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
|Historical stock prices|
|Current Share Price||US$34.81|
|52 Week High||US$35.05|
|52 Week Low||US$26.23|
|1 Month Change||10.72%|
|3 Month Change||26.86%|
|1 Year Change||14.73%|
|3 Year Change||68.49%|
|5 Year Change||n/a|
|Change since IPO||88.16%|
Recent News & Updates
VICI Properties: Wait For Shares To Drop Below $30
VICI is a large casino REIT, with a large portfolio with several trophy properties in Las Vegas along with numerous regional casinos. VICI has bounced around between the high-20 and low-30 range for most of 2022. I will be looking to buy below $30 per share. Shares currently trade at 17.1x price/FFO with a dividend yield of 4.6%. If the pattern holds, we should see a dividend hike with the next quarterly dividend in the fall. Over the last couple of years, I have switched my investment strategy from mainly buying fast-growing tech companies to looking for dividend growth opportunities. While the first half of 2022 has been a rough stretch for investors, I know for a fact that I would be feeling much more pain if I hadn’t been buying income-focused investments for most of 2021 and 2022. One of these income investments that made its way onto my radar in the last year is VICI Properties (VICI). VICI is a large casino REIT with a portfolio dominated by well-known Las Vegas casinos. This article will be an update on my coverage earlier this year in January. Investment Thesis VICI is a unique REIT on the public markets. The company owns many well-known trophy assets on the Las Vegas strip, as well as regional properties around the US. Investors should be aware of tenant concentration, as Caesars (CZR) and MGM (MGM) make up nearly 80% of the rent roll. Shares are trading at or near fair value right now, with a price/FFO multiple of 17.1x. For investors looking to start a long position, I would be patient and look for a dip below $30 per share. Either way, investors can collect a 4.6% dividend that is set to grow for years to come. A Brief Overview Of VICI Most triple net REITs own properties that many of us visit on a weekly basis, from grocery stores to restaurants. VICI is playing a whole different ballgame and has bought up a good chunk of the Las Vegas strip. Since my last article, VICI closed the MGM Properties acquisition, adding to an already large portfolio of casinos. VICI Rent Roll (VICI Properties) As you can see, VICI’s tenants are a who’s who list of the large operators of casino properties in the US. The portfolio is made up of approximately 45% Vegas properties and 55% regional assets. Caesars and MGM dominate the portfolio, with nearly 80% of rent coming from those two tenants. Investors should be aware of the tenant concentration, but VICI has a dominant presence in Las Vegas between those two groups and the Venetian, which is another 10% of rent. Viva Las Vegas (VICI Properties) Digging a little deeper on VICI’s Las Vegas footprint shows several things. They say a picture is worth 1,000 words, and it certainly applies here when it comes to VICI’s dominance on the Las Vegas strip. If you have spent any time in a major casino in Vegas, you have probably spent time (and money) at one or more of VICI’s properties. On top of all the trophy assets, they also have some land on the strip that is prime real estate. You can get all of this at a decent valuation, but I think patient investors might be able to buy shares at a slightly cheaper price than you can get them today. Valuation Shares of VICI have spent most of the year bouncing around in between the high-20 and low-30 range. With shares above $31, the price/FFO is currently 17.1x, which is slightly above the 16.4x average multiple of the last couple of years. I think it is possible that we see multiple expansion over the longer term, but I’m not a buyer right now at current prices. Price/FFO (FAST Graphs) I think it’s entirely possible that shares head towards a 20x FFO multiple, but with market weakness in the short term, I think there could be a better entry point in the next couple of months. While the FFO multiple doesn’t show much undervaluation right now, investors in VICI have experienced solid dividend growth over the last couple of years. An Incoming Dividend Hike
VICI Properties: I Am Betting On This REIT
VICI is a pure-play gaming and hospitality REIT with an impressive portfolio of properties. After recently closing its acquisition of MGM Growth Properties, VICI now has one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations. This gaming REIT is no gamble.
|VICI||US REITs||US Market|
Return vs Industry: VICI exceeded the US REITs industry which returned -5% over the past year.
