VICI Properties (VICI) offers a high dividend yield, long lease terms with built-in escalators, and exposure to major Las Vegas assets, yet its stock has underperformed broader indices. The article explores whether this lag is due to macro factors like high interest rates compressing REIT multiples or if the stock is a value trap. It concludes that VICI is a strong income play and a core holding for income-oriented REIT investors, despite short-term rate sensitivity.
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VICI Properties: 5.7% Yield, Vegas Growth—But Why the Stock Lags
VICI Properties (VICI) offers a high dividend yield, long lease terms with built-in escalators, and exposure to major Las Vegas assets, yet its stock has underperformed broader indices. The article explores whether this lag is due to macro factors like high interest rates compressing REIT multiples or if the stock is a value trap. It concludes that VICI is a strong income play and a core holding for income-oriented REIT investors, despite short-term rate sensitivity.