Latest news with #CPI-linked
Business Recorder
2 days ago
- Business
- Business Recorder
SHC rejects pharma firm's pleas seeking hike in drug prices
KARACHI: The Sindh High Court dismissed two constitutional petitions filed by a leading pharmaceutical company, which requested for the increase of the Maximum Retail Prices (MRP) of certain drugs up to 10 percent instead of 7 percent annually, approved by the DRAP. The verdict, delivered by a division bench comprising Acting Chief Justice Muhammad Junaid Ghaffar and Justice Mohammad Abdur Rahman, had the core of the legal dispute originated from a pricing of three commonly used medicines including Brufen (tablet) 200mg, Brufen Suspension 120ml, and Thyronorm (Tablet) 125 mcg. Abbott sought an annual MPR increase of up to 10 percent for the fiscal year 2023-24. The company's argument hinged on the historical categorization of these medicines as 'lower priced drugs' under Rule 10 of the Drug Pricing Policy, which traditionally entitled them to a CPI-linked increase of up to 10 percent. Abbott asserted that it had submitted the required calculations to DRAP on July 1, 2024, and that the authority's failure to issue a decision within the stipulated 30 days should, under Rule 7(2)(ii) of the policy, result in their self-determined revised prices being deemed approved and officially notified. DRAP, represented by the Assistant Attorney General for the Federation of Pakistan, contested this position. The regulatory body asserted that the MRPs of these specific medicines had, over successive years of CPI-linked adjustments, gradually escalated and now surpassed the maximum thresholds prescribed for 'lower priced drugs' under Rule 10(1) of the policy. Consequently, DRAP had reclassified them as 'other drugs,' thereby capping their permissible annual increase at 7 percent instead of the 10 percent sought by Abbott. This reclassification and DRAP's subsequent decision were upheld by its Appellate Board, compelling Abbott Laboratories to seek judicial intervention through the constitutional petitions, specifically challenging DRAP's order dated March 12, 2025, and previous orders from November 7, 2024, as 'illegal, unlawful, unconstitutional, without jurisdiction, malafide, and of no legal effect.' The High Court, in its detailed judgment, rejected Abbott's argument for 'deemed notification' or 'deemed approval.' The court clarified that rules allow for the deemed issuance of revised MRPs only if the submitted calculations are 'in conformity with' and represent 'correct calculations' under the policy. Since Abbott's claim was predicated on categorizing the medicines as 'lower priced drugs' despite their MRPs having already crossed the officially notified thresholds, the court held that Abbott's calculations were not policy-compliant. Addressing Abbott's contention that the same medicines were recognized as 'lower priced drugs' in the preceding year despite exceeding the threshold, the court stated that even if such a regulatory oversight occurred previously, it could not justify repeating the error. The court underlined the legal maxim that 'two wrongs do not make a right,' rejecting the notion that a past administrative lapse could serve as a binding precedent or justification for current policy violations. The court also drew attention to a crucial procedural lapse by the Ministry of National Health Services, Regulations and Coordination. The judgment noted that under Rule 10(2) of the Drug Pricing Policy, the Ministry is legally obligated to revise the thresholds for lower-priced drugs annually in accordance with CPI changes. This statutory requirement, the court observed, had not been fulfilled, thereby indirectly contributing to pricing, however, because Abbott Laboratories had not directly challenged this specific omission in its petitions, the court refrained from issuing a definitive order on this matter due to jurisdictional limitations. Nonetheless, the court acknowledged that the issue 'warrants attention' and granted Abbott Laboratories the liberty to pursue this concern independently before the Ministry or any other competent legal forum. The court directed that any such representation filed by Abbott in this regard must be decided upon by the respondent within 60 days. The Sindh High Court found no merit in Abbott Laboratories' plea for a 10 percent price increase. It upheld the decisions of DRAP and its Appellate Board as 'legally correct,' given the undisputed fact that as of July 1, 2024, the MRPs of the disputed medicines had indeed exceeded the thresholds specified for lower-priced drugs, thereby disqualifying them from such categorization. Copyright Business Recorder, 2025
Business Wire
5 days ago
- Business
- Business Wire
