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Wise investor
@wise_investor · Jan 29

📈 I'm deciding between two REITs, which one do you choose? 🚀

🔍 $VICI vs. $O: Which one is more attractive to you ?

💹 Vici Properties Inc. $VICI 🍀

VICI is one of the key players in real estate investing, with an emphasis on the entertainment and hospitality sectors. Their portfolio includes attractive properties such as casinos, hotels and resorts that provide stable and diversified income.

Dividend yield: 5.3% - quarterly dividend payment

Payout: 75%

Average annual dividend growth over the past five years: 10%

AFFO year-on-year: 7%

P/AFFO: 14

Total debt: $18 billion

Cash: $511 million.

💹 Realty Income Corporation $O 🏢

Realty Income Corporation, excels in real estate investments, with a primary focus on stable and growing rental income. Their portfolio includes a variety of properties, primarily commercial space.

Dividend yield: 5.6% - monthly dividend payment

Payout: 76%

Average annual dividend growth over the past five years: 4%

AFFO year-on-year: 9%

P/AFFO: 14

Total debt: $21 billion

Cash: $344 million.

BC
Bill Combs @billcombs Jan 30

Of the REIT sector, these are the only two I have and want. If it was just about attractiveness, I'd go with VICI, but given some stability in fundamentals, etc., I'd go with O. REITs are pretty well represented in my portfolio. I have a larger amount of money in O, but right after that is VICI where I also have little. I'm looking forward to when the Fed starts cutting rates :D

YE
Yorick Ericson @yorickericson Jan 29

I only know these companies superficially, but when I look at $O for example, it has a strong underperformance compared to the sp500, and it certainly doesn't include the dividend tax. Over a 10 year horizon the index has delivered over 100% better appreciation (in my opinion) with less risk.

Any thoughts on why this is the case and why it should possibly change?

AY
Alden Yap @aldenyap Jan 29

That's a very good comparison and a good question to ask about this too. :)

DD
Daniela Duong @danieladuong Jan 29

I own both companies and would not change. And the minute 0 goes back to 50, I'll throw something in there again.