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1. Company Snapshot

1.a. Company Description

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace.VICI Properties' national, geographically diverse portfolio consists of 29 gaming facilities comprising over 48 million square feet and features approximately 19,200 hotel rooms and more than 200 restaurants, bars and nightclubs.Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos Inc., Hard Rock International, JACK Entertainment and Penn National Gaming, Inc.


VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip.VICI Properties' strategy is to create the nation's highest quality and most productive experiential real estate portfolio.

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1.b. Last Insights on VICI

VICI Properties' recent performance has been driven by several positive factors. The company's high-quality portfolios, long-term leases, and healthy balance sheet position it to ride the growth curve. Its dividend payouts enhance shareholder value, with a current yield of 5.4%. VICI's focus on key, stable, domestic properties makes it "Tariff Proof", and its strong FFO growth is underpinned by a multi-billion-dollar real estate portfolio, high tenant quality, and mission-critical property positioning. The company's unique market position and elite metrics, including a 7% dividend CAGR and 5.1% AFFO per share growth in 2024, drive shareholder returns. Additionally, VICI's CPI-linked triple-net leases with >40-year terms drive predictable, inflation-hedged cash flows across its portfolio, reducing default risk even under macro stress.

1.c. Company Highlights

2. VICI Properties' Strong Financial Performance and Strategic Growth Initiatives

VICI Properties reported a net income margin of approximately 69%, highlighting the efficiency of its triple net model, with G&A expenses standing at $19.3 million for the quarter and $65.1 million for the year. The company's adjusted earnings per share (EPS) came in at $0.57, slightly below analyst estimates of $0.6. Revenue growth is expected to be around 3.1% next year, according to analyst estimates. The company's total debt stands at $17.1 billion, with a net debt to annualized fourth quarter adjusted EBITDA ratio of approximately 5x, at the low end of its target leverage range.

Publication Date: Feb -27

📋 Highlights
  • The Venetian's EBITDAR Growth: Increased from $487 million pre-pandemic to $777 million in 2024.
  • New Partnerships Commitment: $2.1 billion in committed capital with an 8.9% weighted average initial yield in 2025.
  • Fee Simple Transaction: $1.16 billion gaming sector deal in Nevada involving 7 properties.
  • Efficient Triple Net Model: 69% net income margin with $65.1 million annual G&A expenses.
  • 2026 AFFO Guidance: Projected between $2.59 billion and $2.625 billion ($2.42–$2.45/share).

Strategic Partnerships and Investments

The company has formed several new partnerships in 2025, representing $2.1 billion of committed capital at a weighted average initial yield of 8.9%. Notably, VICI announced a $1.16 billion fee simple real estate deal in the gaming sector involving 7 properties located in Nevada, marking a significant expansion of its portfolio. As the company noted, "we're intentional about deeply understanding the partners with whom we are doing business, and we're seeking to continue to diversify our partnerships across best-in-class experiential operators."

Valuation and Growth Prospects

With a P/E Ratio of 11.38 and an EV/EBITDA ratio of 8.51, the market appears to be pricing in moderate growth expectations. The Dividend Yield stands at 5.93%, offering an attractive income stream for investors. As VICI continues to expand its portfolio and diversify its partnerships, its focus on experiential assets and live entertainment venues is expected to drive long-term growth. The company's ROE stands at 10.18%, indicating a decent return on equity.

Outlook and Guidance

VICI initiated AFFO guidance for 2026, expecting between $2.59 billion and $2.625 billion, or between $2.42 and $2.45 per diluted common share. The guidance excludes any transactions that have not closed, interest income from loans without final draw structures, and possible future acquisitions or dispositions. As the company navigates the deal environment, it remains focused on its relationship-based approach to future transactions, seeking to continue diversifying its partnerships across best-in-class experiential operators.

3. NewsRoom

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VICI Properties: Caesars Uncertainty Is A Market Overreaction And Buying Opportunity

Mar -19

Source: seekingalpha.com

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VICI Properties: Revisiting The Thesis After The Recent Pullback

Mar -19

Source: seekingalpha.com

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7 Ideal 'Safer' Dividend Buys In 38 February ReFa/Ro Dogs

Mar -18

Source: seekingalpha.com

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California Public Employees Retirement System Acquires 1,052,393 Shares of VICI Properties Inc. $VICI

Mar -17

Source: defenseworld.net

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Brevan Howard Capital Management LP Grows Position in VICI Properties Inc. $VICI

Mar -17

Source: defenseworld.net

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Bank of America Corp DE Purchases 3,968,349 Shares of VICI Properties Inc. $VICI

Mar -17

Source: defenseworld.net

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Golden Entertainment Investor Alert: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Golden Entertainment, Inc. - GDEN

Mar -13

Source: businesswire.com

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Who Benefits If Fertitta Buys Caesars? 4 Stocks to Watch

Mar -13

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.01%)

6. Segments

Leasing

Expected Growth: 3.0%

VICI Properties Inc.'s leasing growth of 3.0 is driven by increasing demand for casino and entertainment spaces, strategic partnerships with gaming companies, and a strong portfolio of properties. The company's diversified tenant base and long-term lease agreements provide a stable source of revenue, supporting its growth trajectory.

