Gulf International Bank UK Ltd Cuts Stake in VICI Properties Inc by 20.1%: What It Means for Investors

Gulf International Bank UK Ltd, a prolific institutional investor, has recently decided to cut back its stake in the company VICI Properties Inc (NYSE:VICI) by 20.1%. According to the most recent 13F filing by the Securities and Exchange Commission (SEC), Gulf International Bank UK Ltd now owns 126,952 shares of VICI Properties after shedding 31,989 shares during this period. Although this move may come as a surprise to some investors, it is important to analyze the dynamics behind such a decision.

VICI Properties Inc (NYSE:VICI) is an S&P 500 experiential real estate investment trust that specializes in owning one of the biggest portfolios of market-leading gaming, hospitality and entertainment destinations globally. Some of its assets include Caesars Palace Las Vegas, MGM Grand and Venetian Resort Las Vegas – three of the most prominent entertainment facilities on the Las Vegas Strip. Being part of the S&P 500 alone indicates that it is a well-established company with significant clout in the market.

Despite being known for its impressive properties held under its name, VICI Properties also announced a quarterly dividend recently. Shareholders will be paid $0.39 per share on Thursday, July 6th if they are registered on record before Thursday, June 22nd; representatively yielding roughly $1.56 annually and returning around 5.01% compared to other stocks out there with similar magnitudes in payouts. It should be noted that Wednesday, June 21st is slated for ex-dividend – meaning otherwise potential shareholders who missed yesterday’s deadline will not be entitled to dividends received post-June.

As demonstrated by their dividend payout ratio currently at an overarching rate of approximately109%, VIDC Properties have been optimizing various strategies in order to provide growth opportunities or long-term value for their shareholders and stakeholders alike while maintaining attractive returns over timeframes which could incentivize big players to join. While this move by Gulf International Bank UK Ltd may be seen as a sign of lack of confidence in VICI Properties, there could also be other contributing factors such as market volatility or even the slow re-opening of entertainment destinations amid the ongoing pandemic.

Nonetheless, it is important for investors to keep a close eye on both the moves made by VICI Properties and those made towards it. As always, should an investor choose to invest in any company, thorough diligence is advised so as to minimize risk and increase returns.

Institutional Investors Increase Stake in VICI Properties, but Can it Overcome Challenges in the Competitive Gambling Industry?

VICI Properties, a real estate investment trust that owns and operates gaming, entertainment, and hospitality destinations across the United States, has recently been bought and sold by several institutional investors and hedge funds. Among these investors is RB Capital Management LLC, which expanded its stake in VICI Properties by 19.5% during Q1 2021, currently owning 20,921 shares worth $595,000 after acquiring an additional 3,415 shares in the last quarter. Great West Life Assurance Co. Can also lifted its holdings in VICI Properties by 0.3%, while Private Advisor Group LLC and MetLife Investment Management LLC both purchased a new stake in the company for $357,000 and $358,000 respectively.

Despite its positive investor reception, VICI opened at merely $31.12 on Friday with a PE ratio of 21.76 and P/E/G ratio of 2.31 tied to a market cap of $31.25 billion. Although the business has had good streaks throughout the past year since hitting its low ($28.50), it has struggled to rise beyond its high from March of this year at $35.69 despite positive analyst reviews like those from JMP Securities which reaffirmed VICI’s “market outperform” rating.

According to data from Bloomberg Reviews’ consensus ratings model (which looks at ratings from various analysts), VICI currently boasts a “Moderate Buy” rating alongside a consensus target price of coming in at just over $37; however this falls just below Wolfe Research’s reduced prediction for targeted pricing being shifted downwards from its previous estimate of $46 to now match a valuation around that final dollar amount per share (i.e., decreasing their respective target prices). With more competition on the horizon for emerging gambling alternatives (including online gaming platforms) attention will be placed on whether institutional enthusiasm alone can carry VICI forward into becoming one of the burgeoning powerhouses within this emerging niche.