REIT News: Dear VICI stock investors, mark your calendars for June 8

Source: T. Schneider / Shutterstock

Investors looking for a silver lining in this market need only take a look at Properties of Vici (NYSE:VICI). Today, VICI stock rose about 4% on news that the real estate investment trust (REIT) will be added to the S&P500.

Like any index addition, this is a big break for the casino REIT. However, entry into the S&P 500 – which only holds the top 500 companies in the United States – is a very big deal.

This inclusion of Vici and two other companies is part of the index rebalancing period. For Vici, the upcoming addition will take place on June 8.

Now investors seem keen to get in early. Index fund managers will be forced to buy VICI shares, providing a short-term catalyst for the company. Broadening the investor base and institutional exposure can also benefit retail investors.

Let’s dive deeper into what the index announcement means for investors.

What to do with the addition of VICI stocks from the S&P 500

Notably, Vici is one of two publicly traded REITs that could have been included in the index, the other being a rival Games and leisure properties (NASDAQ:GLPI). Keurig Dr Chilli (NASDAQ:KDP) and ON Semiconductor (NASDAQ:ON) will join the index alongside Vici, however.

A range of other Las Vegas market-focused gaming companies are listed in the S&P 500. However, Vici’s growth – driven primarily by recent acquisitions – has thrust VICI stock onto the radar of index managers. . Notably, the company recently acquired the Venetian and MGM Growth properties. This gives him a stronger property portfolio in Las Vegas.

With the economic reopening continuing to drive more traffic to Vegas, investors looking for exposure to this trade now have more options on the S&P 500. Of course, recession worries are the wrench that people are trying to consider right now. Still, this inclusion is certainly a compelling catalyst to watch.

As of the date of publication, Chris MacDonald did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.

Comments are closed.