@@tomrodgers6726 I think that there are better options in today’s market. I am not a h big fan of such diversified REITs. They tend to stay perpetually undervalued. I highlight my portfolio in my REIT newsletter. There is a 2 week free trial. Link in description. Thanks for your interest!
Kiitos hyvästä ja mielenkiintoisesta läpikäynnistä! Olisi mielenkiintoista kuulla tulevaisuudessa lisää esim. W. P. Careystä yhtiönä ja kiinteistöyhtiöihin sijoittavista ETF-rahastoista 👍
Very good video and analasys, it is also important to note that Vici was created by its tenants to save taxes. So this lowers the risk of them not paying the rent or switching to an competitor to almost zero
Another thing I think you forgot to add is that the Vici dividend increased by around 7% from 2022 to 2023 while the Realty dividend only increased about 3%. So the Vici dividend increase beat inflation while Realty’s increased with inflation.
First, Realty Income recently acquired Wynn's resort and casino in Boston for $1.7B. That deal has 30 years term with additional 30 year extension after (1.75% annually increasing rent for the first 10 years and same percentage or CPI, greater of the 2 but capped at 2.5%, for the remaining duration). I think it is their first venture into casino properties, wouldn't be surprised if they look for more opportunities like that. Second, while it is probably low-ish risk of bankruptcy or leaving, in case it does happen, wouldn't it be far more difficult to find a new tenant for the property? It seems like they have somewhat riskier portfolio for a possible recession.
Thanks for your comment. Yes, that was their first major casino investment and it is a good property. But the vast majority of Reatly Income's properties remain the dollar general type that only has very small rent hikes and weaker leases. They are very large in size already so they would need to make a lot of these casino investments to really become comparable to VICI. Remember that VICI suffered 0% missing rents during the pandemic, which was the worst possible crisis for Casinos. Realty Income did quite a bit worse. A recession would not be as severe. Gambling is quite ression-resillient after all. In case of bankruptcy, it would be a debt restructuring and I would expect the lease to be assumed as it is because the property is mission-critical to the tenant. If not, you could also release such trophy assets to competing operators. There would be significant demand for them. Limited supply, casino license, and brand value are clear risk-mitigators.
@@askjussi how can they possibly grow? O bought the rest already. Are many new giant casinos popping up anytime soon? I dunno, you’re always trying to give an alternative to O. I have to say nO. REITS are not safe. Have to know alot.
Very good video I realy appreciated this kind of video. The nex time could you talk a bit more also of the risk side like if they have a big or a small amount of debt or what ever
I just found Gaming and Leisure Properties, Inc. (GLPI) which has a lower valuation and higher dividend than VICI. Could you do a video analysis on it?
Sure, thank you for the suggestion. I like GLPI as well, but it has more leverage and its portfolio is inferior in quality. It has also grown slower in the past and this explains the lower valuation/higher yield. I am bullish on both.
Do you notice someone regularly purchases a lot of VICI after hours driving the stock up it spikes up and then they sell it and it comes right back down. What going on with that? If you haven’t noticed it check it out you’ll see what I’m talking about. I own VICI it’s 4% of my portfolio I think it will do really well I just think something sketchy is going on after hours regularly.
Thank you for sharing. I like GLPI as well and don't have a strong preference at this time. I slightly prefer GLPI for its lower cost of capital and greater focus on LV.
Since learning more about REIT`s has opened so many more options to my investing and swing trading's approach. Both of these REIT are very desirable for different purposes for me. I enjoy and embrace your research.
Buy now and do DCA, or wait till it comes down a little bit to start buying it? 🤔 Thank you very much for your videos, high quality! Greetings from Spain.
Hey I appreciate your interest! I don’t think that it is possible to predict what the market will do in the long run so I don’t worry about it. I buy and hold for the long run.
Jussi, I'm a big fan both of VICI and of the depth of your analyses on High Yield Landlord. I'm NOT a big fan of the sudden appearance in this video of the shirtless guy with the Dad bod. And I say that as a guy with a Dad bod. Please find some other way to depict the point in question. :)
thanks for the info, the only thing I would worry about VICI is if a major financial crises hits, I think the casinos and similar degenerate businesses would be the first things to suffer, as less people would have the money to gamble it away. but the general public is notorious for its vices and general irresponsibility so its hard to tell how they would do in a prolonged economic downturn.
