Vici Properties: Revenue Rises, EPS Dips
The real estate investment trust posted robust revenue growth for the fourth quarter, but missed expectations on earnings per share.
Vici Properties (NYSE:VICI), a real estate investment trust specializing in gaming and experiential properties, released its earnings for the fourth quarter on Feb. 20. The report showcased strong revenues of $976.1 million compared to the analysts' consensus forecast of $970 million. However, adjusted earnings per share fell to $0.58, below the anticipated $0.68. Its adjusted funds from operations (AFFO) -- the preferred metric for gauging the profitability of a REIT -- came in at $0.57 per share, up by $0.02 per share. Overall, the quarter was mixed, marked by solid revenue growth but underwhelming earnings due to credit-related adjustments.
Source: Analysts' estimates for the quarter provided by FactSet.
Vici Properties operates as a real estate investment trust with a primary focus on gaming, hospitality, and entertainment properties. It relies heavily on long-term triple net leases, which transfer the responsibility for most property-related expenses to tenants, thereby providing the REIT with more predictable revenue streams. This approach allows Vici to maintain stable cash flows and engage in strategic financial partnerships that enhance its portfolio. Major tenants such as Caesars and MGM contribute significantly to its rental income.
