VICI Properties (NYSE:VICI) soared in Friday’s after-hours buying and selling session on information the on line casino landlord is becoming a member of the S&P 500.
Shares of the Caesars Palace proprietor jumped virtually 7% in prolonged buying and selling following a modest decline throughout conventional buying and selling hours. VICI is one in every of two publicly traded on line casino actual property funding trusts (REITs) — Gaming and Leisure Properties (NASDAQ:GLPI) — however the Mirage proprietor is the one one of many pair becoming a member of the S&P 500.
VICI, which was spun off from Caesars Leisure (NASDAQ:CZR) in 2017, is one in every of three additions to the S&P 500. Keurig Dr Pepper (NYSE:KDP) and ON Semiconductor (NASDAQ:ON) are the others.
VICI Properties Inc. (NYSE:VICI) will exchange Cerner Corp. (NASD: CERN) within the S&P 500 previous to the open of buying and selling on Wednesday, June 8. S&P 500 constituent Oracle Corp. (NYSE:ORCL) is buying Cerner in a deal anticipated to be accomplished quickly,” stated S&P Dow Jones Indices in an announcement.
VICI is greater by 4.25% year-to-date, simply beating the broader market and the true property sector.
Prestigious Accolade for VICI
Whereas the S&P 500 is house to greater than 500 shares, inclusion within the index carries an aura of status for member firms
An addition to the S&P 500 is critical for a inventory for a number of causes, together with the index’s standing because the premier avenue for monitoring US large-cap shares.
“The S&P 500 is extensively thought to be the most effective single gauge of large-cap U.S. equities. In line with our Annual Survey of Belongings, an estimated USD 13.5 trillion is listed or benchmarked to the index, with listed belongings comprising roughly USD 5.4 trillion of this complete (as of Dec. 31, 2020),” in accordance with the index supplier.
With VICI’s inclusion within the benchmark, the inventory turns into extra interesting to a broader viewers of institutional traders, together with fund managers that benchmark to the index.
VICI joins Caesars, Las Vegas Sands (NYSE:LVS), MGM Resorts Worldwide (NYSE:MGM), Penn Nationwide Gaming (NASDAQ:PENN) and Wynn Resorts (NASDAQ:WYNN) because the gaming names within the S&P 500.
VICI Asserting Itself
Past becoming a member of the S&P 500, VICI’s been a torrid tempo of acquisitions — one which created the most important proprietor of resort and conference actual property within the US.
Final yr, the REIT the Venetian, and the Venetian Expo and Conference Middle and that announcement was adopted by the $17.2 billion takeover of MGM Development Properties, which wrapped up in late April.
Not solely did VICI add 15 Las Vegas and regional casinos with the MGP deal, it added practically 41,000 resort rooms and 1.2 million sq. toes of gaming area, making it the most important on line casino landlord on the Strip.
VICI now owns the property belongings of Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, New York New York, and Park MGM, in addition to numerous regional casinos operated by MGM Resorts.