Vici Properties bets big with $1.16B casino acquisition and soaring institutional backing
Vici Properties, a leading casino real estate investment trust, has seen a significant boost in its institutional investor holdings. BlackRock and Vanguard have notably increased their stakes, attracted by the company's stable cash flow and expanding US casino property portfolio. Analysts predict a potential 17.5% gain in Vici Properties' stock, with an average price target of $35.69.
Vici Properties is set to acquire seven casino properties, including The Strat Hotel in Las Vegas, in a $1.16 billion deal expected to close by mid-2026. Alongside this acquisition, Vici Properties will assume $426 million of Golden Entertainment's debt. This transaction is projected to be immediately accretive to adjusted funds from operations (AFFO) per share. The acquisition marks the beginning of Vici Properties' strategic offensive in the casino industry.
Institutional investors hold a majority stake of 97.71% in Vici Properties, with notable investors like Allworth Financial and Banco Bilbao Vizcaya Argentaria increasing their holdings. Vici Properties has also raised its quarterly dividend to $0.45, maintaining a sustainable payout ratio of 68.7%.
Vici Properties' recent developments, including its billion-dollar acquisition and increased institutional investment, signal a confident outlook for the company. With analysts predicting a potential stock gain and a strategic expansion in the casino industry, Vici Properties continues to demonstrate its appeal as a reliable investment opportunity.
