Last Updated: 18 Sep 2024
Executive Summary
VICI Properties Inc. (VICI) is an experiential real estate investment trust (REIT) that owns a portfolio of gaming, hospitality, and entertainment destinations, including Caesars Palace. The company has a strong financial position with a low cost of capital and a growing dividend yield. VICI's stock price has outperformed the S&P 500 Index over the past year. However, the stock is currently trading at a premium to its peers and may be overvalued.
Company Overview
VICI Properties was founded in 2017 and is headquartered in New York City. The company owns a portfolio of 43 properties located in 14 states. VICI's properties include casinos, hotels, resorts, and convention centers. The company's largest tenant is Caesars Entertainment, which accounts for approximately 50% of VICI's revenue.
Fundamental Analysis
VICI Properties has a strong financial position. The company has a low cost of capital, with a weighted average cost of debt of 3.5%. VICI also has a strong balance sheet, with a debt-to-asset ratio of only 25%. The company's dividend yield is currently 5.08%, which is higher than the average yield for REITs.
VICI's revenue and earnings have grown steadily over the past few years. In 2023, the company reported revenue of $3.7 billion and net income of $1.2 billion. VICI's earnings per share (EPS) was $2.55 in 2023, up from $2.31 in 2022.
Technical Analysis
VICI's stock price has outperformed the S&P 500 Index over the past year. The stock is currently trading at $33.71, up from $25.19 in January 2023. VICI's stock price is above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought.
Short Term Outlook
VICI's stock price is likely to continue to trade sideways in the short term. The stock is currently overbought and may be due for a correction. However, VICI's strong fundamentals should support the stock price in the long term.
Long Term Outlook
VICI Properties is a well-positioned REIT with a strong portfolio of properties and a growing dividend yield. The company's long-term growth prospects are favorable. VICI's stock is a good investment for investors who are looking for a long-term income stream.
Analyst Recommendations
Analysts have a bullish outlook on VICI Properties. The consensus analyst rating for the stock is "buy." The average analyst target price for the stock is $35.04.
