5 Best Commercial Real Estate Stocks To Buy According To Hedge Funds

2. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 39

VICI Properties Inc. (NYSE:VICI) is a real estate investment trust that holds an extensive portfolio of top-tier gaming, hospitality, and entertainment destinations, including renowned establishments like Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas. VICI Properties Inc. (NYSE:VICI) is one of the best commercial real estate stocks to invest in. On June 8, the company declared a $0.39 per share quarterly dividend, in line with previous. The dividend is payable on July 6, to shareholders of record on June 22. 

On April 5, Mizuho initiated coverage of VICI Properties Inc. (NYSE:VICI) with a Buy rating and a $35 price target. The firm noted that VICI Properties Inc. (NYSE:VICI) is one of only two gaming-focused real estate investment trusts and possesses an exceptionally high quality portfolio. Mizuho also observed that the gaming sector is experiencing increased gross gaming revenue and enjoys strong alignment with local governments. The firm expects VICI to outperform in the current macro environment due to its high-quality portfolio, which makes it an attractive option for investors seeking defensive investments.

According to Insider Monkey’s first quarter database, 39 hedge funds were long VICI Properties Inc. (NYSE:VICI), compared to 40 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 9.80 million shares worth $319.7 million. 

Baron Real Estate Income Fund made the following comment about VICI Properties Inc. (NYSE:VICI) in its Q4 2022 investor letter:

“We remain optimistic about the Fund’s triple net gaming REIT investments in VICI Properties Inc. (NYSE:VICI) and Gaming and Leisure Properties, Inc. The companies primarily own quality casino and gaming real estate properties. They have attractive dividend yields in the 5% to 6% range that are well covered, accretive acquisition growth opportunities, and are, in our opinion, attractively valued.

We remain mindful of the rising interest rate environment and the possibility that higher debt costs and lower equity prices could negatively impact the ability for net lease REITs to invest in an accretive fashion.”

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