Vici Properties Reports Q4 Earnings: Revenue Beats, EPS Misses

Vici Properties releases its fourth-quarter results showing mixed outcomes; strong revenues of $976.1 million exceed forecasts, yet EPS falls short. Investors are cautioned about credit adjustments impacting net income and should watch interest rate changes moving forward.

Date: 21-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Vici Properties reported adjusted EPS of $0.58, which disappointed analysts who had estimated $0.68, resulting in a negative variance of 16.2%.
Revenue Growth
The report highlighted robust revenue growth, with total revenues of $976.1 million, surpassing analysts' expectations of $970 million, marking a year-over-year increase of 4.7%.
Net Income
Net income was reported at $614.6 million, showing a negative 17.8% decline from the previous year's figure of $747.8 million, which could raise concerns for investors.
Profit Margins
The dip in adjusted EPS and net income indicates potential pressure on profit margins, stemming from credit-related adjustments, notably a $157.7 million increase in the Current Expected Credit Loss (CECL) allowance.
Outlook
Despite the mixed results for the quarter, Vici Properties has set an AFFO target for 2025 between $2.455 billion and $2.485 billion, corresponding to AFFO per diluted share of $2.32 to $2.35, indicating a stable outlook for the upcoming year. Nevertheless, the company cautions that macroeconomic factors, particularly interest rate fluctuations, could influence future performance. Investors should monitor the economic conditions and performance of major tenants like Caesars and MGM for any impact on revenue streams.

Stocks: VICI CZR MGM