VICI Properties Lowered by Scotiabank on Caesars Lease Uncertainty

Core Viewpoint - VICI Properties Inc. has been downgraded by Scotiabank due to uncertainties surrounding its lease with Caesars Entertainment, which may limit external growth opportunities and affect stock momentum [2]. Company Overview - VICI Properties is a relatively young Real Estate Investment Trust (REIT), established in 2017 as a spinoff from Caesars during its Chapter 11 restructuring. The company has rapidly expanded its portfolio through sale-leaseback deals and mergers, now including various casino properties and experiential investments like bowling and entertainment venues [3]. Financial Stability - The company operates under triple-net lease agreements, with approximately 50% of its rent linked to inflation, ensuring stable cash flow and built-in rent growth over time [4]. - VICI maintains a solid financial position with a dividend payout ratio of around 75% and a leverage ratio of approximately 5.0x, allowing for continued investment in acquisitions and property upgrades [5]. - VICI has consistently increased its dividend annually since going public, marking its eighth consecutive annual increase in late 2025 [6].