Why I like VICI Properties
VICI properties A net lease REIT play with single tenant freestanding properties. Properties include large companies such as McDonalds $MCD, Dollar General $DG, Walgreens $WBA, 7/11’s and other convenience stores.
- Hugely favorable leases to the Landlord with long term contracts (10-15 years)
- Permanent and automatic rate increases (1-2%) ANNUALLY
- Tenants pay for all expenses and repairs
These properties are HIGHLY unaffected by recessions, with a large amount of the businesses being considered ‘essential’ and very high volume.
VICI also increased their dividends by 11% during 2020. When a large number of Americans were asking for rent extensions, these companies continued to pay rent on time despite some scaling back on employment.
Specializing in net lease Casinos, they also announced a huge acquisition of The Venetian in Las Vegas for $4B.
With restrictions lifting and travel starting to spike, I personally believe that VICI being priced at 14x FFO when Realty Income is priced at 19x FFO is very low. Increasing revenue for owned companies will inevitably hike rent prices. Current trade price is 28.84
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April 3, 2021 at 10:03AM