VICI Properties: One Step Further Into Value Investing

VICI Properties stands out as the value investor's choice among Triple Net REITs, offering deep discounts on P/FFO, NAV, and superior dividend yield. Despite VICI's compelling metrics, its YTD total return lags peers, reflecting ongoing sector headwinds and unpopularity tied to Vegas tenant struggles and travel downturns. Short-term volatility in VICI's share price presents informed trading opportunities, as repeated sharp dips have been followed by partial recoveries within the year. I advocate maintaining conviction in VICI's value thesis, continuously monitoring operational metrics, and selectively trading around outsized declines to enhance returns. Looking for a portfolio of ideas like this one? Members of Portfolio Income Solutions get exclusive access to our subscriber-only portfolios. Learn More » Mihajlo Maricic/iStock via Getty Images In 2025, Welltower 's ( WELL ) ascendant stock price made senior housing the hottest sector in real estate. WELL 's nosebleed pricing might have been an incentive for astute analysts to look elsewhere for senior housing gold. Starting last September, foolhardy bargain-hunters might have ignored that the too-levered National Healthcare Properties wasn 't even publicly traded and started acquiring their NASDAQ-traded preferreds at 20%+ discounts to par value. On August 5 th , National Healthcare Properties announced the redemption of all preferred shares at $25.00. The recent activity at National Healthcare Properties ( NHP ) might be exemplary of how months of worry and doubt can culminate in just two days of financial victory before masochistic value investors shift focus to new bargain targets. Today we 'll examine ways one might play one such target, the long-discounted VICI Properties ( VICI ). Value in Triple Nets There is sustained demand for Triple Net REITs because they have historically produced high and rising dividend yields. A value investor might consider that each company 's leases will all perform to contracted language, making the issues fungible. Value might be discerned through a comparison of prices to Net Asset Value, or Funds From Operations (FFO), or dividend yield. Given that, here 's our peer set. 2MCAC The peer set was chosen because each net lease real estate company 's Mid Cap to Large Cap size affords ample liquidity, adding to the fungible consideration. In seeking value through consideration of P/FFO, NAV, or yield, VICI would be the value investor 's choice in January 2026. But look at the returns six months later. 2MCAC At the end of 2Q, with expanded discounts of P/FFO, price to NAV, and superior dividend yield, VICI Properties arguably remains the value investor 's choice. An early January VICI purchase, however, would leave you sitting on a -2 ¼% total return while the others delivered positive double-digit returns, on average. Here is where the value investor has to muster courage and remember that an issue 's unpopularity was what created the eye-popping metrics in the first place. Canadians united in a boycott of travel to the U.S. VICI 's Vegas tenants have struggled in the travel downturn and are being acquired by new operators. Refrigerated storage was way out of favor until it wasn 't; Americold ( COLD ) +26.52% and Lineage, Inc. ( LINE ) +27.13% first half returns. Seller 's remorse is an emotion investors possibly have when they abandon conviction to value metrics. It is rough when prices stay down, but I offer some potential relief for the adventurous. Trading The table above has an additional column that describes volatility in terms of price variance from low to high. VICI 's price decline, of course, expands this measure of volatility, but an examination of day-to-day price movements could be enlightening. Perusing a time & sales screen on my QuoteStream reveals that 4 times this year, VICI 's price dipped 5% or more from 2025 's closing price and quickly rose to shrink the decline to 2% or less (f...