VICI Properties receives Nod for inclusion in the S&P 500 Index

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Posted on Jun 3, 2022 at 9:02 am.

Last updated on: June 3, 2022, 09:02 am.

VICI Properties (NYSE:VICI) rose in Friday’s after-hours trading session on news that the casino landlord will be included in the S&P 500.

VICI S&P 500
Excalibur on the Las Vegas Strip. Owner VICI Properties enters the S&P 500. (Image: YouTube)

Shares in the Caesars Palace owner rose nearly 7% in extended trading after slipping slightly during traditional trading hours. VICI is one of two publicly traded casino real estate investment trusts (REITs) — Gaming and Leisure Properties (NASDAQ:GLPI) — but Mirage’s owner is the only one of the two to join the S&P 500.

VICI, which was spun off from Caesars Entertainment (NASDAQ:CZR) in 2017, is one of three newcomers to the S&P 500. Keurig Dr. Pepper (NYSE:KDP) and ON Semiconductor (NASDAQ:ON) are the others.

VICI Properties Inc. (NYSE:VICI) becomes Cerner Corp. (NASD:CERN) in the S&P 500 ahead of the open for trading on Wednesday, June 8th. S&P 500 participant Oracle Corp. (NYSE:ORCL) is acquiring Cerner in a deal expected to close soon,” S&P Dow Jones Indices said in a statement.

VICI is up 4.25% year-to-date, slightly beating the broader market and real estate sector.

Prestigious award for VICI

While the S&P 500 is home to more than 500 stocks, inclusion in the index has an aura of prestige for its member companies

Inclusion in the S&P 500 is significant for a stock for a number of reasons, including the index’s status as the primary way of tracking U.S. large-cap stocks.

“The S&P 500 is widely recognized as the best single benchmark for US large-cap stocks. According to our Annual Survey of Assets, an estimated $13.5 trillion is indexed or compared to the index, with indexed assets accounting for approximately $5.4 trillion of that total (as of December 31, 2020),” the index provider said.

Adding VICI to the benchmark makes the stock more attractive to a broader audience of institutional investors, including fund managers who use the index as a benchmark.

VICI joins Caesars, Las Vegas Sands (NYSE:LVS), MGM Resorts International (NYSE:MGM), Penn National Gaming (NASDAQ:PENN) and Wynn Resorts (NASDAQ:WYNN) as gaming names in the S&P 500.

VICI prevails

Aside from being included in the S&P 500, VICI has maintained a frenzied pace of acquisitions — one that has produced the largest owner of hotel and convention real estate in the United States.

Last year it was followed by the REIT the Venetian and the Venetian Expo and Convention Center, and that announcement was followed by the $17.2 billion acquisition of MGM Growth Properties, which closed in late April.

VICI not only added 15 Las Vegas and regional casinos with the MGP deal, but also added nearly 41,000 hotel rooms and 1.2 million square feet of gaming space, making it the largest casino rental company on the Strip.

VICI now owns the real estate properties of Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, New York New York and Park MGM, as well as various regional casinos operated by MGM Resorts.

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