Latest news with #VICIProperties
Yahoo
3 days ago
- Business
- Yahoo
3 Equity REIT Stocks That Stand Strong Despite Sector Difficulties
The REIT and Equity Trust - Other industry peers continue to navigate macroeconomic uncertainty, evolving policy landscapes, inflationary pressures and persistently high interest rates. In addition, changing tenant preferences are intensifying the divide between prime and non-prime assets, challenging the competitiveness of older or lower-tier these headwinds, the sector's broad exposure offers areas of resilience, with certain segments benefiting from strong demand fueled by demographic trends and technological progress. Data center and healthcare REITs are seeing robust growth, while the industrial and logistics sectors remain strong, supported by e-commerce. Office leasing is gradually improving, and companies like VICI Properties Inc. VICI, W. P. Carey Inc. WPC and Easterly Government Properties, Inc. DEA are well-positioned for long-term gains. About the Industry The Zacks REIT and Equity Trust - Other sector comprises a diverse collection of REIT stocks representing various asset categories, including industrial, office, lodging, healthcare, self-storage, data centers, infrastructure and more. Equity REITs lease out space within these properties to tenants, generating income through rental payments. Economic growth assumes a central role within the real estate sector as economic expansion directly correlates with higher demand for real estate, increased occupancy rates and greater bargaining power for landlords to command higher rental rates. Moreover, the performance of Equity REITs hinges on the specific dynamics of their underlying assets and the geographic location of their properties. It is imperative to thoroughly explore the fundamentals of these asset categories before making any investment decisions. What's Shaping the Future of the REIT and Equity Trust - Other Industry? Macroeconomic Volatility and Policy Issues Remain Concerns: Macroeconomic uncertainty and evolving trade policies, such as tariffs, present potential headwinds for the real estate sector. Tariff-driven inflation could erode consumer purchasing power and influence the Federal Reserve to limit interest rate cuts. This environment poses challenges for REITs, which typically carry substantial debt and are sensitive to interest rate movements. Prolonged periods of elevated borrowing costs can squeeze profit margins, dampen growth prospects and heighten investor concerns. As a result, highly leveraged REITs may become more vulnerable to financial strain during times of economic volatility and tighter monetary Tenant Demands Continue to Pose Emerging Challenges: Evolving tenant preferences across sectors like office and industrial real estate are widening the gap between prime and non-prime assets. In the office market, demand is shifting toward modern, amenity-rich spaces that support employee engagement, driving lower vacancy rates in top-tier buildings. In contrast, older, less-equipped offices face rising vacancies and rent pressures. Similarly, industrial tenants are increasingly prioritizing technologically advanced spaces to support automation and AI integration, further boosting demand for high-quality facilities. This bifurcation highlights a clear preference for well-located, future-ready properties in both Demand Across Diverse Property Types Fuels Growth Outlook: Several real estate sectors are poised to benefit from powerful demographic and technological trends. Migration to the Sun Belt and the continued rise of e-commerce are expected to fuel demand in residential and industrial markets. Meanwhile, the surge in digital services and AI, cloud computing and 5G implementation gaining pace are continuing to boost demand for Data Center and Telecommunication REITs. As consumers and businesses increasingly rely on smartphones, laptops and connected devices, the need for advanced computing, storage and processing capacity grows, sustaining momentum in the sector. In the office real estate segment, ongoing economic growth and improving workplace attendance are lifting leasing sentiment. Corporate confidence is rising, and return-to-office initiatives are gaining traction, encouraging companies to invest in modern, amenity-rich office spaces to attract and retain talent. Healthcare REITs are also set to benefit from structural demand drivers. These REITs — spanning senior housing, medical office buildings, life sciences and skilled nursing — are well-positioned to capitalize on an aging population, which continues to drive long-term demand for quality healthcare facilities. Zacks Industry Rank Indicates Bleak Prospects The Zacks REIT and Equity Trust - Other industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #130, which places it in the bottom 47% of around 250 Zacks group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to industry's