iREIT Daily

VICI Is Doubling Down… Glad I Tripled Down During The Pandemic

Brad Thomas

467 postsAugust 4, 2021

Did you hear about the VICI Properties (VICI) news this morning?

Thanks to my insider connections, I did – even before the market announced the latest big real estate investment trust (REIT) merger news. And I can’t wait to share it with you down below!

I was already well into writing my regular sort of introduction before that point though. So I’m still including that information.

But everything else is thrown off course. So it isn’t going to look like our normal recap of REIT earnings despite companies like the following reporting:

Broadstone Net Lease (BNL)
Community Healthcare Trust (CHCT)
Douglas Emmett (DEI)
Physicians Realty Trust (DOC)
Franklin Street Properties (FSP)
The GEO Group (GEO) – yes, it’s still a REIT right now
Global Medical REIT (GMRE)
Hudson Pacific Properties (HPP)
Host Hotels & Resorts (HST)
Healthcare Trust of America (HTA) – which had additional enormous news yesterday
Summit Hotel Properties (INN)
JBG Smith (JBGS)
Life Storage (LSI)
Macerich (MAC)
National Storage Affiliates (NSA)
Healthpeak Properties (PEAK)
Public Storage (PSA)
PS Business Parks (PSB)
QTS Realty Trust (QTS)
Retail Properties of America (RPAI)…

And on and on from there.

I very much want to include four of those this morning. But I just don’t have the time considering the VICI parts and pieces.

So, with that admitted and acknowledged, let’s get down to business, starting with the news that originally caught my attention… before the VICI announcement.

The Non-VICI News You Might Be Interested In (and No, It Has Nothing to Do With Cuomo)

I didn’t get around to mentioning the CDC’s eviction ban ending until a few days after the fact. And, of course, that just happened to be hours before the government decided to reinstate it after all.

Talk about timing.

Looks like we’re kicking the can down the road again, this time to October 3rd. Which isn’t surprising. I was only surprised it didn’t happen right away.

Not that it matters, but here’s CDC Director Dr. Rochelle Walensky’s justification:

“The emergence of the delta variant has led to a rapid acceleration of community transmission in the United States, putting more Americans at increased risk, especially if they are unvaccinated. This moratorium is the right thing to do to keep people in their homes and out of congregate settings where Covid-19 spreads. It is imperative that public health authorities act quickly to mitigate such an increase of evictions, which could increase the likelihood of new spikes in SARS-CoV-2 transmission. Such mass evictions and the attendant public health consequences would be very difficult to reverse.”

Gosh, but I’m happy we deal with high-class REITs instead of mom-and-pop apartment buildings. That is not a fun or profitable place to be right now, to understate the situation significantly.

In other non-REIT news, Robinhood seems to have shaken off the ill will that attacked its IPO last week. It’s up and away now enough to warrant a whole article on Yahoo Finance.

And the China clampdowns continue, at least on a psychological level. The next potential target: social media and video games. Meanwhile, JPMorgan Chase (JPM) CEO Jamie Dimon told Fox Business yesterday that he’s as automatically hot on China anymore.

That’s based on JPM’s financing of ride-sharing giant Didi Global (DIDI), which China is now regulating. Like so much else.

The World According to REITs

In potentially REIT-affecting news, New York City Mayor Bill de Blasio is mandating Covid passports for his jurisdiction. Anyone who wants to go to a restaurant, a gym, or a show must now prove they’ve been vaccinated.

And in definite REIT news, it looks like another merger deal is done. Or very nearly so.

Shareholders of both Kimco Realty (KIM) and Weingarten Realty Investors (WRI) have approved everything necessary to close on their merger. A whopping 99.9% of the former were in favor of the blending. And 99.6% of the latter.

Also, I might be writing a larger article about this later… but Healthcare Trust of America’s(HTA) very big-name CEO Scott D. Peters resigned yesterday. There’s plenty of gossip about why, but I want to wait to see what actual news clears before I make a single comment.

