Better Buy: Vici Properties or Realty Income?
At first blush, there would seem to be very little in common between casino real estate investment trust (REIT) Vici Properties (NYSE: VICI) and net lease bellwether Realty Income (NYSE: O). But there are a few important similarities that could lead investors looking at one to consider the other. Here's why one of these giant REITs might be better than the other for your portfolio.
The first important similarity between Vici and Realty Income is that both of the REITs use the net lease approach. Essentially, they lease each of their properties to a single tenant that is contractually responsible for most of the property's operating expenses. This materially reduces the impact of inflation on the REITs because the tenants have to absorb the higher costs associated with things like property maintenance. However, the more important takeaway is that they both have similar approaches.
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Source Fool.com
