STOCKS TELEGRAPH

Tag: VICI Stock

  • VICI Properties Inc. (VICI): A REIT to Hedge Against Inflation with, Now Joins S&P 500

    Markets today are full of warning signs for investors as the world sinks deep into chaos ensued by numerous factors. Covid-19 pandemic played its part and threw the world into a dark phase, the light had just started peeing through, that new problems rose. Russia invaded Ukraine, which fueled the already toughening economic conditions. Inflation is soaring, interest rates even more so, China is still in lockdown mode and there’s another outbreak; the monkey pox. Supplies of oil, energy products, food, and manufactured goods are short and the supply chain is tangled. The wider geopolitical and economic situation had caused investors to spark a huge sell-off in the stock market. Equities are falling down as the threat of a recession continues to loom overhead.

    The investment environment such as the present calls out for defensive plays as risks become too high to deal with. In such a tough situation, the best hedge against inflation are stocks that pay regular and increasing dividends. As any other investment would bring just more risk but dividend-yielding ones would at least ensure some return. Thus, the first to come to mind is real estate investment trusts (REITs) which are long known for being the leaders among the market’s dividend payers. REITs have a predictable income and are required to distribute at least 90% of their profits to shareholders as dividends. Another major plus for owning REIT stock is that periods of higher inflation ensure continued profits as real estate and rents tend to go up. The higher rents and prices mean more money for REIT shareholders at times when most stocks are faltering. Among the most impressive REITS to own right now is a huge player on the Strip VICI Properties Inc. (VICI).

    VICI’s Position

    Following the acquisition of the Venetian and its associated Expo and Convention Center in 2021, VICI recently completed the $17.2 billion takeover of MGM Growth Properties. This has made the company the largest casino landlord on the Las Vegas Strip with the addition of 15 Las Vegas and regional casinos as well as roughly 41,000 hotel rooms and 1.2 million sqft. gaming space. Its portfolio now has names like Caesars Palace, Harrah’s, Excalibur, Luxor, Mandalay Bay, MGM Grand, Park MGM, and many others.

    Source: Company Investor Presentation

    The company has now made its place in the S&P 500 and will flaunt the position on Wednesday, June 8, when the market opens. This news is the reason behind the latest uptick of the stock which had it rise by 6.91% in the after-hours on June 3. Currently, the stock is trading at a price of $33.81 after it gained a further 7.71% in the premarket today, at the last check.

    Resilience & Dividend Growth

    Over the last few years, VICI has proved its resiliency despite the pandemic bringing economies to a halt. The company collected 100% of its rent throughout the pandemic due to its operating excellence and liquidity of tenants. 80% of the company’s rent roll is on the S&P 500. The company has also continued growth in its annualized dividend per share as seen in the company charts below:

    Source: Q1 Presentation

    If the company was able to collect all its rent during the pandemic and in a timely manner it only suggests that in any further downturn VICI will continue to do so as well.

    The latest dividend of $0.36 was paid in early April, at an annualized rate of $1.44 this results in a yield of 4.9%. This is 2.5x the average yield for S&P-listed companies.

    The Business Model

    The company has a triple net leasing model which is very efficient given the fact that VICI does not have to pay for any property upkeep expenses. In the triple net leasing model, tenants rent entire commercial buildings and pay for all of the property expenses. Moreover, its lease term is very long compared to its peers with an average term of 43.2 years while rents can be increased by an average of 1.8%.

    VICI’s Financial Overview

    In the first quarter of 2022, the company’s revenues grew by 11.3% YOY to $416.6 million. This surpassed the consensus estimate by 1.42%.

    Furthermore, the net income and FFO (funds from operations) were $240.4 million. Thus, the adjusted FFO per share of 44 cents was just in line with analysts’ expectations for the quarter.

    At the end of the March quarter, VICI had cash and cash equivalents of $568.7 million, $5.4 billion in debt, and $3.5 billion in liquidity. Availability under its Revolving Credit Facility and Delayed Draw Facility was $1.9 billion and $1.0 billion respectively.

    Future Outlook

    VICI now expects an adjusted FFO of $1,660.0-$1,690.0 million for the full year against the previous $1,317-$1,347 million. The adjusted FFO per share is now pegged at $1.89-$1.92 against $1.80-$1.84. Analysts, on the other hand, have their FFO per share placed at $1.96 for the full year.

    Conclusion

    Amid the current market situation, VICI comes to be a great dividend stock to hedge against inflation and uncertainty. Its strong financial profile, continued dividend growth, business expansion, and resilient business model are some of its strong points. Some notable names like Steve Cohen, Eduardo Abush, and George Soros, have recently bought a stake in the company as a long-term inflation hedge. The stock also holds an overweight (Buy) rating from JP Morgan with a bullish outlook and price target of $35. Thus, VICI is a good stock to have in one’s portfolio in the current uncertain times.

