Mizuho Downgrades VICI to Neutral Amid Tenant Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 11 2026
0mins
Source: seekingalpha
VICI Properties Inc. shares fell 3.00% as it hit a 20-day low, reflecting investor concerns.
Mizuho Securities downgraded VICI's rating from Outperform to Neutral due to significant concerns regarding its largest tenant, Caesars, which constitutes 39% of its tenant portfolio. The downgrade was influenced by slowing acquisition volume and a lack of growth catalysts, leading to a 2.18% drop in share price to $28.67. Analysts noted that VICI is unlikely to pursue additional sale-leaseback opportunities, further limiting growth potential.
The downgrade highlights the challenges VICI faces in maintaining its growth trajectory, particularly with its reliance on Caesars and the current market conditions. Investors may need to reassess their positions in light of this cautious outlook.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy VICI?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on VICI
Wall Street analysts forecast VICI stock price to rise
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 26.700
Low
30.00
Averages
33.70
High
38.00
Current: 26.700
Low
30.00
Averages
33.70
High
38.00
About VICI
VICI Properties Inc. is a real estate investment trust (REIT). The Company is engaged in the business of owning and acquiring gaming, hospitality, wellness, entertainment and leisure destinations, subject to long-term triple net leases. The Company own 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas (the Venetian Resort). The portfolio comprises over 127 million square feet and features approximately 60,300 hotel rooms and over 500 restaurants, bars, nightclubs and sportsbooks. Its properties are occupied by gaming, leisure and hospitality operators under long-term, triple-net lease agreements. The Company also owns four championship golf courses and approximately 33 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunities in Low-Priced High-Yield Stocks
- Sanofi Stock Performance: Sanofi's stock has declined by 12% this year, recently hitting a new 52-week low of $41, despite a nearly 14% year-over-year revenue increase to €10.5 billion in Q1, particularly driven by a 31% rise in Dupixent sales, indicating strong market demand but ongoing concerns about long-term growth strategy.
- AT&T Competitive Pressure: AT&T's shares are down 17% this year, currently priced at $20.74, and while its business remains stable and generally reliable for modest growth, the expansion of SpaceX's Starlink service poses a potential threat to its market share, although the market's reaction may be overblown.
- Vici Properties Investment Value: Vici Properties, a REIT focused on casino and entertainment properties, has seen a 5% decline in stock price, now at $26.55, offering a high yield of 6.7%; despite its low volatility, it provides investors with stable dividend income.
- Financial Metrics Analysis: Vici's most recent quarter reported funds from operations (FFO) per share at $0.82, up from $0.51 a year ago, indicating strong cash flow and solid dividend coverage, with the stock trading at just nine times its earnings, appealing to income-seeking investors.
See More
Analysis of Investment Opportunities in High-Yield Stocks
- Sanofi Stock Performance: Despite a 12% drop this year and hitting a new 52-week low, Sanofi's Q1 revenue rose nearly 14% to €10.5 billion, indicating stability and potential growth in the pharmaceutical market.
- AT&T Investment Outlook: AT&T shares have fallen 17% this year, yet with a low P/E ratio of 7 and a dividend yield of 5.3%, it demonstrates stable cash flow and attractiveness despite increasing competition.
- Vici Properties Value: As a REIT focused on casino and entertainment properties, Vici's stock is down 5% this year but offers a high dividend yield of 6.7%, with FFO per share increasing from $0.51 to $0.82, indicating strong cash flow coverage.
- Investment Strategy Recommendation: In the current market, undervalued high-yield stocks like Sanofi, AT&T, and Vici Properties present attractive investment opportunities, particularly for investors seeking stable returns through dividend income.
See More
Comparison of CDW and VICI Stock Performance
- Stock Performance Comparison: CDW is currently trading up approximately 1.4%, while VICI is up about 1.6%, indicating relative stability and slight growth for both companies in the market.
- Market Dynamics Analysis: During Friday's trading session, both CDW and VICI showed upward trends, reflecting investor confidence in these companies, despite the modest gains.
- Investor Sentiment: Although the increases are limited, the performance of CDW and VICI may attract investors seeking stable returns, suggesting a positive outlook on the fundamentals of both companies.
- Industry Impact: The stock price movements of CDW and VICI could influence investor decisions in related industries, especially in the current economic environment where investors favor companies with stable growth.