Medical Properties Trust and Praemia REIM Joint Venture Announces €702.5 Million Refinancing Transaction
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Medical Properties Trust, Inc. (the 'Company' or 'MPT') (NYSE: MPW) and Praemia REIM today announced that their 50/50 joint venture ('the JV') has refinanced its maturing seven-year debt agreement at a 5.1% fixed rate. This €702.5 million non-recourse, 10-year non-amortizing debt is secured by a portfolio of German rehabilitation hospitals operated by MEDIAN, the largest operator of rehabilitation hospitals in Europe. The lending group comprises a consortium of global institutional, insurance and pension investors led by Song Capital, a European real estate investment firm. The majority of the new secured loan is expected to fund repayment of the €655 million secured loan arranged upon the joint venture's 2018 formation. The increased size of the new financing reflects an increase in the underwritten value of the facilities over the past seven years rather than an increase in loan-to-value ratio. Notably, annual cash rent from the JV has increased by nearly €20 million since its formation, approximately equal to the expected increase in market interest expense from the new loan. Edward K. Aldag, Jr., MPT's Chairman, President and Chief Executive Officer, said, 'Given the tremendous market demand for MPT's hospital real estate from sophisticated institutional investors, we continue to benefit from access to low-cost capital. This transaction, along with others recently executed, reinforces the value of $15 billion in hospital real estate around the world, the importance of our CPI-linked rent escalators as a natural hedge against inflation, and our confidence in the balance sheet flexibility available to us moving forward.' 'This transaction demonstrates the long-term appeal of high-quality healthcare infrastructure in Europe. We are proud to co-own a portfolio that combines operational excellence, tenant resilience, and strong societal impact. This refinancing also confirms our ability to deliver sustainable returns for our investors across cycles,' said Ronan Bodere, Managing Director of Praemia REIM Luxembourg. Eastdil Secured and Goodwin Procter LLP acted as financial and legal advisor, respectively, for the JV. About Medical Properties Trust, Inc. Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 393 facilities and approximately 39,000 licensed beds in nine countries and across three continents as of March 31, 2025. MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company's website at About Praemia REIM Praemia REIM is a leading European real estate asset manager with over €36 billion in assets under management and a portfolio of more than 1,600 buildings spanning 11 countries. The firm designs and manages a broad range of real estate investment solutions covering the office, healthcare and education, retail, residential and hospitality sectors, with a strong commitment to long-term performance and ESG integration. Its team of over 450 employees are located across offices in France, Germany, Luxembourg, Italy, Spain, Singapore and the United Kingdom. Further information is available at Follow Praemia REIM on LinkedIn. Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as 'may', 'will', 'would', 'could', 'expect', 'intend', 'plan', 'estimate', 'target', 'anticipate', 'believe', 'objectives', 'outlook', 'guidance' or other similar words, and include statements regarding our strategies, objectives, asset sales and other liquidity transactions (including the use of proceeds thereof), expected re-tenanting of facilities and any related regulatory approvals, and expected outcomes from Prospect's Chapter 11 restructuring process. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that the outcome and terms of the bankruptcy restructuring of Prospect will not be consistent with those anticipated by the Company; (ii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (iii) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (iv) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (v) MPT's ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact its ability to pay down, refinance, restructure or extend its indebtedness as it becomes due, or pursue acquisition and development opportunities; (vi) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (vii) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (viii) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; and (ix) the risks and uncertainties of litigation or other regulatory proceedings. The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned 'Risk Factors' in our Annual Reports on Form 10-K and our Quarterly Reports on Form 10-Q, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.
