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Is it Wise to Retain VICI Properties Stock in Your Portfolio Now?
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Key Takeaways
VICI owns 100 gaming and experiential properties with 100% occupancy and a 39.7-year average lease term.
CPI-linked rent hikes, triple-net leases and a strong tenant base support growth and diversification.
MGM and Caesars generate nearly three-fourths of lease revenue, while Las Vegas contributes about 49%.
VICI Properties (VICI - Free Report) owns a high-quality portfolio of experiential assets backed by long-term triple-net leases that generate stable rental income. Rent escalators and a growing dividend support shareholder returns. Strong liquidity and an investment-grade balance sheet provide financial flexibility.
However, tenant and Las Vegas concentration, exposure to consumer spending trends, and earnings volatility from credit-related charges and development financings remain concerns.
Analysts seem bullish on this experiential REIT, with the Zacks Consensus Estimate for its 2026 funds from operations (FFO) per share being raised by a cent over the past two months to $2.46. In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 1.1% against the industry's growth of 11.7%.
Image Source: Zacks Investment Research
What Aids VICI?
VICI Properties benefits from a large portfolio of high-quality experiential assets spread across 26 U.S. states and one Canadian province. Following the Golden Entertainment transaction completed in April 2026, the company owned 100 gaming and experiential properties with 100% occupancy. These assets are difficult and costly to replicate, while strict gaming regulations create high barriers to relocation. This has helped VICI maintain strong tenant retention, a 100% rent collection record and a 375% increase in adjusted EBITDA since its formation in 2017.
Another major strength is the company's long-term lease structure. As of May 2026, VICI's portfolio had a weighted average lease term of nearly 39.7 years, including renewal options, providing visibility into future cash flows. Roughly 45% of the rent roll is linked to CPI-based increases in 2026, supporting steady revenue growth and helping offset inflationary pressures.
VICI also benefits from a strong tenant base and a transparent operating model. The company's triple-net leases require tenants to bear most property-level operating expenses, reducing cash flow volatility. Around 77% of rental income comes from publicly traded tenants, giving investors greater visibility into tenant performance and financial health.
The company is also supported by a healthy balance sheet and shareholder-friendly capital allocation. As of March 31, 2026, VICI had roughly $17.1 billion of debt, a net leverage of about 5.0 times adjusted EBITDA and approximately $3.1 billion of available liquidity. Investment-grade credit ratings provide access to low-cost capital. Meanwhile, dividend growth remains a key attraction, with the dividend increasing 4% in 2025 and supported by a policy of returning roughly 75% of AFFO to shareholders, helping deliver a reliable and growing income stream.
What’s Hurting VICI?
VICI Properties remains heavily tied to the gaming industry, particularly the Las Vegas market. In the first quarter of 2026, assets on the Las Vegas Strip accounted for nearly 49% of total lease revenues. Any prolonged slowdown in travel or gaming demand could eventually weaken tenant performance and reduce growth opportunities.
Another concern is tenant concentration. During the first quarter of 2026, MGM contributed approximately 38% of lease revenues, while Caesars accounted for about 36%. Although VICI has gradually broadened its tenant base, any deterioration in the financial condition, operating performance or strategic priorities of either company could have a meaningful impact on rental growth prospects and investor confidence.
The company also operates with a sizable debt burden and remains exposed to broader economic pressures. Gaming and hospitality spending typically weakens when consumer confidence declines, inflation remains elevated or economic growth slows. Such conditions can pressure tenant profitability and limit their willingness to invest in properties. In addition, VICI carried significant debt of roughly $17.1 billion as of March 31, 2026, resulting in higher interest expenses.
The Zacks Consensus Estimate for SHO’s 2026 FFO per share has moved up 3.4% to 91 cents over the past two months.
The consensus estimate for APLE’s 2026 FFO per share has moved northward 1.9% to $1.58 over the past month.
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.
