Been looking at REITs lately and VICI's numbers caught me off guard a bit.
61.7% free cash flow margin. Every quarter for the past 5 quarters they're pulling between $577M and $643M like it's nothing. S&P 500 median is 14.1% btw.
But then the 17.1B in debt with only $524M cash. That would takeabout 7 and a half years of cash generation to pay it off at their current rate.
Normally it would be a red flag. But VICI is different they own the real estate for MGM Grand, Caesars and a bunch of others on long term triple net leases. Tenants cover taxes insurance maintenance, all of it. So essentially the cash flow is predictable.
Genuinely just wondering if the 17B in debt matter less when the cash coming in is that stable/consistent? Or is 17 billion just to much no matter how you look at it?