The 10 Largest Gambling Stocks of 2024

3. VICI Properties Inc. (NYSE:VICI)

Market Capitalization: $33.57 Billion

No. of Hedge Fund Investors: 33

VICI Properties Inc. (NYSE:VICI) is another leading real estate investment trust (REIT) that specializes in owning and acquiring properties in the hospitality, gaming, and entertainment sectors. The company has properties in well-known locations including Caesars Palace, MGM Grand, and The Venetian Resort in Las Vegas. VICI Properties has a total of 93 experiential properties, comprising 54 gaming facilities and 39 additional venues across the U.S. and Canada. VICI’s properties are managed by top industry firms, and backed by long-term, triple-net lease agreements.

During the third quarter of 2024, VICI Properties (NYSE:VICI) exceeded the revenue estimates by $10.21 million, posting a total revenue of $964.67 million, marking a 6.7% increase despite economic challenges. The earnings per share increased 27.4% year-over-year to $0.70 and surpassed estimates by $0.03 per share. Earlier in Q2, management highlighted that they are committed to allocating up to $950 million for investments in key experiential properties, preferably the Venetian Resort and several Great Wolf Resorts. VICI expects these investments to yield a 7.9% return.

VICI Properties Inc. (NYSE:VICI) is committed to experiencing future growth in Adjusted Funds From Operations (AFFO) while diversifying its portfolio. The company aims to allocate capital to both gaming and non-gaming ventures. Las Vegas has been a successful market for the company and VICI plans to invest up to $700 million in renovations at the Venetian, which will lead to increased rent, as per Q2 plans. By the end of Q3, the company settled 7 million shares and received nearly $201 million under its forward sale agreements. The proceeds will go to renovation investment at the Venetian. To add to the context, the company collects more than 45% of its rent from the Las Vegas market.

Here is what Baron Real Estate Income Fund has to say about VICI Properties Inc. (NYSE:VICI) in its Q2 2023 investor letter:

“We have slightly decreased our already modest exposure to the triple net gaming REIT VICI Properties Inc. (NYSE:VICI), an owner of quality gaming, hospitality, and entertainment properties. The company pays a 6% dividend that is well covered, has a strong track record of making accretive acquisitions, and has additional opportunities for growth in the years ahead.”