VICI Works to Ease Caesars Lease Strain as Stock Slides Further

VICI Properties Inc. is tackling investor worries about its main lease deal with Caesars Entertainment. The company knows this problem has hurt its stock value in recent months. Leaders from the real estate investment trust (REIT), which owns a lot of Caesars’ casino property, say they are working with the gaming company to fix this issue. They want to find a solution that helps both sides.

VICI Faces Investor Pressure as Caesars Lease Worries Deepen

VICI’s stock price has dropped by over 8% in October and more than 11% in the last three months. This decline shows that investors are worried about how Caesars’ regional casino lease is set up and whether it can last. In the company’s latest earnings call, CEO Edward Pitoniak said VICI was “looking for ways to benefit both sides,” and added that since splitting from Caesars in 2017, VICI has built its reputation by dealing with problems head-on.

The REIT’s President, John Payne, agreed with this idea. He pointed out that having fewer tenants lets VICI build stronger relationships and act when issues come up. He noted that they had always found solutions that worked for everyone, hinting that talks with Caesars are still going well.

The fight over the regional casino lease happens as Caesars Entertainment faces bigger financial problems. Most people think the company will not meet its goal to cut $1 billion in debt by 2025. Some experts guess that Caesars might try to get out of this mess by selling the rights to run certain properties where VICI owns the land and buildings. This would help Caesars lower its debt while keeping VICI’s rent money coming in.

VICI Posts Solid Q3 Gains While Exploring Caesars Forum Acquisition

Even with all these concerns, VICI did well in the third quarter. Money coming in grew 4.4% compared to last year, reaching $1.01 billion. The company’s adjusted funds from operations for each share went up 5.3%. VICI also said it expects to make more money this year than it thought before, thanks to running things well and being smart about where it spends its money.

Besides discussing its ties with Caesars, VICI said it is looking into buying the Caesars Forum convention center on the Las Vegas Strip. Payne mentioned that they still have a chance to get the $375 million building, close to the Flamingo Harrah’s, and the LINQ, but when they will do it depends on other things they need to do and how the market looks.

VICI’s executives still believe in Las Vegas as a great place for conventions and fun in the long run, saying the city will keep drawing people even if things are tough right now. Pitoniak said VICI’s plan is to “wait but act when the time is right,” looking to get assets and team up with others in ways that will help them grow for many years, not just a few months.

Owning almost six million square feet of meeting and event space and a robust portfolio centered on Caesars Palace, VICI faces a crucial decision. How they balance working with their biggest tenant while chasing new opportunities might shape the REIT’s direction as it moves toward 2026.