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Vici Properties (VICI)
:VICI
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VICI Properties
(NYSE:VICI)81Outperform
Positive Factors
Management and Portfolio
Shares trade at just 13.4x 2025E AFFO/share, slightly ahead of the net-lease sector, though when you couple earnings growth potential with a highly transparent management team and iconic portfolio, there is potential for multiple expansion.
Partnerships and Capital Deployment
The expanding partnerships and capital deployment continue to drive earnings growth and pave a path to future opportunities.
Negative Factors
Acquisition Activity
The volatile interest rate backdrop and continued stable casino operator performance has slowed acquisition activity, as the bid-ask spread has widened.
VICI Properties (VICI) vs. S&P 500 (SPY)
Market Cap
$33.77B
Dividend Yield5.3%
Average Volume (3M)6.29M
Price to Earnings (P/E)12.5
Beta (1Y)0.64
Revenue Growth6.57%
EPS Growth3.45%
CountryUS
Employees28
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)2.56
Shares Outstanding1,056,339,100
10 Day Avg. Volume8,180,063
30 Day Avg. Volume6,292,171
Financial Highlights & Ratios
PEG Ratio3.62
Price to Book (P/B)N/A
Price to Sales (P/S)8.77
Price to Cash Flow (P/CF)13.10
P/FCF Ratio13.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.54Price Target Upside5.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
VICI Properties Business Overview & Revenue Model
Company DescriptionVICI Properties Inc. is a real estate investment trust (REIT) that specializes in experiential real estate, primarily within the gaming, hospitality, and entertainment sectors. The company owns one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including Caesars Palace and other iconic properties. VICI Properties operates by leasing these properties to some of the world's leading gaming operators and is a key player in the real estate market for entertainment and leisure destinations.
How the Company Makes MoneyVICI Properties makes money primarily through leasing its properties to gaming and hospitality operators under long-term, triple-net lease agreements. These agreements ensure that tenants are responsible for the maintenance, insurance, and taxes of the leased properties, providing VICI with stable and predictable cash flows. The company partners with major gaming operators like Caesars Entertainment, MGM Resorts, and Hard Rock International, among others. Additionally, VICI strategically acquires properties to expand its portfolio and enhance its revenue-generating capabilities. The company's growth strategy also includes capitalizing on opportunities in the experiential real estate sector, leveraging its relationships with top operators to secure lucrative deals and partnerships.
VICI Properties Financial Statement Overview
Summary
VICI Properties shows strong financial health with impressive revenue growth and profitability. The balance sheet is robust, supported by a high equity ratio and zero debt in 2024, mitigating financial risk. However, the absence of cash flow data for 2024 limits a complete assessment of cash management.Income Statement
VICI Properties demonstrates strong revenue growth with a 47.9% increase in total revenue from 2020 to 2024. The company maintained robust profitability with a consistently high gross profit margin near 100% and a net profit margin improving to 69.6% in 2024. Additionally, EBIT margins have been stable and impressive, indicating efficient operations. The absence of EBITDA data in 2024 was noted but did not significantly impact the overall analysis.92
Very Positive
Balance Sheet
VICI Properties shows a strong balance sheet with no total debt in 2024, significantly reducing leverage risk. The equity ratio stands at 58.5%, highlighting a solid equity base. The return on equity improved to 10.1% in 2024, reflecting efficient use of shareholders’ equity. The company’s financial stability is evident, with a consistent increase in total assets over the years.85
Very Positive
Cash Flow
Despite a lack of free cash flow and operating cash flow data for 2024, historical data indicates positive free cash flow and consistent capital expenditure management. The strong cash position in prior years underscored operational resilience, although the absence of current data introduces uncertainty.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.85B | 3.61B | 2.60B | 1.51B | 1.23B | Gross Profit |
| 3.82B | 3.58B | 2.52B | 1.46B | 1.19B | EBIT |
| 3.54B | 3.34B | 1.70B | 1.44B | 1.25B | EBITDA |
| 3.56B | 3.37B | 1.70B | 1.45B | 1.26B | Net Income Common Stockholders |
| 2.68B | 2.51B | 1.12B | 1.01B | 891.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 524.62M | 522.57M | 426.27M | 739.61M | 335.97M | Total Assets |
| 45.37B | 44.06B | 37.58B | 17.60B | 17.06B | Total Debt |
| 17.65B | 17.63B | 13.74B | 4.69B | 6.77B | Net Debt |
| -524.62M | 17.11B | 13.53B | 3.95B | 6.45B | Total Liabilities |
| 18.42B | 18.40B | 15.29B | 5.41B | 7.57B | Stockholders Equity |
| 26.54B | 25.26B | 21.93B | 12.11B | 9.42B |
| Cash Flow | Free Cash Flow | |||
| 2.37B | 2.18B | 1.94B | 893.85M | 880.87M | Operating Cash Flow |
| 2.38B | 2.18B | 1.94B | 896.35M | 883.64M | Investing Cash Flow |
| -922.78M | -2.90B | -9.30B | 41.45M | -4.55B | Financing Cash Flow |
| -1.46B | 1.03B | 6.83B | -514.18M | 2.88B |
VICI Properties Technical Analysis
Positive
32.65
Price Trends
30.18
Positive
30.77
Positive
30.38
Positive
Market Momentum
0.68
Negative
66.33
Neutral
67.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VICI, the sentiment is Positive. The current price of 32.65 is above the 20-day moving average (MA) of 31.36, above the 50-day MA of 30.18, and above the 200-day MA of 30.38, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 66.33 is Neutral, neither overbought nor oversold. The STOCH value of 67.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VICI.