All I’ll do is report the news that Director Peter N. Foss will step in as interim president and CEO in the meantime.

Yet, even bigger than that is how – unless something unexpected happens from here – VICI Properties will swallow up its fellow gaming REIT MGM Growth Properties (MGP). In which case, there will only be two names in this sub-sector:

VICI
Gaming and Leisure Properties (GLPI).

In that order.

All About VICI Properties’ Merger Announcement

Here’s what we know so far about the agreement:

VICI will acquire MGM for $17.2 billion, including the assumption of about $5.7 billion of debt.
MGP Class A shareholders will receive 1.3666 shares of VICI per current share they own.
The merger will boost VICI to an estimated enterprise value of $45 billion.

Last week, I interviewed VICI CEO Ed Pitoniak, who referenced the company’s modest merger and acquisition load – at the time. The REIT is working with just 18 employees and a little less than $30 million annually to run the business.

He summed that up as “one of the most efficient cost models in American REIT management,” adding that:

“When we acquire another $1.00 of [net operating income], 99.9% of it goes straight to the investor because we obviously use debt. But after the debt service, the flow through of the remaining adjusted funds from operations of the investor is so strong.”

That’s a VICI-specific business model I’m proud to say I’ve promoted well before this point. And I’m confident it’s only going to grow from here.

Maybe, before too long, there will be only one gaming REIT left.

You never know! Which is why I’m hoping to schedule another meeting with Pitoniak – soon! I also plan on writing a full-fledged article about this development and what it means.

Again, you probably want to sign up for Intelligent REIT Daily to stay on top of that! Just letting you know…

(Source: The Daily REITBeat)

Happy Investing

Brad Thomas

467 posts

View all my Posts

Brad Thomas is Senior Research Analyst at iREIT and CEO of Wide Moat Research LLC. With over 30 years of real estate experience, he is also long-time Editor of Forbes Real Estate Investor, a monthly subscription-based newsletter that dives deep into the vast world of profitable properties, and since 2021, he has served as an adjunct professor at New York University.

Thomas has also been featured on or in Forbes magazine, Kiplinger's, U.S. News and World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. And he was the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 based on both page views and number of followers.

Thomas is the recently-published author of The Intelligent REIT Investor Guide (2021), co-author of The Intelligent REIT Investor (2016), and he wrote The Trump Factor: Unlocking The Secrets Behind The Trump Empire (2016) - all available on Amazon.

Thomas received a bachelor of science in business/economics from Presbyterian College and is married with five wonderful kids.

