New York-based VICI Properties Inc. (VICI) is a real estate investment trust (REIT) that owns high-value experiential real estate, primarily casinos, hospitality, entertainment, and leisure properties. It is valued at a market cap of $29.6 billion.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and VICI fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the REIT - diversified industry. With strong tenant credit profiles, inflation-linked rent escalators, and strategic acquisitions in hospitality and experiential real estate, the company has positioned itself as a dominant landlord in the gaming and leisure space.
This experiential REIT has dipped 18.5% below its 52-week high of $34.03, reached on Mar. 10. Shares of VICI have declined 17.5% over the past three months, considerably underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 2.8% drop during the same time frame.
In the longer term, VICI has fallen 12.4% over the past 52 weeks, lagging behind XLRE’s 6.5% downtick over the same time frame. Moreover, on a YTD basis, shares of VICI are down 5.1%, compared to XLRE’s marginal return.
To confirm its bearish trend, VICI has been trading below its 200-day moving average since early October and has remained below its 50-day moving average since mid-September, with minor fluctuations.
On Oct. 30, VICI delivered impressive Q3 results, and its shares surged 1.6% in the following trading session. The company’s topline grew 4.4% year-over-year to $1 billion; meanwhile, its AFFO per share increased by 5.3% to $0.60. This solid performance supported the company’s eighth consecutive annual dividend increase. VICI also raised its fiscal 2025 AFFO per share guidance to a range of $2.36 to $2.37, reinforcing confidence in its continued growth.
VICI has also considerably lagged behind its rival, EPR Properties (EPR), which gained 14.8% over the past 52 weeks and 16.6% on a YTD basis.
Despite VICI’s recent underperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 23 analysts covering it, and the mean price target of $35.71 suggests a 28.8% premium to its current price levels.
