Group 1 - The equity market serves as a significant mechanism for wealth creation or destruction over the long term through daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - VICI Properties (VICI) shares have increased by 12.5% year to date, outperforming the industry average of 1% [1] - The company benefits from long-term leases, a diversified portfolio, and a strong balance sheet, which enhances shareholder value [1] Financial Performance - In Q2 2025, VICI reported adjusted funds from operations (AFFO) per share of 60 cents, matching the Zacks Consensus Estimate and reflecting a 5% increase from the previous year [2][9] - Revenue growth was driven by sales-type leases and lease financing income, although higher interest expenses negatively impacted results [2] - The AFFO per share outlook for 2025 has been raised [2] Analyst Sentiment - Analysts are optimistic about VICI, with the Zacks Consensus Estimate for 2025 FFO per share revised upward by 1.3% to $2.38 [3] Portfolio Characteristics - VICI Properties boasts a high-quality portfolio with a 100% occupancy rate and an average lease term of approximately 40.2 years [4][5] - 79% of the company's rent is derived from publicly traded tenants, ensuring a stable revenue stream through long-term triple-net lease agreements [5] Diversification Strategy - The company has diversified its portfolio to include non-gaming experiential assets, reducing risk associated with gaming volatility [6] Financial Flexibility - As of June 30, 2025, VICI had $3 billion in liquidity and an annualized net leverage ratio of 5.3, indicating strong financial flexibility [7][9] - The company holds investment-grade credit ratings, enhancing its access to the debt market [10]

Group 1 - The article discusses the investment strategy focused on identifying undervalued Real Estate Investment Trusts (REITs) during market downturns, particularly in the context of the COVID-19 pandemic [1] - The investment approach emphasizes long-term horizons and contrarian strategies to uncover deep-value opportunities [1] - A specific target for VICI Properties is mentioned, with a desired dividend yield of approximately 6.5%, translating to a share price of around $26.50 based on current annualized dividends [3]

Core Viewpoint - Investing in high-yield dividend stocks, specifically EPR Properties and Vici Properties, can generate significant passive income through their stable and growing dividend payouts Group 1: EPR Properties - EPR Properties is a REIT focused on experiential real estate, owning a diversified portfolio that includes movie theaters, health and fitness properties, and entertainment spaces [2] - The company leases properties under long-term, triple net leases, providing stable cash flow as tenants cover all operating costs [3] - EPR expects to generate $5 to $5.16 per share of funds from operations (FFO) this year, covering its monthly dividend payment of $0.295 per share, or $3.54 annually [5] - The company invested $86.3 million in new properties in the first half of the year and plans to invest $200 million to $300 million in new properties this year [6][7] - EPR raised its dividend payout by 3.5% earlier this year, indicating growth potential [7] Group 2: Vici Properties - Vici Properties is another REIT that invests in experiential real estate, focusing on gaming, hospitality, and entertainment destinations, including iconic casinos on the Las Vegas Strip [8] - The company leases properties under long-term NNN contracts, with a weighted average remaining term of over 40 years, and 42% of leases are linked to inflation [9] - Vici currently pays $0.4325 per share quarterly in dividends, totaling $1.73 annually, with expected adjusted FFO of $2.35 to $2.37 per share this year [10] - The company has secured significant new investments, including a loan of up to $510 million for a casino development and a $450 million mezzanine loan for a luxury development [11] - Vici has raised its dividend for seven consecutive years, with a compound annual growth rate of 7.4%, outperforming the average of other REITs [12] Group 3: Investment Opportunity - Both EPR Properties and Vici Properties offer diversified and growing portfolios of experiential real estate, providing rising rental income streams to support dividends and further investments [13]

