3 Reasons Why I Can’t Stop Buying VICI Properties
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Over the past six months, VICI Properties’ (VICI) share price has dropped by more than 15%, which is a dip I’ve been taking advantage of big time.
Since the beginning of November alone, I’ve added 42 shares to my position, and there are three distinct reasons why I’ve been loading up on this company lately despite its poor performance, and that’s exactly what I want to tell you about in this newsletter.
Reason #1: Despite the Rumors, Vegas Isn’t “Dead”
A big reason VICI’s share price has suffered lately is tied to the broader narrative around Las Vegas itself, where VICI has a major presence.
You’ve probably heard some version of it by now. Headlines and YouTube video titles have all been saying that “Vegas is dead.”
Behind the headlines are claims that fewer people are visiting, and tourism to Vegas is bleeding out. The narrative is that the party’s over, and that the city has lost its luster.
To be fair, tourism numbers have come down from recent highs this past year. But I think the public’s (and the market’s) reaction to that has been pretty knee-jerk and overexaggerated.
We’ll get into some of the numbers in just a moment, but first, it helps to understand why visitation has mellowed out.
One reason is that there has been noticeably less international travel, especially from Canada. A lot of Canadian travelers are boycotting U.S. travel, primarily driven by geopolitical tensions, and have simply chosen not to come to the States. That’s had a real impact on Vegas, which historically benefits from strong international traffic.
On top of that, Vegas has undeniably gotten more expensive. Food and drinks cost more than they used to, table minimums at the casinos are higher, and resort fees have gotten out of control.
When you put all of that together, Vegas doesn’t feel like the cheap getaway destination it once was, and visitors have been feeling squeezed. And I think that shift has caused some people to stay home or travel elsewhere.
Despite all of that, when you actually look at the numbers, you’ll come to find that Vegas is still very much alive (and thriving).
According to the most recently available numbers, year-to-date through the end of November 2025, Las Vegas had about 35.5 million visitors. That works out to roughly 3.23 million visitors per month.
And importantly, that number is only 7.4% lower than the same year-to-date period in 2024 — a year that was close to being a record for total visitation.
So when headlines talk about Vegas being “dead,” it’s easy to imagine something dramatic — empty casinos, vacant hotels, and tumbleweed rolling down Las Vegas Blvd.
But in reality, what we have here is a city that’s still attracting over three million visitors every single month, even after coming off one of the strongest tourism runs in its history.
Plus, it’s important to remember that travel is cyclical. There are always ebbs and flows, and this is definitely not the first time Vegas has seen a year-over-year dip in visitors.
Overall, this is not a long-term problem.
Reason #2: VICI Is Smack Dab In The Center Of My Circle of Competence, and I’m Very Bullish on Vegas Long Term
One reason I feel so strongly about VICI Properties — and why I think it’s a fitting investment for me — is because I live in Las Vegas.
Although that does admittedly make me biased, it also gives me a boots-on-the-ground perspective that I think is advantageous here.
Even though VICI owns plenty of properties outside of Las Vegas, their Strip assets are really what they’re known for, and I get to see them first-hand every day.
Despite the recent tourism slump, my lived experience of Vegas is that this is a city that’s constantly changing and evolving — both on and off the Strip. There are always reasons to visit, and importantly, those reasons continue to expand.
Source: Investor Presentation
Yes, Vegas has always been about partying and gambling — and it definitely still is today.
But it’s also become a destination for world-class dining, entertainment, and business travel. The convention and conference scene here is an underrated advantage that doesn’t get talked about nearly enough — that alone drew 5.7M visitors this year.
And then there’s sports. Vegas has an NFL team, an NHL team, a WNBA team, and soon, we’ll have an MLB team. Not to mention, there’s also the annual F1 Las Vegas Grand Prix, which draws over 300,000 visitors just for the weekend.
All of that is to say that Vegas is no one-trick pony. In my opinion, there’s no other place like it on earth, and it just keeps getting better over time.
Reason #3: Despite the Tourism Concerns, VICI Is Still Fundamentally Strong and Growing
One thing that consistently gets left out of the conversation around VICI and its recent slump is how the company actually makes its money.
A lot of investors worry about declining tourism numbers as if that directly impacts VICI’s revenue. But VICI isn’t a casino operator. They’re the landlord.
Their revenue isn’t tied to how many people walk through the doors — it’s tied to long-term lease agreements with their tenants. Those payments are fixed, contractual, and highly predictable.
In other words, even if fewer people come to Las Vegas, VICI is still entitled to its rent. We actually saw this play out in real time (and in a big way) just a few years ago.
In the years leading up to 2020, Las Vegas regularly saw around 42–43 million visitors per year. In 2020, that number collapsed to just 19 million — a decline of more than 50%.
I actually visited during the summer of 2020, and it was pretty surreal. The Strip felt like a ghost town.
And yet, VICI still maintained 100% occupancy and still collected 100% of its rent from tenants. The business didn’t skip a beat.
Now, that doesn’t mean the same thing will happen in the future or that things could never change. But it does showcase how resilient VICI’s business model is, even during extremely poor times for tourism.
On top of that, VICI’s portfolio of properties isn’t confined to just Las Vegas. They’ve invested in a wide range of experiential assets all across North America, including bowling alleys, golf courses, indoor waterparks, and youth sports facilities.
Source: Investor Presentation
And nearly all of these properties are leased under triple-net agreements with extremely long durations — averaging around 40 years. That dramatically improves revenue predictability, reduces turnover risk, and has helped VICI consistently grow both its cash flow and dividends over time.
Source: Investor Presentation
And thanks to the recent pullback in share price, the dividend yield has been pushed up to around 6.5%, which is way higher than the company’s historical average yield of 5.2%.
Conclusion
All in all, no business is completely immune to setbacks. But from what I can see, the ones VICI is facing are both temporary and manageable, which is why I’ve been relishing the opportunity to buy more shares.
With all of that said, now I want to hear from you: Do you think VICI is a buying opportunity right now, or is the tourism slump keeping you away? Write to me here and let me know.
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To answer your question, there isn’t a single “best” IRA across the board. Like you said, it really comes down to your tax situation now versus what you expect it to look like later.
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