Summary

• VICI Properties offers exposure to trophy Las Vegas Strip real estate via long-term, triple-net leases with built-in rent escalators.
• The Fertitta acquisition of Caesars, VICI’s largest tenant, could materially strengthen tenant credit quality and reduce perceived risk concentration.
• At $26.28, VICI trades at 10.7x AFFO with a 6.8% yield, below historical multiples, offering an attractive risk/reward profile.
• Downside appears cushioned by a well-covered dividend and compressed multiple, while upside exists if the Caesars deal closes and VICI rerates.

Start with what you are actually buying

I have owned and recommended net-lease real estate for a long time, and the mistake I see investors make most often is buying the operator when they should

Analyst’s Disclosure: I/we have a beneficial long position in the shares of VICI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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