Business Wire
6 days ago
- Business
- Business Wire
SS-2H ST1 Delivers Record Beetaloo Basin IP30 Flow Rate of 7.2 MMcf/d, In-Line With Average IP30 Rate From Marcellus Dry Gas Area
NEW YORK--(BUSINESS WIRE)-- Tamboran Resources Corporation (NYSE: TBN, ASX: TBN): SS-2H ST1 delivers record Beetaloo Basin IP30 flow rate of 7.2 MMcf/d, in-line with average IP30 rate from Marcellus dry gas area Share Tamboran Resources Corporation Chief Executive Officer, Joel Riddle, said: 'The Shenandoah South 2H sidetrack well has delivered a record average IP30 flow result of 7.2 MMcf/d from the Beetaloo Basin to date. Results show a material step up in flow rate from a horizontal section stimulated approximately three times longer than the SS-1H well. 'The IP30 flow rate over a 5,482-foot horizontal section is another positive data point that demonstrates potential commercial productivity of the shale formation in the Australian East Coast gas market that typically sells at a premium to Henry Hub in the US and under long term CPI-linked contracts. 'Importantly, the results from SS-2H ST1 are in-line with the average of more than 11,000 wells produced for over 12-months in the Marcellus Shale dry gas area, the most prolific shale gas basin in the world. 'At the end of the 30-day period, the well continues to experience steady flow performance, low decline rates and favorable wellhead pressures, which underscore the reliability and scalability of our operations. 'Importantly, Tamboran continues to bring key lessons from the US to accelerate the commercial development of the Beetaloo Basin. We have already delivered an impressive improvement in drilling efficiency and stimulation intensity in the first two wells of the Shenandoah South area. 'Lessons from the completion and flow back of the SS-2H ST1 well will be incorporated into the design of the remaining four wells required to deliver first gas sales in mid-2026, subject to standard regulatory and stakeholder approvals. SS-2H ST1 is another foundation well, that demonstrates the Beetaloo Basin has characteristics similar to wells drilled across the Marcellus dry gas area. We believe, like in the US, with more well results and incorporation of lessons we can improve and deliver this world-scale energy resource.' Shenandoah South 2H ST1 flow results The SS-2H ST1 well in Tamboran B2-operated Exploration Permit (EP) 98 achieved average IP30 flow rates of 7.2 MMcf/d following the 35-stage stimulation program across a 5,483 feet (1,671 metres) lateral section in the Mid Velkerri B Shale. During the 30-day production testing period, the choke was opened from 10/64' to 40/64' at staged intervals. Gas rates declined from 10.4 MMcf/d to 6.6 MMcf/d, with an average IP30 flow rate of 7.2 MMcf/d and cumulative production of 217.2 MMcf over that period. Flowing wellhead pressures were drawn down from 4,565 to 906 psi. Table 1: Breakdown of the SS-2H ST1 IP30 flow result Ongoing Shenandoah South development activity Tamboran plans to commence the 2025 Shenandoah South drilling program in July 2025. The program includes drilling three wells, each with a 10,000-foot horizontal section and completed with up to 60 stimulation stages, subject to joint venture approval. The SS-3H well is planned to be completed and flow tested by the end of 2025, with the remaining three wells drilled in the 2025 campaign to be completed during 1H 2026. Completion of the remaining four wells will incorporate lessons from the SS-1H and SS-2H ST1 wells. The wells are expected to be tied into the SPCF ahead of the commencement of production in mid-2026 and supply gas sales to the Northern Territory Government under a take-or-pay GSA, subject to standard regulatory and stakeholder approvals and favorable weather conditions. The five wells are expected to deliver the required 40 MMcf/d volume under the take-or-pay agreement with the Northern Territory Government. The GSA with Tamboran is a significant contract for the Northern Territory given the high reliance on gas for power generation. Falcon Oil & Gas Australia Limited have elected not to participate in the 2025 Shenandoah South drilling program. As a result, the work program will be equally funded by Tamboran and Daly Waters Energy, LP. Webcast details Managing Director and Chief Executive Officer, Joel Riddle will hold a webcast on 8:00am EDT (New York) (10:00pm AEST, Sydney, Melbourne) on Monday June 16, 2025. Details for the webcast can be found on Tamboran's website at Tamboran net prospective acres across the Beetaloo Basin assets Company Gross Acreage Interest Net Acreage Proposed Northern Pilot Project Area 1,2 20,309 47.50% 9,647 Proposed Southern Pilot Project Area 20,309 38.75% 7,870 Phase 2 Development Area 406,693 58.12% 236,370 Proposed Retention Lease 10 219,030 67.83% 148,568 Remaining ex-EP 76, 98 and 117 acreage 1,487,418 77.50% 1,152,749 EP 136 207,000 100.00% 207,000 EP 161 512,000 25.00% 128,000 Total 2,872,759 1,890,204 May not add due to rounding. 1 Subject to the completion of the SS-2H ST1 and SS-3H wells on the Shenandoah South pad 2. 