VICI Properties Q3 Earnings Call Highlights

Key Points

• VICI delivered solid Q3 results, with revenue up 5.8% and AFFO per share rising 4.3% to $0.62. The company raised its 2026 AFFO-per-share guidance to $2.47–$2.48 and increased its quarterly dividend 2.2% to $0.46.
• VICI authorized its first share repurchase program of up to $2 billion, though management said buybacks will be opportunistic and weighed against other investment opportunities. The company ended the quarter with approximately $2.5 billion in liquidity and net debt leverage of about 4.8 times adjusted EBITDA.
• Management continues to assess the Caesars regional lease after recording $313 million of credit-loss allowances tied to Caesars, but has not decided whether to retain, modify or sell related leases and properties. VICI also expects continued tenant diversification, with Highfield becoming its 17th tenant after its Alberta gaming transaction closes.

VICI Properties NYSE: VICI reported third-quarter 2026 revenue growth of 5.8% and adjusted funds from operations, or AFFO, per share growth of 4.3%, while raising its full-year outlook and authorizing a share repurchase program of up to $2 billion.

Chief Executive Officer Ed Pitoniak said AFFO per share totaled $0.62 during the quarter, compared with $0.60 a year earlier. The company deployed $221 million during the period into previously announced investments intended to contribute to income growth in future quarters.

Pitoniak said he was disappointed by the company’s share-price performance during the quarter and year to date, citing broad pressure on net lease REITs, questions around VICI’s ability to generate accretive growth amid current capital-market conditions, and uncertainty surrounding the Caesars regional lease.

Capital Allocation and Share Repurchases

The company introduced its first share repurchase authorization, allowing for the repurchase of up to $2 billion of stock. Management emphasized that the authorization is not a commitment to buy a specified amount of shares or to act on a prescribed timeline.

Pitoniak said VICI would consider repurchases if it has uncommitted investable capital and determines that buying stock is the best use of funds relative to other opportunities. Potential funding sources include retained cash flow, repayments from the company’s loan portfolio and asset sales.

Chief Financial Officer David Kieske said most of the company’s current free cash flow is allocated to loan commitments. Still, he described the buyback authorization as another capital-allocation tool that could be used opportunistically.

Management said it remains open to evaluating asset sales, joint ventures, private capital structures, term loans and other forms of financing. Pitoniak noted that private capital pools, including insurance-related capital, may place greater value on long-duration distributed income than public equity markets currently do.

Balance Sheet and Updated Outlook

During August, VICI refinanced its 2026 debt maturities through a $1.75 billion public bond offering. The offering included $900 million of 5.4% senior unsecured notes due in 2031 and $850 million of 5.75% senior unsecured notes due in 2036.

The company settled $1.1 billion of forward-starting interest-rate swaps and Treasury locks associated with the issuance, receiving $20 million in proceeds. Kieske said the settlement reduced the all-in interest rate on the notes to approximately 5.42% from approximately 5.57%.

• Total debt was $17.2 billion at quarter-end.
• Net debt to annualized third-quarter adjusted EBITDA was approximately 4.8 times, below VICI’s targeted range of 5 times to 5.5 times.
• The weighted average interest rate was 4.57%, adjusted for hedge activity, with a weighted average maturity of 6 years.
• Total liquidity was approximately $2.5 billion, including $270 million of cash and $2.2 billion available under the revolver.

VICI raised its 2026 AFFO guidance to between $2.695 billion and $2.705 billion, or $2.47 to $2.48 per diluted common share. The new per-share range raises the low end of prior guidance by $0.02 and the high end by $0.01. At the midpoint, the company expects 4% year-over-year AFFO-per-share growth.

The company declared a quarterly dividend of $0.46 per share, equivalent to an annualized dividend of $1.84 per share. Kieske said the dividend represented a 2.2% year-over-year increase and VICI’s ninth consecutive year of dividend growth. The AFFO payout ratio is approximately 75% based on the midpoint of 2026 guidance.

Tenant Diversification and Investment Pipeline

President and Chief Operating Officer John Payne said VICI continued to diversify its tenant base. In connection with Century Casinos’ agreement to sell the operations of Century Mile and Century Downs in Alberta to Highfield Investment Group, VICI agreed to establish a new triple-net master lease with Highfield.

The Highfield lease is expected to carry initial annual base rent of CAD 10.7 million, accompanied by a corresponding reduction under the Century master lease. VICI said aggregate rent collected will not change. Upon closing, Highfield will become the company’s 17th tenant.

Payne said VICI expects to have added four tenants in 2026: Clairvest, Golden Entertainment, Club Med and Highfield. He said the additions span regional gaming, the Las Vegas locals market, Caribbean hospitality and Canadian gaming.

Management said its investment pipeline remains active across gaming, hospitality, entertainment, sports, health and wellness, though underwriting standards have become more selective in response to the cost of capital. Payne said VICI continues to evaluate greenfield and build-to-suit opportunities, while carefully considering the operator, market and appropriate level of capital investment.

Caesars Lease and Portfolio Management

Pitoniak said the company is analyzing the Caesars regional lease through multiple valuation approaches and evaluating what lease structures and related actions could produce the greatest aggregate value for shareholders. He said VICI has not yet determined what actions it may take.

Management described potential choices as involving both lease management and portfolio management, including retaining, modifying or potentially selling leases and associated properties. The company said it regularly evaluates its broader portfolio and remains in discussion with tenants regarding existing assets as well as future growth opportunities.

Kieske said a higher current expected credit loss, or CECL, allowance was driven in part by Caesars’ credit-rating downgrade following its merger and by GAAP accounting requirements tied to the fully extended lease term, which runs through 2055. He said the accounting charge was non-cash and was not based on an assumption regarding the preferred economic outcome for shareholders.

VICI reported total credit-loss allowances of $458 million, including $313 million attributable to Caesars, according to Kieske. Other changes included a loan on non-accrual status and an increase related to One Beverly Hills.

About VICI Properties (NYSE:VICI)

VICI Properties Inc NYSE: VICI is a real estate investment trust that owns and manages experiential properties, with a primary focus on gaming, hospitality and entertainment destinations. The company's portfolio includes the real estate associated with well-known casinos, resorts, racetracks and golf facilities.

VICI generally leases its properties to gaming and entertainment operators through long-term, triple-net lease agreements. Its tenants operate the properties and are typically responsible for property-level expenses such as maintenance, insurance and taxes, while VICI focuses on owning, maintaining and expanding its real estate portfolio.

The company was established in 2017 as part of the restructuring of Caesars Entertainment Operating Company.

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