  • ‎15 REIT – Diversified Stocks to Watch ‎

    ‎15 REIT – Diversified Stocks to Watch ‎

    The real estate investment trust (REIT) has traditionally provided total competitive returns ‎based on ‎high, steady dividends and long-term capital gains. In addition to their relatively ‎low correlation with ‎other assets, they are regarded as excellent portfolio diversifiers that ‎may decrease overall portfolio ‎risk and increase returns. There are characteristics of REIT-‎based investments that make them ‎attractive to investors. REITs produce income that can ‎be reinvested into other investments, pushing a ‎portfolio’s value higher in the process.‎

    Here are some of the key performers of the last trading session in REIT – Diversified Sector.‎‎

    Colony Capital Inc. (NYSE:CLNY) shares were trading up 2.32% at $4.86 at the ‎time of writing on Friday. On December 3, 2020, the company declared the sale and closing of its 51% ‎ownership stake in the Colony Bulk Industrial Portfolio at a $400M total portfolio value.‎

    Colony Capital Inc. (NYSE:CLNY) share price went from a low point around $1.33 ‎to briefly over $5.17 in past 52 weeks, though shares have since pulled back to $4.86. CLNY market cap ‎has remained high, hitting $2.29B at the time of writing, giving it price-to-sales ratio of more than ‎‎1.‎

    If we look at the recent analyst rating CLNY, Truist initiated coverage on ‎‎CLNY shares with a Buy rating and a $5.42 price target, which implies room for 0.56% ‎upside momentum this year.‎

    VEREIT Inc. (VER) last closed at $37.86, in a 52-week range of $3.56 to $10.18 ‎after reporting that that the Company has completed its previously announced one-for-five reverse ‎stock split of its outstanding shares of common stock.

    STORE Capital Corporation (STOR) stock drop by -4.09% to $32.15. The firm ‎recently revealed that it has declared a regular quarterly cash dividend on its common stock of $0.36 ‎per share for the fourth quarter ending December 31, 2020. The most recent rating by Robert W. Baird, ‎on December 17, 2020, is at a Neutral.‎

    Broadstone Net Lease Inc. (NYSE:BNL) Shares headed falling, lower as much as -‎‎1.37%. The most recent rating by Truist, on October 12, 2020, is at a Buy.‎

    VICI Properties Inc. (NYSE:VICI) fall -3.05% after losing more than -$0.81 on ‎Friday. The firm lately declared that its CEO, Edward Pitoniak, appeared as a featured guest on Fox ‎Business Network’s “The Claman Countdown” on Tuesday, December 15, 2020.‎

    Lexington Realty Trust (LXP) last closed at $10.76, in a 52-week range of $7.86 to ‎‎$12.08. Analysts have a consensus price target of $12.05.

    Spirit Realty Capital Inc. (SRC) stock drop by -4.11% to $40.18. On December 4, ‎‎2020, the company provided an update on rent collections, capital deployment, and equity issuance ‎activity. The most recent rating by Robert W. Baird, on December 17, 2020, is at a Neutral.‎

    Essential Properties Realty Trust Inc. (NYSE:EPRT) Shares headed falling, lower ‎as much as -3.69%. The firm reported on December 4, 2020, that its Board of Directors declared a ‎quarterly cash dividend of $0.24 per share of common stock for the fourth quarter of 2020. The most ‎recent rating by Raymond James, on October 02, 2020, is at an Outperform.

    Empire State Realty Trust Inc. (NYSE:ESRT) fall -3.56% after losing more than -‎‎$0.35 on Friday following an announcement from the firm that that ClearView Healthcare Partners, a ‎global strategy firm with consultants who serve the life science sector, signed a new eleven-year lease ‎at 111 West 33rd Street for 39,067 square feet.

    American Finance Trust Inc. (AFIN) last closed at $8.15, in a 52-week range of ‎‎$4.20 to $13.66. The firm on December 15, 2020, revealed the pricing of an underwritten public offering ‎of 3,200,000 shares of its 7.375% Series C Cumulative Redeemable Perpetual Preferred Stock at a gross ‎offering price of $25.00 per share. Analysts have a consensus price target of $7.75.

    Urban Edge Properties (UE) stock drop by -3.30% to $13.50. The firm recently ‎declared a special dividend of $0.46 per share primarily resulting from the tax gain on the modification. ‎The most recent rating by Evercore ISI, on June 23, 2020, is at an Outperform.

    Alexander & Baldwin Inc. (NYSE:ALEX) Shares headed falling, lower as much as -‎‎1.03%. Recently, The Board of Directors of Alexander & Baldwin, Inc. (NYSE:ALEX) approved a fourth ‎quarter 2020 dividend of $0.15 (fifteen cents) per share. The most recent rating by JMP Securities, on ‎February 20, 2018, is at a Mkt outperform.

    W. P. Carey Inc. (NYSE:WPC) fall -2.87% after losing more than -$2.05 on Friday. ‎The company on December 9, 2020 revealed that its Board of Directors increased its quarterly cash ‎dividend to $1.046 per share, equivalent to an annualized dividend rate of $4.18 per share.

    iStar Inc. (STAR) last closed at $14.64, in a 52-week range of $5.48 to $17.50. ‎Analysts have a consensus price target of $16.75.

    ‎Armada Hoffler Properties Inc. (AHH) stock drop by -5.31% to $10.70. The firm ‎on December 3, 2020 reported that it has formed a 50/50 joint venture with Beatty Development ‎Group, which will develop and build T. Rowe Price’s new 450,000 square foot global headquarters in ‎Baltimore’s Harbor Point. The most recent rating by Stifel, on June 25, 2020, is at a Hold.

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