Much of the focus this year was on VICI’s recent deal to acquire the real estate of the Venetian Resort in Las Vegas, with Apollo as a new tenant. Looking ahead, many on Wall Street are very positive on VICI’s embedded growth pipeline with Caesars Entertainment, including a put/call on the Centaur properties in Indiana (starting this month) and a right of first refusal on a strip asset sale for Caesars, which could occur soon after a full earnings before interest, taxes, depreciation, amortization and restructuring or rent costs recovery.
VICI Properties stock investors receive a 4.77% distribution. BofA Securities has set its price target at $36. The consensus target is $35.13, and shares closed trading on Tuesday at $29.56.
This is a large net lease REIT with an incredible distribution for income investors. W.P. Carey Inc. (NYSE: WPC) ranks among the largest net lease REITs, with an enterprise value of approximately $18 billion and a diversified portfolio of operationally critical commercial real estate that includes 1,215 net lease properties covering approximately 142 million square feet, as of September 30, 2020.
For nearly five decades, the company has invested in high-quality single-tenant industrial, warehouse, office and retail properties subject to long-term leases with built-in rent escalators. Its portfolio is located primarily in the United States and northern and western Europe, and it is well diversified by tenant, property type, geographic location and tenant industry.
Investors receive a 5.04% distribution. The Raymond James target price is $90. The consensus target is $88.33. W.P. Carey stock was last seen trading at $83.83.
Almost all these top companies have been hit by the parabolic move higher in interest rates. While growth investors do not need to overweight the sector, a low double-digit position, especially for growth and income investors, makes sense for those with a long-term investment horizon.
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