🎰 ​​What Has Vici Conquered?

Target woos workers; $UBER's losses continue


Hey Global Investor! Here’s what you need to know before the US markets open.

Market Snapshot 📈

S&P 500 (Wednesday’s Close) 4,402.66 -20.49 (0.46%)

NASDAQ (Wednesday’s Close) 14,780.53 +19.24 (0.13%)

FTSE 100 (5 PM IST) 7,109.46 -14.40 (0.20%)

NIFTY 50 (Today’s Close) 16,294.60 +35.80 (0.22%)

USDINR (Today’s Close) 74.16 (1 Year -1.27%)


🔥 Top Movers

EXPI +35.95%
BTBT +30.70%
ATOM +23.35%

CDLX -27.61%
OCFT -27.35%
AVID -23.76%


🎰​​ Vici Properties: Veni Vidi Vici?

Listen to this on Winvesta Podcast

If turning the tables had a story, this one would check all the boxes. Vici Properties Inc. (VICI) is acquiring MGM Growth Properties LLC (MGP) in a $17.2B deal – exactly three years after MGM’s efforts to acquire Vici were thwarted by the latter’s shareholders. But did Vici price MGM right? (Tweet This)

Gambling In Real Estate

Real Estate Investment Trusts or REITs are usually companies that own and operate real estate which earns income. Since REITs came into vogue in the 1960s, around 39 countries have established these structures as a means to monetize real estate.

The protagonist of today’s story aptly has its roots in the gambling capital of the world, Las Vegas. Vici was carved out of Caesars Entertainment Corporation during its reorganization from bankruptcy in October 2017.

Within three months, MGM Growth Properties, a REIT affiliated with competitor MGM Resorts International, offered to acquire Vici for $5.9B. Vici rejected the offer while stating that its prospects would be brighter as a standalone entity.

As if to prove its point, the company went public literally a month later in February 2018 raising $1.2B in its IPO. In doing so, the company sold 60M shares at $20 as against its expectation of selling 50M shares. Shares are up 50% since its stock market debut.

MGM Growth Properties was spun off from MGM Resorts in 2015 in order to house all of its real estate assets. MGM Growth gets annual payments from MGM Resorts as part of the lease arrangement. It owns over 15 destination resorts in the US with over 30K hotel rooms, 3.6M convention square footage and 1.5M casino square footage.

The Asset-Light Mantra

Vici has valued MGM Growth Properties at $17.2B. The target’s majority owner MGM Resorts will receive $4.4B in cash. Vici, for its part, will significantly expand its geographic footprint beyond its current focus in the MidWest and the South. With the addition of these fifteen properties, Vici will become the largest casino REIT globally.

MGM Growth’s shares have been valued at $43, a premium of nearly 16% to Tuesday’s closing price. This deal adds to Vici’s recent acquisition spree as it looks beyond being just a captive real estate arm of Caesars. In March, Vici had acquired the real estate assets of The Venetian on the Strip for $4B in cash from Las Vegas Sands.

The Vici-MGM transaction is expected to be completed in the first half of 2022, subject to regulatory approvals. MGM will pay Vici a rent of $860M a year with a 2% escalation per annum for the first decade.

MGM Resorts has been on mission “asset light” for almost a couple of years now. In January 2020, it sold MGM Grand and Mandalay Bay resorts and Casinos to Blackstone for $4.6B. Last month, it offloaded its Aria and Vdara resorts and the City Center complex in Las Vegas for nearly $4B, again to Blackstone.

MGM’s shareholders are upbeat given this deal cements the asset-light model and makes the company far more nimble than ever. Vici’s shareholders seem a bit more skeptical as the deal involves a debt component of nearly $6B.

Notwithstanding shareholders’ sentiments, it’s safe to say, Vici has come, it has seen, and it has conquered. Whether these moves are real successes or Pyrrhic victories, only time will tell.

Market Reaction
VICI ended at $30.18, down 0.3%, while MGP ended at $39.61, up 6.79%.

Company Snapshot 📈

VICI $30.18 -0.08 (0.26%)

Analyst Ratings (17 Analysts) BUY 88%  HOLD 12%  SELL 0%


Newsworthy 📰

Wooing: Target to pay 100% of college tuition and textbooks in a bid to attract workers (TGT -0.64%)

In The Red: Uber posts $509M adjusted loss on driver incentives even as trips rise (UBER -4.69%)

Acknowledgement: GM CEO Mary Barra confirms new electric truck and van for commercial customers (GM -8.91%)


Later Today 🕒

  • Moderna Inc. Earnings (MRNA)
  • Duke Energy Corp Earnings (DUK)
  • Illumina Inc. Earnings (ILMN)
  • Motorola Solutions Inc. Earnings (MSI)
  • Expedia Inc. Earnings (EXPE)
  • Kellog Co. Earnings (K)
  • American International Group Inc. Earnings (AIG)
  • Virgin Galactic Earnings Inc. Earnings (SPCE)
  • Vimeo Inc. Earnings (VMEO)
  • 6:00 PM IST: Initial Jobless Claims & Trade Balance

Fun Fact of The Day 🌞

If an employee of Google dies, their spouse will receive half their pay for 10 years as well as stock benefits, and any children will receive $1000 a month until they turn 19


Disclaimer: The content of this article has been created and published by Winvesta India Technologies Pvt. Ltd., in order to ease the reader’s understanding of the subject matter. The information and/or content (collectively “Information”) provided herein is general information sourced through various news reports and does not constitute a research report or a research analysis. The Information is not intended to offer advice, target or solicit any particular customer or group of customers to buy or sell securities. 

Winvesta does not render any research or advisory services and provides a more detailed description of its services on its website and mobile application along with the terms and conditions published therein from time to time. While reasonable care has been exercised to ensure that the Information is adequate and reliable, no representation is made by Winvesta as to its accuracy or completeness and Winvesta, its affiliates, subsidiaries and employees accept no liability of whatsoever nature for any direct or consequential loss, including without limitation any loss of profits, arising from reliance on this Information. Neither Winvesta nor any of its affiliates are acting as an investment adviser, research analyst or in any other fiduciary capacity. Accordingly, reader’s are expected to undertake their own due diligence in consultation with their own advisors and are advised not to solely rely on the Information. Any such reliance shall be at the reader’s own risk. 

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.


Start Building Your Global Portfolio Today

Download Winvesta App now to Get Started