Deutsche Bank Cuts VICI Properties Price Target to $32 After $2.1B Deals at 8.9% Yield
Deutsche Bank cut VICI Properties’ price target to $32 from $34 while maintaining a Hold rating and highlighted cautious near-term growth expectations. The REIT closed $2.1 billion of 2025 strategic deals—including a $510 million term loan and $1.16 billion sale-leaseback—with a weighted average initial yield of 8.9%.
1. Price Target Revision
Deutsche Bank trimmed its price objective on VICI Properties to $32 from $34 and reaffirmed a Hold rating, reflecting a cautious outlook on near-term performance. The 6% reduction underscores tempered growth expectations while acknowledging the REIT’s stable cash flows under long-term leases.
2. Strategic Investment Activity
During 2025 VICI Properties committed $2.1 billion in strategic investments, including a $510 million delayed draw term loan with Red Rock Resorts and a $1.16 billion sale-leaseback transaction with Golden Entertainment. These agreements carried a weighted average initial yield of 8.9%, illustrating the company’s focus on disciplined capital deployment and attractive returns.
3. Asset Performance and Market Expansion
CEO Edward Pitoniak highlighted The Venetian’s EBITDAR growth from $487 million pre-pandemic to $777 million in 2024, demonstrating strong operating partner performance under triple net leases. VICI also entered the Las Vegas locals market, targeting favorable demographics and consistent demand to diversify its portfolio.