2 Working interest may change as a result of future drilling spacing units (DSUs) being created based on Falcon's participation. Expand Working Interests – Phase 2 Development Area Company Previous New Tamboran (West) Pty Limited 1 38.75% 58.12% Daly Waters Energy, LP 38.75% 19.38% Falcon Oil and Gas Australia Limited 22.50% 22.50% Total 100.0% 100.0% Expand Working Interests – Proposed RL10 Company Previous New Tamboran (West) Pty Limited 1 38.75% 67.83% Daly Waters Energy, LP 38.75% 9.67% Falcon Oil and Gas Australia Limited 22.5% 22.50% Total 100.0% 100.0% Expand Working Interests – Remaining Tamboran owned Ex-EP 76, 98 and 117 acreage This ASX announcement was approved and authorised for release by Joel Riddle, the Chief Executive Officer of Tamboran Resources Corporation. About Tamboran Resources Corporation Tamboran Resources Corporation ('Tamboran' or the 'Company'), through its subsidiaries, is the largest acreage holder and operator with approximately 1.9 million net prospective acres in the Beetaloo Sub-basin within the Greater McArthur Basin in the Northern Territory of Australia. Tamboran's key assets include a 47.5% operating interest over 20,309 acres in the proposed northern Pilot Area, a 38.75% non-operating interest over 20,309 acres in the proposed southern Pilot Area, a 58.13% operating interest in the proposed Phase 2 development area covering 406,693 acres, a 67.83% operated interest over 219,030 acres in a proposed Retention License 10, a 77.5% operating interest across 1,487,418 acres over ex-EPs 76, 98 and 117, a 100% working interest and operatorship in EP 136 and a 25% non-operated working interest in EP 161, which are all located in the Beetaloo Basin. The Company has also secured ~420 acres (170 hectares) of land at the Middle Arm Sustainable Development Precinct in Darwin, the location of Tamboran's proposed NTLNG project. Pre-FEED activities are being undertaken by Bechtel Corporation. Disclaimer Tamboran makes no representation, assurance or guarantee as to the accuracy or likelihood of fulfilment of any forward-looking statement or any outcomes expressed or implied in any forward-looking statement. The forward-looking statements in this report reflect expectations held at the date of this document. Except as required by applicable law or the ASX Listing Rules, Tamboran disclaims any obligation or undertaking to publicly update any forward-looking statements, or discussion of future financial prospects, whether as a result of new information or of future events. The information contained in this announcement does not take into account the investment objectives, financial situation or particular needs of any recipient and is not financial product advice. Before making an investment decision, recipients of this announcement should consider their own needs and situation and, if necessary, seek independent professional advice. To the maximum extent permitted by law, Tamboran and its officers, employees, agents and advisers give no warranty, representation or guarantee as to the accuracy, completeness or reliability of the information contained in this presentation. Further, none of Tamboran nor its officers, employees, agents or advisers accept, to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this announcement. Note on Forward-Looking Statements This press release contains 'forward-looking' statements related to the Company within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act') and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements reflect the Company's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words 'believe,' 'expect,' 'anticipate,' 'will,' 'could,' 'would,' 'should,' 'may,' 'plan,' 'estimate,' 'intend,' 'predict,' 'potential,' 'continue,' 'participate,' 'progress,' 'conduct' and the negatives of these words and other similar expressions generally identify forward-looking statements. It is possible that the Company's future financial performance may differ from expectations due to a variety of factors, including but not limited to: our early stage of development with no material revenue expected until 2026 and our limited operating history; the substantial additional capital required for our business plan, which we may be unable to raise on acceptable terms; our strategy to deliver natural gas to the Australian East Coast and select Asian markets being contingent upon constructing additional pipeline capacity, which may not be secured; the absence of proved reserves and the risk that our drilling may not yield natural gas in commercial quantities or quality; the speculative nature of drilling activities, which involve significant costs and may not result in discoveries or additions to our future production or reserves; the challenges associated with importing U.S. practices and technology to the Northern Territory, which could affect our operations and growth due to limited local experience; the critical need for timely access to appropriate equipment and infrastructure, which may impact our market access and