VICI Could Be Interested in Six Flags Real Estate, Says Investor
Posted on: September 26, 2025, 10:38h.
Last updated on: September 26, 2025, 10:46h.
- Jonathan Litt’s Land & Buildings is pushing Six Flags to spin off real estate holdings
- Investor believes VICI Properties could be a potential buyer
- Casino landlord is adding to nongaming holdings
Jonathan Litt’s Land & Buildings Investment Management, LLC (L&B) is pushing Six Flags Entertainment (NYSE: FUN) to consider spinning off or selling its real estate holdings, noting that a property sale could draw interest from various suitors, including VICI Properties (NYSE: VICI).
A major investor in Six Flags, L&B estimates the amusement park operator’s property holdings to be worth $5.67 billion, adding that with the stock down 50% year to date, the time could be right for the company to evaluate sale-leasebacks or a real estate spin-off to unlock “trapped real estate value.” L&B, which has previously owned shares of VICI, said the Caesars Palace owner could be among the companies interested in Six Flags’ real estate.
Multiple buyers, such as VICI Properties, remain explicitly interested in acquiring real estate like theme parks in scale at valuations nearly double the current trading multiple,” Litt wrote in a Friday letter to Six Flags shareholders.
He adds that real estate monetization has unlocked “substantial value for real estate heavy operating business” in a variety of industries, including gaming.
Compelling Reasons for Six Flags to Sell Real Estate
In 2022, L&B presented the idea of real estate monetization to Six Flags management, noting at that time such a move could boost the shares by 50%. He pointed out to management that casino landlords Gaming and Leisure Properties (NASDAQ: GLPI) and VICI Properties were among the potentially “attractive partners” for Six Flags in a sale-leaseback scenario.
In August 2023, the investor went back to that well, but Six Flags management went a different direction. A few months later, the company announced the takeover of rival Cedar Fair — a move that was initially applauded by investors, but one that’s been a drag on the buyer’s stock price.
“The performance post-merger has not only proven us right, it’s been far worse than we even anticipated,” wrote Litt.
The investor adds that with Six Flags’ valuation depressed, a major real estate transaction could rejuvenate the stock, and the time is right for the company to consider such a move.
“Today, with the Company’s valuation near all-time lows, we see an even more compelling re-rating opportunity from separating the real estate, with over 75% immediate upside based on 2026 consensus estimates,” observes Litt. “Upside could be as much as 130% if 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) recovers to $1.1 billion (FUN’s original 2025 guidance).”
VICI Could Be a Logical Buyer of Six Flags’ Real Estate
Although VICI hasn’t publicly said it’s interested in Six Flags’ real estate, it’s not a stretch to see such a deal eventually coming to fruition. The real estate investment trust (REIT) is the largest owner of casino real estate in Las Vegas and the US, and while it’s not closed to more deal-making in the gaming space, it doesn’t need to add bulk there.
Additionally, the REIT has made clear it wants to add other forms of experiential real estate to its portfolio. Property currently owned by Six Flags checks that box.
Over the past several years, VICI has made investments or acquired real estate previously owned by leisure entities, including Bowlero, Cabot, Canyon Ranch, Chelsea Piers, and Kalahari, among others, confirming the REIT will engage in nongaming deals when the terms are attractive.
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