VICI | Q2 2025

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Overview

• FFO of $0.60 misses by $0.05.

• Revenue of $1B (+4.5% Y/Y) beats by $8.1M.

KEY Takeaways

• AFFO per share came in at $0.60 for the quarter, up 4.9% year over year.

• VICI raised its full-year AFFO guidance, now expecting 4.4% growth in AFFO per share for 2025.

• G&A expenses remain among the lowest in the REIT sector, supporting strong operating efficiency.

• The company expanded its mezzanine loan on One Beverly Hills and continued funding the Red Rock project.

• Las Vegas saw a short-term dip in visitation, but high-end properties remain strong and long-term fundamentals are intact.

• Regional gaming markets are showing signs of renewed strength, supported by creative reinvestment and tax incentives.

NOTES

VICI Properties (VICI) put up another strong quarter, raising its full-year AFFO guidance for the year. AFFO per share came in at $0.60, up 4.9% from a year ago, and the company now expects to grow AFFO per share by 4.4% for the full year.

A big focus this quarter was the role of the dividend in driving long-term returns. CEO Ed Pitoniak pointed to research showing that dividend-paying stocks have historically delivered much stronger total returns than their low- or no-yield peers, and he made it clear that VICI is built for that world.

He framed the company’s total return engine as a three-part formula: a reliable dividend, growth from same-store rent escalators, and growth from new deals. The dividend is not just a payout—it’s part of the company’s broader compounding strategy.

Thanks to VICI’s scale, they’re able to fund most of their growth from retained cash flow (about $600 million a year) rather than constantly issuing new shares. That internal funding capacity, along with some of the lowest G&A expenses in the REIT world, gives them a lot of flexibility and makes the dividend feel especially well-defended.

That discipline also showed up in their capital allocation. VICI expanded its mezzanine loan on One Beverly Hills by another $150 million this quarter and deployed more capital to its Red Rock project in partnership with the North Fork Mono tribe.

Both moves fit the theme of long-term relationship building with high-quality operators—something VICI continues to prioritize. They also raised about $296 million through their ATM program (forward equity), which was used to repay part of the credit facility and help fund those new investments.

Las Vegas saw a bit of softening in the quarter—especially among lower-income tourists and Canadian visitors—but management sees this as a short-term breather after years of explosive growth. High-end properties are still running at over 90% occupancy, and there’s no sign that long-term capital projects are slowing down.

Beyond Vegas, regional casinos are seeing signs of life again, and operators across the board are getting more creative, especially with new tax incentives like bonus depreciation making it easier to justify big capital projects. VICI is paying attention to all of that, and while they’re not chasing deals, they’re ready to act when the right ones come along.

All in all, it was a pretty classic quarter for VICI: steady growth, disciplined capital allocation, and a focus on long-term shareholder returns. The dividend continues to be the centerpiece of that, but it’s backed by a disciplined business model that gives investors plenty of reasons to stick around.

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