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

We came across a bullish thesis on VICI Properties Inc. on The Financial Pen’s Substack. In this article, we will summarize the bulls’ thesis on VICI. VICI Properties Inc.'s share was trading at $33.11 as of August 1^st. VICI’s trailing and forward P/E were 12.69 and 11.78, respectively according to Yahoo Finance.

VICI Properties (VICI) represents a classic mispricing in today’s market, trading around $32 per share despite intrinsic value estimates exceeding $55. Formed in 2017 through Caesars Entertainment’s restructuring, VICI owns an unparalleled portfolio of experiential real estate assets, including Caesars Palace and MGM Grand, under exceptionally long-term triple-net leases averaging over 40 years. This model transfers operational risk to tenants and delivers near-97% EBITDA margins, making its cash flows highly predictable and inflation-protected through CPI-linked escalators. The company generates robust AFFO growth and a 5.5% dividend yield, positioning it as a potential Dividend Aristocrat.

Wall Street misclassifies VICI as a cyclical gaming REIT, overlooking its strategic pivot toward premium experiential infrastructure such as wellness resorts, championship golf destinations, and family entertainment centers. These assets are resistant to digital disruption and cement VICI’s structural moat, reinforced by iconic irreplaceable properties, regulatory barriers, long-term leases, scale advantages, and exclusive rights of first refusal on future developments. Management’s disciplined capital allocation, lean structure, and strong alignment—backed by CPI-linked rents and accretive M&A—further bolster its competitive edge.

Embedded optionality from strategic partnerships and expansion into new gaming markets remains underappreciated, offering asymmetric growth potential. Catalysts such as broader gaming legalization, continued diversification beyond gaming, and institutional recognition of VICI as essential infrastructure could drive multiple expansions. At the current valuation, investors pay for stability while receiving secular growth and hidden growth levers for free. This disconnect creates a compelling risk/reward profile with equity-like upside and bond-like income, making VICI a rare opportunity for long-term investors.

Previously, we covered a bullish thesis on STAG Industrial, Inc. by Steve Wagner in May 2025, which highlighted its strong industrial real estate platform, disciplined capital recycling, and steady FFO growth supported by logistics demand. The company’s stock price has appreciated by approximately 3.92% since our coverage. This is because operational strength drove consistent results. The thesis still stands as industrial fundamentals remain robust. The Financial Pen shares a similar view on real estate but emphasizes VICI’s pivot toward experiential infrastructure and its hidden growth optionality.

VICI Properties Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held VICI at the end of the first quarter which was 48 in the previous quarter. While we acknowledge the potential of VICI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.