business plan execution; the operational complexities and inherent risks of drilling, completions, workover, and hydraulic fracturing operations that could adversely affect our business; the volatility of natural gas prices and its potential adverse effect on our financial condition and operations; the risks of construction delays, cost overruns, and negative effects on our financial and operational performance associated with midstream projects; the potential fundamental impact on our business if our assessments of the Beetaloo are materially inaccurate; the concentration of all our assets and operations in the Beetaloo, making us susceptible to region-specific risks; the substantial doubt raised by our recurring operational losses, negative cash flows, and cumulative net losses about our ability to continue as a going concern; complex laws and regulations that could affect our operational costs and feasibility or lead to significant liabilities; community opposition that could result in costly delays and impede our ability to obtain necessary government approvals; exploration and development activities in the Beetaloo that may lead to legal disputes, operational disruptions, and reputational damage due to native title and heritage issues; the requirement to produce natural gas on a Scope 1 net zero basis upon commencement of commercial production, with internal goals for operational net zero, which may increase our production costs; the increased attention to ESG matters and environmental conservation measures that could adversely impact our business operations; risks related to our corporate structure; risks related to our common stock and CDIs; and the other risk factors discussed in the this report and the Company's filings with the Securities and Exchange Commission. It is not possible to foresee or identify all such factors. Any forward-looking statements in this document are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate in the circumstances. Forward-looking statements are not a guarantee of future performance and actual results or developments may differ materially from expectations. While the Company continually reviews trends and uncertainties affecting the Company's results of operations and financial condition, the Company does not assume any obligation to update or supplement any particular forward-looking statements contained in this document. Table 2: Disclosures under ASX Listing Rule 5.30 (Shenandoah South 2H ST1) The name and type of well. Shenandoah South 2H horizontal sidetrack (SS-2H ST1) well. The location of the well and details of the permit or lease in which the well is located. EP 98 of Beetaloo Sub-basin, Northern Territory (future Northern Pilot Area acreage, once checkerboard process and Retention Lease designation is formally completed). The entities working interest in the well. Tamboran holds a 47.5% interest in the well. If the gross pay thickness is reported for an interval of conventional resources, the net pay thickness. Not applicable—this is not a conventional reservoir. The geological rock type of the formation drilled. Organic-rich shale. The depth of the zones tested. Average depth of horizontal 3,017 metres Total Vertical Depth (TVD) (9,899 feet TVD), with 1,671 metres (5,483 ft) of stimulated lateral length. The types of test(s) undertaken and the duration of the test(s). 30-day initial production (IP30) gas flow test. The hydrocarbon phases recovered in the test(s). Dry gas - mole %. Methane – 91.8, Ethane – 2.8, Propane – 0.17, Butane & higher <0.03. Any other recovery, such as, formation water and water, associated with the test(s) and their respective proportions. Fracture stimulation fluid is being recovered during testing. The well is currently producing approx. 160 barrels of water per day with a cumulative 21,689 bbls of water recovered from day 1 of cleanup. The choke size used, the flow rates and, if measured, the volumes of hydrocarbon phases measured. During the 30-day production testing period, the choke was opened from 10/64' to 40/64' at staged intervals. Gas rates declined from 10.4 MMcf/d to 6.6 MMcf/d, with an average IP30 flow rate of 7.2 MMcf/d and cumulative production of 217.2 MMcf over that period. Flowing wellhead pressures were drawn down from 4,565 to 906 psi. If applicable, the number of fracture stimulation stages and the size and nature of fracture stimulation applied. 35 stage fracture stimulation stages and a toe stage covering over 1,671 metres (5,483 feet) at an average of 40 to 50-metre (131 - 164-foot) interval spacing within the Mid Velkerri B Shale. Average proppant concentrations of 2,706 lbs/ft across the 35 main stages with a total of over 14 million pounds of sand placed. Any material volumes of non-hydrocarbon gases, such as carbon dioxide, nitrogen, hydrogen sulphide or sulphur. Reported as Mol %: CO 2, – 3.1, N 2 – 2.0. Any other information that is material to understanding the reported results. The well is planned to be flow tested over a full 90-day period, subject to joint venture approval.
