VICI Properties eyes long-term growth on Las Vegas Strip, commits to dividend increases

Real estate investment trust VICI Properties highlighted its strong position on the Las Vegas Strip and plans for dividend growth at the Nareit REITweek conference in New York.

Through key acquisitions like the $17.2 billion MGM Growth Properties deal in 2022, VICI now controls approximately 1.7 miles of the four-mile Las Vegas Strip frontage, a key asset in its long-term investment strategy.

“Over the next 10, 20, 30, 40 years, development of that frontage represents the most significant opportunity for VICI,” said CEO Ed Pitoniak at the conference.

VICI is also expanding beyond gaming into experiential real estate, including potential investments in youth sports facilities in the fast-growing Las Vegas Valley.

Dividend growth and adjusted funds from operations (AFFO) remain top priorities for VICI, which benefits from the REIT structure requiring approximately 90% of earnings to be paid out as dividends. This tax-driven payout policy has helped VICI build a strong reputation among income-focused investors.

Currently, VICI offers a trailing 12-month dividend yield of 5.18%, positioning it as an attractive income investment relative to high-yield U.S. government debt. Since its spin-off from Caesars Entertainment in 2017, the company has increased its dividend nearly tenfold.

Pitoniak also addressed recent volatility in the bond market, describing a 13 basis-point move in 10-year Treasury yields as “friggin’ scary,” and underscored the challenges such volatility creates in pricing capital.

VICI maintains a strong balance sheet with investment-grade ratings from all major agencies. “We’ve worked hard to get the balance sheet to give us the optionality to weather all storms,” said CFO David Kieske.