VICI High-Growth Casino Real Estate Opportunity, Says Analyst
VICI Properties (NYSE: VICI) is the largest landlord on the Las Vegas Strip and owns the dimension assets of a slew of regional casinos, making it a compelling existent land maturation story, according to at least 1 analyst.
In a remark to clients today, Macquarie analyst Chad Beynon reiterated an “outperform” rating and $40 toll target on the Caesars Palace owner. That implies upside of 18.7% from today’s closing publish of $33.68. Shares of the tangible land investment funds corporate trust (REIT) are upwards 4% year-to-date.
Compared to other corners of the publicly traded existent land universe, cassino REITs are offspring and the radical encountered some doubts from investors during the too soon days of the coronavirus pandemic. That scenario is ever-changing for the better.
However, we believe it continues to put on acceptance as US Gaming post-pandemic results have got highlighted warm top-line exact and improved gain margins and immediate payment flow, the to the highest degree important items for VICI. While dynamic, we expect top to trough revenues to fare best vs. what the street is expecting for both the US regional market and Las Vegas,” wrote Beynon.
Following VICI’s 2022 acquisition of MGM Growth Properties (MGP), in that respect are simply II listed cassino REITs — VICI and Gaming and Leisure Properties (NASDAQ:GLPI).
VICI Has Established Growth Track Record
Through a serial publication of prescient acquisitions over its lifespan as a standalone public company, VICI developed a report for speedy growth.
Those moves were on total showing shoemaker's last twelvemonth as the REIT notched its first of all twelvemonth as the landlord of the Venetian and the related normal center, closed the aforementioned purchase of MGP and bought the 49.9% of the Mandalay Bay and MGM Grand it didn’t previously own, among other transactions.
“Since its IPO, VICI has grown revenue ~300% and the company is substantially positioned for development inward the next few years, precondition several acquisitions, which include its traditional public/private opportunities inwards gaming, positive the to a greater extent experiential opportunities the likes of golf/resorts, both domestically and abroad,” added Beynon.
VICI was spun out of Caesars Entertainment (NASDAQ: CZR) inward 2018 when the casino giant requisite to erect cash. Today, the gaming manipulator is one of the REIT’s largest tenants.
Speaking of VICI and Caesars…
VICI owns the holding assets of 18 gaming venues operated by Caesars, including Caesars Palace and Harrah’s on the Strip and Caesars Palace on the Atlantic City Boardwalk. It’s possible that human relationship testament expand o'er time.
“VICI is one of our top out gaming picks presumption its Vegas exposure, where we are bullish on the recovery, and development opportunities given the ROFRs and put/call agreements with Caesars Entertainment,” according to Beynon.
“ROFR” refers to rights of for the first time refusal, which VICI gained inwards 2019 when Eldorado Resorts unveiled its takeover adjure for “old Caesars.” As division of that agreement, the REIT has ROFR on Horseshoe Casino Baltimore and rights to win the real estate of Harrah’s Hoosier Mungo Park and IN Grand before the remnant of 2024.
VICI also possesses ROFR on the Flamingo Las Vegas, Horseshoe Las Vegas, French capital Las Vegas and Planet Hollywood Resort & Casino. type A indorse deal would include the remainders from that mathematical group and the LINQ Hotel & Casino. It could be awhile before another large-scale business deal 'tween the REIT and Caesars materializes because the gaming companionship said it’s unlikely to sell assets this year.
This content is brought to you by the most popular Pussy888 Download in Malaysia.