With a portfolio featuring iconic assets, market-leading gaming and experiential properties and a substantial scale, VICI is poised to ride the growth curve.
REITs, or real estate investment trusts, are an interest rate-sensitive industry. As rates started to cool off in early fall 2024, REITs began to rise, but with rates climbing higher again, REIT stocks have fallen.
Generating passive income is a big part of my investment strategy. My goal is to eventually make enough passive income each month to offset all my family's regular expenses.
In the closing of the recent trading day, VICI Properties Inc. (VICI) stood at $28.83, denoting a -1.44% change from the preceding trading day.
VICI Properties' stock dip has increased its yield to 6%, presenting a compelling opportunity for passive income investors at the start of 2025. The trust's unique entertainment-focused real estate portfolio, with 100% occupancy and significant EBITDA growth, is a key strength. VICI Properties' dividend payout ratio is stable, comparable to Realty Income, and offers inflation protection with CPI-linked rent increases.
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. Consistent AFFO growth and a strong balance sheet with investment-grade ratings position VICI for continued success and potential market-beating total returns. VICI's strategic presence in high-profile Las Vegas assets and disciplined growth approach make it an attractive opportunity at a forward P/FFO of 11.1.
A spike in the U.S. 10-year yield has heavily weighed on VICI Properties' stock performance in recent months. The REIT exceeded analysts' expectations for revenue in Q3. VICI Properties enjoys a BBB- credit rating from S&P on a stable outlook.
While the recent sell-off has led VICI to offer higher dividend yields, an opportunity for investors, potential policy changes and rate cut projections add risk to the stock.
Vici Properties (VICI -0.65%), a real estate investment trust (REIT) that owns casinos and entertainment properties across the U.S. and Canada, is often considered a reliable stock for income investors. Its stock price stayed nearly flat over the past three years, but it delivered a total return of nearly 20% after including its reinvested dividends.
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 negotiating position. Both REITs feature a 100% occupancy rate, outstandingly long lease terms and above-average rent escalators, setting them apart from other net lease REITs. VICI is deemed a 'strong buy' due to its higher DPS growth, trophy asset portfolio, and more attractive valuation, while GLPI is considered a 'buy'.
Real estate stocks have dramatically underperformed the S&P 500, and gaming real estate leader Vici Properties (VICI -0.64%) certainly isn't an exception. However, in this video, Fool.com contributors Matt Frankel and Tyler Crowe discuss why Vici is already in their portfolios and why it might be worth a closer look right now.
We believe VICI Properties to be undervalued, with intrinsic value estimates suggesting a 41.99% upside potential from the current share price of $31.77. Recent credit rating upgrade to investment grade by Moody's and strong Q3 results support a "Strong Buy" rating for VICI Properties. VICI's stable cash flows, high dividend yield, and strong tenant portfolio with MGM and Caesars bolster its investment appeal.