Financial Data and Key Metrics Changes - AFFO per share for the quarter was $0.60, an increase of 4.9% compared to $0.57 for the same quarter in 2024 [22] - The midpoint of the revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024 [10][23] - Total debt is $17.1 billion with a net debt to annualized second quarter adjusted EBITDA of approximately 5.1 times, within the target leverage range of 5 to 5.5 times [21] Business Line Data and Key Metrics Changes - VICI's same store NOI growth rate is over five times higher than the average projected rate for net lease REITs [11] - The company is generating earnings growth through a combination of same store earnings growth and new store external growth [10] Market Data and Key Metrics Changes - Las Vegas has experienced a period of normalization after years of record-breaking growth, with higher-end properties still running at over 90% occupancy levels [17] - The lower-end consumer has declined recently, prompting operators to adjust strategies to attract budget-conscious visitors [17] Company Strategy and Development Direction - The company emphasizes the importance of dividends in creating value for shareholders, focusing on total return through dividend return and earnings growth [7][8] - VICI is cultivating relationships with best-in-class operating partners and diversifying investments beyond gaming, including theme parks and youth sports [15][98] Management's Comments on Operating Environment and Future Outlook - Management remains confident in Las Vegas's long-term trajectory despite recent declines in visitation and gaming revenue [17] - The company believes its rental income is insulated from cyclical fluctuations due to long-term leases with corporate guarantees [18] Other Important Information - The company raised its AFFO guidance for 2025, now expecting between $2.5 billion and $2.52 billion, or between $2.35 and $2.37 per diluted common share [23] - VICI's capital markets independence allows it to generate earnings growth without significant reliance on external funding [12] Q&A Session Summary Question: What drove the decision to increase your mezzanine loan investment on the 1 Beverly Hills by $150 million? - The increase is part of a larger financing effort for a $6 billion project, with expectations of further commitments as construction financing progresses [26] Question: Are you seeing or expecting any fee simple opportunities from these relationships? - There is potential for fee simple opportunities, particularly with partners like Kane and Eldridge, as they expand their investments [28] Question: How have deal discussions been for sale-leaseback or other loans recently? - There have been no significant changes in deal discussions, with continued activity across various sectors [32] Question: What are your views on iGaming proliferation? - The company monitors iGaming developments closely, as it is important for many tenants and their overall credit [36] Question: Are there good opportunities for debt investments? - There appears to be more credit opportunities than real estate transaction opportunities currently [42] Question: How do you feel about the regional gaming markets? - The company remains excited about the gaming industry overall, with positive trends in regional markets [48] Question: What are your thoughts on the Caesars Forum Convention Center call option? - The company is assessing the opportunity and has time to evaluate its options regarding the asset [90] Question: How are you seeing the performance of Canadian properties amid declining visitation to Las Vegas? - Performance of Canadian assets has been strong, with indications that more Canadians are visiting local properties [72]

Financial Data and Key Metrics Changes - AFFO per share for the quarter was $0.60, an increase of 4.9% compared to $0.57 for the quarter ended June 30, 2024 [21] - The midpoint of the revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024 [9][23] - Total debt is $17.1 billion with a net debt to annualized second quarter adjusted EBITDA of approximately 5.1 times, well within the target leverage range of five to 5.5 times [20] Business Line Data and Key Metrics Changes - VICI's same store NOI growth rate is over five times higher than the average projected rate for net lease REITs [10] - The company is generating earnings growth through a combination of same store earnings growth and new store external growth [9] Market Data and Key Metrics Changes - Las Vegas has experienced a period of normalization after years of record-breaking growth, with higher-end properties still running at over 90% occupancy levels [16] - The lower-end consumer has declined recently, prompting operators of lower-tier properties to adjust strategies to attract budget-conscious visitors [16] Company Strategy and Development Direction - The company emphasizes the importance of dividends in creating value for shareholders, focusing on total return through dividend return and earnings growth [5][6] - VICI is cultivating relationships with best-in-class operating partners and diversifying its portfolio beyond gaming [13][101] - The company is committed to capital markets independence and disciplined cost management to defend dividends and grow earnings [11] Management's Comments on Operating Environment and Future Outlook - Management remains confident in Las Vegas's long-term trajectory despite recent declines in visitation and gross gaming revenue [15] - The company believes that the current moderation in Las Vegas is temporary and that long-term investments will continue to drive growth [18] - Management is optimistic about the potential for new generations of visitors and ongoing capital investments in Las Vegas [18] Other Important Information - The company raised its AFFO guidance for 2025, now expecting between $2.5 billion and $2.52 billion, or between $2.35 and $2.37 per diluted common share [22][23] - VICI has approximately $2.9 billion in total liquidity, allowing for continued investment opportunities [20] Q&A Session Summary Question: What drove the decision to increase your mezzanine loan investment on the 1 Beverly Hills by $150 million? - The increase is part of a larger financing effort for a $6 billion project, with expectations for further commitments as construction financing progresses [26][27] Question: Are you seeing or expecting any fee simple opportunities from these relationships? - There is potential for fee simple opportunities, particularly with partners like Kane and Eldridge, who have diverse investments [28] Question: How have deal discussions been for sale leaseback or other loans recently? - There have been no significant changes in deal discussions, with continued interest across various sectors [31][34] Question: What are your views on iGaming proliferation? - The company monitors iGaming developments closely, recognizing its importance to many tenants' overall credit [35][38] Question: Are there good opportunities for debt investments? - The company is focused on capital allocation and is seeing more credit opportunities than real estate transaction opportunities [42] Question: What are your thoughts on the Caesars Forum Convention Center call option? - The company is assessing the opportunity and has time to evaluate its options regarding the asset [92][94] Question: Which regional markets are you most interested in? - Las Vegas remains the top regional market, with interest in Reno and emerging markets like Virginia [114][115]

