VICI can raise rents with inflation, but Las Vegas traffic weakness could hurt it; its outlook has few analysts beyond 2029 and one fanciful number. Casino demand needs recovery, and a longer downturn with higher rates and a likely recession next year would worsen it. Deeper decline may come first; risky but valuable.
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VICI Company, we discussed it in another video. We will put all the video links we mentioned in the description below. They have the right to increase rents in line with inflation.
If traffic in Las Vegas drops as it has in the past, the situation may look even worse. Another example is MGM; the same story there, and the same decline there. Wall Street's outlook for the future remains stable.
I'm looking beyond 2029, there aren't many analysts, so it's just one person putting forward a fanciful number. Macau is cheaper, with a dividend yield of 8%, so that might be interesting, but things have settled down there too.
When it comes to these gambling companies, they will need an economic recovery, increased consumer spending, and all of these factors are under pressure right now. We may have to wait for a deeper decline, and then wait for that shift.
The longer the downturn lasts, with rising interest rates and fuel costs, and the likelihood of a recession next year, things will get worse. A risky situation, although it appears to be a valuable investment opportunity.