Summary
- VICI’s 33% share price decline has reset valuation to levels that finally reflect realistic risk—creating a more attractive long-term entry…
Summary
- VICI’s 33% share price decline has reset valuation to levels that finally reflect realistic risk—creating a more attractive long-term entry point.
- Management’s capital discipline and long lease maturities underpin my upgraded rating, as fundamentals remain far stronger than the recent drawdown suggests.
- At today’s price, long-term investors can reasonably expect double-digit total returns, with a potential +30% share price appreciation, should VICI revert toward its historical valuation.
DNY59/E+ via Getty Images
Introduction
VICI Properties (VICI) is an S&P 500 REIT that owns one of the largest portfolios of gaming, hospitality, wellness, entertainment, and leisure destinations. You can look at the portfolio and diversification yourself by going to
This article was written by
1.25K Followers
**Analyst’s Disclosure:**I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in VICI over the next 72 hours. 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.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Quick Insights
The 33% share price decline has priced in the near-term Vegas weakness and tenant specific concerns. This creates a more attractive long-term entry
The primary risk is prolonged softness in Las Vegas visitation or weaker profitability among key tenants, which could weigh on sentiment even without affecting rent payments and debt service metrics.
With the stock trading well below historical norms, investors can reasonably expect double-digit total returns, supported by a potential +30% share price appreciation if VICI simply reverts to its long-term