Yahoo
13-06-2025
- Business
- Yahoo
VICI Properties Rises 12.7% Year to Date: Should You Buy or Sell?
VICI Properties Inc. VICI, which specializes in gaming and entertainment properties, has seen its stock gain 12.7% year to date. This decent performance has outpaced the 5.5% rise of the Zacks REIT and Equity Trust - Other industry it belongs to and the 2.8% growth of the S&P 500 composite over the same time frame. In April 2025, VICI came up with its first-quarter 2025 results that reflected continued benefits from its expansion efforts and strategic investments. After the quarter ended, VICI entered into an agreement to provide up to $510 million of development funds through a delayed draw term loan facility for the development of the North Fork Mono Casino & Resort located near Madera, CA. This project will be developed and managed by affiliates of Red Rock Resorts. With VICI outperforming, individuals may rush to buy the stock based on the growth prospects. However, before making any hasty decision, it would be prudent to also consider the current concerns that could significantly affect the company's long-term performance. The idea is to help investors make a more insightful decision. Image Source: Zacks Investment Research Solid dividend payouts remain the biggest attraction for REIT investors, and VICI Properties has remained committed to that, with a compelling 5.5% dividend yield. Since 2018, the company has delivered an impressive 7.4% compounded annualized dividend growth rate, outpacing many triple-net REIT peers like Agree Realty Corporation ADC, Essential Properties Realty Trust, Inc. EPRT and Four Corners Property Trust, Inc. FCPT. VICI is committed to distributing 75% of its adjusted funds from operations (AFFO) to shareholders, ensuring a consistent income stream. This positions it as an appealing option for dividend-focused investors who seek stability alongside long-term growth. Check VICI Properties' Dividend History. What is encouraging is that this payout rests on a solid and reliable footing as VICI Properties has cemented itself as a premier experiential real estate investment trust (REIT) with a high-quality portfolio of gaming and entertainment assets. With iconic properties such as Caesars Palace Las Vegas, MGM Grand, the Venetian Resort Las Vegas and other market-leading gaming and experiential properties across North America, VICI is well-poised for growth amid the resiliency of the American consumer, especially in their demand for experiential activities. VICI owns a diverse portfolio, comprising 54 gaming and 39 experiential assets across the United States and Canada, all secured by long-term triple-net leases with a weighted average lease term of 40.7 years. With a 100% occupancy rate, VICI's properties are essential to its tenants, who encounter substantial regulatory and financial challenges if they were to relocate. This stability translates into reliable rental income, reinforcing the company's ability to sustain consistent dividend payments. Moreover, VICI Properties expects a rent toll of 42% with CPI-linked escalation in 2025, which is further projected to rise to 90% by 2035. This inflation-linked rent increase enables the company to maintain its purchasing power and enhance revenue growth, even in inflationary environments. Additionally, 74% of VICI's rent roll comes from S&P 500 tenants, enhancing income stability and creditworthiness. Since its inception in 2017, VICI has expanded its adjusted EBITDA by 365%, growing beyond gaming properties to include experiential assets such as Chelsea Piers and Lucky Strike Entertainment. This diversification reduces sector-specific risks and enhances revenue stability. Moreover, the company enjoys financial resilience with $3.21 billion in liquidity as of March 31, 2025, giving it ample financial flexibility to navigate market fluctuations. VICI's last quarter annualized net leverage ratio stood at 5.3, within its long-term target range of 5.0-5.5. VICI Properties faces its share of challenges. Despite efforts to diversify, gaming properties continue to be VICI's primary revenue driver. This concentration makes the company vulnerable to industry-specific risks, including regulatory shifts, economic downturns impacting discretionary spending and unfavorable developments within the gaming sector. Any financial distress among its key tenants could potentially strain VICI's cash flows. As a REIT, VICI is highly sensitive to interest rate movements. Elevated rates increase borrowing costs and make its dividend yield less attractive compared to