VICI Properties: 6.8% Yield, Casino Buyouts, And A 30-40% Valuation Discount (Archive)
Caesars buyout may force property sales, letting VICI diversify tenants via new sale-leasebacks.
This 5-Minute Pitch was originally published on Seeking Alpha. It is shared here to showcase my work and track record. I also publish full 5-Minute Pitches on this site. This will be behind a paywall, accessible to Hunter Tier members.
Elevator Pitch
- VICI Properties offers a high, well-covered dividend and strong cash flows, making it attractive for income-focused investors.
- The Caesars buyout could trigger property divestitures and new sale-leasebacks, reducing VICI’s tenant concentration risk.
- VICI’s 6.84 percent forward dividend yield is well covered by AFFO with a 1.36 times coverage ratio.
- Most of VICI’s debt is fixed rate with long maturities, limiting exposure to expected interest rate increases.
- VICI trades at a 30% to 40% discount to sector AFFO and FFO multiples and sits at a major technical support.
Read the full article here.