See More
Inflation Drives Performance of REITs
- Inflation Surge: The closure of the Strait of Hormuz has disrupted global trade, causing the Consumer Price Index (CPI) to rise by 4.2% over the past 12 months, marking the highest level in three years, with energy costs contributing a 23.5% increase.
- Gladstone Land's Advantage: Gladstone Land focuses on farmland investments, owning 99,000 acres leased to high-quality tenant farmers under long-term agreements that include annual rent escalators and participation rent clauses, positioning it to benefit from inflationary pressures.
- Vici Properties' Growth: Vici Properties invests in experiential real estate, owning 101 properties with 45% of its rent linked to CPI, expected to rise to 87% by 2035, providing stable cash flow to support its growing dividend.
- W.P. Carey's Stability: W.P. Carey owns over 1,700 properties, with 49% of its rent from CPI-linked leases, achieving same-store rental growth rates of 2.3% to 4.3% in recent years, ensuring a dividend yield exceeding 5%, showcasing strong financial resilience.
See More
Inflation Drives Rent Growth for REITs
- Gladstone Land's Investment Edge: Gladstone Land focuses on farmland for fresh produce, owning 144 farms across 99,000 acres, with long-term leases featuring annual rent escalators, positioning it to benefit from inflation and earn higher participation rents.
- Vici Properties' Rent Protection: Vici Properties has 45% of its rent linked to the Consumer Price Index (CPI), expected to rise to 87% by 2035, providing stable cash flow that supports its dividend yield of over 6.5%.
- W.P. Carey's Rent Growth: W.P. Carey derives 49% of its rent from CPI-linked leases, achieving same-store rental growth rates between 2.3% and 4.3% in recent years, ensuring a dividend yield exceeding 5% while continuing to raise payouts after exiting the office sector.
- REITs Investment Opportunities: With rising inflation, REITs like Gladstone Land, Vici Properties, and W.P. Carey are well-positioned for investment due to their rent growth mechanisms, making them attractive for investors seeking returns in the current economic climate.
See More
Quality Dividend Stocks for Long-Term Holding
- Real Estate Investment Trust: Realty Income has been a favorite since 2014, owning approximately 15,700 properties primarily leased to recession-resistant retailers, with long-term triple-net leases ensuring stable cash flow and a monthly dividend yield of 5.3%.
- Stable Dividend Growth: Realty Income has increased its dividend for over 100 consecutive quarters, achieving an annualized total return of 13.6% since its 1994 listing, demonstrating strong market performance and low volatility.
- Casino Property Investment: Vici Properties focuses on casino properties, and despite recent struggles in Las Vegas tourism, its 6.8% dividend yield and strong asset portfolio, including Caesars Palace and MGM Grand, provide significant long-term growth potential.
- Financial Flexibility: Vici boasts a solid balance sheet and credit rating, allowing it to enhance shareholder value when attractive acquisition targets arise, currently trading at 10.8 times expected 2026 funds from operations, indicating its rare value in a high-priced market.
See More
Investment Opportunities in Low-Priced High-Yield Stocks
- Sanofi Stock Performance: Sanofi's stock has declined by 12% this year, recently hitting a new 52-week low of $41, despite a nearly 14% year-over-year revenue increase to €10.5 billion in Q1, particularly driven by a 31% rise in Dupixent sales, indicating strong market demand but ongoing concerns about long-term growth strategy.
- AT&T Competitive Pressure: AT&T's shares are down 17% this year, currently priced at $20.74, and while its business remains stable and generally reliable for modest growth, the expansion of SpaceX's Starlink service poses a potential threat to its market share, although the market's reaction may be overblown.
- Vici Properties Investment Value: Vici Properties, a REIT focused on casino and entertainment properties, has seen a 5% decline in stock price, now at $26.55, offering a high yield of 6.7%; despite its low volatility, it provides investors with stable dividend income.
- Financial Metrics Analysis: Vici's most recent quarter reported funds from operations (FFO) per share at $0.82, up from $0.51 a year ago, indicating strong cash flow and solid dividend coverage, with the stock trading at just nine times its earnings, appealing to income-seeking investors.
See More
Analysis of Investment Opportunities in High-Yield Stocks
- Sanofi Stock Performance: Despite a 12% drop this year and hitting a new 52-week low, Sanofi's Q1 revenue rose nearly 14% to €10.5 billion, indicating stability and potential growth in the pharmaceutical market.