positioning in the bottom 50% of the Zacks-ranked industries is a result of the southward revision of funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are losing confidence in this group's growth potential of late. Over the past year, the industry's FFO per share estimates for 2025 and 2026 have moved 5.4% and 9.5% south. However, before we present a few stocks that you might want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation picture. Industry Lags Stock Market Performance The REIT and Equity Trust - Other Industry has underperformed the S&P 500 composite and the broader Zacks Finance sector in a industry has risen 6.7% during this period compared with the S&P 500's increase of 11.4% and the broader Finance sector's 19.4% jump. One-Year Price PerformanceIndustry's Current Valuation On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing REIT - Others, we see that the industry is currently trading at 15.63 compared with the S&P 500's forward 12-month price-to-earnings (P/E) of 21.83. The industry is also trading below the Finance sector's forward 12-month P/E of 16.21. This is shown in the chart below. Forward 12 Month Price-to-FFO (P/FFO) Ratio Over the last five years, the industry has traded as high as 22.10X and as low as 12.75X, with a median of 16.46X. 3 REIT and Equity Trust - Other Stocks to Buy VICI Properties: A New York-based experiential REIT, VICI Properties is engaged in the business of owning and acquiring gaming, hospitality and entertainment destinations. As of March 31, 2025, the company owned 93 experiential assets, comprising 54 gaming properties and 39 other experiential properties in the United States and Canada. VICI Properties boasts three of the most iconic entertainment facilities on the Las Vegas Strip: Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas. VICI Properties stands out as a leading dividend stock, offering a compelling mix of income and growth. A robust portfolio with iconic assets, inflation-protected cash flow, proven growth and diversification efforts support its dividend payment. Its mission-critical assets and long-term triple-net lease agreements with its tenants assure stable rental revenues. VICI is expanding its portfolio and deepening partnerships. Strategic investments and a strong liquidity position continue to be attractive strengths for long-term currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the company's 2025 revenues calls for a 3.52% increase year over year. The consensus mark for 2025 and 2026 FFO per share has also been raised marginally over the past two months to $2.34 and $2.43, respectively. The stock has risen 7.4% so far in the year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. W.P. Carey: It is one of the largest net-lease real estate investment trusts (REITs) with a high-quality, diverse portfolio of operationally critical commercial real estate. With offices in New York, London, Amsterdam and Dallas, the company invests in properties that are generally triple-net leased to single corporate tenants, including warehouse, industrial, retail and self-storage facilities in the United States and Northern and Western company is poised to benefit from a high-quality, mission-critical, diversified portfolio of single-tenant net lease commercial real estate. Its specialty in long-term sale-leaseback transactions with contractual rental bumps leads to steady revenue generation. Strategic portfolio repositioning efforts appear promising. A solid balance sheet aids future growth endeavors.W.P. Carey currently carries a Zacks Rank #2. The Zacks Consensus Estimate for WPC's 2025 revenue calls for a 5.23% increase year over year. Moreover, the Zacks Consensus Estimate for 2025 and 2026 FFO per share has also moved up over the past month. The stock has appreciated 13.9% so far in the year. Easterly Government Properties: Headquartered in Washington, DC, this REIT specializes in acquiring, developing and managing Class A, mission-critical properties primarily leased to U.S. government agencies via the General Services Government Properties offers stable, inflation-protected cash flows backed by 93% federal leases, a best-in-class mission-critical portfolio, and a proven acquisition and development platform, making it a compelling REIT with defensive characteristics, low volatility, and long-term income visibility amid macroeconomic currently carries a Zacks Rank #2. The Zacks Consensus Estimate for the company's 2025 revenues calls for an 11.9% increase year over year. The consensus mark for 2025 and 2026 FFO per share suggests a 2.4% and 4.35% increase year over year, respectively. The stock has risen 7.3% in the past month. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.P. Carey Inc. (WPC) : Free Stock Analysis Report Easterly Government Properties, Inc. (DEA) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
1 Top REIT to Buy Hand Over Fist in June for Passive Income
