For the quarter ended June 2024, VICI Properties Inc. (VICI) reported revenue of $957 million, up 6.6% over the same period last year. EPS came in at $0.57, compared to $0.69 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $956.61 million, representing a surprise of +0.04%. The company delivered an EPS surprise of +1.79%, with the consensus EPS estimate being $0.56. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of marketleading gaming, hospitality and entertainment destinations, reported an adjusted FFO per share of 56 cents, in line with the Zacks Consensus Estimate. Factors at Play VICI has announced around $37 billion of domestic and international investments across gaming & other experiential assets since its formation in 2017. These investments are expected to have boosted the company's top and bottom lines in the s ...

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock. It is projected by analysts that the 'Revenues- Golf revenues' will reach $11.46 million. The estimate suggests a change of + ...

Core Viewpoint - VICI Properties is positioned as a strong investment opportunity within the casino gaming sector, offering a competitive dividend yield and favorable valuation metrics compared to peers in the market [2][34]. Company Overview - VICI Properties is a real estate investment trust (REIT) with a significant portfolio of gaming, hospitality, and entertainment properties, including iconic locations like Caesars Palace and MGM Grand [3]. - The company owns 93 experiential assets, comprising 54 gaming properties and 39 other experiential properties across the U.S. and Canada, focusing on supply-limited locales such as the Las Vegas Strip [3]. Financial Metrics - VICI Properties offers an annualized yield of 5.47%, which is higher than competitors like Lamar Advertising (4.33%) and Safehold (3.18%) [4]. - The price-to-earnings (P/E) ratio for VICI is 12.28, indicating it is reasonably priced compared to Lamar Advertising (24.72) and Safehold (14.8) [4]. - The company has demonstrated strong performance in moving averages, with a 20-Day SMA of +5.86%, 50-Day SMA of +6.96%, and 200-Day SMA of +5.29% [5]. Valuation and Growth - VICI Properties has a Valuation Grade of "B+" with strong ratings in several metrics, including P/E Non-GAAP (FWD) and EV/EBIT (TTM), both rated "A+" [5]. - The company has shown impressive growth in Adjusted Funds From Operations (AFFO), with year-over-year growth of 11.40%, 3-year growth of 9.45%, and 5-year growth of 8.50% [26]. Dividend Safety and Growth - VICI's dividend has increased from $1.255 per share in 2020 to $1.66 per share in 2024, reflecting a compound annual growth rate (CAGR) of just under 5% [20]. - The dividend safety grade for VICI is rated "B", indicating a solid position compared to peers [28]. Strategic Initiatives - The company is focusing on strategic imperatives such as expanding its market scope, refinancing maturing debt, and capitalizing on existing assets to enhance growth [33]. - Recent investments include a $250 million loan for Great Wolf Lodge and a $700 million investment aimed at enhancing properties in Las Vegas [32][33].

Core Viewpoint - VICI Properties is a notable REIT focused on gaming assets, showing strong revenue and profitability growth, with a current market capitalization of $30.72 billion [2][10]. Financial Performance - Revenue increased by 8.4% year-over-year, from $877.6 million to $951.5 million, with significant growth in lease financing income, which rose by 10.3% from $371.1 million to $409.3 million [3][4]. - Operating cash flow rose by 4.2% from $522 million to $543.7 million, while adjusted operating cash flow increased by 10.3% from $534.5 million to $589.8 million [4]. - Funds from operations (FFO) grew from $520.2 million to $590 million, with adjusted FFO rising from $528.6 million to $583.2 million [4]. Growth Initiatives - The company is actively expanding, having committed up to $700 million for reinvestment projects at the Venetian Resort, with $400 million planned for this year [5]. - VICI Properties has a diverse portfolio, including investments in various experiential assets, and has originated $115 million in senior loans for different projects [5]. Future Projections - Analysts forecast revenue of $953.7 million for the second quarter of 2024, up from $898.2 million a year earlier, with adjusted FFO per share expected to rise to $0.66 from $0.54 [6][7]. - For the full year, adjusted FFO per share is projected to be between $2.22 and $2.25, translating to nearly $2.34 billion in total adjusted FFO [7]. Valuation Metrics - VICI Properties is considered relatively expensive compared to similar specialty REITs, with a price to operating cash flow of 14.0 and an EV to EBITDA of 16.2 [8][9]. - The net leverage ratio is expected to improve to 5.23 in 2024, down from 5.59 previously calculated [8]. Overall Assessment - The company is performing well fundamentally, with strong growth in both revenue and profitability metrics, justifying a 'buy' rating despite its higher valuation compared to peers [10].

