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VICI

VICI Properties NYSE:VICI Stock Report

Last Price

US$30.54

Market Cap

US$29.4b

7D

0.2%

1Y

5.1%

Updated

03 Oct, 2022

Data

Company Financials +
VICI fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health2/6
Dividends2/6

VICI Stock Overview

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace.

VICI Properties Competitors

Price History & Performance

Summary of all time highs, changes and price drops for VICI Properties
Historical stock prices
Current Share PriceUS$30.54
52 Week HighUS$35.69
52 Week LowUS$26.23
Beta1.02
1 Month Change-6.52%
3 Month Change-0.52%
1 Year Change5.06%
3 Year Change32.55%
5 Year Changen/a
Change since IPO65.08%

Recent News & Updates

Sep 20

VICI Properties: 'A Class Of Its Own'

Summary VICI Properties is up a lot lately. Is now a good time to take gains and move on? We think that VICI remains a Strong Buy and explain why. VICI Properties (VICI) is currently one of our largest holdings at High Yield Landlord, representing 9% of our Core Portfolio. We invested so heavily in the company because it has a superior business model that creates far more value than your average REIT. Most REITs buy traditional properties like office buildings or apartment communities through the brokerage market and compete with a vast world of high-net-worth individuals and other institutional investors. There is a lot of capital chasing a limited number of deals and as a result, the bargaining power of these REITs is limited. VICI, on the other hand, targets specialty assets such as casinos and originates its own deals through relationships with casino operators that it has built over the years. Since there is a lack of buyers for these specialty assets, it is getting much better deals with higher cap rates and landlord-friendly lease terms. To give you an example, below you can see how VICI's net lease casinos compare to traditional net lease properties like Walgreen pharmacies: Casino Net Lease Average Net Lease Cap rate 7-9% 5-7% Rent escalations 1.5-2% (or CPI) 1-1.5% Lease Length 15 + 5 10-15 + 5 Normalized Rent Coverage 3-4x 2-3x Occupancy Rate 100% 98-99% NOI Margin 95-100% 90-95% Capex Need Very low Low Barrier-to-Entry High Low Lease Renewal Likelihood Very high High Technology Risk Below average Depends Master Lease Protection Yes Occasional Mission Critical Real Estate Yes Yes, but to a lesser extent Lease expiration in next 5 years 0% for VICI 3-5% per year on average Competition for Investments Low High Investment Spreads Above average Average Iconic Assets Some No Picture of the Caesars Palace - One of VICI's Most Prized Possessions: VICI Properties This unique strategy has resulted in significant market outperformance since its inception, but for a long time, we didn't own it as we were waiting for the right time to initiate a position at an opportunistic price. We got this opportunity in early 2020 and we kept buying more shares until late 2021 as the company kept persistently trading at a discounted valuation. In late 2021, we explained in an article that VICI was in a "class of its own" and that it was arguably the best opportunity in the REIT sector. You can read the article by clicking here. Shortly after, it started surging even as the rest of the REIT market suffered a dip. The large size of our position helped stabilize the value of our portfolio even as other positions lost in value: VNQ data by YCharts That's great, but what's next? Can VICI keep on rising? Or is now a good time to take profits? To answer these questions, we reached out to VICI's CEO, Edward Pitoniak to have a conversation about their current fundamentals, their future prospects, and their current valuation. The conversation wasn't recorded so I cannot share a transcript, but it helped me reassess our investment thesis, and below I share my latest thoughts on the company. The first thing that most investors like to point out about VICI is that its share price is up significantly in the recent past and that its valuation multiple has also expanded. But what many appear to ignore is that this is the result of significant improvements that have enhanced VICI's fundamentals. These improvements have been so significant that the company has described them as "transformational" for the company. Firstly, it closed its merger with MGM Growth Properties, which added 15 trophy assets to its portfolio, greatly improved its diversification, boosted its exposure to the Las Vegas strip, enhanced its scale, and provided another avenue of growth via its new partnership with MGM. Some of the properties that were added to the portfolio include: The MGM Grand: VICI Properties The Mirage: VICI Properties Park MGM: VICI Properties These are all irreplaceable trophy assets in Class A locations, exactly