Published on: September 26, 2025, 10:38h.
Updated on: September 26, 2025, 10:38h.
- Jonathan Litt’s Land & Buildings urges Six Flags to divest its real estate assets
- Investor speculates that VICI Properties might be a potential purchaser
- Casino landlord is expanding its non-gaming portfolio
Jonathan Litt’s Land & Buildings Investment Management, LLC (L&B) is advocating for Six Flags Entertainment (NYSE: FUN) to explore options for spinning off or selling its real estate portfolio, suggesting that a transaction could attract interest from various parties, including VICI Properties (NYSE: VICI).
As a significant stakeholder in Six Flags, L&B assesses the value of the amusement park’s properties at approximately $5.67 billion. Given that the stock has plummeted by 50% this year, L&B believes this might be the opportune moment for the company to assess sale-leaseback arrangements or to initiate a real estate spin-off to unlock “hidden real estate value.” Previously holding shares of VICI, L&B indicated that the owner of Caesars Palace could be interested in the Six Flags properties.
Litt wrote in a letter to Six Flags shareholders that “Multiple buyers, such as VICI Properties, are explicitly interested in acquiring large-scale real estate like theme parks, with valuations that could nearly be double the current trading multiples.”
He stressed that monetizing real estate has yielded significant value for considerable real estate-intensive operating businesses across various sectors, including gaming.
Reasons for Six Flags to Consider a Real Estate Sale
In 2022, L&B presented the concept of real estate monetization to Six Flags management, highlighting that such a strategy could elevate the stock price by 50%. The firm also pointed to gaming landlords such as Gaming and Leisure Properties (NASDAQ: GLPI) and VICI Properties as potentially attractive partners for a sale-leaseback transaction.
In August 2023, the investor revisited this strategy, but Six Flags management opted for a different path. A few months later, the company announced its acquisition of Cedar Fair, which initially seemed promising to investors but has since weighed down the purchaser’s stock performance.
“The performance post-merger has proven our viewpoint correct; it has been significantly worse than we anticipated,” Litt noted.
According to Litt, given the currently depressed valuation of Six Flags, a substantial real estate transaction could revitalize its stock, and the timing is ideal for such consideration.
“With the Company’s valuation hitting near historical lows, we see an even more compelling opportunity for a revaluation by separating the real estate, which could yield over 75% immediate growth based on the 2026 consensus figures,” Litt observed. “Potential growth could reach as high as 130% if 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) rebound to $1.1 billion (FUN’s original 2025 forecast).”
VICI as a Potential Buyer of Six Flags Properties
While VICI has not formally expressed interest in acquiring Six Flags real estate, the idea of such a deal is not improbable. The real estate investment trust (REIT) is the predominant owner of casino properties in Las Vegas and throughout the United States, and while open to additional opportunities in the gaming sector, it doesn’t necessarily need more volume there.
Furthermore, the REIT has made it clear that it aims to diversify its portfolio with different types of experiential properties. Six Flags properties fit that criterion well.
Over recent years, VICI has invested in or acquired properties previously owned by leisure brands, including Bowlero, Cabot, Canyon Ranch, Chelsea Piers, and Kalahari, among others, underscoring the REIT’s willingness to engage in non-gaming acquisitions when the conditions are favorable.