# Why VICI Properties Stock Lags Despite Strong Earnings

> VICI Properties stock remains under pressure after strong earnings due to Caesars Entertainment risks.
- Title: Why VICI Properties Stock Lags Despite Strong Earnings
- Summary: VICI Properties stock remains under pressure after strong earnings due to Caesars Entertainment risks. VICI Properties stock hasn't rebounded after strong…
- Keywords: vici properties, caesars entertainment, reit, dividend, credit losses, affo, stock price, finance, money, VICI, Properties, Stock
- Source: The Motley Fool — https://fool.com/investing/2026/10/29/why-isnt-vici-propertiess-stock-taking-offbouncing-back-after-strongweak-earnings-results
- Author: Matt DiLallo
- Published: 2026-10-29T16:33:01+00:00
- Read time: 1 min
- Topics: vici properties, caesars entertainment, reit, dividend, credit losses, affo, stock price, finance, money
## VICI Properties Earnings Overview
VICI Properties reported higher rental revenue and adjusted funds from operations with a ninth consecutive dividend increase.
## Strong Third-Quarter Results
Total revenues rose 5.8% to $1.1 billion while adjusted funds from operations increased 4.3% to $0.62 per share.
## Dividend and Valuation
The REIT increased its dividend by 2.2% to $0.46 per share with a 7.5% yield and 74% payout ratio.
## Credit Loss Concerns
VICI reported a $458 million increase in expected credit losses due to Caesars Entertainment lease risks.
## Caesars Financial Risks
Caesars accounts for 38% of VICI's rental revenue with $11.7 billion debt and a credit rating downgrade.
## Stock Performance
VICI's stock sits more than 20% below its 52-week high with a valuation under 10 times AFFO.
## Investment Outlook
VICI could deliver double-digit annual returns with modest AFFO growth but faces significant downside risk from Caesars.
## Key takeaway

VICI Properties stock hasn't rebounded after strong earnings because of rising credit losses from Caesars Entertainment lease risks.