VICI Properties posts strong Q1 and raises full-year AFFO guidance despite Las Vegas challenges

VICI Properties showed resilience in Q1 with solid financial results and raised its full-year AFFO guidance, despite facing challenges from tenant issues and reduced traffic in Las Vegas. The company is diversifying its portfolio by acquiring properties from Golden Entertainment and Canadian casinos, which lowers its dependence on Caesars and the Las Vegas Strip. While AFFO growth guidance is modest at 2.3%, VICI offers an attractive total return potential of 8–9% when combining a 6.1% yield and a strong balance sheet. The analyst maintains a buy rating due to VICI's strong fundamentals, undervaluation compared to peers, and a reliable, growing dividend, even with some short-term uncertainties around Caesars leases.