Dividend investors often turn to net lease real estate investment trusts for steady rental income without direct exposure to day-to-day property expenses. VICI Properties (VICI Quick QuoteVICI - Free Report) and Realty Income (O Quick QuoteO - Free Report) fit that description. Both own properties leased to operating businesses under long-term agreements that generally shift maintenance, taxes and insurance to tenants. Both also rely on acquisitions, rent increases and disciplined financing to expand cash flow and support regular dividends.

Yet the businesses behind those payments look very different. VICI owns major casino resorts and other leisure destinations, including prominent Las Vegas properties, where long leases and built-in rent increases support predictable payments. Realty Income spreads its exposure across thousands of retail and industrial properties, with additional holdings across Europe. 

VICI offers a more focused bet on experiential real estate, while Realty Income emphasizes diversification and monthly distributions. Their different approaches to tenant risk, growth opportunities and funding deserve attention as investors weigh the two REITs.

The Case for VICI

VICI's biggest advantage is the nature of its properties. Casino resorts are difficult to relocate or replace, and operators depend on their locations, licenses and customer relationships. Its long-term triple-net leases include contractual rent increases, giving VICI income visibility that exceeds Realty Income's shorter average lease term. This structure can support cash flow even when leisure spending fluctuates. 

Expansion is becoming less dependent on adding another large Las Vegas resort. VICI completed its $1.16 billion Golden Entertainment transaction and added Clairvest and Club Med as tenants during the second quarter. The Club Med project in St. Croix extends its reach into Caribbean hospitality, while the September Century Mile and Century Downs agreement is expected to introduce a seventeenth tenant without changing aggregate rent. 

Its financing position provides room to pursue these opportunities. Net debt was around 4.9 times annualized adjusted EBITDA in June compared with Realty Income's 5.4 times. VICI subsequently issued $1.75 billion of unsecured notes to address 2026 maturities, reducing near-term refinancing uncertainty.

The dividend strengthens the investment case. September's 2.2% increase lifted VICI's quarterly payment to 46 cents per share. Second-quarter AFFO per share rose 4.6%, supporting the payout while funding new investments. Longer leases and annual rent escalators add further support for distributions.

Concentration remains a clear risk, since Caesars and MGM represent a large share of rent. Still, VICI's expanding partner network, manageable leverage and income potential make its outlook increasingly appealing for investors comfortable with gaming exposure.

The Case for O

Realty Income offers something VICI cannot match — diversification across a vast tenant base. At the end of June, it held interests in 15,588 properties leased to 1,798 clients spanning 92 industries. Occupancy was 98.8%, and retail businesses providing everyday goods and services accounted for much of its rent. This spread reduces the impact of trouble at any single tenant. 

Its monthly dividend is another advantage for income-focused investors. Realty Income declared its 676th consecutive monthly payment in October at 27.15 cents per share. An established record of increases and investment-grade credit ratings support the company's reputation for dependable distributions, even if its recent dividend growth has been modest. 

Realty Income also has more avenues for investment. Management raised its 2026 investment target to $10 billion after deploying $2.6 billion in the second quarter, including industrial and European opportunities. Its partnership with KKR would bring €528 million of outside capital into a European property venture, while its data center partnership opens another channel for future expansion. 

However, scale can make meaningful per-share growth harder. Same-store rental revenues increased only 1.2% in the second quarter, and management expects just 1.1%-1.3% growth for the year. Acquisitions remain important, with financing costs and the timing of capital raising affecting shareholder returns.

Realty Income's portfolio breadth helps protect rental cash flow, but retail tenant pressures and exposure to interest rates warrant monitoring, particularly as it builds its investment pipeline. Its raised AFFO guidance suggests steady progress rather than rapid acceleration, leaving a balanced investment outlook.

How Do Estimates Compare for VICI Properties & Realty Income?

The Zacks Consensus Estimate for VICI Properties’ 2026 and 2027 sales calls for year-over-year growth of 5.26% and 3.89%, respectively. The consensus estimates for both 2026 and 2027 FFO per share have been revised marginally upward over the past 60 days. The figures suggest a year-over-year increase of 3.78% and 2.02%. 

For VICI Properties:

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Realty Income’s 2026 and 2027 sales implies year-over-year growth of 9.64% and 8.76%, respectively. The consensus mark for 2026 and 2027 FFO per share suggests a year-over-year increase of 3.97% and 5.45%, respectively. Over the past 30 days, estimates for O’s 2026 and 2027 FFO per share have been revised upward.

For Realty Income:

Image Source: Zacks Investment Research

Price Performance and Valuation of VICI & O

Over the past three months, VICI Properties shares have declined 11.4%, while Realty Income shares have plunged 13%. In comparison, the S&P 500 composite has advanced 2.3% in the same period. 

Image Source: Zacks Investment Research

On a forward 12-month price-to-funds-from-operations (P/FFO) basis — a commonly used multiple for valuing REITs — VICI trades around 9.58 times compared with roughly 12.30 times for Realty Income. Both VICI and O are trading below their one-year median of 11.37X and 13.70X, respectively.

VICI's discount partly reflects its heavy exposure to a few gaming operators, while Realty Income earns a premium for its broader tenant base and stronger credit profile. Still, VICI’s annualized dividend yield is higher, approximately 7.66% versus Realty Income's 5.70%, strengthening the relative income case.

Image Source: Zacks Investment Research

Conclusion: VICI Has the Edge

Both REITs have reasons to appeal to income investors, but they serve different priorities. Realty Income offers broad diversification, established monthly payments and access to multiple growth markets. Those strengths make it reasonable for existing shareholders to retain their positions, although slow internal rent growth and financing needs limit the case for adding aggressively. 

VICI carries greater tenant concentration and more exposure to leisure demand, risks investors should not overlook. Even so, its longer leases, expanding partnerships, attractive income stream and lower forward multiple offer a compelling combination. For investors allocating fresh capital between these two, VICI now stands out.

VICI currently carries a Zacks Rank #2 (Buy), while O has a Zacks Rank #3 (Hold). 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 represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.