VICI's Q1 AFFO per share meets estimates. While revenues rise year over year, high interest expenses hurt the results to some extent.
The headline numbers for VICI Properties (VICI) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
VICI Properties Inc. (VICI) came out with quarterly funds from operations (FFO) of $0.58 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.56 per share a year ago.
Besides Wall Street's top -and-bottom-line estimates for VICI Properties (VICI), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended March 2025.
Evaluate the expected performance of VICI Properties (VICI) for the quarter ended March 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
While VICI's Q1 earnings are likely to have gained from its diversified portfolio and long term-leases, high interest expenses may have hurt the stock.
CPI-linked triple-net leases with >40-year terms drive predictable, inflation-hedged cash flows across VICI's portfolio. Strong tenant quality and master lease structures reduce default risk, even under macro stress. A well-laddered maturity schedule, low refinancing risk, and a well-managed balance sheet support VICI's financial flexibility through rate cycles.
The 'Undercovered' Dozen highlights 12 lesser-covered stocks, offering new investment opportunities and fostering community discussion on their potential. Trinity Capital's stock dip presents a buying opportunity due to its positive interest rate sensitivity, robust dividend, and specialized financing solutions. VICI Properties is a 'Buy' for its stable rental revenues, strong liquidity, and a tariff-proof business model focused on gaming and experiential real estate.
With high-quality portfolios, long-term leases and a healthy balance sheet, VICI is poised to ride the growth curve. Its dividend payouts enhance shareholder value.
VICI Properties is a well-priced, diversified commercial REIT with a robust 5.4% yield. Its focus on key, stable, domestic properties makes it 'Tariff Proof'. VICI's strong FFO growth is underpinned by a multi-billion-dollar real estate portfolio, high tenant quality, and mission-critical property positioning. VICI stock appears well priced, given the premium-looking margins and low gearing.
VICI Properties' sideways trading since early 2021 has already triggered its richer forward dividend yields, thanks to the uncertain macroeconomic/geopolitical environment. Despite the increased reliance on debts and the still expensive borrowing costs, the REIT has guided decent FY2025 numbers, underscoring its ability to generate profitable growth. This is especially given the REIT sector's inverse relationship to the moderating 10Y Treasury Yields, with it likely to trigger lower borrowing costs, thanks to the ongoing trade war.
VICI Properties generates 124 basis points of value through a favorable spread between their cap rate and their cost of capital. Of the 124 basis points of value, a meaningful amount is accruing to the investor as measured by the total return picture exceeding the AFFO yield. Current market volatility and potential subdued interest rates enhance the attractiveness of VICI's bond-like investment profile.