Return vs Market: VICI exceeded the US Market which returned -13.5% over the past year.
|VICI Average Weekly Movement||4.0%|
|REITs Industry Average Movement||4.3%|
|Market Average Movement||7.9%|
|10% most volatile stocks in US Market||17.0%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: VICI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: VICI's weekly volatility (4%) has been stable over the past year.
About the Company
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
|VICI fundamental statistics|
Is VICI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|VICI income statement (TTM)|
|Cost of Revenue||US$40.48m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.65|
|Net Profit Margin||33.78%|
How did VICI perform over the long term?See historical performance and comparison
4.1%Current Dividend Yield
Is VICI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
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.
|What is VICI's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does VICI's PE Ratio compare to its peers?
|VICI PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DLR Digital Realty Trust
EXR Extra Space Storage
SBAC SBA Communications
VICI VICI Properties
Price-To-Earnings vs Peers: VICI is expensive based on its Price-To-Earnings Ratio (53.6x) compared to the peer average (44.5x).
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 (53.6x) compared to the US REITs industry average (31.2x)
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.
|Current PE Ratio||53.6x|
|Fair PE Ratio||62.5x|
Price-To-Earnings vs Fair Ratio: VICI is good value based on its Price-To-Earnings Ratio (53.6x) compared to the estimated Fair Price-To-Earnings Ratio (62.5x).
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 ($34.81) is trading below our estimate of fair value ($77.03)
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 less than 20% higher than the current share price.
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How is VICI Properties forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: VICI's forecast earnings growth (29.3% per year) is above the savings rate (1.9%).
Earnings vs Market: VICI's earnings (29.3% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: VICI's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: VICI's revenue (11.4% per year) is forecast to grow faster than the US market (7.9% per year).
High Growth Revenue: VICI's revenue (11.4% 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 (12.5%).
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How has VICI Properties performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
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 (48.7%).
Return on Equity
High ROE: VICI's Return on Equity (2.9%) is considered low.
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How is VICI Properties's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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 ($14.6B).
Debt to Equity History and Analysis
Debt Level: VICI's net debt to equity ratio (59.3%) is considered high.
Reducing Debt: Insufficient data to determine if VICI's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: VICI's debt is not well covered by operating cash flow (10.5%).
Interest Coverage: VICI's interest payments on its debt are not well covered by EBIT (2.5x coverage).
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What is VICI Properties's current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: VICI's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.51%).
High Dividend: VICI's dividend (4.14%) is in the top 25% of dividend payers in the US market (4.09%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, VICI has been paying a dividend for less than 10 years.
Growing Dividend: VICI's dividend payments have increased, but the company has only paid a dividend for 4 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (142.2%), VICI's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (96.5%), VICI's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ed Pitoniak (66 yo)
Mr. Edward Baltazar Pitoniak, also known as Ed, has been the Chief Executive Officer and a Director of VICI Properties Inc. since October 6, 2017. Mr. Pitoniak served as Vice Chairman of Realterm, a privat...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD7.66M) is below average for companies of similar size in the US market ($USD13.03M).
Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.
Experienced Management: VICI's management team is considered experienced (4.2 years average tenure).
Experienced Board: VICI's board of directors are considered experienced (4.8 years average tenure).
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
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 79.3%.
VICI Properties Inc.'s employee growth, exchange listings and data sources
- Name: VICI Properties Inc.
- Ticker: VICI
- Exchange: NYSE
- Founded: 2016
- Industry: Specialized REITs
- Sector: Real Estate
- Implied Market Cap: US$33.525b
- Shares outstanding: 963.09m
- Website: https://www.viciproperties.com
Number of Employees
- VICI Properties Inc.
- 535 Madison Avenue
- 20th Floor
- New York
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/10 00:00|
|End of Day Share Price||2022/08/10 00:00|
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.