Fitch Ratings Service has reaffirmed its positive view of real estate investment trust VICI Properties, which is the Strip’s largest landowner following nearly $23 billion in acquisitions since 2022.
In a statement Monday, Fitch analysts said the company ratings outlook reflects the REIT’s status as one of the largest in terms of enterprise value, cash flow generation and access to funding.
On the Strip, VICI owns roughly 660 acres covering 10 resorts operated by MGM Resorts International, Caesars Entertainment, Apollo Global Management and Hard Rock Entertainment.
VICI, which is headquartered in New York City, is the gaming industry’s largest REIT, owning the land and buildings associated with 49 gaming properties, operated by 10 gaming companies in 15 states and Canada.
As of March 31, VICI had $17.1 billion in total debt and $3.6 billion in cash and other financial sources, including bank loans and pending sales agreements.
“Positively, the company has stable occupancy and rent collections with Consumer Price Index-linked escalators, though overall gaming REITs have weaker contingent liquidity compared with more traditional commercial real estate property types,” Fitch analysts wrote.
Last year, VICI completed a $17.2 billion buyout of rival REIT MGM Growth Properties and contributed $4 billion toward a $6.25 billion purchase of the Strip properties that were operated by Las Vegas Sands Corp. In January, VICI paid Blackstone REIT $1.27 billion for 49.9 percent of MGM Grand and Mandalay Bay, assuming the firm’s $3 billion in property debt.