- AT&T Investment Outlook: AT&T shares have fallen 17% this year, yet with a low P/E ratio of 7 and a dividend yield of 5.3%, it demonstrates stable cash flow and attractiveness despite increasing competition.
- Vici Properties Value: As a REIT focused on casino and entertainment properties, Vici's stock is down 5% this year but offers a high dividend yield of 6.7%, with FFO per share increasing from $0.51 to $0.82, indicating strong cash flow coverage.
- Investment Strategy Recommendation: In the current market, undervalued high-yield stocks like Sanofi, AT&T, and Vici Properties present attractive investment opportunities, particularly for investors seeking stable returns through dividend income.
See More
Comparison of CDW and VICI Stock Performance
- Stock Performance Comparison: CDW is currently trading up approximately 1.4%, while VICI is up about 1.6%, indicating relative stability and slight growth for both companies in the market.
- Market Dynamics Analysis: During Friday's trading session, both CDW and VICI showed upward trends, reflecting investor confidence in these companies, despite the modest gains.
- Investor Sentiment: Although the increases are limited, the performance of CDW and VICI may attract investors seeking stable returns, suggesting a positive outlook on the fundamentals of both companies.
- Industry Impact: The stock price movements of CDW and VICI could influence investor decisions in related industries, especially in the current economic environment where investors favor companies with stable growth.
See More
Inflation Drives Performance of REITs
- Inflation Surge: The closure of the Strait of Hormuz has disrupted global trade, causing the Consumer Price Index (CPI) to rise by 4.2% over the past 12 months, marking the highest level in three years, with energy costs contributing a 23.5% increase.
- Gladstone Land's Advantage: Gladstone Land focuses on farmland investments, owning 99,000 acres leased to high-quality tenant farmers under long-term agreements that include annual rent escalators and participation rent clauses, positioning it to benefit from inflationary pressures.
- Vici Properties' Growth: Vici Properties invests in experiential real estate, owning 101 properties with 45% of its rent linked to CPI, expected to rise to 87% by 2035, providing stable cash flow to support its growing dividend.
- W.P. Carey's Stability: W.P. Carey owns over 1,700 properties, with 49% of its rent from CPI-linked leases, achieving same-store rental growth rates of 2.3% to 4.3% in recent years, ensuring a dividend yield exceeding 5%, showcasing strong financial resilience.
See More
Inflation Drives Rent Growth for REITs
- Gladstone Land's Investment Edge: Gladstone Land focuses on farmland for fresh produce, owning 144 farms across 99,000 acres, with long-term leases featuring annual rent escalators, positioning it to benefit from inflation and earn higher participation rents.
- Vici Properties' Rent Protection: Vici Properties has 45% of its rent linked to the Consumer Price Index (CPI), expected to rise to 87% by 2035, providing stable cash flow that supports its dividend yield of over 6.5%.
- W.P. Carey's Rent Growth: W.P. Carey derives 49% of its rent from CPI-linked leases, achieving same-store rental growth rates between 2.3% and 4.3% in recent years, ensuring a dividend yield exceeding 5% while continuing to raise payouts after exiting the office sector.
- REITs Investment Opportunities: With rising inflation, REITs like Gladstone Land, Vici Properties, and W.P. Carey are well-positioned for investment due to their rent growth mechanisms, making them attractive for investors seeking returns in the current economic climate.
See More
Quality Dividend Stocks for Long-Term Holding
- Real Estate Investment Trust: Realty Income has been a favorite since 2014, owning approximately 15,700 properties primarily leased to recession-resistant retailers, with long-term triple-net leases ensuring stable cash flow and a monthly dividend yield of 5.3%.
- Stable Dividend Growth: Realty Income has increased its dividend for over 100 consecutive quarters, achieving an annualized total return of 13.6% since its 1994 listing, demonstrating strong market performance and low volatility.
- Casino Property Investment: Vici Properties focuses on casino properties, and despite recent struggles in Las Vegas tourism, its 6.8% dividend yield and strong asset portfolio, including Caesars Palace and MGM Grand, provide significant long-term growth potential.
- Financial Flexibility: Vici boasts a solid balance sheet and credit rating, allowing it to enhance shareholder value when attractive acquisition targets arise, currently trading at 10.8 times expected 2026 funds from operations, indicating its rare value in a high-priced market.
See More
