So I have been following VICI for a while waiting for a good time to get in.
The company is a REIT owning many famous properties (mainly hotel/casinos) and collecting rent on those. Most of its revenues come from the Ceasar Palace and MGM (companies that showed a solid ne tincome last year of 1.4bln and 700mnl respectively). Therefore its tenents are doing ok and the properties in Vegas should only go up in value over the long term (the city is growing rapidly). Unlike office building, I imagine the demand for physical casinos is going to be more stable.
In the last year VICI has been expanding without diluting shareholders (altough its debt increased by 3bln dollars, which is reflected in the increase in invested capital), and is growing its topline pretty rapidly.
With a dividend yield of 6% and growing, why is it the company falling in price?
The two biggest concern in my opinion are the fall in value of commercial real estate, which puts pressure on REITs valuations, and the raising amount of debt owned by the company (16bln$), but the current valuation seems pretty honest.
Is it an investment you are considering?
