Phillips 66 remains a top refining idea across Wall Street, where many continue to see headroom for incremental capital returns. Most analysts are very constructive on a positive rate of change at Refining in 2022 at the company. In addition, they continue to see attractive nonefining value in the other segments.
Investors receive a 4.87% dividend. Wells Fargo’s $127 price target is greater than the $115.39 consensus target. Phillips 66 stock ended Wednesday’s trading at $79.65.
VICI Properties
This is the top pick across Wall Street in the net lease group, and it is an ideal pick for investors who are more conservative and looking for gaming exposure. VICI Properties Inc. (NYSE: VICI) is a triple net lease real estate investment trust (REIT) that was spun out of Caesars Entertainment post-bankruptcy.
The company has 23 mixed-use gaming, lodging and entertainment properties in its portfolio, and a subsidiary that owns four championship golf courses. VICI also owns roughly 34 acres of undeveloped land in Las Vegas, which it leases to Caesars.
Much of the focus has been 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 positive on VICI’s embedded growth pipeline with Caesars Entertainment, including a put/call on the Centaur properties in Indiana (starting in January) 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.
Investors receive a 4.56% distribution. The VICI Properties price target at Goldman Sachs is $39, while the consensus target is $35.13. Shares closed at $31.60 on Wednesday.
W.P. Carey
This net lease REIT has 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 5.16% distribution. Raymond James has set a $95 price target. The consensus target is $88.33. W.P. Carey stock closed at $82.17 on Wednesday.
Both oil and gold have sold off significantly this year and are offering outstanding entry points for investors looking to get a degree of inflation protection after the staggering increase in prices paid. It is important to remember that the consumer price index report is a trailing, or backward-looking, data set. The sharp drop in energy pricing likely will not be a factor until the July report comes out in early August. Also remember that the three REITs pay distributions that may contain return of principal.
Originally posted at 24/7 Wall St.
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