VICI Properties (VICI Quick QuoteVICI - Free Report) shares are trading cheaply, as reflected in its Value Score of B. In terms of forward 12-month price-to-earnings (P/E), VICI is currently trading at 9.06X, lower than the Zacks REIT Other Market industry average of 14.91X.

In comparison, peers like Gaming and Leisure Properties (GLPI Quick QuoteGLPI - Free Report) and EPR Properties (EPR Quick QuoteEPR - Free Report) trade at slightly higher multiples of 9.18X and 10.10X, respectively. VICI's relatively lower valuation raises the question of whether the stock offers an attractive buying opportunity.

However, a lower valuation does not necessarily ensure potential upside. VICI faces risks from its dependence on major gaming operators and an uncertain economic environment. Still, its long-term lease agreements and efforts to expand its property portfolio could support future growth. Investors should weigh these strengths against the risks before deciding whether the stock is worth buying.

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VICI shares have declined 10.4% in the past month compared with the industry’s fall of 6%, while the S&P 500 composite gained 3.1%. Comparatively, among its peers, GLPI and EPR declined 9% and 9.8%, respectively, during the same period.

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VICI Properties’ estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for 2026 earnings is pegged at $2.47 per share, implying a cent rise over 2025.

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Let’s delve deeper into this to find out whether the stock should be a Buy or not.

VICI’s High-Quality Assets and Long Leases Anchor Stability

VICI Properties has built one of the largest experiential real estate portfolios, comprising 103 properties, including 63 gaming and 40 other experiential assets. Its portfolio spans 26 states, one U.S. territory and one Canadian province. These large, complex properties have high replacement costs, while gaming assets in certain jurisdictions also face significant regulatory barriers to entry. Together, these factors help limit new competition and support VICI's 100% occupancy.

The lease structure adds another layer of stability. VICI’s portfolio is 100% triple-net leased, meaning tenants generally bear property operating costs, taxes, insurance and maintenance. About 88% of rent carries parent guarantees, while 82% has master-lease protection. The weighted-average lease term, including renewal options, is a long 39.4 years. Inflation protection is also improving, with 45% of rent expected to have CPI-linked escalation in 2026 and 88% by 2035.

VICI's Deal Pipeline Supports Long-Term Growth

VICI Properties continues to expand its portfolio through strategic transactions while gradually broadening its tenant relationships, as reflected in its latest Century Mile and Century Downs agreement, announced on Sept. 28, 2026. Subject to closing, Highfield will become VICI’s 17th tenant under a new 20-year triple-net lease, with initial annual base rent of C$10.7 million, four five-year renewal options and annual escalation equal to the greater of 1.25% or Canadian CPI, capped at 2.5%. Importantly, VICI will reduce Century Casinos’ master-lease rent by the same amount, leaving aggregate rent collected unchanged. The transaction will therefore enhance tenant diversification without providing an immediate increase to rental revenues.

Beyond tenant relationships, VICI continues to pursue acquisitions and development opportunities to expand its portfolio and support long-term growth. In the second quarter of 2026, VICI completed the $1.16-billion acquisition of seven Golden Entertainment casino properties, added Clairvest at Northfield Park and acquired Alberta’s Gamehost real estate for C$200.6 million, or about $141 million. In June 2026, VICI announced the acquisition of Carambola Beach Resort for $20.3 million and committed another $55.2 million to its redevelopment in partnership with Club Med, expanding into build-to-suit investing.

Supporting this investment-driven growth strategy, VICI maintains a disciplined capital allocation approach backed by a solid liquidity position. At June-end, VICI had $2.5 billion of liquidity, while total debt was $17.2 billion and net debt to annualized adjusted EBITDA was about 4.9 times, below management’s 5.0-5.5-times target range. Management continues to favor new investments over share repurchases, noting that its loan book was generating yields close to 9.5%, making the deployment of capital into new opportunities more attractive.

VICI’s Risks to Note

Despite ongoing portfolio expansion and efforts to broaden its tenant base, VICI Properties remains significantly dependent on a few major gaming operators. Caesars Entertainment and MGM Resorts contribute 38% and 32%, respectively, of its annualized cash rent, accounting for a combined 70%. This substantial concentration exposes VICI to tenant-specific operational and financial risks, as challenges faced by either operator could affect its rental income stability.

Moreover, weaker consumer spending, lower travel demand and economic uncertainty could pressure gaming operators. Nevertheless, VICI’s long-term leases and solid liquidity support cash-flow stability and long-term growth prospects.

Conclusion

VICI Properties’ long-term leases and strategic expansions support its growth prospects, while favorable revisions in earnings estimates add to the optimism. The stock’s discounted valuation relative to the industry and peers presents an opportunity. However, tenant concentration and economic uncertainties remain concerns. Moreover, VICI’s share-price decline compared with the industry and peers GLPI and EPR appears excessive given its solid fundamentals. For long-term investors, VICI looks more like a buy-the-dip opportunity than a time to exit.

VICI Properties currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.