what you would expect one of the highest-quality REITs to own. Then VICI finally also gained an investment grade rating from both, Fitch and the S&P. It also closed a $5 billion raise, which was the single largest IG debt raise by any REIT in history. VICI Properties Then VICI was also added to the S&P 500 (SPY). It is the first REIT in history to go from IPO to S&P 500 inclusion in less than 5 years and for context, there are only 30 REITs in the S&P 500. Quite impressive! And that's not all. Another catalyst that benefits VICI is the high inflation. Unlike most other REITs, VICI is not responsible for any property expenses, not even maintenance. It has true triple net leases and its leases even stipulate that the tenants need to reinvest 1-2% of their revenue annually into the property. At the same time, its rental revenue is rising rapidly because it enjoys CPI adjustments in its leases. Approximately half of its revenue will rise by the greater of 2% or CPI each year with no cap. The other half of its leases typically also have 2% annual rent escalations, and after a certain number of years, they will also include capped CPI adjustments. So VICI is protected on the cost side, but its organic rent growth is now accelerating as a result of the high inflation. VICI Properties And there's still more. The casino sector has continued to institutionalize over the past year as increasingly many investors have taken notice of its spectacular resilience. As a reminder, VICI did not miss a single rent payment even when its properties were forced to shut down in 2020. Casinos are so durable because their real estate is mission-critical to their tenants. If you are the tenant of the Caesars Palace, you cannot just stop paying rent and move elsewhere because there is no other alternative. Elsewhere simply doesn't exist. These are irreplaceable properties that enjoy enormous barrier-to-entry. The property itself is a brand and so you cannot replace it with another. Because the property is so valuable, the landlord is in a position of strength and the tenants cannot play games. If it doesn't pay, the landlord will simply find another tenant to take over the operations and there goes the tenant's business. Until fairly recently, the casino property sector was quite obscure with few willing buyers and many misconceptions about the risk profile of these assets. But this is quickly changing and investors are now more confident than ever before in the casino property sector after witnessing its resilience during the pandemic. It also helps that Blackstone acquired the Bellagio and more recently, Realty Income (O) also closed a major casino investment. On one hand, this could hurt VICI by increasing the competition for new acquisitions, but on the other hand, it also leads to cap rate compression, which increases the net asset value of its shares. Seeking Alpha And then one final point: Las Vegas gained great momentum during the pandemic as a lot of Californians moved there to lower their cost of living and taxes. There is no state income tax in Las Vegas, a lot of great entertainment, a major airport, a lot of jobs, and it is in close proximity to California - explaining why many prefer moving there instead of Texas as an example. Now that many have learned to work remotely, Las Vegas makes a lot more sense as it makes it easier to travel cost-efficiently (major airport with relatively cheap ticket prices), and it also allows you to save money on other expenses and taxes. As a result, Las Vegas was one of the fastest growing cities in recent years and the University of Nevada predicts that Las Vegas and Southern Nevada will be home to 3.3+ million people by 2060 - a 42% increase. That's huge for VICI since 40%+ of its rents come from Las Vegas. So to recap, here are all the improvements that have affected VICI in the recent past: MGP Deal Closure: It closed the biggest transaction in its history, merging with MGP, which added 15 trophy assets to its portfolio, diversified its income stream, increased its quality, and added another avenue for future accretive growth. Investment Grade Rating: With larger scale and diversification, it has now finally convinced the rating agencies to grant it an investment grade rating and has already made good use of it. S&P 500 Inclusion: It was included in the S&P 500 which should diversify its investor base and sustainably improve its cost of capital and improve its credibility among investors, property sellers, and tenants. Accelerating Organic Growth: VICI's CPI adjustments in almost half its leases are proving to be highly beneficial in today's environment. Besides, VICI also has higher fixed rent hikes in its other leases and since it has true triple net lease leases, it is perfectly protected from rising property expenses. Further