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Investing.com - Citizens JMP analyst Mitch Germain has reiterated a Market Outperform rating and $35.00 price target on VICI Properties Inc. (NYSE:VICI), a prominent player in the Specialized REITs industry with a market capitalization of $34.6 billion. The stock currently trades near its 52-week high of $34.29, showing strong momentum. InvestingPro analysis reveals 8 additional key insights about VICI’s market position and growth potential.
VICI Properties has demonstrated an active start to 2025, participating in two high-profile funding transactions, including a mezzanine loan purchase for a mixed-use development in Beverly Hills and involvement in a ground-up casino development in Northern California announced in early April.
These transactions total $810 million, with approximately half funded as of late April, according to the analyst. As of the first quarter end, VICI had $465 million in future funding commitments, primarily with experiential partners including Great Wolf, Cabot (NYSE:CBT), Kalahari, and Canyon Ranch.
The company’s current $2 billion loan book yields an average of 9.2%, which is significantly higher than cap rates on traditional acquisitions. VICI also has allocated an additional $300 million of capital to the Venetian refresh project, available at the tenant’s discretion.
VICI maintains a put/call agreement for Caesars (NASDAQ:CZR) Forum Convention Center exercisable between September 2025 and December 2028, along with numerous ROFR/ROFO agreements for gaming and experiential assets.
In other recent news, VICI Properties Inc. reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.51, which did not meet the forecasted $0.68. However, the company’s revenue for the quarter was strong, reaching $984.2 million and surpassing the expected $974.76 million. Despite the EPS miss, VICI raised its 2025 adjusted funds from operations (AFFO) guidance to a range of $2.47-$2.50 billion, indicating confidence in its future performance. The company also successfully refinanced its 2025 debt maturities, which enhances its financial stability.
In analyst updates, Citi revised its price target for VICI Properties to $36 from $39 while maintaining a Buy rating. This adjustment reflects updated assumptions about operating performance and interest rates following the company’s recent earnings report. The analysts at Citi have kept their second-quarter 2025 estimated AFFO steady at $0.58 and slightly increased the full-year 2025 AFFO forecast to $2.34. These developments highlight the company’s ongoing efforts to navigate the current financial landscape.
VICI Properties has also been active in expanding its partnerships, notably with Red Rock Resorts (NASDAQ:RRR) for the development of a casino on tribal land in Central California. This transaction marks VICI’s first gaming investment on tribal land and involves a significant financial commitment, showcasing the company’s strategic growth initiatives. These recent developments underscore VICI’s focus on strengthening its financial position and exploring new growth opportunities in the gaming and hospitality sectors.
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