8 Most Undervalued REIT Stocks To Buy Now

1. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 33

Forward P/E: 11.80

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 and 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 scale of VICI Properties Inc. (NYSE:VICI) is evident from the fact that it is one of the largest triple net lease real estate investment trusts. The company has also demonstrated a strong record of growth and tenant diversification. VICI’s assets have high barriers to entry and high financial transparency making it different from traditional net-lease REITS. The company has also diversified itself with other revenue streams by being the largest owner of hotel room real estate and privately owned meeting, convention, and event space in the US.

During the second quarter, VICI witnessed a 6.6% revenue growth, year-over-year. Net income rose 7.3% to $741.3 million while AFFO attributable to common stockholders rose 9.6%, year-over-year. Furthermore, the REIT announced up to $700 million investment through VICI’s Partner Property Growth Fund strategy to fund extensive reinvestment projects at The Venetian Resort Las Vegas. Additionally, the firm is to favor from secular trends in experiential real estate with the rising share of consumer discretionary income being spent on experiences

VICI Properties Inc. (NYSE:VICI) is a leading player in experiential real estate with quality tenants in durable sectors across attractive geographies. As of Q2, the stock is held by 33 hedge funds.

While we acknowledge the potential of VICI as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than VICI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.