Institutionalization of the Sector: The casino property is not in its infancy anymore. The pandemic was a great test and it passed it with flying colors. Major other players like Realty Income are now taking notice of it. Las Vegas is a Winner of the Pandemic: Las Vegas could grow by up to 40% by 2060 as increasingly many people move there to increase their quality of life. This is a great catalyst for the long-term growth of VICI's top assets. The point here is that today's VICI is very different from yesterday's VICI. Its share price has risen, but this is well-deserved given all the improvements that it has enjoyed. Next, we review its future prospects. VICI Properties: The Future Today, VICI Properties is a much larger and better company than it was just a year ago. This has pros and cons for the future of the company. On one hand, the company is more defensive than ever. It is better diversified, has even stronger assets, an investment grade rating, and better access to capital, and it has proven its resilience to even the worst possible crisis that could affect experiential assets. So its risk profile has improved considerably, which warrants a higher valuation multiple as investors should require lower risk premiums/returns from a safer investment. But on the other hand, since VICI is now a lot bigger and therefore, its future growth via acquisitions may slow down going forward. The impact of a new acquisition simply isn't as large when you have a $30 billion market as when you have a $10 billion market cap. All else held equal, slower external growth should lead to lower returns going forward. That's the dilemma that most investors are today facing. They recognize that VICI is safer than ever, but they also realize that its future growth may not keep up with that of the past. I have had some concerns about how VICI's size could impact its future growth prospects and so we spent a lot of time discussing this on my call with the CEO of the company. My takeaway is that yes, growth may slow down a bit as VICI's recent growth has been exceptional, but its future growth is still likely to remain more than enough to support its current valuation, and perhaps even justify some more upside (more on this later). Let's break it down component by component to better understand VICI's future growth prospects. Firstly, let's quickly revisit the internal growth prospects, which we already discussed briefly earlier. VICI has the best organic rent growth prospects of all net lease REITs, and some of the best of the entire REIT sector, because it has no capex or property expenses, and a large portion of its leases enjoys annual CPI adjustments. I don't have a crystal ball and so I can't tell you what the inflation rate will be in the coming months and year, but assuming it remains high, VICI could deliver ~4-5% FFO per share growth from the rent increases alone. This will come back down to ~3% once inflation pressures cool off, but still, that's above average for a net lease REIT and importantly, it is extremely consistent, through economic expansions and recessions, so there is a real compounding effect, and it is real organic growth since VICI does not have to reinvest in its properties to grow its rents. VICI Properties So before even discussing VICI's future external growth prospects, it is good to take a step back and recognize that a large part of VICI's growth is already secured as it comes from contractual rent increases which are not dependent on its size. This organic growth is above average. Now that this is clear, we can discuss the more complex topic of external growth. REITs like VICI seek to grow externally by growing their portfolio of investments when their cost of capital is inferior to their expected returns on newly acquired assets. If there is a spread, then you can raise capital, invest it, and it grows FFO on a per share basis. All else held equal, size hurts external growth because the larger you are, the more assets you need to acquire to keep the ball rolling. VICI's market cap has now exceeded $30 billion and it is causing many to worry about its future external growth prospects. Is VICI getting big? Yes, it is. But the more important question is whether it is getting too big? Before my talk with the CEO, I had my concerns, but following it, I am less worried, and here are six reasons why: Reason #1: VICI is buying very high-ticket properties that truly move the needle Comparatively, VICI is still in a much better place than most other large REITs to keep pushing for attractive external growth rates. Below, we look at 3 other REITs that are much larger than VICI: Realty Income has a $45 billion market cap and it owns 11,400 properties. Public Storage (PSA) has a $60 billion market cap and it owns 2,600 properties. Prologis (PLD) has