VICI(VICI) - 2025 Q2 - Quarterly Report

markdown [Explanatory Note](index=3&type=section&id=Explanatory%20Note) [Explanatory Note](index=3&type=section&id=Explanatory%20Note) This report combines the quarterly filings for VICI Properties Inc., a Real Estate Investment Trust (REIT), and its operating partnership, VICI Properties L.P., providing a holistic view as management operates them as a single enterprise - This is a combined quarterly report for VICI Properties Inc. (a REIT) and VICI Properties L.P. (the operating partnership)[7](index=7&type=chunk) - VICI Properties Inc. is the sole owner of the general partner of VICI L.P. and owns approximately **98.9%** of the operating partnership units (VICI OP Units) as of June 30, 2025[9](index=9&type=chunk) - The primary differences in the consolidated financial statements between VICI Inc. and VICI L.P. are in cash and cash equivalents, stockholders' equity/partners' capital, non-controlling interests, and golf operations[17](index=17&type=chunk) [PART I. FINANCIAL INFORMATION](index=7&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for both VICI Properties Inc. and VICI Properties L.P. for the three and six months ended June 30, 2025, including balance sheets, statements of operations, and cash flows, followed by detailed notes [Financial Statements of VICI Properties Inc. (Unaudited)](index=7&type=section&id=Financial%20Statements%20of%20VICI%20Properties%20Inc.%20(Unaudited)) For the six months ended June 30, 2025, VICI Properties Inc. reported total revenues of **$1.99 billion** and net income attributable to common stockholders of **$1.41 billion**, or **$1.33** per diluted share, with total assets at **$46.05 billion** and total debt of **$16.92 billion** VICI Properties Inc. - Key Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $1,001.3M | $957.0M | | Net Income Attributable to Common Stockholders | $865.1M | $741.3M | | Diluted EPS | $0.82 | $0.71 | VICI Properties Inc. - Key Financials (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $1,985.5M | $1,908.5M | | Net Income Attributable to Common Stockholders | $1,408.7M | $1,331.3M | | Diluted EPS | $1.33 | $1.28 | VICI Properties Inc. - Balance Sheet Summary | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $46,054.0M | $45,368.9M | | Debt, net | $16,922.3M | $16,732.9M | | Total Stockholders' Equity | $27,444.1M | $26,951.8M | [Financial Statements of VICI Properties L.P. (Unaudited)](index=13&type=section&id=Financial%20Statements%20of%20VICI%20Properties%20L.P.%20(Unaudited)) For the six months ended June 30, 2025, VICI Properties L.P. reported total revenues of **$1.96 billion** and net income attributable to partners of **$1.42 billion**, with total assets of **$45.97 billion** VICI Properties L.P. - Key Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $990.1M | $945.3M | | Net Income Attributable to Partners | $871.9M | $746.2M | | Diluted EPU | $0.82 | $0.71 | VICI Properties L.P. - Balance Sheet Summary | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $45,967.5M | $45,285.8M | | Debt, net | $16,922.3M | $16,732.9M | | Total Partners' Capital | $27,372.4M | $26,884.9M | [Notes to Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, significant activities including new debt investments and a **$2.5 billion** credit facility, and the company's business of owning **93** experiential assets with significant tenant concentration - The company owns **93** experiential assets, including **54** gaming properties and **39** other properties, leased to leading brands under long-term triple-net leases[53](index=53&type=chunk) - Significant tenant concentration exists with MGM and Caesars, who represented **38%** and **36%** of lease revenues, respectively, for the first six months of 2025, with Las Vegas Strip properties generating **49%** of lease revenues[95](index=95&type=chunk)[96](index=96&type=chunk) - In H1 2025, the company made new real estate debt investments, including a **$450 million** mezzanine loan for the One Beverly Hills development and a commitment of up to **$510 million** for the North Fork Casino & Resort development[102](index=102&type=chunk)[103](index=103&type=chunk)[105](index=105&type=chunk) Allowance for Credit Losses (CECL) | Category | Amortized Cost (Jun 30, 2025) | Allowance (Jun 30, 2025) | | :--- | :--- | :--- | | Investments in leases – sales-type | $24,504.5M | $(817.6)M | | Investments in leases – financing receivables | $19,329.2M | $(751.6)M | | Investments in loans and securities | $2,409.8M | $(40.8)M | | **Total (selected)** | **$46,243.5M** | **$(1,610.0)M** | - In February 2025, the company entered into a new **$2.5 billion** revolving credit facility maturing in 2029, replacing its previous facility, and in April 2025, it issued **$1.3 billion** in senior unsecured notes to redeem debt maturing in 2025[145](index=145&type=chunk)[151](index=151&type=chunk) - Dividends declared increased to **$0.4325** per share for Q1 and Q2 