VICI Properties (NYSE: VICI) is saddled with a modest year-to-date loss, but the dominant possessor of gambling casino tangible landed estate continues attracting a crowd on Wall Street.

More than 83% of the analysts natural covering the Caesars Palace proprietor have the tantamount(p) of a “buy” rating on the caudex and, past some estimates, the existent demesne investment cartel (REIT) could carry earnings per divvy up (EPS) ontogenesis of 93% or to a greater extent this year. Under any circumstances, that’s impressive, but it’s yet more so when considering VICI shares trade at just 13.1x expected earnings.

Extensive deal-making inwards 2021 and 2022, including the purchase of the Venetian and Sands Convention Center on the Las Vegas Strip and cobbler's last year’s acquisition of contender MGM Growth Properties, stands as unity conclude VICI should follow capable to significantly get earnings this year. Wall Street is taking note. For example, VICI was latterly added to JPMorgan’s sharpen name for April, making it the only if gaming make in that group.

Significant CPI-linked leases motor seeable earnings growth, and competitory upper-case letter costs permit for accretive investment — both leading to extremely seeable earnings ontogenesis for 2023 and 2024,” wrote analyst  Susan Anthony Paolone inward a line to clients.

He rates the REIT “overweight.” The consensus damage butt on VICI is $37.68, implying upside of or so 17% from today’s close.

Palpable Enthusiasm for VICI

VICI was spun come out of Caesars Entertainment (NASDAQ: CZR) inwards 2018 when the cassino hulk required to elevate cash. Today, the tangible estate loyal is 1 of just deuce in public traded REITs with an emphasis on gaming properties. The other is Gaming and Leisure Properties (NASDAQ: GLPI).

VICI owns the dimension assets of 18 gaming venues operated past Caesars, including Caesars Palace and Harrah’s on the Strip, and Caesars Palace on the Atlantic Ocean City Boardwalk. Likewise, it’s the primary feather landlord to MGM Resorts International (NYSE: MGM). As a ensue of those relationships, VICI is the biggest property owner on the Las Vegas Strip.

Owning the tangible landed estate assets of venerable venues such as Caesars Palace, Mandalay Bay, MGM Grand, and the Venetian gives VICI a high-end portfolio analysts and investors happen desirable.

In a remark to clients earlier this week, Mizuho Securities initiated reportage of VICI with a “buy” rating and a $35 toll target. Citing a “high-quality portfolio” and the REIT’s justificatory traits, Mizuho believes VICI could outperform in the current macroeconomic environment.

VICI Sports Resilient Traits

From an investment funds perspective, the gaming REIT manufacture has to all the way the hurdle race of existence newer and smaller than other existent land sub-groups, such as apartments, healthcare, offices, and retail.

VICI tin can allay those concerns via shrewd acquisitions, continued dividend growth, and variegation of its client base.

“Since the creation of the Gaming REIT sector, the resilience of the byplay posture for this plus category has been the biggest question,” wrote Macquarie psychoanalyst Chadic Beynon. “However, we believe it continues to gain acceptance as US Gaming post-pandemic results experience highlighted strong top-line demand and improved turn a profit margins and cashflow, the to the highest degree important items for VICI. While dynamic, we await peak-to-trough revenues to transportation better vs what the Street is expecting for both the US regional market place and Las Vegas.”