Core Viewpoint - Vici Properties is a real estate investment trust (REIT) that specializes in owning casino properties, benefiting from the cyclical nature of the gaming industry while providing a stable income stream through its significant dividend yield [2][4][8]. Group 1: Business Model and Resilience - Vici Properties operates as a landlord rather than a casino operator, making its business model less cyclical compared to casino operations [4][7]. - The value of casino properties remains stable even during economic downturns, as evidenced during the COVID-19 pandemic when tenants continued to pay rent [6][5]. - The REIT's ability to increase dividends during challenging times demonstrates its financial resilience and commitment to returning cash to investors [9][6]. Group 2: Dividend Yield and Financial Strength - Vici Properties offers a dividend yield of 5.5%, significantly higher than the S&P 500 average of 1.2% and the average REIT yield of 3.8% [8]. - The company has consistently increased its dividend since it began paying one in 2018, indicating a strong focus on shareholder returns [9][10]. - Vici's balance sheet received an upgrade from Moody's, moving to investment grade, which will help reduce interest costs associated with its debt [11]. Group 3: Growth Potential - Vici Properties has a long-term growth strategy that includes diversifying its portfolio beyond gambling and providing loans for construction projects [14][15]. - The average lease term for Vici's properties is 40 years, with 90% of leases having automatic rent increases tied to inflation, ensuring steady income growth [15]. - Future acquisitions, whether in casinos or other assets, are expected to enhance growth potential, contributing to increased dividend payouts [15][14].

Core Viewpoint - Vici Properties is positioned as a resilient REIT, demonstrating stability and growth potential despite broader market challenges faced by the REIT sector due to rising interest rates [1][2][10] Group 1: Market Context - Many REITs faced difficulties in 2022 and 2023 due to increased interest rates, which raised acquisition costs and made dividends less attractive compared to risk-free investments [1] - The Federal Reserve's anticipated rate cuts in 2024 and 2025 may lead to a resurgence in REIT investments, particularly those with high yields [2] Group 2: Vici Properties' Business Model - Vici Properties operates a stable business model by owning casinos and entertainment properties, which allows it to consistently outperform the 10-Year Treasury yield of 4.4% [3] - The company has established long-term leases with major tenants like Caesars Entertainment and MGM Resorts, which are tied to the Consumer Price Index (CPI), ensuring rent increases with inflation [6][7] Group 3: Financial Performance - Vici has maintained a perfect occupancy rate of 100% since its IPO in 2018, with its Adjusted Funds From Operations (AFFO) per share increasing from $1.82 in 2021 to an expected $2.32-$2.35 in 2025 [8][9] - The company has consistently raised its dividends annually, with dividends per share increasing from $1.38 in 2021 to an expected $1.695 in 2024, indicating room for future increases [9] Group 4: Investment Appeal - Vici's stock is currently valued at $31, translating to a forward dividend yield of 5.5%, which is attractive for income-oriented investors [9] - The company is characterized as an "evergreen investment," suitable for those seeking consistent income during uncertain economic times [10]

Company Overview - VICI Properties is a unique REIT specializing in casino real estate, holding a dominant position in the sector due to key tenants like Caesars Palace and MGM Resorts, which provides it with a quasi-monopoly status [1]. Investment Criteria - The company is characterized by growth in revenue, earnings, and free cash flow, making it an attractive investment opportunity [1]. - VICI Properties has excellent growth prospects, which enhances its appeal to investors [1]. - The stock is noted for favorable valuations, which is a critical factor for potential investors [1]. Financial Characteristics - The company is preferred for its steadily growing revenue and high free cash flow margins, indicating strong financial health [1]. - VICI Properties is also recognized for its dividend stocks and generous share repurchase programs, which are attractive to income-focused investors [1].

Core Viewpoint - Vici Properties is a leading real estate investment trust (REIT) specializing in experiential real estate, particularly in the gaming and hospitality sectors, with a strong focus on generating stable rental income and increasing dividends for investors [1][3][9] Company Performance - In 2024, Vici Properties reported adjusted funds from operations (FFO) of $2.4 billion, or $2.26 per share, reflecting increases of 8.4% and 5.1% respectively, which enabled a 4.2% dividend increase, marking the seventh consecutive increase since its public listing in 2018 [3] - The company has achieved a peer-leading annual dividend growth rate of 7%, significantly higher than the 2.2% average of other net lease-focused REITs [3] Rental Income and Investments - Vici Properties benefits from rising rental income, with 40% of its leases linked to inflation, allowing it to capture higher rental increases amid elevated inflation [4] - The company announced $1.1 billion in new investments last year, with a weighted average initial yield of 8.1%, contributing to incremental income and future growth potential [4] Strategic Growth Initiatives - In 2025, Vici Properties established a strategic relationship with Cain and Eldridge Industries to explore unique experiential real estate investments, starting with a $300 million mezzanine loan for the development of One Beverly Hills [5][6] - The REIT is also collaborating with partners to identify additional investment opportunities and has committed over $720 million to Great Wolf Resorts across multiple transactions [6] Future Opportunities - Vici Properties has agreed to provide a construction loan of up to $105 million for a Margaritaville Resort in Kansas City, along with options to purchase related properties [8] - The company is set to invest up to $700 million in The Venetian Resort for extensive renovations, with rent adjustments reflecting the increased investment [8] Investment Outlook - Vici Properties has consistently provided a lucrative and steadily rising income stream since going public, positioning itself as an excellent long-term investment opportunity for those seeking passive income and potential price appreciation [9]

