VICI Properties, a real estate investment trust (REIT), saw a surge in its stock price after Jefferies analyst David Katz expressed optimism about the company’s upcoming second-quarter earnings report. Katz and his team adjusted their models to reflect rent increases at Caesars Palace in Las Vegas and rental income from the Venetian tied to a $700 million financing deal with Apollo Global Management.
Jefferies projects VICI Properties to generate $3.98 billion in revenue in 2025. The analyst reiterated a price target of $43 for the REIT, suggesting a 53% upside from the closing price on June 21. VICI’s second-quarter earnings are expected to be released on July 24.
Katz also mentioned that VICI might provide an update on its potential acquisition of Caesars Entertainment’s Centaur Holdings during the earnings call. This acquisition includes Harrah’s Hoosier Park and Horseshoe Indianapolis, two Indiana casinos acquired by Caesars in 2017.
In addition to the Centaur Holdings acquisition, Katz believes that VICI could discuss its nongaming ventures, such as its partnership with Bowlero and the Kansas City sports center. The REIT might also share information about future acquisitions in the gaming and experiential sectors, as well as potential financing deals similar to the one with the Venetian.
Given the real estate sector’s sensitivity to interest rates, VICI’s management might address their outlook on rates during the earnings call. With a focus on diversifying its tenant base and pursuing strategic deals, VICI Properties continues to attract attention from investors and analysts alike for its growth potential and financial performance.