Vici Properties Inc. (NYSE: VICI)

Sector: Real Estate Industry: REIT - Diversified CIK: 0001705696
Market Cap 30.39 Bn
P/B 1.20
P/E 11.76
P/S 8.24
ROIC (Qtr) 8.25
Div Yield % 7.00
Rev 1y % (Qtr) 4.44
Total Debt (Qtr) 16.76 Bn
Debt/Equity (Qtr) 0.61
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About

VICI Properties Inc., often recognized by its stock symbol VICI, is a real estate investment trust (REIT) that operates within the gaming, hospitality, entertainment, and leisure industries. The company's primary business activities include the acquisition and leasing of experiential properties, as well as the origination and investment in real estate debt. VICI's main business activities revolve around the acquisition and leasing of experiential real estate assets, which span across the gaming, hospitality, and entertainment sectors. These assets...

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Investment thesis

Bull case

  • Strong tangible asset base of 46.54B provides 2.78x coverage of total debt 16.76B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 2.46B provides exceptional 57.08x coverage of minority interest expenses 43.14M, showing strong core operations.
  • Operating cash flow of 2.46B provides strong 151.09x coverage of stock compensation 16.30M, indicating sustainable incentive practices.
  • Robust free cash flow of 2.46B exceeds capital expenditure of 2.12M by 1162.03x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 2.46B provides 37.05x coverage of SG&A expenses 66.46M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 2.46B barely covers its investment activities of (1.03B), with a coverage ratio of -2.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 2.46B provides thin coverage of dividend payments of (1.83B) with a -1.35 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 2.46B represents just -41.39x of debt issuance (59.43M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Cash position of 507.50M provides only 0.60x coverage of interest expenses of 841.50M, indicating potential refinancing risks in a rising rate environment.
  • R&D investment of 0 represents just 0x of SG&A expenses of 66.46M, indicating potential underinvestment in innovation relative to administrative overhead.

Legal Entity Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VICI Vici Properties Inc. 30.39 Bn 11.76 8.24 16.76 Bn
2 WPC W. P. Carey Inc. 16.39 Bn 35.15 9.55 8.72 Bn
3 BNL Broadstone Net Lease, Inc. 2.77 Bn 40.51 8.39 2.34 Bn
4 SAFE Safehold Inc. 1.15 Bn 10.07 2.99 4.59 Bn
5 AAT American Assets Trust, Inc. 1.13 Bn 20.37 2.60 1.69 Bn
6 ESRT Empire State Realty Trust, Inc. 0.91 Bn 16.82 1.33 2.06 Bn
7 CTO CTO Realty Growth, Inc. 0.60 Bn 6,383.33 35.13 0.60 Bn
8 GNL Global Net Lease, Inc. 0.57 Bn 11.86 2.57 2.93 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.00 0.68
EV to Cash from Ops. EV/CFO 21.18 -30.44
EV to Debt EV to Debt 2.78 1.31
EV to EBIT EV/EBIT 13.71 52.23
EV to EBITDA EV/EBITDA 13.64 6.51
EV to Free Cash Flow [EV/FCF] EV/FCF 21.23 21.01
EV to Market Cap EV to Market Cap 1.53 6.71
EV to Revenue EV/Rev 12.64 9.65
Price to Book Value [P/B] P/B 1.20 0.98
Price to Earnings [P/E] P/E 11.76 385.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.53 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 66.70 90.61
Dividend per Basic Share Div per Share (Qtr) 1.75 1.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 75.84 -0.65
Interest Coverage Int. cover (Qtr) 4.32 0.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 75.33 -246.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 42.69 49.26
Dividend Growth (1y) % Div 1y % (Qtr) 4.23 2.40
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -0.33 -20.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.20 -2.00
EBIT Growth (1y) % EBIT 1y % (Qtr) 0.10 -20.80
EBT Growth (1y) % EBT 1y % (Qtr) -0.52 -13.26
EPS Growth (1y) % EPS 1y % (Qtr) -3.32 -38.39
FCF Growth (1y) % FCF 1y % (Qtr) 6.71 -62.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.43 -1.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.11
Cash Payout Ratio Cash Payout (Qtr) 0.74 0.34
Cash Ratio Cash Ratio (Qtr) 0.00 0.00
Current Ratio Curr Ratio (Qtr) 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.61 0.82
Interest Cover Ratio Int Coverage (Qtr) 4.32 0.73
Times Interest Earned Times Interest Earned (Qtr) 4.32 0.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 91.70 38.58
EBIT Margin % EBIT Margin % (Qtr) 91.61 10.26
EBT Margin % EBT Margin % (Qtr) 70.41 -13.89
Gross Margin % Gross Margin % (Qtr) 97.40 59.91
Net Profit Margin % Net Margin % (Qtr) 70.20 -17.09