10 Best Real Estate and Realty Stocks To Buy According to Hedge Funds

7. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 38

VICI Properties Inc. (NYSE:VICI) is one of the largest owners of gaming, hospitality, and entertainment destinations in the United States. The company owns 93 experiential assets across a diverse portfolio which comprises 54 gaming properties, 39 other experiential properties, and four championship golf courses positioned across the US and Canada. Under triple-net lease agreements, its properties are occupied by gaming, leisure, and hospitality operators. The company’s strategy involves partnering with quality experiential place makers and operators to create the highest quality experiential real estate portfolio.

VICI Properties Inc. (NYSE:VICI) was formed in 2017 as a spin-off from Caesars Entertainment Corporation. Since the company started off with a focus on one property type which is casinos, some pessimists do not see it as diversified. This property type remains more vulnerable to the macro environment as in the case of lockdowns during the pandemic. However, what’s important to notice is that this focus has worked so far since the company has delivered increasing dividends to its shareholders since its initial public offering in 2018. The company’s net-lease business model has also been resilient during the COVID times.

With that being said, diversification is fundamental to the company’s long-term growth and this is what the management has recently been striving for. Back in December, the firm announced the acquisition of the leasehold interest of Chelsea Piers, the premier sports and entertainment complex in New York City. Another of its major investments apart from casinos was the acquisition of the real estate assets of 38 bowling entertainment centers from Bowlero, one of the largest operators of bowling centers in North America.

Considering how VICI Properties Inc. (NYSE:VICI) has so far generated value for investors, its future potential, and current efforts to diversify the core focus, it is one of the best real estate stocks to buy now. As of March 31, the company had 38 hedge fund holders.