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On Thursday, JMP analysts maintained a positive outlook on VICI Properties Inc. (NYSE:VICI), reiterating a Market Outperform rating and a $35.00 price target. The affirmation follows VICI Properties’ recent credit rating upgrade, which has facilitated more favorable terms for the company’s latest debt issuances. These efforts are part of VICI’s proactive strategy to manage its balance sheet and address debt maturities due in 2025. According to InvestingPro data, VICI maintains strong financial health with liquid assets exceeding short-term obligations and a healthy current ratio of 21.19x.
VICI Properties has successfully refinanced $1.3 billion of its debt, with an early settlement expected in April. Analysts at JMP underscored the company’s strategic refinancing as a testament to its strong financial management. The company’s portfolio, which includes some of the world’s most prestigious resorts, has demonstrated resilience and consistent rent collection, even throughout challenging economic cycles. This is reflected in VICI’s impressive 99.18% gross profit margin and steady revenue growth of 6.53% over the last twelve months.
The real estate investment trust (REIT) sector, particularly in the net-lease category, has seen VICI’s shares trade at approximately 13 times its estimated 2025 adjusted funds from operations (AFFO) per share. This valuation is consistent with the broader market, but JMP analysts argue that VICI’s high-quality portfolio and history of strong earnings growth justify a premium valuation compared to its peers. InvestingPro analysis shows VICI trading at a P/E ratio of 12.41x while offering an attractive dividend yield of 5.42%. For deeper insights into VICI’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
VICI’s investment strategy, which focuses on high-quality assets and accretive acquisitions, is expected to continue driving above-average growth in the company’s bottom line. In addition, VICI’s relationships with top operators provide a steady flow of direct deals, further enhancing the company’s growth prospects.
Analysts highlighted VICI’s solid track record of full rent collection since before the pandemic, distinguishing it from some peers who have experienced increased credit losses. This consistent performance supports JMP’s positive stance on VICI Properties’ stock, reinforcing the company’s reputation for stability and reliability in the net-lease REIT sector.
In other recent news, VICI Properties reported mixed financial results for the fourth quarter of 2024. The company’s earnings per share (EPS) came in at $0.58, which was below the forecasted $0.68. However, VICI Properties exceeded revenue expectations, achieving $976.1 million compared to the anticipated $968 million. Additionally, VICI Properties announced the pricing of a $1.3 billion public offering of senior unsecured notes, which will be used to repay existing debts and for general corporate purposes. Citizens JMP maintained a Market Outperform rating for VICI Properties with a price target of $35, highlighting the company’s strategic investment practices. The firm’s investment strategy is expected to support a growth of over 3% in its bottom line for 2025. VICI Properties’ recent loan investment in One Beverly Hills was noted as a strategic move that could lead to further business opportunities. These developments reflect VICI Properties’ ongoing efforts to strengthen its financial position and expand its investment portfolio.
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