View the Zacks #1 Rank List
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Is it Wise to Retain VICI Properties Stock in Your Portfolio Now?
Key Takeaways
VICI Properties (VICI - Free Report) owns a high-quality portfolio of experiential assets backed by long-term triple-net leases that generate stable rental income. Rent escalators and a growing dividend support shareholder returns. Strong liquidity and an investment-grade balance sheet provide financial flexibility.
However, tenant and Las Vegas concentration, exposure to consumer spending trends, and earnings volatility from credit-related charges and development financings remain concerns.
Analysts seem bullish on this experiential REIT, with the Zacks Consensus Estimate for its 2026 funds from operations (FFO) per share being raised by a cent over the past two months to $2.46. In the past three months, shares of this Zacks Rank #3 (Hold) company have lost 1.1% against the industry's growth of 11.7%.
Image Source: Zacks Investment Research
What Aids VICI?
VICI Properties benefits from a large portfolio of high-quality experiential assets spread across 26 U.S. states and one Canadian province. Following the Golden Entertainment transaction completed in April 2026, the company owned 100 gaming and experiential properties with 100% occupancy. These assets are difficult and costly to replicate, while strict gaming regulations create high barriers to relocation. This has helped VICI maintain strong tenant retention, a 100% rent collection record and a 375% increase in adjusted EBITDA since its formation in 2017.
Another major strength is the company's long-term lease structure. As of May 2026, VICI's portfolio had a weighted average lease term of nearly 39.7 years, including renewal options, providing visibility into future cash flows. Roughly 45% of the rent roll is linked to CPI-based increases in 2026, supporting steady revenue growth and helping offset inflationary pressures.
VICI also benefits from a strong tenant base and a transparent operating model. The company's triple-net leases require tenants to bear most property-level operating expenses, reducing cash flow volatility. Around 77% of rental income comes from publicly traded tenants, giving investors greater visibility into tenant performance and financial health.
The company is also supported by a healthy balance sheet and shareholder-friendly capital allocation. As of March 31, 2026, VICI had roughly $17.1 billion of debt, a net leverage of about 5.0 times adjusted EBITDA and approximately $3.1 billion of available liquidity. Investment-grade credit ratings provide access to low-cost capital. Meanwhile, dividend growth remains a key attraction, with the dividend increasing 4% in 2025 and supported by a policy of returning roughly 75% of AFFO to shareholders, helping deliver a reliable and growing income stream.
What’s Hurting VICI?
VICI Properties remains heavily tied to the gaming industry, particularly the Las Vegas market. In the first quarter of 2026, assets on the Las Vegas Strip accounted for nearly 49% of total lease revenues. Any prolonged slowdown in travel or gaming demand could eventually weaken tenant performance and reduce growth opportunities.
Another concern is tenant concentration. During the first quarter of 2026, MGM contributed approximately 38% of lease revenues, while Caesars accounted for about 36%. Although VICI has gradually broadened its tenant base, any deterioration in the financial condition, operating performance or strategic priorities of either company could have a meaningful impact on rental growth prospects and investor confidence.
The company also operates with a sizable debt burden and remains exposed to broader economic pressures. Gaming and hospitality spending typically weakens when consumer confidence declines, inflation remains elevated or economic growth slows. Such conditions can pressure tenant profitability and limit their willingness to invest in properties. In addition, VICI carried significant debt of roughly $17.1 billion as of March 31, 2026, resulting in higher interest expenses.
Stock to Consider
Some better-ranked stocks from the broader REIT sector are Sunstone Hotel Investors (SHO - Free Report) and Apple Hospitality REIT (APLE - Free Report) . SHO sports a Zacks Rank #1 (Strong Buy), while APLE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SHO’s 2026 FFO per share has moved up 3.4% to 91 cents over the past two months.
The consensus estimate for APLE’s 2026 FFO per share has moved northward 1.9% to $1.58 over the past month.
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.