That’s a good point. But remember that VICI did really well even through the pandemic, which was the worst possible crisis for casinos. They did a lot better than even their peers, collected 100% of rents, and hiked its div by 11%.
@@askjussi that's a good point, but the pandemic was over pretty quickly, and it was mostly hype from mainstream media, people could gamble their stimulus checks, while collecting unemployment and such, I think the next financial crises will be a lot worse. I'm not saying VICI isn't a good pick because I like them too, I just wonder how they would perform in a real, sustained financial crises.
@@jamalmodica3286 That’s also true. One last point: gambling is actually quite resilient to recessions. People want an escape. And since tenants are very dependent on these properties, they keep paying rent even if fundamentals suffer a bit temporarily.
I really like your work, both on Seeking Alpha and now on RUclips. BTW I am long VICI. The CEO is brilliant and the company an 800 lb. gorilla in the room...
I am a subscriber of yours on Seeking Alpha. In this video you failed to mention what the business of VICI is, or their recent buyout of MGM, or their size and dominance in casino properties. Of course I am an investor in VICI based on your recommendations over a year ago and I am appreciative. Also when you described Double Net leases in the video I think there is an error when you stated that the tenant pays for the maintenance when you meant to say that the owner pays for some of that maintenance. Correct me if I got that wrong.
Thank you for your interest! VICI is a triple net lease, just like O, but its underlying assets are mainly casinos, which have many advantages as we discuss in the article. Double net leases can vary, but generally, the landlord is responsible for some of the capex - you are correct.
Vici looks like the perfect cash-out hole in the tax system of the casino's big-shots: they pay rents to a REIT which was made as a spin-off from their bankrupt business overburden with debt, and get around 90% of the money untouched by corporate tax. A real recession will be the real test for Vici, their only hope is to diversify enough until then.
You need to remember here that the casino part of these properties is relatively small in most cases. The hotel, entertainment, shopping, etc. are what make up the bulk of it. Think about the Caesars Palace. VICI survived the pandemic better than O, which was the worst possible crisis for the company. A lot worse than a regular recession.
Love your content. Also I picked up EPRT last week and I'm up. And of course I own VICI, STAG, And that pain in the butt ABR 😅 I know your opinion on O realty, But I'm still hesitant to let it go.
Thanks for watching! Please let me know your thoughts in the comments.
Hello Jussi Am long time follower of yours so I have one for your expert consideration: CTO in Atlanta? Thank you.
@@tomrodgers6726 I think that there are better options in today’s market. I am not a h big fan of such diversified REITs. They tend to stay perpetually undervalued. I highlight my portfolio in my REIT newsletter. There is a 2 week free trial. Link in description. Thanks for your interest!
Long on both. Thank you for your excellent presentation and all the research you do.
I appreciate your interest! Thank you for the kind comment
I have both 😊
I enjoy your video. Great content. Thank you for creating this channel
Thank you so much for your support! Let me know if I can help with anything
Kiitos hyvästä ja mielenkiintoisesta läpikäynnistä! Olisi mielenkiintoista kuulla tulevaisuudessa lisää esim. W. P. Careystä yhtiönä ja kiinteistöyhtiöihin sijoittavista ETF-rahastoista 👍
Kiitos!!
Very good video and analasys, it is also important to note that Vici was created by its tenants to save taxes. So this lowers the risk of them not paying the rent or switching to an competitor to almost zero
Thanks for the addition
Really informative on vici, thanks for the info.
Great value others RUclipsrs analyse numbers you give real information 🎉
I really appreciate the support. Thank you!
Another thing I think you forgot to add is that the Vici dividend increased by around 7% from 2022 to 2023 while the Realty dividend only increased about 3%. So the Vici dividend increase beat inflation while Realty’s increased with inflation.
Really good analysis. Thanks a lot much appreciated
Thanks for your support!
I own both of these stocks and WP Carey. Great video.