Core Viewpoint - Dividend stocks, particularly Vici Properties, are seen as low-risk investments with a strong historical performance, outperforming non-payers significantly over the decades [1]. Company Overview - Vici Properties is a real estate investment trust (REIT) focused on gaming and experiential properties, currently offering a dividend yield of 5.6% [2]. - The REIT owns a large portfolio of iconic casinos and experiential properties, including Caesars Palace and the Venetian Resort in Las Vegas, as well as bowling centers and sports facilities [3]. Financial Stability - Vici Properties operates under long-term triple net leases, providing stable rental income as tenants cover all operating costs [4]. - The REIT pays out approximately 75% of its stable cash flow in dividends, allowing for a cushion against tenant financial issues while retaining cash for new investments [5]. Dividend Growth - Vici Properties has consistently raised its dividend for seven consecutive years, achieving a compound annual growth rate of 7%, significantly higher than the average growth rate of 2.2% among similar REITs [6]. Growth Opportunities - The REIT has the right of first refusal to acquire several properties from Caesars and other tenants, indicating potential for future acquisitions [7]. - Vici Properties is also involved in funding the development of various experiential properties, creating an embedded acquisition pipeline [8]. - Recent strategic partnerships, such as the $300 million investment in One Beverly Hills, highlight the REIT's commitment to expanding its portfolio [9]. Future Investment Potential - The REIT identifies numerous future investment opportunities, including indoor waterparks, sports venues, and theme parks, which could further enhance its income sources [10]. - Vici Properties maintains a solid investment-grade balance sheet, providing liquidity for new investments that support dividend growth [11]. Long-term Outlook - Vici Properties is expected to continue its trend of increasing dividends, contributing to long-term wealth growth for investors [12].

Financial Data and Key Metrics Changes - AFFO per share for Q4 2024 was $0.57, an increase of 3.6% compared to $0.55 for Q4 2023 [33] - For the full year 2024, AFFO per share was $2.26, an increase of 5.1% compared to $2.15 for 2023 [33] - The company achieved a net debt to annualized fourth quarter adjusted EBITDA of approximately 5.3 times, within the target leverage range of 5 to 5.5 times [32] Business Line Data and Key Metrics Changes - The company committed approximately $1.1 billion of capital in 2024 at an initial yield of 8.1% [19] - Significant investments were made in the Venetian, with up to $700 million committed through a partner property growth fund strategy [20] Market Data and Key Metrics Changes - Las Vegas tourism hit records in 2024, with 58 million airline passengers and visitation increasing 2% year-over-year to approximately 42 million [22] - Operators in Las Vegas announced nearly $1 billion of investment in real estate since Q4 2024, reflecting a strong conviction in high-quality experiences [24] Company Strategy and Development Direction - The company initiated a strategic relationship with Cain International and Eldridge Industries, focusing on experiential investments [9][14] - The partnership aims to identify and pursue differentiated place-based experiences, enhancing the company's growth strategy [10][16] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 did not present a plentiful flow of high-quality real estate acquisition opportunities, but there were compelling development opportunities [40] - The company expects a busy start to 2025, with a wide funnel of potential investments in experiential and casino gaming spaces [44] Other Important Information - The company received an investment-grade credit rating from S&P, Fitch, and Moody's, enhancing access to capital [29] - The company has approximately $3.3 billion in total liquidity, including $525 million in cash and $2.4 billion available under its revolving credit facility [32] Q&A Session Summary Question: What does deal flow look like in 2024 compared to prior years? - Management indicated that 2024 did not see many high-quality real estate acquisition opportunities, but there were compelling development opportunities available [40][41] Question: Any comments on cash yields for various asset categories? - Management noted limited visibility on cash yields for high-quality assets on the strip due to recent trading activity and market volatility [47][50] Question: How does development funding compare to acquisitions? - Management expressed confidence in the return of capital from development funding, emphasizing the potential for ongoing partnerships with Cain and Eldridge [55][56] Question: Update on the licensing process in New York? - Management acknowledged progress in the New York licensing process but noted uncertainty regarding the outcome for the MGM property [115][116] Question: Insights on the competitive landscape for capital providers? - Management highlighted a cultural union with Cain and Eldridge, which positions the company favorably as a partner of choice for experiential investments [79]