REIT Mutual Fund	Symbol
Alpine Realty Income and Growth Fund	AIGYX, AIAGX
American Century Real Estate Fund	REAIX, REACX, AREEX, AREWX, ARYCX, AREDX
Real Estate Securities Fund	MRESX
AR Capital Real Estate Income Fund	ARIAX, ARICX, ARIPX
AssetMark Real Estate Securities Fund	AFREX
Aston/Harrison Street Real Estate Fund	AARIX, ARFCX
Baron Real Estate Fund	BREIX, BREFX
BlackRock Real Estate Securities	BIREX, BAREX, BCREX
Brookfield U.S. Listed Real Estate Fund	BRUAX, BRUCX, BRUIX, BRUYX
CGM Realty Fund	CGMRX
West Loop Realty Fund	REIIX, REIAX, REICX
Cohen & Steers Institutional Realty Shares	CSRIX
Cohen & Steers Realty Income Fund	CSEIX, CSDIX, CSBIX, CSCIX
Cohen & Steers Realty Shares	CSRSX
Columbia Real Estate Equity Fund	CREAX, CREIX, CRRVX, CRERX, CREEX, CRRFX, CREWX, CRECX, CREBX
Compass EMP REC Enhanced Volatility Weighted Fund	CWRAX, CWRIX, CWRTX, CWRCX
Davis Real Estate Fund	RPFRX, DREYX, DRECX, DREBX
Delaware Real Estate Investment Trust Portfolio II	DPRTX, DPRBX
Delaware Real Estate Investment Trust Portfolio	DPREX, DPRSX, DPRRX, DPRCX
DFA Real Estate Securities Portfolio	DFREX
Dunham Real Estate Stock Fund	DAREX, DNREX, DCREX
DWS RREEF Real Estate Securities Fund	RRRRX, RRREX, RRRAX, RRRSX, RRRBX, RRRCX
DWS RREEF Real Estate Securities Income Fund	REFAX, REFCX, REFIX, REFSX
Eaton Vance Real Estate Fund	EAREX, EIREX
EII Realty Securities Fund	EIIRX
Fidelity Advisor Real Estate Fund	FHEIX, FHEAX, FHETX, FHECX, FHEBX
Fidelity Advisor Real Estate Income Fund	FRIRX, FRIQX, FRINX, FRIOX
Fidelity Real Estate Income Fund	FRIFX
Fidelity Real Estate Investment Portfolio	FRESX
Fidelity Spartan Real Estate Index Fund	FSRNX, FRXIX, FSRVX
Fidelity Series Real Estate Equity Fund	FREDX, FREFX
Fidelity Series Real Estate Income Fund	FSREX, FSRWX
Forward Real Estate Long/Short Fund	KSRYX, FRLSX, FFSRX, KSRAX, KSRCX, KSRBX
Forward Real Estate Fund	FPREX, FFREX, KREAX, KRECX
Forward Select Income Fund	KIFYX, FSIMX, FFSLX, KIFAX, KIFBX, KIFCX
Franklin Real Estate Securities Fund	FREEX, FRLAX, FRRSX, FSERX
GMO Real Estate Fund	GMORX
Goldman Sachs Real Estate Securities Fund	GREIX, GRETX, GREAX, GRESX, GRERX, GREBX, GRECX
Great-West Real Estate Fund	MXREX
Heitman REIT Fund	OARTX, OBRTX
ING Real Estate Fund	CRARX, IREWX, IDROX, CLARX, CRWRX, CRCRX, CRBCX
INVESCO Real Estate Fund	REINX, IARFX, IARIX, IARYX, IARAX, IARRX, IARCX, AARBX
Ivy Real Estate Securities Fund	IRSAX, IREIX, IRSYX, IRSRX, IREEX, IRSCX, IRSBX
John Hancock Real Estate Securities Fund	JIREX
Johnson Realty Fund	JRLTX
J.P.Morgan Realty Income Fund	URTLX, JRIRX, URTAX, URTBX, URTCX
J.P. Morgan Security Capital U.S. Core Real Estate Securities Fund	CEEAX, CEERX, CEEFX, CEESX, CEECX
J.P. Morgan U.S. Real Estate Fund	SUSIX
Lazard U.S. Realty Equity Portfolio	LREIX, LREOX
Lazard U.S. Realty Income Portfolio	LRIIX, LRIOX
Manning & Napier Real Estate Series	MNRIX, MNREX
Morgan Stanley Institutional U.S. Real Estate Portfolio	MSUSX, MUSDX, MSULX, MURSX
Natixis AEW Real Estate Fund	NRFAX, NRFYX, NRFBX, NRFCX, NRFNX
Neuberger Berman Real Estate Fund	NBRIX, NBRFX, NREAX, NRERX, NRECX, NRREX
Nuveen Real Estate Securities Fund	FREAX, FARCX, FRSSX, FREBX, FRLCX, FREGX
Oppenheimer Real Estate Fund	OREAX, OREIX, OREYX, ORENX, OREBX, ORECX
PHOCAS Real Estate Fund	PHREX
PIMCO RealEstateRealReturn Strategy Fund	PRRSX, PETPX, PETAX, PETDX, PETCX, PETBX
Pioneer Real Estate Shares	PWREX, PYREX, PCREX, PBREX
Principal Real Estate Securities Fund	PIREX, PIRPX, PREPX, PRETX, PREJX, PRRAX, PRERX, PRENX, PRAEX, PRCEX, PRLEX
ProFunds Real Estate UltraSector ProFund	REPIX
Prudential Select Real Estate Fund	SREAX
Prudential U.S. Real Estate Fund	PJEAX, PJEZX, PJECX, PJEBX
REMS Real Estate Income 50/50 Portfolio	RREIX
REMS Real Estate Value-Opportunity Fund	HLRRX, HLPPX
Rydex Real Estate Fund	RYREX, RYHRX, RYCRX
SA Real Estate Securities Fund	SAREX
SEI Institutional Mgd Real Estate Fund	SETAX, SEIRX
Spirit of America Real Estate Income & Growth Fund	SOAAX
SSgA Clarion Real Estate Fund	SSREX
Stratton Real Estate Fund	STMDX
T.Rowe Price Real Estate Fund	TRREX, PAREX
TIAA-CREF Real Estate Securities Fund	TIREX, TRRPX, TRRSX, TCREX
Vanguard REIT Index Fund	VGSNX, VGRSX, VGSLX, VGSIX
Virtus Real Estate Securities Fund	PHRAX, PHRIX, PHRCX, PHRBX

