VICI: Reaping the Benefits of Las Vegas Boom

Last Updated: 13. Dezember 2023By

Today I would like to take an interesting look at VICI Properties. For a change I am going to focus on the topic of real estate funds today, as VICI Properties presents an exceptional investment opportunity. The company not only owns a large part of the Las Vegas Strip, but is also rapidly expanding beyond the city limits. Let’s find out together why this stock could be a promising investment.

Las Vegas: More than Just Gambling Las Vegas, the city of big dreams and deep drops, is undergoing a transformation. With the construction of a state-of-the-art arena, the influx of sports teams to the city, and the award of the 2024 Super Bowl, Las Vegas is more than just a center of gambling. These developments bring significant benefits to companies like VICI Properties, which own strategic real estate in this dynamic city.

VICI Properties: Unique Strategy and Solid Foundations VICI is characterized by a concentrated tenant base and long-term leases. With a dividend yield of 4.6% in 2022 and a portfolio of 54 casinos and 38 family entertainment centers, VICI offers an attractive combination of growth and stability. The tenants, including heavyweights like Caesars Entertainment and MGM Resorts, are key to VICI’s success. The unique properties and triple-net leases reduce risk and increase inflation protection.

Expansion beyond Las Vegas Also interesting is VICI’s expansion beyond Las Vegas. With acquisitions such as Bowlero’s 38 Bowling Entertainment Centers and the investment in luxury wellness company CanyonRanch, VICI is diversifying its portfolio and opening up new growth opportunities.

VICI’s Future Prospects Despite the challenges of the macroeconomic environment, VICI remains resilient. With a quarterly dividend increase and an expected 11% annual growth in operating earnings per share, VICI is positioning itself as a strong player among REITs.

For me, VICI Properties is the top pick among US real estate funds. With its special niche, promising growth prospects, and high dividend, VICI is an attractive investment. As a long-term shareholder, I am convinced of the strength and potential of this REIT.