a $100 billion market cap and it owns 4,732 properties. VICI has a $33 billion market cap, so about 1/3 the size of Prologis, and nearly 30% smaller than even Realty Income. But the interesting thing to note here is that VICI achieved this market cap by owning just 43 properties! That's nearly $1 billion of market cap per property on average, which is massive. Prologis must acquire 40x more properties on average to keep the ball rolling and it is still able to generate attractive external growth rates. The point here is that VICI's size actually isn't that big when you consider that it is buying high-ticket properties that truly move the needle. To give you an example, the Venetian in Las Vegas, a single property cost VICI $4 billion. Realty Income would need to buy ~3,000 properties to allocate an equivalent amount of capital, which is of course far more challenging, and yet, it is doing it quite successfully. So simply looking at the market cap of the company can be quite misleading. VICI is growing externally by acquiring properties that are far more valuable than what other large REITs are acquiring. If you look at VICI's size based on the number of properties that it owns, which is 43, VICI actually isn't such a big REIT. Reason #2: Unlike other REITs, VICI has significant reinvestment opportunities in its existing properties VICI owns extremely valuable real estate. It owns quite literally some of the most economically-productive real estate in the world and with that, comes significant reinvestment opportunities. VICI Properties At times, its tenants may decide to redevelop portions of their properties to maximize profits, and VICI will then provide capital to them in exchange for growing rents. VICI calls this its "Property Growth Fund" and it serves to fund "same-store" capital for its tenants. In addition to that, VICI also owns some 27 acres of undeveloped land that's very well located. It is adjacent to the LINQ and behind Planet Hollywood as well as 7 acres of Strip frontage at the Caesars Palace: VICI Properties Someday, this will be developed and it will require a lot of capital, providing a predictable pipeline of reinvestment opportunities for VICI. Reason #3: Unlike other REITs, VICI also has valuable ROFRs & Put/Call Agreements to buy additional properties at high cap rates VICI has entered into several rights of first refusal and put / call agreements that provide an embedded growth pipeline of "low hanging fruits" for VICI and they are quite significant in size and accretion potential: Harrah's Hoosier Park and Horseshoe Indianapolis: VICI has the right to call Harrah's Hoosier Park and Horseshoe Indianapolis from Caesars at a 13.0x multiple (7.7% cap rate) of the initial annual rent of each facility in a sale-leaseback transaction before December 31, 2024. Caesars Forum Convention Center: VICI has the right to call the Caesars Forum Convention Center from Caesars at a 13.0x multiple (7.7% cap rate) of the initial annual rent in a sale-leaseback transaction between September 18, 2025, and December 31, 2026. Then it has rights of first refusal agreements on a bunch of properties, subject to some conditions. This includes two properties of the following: Flamingo Las Vegas, Bally's Las Vegas, Paris Las Vegas, Planet Hollywood Resort & Casino, and the LINQ Hotel & Casino. In addition to that, it also has ROFRs on the Horseshoe Casino Baltimore and the Caesars Virginia development projects. These are large potential deals down the line for VICI and now that it has access to relatively cheap capital, some of these deals would also be very accretive. Reason #4: The international casino market is large and completely untapped VICI has already exhausted a lot of casino investment opportunities in the US, and the whole sector is slowly also becoming more competitive with other buyers taking notice of these opportunities. That does not mean that VICI's casino acquisitions in the US are coming to an end. In fact, VICI just announced another casino investment at an attractive 7.6% cap rate. But it is fair to say that the opportunity set is not the same as it was just 5 years ago. At the same time, it is important to remember that there are also major casinos elsewhere in the world and this sector is still completely untapped outside of the US. There are REITs in over 30 countries but there is not a single casino REIT outside of the US. VICI is the only one that's now getting to a size that will open doors for foreign casino investments and those are expected to take place already in the near term. Consider some of these popular casino destinations outside of the US: Niagara Falls, Canada Salzburg, Austria Nassau, Bahamas Aruba in the Caribbean Macau, China Klerksdorp, South Africa Lisbon, Portugal Singapore Sydney, Australia Monte Carlo, Monaco

