Caesars Entertainment filed for Chapter 11 bankruptcy in 2015, which led to the start of VICI Properties.
After Caesars got out of bankruptcy in 2017, the REIT opened its doors. It began with a total of 19 locations that Caesars once owned. VICI has quickly bought new properties, including the Venetian Resort Las Vegas and Harrah’s, both of which are well-known brands.
The REIT bought MGM Growth Properties LLC in 2022, which gave it the most land on the Las Vegas strip. It also bought the last remaining shares of the MGM Grand Las Vegas and Mandalay Bay at the start of this year. VICI Properties now has 49 gaming facilities with more than 59,000 hotel rooms and 124 million square feet of space.
Even though most of VICI Properties’ buildings are in the Las Vegas area, the company is also strong in the South, the Midwest, and New England. There are four championship golf courses among these places. They are in Nevada, Indiana, and Mississippi. The average lease in these buildings is 40 years, which means a steady source of income for a long time.
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Even when the pandemic was at its worst, its tenants stayed true to their word and paid their rent. VICI has already worked with a lot of big names, but it still wants to work with other big names in the gaming industry. The fun doesn’t end there, though. The REIT owns 34 acres of land in Las Vegas that hasn’t been built on yet, so it can add to it as it sees fit.
Even though the market was bad in 2022, VICI Properties stock is still 11% higher than it was a year ago. Investors agree that the REIT’s aggressive strategy and strong business relationships make it a good way to make money, and that’s why they bought into it. There are no signs that VICI will stop doing better than the market in the near future.
A dividend yield of about 5% is just icing on the cake of an already delicious opportunity.