Some tickers are covered more than others on the site, so with The Undercovered Dozen our Editors highlight twelve actionable investment ideas on tickers with less coverage. These ideas can range from "boring" large caps to promising up-and-coming small caps. Specifically, the inclusion criteria for "undercovered" include: market cap greater than $100 million, more than 800 symbol page views in the last 90 days on Seeking Alpha, and fewer than two articles published in the past 30 days. Follow this account ...

Core Viewpoint - VICI Properties is positioned as a strong investment opportunity due to its diversified portfolio, robust financials, and favorable lease agreements, which contribute to reliable income and growth potential [1][2][3]. Group 1: Portfolio and Income Stability - VICI Properties operates a well-diversified portfolio across 26 states in the U.S. and one Canadian province, focusing on gaming, hospitality, wellness, and entertainment [1][2]. - The company maintains a 100% occupancy rate, indicating the critical nature of its properties to tenants, which ensures consistent and reliable income [2]. - Long-term triple-net lease agreements provide a stable revenue stream, with an average lease term of approximately 40.7 years and a projected rent roll of 42% linked to CPI escalation in 2025, expected to rise to 90% by 2035 [3]. Group 2: Diversification and Management Strength - VICI Properties has expanded its portfolio beyond gaming to include non-gaming experiential assets, reducing risk from gaming volatility and enhancing its position in the experiential real estate market [4]. - The company's effective execution of growth strategies reflects strong management capabilities, positioning it for sustained success [4]. Group 3: Financial Health and Credit Ratings - As of December 31, 2024, VICI Properties reported liquidity of $3.25 billion and an annualized net leverage ratio of 5.3, with a long-term target of 5.0-5.5 [5]. - The company holds investment-grade credit ratings from Moody's, S&P Global Ratings, and Fitch Ratings, facilitating favorable access to the debt market [6]. Group 4: Dividend Growth - VICI Properties has demonstrated a commitment to solid dividend payouts, achieving a 7% annual dividend growth rate since 2018 and increasing its dividend five times in the last five years, with a five-year annualized growth rate of 8.05% [6][8].

Core Insights - Vici Properties experienced a strong first quarter, with its stock rising 11.7% while the S&P 500 fell 4.6% [1] Investment and Capital Raising - The company reported a mid-single-digit rise in adjusted funds from operations (FFO) per share, with increases of 3.6% for Q4 and 5.1% for the full year [2] - Vici committed over $1 billion in capital across various deals, including funding for The Venetian Resort Las Vegas and a Margaritaville resort [3] - A new strategic relationship was formed with Cain International and Eldridge Industries, leading to a $300 million mezzanine loan for One Beverly Hills development [4] Financial Enhancements - Vici announced a new $2.5 billion credit facility with a maturity extension to 2029 and priced $1.3 billion in senior unsecured notes [5] - The company will use the new funds to repay maturing debt, including $500 million of 4.375% notes and $800 million of 4.625% notes [5] Market Conditions - The yield on the U.S. 10-year Treasury fell from nearly 5% to around 4.25%, benefiting the REIT by making borrowing cheaper and boosting real estate values [6][7] - Continued decline in interest rates in early Q2 could further support REITs like Vici by enhancing property values and reducing borrowing costs [8]

Group 1 - The article emphasizes the importance of finding high-yield investment opportunities for individual investors, highlighting the company's focus on simplifying complex concepts and providing actionable advice [1] - The analysis produced by the company aims to assist investors in making informed decisions in the market, supported by expert research that is not commonly available [1] Group 2 - The article does not provide specific financial data or performance metrics related to any particular company or industry [2][3]

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect any business relationships with the companies discussed [2].

Core Viewpoint - VICI Properties Inc. has shown strong performance relative to the broader market since the buy recommendation issued on March 1st, 2024 [1] Company Analysis - VICI Properties Inc. is highlighted for its sustainable profitability and value-oriented criteria, making it an attractive investment option [1] - The company has a focus on diversifying revenue streams and managing costs effectively, which contributes to its competitive position [1] Investment Strategy - The investment approach is fundamentally bottom-up, emphasizing the analysis of financial statements and true economic earnings [1] - The portfolio strategy includes a tilt towards companies with above-average sustainable profitability, relying on dividends for expense coverage [1]

Company Overview - Vici Properties is a real estate investment trust (REIT) focused on owning casinos, which is a specific niche that has shown to be attractive [1] - The company operates as a landlord, leasing out physical properties, primarily casinos that include gaming, hotels, retail, dining, and convention businesses [2] Business Model - Vici Properties employs a net lease model, where tenants are responsible for most property costs, reducing the company's operational risks and costs [3] - The REIT has grown from approximately 20 properties at its IPO in early 2018 to 93 assets by the end of 2024, with 54 classified as gaming properties [4] Performance During Adversity - The company maintained consistent results during the COVID-19 pandemic, increasing its dividend in 2020 despite tenant shutdowns [5] - Casino operators need to maintain access to properties, making rent payments essential even during difficult times [6] Lease Structure and Inflation Protection - Vici Properties has an average lease length of 40 years, significantly longer than most net lease REITs [7] - Currently, 42% of its rent is protected by inflation-linked rent escalators, with plans to increase this to at least 90% by 2035 [8] Future Growth Potential - While there is a limit to the number of casinos Vici Properties can acquire, the increasing role of inflation-linked leases provides a solid foundation for future growth [9] - The rent roll from casinos is expected to grow reliably, offering a long runway for dividend growth for investors [9]

Core Viewpoint - VICI Properties is highlighted as a significant position in the REIT sector, emphasizing the importance of dividend investing for financial freedom [1]. Company Overview - VICI Properties is a Real Estate Investment Trust (REIT) that has seen several additions to its position over the last couple of years [1]. - The company is involved in sectors such as tech, real estate, software, finance, and consumer staples, which form the core of the author's investment portfolio [1]. Investment Strategy - The focus on dividend investing is presented as a straightforward and accessible path to achieving financial freedom, with the aim of demystifying the process for others [1]. - The author emphasizes the role of dividends in building a solid financial foundation and long-term wealth [1].

Core Viewpoint - VICI Properties has demonstrated resilience amidst a downturn in tech stocks, potentially benefiting from its tariff-resistant nature and lease escalators that may gain from inflation [1] Company Analysis - VICI Properties is perceived as a strong investment due to its ability to withstand market fluctuations and capitalize on inflationary pressures [1] - The company is characterized by a robust balance sheet and effective management, which are critical for long-term growth [1] Investment Strategy - The investment approach focuses on identifying undervalued companies with secular growth potential, emphasizing the importance of strong financial health and management in sectors with extended growth opportunities [1]

Core Insights - The S&P 500 is nearing correction territory, while the Nasdaq 100 has already entered it, suggesting a challenging market environment for investors [1] - VICI Properties Inc. is highlighted as a potential investment opportunity, particularly due to its status as the primary owner of real estate along the Las Vegas strip [1] - The investment strategy focuses on acquiring companies with strong qualitative attributes at attractive prices based on fundamentals, with a long-term holding approach [1] Company Analysis - VICI Properties Inc. is positioned as a key player in the real estate market, specifically in the Las Vegas area, which may provide stability and growth potential amid market volatility [1] - The company is part of a concentrated portfolio strategy aimed at minimizing losses while maximizing exposure to high-performing investments [1] Investment Strategy - The investment philosophy emphasizes the importance of evaluating growth opportunities and downside risks, often leading to a 'Hold' rating for companies that do not meet specific growth thresholds [1]