Sep 08

VICI Properties raises dividend by 8% to $0.39

VICI Properties (NYSE:VICI) declares $0.39/share quarterly dividend, 8.3% increase from prior dividend of $0.36. Forward yield 4.67% Payable Oct. 6; for shareholders of record Sept. 22; ex-div Sept. 21.

Aug 11

VICI Properties: What To Do Following This Bull Run

VICI had outstanding business growth during the most recent quarter. On a per-share basis, results were less intriguing, although still solid. VICI has become pricey and is now trading at a premium compared to the historic norm. Shares have risen by a lot this year, which is why they aren't a buy any longer. Some investors may want to consider locking in gains. Article Thesis VICI Properties (VICI) is a quality REIT that has performed well throughout the pandemic and that has made a range of major deals in the recent past, including the MGM Growth Properties acquisition that closed during Q2. The company's results for the second quarter were very solid as well, but the company has now become somewhat pricey, following a strong year-to-date performance. Some investors may want to consider locking in gains, e.g. by using an options strategy called covered call writing. VICI Continues To Deliver Solid Results During its fiscal second quarter, VICI Properties performed well. The company generated revenue of $660 million, which was up by a massive 76% year over year, and which beat the consensus estimate by more than 10%. It should be noted that this growth was driven by acquisitions to a large degree -- underlying/comparable growth was weaker. When VICI Properties makes acquisitions, these are generally either financed via debt or via the issuance of new shares. In the case of acquisitions being financed by debt, interest expenses for the company climb, which is why additional revenue or gross profit does not flow through to the bottom line completely. In the case of acquisitions being financed by the issuance of new shares, company-wide profits are distributed over a larger number of outstanding shares, which is why earnings per share are growing at a slower pace compared to VICI Properties' overall net profit. Management knows this and only makes deals where profits on a per-share basis have a high chance of rising despite these headwinds, but investors naturally can't expect earnings per share or FFO per share growth at a similar level to the company's outstanding revenue growth rate in an acquisition-heavy quarter. In Q2, the company managed to grow its funds from operations per share by 3.7% year over year, as a 68% company-wide FFO increase was mostly offset by a big increase in VICI Properties' share count. FFO per share growth of around 4% is far from bad, especially for an income vehicle such as a REIT that offers a solid 4%+ dividend yield. But a 4% FFO per share growth rate also isn't too exciting, at least relative to the way higher company-wide revenue and profit growth rate. Looking toward the second half of the year, VICI Properties' management believes that performance will be solid and relatively on par with what we have seen during the most recent quarter. The company guides towards funds from operations of $1.67 billion, which equates to funds from operations of around $1.90 on a per-share basis. The company generated adjusted funds from operations per share of $1.82 during 2021, thus the current guidance implies a growth rate of around 4% -- again, that's pretty solid for a REIT or income stock in general, but it's not extraordinary. VICI's Longer-Term Outlook Is Healthy, But Valuation Has Run Up VICI is an absolute leader in the gaming real estate space and benefits from scale and cost of capital advantages versus smaller peers. VICI Properties is well-positioned to continue to consolidate the space, by making either larger takeovers such as the recent MGM Growth Properties deal or by making tuck-in acquisitions of smaller assets. I do believe that M&A will be a positive factor for the company's future growth, although it's hard to prognosticate how many deals, and at what size, the company will make over the next couple of years. Organic growth is another driving force for higher FFO in the coming years. VICI Properties has locked in rent increases via the contracts it has with its tenants. A large portion of those contracts is CPI-linked, although unfortunately oftentimes with a cap in place. The MGM Grand/Mandalay Bay rents, for example, are CPI-linked with a cap of 3.0%. While those caps seemed irrelevant a couple of years ago when inflation was running in the 2% range, they are a disadvantage now -- CPI is running with a 9% handle, but VICI Properties only gets a 3% rent increase due to the cap it agreed to when crafting a contract for this property. Organic rent growth will thus likely be somewhat subdued, relative to inflation, in the foreseeable future, although VICI Properties still will benefit from rising rents that should lift its funds from operations, all else equal. Between M&A and some organic growth, VICI will continue to deliver reliable revenue and FFO growth, I believe. Analysts are currently predicting that the FFO per share growth rate will be in the 15% range next year, and around 4% in the year after. When we include this year's forecasted FFO growth, that comes out to an average 7% annual growth rate, which is quite attractive. It remains to be seen whether next year's increase will really be as large as expected. The capturing of synergies following the MGM Growth Properties acquisition could allow for an above-average growth rate for sure, but actual growth may still be below the 15% level. Overall, I do believe that VICI has a very solid growth outlook and that investors can expect reliable performance from this strong management team that has been executing well throughout the pandemic. But not every company with a solid outlook is necessarily a buy all of the time. Valuation has to be considered as well, and VICI has become somewhat pricey in recent months. While I was pretty bullish on VICI earlier this year, as shown in this article from March, I'm less bullish now -- the company has offered a total return of 30% in those five months, whereas the market has pulled back by 8% over the same time, which means that VICI has outperformed the broad market by around 40% since that article was published. Naturally, I'm less bullish now, following this outsized gain relative to the broad market. VICI's valuation has also climbed considerably in that time frame: VICI EV to EBITDA (Forward) data by YCharts While VICI Properties traded at a below-average valuation earlier this year, shares have now climbed to an above-average valuation. Today, VICI Properties is trading with an enterprise value to EBITDA multiple of around 21. That's 15%-20% higher than the longer-term median EV/EBITDA multiple. In other words, VICI is trading on the expensive side, relative to the company's history. An EV/EBITDA multiple above 20 also is pricey in absolute terms, I believe. Naturally, I think it's best to buy when valuations are low in absolute terms and relative to historical trading patterns. That's not the case today, as we can easily see above, although it was the case at the beginning of the year. With shares trading at a premium relative to what the company's trading history shows, some investors may want to think about locking in gains.

