Group 1 - VICI Properties has underperformed since being rated a Buy in early July, despite the booming economy in Las Vegas [1] - The focus is on analyzing undervalued companies with strong fundamentals and cash flows, particularly in sectors like Oil & Gas and consumer goods [1] - Energy Transfer is highlighted as a previously overlooked company that now shows potential for substantial returns [1] Group 2 - The analyst expresses a preference for long-term value investing while also engaging in deal arbitrage opportunities [1] - There is a clear aversion to investing in high-tech businesses and certain consumer goods, with a preference for more traditional products [1] - The article aims to connect with like-minded investors and build a community focused on informed decision-making and superior returns [1]

Company Overview - VICI Properties Inc. (NYSE:VICI) is recognized as one of the 13 best dividend stocks, offering a yield over 6% [1] - The company went public in early 2018, marking one of the largest REIT IPOs at that time, and has consistently increased its dividends annually for seven years since its IPO [3] Financial Performance and Outlook - Cantor Fitzgerald has lowered its price target for VICI from $35 to $33 while maintaining an Overweight rating, citing an improved REIT outlook for 2026 [2] - US equity REITs returned 2.9% in 2025, underperforming the S&P 500, but Cantor anticipates a more supportive macro environment and increased M&A activity in 2026 [2] Business Model and Strategy - VICI operates under a triple-net lease model, where tenants are responsible for property taxes, insurance, and maintenance, ensuring predictable operating costs and transferring much of the risk to tenants [4] - The company's portfolio is fully leased with 100% occupancy, and most long-term leases include rent escalators linked to the Consumer Price Index, which helps safeguard rental income against inflation [4] - VICI focuses on owning, acquiring, and developing experiential real estate, emphasizing destination-style venues rather than traditional commercial properties [5]

Core Viewpoint - The article suggests that despite the long-standing belief that Real Estate Investment Trusts (REITs) are undervalued, many have still underperformed, indicating a potential shift in market dynamics that may favor REITs moving forward [1]. Group 1 - The author identifies as a buy-and-hold investor focused on quality dividend-paying stocks, including REITs, and aims to help lower and middle-class workers build investment portfolios [1]. - The author emphasizes the importance of conducting personal due diligence before making investment decisions, highlighting a commitment to educational purposes rather than financial advice [1]. Group 2 - The article does not provide specific financial data or performance metrics related to REITs or other investment vehicles mentioned [2][3].

Core Viewpoint - VICI Properties Inc. is set to report earnings, with positive projections for EPS and revenue growth compared to the previous year [2][3]. Company Performance - In the latest trading session, VICI's stock increased by 1.09% to $27.86, outperforming the S&P 500's daily gain of 0.01% [1]. - Over the past month, VICI's shares have decreased by 0.72%, underperforming the Finance sector's gain of 1.95% and the S&P 500's gain of 0.86% [1]. Earnings Projections - The upcoming EPS for VICI is projected at $0.6, indicating a 5.26% increase year-over-year [2]. - Revenue is expected to reach $1.02 billion, reflecting a 4.08% increase compared to the same quarter last year [2]. Annual Estimates - For the annual period, earnings are anticipated to be $2.37 per share, with revenue projected at $4.01 billion, showing a 4.87% increase in earnings and no change in revenue from the previous year [3]. - Recent revisions to analyst forecasts for VICI are important as they can indicate short-term business trends [3]. Valuation Metrics - VICI is currently trading at a Forward P/E ratio of 11.27, which is slightly above the industry average of 11.19 [6]. - The PEG ratio for VICI is 2.74, compared to the industry average PEG ratio of 2.49 [6]. Industry Context - The REIT and Equity Trust - Other industry, which includes VICI, has a Zacks Industry Rank of 110, placing it in the top 45% of over 250 industries [7]. - The top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1 [7].

Core Viewpoint - VICI Properties (VICI) is currently undervalued at an 11.7X AFFO multiple, despite concerns about the changing gaming environment and declining travel to Las Vegas [2][43]. Industry Analysis - The legal landscape for online sports betting changed significantly in 2018 when the Supreme Court overturned PASPA, allowing states to regulate their own sports betting laws [4]. - Online gaming revenue has surged, now accounting for 30% of commercial gaming revenue, up from 11% in 2021, raising concerns that it may cannibalize traditional casino revenues [6]. - Visitor numbers to Las Vegas have declined, with a reported 3.09 million visitors in September, a 9% decrease from the previous year, and convention attendance down over 18% [7]. Company Analysis - VICI has a favorable leasing structure where tenants are responsible for property upgrades, and it has the most efficient overhead among REITs [5]. - Major tenants, Caesars Entertainment and MGM Resorts, account for 70% of VICI's rental revenue [31]. - VICI's revenues are derived from long-term master leases with built-in escalators, providing stability despite the volatility in casino earnings [33]. Financial Performance - VICI's AFFO has remained stable, showing no significant impact from the current weakness in Las Vegas or the rise of online sports betting [36]. - The company is expected to achieve a 6.3% dividend yield and 4% annual AFFO growth, with potential for higher returns if the stock appreciates to a higher multiple [47]. Market Sentiment - The current market valuation of VICI appears to be overly pessimistic, trading at a discount compared to peers despite its superior track record and growth potential [46]. - Analysts believe that the downturn in Las Vegas is cyclical rather than secular, suggesting a recovery is likely [21].

