VICI Properties: A Solid Player in Real Estate, Yet Lagging in Stock Performance
With a market cap of $33.4 billion, New York-based VICI Properties Inc. (VICI) focuses on gaming, hospitality, and entertainment real estate. The company manages a diverse portfolio comprising 93 experiential assets in the U.S. and Canada, which includes famous Las Vegas landmarks and collaborations with top experiential brands.
Stock Performance Falls Short of Expectations
This past year has been challenging for VICI, as its shares have lagged compared to the broader market. Over the past 52 weeks, VICI has risen just 8.1%, while the S&P 500 Index ($SPX) has experienced a robust 32.4% increase. In 2024, VICI’s shares have dipped 1.1%, contrasting sharply with SPX’s nearly 21% year-to-date gain.
When examining VICI’s performance closer, the discrepancy becomes clearer with the Real Estate Select Sector SPDR Fund’s (XLRE) impressive 23.6% gain over the same period, along with an 8.3% return year-to-date.
Strong Q3 Results Yet Mixed Market Reaction
On Oct. 31, VICI Properties raised the lower end of its full-year funds from operations (FFO) outlook, following a Q3 revenue report of $964.7 million and FFO of $0.57 per share, both of which exceeded analysts’ expectations. The firm’s strategic push into experience-driven real estate, including wellness resorts and indoor water parks, aims to capitalize on growing consumer interest in experiential spending. However, even after such positive earnings results, VICI’s stock fell over 1% the day after the announcement.
For the ongoing fiscal year, which ends in December, analysts project VICI’s FFO will grow 5.1% year-over-year to $2.26 per share. VICI’s recent earnings history looks encouraging, as it has beaten or met consensus estimates in the past four quarters.
Analysts Remain Optimistic Despite Challenges
Among the 21 analysts tracking VICI’s stock, the consensus rating is a “Strong Buy”, based on 17 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.” This sentiment reflects a slight improvement from three months ago, where there were only 16 “Strong Buy” ratings.
On Nov. 1, JMP Securities analyst Mitch Germain raised VICI Properties’ price target to $35, maintaining an “Outperform” rating. Germain cited strong portfolio quality, durable cash flows, and a sound investment strategy as key factors. Currently, VICI is trading below the average price target of $35.84, while the highest forecast of $43 indicates a potential upside of 36.1% from today’s price.
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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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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