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On Monday, Citizens JMP reaffirmed its positive outlook on VICI Properties Inc. (NYSE: NYSE:VICI), maintaining a Market Outperform rating and a price target of $35.00. VICI Properties, a real estate investment trust (REIT) known for its portfolio of gaming, hospitality, and entertainment destinations, has been recognized for its strategic investment practices. According to InvestingPro data, VICI has demonstrated consistent shareholder value, having raised its dividend for 7 consecutive years, with a current attractive yield of 5.53%.
The company’s approach to investment has been highlighted as a key strength, focusing on partnerships with top experiential operators throughout the entire capital stack. This strategy is designed to foster compelling investments that contribute to the company’s earnings and have the potential to generate repeat business. A recent example of this strategy in action is VICI’s loan investment in One Beverly Hills, which has been described as a "test-the-waters" transaction with esteemed partners, anticipated to lead to further repeat business. The effectiveness of this strategy is reflected in VICI’s strong financial health, earning a "GREAT" overall score on InvestingPro’s comprehensive assessment system.
VICI’s investment strategy is complemented by a robust income stream and clear organic growth, which is projected to exceed that of many of its net-lease REIT counterparts. Even without considering additional real investment activity, VICI is forecasting a growth of over 3% in its bottom-line for the year 2025.
The company’s shares are currently trading at approximately 13.4 times its estimated adjusted funds from operations (AFFO) per share for 2025. This valuation is slightly above the average for the net-lease sector. However, when the potential for earnings growth is taken into account, the company’s investment strategy and growth forecasts are seen as strong points in its favor.
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, revenue exceeded expectations, reaching $976.1 million compared to the forecast of $968 million. Despite the EPS miss, the company has achieved an investment-grade credit rating, which enhances its financial stability. VICI Properties is actively expanding its portfolio with strategic investments, including high-profile projects like One Beverly Hills and developments at the Venetian and Great Wolf Northeast. The company is also exploring opportunities in both gaming and non-gaming sectors, with potential international expansion in lending and investment. In terms of analyst activity, there was no specific mention of upgrades or downgrades from firms like CBRE (NYSE:CBRE) or Goldman Sachs. VICI Properties’ strategic partnerships and investments are seen as key to its future growth potential.
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