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VICI Properties: The First Line Of Defense Against Volatile Markets

May 02, 2022 2:49 AM ETVICI Properties Inc. (VICI)MGP31 Comments
Bashar Issa profile picture
Bashar Issa


  • VICI shares remained resilient against market selloff, demonstrating a loyal shareholder base and a renewed interest in alternative assets from institutional investors.
  • The MGP acquisition diversified its tenant base, but revenue is still limited to the gaming industry, sensitive to economic cycles.
  • Investors should expect a stable dividend and a slight increase in share value, mirroring rising real estate prices.
  • Most of VICI debt is tied to fixed-rate notes, protecting it from rising interest rates, at least in the short run.
The famous Las Vegas Strip with the Bellagio Fountain. The Strip is home to the largest hotels and casinos in the world.

RandyAndy101/iStock Editorial via Getty Images

Investment Thesis

VICI Properties (VICI) shares remained resilient in the face of the market selloff. The previous article highlighted why investors should expect capital gains augmenting its 5% dividend. Since then, shares rose 5.2%, bringing a total return to 6.6%, against an 8% decline

This article was written by

Bashar Issa profile picture
Bashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.

Analyst’s 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (31)

Manzanita Research profile picture
Even though this REIT fully recovered this is the type of stock I dislike even though it's reclaimed an uptrend. Way too volatile for my tastes. Down 12% in a week then up 15% a few weeks later. Of course it is nice if you bought the low but why would the valuation fluctuate so radically. I see there was an earnings report but I didn't see anything in there that justified such wild swings.
I'd still consider buying it but can't see it being a top choice vs. less volatile REITs and stocks.
@Manzanita Research Made an all-time high in AH trading Friday
Income4ever aka Cyclenut profile picture
@Manzanita Research
Now that it's been inducted into the S&P 500 we should see significant institutional action which will serve to somewhat stabilize the price action ...
$40 by Q4
Manzanita Research profile picture
@Income4ever aka Cyclenut That is a significantly positive catalyst. I don't like that recent volatility but I agree it should stabilize the price. I will consider it more.
Sure is acting awful. Must be a depression coming...trading that way.
@Peter J McGee Depression only for the shareholders.
"VICI shares remained resilient against market selloff, demonstrating a loyal shareholder base and a renewed interest in alternative assets from institutional investors." This thesis works until it doesn't as today's market showed. Demonstrating it is not resilient to market selloff and shareholders are just looking to capitalize on VIC every time it breaches $30.

"Since then, shares rose 5.2%, bringing a total return to 6.6%, against an 8% decline in the broader market". Looks like it gave back all those gains today.

This has to be a day traders dream. Buy at $27 and sell over $30 rinse and repeat every few months.
I'll be scooping up more shares at $26.50 (target price).
Like Ben Graham said, you're right because your analysis is right, not because the market agrees or disagrees with you.
My analysis tells me that for me, $26.50 is a great price to get in.
zito profile picture
VICI just like other REIT's used low interest rates and high stock prices to acquire property; great plan in the past. Now they should be using cash flow to reduce debt.
nealyohara profile picture
Anyone else buying dips?
@nealyohara Sure I buy dips, these are not dips though they are the opening stages of a bear market. With feds raising rates, 10 year just broke 3%, inflation raging, fed QT, recession guaranteed, these dips will continue for some time.
@Randol33 ah...the short Sellers are out. Lol
@Randol33 Recssion is not a quarantined. I know you're rooting for one but...
Any insight as to today's abysmal performance?
mtaar profile picture
and the stock is getting killed lol
@mtaar MGM shareholders tripping over themselves in a panic to sell.
mtaar profile picture
@Randol33 oh ok, that explains.
@Randol33 Mr Under $25 come out of his shell.
Income4ever aka Cyclenut profile picture
Its officially a gaming Beast- VICI closes MPG deal
Let the games begin.... $40+ by years end
Smart business people go where $$ is treated well. The “Wokes” lefties do not feel sorry for gamblers. As oppose to student debt.
@aimepic you have any urban slang in your vocabulary blood?
Liquidors profile picture
"In my view, VICI shareholders will enormously benefit if management diversifies outside the gaming sector."

Diversified companies are now going after the gaming sector. There is obviously value in the subsector. That said, they seem to know how to manage external growth, and there's really nothing stopping them from expanding into other avenues of real estate. Not sure if they can get good deals there though.
Fi-Gal profile picture
Right, the almighty realty income (O) the monthly dividend stock, just branched out into gaming.
Income4ever aka Cyclenut profile picture
Agreed, golf courses, Waterpark, ski resorts etc...
Income4ever aka Cyclenut profile picture
O is just warming up.... get ready for more WYNN deals down the pike
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