Which do you prefer? Thanks for sharing
Great rundown. My wife doesn't know it (ha ha!) but it's her largest IRA holding.
Haha that’s funny. Tell her next time you are in Vegas
First, Realty Income recently acquired Wynn's resort and casino in Boston for $1.7B. That deal has 30 years term with additional 30 year extension after (1.75% annually increasing rent for the first 10 years and same percentage or CPI, greater of the 2 but capped at 2.5%, for the remaining duration). I think it is their first venture into casino properties, wouldn't be surprised if they look for more opportunities like that.
Second, while it is probably low-ish risk of bankruptcy or leaving, in case it does happen, wouldn't it be far more difficult to find a new tenant for the property? It seems like they have somewhat riskier portfolio for a possible recession.
Thanks for your comment. Yes, that was their first major casino investment and it is a good property. But the vast majority of Reatly Income's properties remain the dollar general type that only has very small rent hikes and weaker leases. They are very large in size already so they would need to make a lot of these casino investments to really become comparable to VICI.
Remember that VICI suffered 0% missing rents during the pandemic, which was the worst possible crisis for Casinos. Realty Income did quite a bit worse. A recession would not be as severe. Gambling is quite ression-resillient after all. In case of bankruptcy, it would be a debt restructuring and I would expect the lease to be assumed as it is because the property is mission-critical to the tenant. If not, you could also release such trophy assets to competing operators. There would be significant demand for them. Limited supply, casino license, and brand value are clear risk-mitigators.
@@askjussi how can they possibly grow? O bought the rest already. Are many new giant casinos popping up anytime soon?
I dunno, you’re always trying to give an alternative to O. I have to say nO. REITS are not safe. Have to know alot.
@@TheBooban There are lots of other casinos out there. They just did their first deal outside of the US
Very good video I realy appreciated this kind of video. The nex time could you talk a bit more also of the risk side like if they have a big or a small amount of debt or what ever
Sure! Thank you for the suggestion
very good info Jussi, as always.
Thanks!
Hello, can you please do a review on SL Green Realty? Would like to know your thoughts whether this REIT is worth keeping or not. Thanks...
Sure thanks for the suggestion!
I just found Gaming and Leisure Properties, Inc. (GLPI) which has a lower valuation and higher dividend than VICI. Could you do a video analysis on it?
Sure, thank you for the suggestion. I like GLPI as well, but it has more leverage and its portfolio is inferior in quality. It has also grown slower in the past and this explains the lower valuation/higher yield. I am bullish on both.
I have some stocks of realty income and will add vici soon to my portfolio. Thanks for video
Thanks for sharing!
Do you notice someone regularly purchases a lot of VICI after hours driving the stock up it spikes up and then they sell it and it comes right back down. What going on with that? If you haven’t noticed it check it out you’ll see what I’m talking about. I own VICI it’s 4% of my portfolio I think it will do really well I just think something sketchy is going on after hours regularly.
Great analysis, subscribed
Thanks! Let me know what REIT I should cover next
Very insightful video!!
That's great to hear, thank you!!
What reit does tiny homes?
thanks man! good research
Thank you!!
Great video, Vici is my largest reit position, also interested in GLPI, Whats your opinion about that reit? (maybe a good one for a vid)
Thank you for sharing. I like GLPI as well and don't have a strong preference at this time. I slightly prefer GLPI for its lower cost of capital and greater focus on LV.
Since learning more about REIT`s has opened so many more options to my investing and swing trading's approach. Both of these REIT are very desirable for different purposes for me. I enjoy and embrace your research.
I appreciate your interest and kind comment!
What are your thoughts on the payout ratio being over 100%?
It is not. With REITs, you need to look at payout ratios based on FFO, not EPS due to non-cash depreciation
Thanks, you sold me on VICI
Awesome :) Let me know if I can help with anything else
Buy both
Buy now and do DCA, or wait till it comes down a little bit to start buying it? 🤔
Thank you very much for your videos, high quality! Greetings from Spain.
Hey I appreciate your interest! I don’t think that it is possible to predict what the market will do in the long run so I don’t worry about it. I buy and hold for the long run.