Financial Performance - Net income attributable to common stockholders for the three months ended June 30, 2025, was $865079 thousand, or $082 per basic and diluted share[16, 21] - Adjusted Funds From Operations (AFFO) for the three months ended June 30, 2025, was $630178 thousand, or $060 per basic and diluted share[23] - Adjusted EBITDA attributable to common stockholders for the three months ended June 30, 2025, was $822239 thousand[16, 23] - The company is raising AFFO guidance for the full year 2025 to between $2500 million and $2520 million, or between $235 and $237 per diluted common share[31, 32] Portfolio and Lease Agreements - VICI Properties owns 93 experiential assets, including 54 gaming properties and 39 other experiential properties across the United States and Canada[12] - The portfolio features approximately 127 million square feet and approximately 60300 hotel rooms[12] - The weighted average lease term is 402 years as of June 30, 2025[16] - Annualized contractual rent from MGM Master Lease is $7747 million[29] - Total annualized contractual rent and income from loans and securities is $33752 million[29] Capital Structure and Credit Metrics - Total debt as of June 30, 2025, was $17273519 thousand[16, 34] - Equity market capitalization was $34874190 thousand, with a share price of $3260[16, 34] - LQA Net Leverage Ratio was 52x[16, 35]

Core Insights - VICI Properties reported second-quarter adjusted funds from operations (AFFO) per share of 60 cents, matching the Zacks Consensus Estimate and reflecting a 5% increase year-over-year [1][10] - Total revenues reached $1.0 billion, exceeding the Zacks Consensus Estimate of $996.1 million, with a year-over-year growth of 4.6% [2][10] - The company raised its AFFO per share outlook for 2025 to a range of $2.35-$2.37, above the previous guidance of $2.33-$2.36 [8] Revenue Breakdown - Income from sales-type leases was $530.3 million, a 3.5% increase from the prior year [3] - Income from lease financing receivables, loans, and securities amounted to $440.3 million, rising 6.4% year-over-year [3] - Other income for the quarter was $19.5 million, up 1.1% from the previous year, while golf revenues declined 4.2% to $11.2 million [3] Expenses and Commitments - Quarterly interest expenses increased by 3.9% year-over-year to $213.8 million [4][10] - The company committed approximately $510 million to a delayed draw term loan facility for the North Fork Mono Casino & Resort development [4] - An additional commitment of $150 million was made into a mezzanine loan for the development of One Beverly Hills [5] Balance Sheet Position - As of June 30, 2025, VICI Properties had cash and cash equivalents of $233.0 million, down from $334.3 million at the end of Q1 2025 [6] - Total liquidity stood at $3.0 billion, including cash, estimated net proceeds from forward sale agreements, and availability under its revolving credit facility [6] - Total debt increased to approximately $17.3 billion, up from $17.2 billion in the previous quarter [7]

Core Insights - VICI Properties Inc. reported revenue of $1 billion for the quarter ended June 2025, reflecting a 4.6% increase year-over-year, while EPS decreased to $0.60 from $0.71 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $996.07 million by 0.53%, but the company did not deliver an EPS surprise as the consensus EPS estimate was also $0.60 [1] Revenue Breakdown - Other income was reported at $19.54 million, slightly above the average estimate of $19.5 million, marking a year-over-year increase of 1.1% [4] - Golf revenues totaled $11.19 million, below the estimated $11.52 million, representing a 4% decline compared to the previous year [4] - Income from sales-type leases was $530.35 million, slightly below the average estimate of $530.83 million, with a year-over-year increase of 3.5% [4] - Income from lease financing receivables, loans, and securities reached $440.26 million, surpassing the estimated $436.44 million, showing a 6.4% increase year-over-year [4] Stock Performance - VICI Properties' shares returned -0.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - VICI Properties Inc. reported quarterly funds from operations (FFO) of $0.6 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.57 per share a year ago [1] - The company posted revenues of $1 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 0.53%, compared to $957 million in the same quarter last year [2] - VICI Properties shares have increased approximately 12.5% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] Group 2 - The current consensus FFO estimate for the upcoming quarter is $0.60 on revenues of $997.1 million, and for the current fiscal year, it is $2.38 on revenues of $3.99 billion [7] - The REIT and Equity Trust - Other industry, to which VICI Properties belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8]