Still Bullish On VICI Properties With Earnings On The Table

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].