Published on: November 1, 2025, 04:45h.
Updated on: November 1, 2025, 04:45h.
- Landlord acknowledges challenges with the Caesars regional casino master lease affecting its stock performance
- REIT hints at potential acquisition of Caesars Convention Center on the Las Vegas Strip
- Indicates collaboration with Caesars to address regional lease concerns
Shares of VICI Properties (NYSE: VICI) fell 8.43% in October and are down 11.61% over the last 90 days. Investor concerns regarding the condition of the property owner’s regional master lease agreement with Caesars Entertainment (NASDAQ: CZR) are contributing to the decline in the stock’s value.
During a recent earnings call for the real estate investment trust (REIT), managers acknowledged the issues without directly attributing the stock’s recent downturn solely to the conflicts surrounding Caesars.
“We believe it’s a combination of factors including some focus on Caesars, but also the broader market trends. As we approach year-end, we’re observing a shift in investments away from previous winners,” commented Moira McCloskey, vice president of capital markets, in response to an analyst’s inquiry. “The timing may not be ideal, but several factors are at play, rather than just one specific issue.”
VICI, which was established from a Caesars spin-off in 2017, serves as the primary landlord for the casino operator’s real estate, including the iconic Caesars Palace in Las Vegas.
Collaborative Efforts Between Caesars and VICI
In light of another quarter marked by underwhelming performance and the increasing likelihood that Caesars may not meet its $1 billion debt reduction target for 2025, there’s rising speculation on Wall Street that the gaming giant might seek relief from its regional master lease agreement with VICI.
The landlord refrained from delving into the financial troubles of its tenants but noted that CEO Edward Pitoniak expressed the REIT’s readiness to collaborate with Caesars for favorable solutions.
“We are reviewing the entire portfolio, evaluating where they prefer to be and how we can coordinate our goals to arrive at a mutually beneficial outcome,” he stated in response to an analyst’s question.
A possible way forward could see Caesars relinquishing operational rights to certain casinos where VICI holds the property rights, contingent on a decline in interest rates, although no formal announcements about this have yet been made. Beyond Las Vegas, VICI holds real estate for over 15 casinos operated by Caesars.
Potential Acquisition of Caesars Convention Center Gains Traction
Earlier this year, rumors emerged suggesting that VICI might pursue the Caesars Forum convention center located on the Las Vegas Strip. While nothing has come of these claims as of yet, the REIT confirmed there remains an opportunity to acquire the venue.
“We continuously assess various potential acquisitions, and you’re correct—the possibility to acquire the Caesars Forum Convention Center is currently active,” remarked President John Payne during the earnings call. “We’re considering it alongside other investments to determine the timing for a potential acquisition.”
The convention center, situated behind the Flamingo, Harrah’s, and LINQ casinos, was constructed for $375 million starting in 2018. It remains uncertain whether Caesars would opt to sell and lease the venue back from VICI or sever ties altogether.