Valued at a market cap of $35.4 billion, VICI Properties Inc. (VICI) is an experiential real estate investment trust based in New York. It owns gaming, hospitality, wellness, entertainment and leisure destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
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. The company’s key strengths lie in its unique focus on experiential real estate and ownership of some of the most iconic gaming and hospitality assets, giving it a dominant position in this niche market. It combines scale, prime locations, and strong tenant partnerships to deliver steady dividend income and long-term growth opportunities.
This experiential REIT is currently trading 3.3% below its 52-week high of $34.29, reached on Sep. 16, 2024. Shares of VICI have gained 1.8% over the past three months, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) marginal return during the same time frame.
Moreover, on a YTD basis, shares of VICI are up 13.5%, outpacing XLRE’s 4.1% rise. In the longer term, while VICI has declined 1.2% over the past 52 weeks, it has still exceeded XLRE's 5.7% downtick over the same time period.
To confirm its bullish trend, VICI has been trading above its 200-day and 50-day moving averages since early June, with slight fluctuations.
On Jul. 30, VICI announced its Q2 results, and its shares surged marginally in the following trading session. Due to an increase in income from sales-type leases, along with a rise in income from lease financing receivables, loans, and securities, the company’s overall revenue improved 4.6% year-over-year to $1 billion, coming in marginally ahead of the consensus estimates. Furthermore, its AFFO per share advanced 5.3% from the year-ago quarter to $0.60, meeting Wall Street expectations. Additionally, VICI raised its fiscal 2025 AFFO per share guidance, now expecting it to be between $2.35 and $2.37, further bolstering investor confidence.
VICI has lagged behind its rival, W. P. Carey Inc. (WPC), which gained 10.4% over the past 52 weeks and 26.1% on a YTD basis.
Given VICI’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 22 analysts covering it, and the mean price target of $36.80 suggests an 11% potential upside from its current price levels.
