VICI Properties: Dirt Cheap With An Implicit 12% To 14% Total Return

VICI Properties Inc. trades at a compelling valuation, with a wide margin of safety and a 7.6% dividend yield amid industry headwinds. Even under conservative assumptions—0% terminal growth and a 12% discount rate—VICI offers an implied 12% annual total return at current prices. VICI’s portfolio is diversified across gaming and experiential assets, but concentration risk remains with Caesars (38% rent) and MGM (32%). I maintain a Strong Buy rating, as VICI’s long-term contracts, 100% occupancy, and downside protection outweigh near-term uncertainties and sector challenges.

What a moment to write about VICI Properties Inc. (VICI). The Fed raised interest rates recently (3.75% to 4%), and now, we have a 5% risk-free rate (10-Year Treasury (US10Y)).