Buy VICI: Opportune Time To Get Into Gaming Real Estate

Mar. 28, 2022 2:09 PM ETVICI Properties Inc. (VICI)MGP, O, VNQ, NTST, NNN, SRC, GNL41 Comments
Kevin Egan profile picture
Kevin Egan
97 Followers

Summary

  • VICI shareholders are poised to see a total return in excess of 20% NTM through a combination of accretive acquisitions, low risk internal growth, and a well protected dividend.
  • VICI should soon be upgraded to investment grade and could potentially be considered for S&P 500 inclusion after the pending acquisition of MGM Growth Properties (MGP) closes.
  • An -8.4% relative performance since VICI executed on the largest common equity follow-on ever by a REIT leaves VICI trading at an 11% discount to its Net Asset Value ((NAV)).

Las Vegas

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Investment Recommendation

I recommend a BUY rating for VICI Properties Inc. (NYSE:VICI) with a price target of $32, representing a 22.4% total return over the next twelve months. VICI shareholders are poised to see 10-12% of low risk total

Bull Base Bear

Source: Google Finance, Public company filings.

Comps 1

Source: Public company filings.

M&A

Source: Public company filings, Analyst estimates.

Accretion Sensitivity

Source: Analyst estimates.

Share Price Performance

Source: Google Finance.

Relative Performance

Source: Google Finance, Public company filings.

Leverage Trend

Source: Public company filings.

Per Share vs. AFFO

Source: Public company filings.

Debt Cost

Source: Public company filings, Analyst estimates.

Block of Growth

Source: Public company filings.

Return Potential

Source: Public company filings, Analyst estimates.

External Accretion

Source: Google finance, Public company filings.

Comps

Source: Public company filings.

NAV

Source: Google Finance, Public company filings, Analyst estimates.

DCF

Source: Google Finance, Public company filings, Analyst estimates.

LBO

Source: Google Finance, Public company filings, Analyst estimates.

Valuation

Source: Google Finance, Analyst estimates.

NAV Growth

Source: Public company filings, Analyst estimates.

Bull Bear

Source: Google Finance, Analyst estimates.

This article was written by

Kevin Egan profile picture
97 Followers
Five years of experience in sell side research at Goldman Sachs and Morgan Stanley covering Real Estate equities. CFA charterholder, Chartered Alternative Investment Analyst (CAIA), Certified Public Accountant (CPA) in the state of New York, and CFA Institute Certificate in ESG Investing.

Disclosure: I/we have a beneficial long position in the shares of VICI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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