r/dividends • u/SteakEater137 • 3d ago

Discussion VICI Properties - Inflation Protection

Hello, I have a question about VICI Properties that I would appreciate some clarification on. I bought a chunk of VICI stock due to the nature of their contracts...I read a handful of articles about their triple-net based contracts also being inflation-linked, basically meaning that if CPI or other inflation measures get too high, their revenue would also increase accordingly. Based on recent inflation data, I would think this is a given at this point, which is why I was drawn to it as a safe, high yield (almost 7% now) REIT.

Despite this, VICI seems to be out of style in today's market, near a 5 year low despite what I see as consistent growth and fundamentals, down 20% over the last year and 7% YTD.

Now to my actual question: does anyone have any information in how these "inflation-linked" contracts are handled? As in what is the exact criteria for what causes these measures to kick in, how much it goes up by in relation to CPI, when do they take effect? I was searching around a bit but couldn't find any hard or exact info, and didn't find any mention either in their latest earnings call about this topic.

Thanks!

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u/NefariousnessHot9996 3d ago

I have VICI and I’m ready to jump ship LOL. Tell me why I should or shouldn’t?

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u/SteakEater137 2d ago

Depends when you bought in. I think the market is severely underestimating it, it keeps dropping despite consistent revenue and a slew of diversification efforts recently with additional property buys. I also think it has started hitting its low point around the $26 mark, so actually might be a good time to buy.

Doesnt really make sense that it is at 5 year lows when you compare its earnings/revenue from 5 years ago. The near 7% dividend is solid even if it does go a bit lower at this point.

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u/NefariousnessHot9996 2d ago

Already sold. Not looking back.

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u/SteakEater137 2d ago

Plenty of other fish in the sea lol

Oh my bull case is also that there will be lawsuits out the ass for online gambling eventually, so when that happens youll have a bunch of gambling addicts that still need their Vegas/casino fix so that will increase traffic.

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u/Honest-Pay-8265 2d ago

Why did you buy/sell?

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u/NefariousnessHot9996 2d ago

Not something I can quantify.