If you're looking for a high-yielding, diversified REIT (real estate investment trust), check out VICI Properties (NYSE: VICI). The company has a broad portfolio of experiential assets, with a primary focus on gaming, hospitality, and entertainment properties, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.
In total, Vici Properties owns 93 assets across the United States and Canada. Its diversified gaming sector portfolio has a perfect 100% occupancy rate, which is a sign of strong demand and stable rental income.
It’s About the Dividend
The reason that a diversified REIT like Vici Properties is a favorite of income investors is its dividend. REITs are required by law to distribute more than 90% of their earnings in the form of dividends, meaning all REITs should have a payout ratio of more than 90%.
I put should in italics because astute investors will note that Vici Properties has a payout ratio of “only” around 70%. But that’s inherent to the company’s triple-net lease structure. In this model, the tenants are responsible for property expenditures and capital expenditures.
This means that VICI has low capital expenditure needs compared to other REITs. But it does that without sacrificing yield. In fact, with a yield of 6.3% as of this writing, it has one of the most compelling yields investors can find.
It's also still seeing stable dividend growth. The company paid out a quarterly cash dividend of 45 cents on October 9 and has increased that payout for four consecutive years.
The Big Money is Buying This Diversified REIT
Institutional buying is a good way to confirm bullish sentiment. And several funds have recently started or added to a position in VICI stock. The list includes:
- Joel Greenblatt's Gotham Asset Management increased its stake in VICI by just over 94%.
- Jim Simons' Renaissance Technologies raised its stake by just over 615%.
- Jane Street Group recently acquired 1.27 million shares of VICI.
The Outlook is Boosted by Solid Earnings
In its most recent quarter, VICI Properties reported funds from operations (FFO) per share of 71 cents, which missed estimates by just a penny. Revenue of $1 billion, up 4.4% year over year, was in line with estimates. The company also expects full-year adjusted FFO (AFFO) per share of $2.36 to $2.37, as compared to prior guidance of between $2.35 and $2.37.
As noted by Edward Pitoniak, CEO of VICI Properties, "In the third quarter of 2025, the compounding nature of our business continued to demonstrate its merit with 4.4% year-over-year revenue growth and 5.3% year-over-year growth in AFFO per share, supporting our 8th consecutive annual dividend increase of $0.0175 per share, representing a 4.0% year-over-year increase," as quoted by VICI's most recent earnings release.
What Could Go Wrong With VICI?
For all the positives of owning a diversified REIT like VICI stock, there is one concern. That is, its two largest tenants, MGM and Caesars, contribute 38% and 36% of lease revenues, respectively. That exposes the REIT to a concentration risk.
Although the triple-net lease structure mitigates direct operational risk, these tenants possess strong credit profiles. That means the financial performance of these two companies remains a key determinant for VICI’s long-term performance.
The Last Word on VICI Properties
With a healthy yield of 6.3%, coupled with strong exposure to gaming, hospitality and entertainment properties and a 100% occupancy rate, VICI Properties is one of the top real estate investment trusts to buy and hold long term. Plus, with respectable earnings growth, dividend payout consistency and strong future growth, VICI is a must-own for income investors looking for the qualities of a diversified REIT.
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