5 New Stock Picks of Brian Higgins’ King Street Capital

2. VICI Properties Inc. (NYSE:VICI)

King Street Capital’s Stake Value: $21,308,000

Percentage of King Street Capital’s 13F Portfolio: 1.79%

Number of Hedge Fund Holders: 47

VICI Properties Inc. (NYSE:VICI) is a New York-based REIT that invests mainly in casino properties. Brian Higgins, via King Street Capital, holds 750,000 shares of VICI Properties Inc. (NYSE:VICI), worth $21.3 million, representing 1.79% of the firm’s Q3 portfolio. 

In the third quarter earnings report, published on October 27 by VICI Properties Inc. (NYSE:VICI), the company posted a GAAP EPS of $0.28, missing estimates by $0.18. Revenue over the period totaled $375.70 million, up 10.61% year-over-year, beating estimates by $287,570. 

Morgan Stanley analyst Thomas Allen resumed coverage of VICI Properties Inc. (NYSE:VICI) with an Equal Weight rating and a $32 price target on December 15. While VICI Properties Inc. (NYSE:VICI) has increased scale, diversified its tenant base, and “further proven itself as a blue chip REIT”, the analyst is more concerned about growth than he has been in the past given that gaming REITs have historically driven much of their annual AFFO growth through acquisitions and the market has become more competitive. 

Of the 47 hedge funds that were bullish on VICI Properties Inc. (NYSE:VICI), Gates Capital Management is the largest stakeholder of the company, with almost 7 million shares worth $198.8 million, increasing its stake in the company by 98% in the third quarter.