Shareholder Returns

VICIUS REITsUS Market
7D0.2%-4.1%-2.5%
1Y5.1%-20.4%-23.2%

Return vs Industry: VICI exceeded the US REITs industry which returned -20.4% over the past year.

Return vs Market: VICI exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is VICI's price volatile compared to industry and market?
VICI volatility
VICI Average Weekly Movement3.0%
REITs Industry Average Movement4.2%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: VICI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: VICI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016129Ed Pitoniakhttps://www.viciproperties.com

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties’ national, geographically diverse portfolio consists of 29 gaming facilities comprising over 48 million square feet and features approximately 19,200 hotel rooms and more than 200 restaurants, bars and nightclubs. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos Inc., Hard Rock International, JACK Entertainment and Penn National Gaming, Inc. VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip.

VICI Properties Fundamentals Summary

How do VICI Properties's earnings and revenue compare to its market cap?
VICI fundamental statistics
Market CapUS$29.41b
Earnings (TTM)US$626.02m
Revenue (TTM)US$1.85b

47.0x

P/E Ratio

15.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VICI income statement (TTM)
RevenueUS$1.85b
Cost of RevenueUS$40.48m
Gross ProfitUS$1.81b
Other ExpensesUS$1.19b
EarningsUS$626.02m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.65
Gross Margin97.82%
Net Profit Margin33.78%
Debt/Equity Ratio62.0%

How did VICI perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

142%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VICI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VICI?

Other financial metrics that can be useful for relative valuation.

VICI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue23.6x
Enterprise Value/EBITDA40.1x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does VICI's PE Ratio compare to its peers?

VICI PE Ratio vs Peers
The above table shows the PE ratio for VICI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average36.3x
DLR Digital Realty Trust
22x18.3%US$29.1b
WY Weyerhaeuser
8.6x-43.9%US$21.1b
SBAC SBA Communications
86.5x14.0%US$30.7b
EXR Extra Space Storage
26x3.2%US$24.3b
VICI VICI Properties
45.9x30.5%US$28.7b

Price-To-Earnings vs Peers: VICI is expensive based on its Price-To-Earnings Ratio (45.9x) compared to the peer average (35.8x).


