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    VICI
    Earnings call· Mar 2026(Q1 FY26)

    VICI PROPERTIES Q1 FY26 earnings call VICI

    Apr 30, 2026 Source

    Executive summary

    VICI Properties Q1 FY26 — Strong Capital Commitments and AFFO Growth

    VICI Properties delivered a strong Q1 FY26, marked by significant capital commitments and robust AFFO per share growth, driven by its strategic focus on experiential real estate. The company continues to leverage its strong balance sheet and free cash flow to fund incremental investments and maintain its dividend growth trajectory. Management emphasized its long-term strategy of diversifying its tenant base and investing in experiential assets, while also actively managing its capital structure.

    Highlights

    4

    • AFFO per share grew by 4.5% year-over-year in Q1 FY26, with only a 1% increase in share count.

    • Achieved approximately $1.2 billion in new capital commitments in Q1 FY26, marking two consecutive quarters of over $1 billion.

    • Maintained an AFFO payout ratio of approximately 75%, supporting consistent dividend growth.

    • Net debt to annualized Q1 adjusted EBITDA stood at 5x, at the low end of the target leverage range of 5x to 5.5x.

    Concerns

    4

    • Emerging changes in the gaming space

    • Competitive pressures from new commercial casinos in New York City

    • Caesars privatization rumors

    • Tenant credit (Century Casinos)

    Guidance & targets

    2
    CategoryTargetConfidence
    Full-year 2026 AFFO
    $2.665 billion and $2.695 billion
    high materiality
    High
    Full-year 2026 AFFO per diluted common share
    $2.44 and $2.47 per diluted common share
    high materiality
    High

    Operational metrics

    10
    AFFO per share growth
    4.5%year-over-year
    Q1 FY26

    In the first quarter, on a year-over-year basis, we grew AFFO per share by 4.5%, while only increasing our share count by roughly 1%.

    Share count increase
    1%year-over-year
    Q1 FY26

    while only increasing our share count by roughly 1%.

    AFFO payout ratio
    75%approximately
    Q1 FY26

    VICI has an AFFO payout ratio of approximately 75%.

    Dividend growth CAGR
    7%peer-leading
    8-year

    posting a peer-leading 8-year dividend growth CAGR of 7%

    Net Debt/Adjusted EBITDA
    5x
    Q1 FY26

    our net debt to annualized first quarter adjusted EBITDA is approximately 5x at the low end of our target leverage range of 5 to 5.5x.

    Weighted average interest rate
    4.46%
    Q1 FY26

    We have a weighted average interest rate of 4.46% as adjusted to account for our hedge activity

    Weighted average years to maturity
    5.7 years
    Q1 FY26

    and a weighted average 5.7 years to maturity.

    Total liquidity
    $3.1 billion
    as of March 31, 2026

    As of March 31, 2026, we have approximately $3.1 billion in total liquidity comprised of approximately $480 million in cash and cash equivalents, $242 million in estimated proceeds available under our outstanding forward, and $2.4 billion of availability under our revolving credit facility.

    Las Vegas convention attendees
    140,000
    March

    There was strong convention-related activity during the quarter with about 140,000 con ag, town expo attendees in March

    WWE event attendees
    100,000
    a few weeks ago

    the annual spring WWE event brought over 100,000 attendees to the city a few weeks ago.

    Orderbook & backlog

    1
    Acquisition of 4 real estate assets in Alberta, Canada$144 millionQ1 FY26

    Pending acquisition

    Deals & partnerships

    4
    Cain and Eldridge Industriesmezzanine loan$1.5 billion total, $1.05 billion incremental commitment

    Expansion of long-term strategic relationship, part of construction financing for One Beverly Hills development project. Incremental commitment beyond previously announced $450 million investment. Construction commenced 2024, vertical works fall 2025, phase delivery scheduled to commence 2028.

    Pure Casino Entertainmentacquisition of real estate assets$144 million

    Acquisition of 4 real estate assets located in Alberta, Canada, in connection with Pure Casino Entertainment's pending take private acquisition of Gamehost. Transaction is emblematic of VICI's ability to help existing tenants execute on growth strategies through real estate monetization.

    Clairvestnew lease agreement

    Entered into a new lease agreement with Clairvest in connection with the closing of Clairvest's acquisition of Northfield Park in Ohio from MGM. Added VICI's 14th tenant, diversifying tenant roster.

    Goldenacquisition$1.16 billion

    All gaming regulatory and shareholder approvals met. Reflects VICI's strategic entry into real estate ownership in the Las Vegas locals market, which has deeply rooted loyal customer bases and attractive demographic tailwinds.

