VICI Properties Inc. (VICI): A Bull Case Theory

We came across a bullish thesis on VICI Properties Inc. on X.com by @Snowball_Equity. In this article, we will summarize the bulls’ thesis on VICI. VICI Properties Inc.’s share was trading at $27.81 as of January 13th. VICI’s trailing and forward P/E were 10.60 and 9.65 respectively according to Yahoo Finance.

VICI Properties owns a high quality portfolio of 93 experiential assets, including 54 gaming properties and 39 other experiential venues, anchored by some of the most iconic assets on the Las Vegas Strip, such as Caesars Palace, The Venetian, and MGM Grand.

The company operates a simple and highly durable business model, acquiring premier properties and leasing them back to operators under long term triple net leases that shift operating costs, taxes, and insurance to tenants, resulting in predictable and resilient cash flows. With a weighted average lease term exceeding 40 years, revenue visibility is exceptionally strong. While revenue is concentrated, with roughly 74 percent derived from Caesars and MGM and nearly half tied to the Las Vegas Strip, the lease structure provides meaningful protection, as tenants cannot default on weaker regional assets without jeopardizing flagship properties.

Despite macro concerns around Las Vegas visitation and operator balance sheets, these risks are widely overstated and represent more of a growth headwind than an existential earnings threat, particularly given rising convention traffic at VICI’s marquee properties. Rent escalators further support organic growth, with a significant portion linked to inflation and the remainder offering fixed annual increases.

Management continues to pursue external growth, including Strip acquisitions and potential partnerships with universities for large scale athletic assets, which could diversify the tenant base over time.

Financially, VICI delivers steady AFFO growth, disciplined expense control, and an industry standard leverage profile. Trading below 12x AFFO with a dividend yield around 6.4 percent, the stock reflects depressed sentiment rather than fundamentals, positioning VICI as a compelling long term, set it and forget it REIT opportunity with attractive risk reward as conditions normalize.

Previously we covered a bullish thesis on MGM Resorts International by David in April 2025, which highlighted the company’s asset light transition, aggressive share buybacks, and the resilience of its iconic Las Vegas portfolio. The company’s stock price has appreciated by approximately 31.74% since our coverage began. This is because the thesis played out around MGM’s ongoing digital expansion and strategic investments in its resort portfolio despite macro concerns around Las Vegas demand persisting. @Snowball_Equity shares a similar thesis but emphasizes predictable triple net lease income and rent escalators.

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Disclosure: None.