Group 1 - The author is an electromechanical engineer with experience in automotive, IT infrastructure, and medical device industries, aiming to provide technical breakdowns on company products and share industry experiences [1] - The focus is on delivering insights into current engineering trends and real-world product knowledge, which can benefit investors conducting research [1] - The author identifies as a long-term buy-and-hold investor, seeking investments with strong cash flows and a growing passive income stream or significant R&D investments [1]

Core Viewpoint - VICI Properties Inc. is experiencing near-term uncertainty and a declining stock price due to a pending decision regarding rent payments from its largest tenant, Caesars Entertainment [1] Group 1: Company Overview - VICI Properties Inc. is facing challenges related to its largest tenant, Caesars Entertainment, which may impact its financial performance [1] - The stock price of VICI is currently weak, reflecting investor concerns over the rent situation with Caesars [1] Group 2: Market Context - The equity market is characterized by daily price fluctuations that can lead to significant long-term wealth creation or destruction [1] - Pacifica Yield is focused on long-term wealth creation by investing in undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Viewpoint - VICI Properties Inc. is experiencing near-term uncertainty and a declining stock price due to a pending decision regarding rent payments from its largest tenant, Caesars Entertainment [1] Group 1: Company Overview - VICI Properties Inc. is facing challenges related to its largest tenant, Caesars Entertainment, which may impact its financial performance [1] - The stock price of VICI is currently weak, reflecting investor concerns over the rent situation with Caesars [1] Group 2: Market Context - The equity market is characterized by daily price fluctuations that can lead to significant wealth creation or destruction over the long term [1] - Pacifica Yield is focused on long-term wealth creation by investing in undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - The company invests thousands of hours and over $100,000 annually to identify profitable opportunities, resulting in over 500 five-star reviews from members experiencing real results [1] - The company has released its Top Picks for 2026, offering new members a $100 discount and a 30-day money-back guarantee [1] Group 2 - Jussi Askola is the President of Leonberg Capital, a value-oriented investment boutique that provides consulting on REIT investing to hedge funds, family offices, and private equity firms [2] - Askola has authored award-winning academic papers on REIT investing and has established relationships with top REIT executives [2] - The investing group High Yield Landlord, led by Askola, shares a real-money REIT portfolio and transactions in real-time, featuring three portfolios (core, retirement, international), buy/sell alerts, and a chat room for direct access to analysts [2]

Core Viewpoint - In a low-yielding environment, several companies are prioritizing dividend payments, offering significantly higher yields compared to the S&P 500's record low of around 1.1% [1][2]. Company Summaries - **Ares Capital**: Offers a 9.6% dividend yield, focusing on debt and equity investments in private middle-market companies. The company has maintained a stable to growing dividend for 16 years and committed to invest $3.9 billion in new and existing portfolio companies during Q3 [4][5]. - **Brookfield Renewable Partners**: Currently yields 5.5%, significantly higher than its corporate counterpart. The company generates steady cash flow through long-term power purchase agreements and plans to increase its dividend by 5% to 9% annually [7][8]. - **Energy Transfer**: Provides an 8.2% yielding distribution, operating a diversified platform of energy midstream assets. The company plans to invest $5.2 billion in growth projects in 2026, supporting a projected annual payout increase of 3% to 5% [9][11]. - **Starwood Capital**: Yields 10.4% and has diversified its portfolio beyond floating-rate commercial mortgages to include residential and infrastructure lending. The recent acquisition of Fundamental Income Properties for $2.2 billion aims to enhance dividend sustainability [12][13]. - **Vici Properties**: Offers a 6.5% yield, investing in high-quality properties secured by long-term net leases. The REIT has grown its dividend at a 6.6% compound annual rate since 2018 and has announced a $1.2 billion sale-leaseback transaction to support future growth [16][17]. Investment Opportunity - Companies like Brookfield Renewable, Energy Transfer, Ares Capital, Starwood Capital, and Vici Properties are highlighted as strong dividend stocks for 2026, backed by sustainable financial profiles and prioritizing shareholder payouts [18].