VICI Properties: Near-Term Upside Likely Limited, But Still A Solid Bet Long-Term

(10min)

Summary

  • VICI Properties Inc.'s strong fundamentals, robust liquidity, and a 5.5% dividend yield make it a solid bet during market uncertainty despite potential selling pressure from a slowing economy.
  • Q1 performance showed solid AFFO growth and revenue beat, but FFO declined due to a $80 million CECL allowance, raising concerns about future growth.
  • VICI's balance sheet optimization led to investment-grade credit ratings and no debt maturing until 2026, ensuring financial stability and solid leverage ratios.
  • Despite potential near-term selling pressure from a recession, VICI's income stability, iconic properties, and attractive valuation make it a buy with expected high-single digit returns.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »

The famous Las Vegas Strip with the Bellagio Fountain. The Strip is home to the largest hotels and casinos in the world.

RandyAndy101

Introduction

The economy seems to finally be starting to show cracks, with negative GDP growth for the first time since 2022.

The delayed impact from higher for longer interest rates is starting to show up, and going forward, consumers will

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This article was written by

Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.

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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