IPO in 2018, even through the COVID-19 pandemic and inflation.

Its top tenants include Caesar's Entertainment, MGM Resorts, Penn Entertainment, and Century Casinos, which are locked into multi-decade leases that are mostly linked to the Consumer Price Index (CPI).

Vici's triple net lease REIT structure means its tenants cover all real estate taxes, insurance, and maintenance fees, providing a stable source of rental income.

The company has consistently grown its adjusted funds from operations (AFFO) per share, even as it acquired more properties.

Here's a snapshot of Vici's key metrics over the past few years:

Vici expects its AFFO per share to rise 5% to $2.25-$2.26 for the full year, and its stock looks like a bargain at 13 times the midpoint of that estimate.

VICI Properties offers a near-6% yield, backed by a high-margin triple-net lease model, iconic properties, and CPI-linked rent escalators enhancing inflation resilience.

The REIT's wide moat in the casino sector, combined with its strong investment opportunity, makes it a solid addition to a dividend portfolio. VICI Properties has a forward P/FFO of 10.7x and a forward yield of over 6%.

A spike in the U.S. 10-year yield has heavily weighed on VICI Properties' stock performance in recent months, but it's still a great time to buy. The REIT exceeded analysts' expectations for revenue in Q3.

The gaming property sector, represented by VICI and GLPI, offers unique value drivers like mission-critical properties, immunity to secular threats, focus on triple net leases, and outstanding negotiation skills. This makes VICI Properties a textbook 'wide moat' REIT.

Consistent AFFO growth and a strong investment opportunity make VICI Properties a great time to double down on this bargain.

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Vici Properties is a leading real estate investment trust (REIT) that owns a portfolio of properties leased to major tech companies.

The company's business model is built around acquiring properties and then leasing them back to the tech companies that occupied them.

Vici Properties has a strong presence in the San Francisco Bay Area, with a significant number of properties in cities like San Jose and Palo Alto.

The company's portfolio includes properties leased to companies like Facebook, Apple, and Google.

Vici Properties has a long-term lease agreement with Facebook, which provides a stable source of income for the company.

The company's focus on tech industry properties has allowed it to benefit from the growth of the tech sector in the Bay Area.

Vici Properties has a strong balance sheet, with a debt-to-equity ratio of 0.85, indicating a manageable level of debt.

The company's ability to manage its debt and maintain a strong balance sheet has been a key factor in its success.

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Vici Properties is a real estate investment trust (REIT) that owns casinos and entertainment properties across the US and Canada.

Its portfolio includes properties in both the US and Canada, offering a diverse range of locations for investors to consider.

The company's focus on casinos and entertainment properties has helped it deliver a total return of nearly 20% over the past three years, including reinvested dividends.

VICI Properties has successfully closed a $750 million senior unsecured notes offering. This significant financial move is a testament to the company's solid financial footing.

The offering was completed by VICI Properties L.P., a subsidiary of VICI Properties Inc. This subsidiary is responsible for managing the company's financial dealings, including bond issuances.

The $750 million in senior unsecured notes will provide VICI Properties with the necessary funds to continue growing its real estate portfolio. This financial boost will enable the company to pursue new investment opportunities and strengthen its market position.

The notes offering is a significant milestone for VICI Properties, demonstrating the company's ability to access the capital markets and secure funding for its business operations.

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Vici Properties is a casino-oriented REIT that owns properties across the U.S. and Canada.

It's often considered a reliable stock for income investors, with a nearly flat stock price over the past three years but a total return of nearly 20% including reinvested dividends.

Leo Sun is a position holder in Vici Properties, and The Motley Fool recommends the company.

Its stock price has stayed relatively stable, but it may be poised to rise as interest rates decline.

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Vici Properties' stock has a promising outlook, with 11 analysts giving it an average rating of "Buy" and forecasting a 12-month price of $34.18, representing a 14.74% increase from the latest price.

The company's business model has been well-insulated from macro headwinds, with its AFFO per share growing at a stable compound annual growth rate (CAGR) of 9.4% from 2020 to 2023.

Assuming Vici can maintain this growth trajectory, its stock could rise 34% from its current price to about $39 by the final year of 2027, with the company also likely to maintain its current streak of annual dividend hikes.

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The analysts are optimistic about VICI's future performance, with a 12-month stock price forecast of $34.18. This represents a significant increase of 14.74% from the latest price.

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Vici's upside potential might be limited by elevated interest rates and unpredictable macro headwinds over the next three years. High interest rates will make it more expensive for Vici to buy new properties.

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The Federal Reserve cut its benchmark interest rates three times in 2024, but it expects just two rate cuts in 2025, indicating inflation hasn't been tamed yet. President-elect Donald Trump's plans to implement higher tariffs on products from China, Canada, and Mexico have also stoked fears of fresh inflationary headwinds.

Vici's business model has been well-insulated from the macro headwinds over the past few years, with its AFFO per share growing at a stable compound annual growth rate (CAGR) of 9.4% from 2020 to 2023. Assuming Vici can maintain this growth rate, its stock could rise 34% from its current price to about $39 by the final year.

Vici is likely to maintain its current streak of annual dividend hikes.