Core Insights - VICI Properties reported fourth-quarter adjusted funds from operations (AFFO) per share of 57 cents, consistent with the Zacks Consensus Estimate, and a 3.6% increase from the prior-year quarter [1][3] - The company generated total revenues of $976.1 million, surpassing the Zacks Consensus Estimate by 0.1%, and reflecting a year-over-year increase of 4.7% [3] - VICI Properties expects AFFO per share in the range of $2.32-$2.35 for 2025, with the current Zacks Consensus Estimate at $2.31, which is below the projected range [7] Revenue Breakdown - Income from sales-type leases was $524.7 million, a 3.6% increase year-over-year [4] - Income from lease financing receivables, loans, and securities reached $420.7 million, rising 6% year-over-year [4] - Other income in the fourth quarter was $19.5 million, up 6.5% from the previous year, while golf revenues increased by 5.7% to $11.2 million [4] Financial Position - As of December 31, 2024, VICI Properties had cash and cash equivalents of $524.6 million, up from $355.7 million as of September 30, 2024 [5] - The company's total liquidity amounted to $3.3 billion, which includes cash, estimated net proceeds from forward sale agreements, and availability under its revolving credit facility [5] - Total debt remained unchanged at approximately $17.1 billion as of December 31, 2024 [6] Performance Comparison - Host Hotels & Resorts, Inc. reported fourth-quarter AFFO per share of 44 cents, exceeding the Zacks Consensus Estimate of 40 cents, with no change from the prior-year quarter [8] - Healthpeak Properties, Inc. reported fourth-quarter adjusted FFO per share of 46 cents, beating the Zacks Consensus Estimate by a penny, with results reflecting better-than-anticipated revenues [10][11]

Core Viewpoint - Vici Properties reported strong revenue growth in Q4 2024 but fell short of earnings expectations, primarily due to credit-related adjustments impacting net income [2][6]. Financial Performance - Revenue for Q4 2024 reached $976.1 million, exceeding analysts' expectations of $970 million, and reflecting a year-over-year increase of 4.7% from $931.9 million in Q4 2023 [3][6]. - Adjusted earnings per share (EPS) fell to $0.58, missing the anticipated $0.68, marking a decline of 19.2% from $0.72 in Q4 2023 [3][6]. - Adjusted funds from operations (AFFO) increased to $0.57 per share, up by 3.6% from $0.55 in Q4 2023 [3][6]. Business Overview - Vici Properties operates as a real estate investment trust focusing on gaming, hospitality, and entertainment properties, utilizing long-term triple net leases to ensure predictable revenue streams [4]. - Major tenants, including Caesars and MGM, significantly contribute to the company's rental income [4]. Strategic Initiatives - The company has been expanding through strategic partnerships and investments, committing $1.1 billion to various ventures with a weighted yield of 8.1% [5][7]. - All properties remained fully leased with a weighted average lease term of 40.7 years, providing a stable revenue floor [7]. Challenges and Risks - The decline in net income per share was primarily due to a $157.7 million adjustment in the Current Expected Credit Loss (CECL) allowance, reflecting market volatility [6][8]. - Macroeconomic conditions, including interest rate fluctuations, could impact future revenue streams and necessitate strategic adjustments in capital allocation [8]. Future Outlook - Vici Properties has set an AFFO target for 2025 between $2.455 billion and $2.485 billion, translating to AFFO per diluted share of $2.32 to $2.35, indicating a stable outlook [9].

Core Insights - VICI Properties Inc. reported revenue of $976.05 million for the quarter ended December 2024, reflecting a 4.7% increase year-over-year and a slight surprise of +0.10% over the Zacks Consensus Estimate of $975.09 million [1] - The company's EPS for the quarter was $0.57, which is lower than the $0.72 reported in the same quarter last year, and aligned with the consensus EPS estimate [1] Revenue Breakdown - Golf revenues reached $11.15 million, exceeding the estimated $10.88 million, marking a year-over-year increase of +5.7% [4] - Other income was reported at $19.47 million, slightly above the average estimate of $19.18 million, representing a +6.5% change year-over-year [4] - Income from lease financing receivables and loans was $420.74 million, surpassing the estimate of $419.65 million, with a +6% year-over-year change [4] - Income from sales-type leases was $524.69 million, slightly below the estimated $525.33 million, but still showing a +3.7% increase compared to the previous year [4] Stock Performance - Over the past month, shares of VICI Properties have returned +3.5%, outperforming the Zacks S&P 500 composite's +2.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

VICI Properties Inc. (VICI) came out with quarterly funds from operations (FFO) of $0.57 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.55 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post FFO of $0.56 per share when it actually produced FFO of $0.57, delivering a surprise of 1.79%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.VICI Properties, which ...