VICI Properties (NYSE:VICI) shares jumped in the early session today after the real estate investment trust delivered robust fourth-quarter numbers. Revenue surged by 21% year-over-year to $931.9 million. The figure exceeded estimates by nearly $10 million. In sync, FFO (Funds from Operations) of $0.72 outpaced expectations by $0.07.
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In Q4, its AFFO (Adjusted Funds from Operations) jumped by 17% year-over-year to $570.4 million. Notably, VICI deployed capital in every month of 2023. The company committed a total of $1.8 billion at a blended yield of 7.7% during the year. Additionally, VICI carried out its first international investments with gaming locations in Canada.
At the end of December 2023, VICI had a total debt of $17.1 billion and liquidity of $3.2 billion. For Fiscal Year 2024, the REIT expects AFFO in the range of $2,320 million to $2,355 million. VICI aims to maintain a net debt to adjusted EBITDA ratio of 5x to 5.5x over the long term.
Is VICI a Good Stock to Buy?
Today’s price gains come after a nearly 6.8% decline in VICI’s share price so far this year. Overall, the Street has a Strong Buy consensus rating on VICI Properties, and the average VICI price target of $35.27 points to a nearly 18.75% potential upside in the stock. That’s alongside an attractive dividend yield of 5.45% offered by VICI. However, it’s worth noting that estimates will likely change following today’s earnings report.
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