VICI Admits Caesars Regional Casinos Lease Has Been ‘Overhang’
Posted on: November 1, 2025, 04:45h.
Last updated on: November 1, 2025, 04:45h.
- Landlord admit issues with Caesars regional casino master lease are among factors weighing on its stock
- REIT mentions possibility of acquiring Caesars Convention Center on Las Vegas Strip
- Says its working with Caesars resolutions to regional lease concerns
Shares of VICI Properties (NYSE: VICI) dropped 8.43% in October and are off 11.61% over the past 90 days. Concern within the investment community about the state of the property owner’s regional master lease agreement with Caesars Entertainment (NASDAQ: CZR) are among the reasons the real estate stock is faltering.
On the real estate investment trust’s (REIT) third-quarter earnings conference call, management admitted as much, though executives stopped short of blaming the stock’s recent weakness on issues stemming from the relationship with Caesars.
We do think it’s a confluence of factors between, yes, this Caesars focus, but also at the same time, when there’s been a positioning rotation out of some winners, out of some long positions as the market has rotated into the end of the year,” said Moira McCloskey, vice president of capital markets, in response to analyst question. “So, the timing has been unfortunate, but we do think it’s a combination of factors, not just the one particular overhang.”
VICI, which was spun out of Caesars in 2017, is the largest owner of the casino operator’s real estate — holdings that include Caesars Palace on the Las Vegas Strip.
Caesars, VICI Working Towards Resolution
Amid another quarter of disappointing results and increasing likelihood that Caesars will miss its 2025 debt reduction target of $1 billion, there’s been increasing chatter on Wall Street that the gaming company may be strained by its regional master lease accord with VICI and that’s looking for some relief on that front.
The landlord didn’t discuss its tenants financial issues, but CEO Edward Pitoniak noted the REIT is willing to work with its client to find favorable resolution.
“We would look across the portfolio on our own and with them determine where do they want to be, where they want to continue to be, where do we want to continue to be, what are the various levers that we can work on our side, on their side to make sure that we end up with an outcome that is a genuine win-win for both parties,” he said in response to an analyst query.
The most effective avenue would be for Caesars to the operating rights on some of the casinos where VICI owns the real estate, which could happen if interest rates continue falling, but no official announcements have been made to that effect. Outside of Las Vegas, VICI owns the real estate of more than 15 Caesars-operated casinos.
Caesars Convention Opportunity ‘Live,’ Says VICI
Earlier this year, speculation surfaced that VICI could bid for Caesars Forum convention center on the Las Vegas Strip. Nothing has come of that rumor as of yet, but the REIT confirmed there is an opportunity to acquire that property.
“We obviously have a variety of things that we evaluate. You are correct that the opportunity to buy the Caesars Forum Convention Center is live right now,” said President John Payne on the conference call. “And we’re fitting it into all the other things that we look at when is the right time. Is there the right time?”
Located behind the Flamingo, Harrah’s, and LINQ casino resorts, the convention center cost $375 million when construction started in 2018. It’s not clear if Caesars would sell it and lease it back from VICI or outright wash its hands of the meeting space.
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