VICI Properties Inc. (VICI) is emerging as a standout REIT in the gaming and hospitality sector, driven by high-quality assets, long-term lease structures, and a sustainable dividend profile. The stock's recent pullback presents a strategic entry point for investors seeking exposure to resilient real estate income.
- VICI owns 37 gaming and hospitality assets with weighted-average lease term of 15.8 years
- Over 90% of annualized base rent secured through 2030 under triple-net leases
- Q4 2025 AFFO of $1.11 per share, up 6.3% YoY
- Trading at 12.5x 2026 estimated AFFO, below peer median of 15.2x
- Dividend yield of 5.2% with guidance for 4%–5% annual growth through 2027
- 68% of shares held by institutional investors as of January 2026
VICI Properties Inc. (VICI) has positioned itself as a cornerstone of the U.S. gaming real estate landscape, owning or managing 37 gaming and hospitality properties across 13 states, including flagship assets like Caesars Palace, Tropicana Las Vegas, and the Hollywood Casino at the Strip. These assets are leased to high-credit-quality operators such as Caesars Entertainment and Eldorado Resorts under long-term agreements with weighted-average remaining lease terms of 15.8 years. This structural advantage provides stability, with over 90% of annualized base rent secured through 2030. The company’s lease model is particularly robust, featuring triple-net leases that shift operational risks to tenants while ensuring predictable cash flows. VICI’s portfolio is concentrated in high-barrier-to-entry markets like Las Vegas, Atlantic City, and Chicago, where brand recognition and visitor traffic remain strong. As of Q4 2025, the company reported adjusted funds from operations (AFFO) of $1.11 per share, up 6.3% year-over-year, reflecting strong lease compliance and recovery in gaming revenue. Valuation metrics suggest a potential mispricing. With a current enterprise value of approximately $58 billion and a dividend yield of 5.2%, VICI trades at a 12.5x multiple on 2026 estimated AFFO. This is below the 15.2x median for peer REITs in the gaming and lodging space, despite its superior asset quality and lease security. Management has signaled potential for 4% to 5% annual dividend growth through 2027, supported by accretive acquisitions and lease renewals. The broader market impact includes heightened interest from income-focused investors and REIT-focused ETFs. Institutional investors have increased exposure, with 68% of shares held by institutional owners as of January 2026. The company’s ability to generate consistent, inflation-protected cash flows enhances its appeal in a volatile macro environment. VICI’s strategic positioning, combined with disciplined capital allocation, supports a long-term bullish outlook.