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I have invested in Las Vegas REITs (Real Estate Investment Trusts) and one that people may want to check out is VICI Properties Inc. (NYSE: VICI) which has Caesars Palace and Harrah’s Las Vegas in their portfolio. But also Caesars Atlantic City, Caesars Southern Indiana, Harrah’s Philadelphia, Harrah’s Atlantic City, to name a few.
In fact, the REIT has most of the Caesars and Harrahs throughout the United States in their portfolio. Including the Horseshoe hotel and casinos, Century Casinos, JACK Casinos, PENN Casinos, and that’s not it.
VICI Properties Inc. also has golf courses such as Cascata and Rio Secco in Vegas, Grand Bear in Mississippi and Chariot Run in Indiana.
So, let’s take a quick look at VICI Properties Inc. According to the REIT:
VICI Properties Inc. is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties’ national, geographically diverse portfolio consists of 28 gaming facilities comprising 47 million square feet and features approximately 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs and sportsbooks. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos, Inc., Hard Rock International Inc., JACK Entertainment LLC and Penn National Gaming, Inc. VICI Properties also has an investment in the Chelsea Piers, New York facility and owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties aims to deliver sustained income and value growth through its strategy of creating the highest quality and most productive experiential asset portfolio in American real estate investment management.
Source: Schwab.com
VICI Properties Inc. (NYSE: VICI) is currently sold at $31.88 (closing price was as of June 25, 2021) and has a D rating from Schwab Equity Ratings.
The 52 Week Range is $19.32-$33.35 and has a market cap of $17.1 billion and an enterprise value of $23.9 billion, with 537 million shares outstanding. 121% of shares are held by institutions and Ned Davis Researchg has its rating set at Neutral, CFRA has its rating set to “BUY” and Reuters Research Average Rating has rated it as “Outperforming”.
Wolf Research adjusted their price target for VICI Proeprties Inc. from $45 to $47.
The fact that this is a triple-net lease REIT that owns the iconic Caesar’s Palace (and also Harrah’s) in Las Vegas as well as properties throughout the United States, with more people starting to travel more and more, the REIT is experiencing highs. Surpassing their average from January 2018 to January 2020.
Granted, the pandemic brought shares down to a low of $11.27 per share, but for those who took advantage of the dip, should be happy with how the REIT has performed since then.
In fact, their dividends have increased including during the pandemic (when many other REITs lowered their dividend). VICI has declared a regular quarterly cash dividend of $0.33% per share of common stock from April 1 to June 30, 2021 and will be payable on July 8th. And if it stays at that price for a full year, the dividend will increased from $1.26 to $1.32 with an annual dividend yield of 4.14%
As far as insider buying, according to Insider-Monitor, a total of 13,200 shares ($373,032) were purchased by James R. Abrahamson (who was listed back in 2018 as a Director), none sold and none for option exercised.
But the fact that VICI Properties Inc. has 28 leading gaming facilities, 47 million+ square feet owned, 17,800 hotel rooms and 200+ restaurant, bars & clubs throughout the country is quite attractive. The growth and dividend growth has been positive and while some people don’t like to jump on a REIT without five years under its belt, the fact that VICI owns iconic assets, I was willing to invest in the REIT.
Also for the fact that they also acquired the land and real estate assets of the Venetian for $4.0 billion and will enter a triple net lease agreement with the Venetian with Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) today announced that funds managed by its affiliates (the “Apollo Funds”) have entered into a definitive agreement to acquire The Venetian Resort and Sands Expo and Convention Center Operating Company in Las Vegas (“The Venetian”) from Las Vegas Sands Corporation (NYSE: LVS) (“Las Vegas Sands”).
Under the terms of the transaction, Apollo Funds will acquire the operating company of The Venetian, an iconic Las Vegas property and one of the largest integrated resorts in the world, for $2.25 billion. VICI Properties (“VICI”) will purchase the land and real estate assets of The Venetian for $4.0 billion, for a total transaction value of $6.25 billion. Simultaneous with the closing of the transaction, the Apollo Funds will enter into a long-term, triple net lease agreement for The Venetian with VICI.
John Payne, President and Chief Operating Officer of VICI Properties, said, “The Venetian is one of the most coveted properties in Las Vegas and a premier destination for gaming, business and leisure alike. We are thrilled to add The Venetian to our roster of best-in-class assets and believe the property is positioned to benefit from a rebound in Las Vegas under Apollo’s leadership. We look forward to what we expect will be a mutually beneficial and productive relationship with Apollo.”
Personally, VICI has added another iconic asset to their portfolio and I feel positive about this REIT’s long term sustainability.
As always, perform your due diligence and do a lot of research before investing. Talk to a financial advisor and find out if VICI Properties Inc. (NYSE: VICI) would be a perfect investment for you.
