Vici Properties ((VICI)) has held its Q3 earnings call. Read on for the main highlights of the call.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Vici Properties’ recent earnings call exuded a generally optimistic sentiment, underscored by notable growth in AFFO per share and a steady increase in dividends. The company also highlighted its strategic tenant diversification. Despite some concerns regarding the Las Vegas market and MGM’s withdrawal from the New York City license process, Vici’s strong financial performance and strategic positioning were focal points of positivity.
AFFO Per Share Growth
Vici Properties reported a 5.3% increase in AFFO per share for Q3 2025 compared to the same quarter in 2024. This growth underscores the efficiency of Vici’s triple net model, which continues to drive financial performance and shareholder value.
Dividend Increase
The company declared a dividend of $0.45 per share, marking a 4% increase from the previous amount. This announcement represents the eighth consecutive annual increase, reflecting Vici’s commitment to returning value to its shareholders.
New Tenant Addition
Vici announced the addition of its 14th tenant, Clairvest, in connection with an agreement with MGM. This move diversifies Vici’s tenant roster, enhancing its strategic positioning in the market.
Strong Performance of The Venetian
The Venetian reported record hotel revenues and gaming volumes over the summer, showcasing strong performance despite challenges in the market. This success highlights the resilience and appeal of Vici’s assets.
Improved 2025 AFFO Guidance
Vici Properties updated its AFFO guidance for 2025, projecting between $2.51 billion and $2.52 billion, or $2.36 to $2.37 per diluted common share. This represents a 4.6% year-over-year growth, demonstrating confidence in continued financial strength.
Las Vegas Market Concerns
There are concerns in the Las Vegas market due to decreased Canadian travel and reduced capacity from Spirit Airlines. However, operators remain optimistic about improving trends in the near future.
MGM’s Withdrawal from New York City License
MGM’s decision to withdraw from the New York City license bidding process could impact the Yonkers asset, introducing potential challenges for Vici.
REIT Market and Gaming Sector Challenges
The REIT and gaming sectors faced a tough week, with market volatility affecting Vici’s stock performance. Despite these challenges, Vici remains focused on strategic growth and resilience.
Forward-Looking Guidance
Vici Properties provided updated guidance, projecting AFFO for the year ending December 31, 2025, to be between $2.51 billion and $2.52 billion. This update signifies a year-over-year AFFO per share growth of 4.6%. The company emphasized its disciplined growth strategy, focusing on high-quality investments and exploring new opportunities, including non-gaming sectors like university sports infrastructure.
In conclusion, Vici Properties’ earnings call conveyed an overall optimistic sentiment, driven by strong financial performance and strategic initiatives. Despite challenges in the Las Vegas market and MGM’s withdrawal from a key license process, Vici’s commitment to growth and diversification positions it well for future success.