VICI Properties Inc.
VICI · NYSE
Sep 2026
Next quarter
Consensus is $0.61 EPS for Sep 2026 across 8 estimates, ranging $0.59 to $0.62.
VICI Jun 2026
- 0.00%
- -3.02%
- $0.62
- $0.62
- —
- $1.06B
Reported results
- $1.06B
- 99.30%
- $526.52M
- $0.48
Highlights
- Underlying earnings: AFFO increased 7.8% year over year to $679.6 million, or $0.62 per diluted share, matching the $0.62 consensus estimate and rising from approximately $650.9 million, or $0.60 per share, in Q1.
- Revenue growth: Total revenue rose 5.7% year over year to $1.0585 billion from $1.0013 billion, and increased from $1.02 billion in Q1.
- CECL distortion: Net income attributable to common stockholders fell 39.1% year over year to $526.5 million, or $0.48 per share, after a $271.1 million increase in the credit-loss allowance versus a $142.0 million release last year.
- Portfolio expansion: VICI closed the $1.15 billion Golden Entertainment transaction, adding seven Nevada casino properties and an $87.0 million initial annual rent stream, while issuing approximately 24.3 million shares.
- New tenants and markets: VICI added Clairvest, Golden Entertainment and Club Med as tenants, reaching 16 tenants added through the highlighted transactions; the Gamehost acquisition added four Alberta properties for C$200.6 million and C$16.1 million of annual rent.
- Guidance: Full-year 2026 AFFO guidance was raised at the low end to $2.675 billion-$2.695 billion, or $2.45-$2.47 per diluted share, from $2.665 billion-$2.695 billion previously.
- Balance sheet: Quarter-end debt was $17.2 billion and liquidity was approximately $2.52 billion, including $288.1 million of cash and $2.23 billion of revolver capacity; $1.75 billion of principal matures in the remainder of 2026.
- Capital deployment: VICI provided a $1.5 billion maximum commitment for the One Beverly Hills mezzanine loan and entered into $600 million of forward-starting interest-rate swaps for expected future debt issuance.
Analysis
VICI’s second quarter was an underlying growth quarter obscured by a volatile CECL charge. AFFO per share was $0.62, exactly in line with consensus and up from $0.60 a year ago and approximately $0.61 in Q1. Total revenue rose 5.7% year over year to $1.0585 billion, versus $1.0013 billion last year and $1.02 billion in the prior quarter. AFFO attributable to common stockholders increased 7.8% to $679.6 million, while adjusted EBITDA rose 5.7% to $869.5 million.
The main accounting swing was a $271.1 million increase in the credit-loss allowance, compared with a $142.0 million release in the year-ago quarter. The $413.1 million year-over-year change reduced GAAP net income to $526.5 million, or $0.48 per share, from $865.1 million, or $0.82, despite higher contractual lease revenue and loan income. Strategically, VICI expanded through the $1.15 billion Golden Entertainment portfolio, the C$200.6 million Gamehost acquisition and a new Club Med partnership for a $20.3 million resort acquisition plus $55.2 million of redevelopment funding. Management raised the low end of 2026 AFFO guidance by $10 million while keeping the high end unchanged, indicating confidence in the recurring earnings base despite elevated credit-loss volatility.
Underlying operating growth
- Lease income: Total leasing revenue increased 4.4% to $956.0 million, including $816.9 million of contractual lease revenue, which rose 3.9% year over year.
- Loan income: Income from loans and securities rose 30.9% to $71.6 million, driven by higher principal balances from newly originated and funded debt investments.
- Cash earnings: AFFO increased to $679.6 million from $630.2 million, while AFFO per share rose to $0.62 from $0.60 despite diluted weighted-average shares increasing to 1.090 billion from 1.057 billion.
- Sequential comparison: Revenue increased from $1.02 billion in Q1, and AFFO rose from approximately $650.9 million in Q1 to $679.6 million.
Credit-loss allowance
- Quarterly charge: VICI recorded a $271.1 million increase in the CECL allowance, compared with a $142.0 million reduction in Q2 2025; the resulting $413.1 million year-over-year swing was the principal reason net income declined.
- Drivers: The charge included $72.6 million of initial allowances on the Golden and Gamehost acquisitions, a higher long-term probability-of-default estimate for one tenant following the issuance of lower-rated senior secured debt, and negative macroeconomic forecast changes.
- Portfolio allowance: Total allowance for credit losses reached $1.903 billion at June 30, up from $1.769 billion at December 31, while the allowance equaled 3.84% of amortized cost versus 3.72% at year-end.
- Credit performance: VICI reported no charge-offs or recoveries in the quarter. One $90.0 million loan was modified after operational challenges at the underlying asset but was performing under its modified terms; one $80.7 million senior secured loan remained on non-accrual status.
Portfolio expansion
- Golden Entertainment: VICI acquired seven Nevada casino properties for approximately $1.15 billion and leased them to a newly formed Golden OpCo under a 30-year master lease with $87.0 million of initial annual rent and 2.0% annual escalators beginning in lease year three. VICI issued approximately 24.3 million shares and retired $426.0 million of Golden debt.
- Gamehost: VICI acquired the real estate of Deerfoot Inn & Casino, Great Northern Casino and two adjacent hotels in Alberta for C$200.6 million. The PURE master lease rent increased by C$16.1 million, with 25 years remaining in the initial term.
- Club Med: VICI bought the Carambola Beach Resort in St. Croix for $20.3 million and will fund approximately $55.2 million of redevelopment through a build-to-suit structure. Construction is expected to begin in summer 2026, with reopening targeted for Q4 2027.
- Clairvest: The Northfield Park lease began at $53.0 million of annual rent and escalated to $54.0 million on May 1. It has a 25-year term, three 10-year renewal options and 2.0% annual escalators.
Capital and liquidity
- Debt position: Total debt was $17.218 billion at quarter end, compared with $17.092 billion at December 31, and carried a weighted average interest rate of 4.454% after hedging adjustments.
- Liquidity: VICI had approximately $2.52 billion of liquidity, consisting of $288.1 million of cash and $2.232 billion of available revolver capacity.
- Maturities: Scheduled principal maturities include $1.75 billion during the remainder of 2026, $1.50 billion in 2027 and $2.00 billion in 2028.
- Funding actions: VICI drew C$185.0 million on its revolver for Gamehost, physically settled 7.75 million forward shares for $242.1 million of net proceeds, and entered into $600.0 million of forward-starting swaps to reduce the rate risk of anticipated debt refinancing.
Guidance and distributions
- AFFO outlook: Full-year 2026 AFFO guidance is now $2.675 billion-$2.695 billion, or $2.45-$2.47 per diluted share, versus prior ranges of $2.665 billion-$2.695 billion and $2.44-$2.47 per share. The guidance midpoint was unchanged.
- Dividend: VICI declared a quarterly dividend of $0.45 per share, up from $0.4325 in the year-ago quarter; the Q2 distribution totaled approximately $495.3 million.
- Portfolio profile: VICI ended the quarter with 103 experiential assets, all 100% leased, and a weighted average lease term of approximately 39.6 years. MGM and Caesars accounted for 37% and 35% of lease revenue, respectively, while Las Vegas Strip properties generated approximately 49% of lease revenue.