Thoughts on CIO, PCH, and WY?
Neutral. I think that there are better options out there
I'm up 26% on VICI, Planning to buy more
I am not buying more at this time but holding to my position for the long run. Thanks for sharing!
@@askjussi Thanks Jussi. So this implies to me that the actual prices are already too pricey here, or there is no margin of safety anymore?
@@MX4551 I continue to like VICI at these valuations
Always
Adding to my vici position 💵
👍👍👍👍
Awesome explanation
Thank you so much for the support!
Jussi, I'm a big fan both of VICI and of the depth of your analyses on High Yield Landlord. I'm NOT a big fan of the sudden appearance in this video of the shirtless guy with the Dad bod. And I say that as a guy with a Dad bod. Please find some other way to depict the point in question. :)
Haha yes, I'll pass the feedback to my editor. Thank you for your support!
Do you like WP Carey?
Yes, I like it as well. We own a position in it.
I Like it too, but the price tag is acutally Not so nice. In regions of $65 and below would be a good start 😜
@@TheForge47 I will cover WPC in tomorrow's video
thanks for the info, the only thing I would worry about VICI is if a major financial crises hits, I think the casinos and similar degenerate businesses would be the first things to suffer, as less people would have the money to gamble it away. but the general public is notorious for its vices and general irresponsibility so its hard to tell how they would do in a prolonged economic downturn.
That’s a good point. But remember that VICI did really well even through the pandemic, which was the worst possible crisis for casinos. They did a lot better than even their peers, collected 100% of rents, and hiked its div by 11%.
@@askjussi that's a good point, but the pandemic was over pretty quickly, and it was mostly hype from mainstream media, people could gamble their stimulus checks, while collecting unemployment and such, I think the next financial crises will be a lot worse. I'm not saying VICI isn't a good pick because I like them too, I just wonder how they would perform in a real, sustained financial crises.
@@jamalmodica3286 That’s also true. One last point: gambling is actually quite resilient to recessions. People want an escape. And since tenants are very dependent on these properties, they keep paying rent even if fundamentals suffer a bit temporarily.
I really like your work, both on Seeking Alpha and now on RUclips. BTW I am long VICI. The CEO is brilliant and the company an 800 lb. gorilla in the room...
Thank you so much for your support!!
Two great REITs
Thanks! Which do you prefer?
@@askjussi By the moment VICI
I am a subscriber of yours on Seeking Alpha. In this video you failed to mention what the business of VICI is, or their recent buyout of MGM, or their size and dominance in casino properties. Of course I am an investor in VICI based on your recommendations over a year ago and I am appreciative. Also when you described Double Net leases in the video I think there is an error when you stated that the tenant pays for the maintenance when you meant to say that the owner pays for some of that maintenance. Correct me if I got that wrong.
Thank you for your interest! VICI is a triple net lease, just like O, but its underlying assets are mainly casinos, which have many advantages as we discuss in the article. Double net leases can vary, but generally, the landlord is responsible for some of the capex - you are correct.
VICI, BIP, OCSL........Sleep Easy!
Yes hard to go wrong with such companies
I would love to buy vici. I just don’t invest into gambling stocks. Out of principle.
Thanks for sharing. One counterpoint: these properties are not just about gambling. They are entertainment destinations with a lot more things.
Keep it halla
Vici looks like the perfect cash-out hole in the tax system of the casino's big-shots: they pay rents to a REIT which was made as a spin-off from their bankrupt business overburden with debt, and get around 90% of the money untouched by corporate tax. A real recession will be the real test for Vici, their only hope is to diversify enough until then.
You need to remember here that the casino part of these properties is relatively small in most cases. The hotel, entertainment, shopping, etc. are what make up the bulk of it. Think about the Caesars Palace. VICI survived the pandemic better than O, which was the worst possible crisis for the company. A lot worse than a regular recession.
@@askjussi Gaming pays the bills.
Love your content. Also I picked up EPRT last week and I'm up. And of course I own VICI, STAG, And that pain in the butt ABR 😅 I know your opinion on O realty, But I'm still hesitant to let it go.
Thank you for sharing your picks. I will have an interview with STAG's CFO soon