Introduction & Market Context
VICI Properties Inc. (NYSE:VICI), an S&P 500 experiential real estate investment trust, released its Q1 2025 financial results, showing mixed performance with revenue exceeding expectations while earnings per share fell short of forecasts. The company reported revenue of $984.2 million, surpassing analyst expectations of $974.76 million, but delivered earnings per share of $0.51, missing the projected $0.68 by 25%.
Following the earnings announcement, VICI’s stock declined 0.77% in after-hours trading, reflecting investor disappointment with the earnings miss despite strong top-line growth. The stock currently trades near $32, below its 52-week high of $34.29 but well above its 52-week low of $27.53.
Portfolio & Financial Highlights
VICI Properties maintains a robust portfolio of 93 experiential assets, including 54 gaming properties and 39 other experiential properties across 26 states and one Canadian province. The company boasts impressive portfolio metrics, including a 100% occupancy rate and a weighted average lease term of 40.4 years, providing significant long-term revenue visibility.
As shown in the following portfolio and financial highlights slide, VICI reported key financial metrics for Q1 2025, including a dividend yield of 5.3% and an annualized dividend per share of $1.73:
The company’s financial position remains solid with a total enterprise value of $51.8 billion and a leverage ratio of 5.3x. VICI maintains investment-grade credit ratings from all three major agencies: Moody’s (Baa3/Stable), S&P (BBB-/Stable), and Fitch (BBB-/Stable).
Detailed Financial Analysis
VICI’s consolidated statement of operations reveals the details behind the company’s Q1 2025 performance. Total (EPA:TTEF) revenues increased to $984.2 million from $951.5 million in Q1 2024, representing a 3.4% year-over-year growth. However, net income attributable to common stockholders decreased to $543.6 million from $590.0 million in the same period last year.
The following consolidated statement of operations provides a comprehensive view of VICI’s financial performance:
A significant factor affecting earnings was the change in allowance for credit losses, which increased to $187.0 million in Q1 2025 from $106.9 million in Q1 2024. This non-cash accounting adjustment had a substantial impact on reported earnings, contributing to the EPS miss.
VICI’s non-GAAP financial measures provide additional insight into the company’s underlying performance. Adjusted Funds From Operations (AFFO) per share, a key metric for REITs, increased to $0.58 in Q1 2025 from $0.56 in Q1 2024, representing a 3.6% improvement.
The following slide details the company’s non-GAAP financial measures:
The quarterly comparison of non-GAAP measures shows consistent AFFO performance over the past four quarters, with Q1 2025 marking a slight improvement over previous periods:
Revenue Composition
VICI’s revenue is primarily derived from its diverse portfolio of gaming and experiential properties. The company’s revenue detail shows the breakdown of income from various leases, with significant contributions from Caesars (NASDAQ:CZR), MGM, and The Venetian Resort Las Vegas.
Income from sales-type leases totaled $528.6 million in Q1 2025, up from $512.8 million in Q1 2024. The Caesars Las Vegas Master Lease contributed $123.9 million, while The Venetian Resort Las Vegas Lease generated $74.2 million, showing significant year-over-year growth.
Balance Sheet Strength
VICI’s consolidated balance sheet demonstrates the company’s substantial real estate portfolio and financial position. As of March 31, 2025, total assets stood at $45.5 billion, with investments in leases comprising the majority of assets.
The company’s debt position remains manageable at $16.8 billion, with cash and cash equivalents of $334.3 million. According to the earnings call, VICI successfully refinanced its 2025 debt maturities, further strengthening its financial position.
Forward-Looking Statements
Despite the earnings miss, VICI’s management expressed confidence in the company’s outlook. According to the earnings call, VICI raised its 2025 AFFO guidance to a range of $2.47-$2.50 billion, signaling optimism about future performance. The company anticipates a 3.8% year-over-year growth in AFFO per share.
CEO Ed Petoniak emphasized the company’s focus on total return, stating, "Everything we do at VICI is ultimately about total return in all of its key components." President and COO John Payne highlighted the importance of partnerships, noting that "Partnership is at the core of what we do."
The company continues to explore growth opportunities with existing partners and is monitoring the New York Gaming license process. VICI’s strong track record of dividend growth, having increased its dividend for seven consecutive years, underscores its commitment to shareholder returns.
Corporate Structure
VICI’s corporate overview provides insight into the company’s leadership and governance structure:
Led by CEO Edward Pitoniak and a seasoned management team, VICI focuses on creating "the highest quality and most productive experiential real estate portfolio." The company’s board of directors, chaired by James Abrahamson, provides oversight and strategic guidance.
Challenges and Risks
While VICI maintains strong portfolio metrics and revenue growth, the company faces several challenges. The significant increase in allowance for credit losses impacted earnings, contributing to the EPS miss. Additionally, potential interest rate fluctuations could affect borrowing costs and profitability.
Market saturation in key regions and economic factors affecting consumer spending in gaming and hospitality sectors represent ongoing risks. Regulatory changes in the gaming industry could also pose operational challenges for VICI and its tenants.
Despite these challenges, VICI’s diversified portfolio, long-term leases, and strong tenant relationships position the company to navigate market uncertainties while continuing to deliver value to shareholders.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.