VICI Properties Lowered by Scotiabank on Caesars Lease Uncertainty

VICI Properties Inc. (NYSE:VICI) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

On February 2, Scotiabank downgraded VICI Properties Inc. (NYSE:VICI) to Sector Perform from Outperform and cut its price target to $30 from $36. The firm pointed to the ongoing uncertainty tied to the Caesars Entertainment Regional Master Lease, along with signs that external growth may be becoming more limited. While Scotiabank believes management can eventually land on a workable solution, the lack of near-term clarity is likely to weigh on the stock’s ability to gain momentum.

VICI is still a relatively young REIT, having been created in 2017 as a spinoff from Caesars during its Chapter 11 restructuring. Since then, it has grown quickly, building out a large portfolio of casino real estate through sale-leaseback deals, merging with another major gaming REIT, and gradually expanding into other experiential assets. Today, the portfolio includes several well-known casino properties alongside newer experiential investments, such as bowling and entertainment venues.

The company leases its properties back to operators under triple-net agreements, with about half of the rent tied to inflation. That structure supports highly stable cash flow and provides built-in rent growth over time.

From a financial standpoint, VICI remains on solid footing. Its dividend payout ratio is around 75%, and it maintains an investment-grade balance sheet with leverage of roughly 5.0x. That gives the REIT room to keep investing. In addition to acquisitions, the company also provides capital to partners for property upgrades and development projects, creating another source of steady income.

VICI Properties Inc. (NYSE:VICI) has also been consistent on the dividend front. It has raised its dividend every year since going public, most recently delivering its eighth consecutive annual increase in late 2025.

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.

READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and 13 Best Long Term Low Risk Stocks to Buy Now

Disclosure: None.