VICI Properties: Revisiting The Thesis After The Recent Pullback

Luuk Wierenga1.48K FollowersFollow5ShareSavePlay(11min)Comments(4)SummaryVICI Properties remains compelling after a significant price decline, offering attractive valuation and resilient fundamentals, especially with CPI-linked rent escalators.AFFO per share grew 5.1% in 2025 to $2.38, with 2026 guidance softer at $2.42–$2.45, reflecting 1.7%–2.9% growth amid a normalization in Las Vegas trends.VICI’s balance sheet is robust, with net debt/EBITDA at 5x and a weighted average interest rate of 4.46%, mitigating refinancing risks despite rising rates.Caesars, VICI’s largest tenant, remains stable; ongoing lease negotiations and potential acquisition activity support confidence in long-term rent collection and portfolio optimization. DeltaOFF/iStock Editorial via Getty Images Introduction I upgraded my rating on VICI Properties (VICI) back in Dec. last year. The core reason for the rating upgrade was that the share price declined 18.5% in between my articles. ThisThis article was written byLuuk Wierenga1.48K FollowersFollowI'm Luuk Wierenga, an economics teacher from the Netherlands with a strong passion for income investing. My investment journey began during the COVID-19 pandemic, and since then, I've specialized in identifying Real Estate Investment Trusts (REITs) that are temporarily out-of-favor with Mr. Market. As an educator, I use fundamental economic insights to assess the true intrinsic value of a stock. My investment horizon is long-term, and my strategy revolves around contrarian and deep-value opportunities.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.