Walter Bibikow/DigitalVision via Getty Images VICI Properties owns a cyclical, yet inflation-protected real estate portfolio that is dominated by gaming properties. The presence of rent escalators and the leading position of Las Vegas as a tourist destination were reasons that supported my prior Buy recommendation for VICI Properties. I think that VICI Properties continues to deliver solid FFO value to passive income investors in a growing economy. The trust is also poised to announce a higher dividend in S ...

Core Viewpoint - VICI Properties Inc is positioned as a strong investment opportunity due to its solid fundamentals, potential for significant growth, and a favorable dividend structure despite current market challenges [37][51]. Financial Performance - VICI reported a year-over-year revenue growth of 8.4% and an AFFO per share of $0.57 for Q1, indicating strong earnings power even in unfavorable conditions [41]. - The company has maintained a 100% rent collection rate since its inception, showcasing the quality of its tenant relationships [24][41]. - Current FFO estimates for Q2 are between $0.65 and $0.70 per share, with six positive revisions in the last 90 days [14]. Dividend Structure - VICI's current dividend yield is 5.3%, which is above its four-year average of 4.9% and comfortably covered by AFFO at a rate of 137.3% [15][38]. - The dividend has increased by 159.4% since the REIT's inception, with a compound annual growth rate (CAGR) of 7.62% over the last five years [15]. Portfolio Composition - VICI's portfolio consists of 13 tenants, with two tenants accounting for 74% of annualized cash rent, indicating a concentration risk [20][40]. - The company has a significant reliance on the Las Vegas region, which accounts for 47% of annualized rent from gaming properties [8][40]. - 81% of the portfolio has master lease protection, providing stability against vacancies [11]. Growth Potential - VICI has initiated investments in experiential properties, including a $212 million mezzanine loan to Kalahari Resort and $250 million in Great Wolf Lodge indoor water parks, indicating a strategy to diversify revenue streams [25][27]. - The company is exploring growth opportunities in sectors like waterparks, live entertainment venues, and theme parks, aligning with consumer trends favoring experiential spending [25][27]. Market Conditions - The real estate sector has been negatively impacted by rising interest rates, but there are indications that rate cuts may occur soon, which could benefit VICI [29][30]. - Historical data suggests that the federal funds rate is often adjusted during election years, which may lead to favorable conditions for VICI [30][31]. Valuation Metrics - VICI currently trades at approximately $30 per share with an estimated annual AFFO of $2.53, resulting in a price to AFFO ratio of 11.85x, significantly lower than peers [33]. - The estimated fair value of VICI is around $56 per share, indicating a potential upside of 86% from current levels if growth trajectories are maintained [6].

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.25 per share and revenue of $3.84 billion. These totals would mark changes of +4.65% and +6.34%, respectively, from last year. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. V ...

santirf/iStock Editorial via Getty Images VICI Stock Price VAL VICI Properties Inc (VICI) Price 29 41 33.00 30.00 29.41 24.00 Jul '22 Jan '23 Seeking AlphaQ Jul 11, 2024, 7:51 PM EDT Powered by YC H A R T S Data by Y Charts This kind of relative underperformance has quelled any prior concerns that I have had on valuation. VICI is the largest publicly traded net lease REIT focused on casino properties. Net leases mean that the tenant is responsible for real estate taxes, insurance, and maintenance expenses. ...

A group of friends play the slot machines at a casino. nd3000/iStock via Getty Images Achieving and maintaining success as a dividend growth investor depends on owning businesses with a reasonably high probability of being around in 10 years or even 20 years. As a dividend growth investor, this is why I tend to search for business models that can stand the test of time. The real estate investment trust or REIT sector is one of my favorite sectors for that very reason. I believe the need for high-quality com ...