VICI(VICI) - 2025 Q2 - Quarterly Results

Q2 2025 Performance Overview VICI reported strong Q2 2025 results with a 4.6% year-over-year revenue increase and a 4.9% rise in AFFO per share, leading to raised full-year 2025 AFFO guidance CEO Comments and Q2 2025 Highlights VICI reported strong Q2 2025 results with a 4.6% year-over-year revenue increase and a 4.9% rise in AFFO per share, driven by strategic investments and debt refinancing Q2 2025 Financial Highlights (YoY) | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Total Revenues | $1.0 billion | +4.6% | | Net Income Attributable to Common Stockholders | $865.1 million | +16.7% | | Net Income per Share | $0.82 | +15.1% | | AFFO Attributable to Common Stockholders | $630.2 million | +6.4% | | AFFO per Share | $0.60 | +4.9% | - Key strategic activities for the quarter included: - A new partnership with Red Rock Resorts to provide up to $510.0 million in development funding for the North Fork Mono Casino & Resort - An increased investment of $150.0 million in the One Beverly Hills development, bringing the total commitment to $450.0 million - Issuance of $1.3 billion in senior unsecured notes to refinance existing debt - Raised full-year 2025 AFFO guidance[4] - The CEO highlighted that the company's performance reflects the efficient flow-through of its business model, driven by contractual rent escalations and investment activity[3] Financial Performance The company demonstrated robust financial growth in Q2 2025, with significant increases in total revenues, net income, and AFFO Q2 2025 Financial Results For Q2 2025, total revenues grew 4.6% YoY to $1.0 billion, with net income increasing 16.7% to $865.1 million, and AFFO rising 6.4% to $630.2 million Q2 2025 vs Q2 2024 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $1.0 billion | $957.0 million | +4.6% | | Net Income Attributable to Common Stockholders | $865.1 million | $741.3 million | +16.7% | | FFO Attributable to Common Stockholders | $865.1 million | $741.3 million | +16.7% | | AFFO Attributable to Common Stockholders | $630.2 million | $592.4 million | +6.4% | Consolidated Financial Statements The consolidated financial statements provide a detailed view of the company's financial position and performance, including total assets, revenues, and a reconciliation to non-GAAP measures Consolidated Balance Sheet Summary (As of June 30, 2025) | Category | Amount (in thousands) | | :--- | :--- | | Total Assets | $46,054,023 | | Total Liabilities | $18,609,911 | | Total Stockholders' Equity | $27,444,112 | Consolidated Statement of Operations Summary (Three Months Ended June 30, 2025) | Category | Amount (in thousands) | | :--- | :--- | | Total Revenues | $1,001,334 | | Total Operating Expenses | $(93,110) | | Net Income | $878,368 | | Net Income Attributable to Common Stockholders | $865,079 | Reconciliation of Net Income to AFFO (Three Months Ended June 30, 2025) | Category | Amount (in thousands) | | :--- | :--- | | Net income attributable to common stockholders | $865,079 | | Adjustments (e.g., non-cash items) | $(234,901) | | AFFO attributable to common stockholders | $630,178 | Business and Capital Activities VICI engaged in significant investment and capital market activities, including new development funding, increased existing investments, and strategic debt refinancing Investment Activity During the quarter, VICI committed to providing up to $510.0 million in a term loan for the North Fork Mono Casino & Resort and increased its mezzanine loan investment in One Beverly Hills by $150.0 million - Committed up to $510.0 million via a delayed draw term loan facility for the development of the North Fork Mono Casino & Resort, managed by affiliates of Red Rock Resorts[9] - Increased its mezzanine loan investment in the One Beverly Hills development by $150.0 million, raising the total commitment to $450.0 million[10][11] Capital Markets Activity In April 2025, VICI issued $1.3 billion in senior unsecured notes to refinance maturing debt and subsequently settled a forward sale agreement for $296.0 million in net proceeds - Issued $1.3 billion of senior unsecured notes in April 2025, comprised of $400.0 million due 2028 and $900.0 million due 2035, to redeem notes maturing in 2025[12] - Subsequent to quarter-end, the company settled a forward sale agreement for ~$296.0 million in net proceeds and repaid $175.0 million of the outstanding balance on its revolving credit facility[13] Balance Sheet and Liquidity As of June 30, 2025, VICI maintained strong liquidity of approximately $3.0 billion, with total debt of $17.3 billion and net debt of $17.04 billion - Total liquidity was approximately $3.0 billion as of June 30, 2025, consisting of cash, available forward sale proceeds, and revolving credit facility availability[15] Debt and Liquidity Summary (As of June 30, 2025) | Item | Amount ($ in millions) | | :--- | :--- | | Total Debt Outstanding | $17,273.5 | | Cash and Cash Equivalents | $233.0 | | Net Debt | $17,040.5 | Shareholder Information and Outlook VICI declared a quarterly cash dividend and raised its full-year 2025 AFFO guidance, reflecting positive future expectations Dividends The company declared a regular quarterly cash dividend of $0.4325 per share for Q2 2025, totaling approximately $456.9 million - On June 5, 2025, the company declared a Q2 2025 quarterly cash dividend of $0.4325 per share, totaling approximately $456.9 million[18] Full Year 2025 Guidance VICI raised its full-year 2025 Adjusted Funds From Operations (AFFO) guidance to between $2,500 million and $2,520 million, or $2.35 to $2.37 per share Updated Full-Year 2025 Guidance | Metric | Updated Guidance | Prior Guidance | | :--- | :--- | :--- | | Estimated AFFO (in millions) | $2,500 - $2,520 | $2,470 - $2,500 | | Estimated AFFO per diluted share | $2.35 - $2.37 | $2.33 - $2.36 | - The company does not provide guidance for GAAP net income, the most comparable GAAP measure, due to the inability to reliably predict the non-cash change in allowance for credit losses[19] Appendix The appendix provides supplemental company information, including corporate overview, earnings call details, and definitions of non-GAAP financial measures Company Information and Disclosures This section provides supplemental information, including details for the upcoming earnings conference call, a corporate overview of VICI's extensive experiential real estate portfolio, and standard forward-looking statement disclaimers - VICI Properties is an S&P 500® experiential REIT owning 93 assets, including 54 gaming properties and 39 other experiential properties across the US and Canada[25] - An earnings conference call is scheduled for Thursday, July 31, 2025, at 10:00 a.m. Eastern Time[23] - The press release contains forward-looking statements that involve known and unknown risks and uncertainties, and actual results could differ materially[26][27][29] Non-GAAP Financial Measures The company uses non-GAAP measures like FFO, AFFO, and Adjusted EBITDA to provide a meaningful perspective on its underlying operating performance, with clear definitions provided - FFO is defined consistent with Nareit's definition, excluding items like real estate-related depreciation and amortization and gains/losses from sales of certain real estate assets[31] - AFFO is calculated by adjusting FFO for non-cash items, including leasing and financing adjustments, stock-based compensation, and transaction costs[32] - Adjusted EBITDA is calculated by adjusting AFFO for net interest expense, current income tax expense, and certain adjustments attributable to non-controlling interests[33]