VICI Properties' Q1 AFFO Meets Estimates, Revenues Rise Y/Y

VICI Properties VICI reported first-quarter adjusted funds from operations (AFFO) per share of 58 cents, in line with the Zacks Consensus Estimate. Moreover, the figure increased 3.6% 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 $984.2 million, which missed the Zacks Consensus Estimate of $985.6 million. The top line rose 3.4% on a year-over-year basis.

Behind the Headlines

In the reported quarter, VICI Properties’ income from sales-type leases was $528.6 million, increasing 3.1% from the year-ago quarter.

Its income from lease financing receivables, loans and securities was $426.5 million, rising 4.2% year over year.

Other income of $19.5 million in the first quarter increased 1% from the year-ago quarter. However, golf revenues declined 4.8% to $9.6 million.

VICI Properties’ quarterly interest expenses were up 2.1% year over year to $209.3 million.

In February 2025, the company announced the establishment of its strategic relationship with Cain International and Eldridge Industries through a $300 million mezzanine loan investment related to the One Beverly Hills development project.

Balance Sheet Position

VICI Properties exited the first quarter with cash and cash equivalents of $334.3 million, down from $524.6 million as of Dec. 31, 2024.

As of March 31, 2024, VICI Properties’ liquidity totaled $3.2 billion, including cash and cash equivalents, $624.6 million of estimated net proceeds available under its forward sale agreements, and approximately $2.3 billion of availability under its revolving credit facility.

The company had approximately $17.2 billion in total debt as of March 31, 2025, up from $17.1 billion in the previous quarter.

2025 Outlook Raised

VICI Properties now expects AFFO per share in the range of $2.33-$2.36, above the prior guidance of $2.32-$2.35. The Zacks Consensus Estimate presently stands at $2.33, within the projected range.

Currently, the company carries a Zacks Rank #2 (Buy). 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 first-quarter 2025 core FFO per share of $1.77, beating the Zacks Consensus Estimate of $1.73. The FFO also increased 6% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Results reflected steady leasing momentum with better rental rates amid rising demand. However, higher operating expenses undermined the performance to an extent. DLR raised its 2025 core FFO guidance range.

Alexandria Real Estate Equities, Inc. ARE reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $2.30, beating the Zacks Consensus Estimate of $2.28. This compares unfavorably to the AFFO of $2.35 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. ARE has revised its 2025 outlook.

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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