VICI Properties currently pays a 5.5%-yielding dividend. It backs that high-yielding payout with stable cash flow and a solid financial profile. The REIT has plenty of room to continue expanding to support its growing dividend. 10 stocks we like better than Vici Properties › Investing in real estate can be a terrific way to make passive income. Tenants pay rent, which should cover all property expenses with room to spare, providing the landlord with income. One of the easiest ways to make passive income from real estate is to invest in a real estate investment trust (REIT). These companies own portfolios of income-generating real estate. They distribute a portion of that income to shareholders via dividend payments. VICI Properties (NYSE: VICI) is a top REIT to buy for passive income this June. It currently pays a 5.5%-yielding dividend -- more than four times the S&P 500's (SNPINDEX: ^GSPC) sub-1.5% yield -- that it has been growing at an above-average rate. That combination of yield and growth enables investors to collect lots of income now and even more in the future. VICI Properties is one of the largest REITs focused on experiential real estate. It owns market-leading gaming, hospitality, wellness, entertainment, and leisure destinations, like the Venetian Resort Las Vegas and the Chelsea Piers sports and entertainment complex in New York City. The REIT leases these properties to operating companies under very long-term triple net (NNN) leases (40-year average remaining lease term) that increasingly escalate rents at rates tied to inflation (42% this year, rising to 90% by 2035). Those leases, which require that tenants cover all property operating costs (including routine maintenance, real estate taxes, and building insurance), provide it with stable, steadily rising rental income. The REIT pays out about 75% of its adjusted funds from operations (FFO) in dividends each year. That gives it a big cushion while enabling it to retain a meaningful amount of its cash flow to fund new investments. VICI Properties also has a solid investment-grade-rated balance sheet, providing it with additional financial flexibility. Its net leverage ratio was 5.3 times at the end of the first quarter, right in the middle of its 5.0x-5.5x target range. The company's stable cash flow and solid financial profile put its high-yielding dividend on a very stable foundation. VICI Properties' rising rental income and growing real estate portfolio have supported its ability to increase its dividend. The REIT has raised its payment in all seven years since its formation. It has grown its dividend at a 7.4% compound annual rate, which is much faster than the 2.3% average pace of other REITs focused on investing in NNN real estate. VICI Properties already has a leading experiential real estate portfolio. The REIT owns 54 gaming properties, including 10 trophy assets on the Las Vegas Strip. The company also owns Chelsea Piers and 38 bowling entertainment centers leased to Lucky Strike. Despite its already extensive portfolio, VICI Properties has plenty of room to continue growing. There is an estimated $400 billion in U.S. gaming properties not currently owned by REITs or operated by tribal gaming companies. These properties alone represent a massive growth opportunity for the roughly $50 billion REIT (by enterprise value). Meanwhile, tribal casinos represent an additional investment opportunity. VICI Properties owns several casinos leased to tribal operators. It has also made two loan investments related to properties on tribal land, including its recent partnership with Red Rock Resorts to fund the development of the North Fork Mono Casino and Resort in California. On top of that, there's a large and growing opportunity to invest in nongaming experiential properties. VICI Properties has been getting in on the ground floor of this opportunity by forming financial partnerships with experiential property operators. It has made loans to Great Wolf Lodge (indoor water parks), Canyon Ranch (wellness retreats), Cabot (destination golf), and others. Many of these loans give the REIT the option to acquire properties from the developer in sale-leaseback transactions. VICI Properties is always on the lookout for new partners and experiential real estate investment opportunities. It formed a strategic relationship with Cain International and Eldridge Industries earlier this year to identify and pursue unique experiential real estate. The first investment is a $300 million mezzanine loan to support the development of One Beverly Hills, a landmark luxury mixed-use development featuring an all-suite Aman Hotel, high-end boutiques, world-class culinary destinations, and a botanical garden. The REIT's ability to continue expanding its portfolio supports its capacity to grow its dividend. VICI Properties pays an attractive, steadily rising dividend backed by a world-class experiential real estate portfolio. The REIT also has a rock-solid financial profile, enabling it to continue growing its portfolio and dividend. Its combination of a high-yield dividend and above-average growth profile makes it a top REIT to buy for income this June. Before you buy stock in Vici Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vici Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt DiLallo has positions in Vici Properties. The Motley Fool recommends Red Rock Resorts and Vici Properties. The Motley Fool has a disclosure policy. 1 Top REIT to Buy Hand Over Fist in June for Passive Income was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
