VICI Stock Recent News

NEW YORK--(BUSINESS WIRE)--VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”) announced today that its subsidiary, VICI Properties L.P. (the “Issuer”), has completed its public offering of $1.3 billion in aggregate principal amount of senior unsecured notes (the “Notes”) consisting of: $400 million aggregate principal amount of 4.750% senior unsecured notes due 2028 (the “2028 Notes”). The 2028 Notes were issued at 99.729% of par value and will mature on April 1, 2028. $900.

After an incredible run of 20%+ years for the S&P 500 in 2023 and 2024, many across Wall Street now know that the momentum has hit a wall.

Vici Properties (VICI -3.86%) had a great first quarter. The real estate investment trust (REIT) soared 11.7% to start the year, according to data provided by S&P Global Market Intelligence.

VICI Properties is a well-priced, diversified commercial REIT with a robust 5.4% yield. Its focus on key, stable, domestic properties makes it 'Tariff Proof'. VICI's strong FFO growth is underpinned by a multi-billion-dollar real estate portfolio, high tenant quality, and mission-critical property positioning. VICI stock appears well priced, given the premium-looking margins and low gearing.

VICI Properties' sideways trading since early 2021 has already triggered its richer forward dividend yields, thanks to the uncertain macroeconomic/geopolitical environment. Despite the increased reliance on debts and the still expensive borrowing costs, the REIT has guided decent FY2025 numbers, underscoring its ability to generate profitable growth. This is especially given the REIT sector's inverse relationship to the moderating 10Y Treasury Yields, with it likely to trigger lower borrowing costs, thanks to the ongoing trade war.

VICI Properties generates 124 basis points of value through a favorable spread between their cap rate and their cost of capital. Of the 124 basis points of value, a meaningful amount is accruing to the investor as measured by the total return picture exceeding the AFFO yield. Current market volatility and potential subdued interest rates enhance the attractiveness of VICI's bond-like investment profile.

Vici Properties (VICI -3.44%) is a real estate investment trust (REIT) that is focused on owning casinos. That's a pretty specific niche but one that has proven, so far anyway, to be fairly attractive.

VICI Properties focuses on gaming properties, boasting strong negotiating power, 100% rent collection, and mission-critical assets, ensuring stability and growth. VICI's unique market position and elite metrics, including a 7% dividend CAGR and 5.1% AFFO per share growth in 2024, drive shareholder returns. Despite its strengths, VICI remains modestly valued, presenting a double-digit total return opportunity, though I downgrade my rating from 'strong buy' to 'buy'.

When it comes to new technology, investors often get way too excited far too soon. The current AI-driven market rally doesn't seem indicative of bubble risk in the short term, but the Nasdaq is positioned to underperform going forward. Historical patterns warn against getting overly excited about AI's potential and suggest prudent allocation of capital.

VICI Properties has held up strongly amidst the market volatility. The stock's current 5.3% yield and 4% forward growth offer insufficient returns relative to risk, especially compared to more diversified REIT peers. VICI's past rapid growth was driven by an under-leveraged balance sheet, which is no longer the case, limiting future growth potential.