VICI Properties Slotted as Top REIT Pick by Jefferies
VICI Properties (NYSE:VICI), the largest cassino landlord, earned some sell-side kudos to kick-off 2023.
In a notation to clients today, Jefferies analyst Jonathan Peterson anointed the existent acres investment bank (REIT) a spinning top pluck for 2023 while placing a $43 price butt on the shares. That implies upside of to a greater extent than 30% from the stock’s final closure damage of 2022.
We anticipate the growth trends to go on its growing route as the be of traditional debt is on par with triple-net engage financing,” wrote Peterson. “Present levels of 15.9x 2023E earnings before interest, taxes, wear and tear and amortization (EBITDA) and 4.77% yield are attractive, precondition the farther built-in growth from split escalators based on renter trading operations and pending acquisitions non in time full reflected inward estimates.”
VICI, which owns the attribute assets of Caesars Palace on the Las Vegas Strip, is coming away a banner showing inward 2022. The caudex gained 7.61% lastly yr while easily outpacing the S&P 500 and broader real estate indexes.
VICI a Growth Name inward Defensive Sector
REITs are usually viewed as defensive or note value equities and spell VICI features some of those traits, its growing flight is hard to ignore.
Through a serial of transactions over the yesteryear 2 years, the New York-based companion became the largest experiential REIT in the US as swell as the biggest proprietor of property on the Las Vegas Strip. Previously, many of VICI’s acquisitions were funded via working capital raises — debt or portion sales — but as Jefferies’ Peterson points out, the companionship is at present paying for deals with hard cash on hand. That’s a substantial plus because it way depress funding costs against the background of luxuriously interest rates.
Speaking of transactions, VICI was especially fussy on that face last-place month, announcing the purchase of the prop assets of the Fitz Casino & Hotel in Tunica, Miss. and the WaterView Casino & Hotel inwards Vicksburg, Miss.
VICI’s other Dec deals included tidings that it’s providing financing for the Fountainbleu on the Strip, a unexampled triple-net charter arrangement with Hard Rock International pertaining to the Mirage Las Vegas, the purchase of the 49.9% of the Mandalay Bay and MGM Grand on the Strip that it antecedently didn’t own a financing correspondence with Century Casinos pertaining to deuce gaming venues inwards Missouri.
What 2023 Could Look Like for VICI
VICI currently owns the attribute assets of 45 casinos crossways the US as good as 4 high-end golf game courses. While the REIT is most ofttimes associated with the gaming industry, it has provided funding to other tourist-driven properties.
“VICI Properties intends to acquire its across the nation various portfolio of tangible landed estate past partnering with leading existential operators and capitalizing on strategic maturation opportunities through and through extremely complementary single-asset and portfolio acquisitions,” according to the company.
VICI hasn’t revealed exactly what its 2023 plans, but it could live a participant for more gaming existent demesne as operators looking at to monetise those assets. Additionally, an activist investor is pushing amusement green manipulator Six Flags to sell its existent demesne and highlighted VICI as a potential suer for those put down holdings.