VICI Properties Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did VICI Beat Earnings? Q1 2025 Results
VICI Properties delivered a mixed first quarter, with adjusted earnings meeting internal benchmarks but falling short of Wall Street's expectations as a hefty non-cash charge clouded the headline numbers. The experiential real estate investment trust posted Q1 2025 AFFO of $0.58 per share, missing the $0.68 consensus estimate by 14.62%, while total revenues climbed 3.4% year-over-year to $984.20 million, supported by contractual rent escalators across its fully occupied portfolio. The primary culprit behind the earnings gap was a $186.96 million non-cash CECL credit loss provision, which alone shaved $0.18 off per-share earnings and pushed reported net income down 7.9%. Beyond the accounting headwinds, VICI continued deploying capital aggressively, committing $300.00 million to a luxury mixed-use mezzanine loan and arranging $1.30 billion in new senior notes to eliminate near-term refinancing risk. With shares recently reclaiming a short-term technical milestone, the company offered investors a degree of reassurance by raising its full-year 2025 AFFO guidance to $2.47 billion to $2.50 billion, or $2.33 to $2.36 per diluted share.
- Contractual rent escalators driving 3.4% year-over-year revenue growth
- AFFO growth of 5.6% year-over-year to $616.0 million
- 100% occupancy rate across 93 experiential properties
- 40.4-year weighted average lease term providing long-term revenue visibility
- Growing income from loans and securities portfolio ($42.5 million vs $28.4 million YoY)
“VICI is proud of its long-standing partnerships, and we are very excited to have established two new strategic relationships so far this year with Cain International and its affiliate Eldridge Industries, as well as Red Rock Resorts. In February, we announced the establishment of our strategic relationship with Cain International and Eldridge Industries through a $300.0 million mezzanine loan investment related to the One Beverly Hills development project. Subsequent to quarter-end, we entered into an agreement to provide up to $510.0 million in a delayed draw term loan facility for the development of a tribal casino in central California that will be developed and managed by affiliates of Red Rock Resorts, thus establishing a partnership with Red Rock Resorts, one of the premier regional gaming operators. This transaction represents VICI's second loan investment on tribal land and Red Rock Resorts' first partnership with a REIT. We value both of these partnerships and take pride in our ability to build deep relationships with dynamic growth-minded operators that will help to contribute to our long-term growth goals and objectives.”
VICI Properties CEO, on the earnings call
Forward Guidance & Outlook
VICI raised its full-year 2025 AFFO guidance to between $2,470 million and $2,500 million, or between $2.33 and $2.36 per diluted common share, up from prior guidance of $2,455 million to $2,485 million ($2.32 to $2.35 per share). Guidance does not include the impact of any pending or possible future acquisitions or dispositions, capital markets activity, or other non-recurring transactions. The company cannot provide GAAP net income guidance due to the unpredictable nature of the non-cash CECL allowance adjustments.
VICI YoY Financials
VICI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.