REIT ETF	Symbol
Flex Shares	ASET
Wisdom Tree Global Ex-US	DRW
S&P 500 Equal Weight	EWRE
iShares FTSE Industrial/Office	FNIO
MSCI Real Estate Index	FREL
S&P REIT Index	FRI
First Trust S&P REIT	FRI
iShares Real Estate 50	FTY
Flexshares Global	GQRE
iShares Cohen & Streers	ICF
iShares International Developed RE	IFGL
iShares US RE	IYR
Premium Yield Equity REIT	KBWY
ETRACS Monthly Pay 2x Leverage	MORL
Market Vector Mortgage	MORT
iShares Global REIT	REET
iShares FTSE Mortgage	REM
iShares Residential	REZ
IQ US Real Estate Small Cap	ROOF
iShares FTSE NAREIT Retail	RTL
DOW Jones Global RE	RWO
SPDR Dow Jones	RWR
Schwab US REIT	SCHH
Super Dividend REIT	SRET
ProShares Ultra RE	URE
Vanguard REIT	VNQ
Vanguard Global ex-US	VNQI
iShares International Developed	WPS
Wilshire US REIT	WREI
Pacer Benchmark Data & Infrastructure RE	SRVR
Pacer Benchmark Industrial RE	INDS
Pacer Benchmark Retail RE	RTL
Hoya Capital Housing	HOMZ
NetLease Corporate RE	NETL

REIT Name	Ticker	Annual Increases/yr
Federal Realty	FRT	51
Universal Health Realty	UHT	33
National Retail Properties	NNN	29
Realty Income	O	27
Tanger Outlets	SKT	26
Urstadt Biddle	UBA	25
Essex Property Trust	ESS	25
W.P.Carey	WPC	22
National Health Investors	NHI	17
Equity Lifestyle	ELS	15
Digital Realty	DLR	15

VICI Is Doubling Down… Glad I Tripled Down During The Pandemic

Brad Thomas

467 postsAugust 4, 2021

Featured Articles

The Great Housing Market Migration Is VERY Interesting

Let Dividends Help You Deal With Disappointment In The Stock Market

Amazon Wants to Ask What Ails You

Wall Street’s Workforce Crisis Should Be Taken Seriously

Santa Claus Has Left the Building

VICI Is Doubling Down… Glad I Tripled Down During The Pandemic

467 postsAugust 4, 2021

REIT Mutual Funds

REIT ETFs

Not All Dividends Are the Same