VICI Properties Set to Release Q2 Earnings Amid Expense Pressure and Positive Outlook

VICI Properties (VICI) is set to release Q2 earnings on July 30th, with rising expenses potentially affecting AFFO growth despite increasing revenue. Analysts remain optimistic with a one-year average price target of $36.27, representing a 10.61% potential upside from the current stock price of $32.80. The consensus among 24 brokerage firms rates VICI at an average recommendation of 1.9, categorizing it as "Outperform."

VICI Properties Inc. (VICI) is scheduled to release its second-quarter 2025 earnings results on July 30, after the closing bell. The New York-based experiential REIT, which owns market-leading gaming, hospitality, and entertainment destinations, is expected to report growth in revenues and adjusted funds from operations (AFFO) per share. Despite a rise in expenses, analysts remain optimistic about the company's performance.

In the last reported quarter, VICI Properties reported an AFFO per share of 58 cents, in line with the Zacks Consensus Estimate. Over the preceding four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on two occasions, with an average surprise of 0.90% [1]. The Zacks Consensus Estimate for the quarterly AFFO per share has been revised upward to 60 cents over the past month, indicating growth of 5.26% from the year-ago quarter’s reported figure [1].

The second quarter is expected to have been influenced by the resurgence in demand for gaming facilities and other hospitality and entertainment venues. The company stands to gain from its strong partnerships with top-tier experiential operators, contributing to stable revenue generation during the quarter [1]. VICI Properties has diversified its portfolio beyond gaming, including investments in non-gaming experiential assets like Chelsea Piers and Bowlero, which demonstrates effective growth strategies and strong management [1].

Analysts project quarterly revenues of $996.07 million, representing a 4.08% increase from the prior-year quarter’s reported figure. Income from sales-type leases is estimated at $530.83 million, indicating an increase from the prior quarter and the year-ago quarter [1]. Revenue from golf operations is projected at $11.52 million, up from $9.61 million in the prior quarter but slightly down from $11.66 million in the year-ago period [1].

Despite the growth in revenues, expenses are expected to bite into AFFO growth, as indicated by analysts. However, the company’s activities during the to-be-reported quarter were deemed adequate to garner analysts’ confidence [2].

The Zacks Consensus Estimate for the quarterly AFFO per share has been revised upward by a cent to 60 cents over the past month, indicating growth of 5.26% from the year-ago quarter’s reported figure [1]. The company's earnings ESP (Earnings Surprise Potential) is +15.43%, and it carries a Zacks Rank of 3, increasing the chances of an AFFO beat [1].

Analysts remain optimistic about VICI Properties. The one-year average price target is $36.27, representing a 10.61% potential upside from the current stock price of $32.80. The consensus among 24 brokerage firms rates VICI at an average recommendation of 1.9, categorizing it as "Outperform" [3].

Other stocks in the REIT sector that warrant a look include Welltower (WELL) and American Tower (AMT). Welltower is scheduled to report quarterly numbers on July 28, with an Earnings ESP of +16.19% and a Zacks Rank of 3. American Tower is slated to release quarterly numbers on July 29, with an Earnings ESP of +0.95% and a Zacks Rank of 2 [1].

References:
[1] https://finance.yahoo.com/news/vici-properties-report-q2-earnings-115300746.html
[2] https://seekingalpha.com/news/4473599-vici-q2-2025-earnings-preview-expenses-expected-to-remain-a-drag
[3] https://www.theglobeandmail.com/investing/markets/stocks/WELL-N/pressreleases/33683633/vici-properties-to-report-q2-earnings-what-to-expect-from-the-stock/