Vici Properties Trade Call

24 days ago

"Now looking at where Vici is trading at, it's trading at 11 times price to adjusted from operations per share which is a metric we use for rates but 11 times is heavily discounted. The stock used to trade an average of 13 14 15 times now trading at 11 and a half times. I never imagined I'd see it back at 11 times but this is what happens. So if you're buying BC today, you're betting also on a multiple reversion back to the average from 11 to 14, which could be powerful. You're also getting a dividend. The dividend right now is about 6.4% which is very very high and it's very sustainable in my opinion. And you're also getting some AFO per share growth of about 4% in 2025 and 3.5% in 2026. So if I had to sum up an annual return, I would take in three and a half% in AFO per share growth and add it to the dividend yield of about 6 and a half%. This is about a 10% annual return for just holding VC."

The speaker argues that VC Properties is undervalued, trading at a significant discount compared to its historical multiples. He emphasizes the sustainable dividend yield of around 6.4% and modest earnings growth, suggesting that a multiple reversion from 11x to around 14-15x, along with steady growth, could deliver roughly a 10% annual return. This presents an income-generating, long-term buying opportunity.

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