VICI Properties Q4 2024: Contradictions in Deal Flow, Partnerships, and Global Strategy

These are the key contradictions discussed in VICI Properties' latest 2024Q4 earnings call, specifically including: Deal Flow and Investment Opportunities, Partnership Strategy and Competitive Positioning, and International Opportunities:



Strategic Partnership and Investment:
- VICI Properties announced a new strategic partnership with Cain International and Eldridge Industries, initiating a relationship with an investment in the One Beverly Hills development, providing $300 million in financing.
- The partnership aims to capitalize on opportunities in experiential investments, including luxury hospitality, retail, and residential properties.
- The strategic alignment is driven by shared conviction in the strength of place-based experiences and a cultural focus on partnership.

Financial Performance and Guidance:
- VICI reported adjusted EBITDA per share increased by 3.6% for Q4 compared to the same period last year, with full-year growth of 5.1%.
- For 2025, AFFO guidance is expected to be between $2.455 billion and $2.485 billion, indicating a year-over-year growth of 3.3%.
- The financial performance highlights a highly efficient triple net model and a focus on capitalizing on opportunities in existing properties.

Balance Sheet Improvement:
- VICI's net debt-to-annualized fourth-quarter adjusted EBITDA ratio is approximately 5.3x, within their target leverage range of 5 to 5.5x.
- The company achieved an investment-grade credit rating from all three major credit rating agencies, reflecting an improved access to and cost of capital.
- This improvement is attributed to efforts in refinancing and restructuring debt, leading to a more liquid debt complex.

Development Funding and Investment Strategy:
- VICI is involved in development funding, including investments in Great Wolf and Canyon Ranch, with ongoing discussions to potentially participate more in One Beverly Hills.
- Development funding is viewed as a strategic choice that aligns with long-term pipeline potential and relationships, rather than focusing solely on immediate returns.