VICI Properties Inc (VICI) Q3 2025 Earnings Call Highlights: Strong AFFO Growth and Strategic ...

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AFFO per Share: $0.60 for Q3 2025, an increase of 5.3% from $0.57 in Q3 2024. General and Administrative Expenses: $16.3 million for the quarter, 1.6% of total revenues. Dividend: $0.45 per share, a 4% increase from the prior dividend. Total Debt: $17.1 billion. Net Debt to Adjusted EBITDA: Approximately 5 times. Weighted Average Interest Rate: 4.47%. 2025 AFFO Guidance: $2.36 to $2.37 per diluted common share, representing a 4.6% year-over-year growth.

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Release Date: October 31, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

VICI Properties Inc (NYSE:VICI) reported a 5.3% increase in AFFO per share for Q3 2025 compared to Q3 2024, demonstrating strong earnings growth. The company successfully maintained a low G&A expense ratio of 1.6% of total revenues, highlighting operational efficiency. VICI Properties Inc (NYSE:VICI) announced the addition of a new tenant, Clairvest, which will diversify its tenant base and strengthen its portfolio. The company declared a dividend increase of 4%, marking the eighth consecutive annual dividend increase, reflecting a commitment to returning value to shareholders. VICI Properties Inc (NYSE:VICI) maintains a strong balance sheet with a net debt to adjusted EBITDA ratio at the low end of its target range, indicating financial stability.

Negative Points

The market environment remains uncertain, with recent volatility affecting gaming operators and real estate investment trusts (REITs). Concerns were raised about the potential impact of increased rent obligations on tenants, which could pose risks if not managed carefully. The company faces challenges in expanding its presence in the Las Vegas locals market due to competitive dynamics and existing operators. VICI Properties Inc (NYSE:VICI) is exploring new investment opportunities in university sports infrastructure, which involves navigating complex and evolving landscapes. The decision by MGM to withdraw from the New York City casino license bidding process could impact VICI Properties Inc (NYSE:VICI)'s strategic plans for its Yonkers asset.

Q & A Highlights

Q: Can you discuss how often lease amendments come up with your tenants and how you approach those conversations? A: Edward Pitoniak, CEO: We focus on understanding challenges and finding solutions that deliver the right outcomes for us and our partners. John Payne, President and COO, added that having a smaller number of tenants allows for more detailed discussions about strategic growth or handling business issues.

Story Continues

Q: Are there any non-gaming conversations you're having, particularly regarding university-level athletic facilities? A: John Payne, President and COO: University sports are undergoing radical change, and we are discussing infrastructure investments with them. We are exploring how our capital can accelerate growth in arenas, stadiums, and other facilities. Gaming remains our top focus, but university sports present a significant opportunity.

Q: What is your expectation regarding competitive bidding in gaming M&A processes, and will VICI participate? A: David Kieske, CFO: We see a lot in gaming and expect to participate depending on various factors. Gaming M&A is complex, involving multiple parties and long-term leases, but we hope to remain active and continue growing.

Q: With the Claves transaction, do you expect to do more deals with them, and are they looking to expand in the US? A: John Payne, President and COO: We hope to continue growing with Claves, as they are creative and have seasoned operators. We are excited to have them as a tenant and look forward to expanding our portfolio with them.

Q: How do you view the MGM decision to withdraw from the New York City license bidding process, and what are the implications for your Yonkers asset? A: Edward Pitoniak, CEO: MGM's decision was a sound capital allocation choice based on the evolving New York landscape. Without a Manhattan-based casino, the remaining bidders would compete for the same regional market, making it unclear if the economics would support the required capital. We are open to partnering with other bidders if the opportunity has strong capital fundamentals.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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