- VICI emphasizes the importance of dividends in creating shareholder value, citing a recent BofA strategist note that suggests dividends' contribution to total return could increase as demographics age and inflation risks persist.
- Management highlights that dividends, combined with earnings growth and new store growth, form the core of VICI's total return strategy.
- VICI's approach aims to support earnings growth and dividend sustainability through disciplined capital deployment and cost management, with a focus on internal funding and minimal reliance on external markets.
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- AIG announced a $1 billion sale of Corebridge Financial shares, reducing ownership to approximately 15%, and expects to repurchase $5-$6 billion of shares in 2025.
- The company increased quarterly dividends by 12.5% to $0.45 per share, marking three consecutive years of double-digit growth.
- Strong capital ratios and recent debt issuance, including $1.25 billion in May, support financial flexibility and a low debt-to-capital ratio of 17.9%.
- Highwoods is actively rotating out of slower growth, CapEx-intensive properties into higher-growth, capital-efficient assets.
- The company aims to unlock $25 million of annual NOI upside from core assets, with 50% already signed and prospects for an additional 20%.
- Focus on improving portfolio quality to drive organic growth in earnings and cash flows.
- Sale of Fairmont Dallas for $111 million, generating an unlevered IRR of 11.3% over 14 years, deemed a superior capital decision.
- Dispositions are considered selectively, with no major plans for aggressive acquisitions due to current valuation levels.
- Focus remains on optimizing existing assets, with potential land monetization and minor upgrades rather than large-scale renovations.
- A $50 million share repurchase program was approved, with 3.6 million shares bought at an average of $4.30 per share.
- Repurchases are opportunistic, funded partly by proceeds from asset sales and aimed at reducing share count by about 3%.
- The buybacks are accretive, with an implied dividend yield of 7.4%, above the company's borrowing costs.
- Asset sales of non-core hotels are expected to generate proceeds that exceed buyback funding, aiding deleveraging.
- The company emphasizes balancing capital return with investment in the portfolio and maintaining liquidity.
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