VICI Properties Risk Analysis
VICI Properties disclosed 40 risk factors in its most recent earnings report. VICI Properties reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VICI Properties Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $33.77B | 12.50 | 10.34% | 5.30% | 6.57% | 3.45% | |
74 Outperform | $11.24B | 16.24 | 10.53% | 5.06% | 7.02% | -4.78% | |
71 Outperform | $13.85B | 17.58 | 18.61% | 6.08% | 6.33% | 3.44% | |
67 Neutral | $21.93B | 55.63 | 3.97% | 2.65% | -7.17% | -52.62% | |
61 Neutral | $4.91B | 18.99 | -3.12% | 7.77% | 6.71% | -19.69% | |
61 Neutral | $1.40B | ― | -0.16% | 0.34% | 2.35% | 57.81% | |
59 Neutral | $5.76B | 22.53 | 48.59% | 4.63% | 8.39% | -15.41% |
* Real Estate Sector Average
Performance Comparison
VICI
VICI Properties
32.65
4.62
16.48%
WY
Weyerhaeuser
30.65
-3.50
-10.25%
HST
Host Hotels & Resorts
16.33
-3.55
-17.86%
PEB
Pebblebrook Hotel
12.11
-4.00
-24.83%
RHP
Ryman
98.82
-12.65
-11.35%
GLPI
Gaming and Leisure
50.61
7.13
16.40%
VICI Properties Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 6.14% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call demonstrates a positive outlook with significant strategic partnerships and growth in key areas like Las Vegas. However, challenges remain in finding acquisition opportunities in the gaming sector due to interest rate volatility.Highlights
Strategic Partnership with Cain International and Eldridge Industries
VICI announced a new strategic and financial relationship with Cain International and Eldridge Industries, initiating an investment in the One Beverly Hills development. This partnership is expected to yield numerous future investment opportunities.
Strong Las Vegas Performance
Las Vegas tourism hit records in 2024 with 58 million airline passengers and 42 million visitors, a 2% year-over-year increase. Operators have announced nearly $1 billion of investment in VICI's Las Vegas properties.
Improved Financial Stability
VICI achieved an investment-grade credit rating from Moody's, completing the upgrade process across all three major agencies, enhancing access to capital.
AFFO Growth
AFFO per share increased by 5.1% in 2024, and the company expects further growth in 2025, with guidance indicating a 3.3% increase.
Lowlights
Limited Gaming Acquisition Opportunities
VICI faced a lack of compelling real estate acquisition opportunities in the gaming sector in 2024, leading to a focus on development funding instead.
Interest Rate Environment Challenges
The volatility in the ten-year interest rate has made pricing certainty difficult, affecting the ability to invest in permanent assets.
Company Guidance
In the VICI Properties Fourth Quarter and Full Year 2024 Earnings Conference Call, David Kieske provided initial earnings guidance for 2025. VICI expects the Adjusted Funds from Operations (AFFO) for the year ending December 31, 2025, to be between $2.485 billion and $2.555 billion, translating to between $2.32 and $2.35 per diluted common share. This represents a projected year-over-year AFFO per share growth of 3.3%. The guidance does not include the impact of any transactions that have not closed, interest income from loans without final draw structures, potential future acquisitions or dispositions, capital markets activities, or other non-recurring items. Additionally, VICI highlighted a strong balance sheet with total liquidity of approximately $3.3 billion and a net debt to annualized fourth-quarter adjusted EBITDA of approximately 5.3 times, within their target leverage range.VICI Properties Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
VICI Properties Announces Strategic Investments and Revenue Growth
Positive
Feb 20, 2025
In 2024, VICI Properties announced over $1 billion in capital commitments, with strategic investments and partnerships contributing to a 6.6% increase in total revenues to $3.8 billion for the year. Despite a year-over-year decrease in net income for the fourth quarter, the company’s AFFO and total revenues showed growth, and it received a credit rating upgrade from Moody’s. VICI’s strategic initiatives, including a new $2.5 billion unsecured revolving credit facility and a $300 million investment in One Beverly Hills, position it for continued growth and expansion in the experiential real estate sector.
Private Placements and FinancingBusiness Operations and Strategy
VICI Properties Enters New Credit Agreement with Wells Fargo
Neutral
Feb 4, 2025
On February 3, 2025, VICI Properties L.P., a subsidiary of VICI Properties Inc., entered into a new Credit Agreement with Wells Fargo Bank, replacing its previous agreement. This new $2.5 billion senior revolving credit facility, maturing in 2029, allows for potentially increased lending up to $3.5 billion and includes conditions for maturity extensions and additional term loans. The agreement outlines interest rates based on SOFR or base rates, and includes financial covenants and events of default terms, impacting the company’s financial flexibility and operational strategy in the coming years.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.