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 very 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.
In addition, the company closed a $17.2 billion deal in April to buy out rival gaming REIT MGM Growth Properties, which owns the real estate of 15 casinos and resorts in eight states, including seven properties on the Las Vegas Strip. All of MGM Growth’s properties are operated by MGM Resorts International.
Investors receive a 5.26% distribution. VICI Properties stock has a $39 target at Citigroup. The consensus target is lower at $37.90, and the shares closed on Tuesday at $30.61.
W.P. Carey
This is a large net lease REIT with 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.
Shareholders receive a 6.20% distribution. The Raymond James price target of $80 is less than the $88.60 consensus target, but W.P. Carey stock ended Tuesday trading at $71.27.
These top stocks have been hit by rising interest rates and large-scale selling across Wall Street this year. They are all leaders in their specific REIT subsectors, offering multiple ways for investors to get steady growth and be paid substantial dependable income. Due to their rate sensitivity, we avoided the super-high-yielding mortgage REITs. Lastly, while they rallied some during the summer move higher, all these stocks have been hit reasonably hard, and are offering the best entry points for investors in well over a year.
Originally posted at 24/7 Wall St.
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