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

 We came across a bullish thesis on VICI Properties Inc. on Pacific Northwest Edge’s Substack by David. In this article, we will summarize the bulls’ thesis on VICI. VICI Properties Inc.'s share was trading at $31.43 as of September 22nd. VICI’s trailing and forward P/E were 12.04 and 10.87 respectively according to Yahoo Finance.

VICI Properties (VICI) represents a compelling example of a REIT that combines the benefits of property ownership with minimal operational risk, appealing to investors seeking stability and predictable income. VICI is an equity REIT focused on triple net (NNN) leases of gaming, resort, and entertainment properties, where tenants bear all property-related expenses, leaving VICI to collect rent without operational burdens. The company owns a substantial portfolio across the Las Vegas Strip and beyond, with 31 MGM and Caesars properties accounting for 74% of its revenue.

This structure provides resilience: declines in tourist traffic impact casino operators, not VICI, and rent escalation clauses tied to inflation further secure revenue growth. While REITs often dilute shareholders through stock issuance, VICI has demonstrated that its capital raises have been accretive, with increases in revenue and net income outpacing share growth, benefiting both share price and dividends.

The REIT’s focus on NNN leases in prime entertainment real estate offers a low-volatility investment alternative compared to direct casino ownership, which is subject to operational and market swings. For long-term investors, VICI delivers a predictable cash flow yield, low operational risk, and the potential for incremental growth through accretive equity issuances. The author’s personal investment transition from MGM to VICI reflects a strategic rotation from higher-volatility assets to a more resilient REIT, maintaining exposure to the Las Vegas gaming and leisure sector while reducing risk.

Overall, VICI illustrates the advantages of a well-structured REIT, offering investors landlord-like benefits without management headaches, providing stable returns, and aligning well with a cautious, disciplined investment approach amid concerns of market overheating.

Previously we covered a bullish thesis on STAG Industrial, Inc. (STAG) by Steve Wagner in May 2025, which highlighted the company’s strong first-quarter performance, disciplined capital allocation, and robust portfolio fundamentals. The company's stock price has appreciated approximately by 5.43% since our coverage. The thesis still stands as STAG’s conservative balance sheet supports reliable income. David shares a similar bullish view on VICI Properties but emphasizes triple net leases and minimal operational risk.

VICI Properties Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held VICI at the end of the second quarter which was 41 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.