VICI Properties: A Highly Profitable Gaming REIT With Discounted Valuations

Summary

• VICI's top and bottom line growth have been excellent over the past five years, well exceeding the sector median, with the management recently raising the FY2023 profit guidance.
• Shareholders have also benefitted from the REIT's high growth cadence, thanks to the raised quarterly dividends by +6.4% despite the sustained share dilution.
• While part of VICI's rental escalator is tied to the CPI, the Fed only expects to reach the 2% inflation target rate by 2025, suggesting VICI's excellent intermediate-term prospects.
• We expect the REIT to continue to exceed expectations, thanks to the high hotel occupancy rates and robust casino demand in Las Vegas as international guests return.

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The VICI Investment Thesis Remains Robust Here, Thanks To The Highly Competent Management Team

VICI Properties Inc. (NYSE:VICI) is an interesting REIT to observe, attributed to the management's strategic choice to focus on casino and golf real estates, while calling Caesars (

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.