Price to Earnings Ratio vs Industry

How does VICI's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: VICI is expensive based on its Price-To-Earnings Ratio (45.9x) compared to the US REITs industry average (25.8x)


Price to Earnings Ratio vs Fair Ratio

What is VICI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VICI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio47x
Fair PE Ratio62.9x

Price-To-Earnings vs Fair Ratio: VICI is good value based on its Price-To-Earnings Ratio (45.9x) compared to the estimated Fair Price-To-Earnings Ratio (62.8x).


Share Price vs Fair Value

What is the Fair Price of VICI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VICI ($29.85) is trading below our estimate of fair value ($77.18)

Significantly Below Fair Value: VICI is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is VICI Properties forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


30.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VICI's forecast earnings growth (30.5% per year) is above the savings rate (1.9%).

Earnings vs Market: VICI's earnings (30.5% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: VICI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VICI's revenue (11.8% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: VICI's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VICI's Return on Equity is forecast to be low in 3 years time (9.4%).


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Past Performance

How has VICI Properties performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


35.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VICI has high quality earnings.

Growing Profit Margin: VICI's current net profit margins (33.8%) are lower than last year (85.9%).


Past Earnings Growth Analysis

Earnings Trend: VICI's earnings have grown significantly by 35.7% per year over the past 5 years.

Accelerating Growth: VICI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VICI had negative earnings growth (-50.2%) over the past year, making it difficult to compare to the REITs industry average (45.8%).


Return on Equity

High ROE: VICI's Return on Equity (2.9%) is considered low.


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Financial Health

How is VICI Properties's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VICI's short term assets ($35.0B) exceed its short term liabilities ($557.7M).

Long Term Liabilities: VICI's short term assets ($35.0B) exceed its long term liabilities ($14.6B).


Debt to Equity History and Analysis

Debt Level: VICI's net debt to equity ratio (59.3%) is considered high.

Reducing Debt: Insufficient data to determine if VICI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VICI's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: VICI's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


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Dividend

What is VICI Properties's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.11%

Current Dividend Yield

Dividend Yield vs Market

VICI Properties Dividend Yield vs Market
How does VICI Properties dividend yield compare to the market?
SegmentDividend Yield
Company (VICI Properties)5.1%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (REITs)4.1%
Analyst forecast in 3 Years (VICI Properties)5.1%

Notable Dividend: VICI's dividend (5.23%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: VICI's dividend (5.23%) is in the top 25% of dividend payers in the US market (4.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VICI has been paying a dividend for less than 10 years.

Growing Dividend: VICI's dividend payments have increased, but the company has only paid a dividend for 4 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (142.2%), VICI's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (104.6%), VICI's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Ed Pitoniak (66 yo)

5yrs

Tenure

US$7,662,894

Compensation

Mr. Edward Baltazar Pitoniak, also known as Ed, has been the Chief Executive Officer and a Director of VICI Properties Inc. since October 6, 2017. Mr. Pitoniak served as Vice Chairman of Realterm, a privat...


CEO Compensation Analysis

Ed Pitoniak's Compensation vs VICI Properties Earnings
How has Ed Pitoniak's remuneration changed compared to VICI Properties's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$626m