1 Top REIT to Buy Hand Over Fist in June for Passive Income
VICI Properties currently pays a 5.5%-yielding dividend. It backs that high-yielding payout with stable cash flow and a solid financial profile. The REIT has plenty of room to continue expanding to support its growing dividend. 10 stocks we like better than Vici Properties › Investing in real estate can be a terrific way to make passive income. Tenants pay rent, which should cover all property expenses with room to spare, providing the landlord with income. One of the easiest ways to make passive income from real estate is to invest in a real estate investment trust (REIT). These companies own portfolios of income-generating real estate. They distribute a portion of that income to shareholders via dividend payments. VICI Properties (NYSE: VICI) is a top REIT to buy for passive income this June. It currently pays a 5.5%-yielding dividend -- more than four times the S&P 500's (SNPINDEX: ^GSPC) sub-1.5% yield -- that it has been growing at an above-average rate. That combination of yield and growth enables investors to collect lots of income now and even more in the future. VICI Properties is one of the largest REITs focused on experiential real estate. It owns market-leading gaming, hospitality, wellness, entertainment, and leisure destinations, like the Venetian Resort Las Vegas and the Chelsea Piers sports and entertainment complex in New York City. The REIT leases these properties to operating companies under very long-term triple net (NNN) leases (40-year average remaining lease term) that increasingly escalate rents at rates tied to inflation (42% this year, rising to 90% by 2035). Those leases, which require that tenants cover all property operating costs (including routine maintenance, real estate taxes, and building insurance), provide it with stable, steadily rising rental income. The REIT pays out about 75% of its adjusted funds from operations (FFO) in dividends each year. That gives it a big cushion while enabling it to retain a meaningful amount of its cash flow to fund new investments. VICI Properties also has a solid investment-grade-rated balance sheet, providing it with additional financial flexibility. Its net leverage ratio was 5.3 times at the end of the first quarter, right in the middle of its 5.0x-5.5x target range. The company's stable cash flow and solid financial profile put its high-yielding dividend on a very stable foundation. VICI Properties' rising rental income and growing real estate portfolio have supported its ability to increase its dividend. The REIT has raised its payment in all seven years since its formation. It has grown its dividend at a 7.4% compound annual rate, which is much faster than the 2.3% average pace of other REITs focused on investing in NNN real estate. VICI Properties already has a leading experiential real estate portfolio. The REIT owns 54 gaming properties, including 10 trophy assets on the Las Vegas Strip. The company also owns Chelsea Piers and 38 bowling entertainment centers leased to Lucky Strike. Despite its already extensive portfolio, VICI Properties has plenty of room to continue growing. There is an estimated $400 billion in U.S. gaming properties not currently owned by REITs or operated by tribal gaming companies. These properties alone represent a massive growth opportunity for the roughly $50 billion REIT (by enterprise value). Meanwhile, tribal casinos represent an additional investment opportunity. VICI Properties owns several casinos leased to tribal operators. It has also made two loan investments related to properties on tribal land, including its recent partnership with Red Rock Resorts to fund the development of the North Fork Mono Casino and Resort in California. On top of that, there's a large and growing opportunity to invest in nongaming experiential properties. VICI Properties has been getting in on the ground floor of this opportunity by forming financial partnerships with experiential property operators. It has made loans to Great Wolf Lodge (indoor water parks), Canyon Ranch (wellness retreats), Cabot (destination golf), and others. Many of these loans give the REIT the option to acquire properties from the developer in sale-leaseback transactions. VICI Properties