VICI Properties: Why I'm Staying Bullish On This Gaming REIT Currently Yielding 5.47%

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].