    Capital programs

    2
    One Beverly Hills development project (Mezzanine Loan)underway$1.5 billion
    Period spend: $1.05 billion
    Start: 2024

    Expansion of long-term strategic relationship with Cain and Eldridge Industries by providing a $1.5 billion mezzanine loan as part of the construction financing for the One Beverly Hills development project. The mezzanine loan represents a $1.05 billion incremental commitment beyond our previously announced $450 million investment. Construction on the development commenced in 2024, with vertical works beginning in fall 2025, and phase delivery is scheduled to commence in 2028.

    MGM Grand room remodelunderway$300 million

    Our tenants continue to invest heavily in the assets we own on the strip, from MGM Grand's $300 million room remodel.

    Risks & headwinds

    4
    Emerging changes in the gaming spaceongoing

    iGaming expanding presence, growing though largely unregulated prediction markets, stabilization of online sports betting

    Mitigation: Believe that brick-and-mortar gaming assets in the right markets operated by the right operators will retain sticky consumer bases and continue to perform well. Continue broader long-term strategy of diversifying tenant base and investing in other experiential real estate.

    Competitive pressures from new commercial casinos in New York Citynear-term, ongoing

    Resorts World opened with table games 2 days ago

    Mitigation: Tenants will monitor customer origins (radius), track and adjust plans and offers accordingly. VICI will continue to monitor.

    Caesars privatization rumorsnear-term

    not quantified, but a potential change in tenant structure

    Mitigation: VICI does not comment on rumors. Focus on current performance and CapEx benefits.

    Tenant credit (Century Casinos)couple of years to deal with term loan

    leverage may be a little bit higher than some of the others

    Mitigation: Asset level coverage is very strong, good execution at asset level. VICI feels good about operations and capital deployed in property growth fund.

    Q&A highlights

    6

    How does VICI view the balance between its expanding loan book and traditional sale-leaseback transactions?

    David Kieske stated that the loan book is a strategic tool for developing long-term relationships, with some loans having direct pathways to real estate ownership and others providing insights into new sectors. He noted the loan book is currently in the high single digits as a percentage of total assets and that VICI is mindful of repayments, aiming to redeploy proceeds into real estate or credit opportunities.

    “It's a strategic tool that we have in our toolkit to develop long-term relationships.”

    asked by Barry Jonas · answered by David Kieske

    2 min read5 chapters

    Detailed Narrative

    01

    Experiential Real Estate Thesis

    VICI Properties is strategically committed to investing in experiential real estate, driven by insights into how people live, work, and play. Spending trends from 2019-2023 show global spending on experiences rose 65% versus 12% on goods, a 5:1 growth ratio. TD Cowen's 2026 report indicates experience-related services grew at an average annual rate of 5.2% from 2023-2025, compared to 2.9% for total personal consumption expenditure. This secular trend underpins VICI's investment strategy.

    02

    Strategic Capital Commitments

    VICI announced approximately $1.2 billion in new capital commitments in Q1 FY26, marking the first time in company history with two consecutive quarters exceeding $1 billion in new commitments. This includes a $1.05 billion incremental mezzanine loan for the One Beverly Hills development and a $144 million acquisition of four real estate assets in Alberta, Canada. The company emphasizes its ability to help existing tenants with growth strategies and diversify its tenant roster.

    03

    Las Vegas Market Dynamics

    Management noted improvements in the Las Vegas market in Q1, with strong convention activity (140,000 attendees in March) and operators addressing value perception through promotional deals. Future demand drivers include professional sports (A Stadium construction, NBA franchise pursuit, WWE event drawing 100,000 attendees) and ongoing tenant investments in properties like MGM Grand ($300 million room remodel) and Caesars Palace (Omnia Day Club development).

    04

    Balance Sheet and Liquidity

    VICI maintains a strong balance sheet with total debt of $17.1 billion and net debt to annualized Q1 adjusted EBITDA at approximately 5x, at the low end of its 5x to 5.5x target range. The company reported $3.1 billion in total liquidity as of March 31, 2026, comprising $480 million in cash, $242 million in estimated forward proceeds, and $2.4 billion available under its revolving credit facility. Subsequent to quarter end, all remaining outstanding forward equity was settled to partially fund the Golden transaction.

    05

    Capital Allocation Strategy

    The company generates about $650 million in annual free cash flow (after dividends), which it deploys into incremental investments without shareholder dilution. VICI is actively exploring alternative pools of capital, including insurance capital, to diversify its funding sources and support future growth ambitions, drawing parallels to strategies employed by other large REITs. Management confirmed that current stock levels are not attractive for equity issuance, but they are confident in executing growth plans with available capital.

    AI-generated summary of the company’s earnings call. Not investment advice.