VICI Properties Inc.: Strong Performance Amid Market Challenges
VICI Properties Inc. (VICI), with a market cap of $34.2 billion, operates as a real estate investment trust (REIT) headquartered in New York. The company boasts one of the largest portfolios of premier gaming, hospitality, and entertainment venues, including prominent locations like Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.
Market Position and Portfolio Overview
Classified as a “large-cap stock,” VICI Properties clearly fits this definition, owning a total of 93 experiential assets. This includes 54 gaming properties and 39 other experiential venues, strategically located throughout the United States and Canada.
Recent Stock Performance
Recently, VICI shares dropped 5.6% from their 52-week high of $34.29. In contrast, they experienced a notable increase of 14.5% in the past three months. This uptick outperformed the broader Nasdaq Composite ($NASX), which fell nearly 8.4% during the same timeframe.
Looking at the year-to-date (YTD) performance, VICI has climbed 10.9%, whereas the Nasdaq declined by 8.1%. Over the previous 52 weeks, VICI shares increased by 11.8%, compared to the Nasdaq’s improvement of nearly 9.8%.
Since mid-February, VICI has consistently traded above its 50-day and 200-day moving averages, indicating a positive trend in market performance.
Quarterly Results and Investor Reactions
The company observed a rise of 1.7% in its stock price following the release of its Q4 2024 results on February 20. Investors responded favorably to VICI’s impressive revenue of $976.1 million, which exceeded consensus estimates, bolstered by robust leasing activity and new financing deals. Although there was an earnings miss, a 3.6% year-over-year growth in adjusted funds from operations (AFFO) per share to $0.57 provided reassurance regarding VICI’s reliable cash flow. Furthermore, VICI announced a significant $300 million strategic investment in the luxury One Beverly Hills project, further strengthening its foothold in this high-end sector.
Comparative Performance Analysis
In a broader market context, VICI’s rival W. P. Carey Inc. (WPC) has outperformed VICI with a YTD gain of 13.1%. However, WPC’s performance over the past 52 weeks, yielding a 9.4% increase, has not matched VICI’s overall growth during the same period.
Analysts’ Outlook
Given VICI’s strong performance relative to the Nasdaq, analysts remain positive about its future. Among the 22 analysts covering VICI, the consensus rating is “Strong Buy,” and the stock is currently trading below the mean price target of $35.76.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
