Thanks to its aggressive acquisition strategy, its real estate portfolio is still growing. VICI also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. The properties include such well-known hospitality brands as Caesars Entertainment Inc. It currently owns 27 gaming facilities comprising over 46 million square feet, which collectively feature approximately 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs, and sportsbooks. (NYSE: VICI) has been my favorite casino REIT. This Operation Puts 5% Cash Back in Your Pocketįor several years now, VICI Properties Inc. Now's the time to get in on these before they make another run higher, and I'll tell you why. My two favorites raised their payouts in 2021, and I expect a hike from both of them again this year. See why I like them?įollowing their very impressive rebound off of 2020 lows, casino REITs have flattened out a bit, and the current market is offering a solid entry point. Higher dividends mean more money in an investor's pocket. Higher cash flows usually mean higher dividends. All the leases are very long-term and contain rent escalators that keep the cash flows increasing at a reasonable rate. Only the expenses of operating the corporation have to be paid out of the money collected. The cash that the REIT collects is all income. Why? Because they're what we call 'triple net REITs,' meaning the tenants are responsible for maintenance, taxes, and insurance. The profit catalyst here is nothing less than the natural human response to being cooped up for entirely too long: getting out and partying.Ĭasino REITs are among the highest-yielding sectors in this particular class of assets, and I don't see that changing anytime soon. They remain one of my favorite classes of investment, frequently paying out uncommonly high dividends in addition to their consistent gains.īut as the light at the end of the pandemic tunnel gets closer, there's one class of REITs that stands to outperform even the best REITs in this group.

I've talked about real estate investment trusts (REITs) and their track record against the rest of the stock market before - they basically destroyed the S&P 500 in 2021. Leave a Reply Click here to cancel reply.

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