Looking At VICI Properties? You Might Not Want To Wait Any Longer

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

VICI Properties VICI, the specialty REIT with a portfolio of 28 gaming properties, has already made impressive strides through a year that was especially hard on REITs. 

VICI’s recent growth

Between the end of the first quarter of 2020 and the end of the first quarter of 2021, VICI Properties increased quarterly revenue by over 46%, from just over $255 million to over $374 million. The growth was almost identical on the bottom line, with AFFO increasing over 41% during the same period. 

At the beginning of this year, some were already expecting to see further growth from VICI properties through 2021, then the company announced in March it will be acquiring the Venetian Resort in a $4 billion deal. The Venetian is one of the most iconic properties in the country and the largest single hotel complex in the U.S. by number of rooms. 

Once the Venetian deal closes, it will add $250 million in annual revenue to the company’s rent roll. This will be a roughly 20% increase in total annual revenue and is expected to be accretive to VICI’s AFFO per share immediately upon closing.

Is it the right time to buy VICI stock?

VICI’s share price has increased roughly 54% in the past 12 months, but the opportunity certainly hasn’t passed by. The company’s AFFO has had an annual growth rate of 16.7% since their first full year as a REIT, and a 20% boost in rental income by the end of the year will help that growth continue. The most recent analyst price target also anticipates more than 50% upside in the next 12 months. 

A dividend increase during the third quarter is likely as well, especially since the company has made increases in September each year since it started making distributions. 

While VICI will still be an excellent investment after it closes on the Venetian deal, investors that hold out on getting into this REIT much longer are likely to miss out on a lot of upside. 

Want to learn more about investing in REITs? See How to Invest in REITs

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.