VICI Properties Stock Up 12.5% Year to Date: Will It Continue to Rise?

VICI Properties VICI shares have rallied 12.5% year to date, outperforming the industry's upside of 1%.

The company is well-poised to benefit from its long-term leases with tenants, a diversified portfolio and a healthy balance sheet. Its steady capital deployments will enhance shareholder value.

Last month, VICI reported second-quarter 2025 adjusted funds from operations (AFFO) per share of 60 cents, in line with the Zacks Consensus Estimate. Moreover, the figure increased 5% from the prior-year quarter.

Results reflected a year-over-year rise in revenues, mainly driven by income from sales-type leases and income from lease financing receivables, loans and securities. However, higher interest expenses in the quarter acted as a dampener. The company raised its AFFO per share outlook for 2025.

Analysts seem bullish about this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 FFO per share has been revised northward by 1.3% to $2.38 over the past month.

Factors Behind VICI Stock Price Rise: Will This Trend Last?

VICI Properties owns one of the largest high-quality portfolios of market-leading gaming, hospitality, wellness, entertainment and leisure destinations. The company's 100% occupancy rate reflects the mission-critical nature of these properties to their tenants, who cannot easily relocate without significant cost and regulatory approval. These factors provide VICI with consistent, reliable income and a dominant position in a lucrative market.

VICI Properties’ portfolio is characterized by long-term leases with established operators. As of June 30, 2025, the company’s properties were 100% leased, with a weighted average lease term, including extension options, of approximately 40.2 years. Moreover, VICI Properties maintains a mutually beneficial relationship with all its tenants, who are leading owners and operators of gaming, leisure and entertainment properties. 79% of the company’s rent comes from publicly traded tenants.  Its long-term triple-net lease agreements with these tenants ensure a consistent revenue stream, accompanied by inherent growth potential.

VICI Properties has diversified its portfolio beyond gaming, which includes investments in other non-gaming experiential assets like Chelsea Piers and Bowlero. This strategic growth reduces risk from gaming-specific volatility while positioning VICI as a leader in the broader experiential real estate market.

VICI Properties focuses on enjoying financial flexibility, and as of June 30, 2025, the company’s liquidity totaled $3 billion. The last quarter’s annualized net leverage ratio was 5.3 as of June 30, 2025. It enjoyed investment-grade credit ratings of BBB- (Stable Outlook) from S&P Global and  Fitch Ratings and Baa3 (Stable Outlook) from Moody’s as of the end of the second quarter of 2025, rendering it favorable access to the debt market.

Key Risks for VICI

Concentration risks and a substantial debt burden remain concerns for VICI Properties. Macroeconomic uncertainties and inflationary pressures are likely to affect operators’ business.

Stocks to Consider

Some better-ranked stocks from the broader REIT sector are Host Hotels & Resorts (HST) and Terreno Realty (TRNO), each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for HST’s 2025 FFO per share is pegged at $2.35, suggesting a year-over-year decrease of 1%.

The consensus estimate for TRNO’s 2025 FFO per share stands at $2.60, indicating an increase of 7.4% year over year.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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