VICI Properties Inc. — Cyborg Score 8/10

Strong
Real Estate Investment Trust (REIT) - Gaming & Experiential Properties

Strategic Profile

VICI's strategic approach involves acquiring prime real estate and leasing it back to operators through long-term, triple-net agreements, ensuring consistent income. The company more than doubled its size in 2022 by acquiring MGM Growth Properties for $17.2 billion and The Venetian complex, which increased annual revenue by $1 billion and made it the largest land owner on the Las Vegas Strip with over 660 acres.

Cyborg Score Rationale

VICI completed a $1.4 billion IPO in February 2018 and achieved investment grade ratings across all three rating agencies, while maintaining 100% rent collection during COVID-19. The company benefits from long-term, triple-net lease agreements providing stable cash flows from top-tier hospitality operators.

Top Insights

  • VICI owns 93 experiential assets comprising approximately 127 million square feet with approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks
  • Properties are occupied by industry-leading gaming, leisure and hospitality operators under long-term, triple-net lease agreements
  • The company has growing real estate and financing partnerships with leading operators including Cabot, Cain, Canyon Ranch, Chelsea Piers, Great Wolf Resorts, Homefield, Kalahari Resorts and Lucky Strike Entertainment
  • Since IPO on February 1, 2018, VICI has delivered total shareholder return of 105%, grown its market cap by ~$24 billion, added 73 properties and partnered with 18 new operators as of January 31, 2024

Named Competitors

  • MGM Growth Properties — Gaming and hospitality real estate
  • Caesars Entertainment — Casino and hospitality operator
  • Hard Rock International — Gaming and entertainment operator
  • Park Hotels & Resorts — Hospitality real estate REIT

Recent Developments

  • (April 2022) Acquired MGM Growth Properties for $17.2 billion including assumed debt
  • (February 2022) Purchased The Venetian Resort Las Vegas from Las Vegas Sands for $4 billion
  • (June 2022) Became fastest REIT to migrate from IPO to S&P 500 inclusion

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