is always on the lookout for new partners and experiential real estate investment opportunities. It formed a strategic relationship with Cain International and Eldridge Industries earlier this year to identify and pursue unique experiential real estate. The first investment is a $300 million mezzanine loan to support the development of One Beverly Hills, a landmark luxury mixed-use development featuring an all-suite Aman Hotel, high-end boutiques, world-class culinary destinations, and a botanical garden. The REIT's ability to continue expanding its portfolio supports its capacity to grow its dividend. VICI Properties pays an attractive, steadily rising dividend backed by a world-class experiential real estate portfolio. The REIT also has a rock-solid financial profile, enabling it to continue growing its portfolio and dividend. Its combination of a high-yield dividend and above-average growth profile makes it a top REIT to buy for income this June. Before you buy stock in Vici Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vici Properties wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt DiLallo has positions in Vici Properties. The Motley Fool recommends Red Rock Resorts and Vici Properties. The Motley Fool has a disclosure policy. 1 Top REIT to Buy Hand Over Fist in June for Passive Income was originally published by The Motley Fool
Yahoo
13-05-2025
- Business
- Yahoo
VICI Properties price target raised to $35 from $34 at Scotiabank
Scotiabank raised the firm's price target on VICI Properties (VICI) to $35 from $34 and keeps an Outperform rating on the shares. The firm is adjusting its estimates on U.S. Real Estate & REITs in its coverage following Q1 results, the analyst tells investors. Quarterly results contained some negative surprises, but generally played out as expected, with most companies maintaining FY25 guidance, the firm notes. Real estate fundamentals tend to lag, so many are looking to see the potential impact of the slowing economy on H2 2025 results, the firm adds. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on VICI: Disclaimer & DisclosureReport an Issue VICI Properties Reports Q1 2025 Financial Results VICI Properties' Earnings Call: Growth Amid Challenges VICI Properties price target raised to $36 from $35 at Baird VICI Properties sees 2025 adjusted FFO $2.33-$2.36 vs. $2.32-$2.35 prior VICI Properties reports Q1 adjusted FFO 58c, consensus 57c Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-05-2025
- Business
- Yahoo
VICI Properties (NYSE:VICI) Reports Q1 Revenue Increase To US$984 Million
VICI Properties recently demonstrated a favorable share price movement of 7% over the last quarter. This performance came amid a backdrop of increasing market optimism, supported by the surge in major tech stocks that bolstered broader indices such as the S&P 500 and the Dow. During this period, VICI reported increased revenue for Q1 2025, although net income and EPS experienced declines. Additionally, the company completed a significant debt offering and maintained dividend payments, actions which may have added support to broader market trends rather than countering them. Be aware that VICI Properties is showing 1 weakness in our investment analysis. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 23 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent 7% rise in VICI Properties' shares over the last quarter reflects growing investor confidence amidst market optimism. This, alongside a significant debt offering and stable dividend payments, underscores a commitment to financial fortitude which may diversify income streams via its new luxury hospitality partnerships with Cain International and Eldridge Industries. These strategic moves could bolster VICI's revenue outlook, capitalizing on enhanced assets like MGM Grand and Caesars. However, potential dilution from forward equity agreements could temper growth expectations, reflected in VICI's current share price being 10.6% below the analyst consensus price target of US$36.10. Over the long-term, VICI's shareholders have experienced robust total returns, including share price appreciation and dividends, totaling 155.25% over five years. In contrast, the company underperformed the US Specialized REITs industry, which posted higher returns of 14.5% over the past year. Nevertheless, such growth over a five-year horizon indicates the resilience and potential in VICI's strategic initiatives. Analyst forecasts suggest revenue growth of 2.4% annually over the next three years, with profit margins expected to rise. The partnerships could serve as significant catalysts, but they also present risks if partner-specific conditions or market dynamics shift unfavorably. Examine VICI Properties' earnings growth report to understand how analysts expect it to perform. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:VICI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