2025, up from **$0.4150** per share in the corresponding quarters of 2024[187](index=187&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting revenue growth driven by rent escalations and new investments, with Q2 2025 total revenues rising to **$1.0 billion** and net income increasing to **$865.1 million**, maintaining strong liquidity of over **$3.0 billion** Q2 2025 vs Q2 2024 Operating Results | Metric (in thousands) | Q2 2025 | Q2 2024 | Variance | | :--- | :--- | :--- | :--- | | Total Revenues | $1,001,334 | $957,003 | $44,331 | | Change in allowance for credit losses | $(142,001) | $(43,000) | $(99,001) | | Net income attributable to common stockholders | $865,079 | $741,302 | $123,777 | - Revenue growth in 2025 was primarily driven by incremental rent from the Venetian Capital Investment and annual rent escalators from other lease agreements[217](index=217&type=chunk) Non-GAAP Financial Measures (Q2 2025 vs Q2 2024) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FFO attributable to common stockholders | $865,079 | $741,302 | | AFFO attributable to common stockholders | $630,178 | $592,425 | | Adjusted EBITDA attributable to common stockholders | $822,239 | $775,873 | - As of June 30, 2025, the company had total liquidity of approximately **$3.0 billion**, including **$233 million** in cash, **$2.18 billion** in revolver capacity, and **$621.5 million** available from forward sale agreements[237](index=237&type=chunk) - The company has total contractual commitments of **$23.9 billion**, with no long-term debt maturing in the next twelve months[246](index=246&type=chunk)[244](index=244&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate, capital markets, and foreign currency risk, with interest rate risk largely mitigated by **98.1%** fixed-rate debt and foreign currency risk managed through natural hedges - As of June 30, 2025, **98.1%** of the company's **$17.3 billion** in debt is fixed-rate, significantly limiting exposure to interest rate fluctuations[263](index=263&type=chunk) - A **1%** change in interest rates on the variable-rate portion of debt would impact annual cash interest expense by approximately **$3.2 million**[263](index=263&type=chunk) - Foreign currency risk is primarily managed by borrowing in the currencies in which the company invests (e.g., CAD, GBP), creating a natural hedge[266](index=266&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures for both VICI Properties Inc. and VICI Properties L.P. were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures for both VICI Properties Inc. and VICI Properties L.P. were effective as of June 30, 2025[268](index=268&type=chunk)[271](index=271&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[269](index=269&type=chunk)[272](index=272&type=chunk) [PART II. OTHER INFORMATION](index=63&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company states that as of June 30, 2025, it is not involved in any litigation that it believes could have a material adverse effect on its business, financial condition, or results of operations - As of June 30, 2025, the company is not subject to any material litigation[170](index=170&type=chunk)[273](index=273&type=chunk) [Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) This section incorporates by reference the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, confirming no material changes during the six months ended June 30, 2025 - There have been no material changes to the risk factors previously disclosed in the 2024 Annual Report on Form 10-K[274](index=274&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, VICI Properties Inc. repurchased **1,360** shares of its common stock at an average price of **$31.71** to satisfy tax withholding obligations related to stock award vesting, while VICI Properties L.P. made no repurchases VICI Properties Inc. Equity Repurchases (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | June 1 - June 30, 2025 | 1,360 | $31.71 | | **Total Q2 2025** | **1,360** | **$31.71** | - The repurchased shares were surrendered by employees to satisfy statutory minimum tax obligations on vested stock awards[277](index=277&type=chunk) [Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[279](index=279&type=chunk) [Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[280](index=280&type=chunk) [Other Information](index=65&type=section&id=Item%205.%20Other%20Information) The company disclosed that no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the second quarter of 2025 - No director or officer of the Company adopted or terminated a Rule 10b5-1 trading arrangement during Q2 2025[281](index=281&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including supplemental indentures, lease amendments, and required certifications by the Principal Executive Officer and Principal Financial Officer - Filed exhibits include documents related to recent debt offerings, lease amendments, and officer certifications[282](index=282&type=chunk)