VICI Properties' Q2 AFFO Meets Estimates, Revenues Beat

VICI Properties VICI reported second-quarter adjusted funds from operations (AFFO) per share of 60 cents, in line with the Zacks Consensus Estimate. Moreover, the figure increased 5% from the prior-year quarter.

Results reflect a year-over-year rise in revenues, mainly driven by income from sales-type leases and income from lease financing receivables, loans and securities. However, higher interest expenses in the quarter acted as a dampener. The company raised its AFFO per share outlook for 2025.

VICI Properties generated total revenues of $1.0 billion, which surpassed the Zacks Consensus Estimate of $996.1 million. The top line rose 4.6% on a year-over-year basis.

VICI: Behind the Headlines

In the reported quarter, VICI Properties’ income from sales-type leases was $530.3 million, increasing 3.5% from the year-ago quarter.

Its income from lease financing receivables, loans and securities was $440.3 million, rising 6.4% year over year.

Other income of $19.5 million in the second quarter increased 1.1% from the year-ago quarter. However, golf revenues declined 4.2% to $11.2 million.

VICI Properties’ quarterly interest expenses were up 3.9% year over year to $213.8 million.

In the second quarter, the company committed around $510 million to a delayed draw term loan facility for the development of North Fork Mono Casino & Resort near Madera, CA, to be developed and managed by affiliates of Red Rock Resorts.

In June, VICI also increased its commitment by $150 million into a mezzanine loan with Cain International and Elridge Industries for the development of One Beverly Hills in Beverly Hills, CA.

Balance Sheet Position of VICI

VICI Properties exited the second quarter with cash and cash equivalents of $233.0 million, down from $334.3 million as of March 31, 2025.

As of June 30, 2025, VICI Properties’ liquidity totaled $3.0 billion, including cash and cash equivalents, $621.5 million of estimated net proceeds available under its forward sale agreements and approximately $2.2 billion of availability under its revolving credit facility.

The company had approximately $17.3 billion in total debt as of June 30, 2025, up from $17.2 billion in the previous quarter.

VICI’s 2025 Outlook Raised

VICI Properties now expects AFFO per share in the range of $2.35-$2.37, above the prior guidance of $2.33-$2.36. The Zacks Consensus Estimate presently stands at $2.38, higher than the projected range.

VICI's Zacks Rank

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

VICI Properties Inc. Price, Consensus and EPS Surprise

VICI Properties Inc. price-consensus-eps-surprise-chart | VICI Properties Inc. Quote

Performance of Other REITs

Digital Realty Trust DLR reported second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO also increased 13.3% year over year.

Results reflected steady leasing momentum with better rental rates amid rising demand. DLR raised its 2025 core FFO guidance range.

Alexandria Real Estate Equities, Inc. ARE reported second-quarter 2025 AFFO per share of $2.33, topping the Zacks Consensus Estimate of $2.29. This compares unfavorably to the AFFO of $2.36 reported in the prior year.

Results reflected decent leasing activity and rental rate growth. However, lower occupancy and higher interest expenses year over year undermined the results to some extent.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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