Cantor Fitzgerald adjusted its price target for VICI Properties Inc. (NYSE:VICI) on January 5, reducing it to $33 from $35. The firm maintained an Overweight rating on the stock.
US equity REITs returned 2.9% in 2025, trailing the S&P 500. Cantor Fitzgerald sees room for improvement in 2026, pointing to a more supportive macro backdrop and growing momentum around M&A activity. In its view, those factors could start to work in the sector's favor.
The analyst said stable supply and demand, solid balance sheets, and a well-covered dividend continue to support the group. VICI's dividend yield has room to grow, which Cantor believes adds to the appeal despite the sector's recent underperformance.
VICI Properties Inc. went public in early 2018 in one of the largest REIT IPOs at the time. As a REIT, the company is required to distribute most of its taxable income to shareholders. That structure has helped make the company a consistent dividend payer, with annual increases in each of the seven years since its IPO.
The company operates under a triple-net lease model, where tenants are responsible for property taxes, insurance, and maintenance. This setup keeps operating costs predictable and shifts much of the risk to the tenant. VICI's portfolio remains fully leased, with occupancy at 100%.
Most of its long-term leases include rent escalators tied to the Consumer Price Index, which helps protect rental income as inflation moves. Every lease also includes annual base rent increases, whether fixed or variable.
VICI Properties Inc. focuses on owning, acquiring, and developing experiential real estate, with assets designed around destination-style venues rather than traditional commercial properties.