Vici Properties Inc: $VICI (+0,47 %)
Detailed analysis and future prospects

Company profile and business model

Vici Properties Inc (NYSE:$VICI (+0,47 %)
) is a leading real estate investment trust (REIT) with a clear focus on real estate in the gaming, hospitality and entertainment sectors. The company was founded in 2016 and has since built an impressive portfolio. Originally a spin-off from Caesars Entertainment:$CZR (-0,7 %) , Vici Properties has quickly diversified and expanded.

Key Facts:

• Market capitalization: USD 31 billion
• Dividend yield (TTM): 5,65%
• Price/earnings ratio (TTM): 11,07
• Earnings per share (TTM): USD 2.52
• CEO: Edward Baltazar Pitoniak
• Year founded: 2016
• Employees: 28

Financial performance and key figures

Dividends:

Vici Properties is known for its attractive dividend policy. The dividend yield is 5.65%, which is well above the sector average. The dividend history shows a steady increase in distributions:

• Dividend per share (2023): USD 1.65
• Dividend per share (2022): USD 1.60
• Dividend per share (2021): USD 1.50

Revenues and profits:

The company's financial results are robust and show positive growth momentum:

• Q1 2024 revenue: USD 950 million
• Q4 2023 turnover: USD 951 million
• Q3 2023 Turnover: USD 932 million

Results frequently exceed analysts' estimates, indicating strong operating performance

Cash flow analysis

The cash flow analysis shows that Vici Properties consistently generates positive cash flows from operating activities:

• Q1 2024 operating cash flow: USD 544 million
• Q4 2023 operating cash flow: USD 576 million
• Q3 2023 operating cash flow: USD 552 million

These strong cash flows support the dividend payments and enable the company to invest in further growth.

Analyst ratings and price targets

Vici Properties receives consistently positive ratings from analysts. Here are the current analyst estimates:

• Average price target: $35.26 (an increase of 19.94% from the current price)
• Maximum target: USD 43.00 (46.26% potential upside)
• Lowest target: USD 31.00 (5.44% potential)

Based on the ratings of 24 analysts, Vici Properties has a strong buy recommendation. The majority of analysts rate the share as a "Strong Buy" or "Buy".

Technical analysis

Indicators:

• Relative Strength Index (14): 64.71 (Neutral)
• Stochastic %K (14, 3, 3): 46.03 (Neutral)
• MACD Level (12, 26): -0.09 (Buy)
• Simple moving average (200 days): 29.30 (Buy)

Pivots:

• Important support: USD 27.10 (Fibonacci S2)
• Important resistance: USD 31.21 (Classic R3)

Strategic orientation and diversification:

Vici Properties has diversified from its original focus on casinos and is now looking to develop a broader portfolio in the "experiences" sector. This potentially includes amusement parks, resorts and golf courses. Vici already owns a number of golf courses that are closely linked to its casino properties.

Current partnerships and investments:

• BigShots Golf
• Canyon Ranch
• Chelsea Piers

These strategic investments enable Vici to develop new business areas and potentially make further acquisitions.

Risks and challenges:

High interest rates:

A significant risk for Vici Properties and REITs in general is the current high interest rates. These can increase financing costs and thus depress profitability. In addition, higher interest rates can lead to investors preferring safe bonds to riskier real estate investments.

Concentration risk:

Although Vici Properties has diversified its portfolio, its dependence on the gaming sector remains high. A downturn in the gaming industry could have a negative impact on income and the share price.

Economic uncertainty

General economic uncertainty and potential recessions could reduce demand for leisure and entertainment services, which could have a negative impact on Vici Properties.

Future prospects and conclusion:

Vici Properties Inc. is well positioned for long-term growth. The company has proven that it can reduce its dependence on a single customer and industry while maintaining a stable dividend yield. With a diversified portfolio and promising future plans, Vici represents a solid option for investors interested in a mix of stability and growth.

Discussion: How do you see the future of Vici Properties? Do you see diversification into experiences as a strong growth factor or should the company focus more on its core markets? Let us know your opinions in the comments!