Income from Loans

Expected Growth: 4.2%

The 4.2% growth in income from loans for VICI Properties Inc. is driven by increased loan balances, favorable interest rates, and a growing portfolio of high-quality borrowers. Strong demand for financing in the real estate sector and effective risk management also contribute to this growth.

Other

Expected Growth: 2.5%

VICI Properties' growth is driven by its diversified portfolio, strong cash flows from gaming and hospitality assets, and strategic acquisitions. The company's partnership with Caesars Entertainment and expansion into new markets also contribute to its 2.5% growth. Additionally, its tax-efficient structure and low debt levels provide a solid foundation for future growth.

Golf

Expected Growth: 2.0%

Golf segment growth driven by increasing demand for experiential leisure activities, supported by VICI Properties' strategic partnerships, investments in amenities, and favorable trends in the golf industry, including rising participation rates and growing popularity among younger demographics.

7. Detailed Products

Real Estate Investment Trust (REIT) Services

VICI Properties Inc. operates as a real estate investment trust (REIT) that specializes in the ownership and financing of gaming and leisure properties.

Property Leasing

VICI Properties Inc. leases its properties to gaming and leisure operators, providing them with access to prime locations for their businesses.

Mortgage and Financing Services

VICI Properties Inc. provides mortgage and financing services to gaming and leisure operators, allowing them to fund their operations and expansions.

Property Management

VICI Properties Inc. manages its properties, ensuring they are well-maintained and meet the needs of its tenants and customers.

8. VICI Properties Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

VICI Properties Inc. operates in the real estate investment trust (REIT) industry, specifically focusing on casinos and entertainment properties. The threat of substitutes in this industry is relatively low because the unique experiences offered by casinos and entertainment properties, such as those owned by VICI, are difficult to replicate with substitute services or products. Customers seeking entertainment, gaming, and lodging experiences tend to prioritize these specific types of venues over other leisure activities.

Bargaining Power Of Customers

The bargaining power of customers in the casino and entertainment industry is moderate. While individual customers have limited negotiating power, large corporate or group bookings can exert more influence. Additionally, with the rise of online reviews and social media, customers have more power to affect a property's reputation. However, the loyalty programs and unique experiences offered by VICI Properties Inc. can mitigate this power to some extent.

Bargaining Power Of Suppliers

The bargaining power of suppliers for VICI Properties Inc. is relatively low. As a real estate investment trust focusing on casinos and entertainment properties, VICI deals with a variety of suppliers, from construction and renovation contractors to service providers. The company likely has significant negotiating power due to the scale of its operations and the availability of suppliers in the market. This allows VICI to manage its supply chain effectively and maintain control over costs.

Threat Of New Entrants

The threat of new entrants in the REIT industry, specifically in the casino and entertainment segment, is high. While there are significant barriers to entry such as high initial investment requirements and regulatory hurdles, the attractiveness of the industry and the reputation of existing players like VICI Properties Inc. can lure new entrants. The threat level is heightened by the fact that new entrants could potentially offer innovative business models or technologies that disrupt traditional operations.

Intensity Of Rivalry

The intensity of rivalry within the casino and entertainment industry, and specifically among REITs like VICI Properties Inc., is high. The industry is characterized by a high number of players competing for market share, and VICI faces competition from other casino and entertainment property owners. The competition is not only in terms of gaming and entertainment offerings but also in attracting visitors and providing unique experiences, leading to aggressive marketing strategies and potentially high operational costs.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 39.94%
Debt Cost 4.70%
Equity Weight 60.06%
Equity Cost 8.16%
WACC 6.78%
Leverage 66.51%

11. Quality Control: VICI Properties Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
VICI Properties

A-Score: 7.4/10

Value: 5.1

Growth: 7.7

Quality: 7.2

Yield: 10.0

Momentum: 4.5

Volatility: 10.0

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Broadstone Net Lease

A-Score: 6.9/10

Value: 4.1

Growth: 3.8

Quality: 6.6

Yield: 10.0

Momentum: 7.0

Volatility: 10.0

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Essential Properties Realty Trust

A-Score: 6.6/10

Value: 3.0

Growth: 6.8

Quality: 7.0

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

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CTO Realty Growth

A-Score: 6.3/10

Value: 5.9

Growth: 5.2

Quality: 3.6

Yield: 10.0

Momentum: 3.5

Volatility: 9.3

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One Liberty Properties

A-Score: 6.2/10

Value: 5.3

Growth: 4.1

Quality: 6.5

Yield: 10.0

Momentum: 2.0

Volatility: 9.3

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American Assets Trust

A-Score: 5.7/10

Value: 5.4

Growth: 4.3

Quality: 4.7

Yield: 10.0

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.83$

Current Price

26.84$

Potential

-0.00%

Expected Cash-Flows