Mar 31 2022n/an/a

US$984m

Dec 31 2021US$8mUS$900k

US$1b

Sep 30 2021n/an/a

US$1b

Jun 30 2021n/an/a

US$1b

Mar 31 2021n/an/a

US$1b

Dec 31 2020US$7mUS$875k

US$892m

Sep 30 2020n/an/a

US$702m

Jun 30 2020n/an/a

US$448m

Mar 31 2020n/an/a

US$371m

Dec 31 2019US$6mUS$765k

US$546m

Sep 30 2019n/an/a

US$590m

Jun 30 2019n/an/a

US$575m

Mar 31 2019n/an/a

US$562m

Dec 31 2018US$4mUS$725k

US$524m

Sep 30 2018n/an/a

US$424m

Jun 30 2018n/an/a

US$294m

Mar 31 2018n/an/a

US$155m

Dec 31 2017US$2mUS$170k

US$43m

Compensation vs Market: Ed's total compensation ($USD7.66M) is below average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VICI's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: VICI's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:VICI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Mar 22BuyUS$100,145Michael RumbolzIndividual3,725US$26.89
06 Jan 22BuyUS$2,569Gabriel WassermanIndividual88US$29.19
24 Nov 21BuyUS$124,520Samantha GallagherIndividual4,400US$28.30
24 Nov 21BuyUS$250,772John W. PayneIndividual8,830US$28.40
04 Nov 21BuyUS$99,450Samantha GallagherIndividual3,400US$29.25

Ownership Breakdown

What is the ownership structure of VICI?
Owner TypeNumber of SharesOwnership Percentage
State or Government420,0750.04%
Individual Insiders1,718,3970.2%
Institutions1,028,342,98799.8%

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 53.1%.


Top Shareholders

Top 25 shareholders own 81.01% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
19.36%
Capital Research and Management Company
186,488,333$5.7b38.71%0.39%
14.59%
The Vanguard Group, Inc.
140,537,743$4.3b42.31%0.1%
9.95%
BlackRock, Inc.
95,846,408$2.9b64.75%0.07%
5.38%
State Street Global Advisors, Inc.
51,778,603$1.6b116.79%0.09%
3.1%
Wellington Management Group LLP
29,899,697$913.1m-4.4%0.17%
2.99%
Pacific Investment Management Company LLC
28,821,045$880.2m5.21%4.05%
2.9%
Principal Global Investors, LLC
27,955,921$853.8m42.68%0.59%
2.26%
Geode Capital Management, LLC
21,723,555$663.4m104.15%0.09%
2.24%
Managed Account Advisors LLC
21,610,573$660.0m-2.6%0.19%
2.09%
FMR LLC
20,119,662$614.5m-13.66%0.06%
1.74%
Barrow, Hanley, Mewhinney & Strauss, LLC
16,726,220$510.8m381.71%1.94%
1.55%
Invesco Ltd.
14,927,797$455.9m15.67%0.16%
1.42%
PGGM
13,668,777$417.4m0%2.47%
1.22%
Legal & General Investment Management Limited
11,769,279$359.4m86.42%0.11%
1.17%
Charles Schwab Investment Management, Inc.
11,259,438$343.9m80.42%0.09%
1.15%
Dimensional Fund Advisors LP
11,097,312$338.9m61.99%0.08%
1.09%
Northern Trust Global Investments
10,544,193$322.0m118.85%0.07%
1.06%
Bank of America Corporation, Asset Management Arm
10,221,365$312.2m2908.6%0.13%
0.94%
Janus Henderson Group plc
9,013,108$275.3m-17.06%0.16%
0.94%
Massachusetts Financial Services Company
9,005,442$275.0m-6.69%0.07%
0.91%
UBS Asset Management
8,761,373$267.6m82.28%0.05%
0.89%
J.P. Morgan Asset Management, Inc.
8,567,180$261.6m-4.57%0.05%
0.72%
BNY Mellon Asset Management
6,921,008$211.4m179.09%0.05%
0.7%
RREEF America L.L.C.
6,779,200$207.0m593.31%1.02%
0.64%
Nikko Asset Management Co., Ltd.
6,184,609$188.9m32.9%0.09%

Company Information

VICI Properties Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: VICI Properties Inc.
  • Ticker: VICI
  • Exchange: NYSE
  • Founded: 2016
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Implied Market Cap: US$29.413b
  • Shares outstanding: 963.09m
  • Website: https://www.viciproperties.com

Number of Employees


Location

  • VICI Properties Inc.
  • 535 Madison Avenue
  • 20th Floor
  • New York
  • New York
  • 10022
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VICINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2017
1KNDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2017
VICI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2017

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.