VICI - VICI Properties Likely To Remain Profitable Ahead Venetian Investment Explained

2024-06-08 09:00:00 ET

Summary

• Despite the diversification thus far, gaming properties remain the core of VICI's portfolio as Vegas reports robust growth in gaming revenues and visitation numbers.
• This is also why the REIT has invested in Venetian, with the renovation works being mutually beneficial while generating a decent spread.
• If anything, VICI's overall cost of capital remains relatively low despite the elevated interest rate environment, with a profitable blended investment spread.
• At the same time, the REIT has reported healthier balance sheet, with the extremely long lease term of 42.5 years offering a promising view into its top/ bottom lines.
• Combined with the rich dividend yields and potential upgrade in valuations, we believe that VICI continues to offer a compelling investment thesis.

We previously covered VICI Properties Inc. ( VICI ) in March 2024, discussing its double beat FQ4'23 earnings call and promising FY2024 guidance, which demonstrated the management's competency thus far....

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