VICI Q2 2025 Earnings Preview: Expenses Expected to Remain a Drag on AFFO Growth.

VICI Properties is set to announce Q2 2025 earnings results on July 30th. Expenses are expected to remain a drag on AFFO growth, following a similar trend last quarter. VICI invests in casino and entertainment properties.

VICI Properties Inc. (NYSE: VICI), a leading gaming real estate investment trust (REIT), is set to release its second-quarter 2025 earnings results on July 30th. The company, which owns portfolios of market-leading gaming, hospitality, and entertainment destinations, is expected to report growth in revenues and adjusted funds from operations (AFFO) per share. However, expenses are anticipated to continue to weigh on AFFO growth, as they did in the previous quarter.

In the first quarter of 2025, VICI Properties reported an AFFO per share of $0.58, which fell short of the average analyst estimate of $0.68. Despite revenues coming in better than expected, operating expenses jumped, affecting AFFO growth. The company's 2025 AFFO per share guidance was nudged up to $2.33-$2.36, but it still fell short of the Wall Street consensus of $2.51 [2].

The Zacks Consensus Estimate for quarterly revenues is pegged at $996.07 million, indicating a 4.08% growth from the prior-year quarter. However, the Zacks Consensus Estimate for income from sales-type leases is expected to reach $530.83 million, up from $528.60 million in the prior quarter. Income from lease financing receivables and loans stands at $436.44 million, up from $426.48 million in the previous quarter [1].

VICI Properties' performance in the second quarter is expected to have been influenced by the resurgence in demand for its gaming facilities and other hospitality and entertainment venues. The company's strong partnerships with top-tier experiential operators and long-term triple-net leases are likely to have contributed to stable revenue generation. Additionally, the company has diversified its portfolio beyond gaming, including investments in non-gaming experiential assets like Chelsea Piers and Bowlero [1].

However, expenses are expected to continue to be a drag on AFFO growth. Interest expenses are estimated to reach $211.51 million for the quarter, according to Visible Alpha. Other operating expenses are expected to reach $35.04 million, up from $14.79 million in the previous quarter [2].

VICI Properties' focus on dividend growth and total return has been a key strategy. The company's dividend yield of 5.38% has been a draw for investors, and the stock has seen strong performance year-to-date, up ~12% [2].

In conclusion, while VICI Properties is expected to report growth in revenues and AFFO per share, expenses are anticipated to continue to weigh on AFFO growth. Investors will be closely watching the company's earnings report for insights into its ability to manage expenses and maintain its growth trajectory.

References:

[1] https://www.theglobeandmail.com/investing/markets/stocks/AMT/pressreleases/33683631/vici-properties-to-report-q2-earnings-what-to-expect-from-the-stock/
[2] https://seekingalpha.com/news/4473599-vici-q2-2025-earnings-preview-expenses-expected-to-remain-a-drag