Comparing Realty Income (O) and VICI Properties (VICI): Which Net Lease REIT Offers Safer Income in 2025?
In an environment fraught with tariff uncertainty, fiscal concerns, and volatile markets, reliable dividend streams continue to attract income-focused investors. Two prominent players in the net lease REIT space are Realty Income Corporation (O) and VICI Properties Inc. (VICI). Both companies boast strong tenant relationships, investment-grade credit profiles, and growing portfolios, but their strategies, sector exposure, and long-term reliability differ. This article examines which REIT offers safer income in 2025 by evaluating their portfolios, tenant bases, lease structures, and financial strength.
Realty Income Corporation: The Monthly Dividend Company
Realty Income, widely known as "The Monthly Dividend Company," has built a reputation for consistency. Since its NYSE listing in 1994, it has boasted 131 dividend hikes, 30 consecutive years of dividend growth, and 111 straight quarterly increases. This consistency is anchored by a globally diversified portfolio of 15,627 properties across 50 U.S. states and other international markets, leased to tenants in 91 different industries. A staggering 91% of its retail rent comes from non-discretionary, service-based tenants such as dollar stores, grocery chains, and convenience stores—sectors that tend to hold up well in downturns.
Realty Income's strength lies in its scale and diversification. Its focus on single-tenant, freestanding properties under long-term net leases has resulted in a historical median occupancy rate of 98.2%. The company has also expanded into high-growth areas like data centers and gaming, with recent transactions including Encore Boston Harbor and a partnership with Digital Realty. It expects full-year investments to total around $4 billion. With a global net lease addressable market estimated at $14 trillion, long-term growth potential remains compelling.
Financially, the REIT maintains $2.9 billion in liquidity, investment-grade ratings (A-/A3), and a well-laddered debt maturity profile. However, retail exposure poses some risk from bankruptcies or trade disruptions. Additionally, interest rate sensitivity and elevated leverage ($27.6 billion in debt) remain key concerns in a high-rate environment. Its interest expenses were up 11.5% year over year to $268.4 million in the first quarter of 2025.
VICI Properties: A Leading Experiential Net Lease REIT
VICI Properties is a leading experiential net lease REIT with a portfolio of 93 properties, including Caesars Palace, MGM Grand, and the Venetian Resort in Las Vegas. It specializes in mission-critical assets in gaming, hospitality, and entertainment, with properties located in 26 U.S. states and one Canadian province. These assets are under long-term triple-net leases with initial terms ranging from 15 to 32 years and extension options pushing average lease terms to more than 40 years.
What makes VICI especially compelling is its 100% occupancy rate and the mission-critical nature of its assets—tenants cannot easily relocate without incurring significant costs or regulatory hurdles. About 74% of rent roll comes from S&P 500