risk-free Treasury yields. The company also carries a substantial debt burden, with its total debt of approximately $17.2 billion as of March 31, 2025. The estimate revision trends reflect analysts' positive sentiments. The Zacks Consensus Estimate for 2025 AFFO per share has increased by a cent over the past two months, while the same for 2026 has also moved north by three cents over the same time frame. Image Source: Zacks Investment Research Find the latest EPS estimates and surprises on Zacks Earnings Calendar. In terms of valuation, VICI Properties stock still looks cheap as it is trading at a forward 12-month price-to-FFO of 13.68X, below the REIT-Other industry average of 15.73X, but slightly higher than its one-year median of 13.60X. It is also trading at a discount to triple-net REIT peers, including ADC, EPRT and FCPT. Image Source: Zacks Investment Research VICI Properties' compelling dividend payout, backed by its high-quality portfolio, inflation-linked rent growth and disciplined expansion strategy makes it an appealing investment. Despite short-term headwinds such as macroeconomic uncertainty, as well as gaming properties concentration, VICI's long-term outlook remains solid. For investors looking to gain exposure to the experiential REITs, the company's financial stability presents a compelling opportunity to invest in the stock. VICI Properties stock is also trading at a discount relative to its industry, and the current valuation presents a buying opportunity. Existing shareholders may choose to stay invested, given the company's strong track record of paying growing dividends and focusing on high-demand property sectors. At present, VICI Properties carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agree Realty Corporation (ADC) : Free Stock Analysis Report Four Corners Property Trust, Inc. (FCPT) : Free Stock Analysis Report VICI Properties Inc. (VICI) : Free Stock Analysis Report Essential Properties Realty Trust, Inc. (EPRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-05-2025
- Business
- Yahoo
IHS Holding Limited (IHS): A Bull Case Theory
We came across a bullish thesis on IHS Holding Limited (IHS) on Deep Value Capital's Substack. In this article, we will summarize the bulls' thesis on IHS. IHS Holding Limited (IHS)'s share was trading at $5.22 as of 28th May. A telecommunications tower reaching high into the sky, connected to a satellite system. IHS Holdings (IHS) is a misunderstood infrastructure powerhouse the market has mispriced as a risky, FX-exposed telecom play concentrated in Nigeria. In reality, IHS operates a high-margin telecom tower business across emerging markets like Nigeria and Brazil, where mobile data usage is surging and 4G/5G penetration is set to rise from 57% to 86% by 2029. Its model is simple and scalable: mobile carriers lease space on IHS towers via long-term, inflation-linked contracts—adding tenants drives near-pure profit, with minimal incremental cost. This recurring, CPI-protected revenue base underpins a robust infrastructure compounding story, with management targeting $1B in run-rate free cash flow (FCF) by 2029. Recent moves validate the strategy: IHS sold a non-core fiber business at 5x its current EBITDA multiple, signaling that the market's current valuation deeply discounts its asset quality. Meanwhile, free cash flow margins are climbing, and the company is trading at a steep discount despite improving fundamentals. Management's guidance for 2025 appears conservative, hinting at a potential beat-and-raise setup. Despite FX volatility and geopolitical noise, the math points to a 6.5x upside from current levels, with the potential for significant re-rating as investors reappraise IHS as a critical digital infrastructure enabler in fast-growing regions. In the face of rising data demand, tower utilization, and CPI-linked escalators, IHS stands to compound cash flows for years, and recent portfolio actions plus management's capital discipline bolster the bullish case. This is a classic case of market misperception creating outsized opportunity for those willing to look beyond headlines. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of their bullish thesis on Atlassian Corporation (TEAM). Since our coverage, the stock is up 2.3%. IHS Holding Limited (IHS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held IHS at the end of the first quarter which was 17 in the previous quarter. While we acknowledge the risk and potential of IHS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than IHS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
