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.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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