In keeping with its investments in interesting properties, this REIT just agreed to provide a $79.5 million mezzanine loan investment related to the development of the more than $250 million Great Wolf Lodge Mid-Atlantic project in Perryville, MD. The shares have a current annual dividend yield of 4.18%, paid quarterly.
VICI Properties Inc. (VICI)
From Weiss Ratings
There’s still speculation as to when the economy is going to fully open. But there’s no doubt people are eager to rebook canceled vacations.
I have multiple friends that have decided Las Vegas was going to be one of their first out-of-state destinations. But gambling stocks aren’t looking so hot. Caesars Entertainment, Inc. (CZR), MGM Resorts International (MGM) and even DraftKings Inc. (DKNG) are all sitting in “sell” territory.
How can we collect a piece of the inevitable recovery in Sin City?
Look no further than VICI Properties Inc. It’s a real estate investment trust (REIT) that focuses on experiential properties. It has one of the largest portfolios of gaming, hospitality, and entertainment destination real estate. This includes the world-renowned Caesars Palace.
Its properties are leased to the big names in the business including Caesars Entertainment, Penn National Gaming, Inc. (PENN) and Hard Rock International.
It also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas strip.
VICI’s REIT status requires it to pass through most of its money to its partners or shareholders. The company currently pays a solid 4%+ dividend yield, and shares are up 31% year to date. So, I’d strongly suggest not buying those “sell”-rated casino stocks above. Instead, I’d collect a dividend from VICI since it has a “buy” rating with more diversified risk.
Kelly Green, Weiss Ratings, Weiss Ratings, 1-877-934-7778, weissratings.com, July 22, 2021