VICI Properties (VICI) Q1 FY26 earnings call: guidance and Q&A

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

What is VICI's long-term vision for the partnership with Cain and Eldridge, especially regarding private capital sources for growth?

Ed Pitoniak highlighted the alignment of vision with Cain and Eldridge regarding the experiential economy and valued their energy in identifying global opportunities. He emphasized the importance of monitoring global capital formation and identifying valuable pools of capital, such as insurance capital, to support VICI's growth and durability, drawing parallels to other successful REIT strategies.

“what we really value in Cain and Eldridge is, frankly, the energy of their animal spirits in terms of identifying and seizing opportunities globally.”

asked by Chris Darling · answered by Edward Pitoniak

With the Golden deal closing, how is the Golden team thinking about growing their business, and what role can VICI play in new acquisitions or reinvestment?

John Payne expressed excitement about working with the Golden team post-closing to explore growth areas. He noted that Golden is keen to diversify its portfolio, and VICI's capital can assist with acquiring new assets and adding amenities to existing properties to boost EBITDA. Initial discussions have occurred, and plans will be refined in the coming months and years.

“I do know the team there is anxious to continue to look at unique opportunities to see their portfolio be diversified, and our capital can help them in many ways.”

asked by Chris Darling · answered by John W. Payne

Is VICI considering other pools of capital, specifically international financing sources, to lower its overall cost of capital?

David Kieske confirmed that VICI has always been forward-looking regarding alternative debt and equity capital sources. He mentioned opportunities to issue debt in Canada following recent acquisitions and ongoing monitoring of European financing markets (euro/sterling denominated) and private capital access, similar to strategies used by other large REITs.

“we've always been trying to be forward looking around where can we source alternative forms of both debt capital as well as potentially equity capital at some point in the future”

asked by John DeCree · answered by David Kieske

What is VICI's updated commentary on opportunities in sectors like professional sports or theme parks, and how close are they to making investments?

John Payne stated that VICI's knowledge base regarding university and professional sports infrastructure and surrounding developments has significantly increased over the past year. While he couldn't provide timing for capital deployment, he confirmed that VICI continues to see large opportunities in professional and collegiate athletics, particularly in sports infrastructure.

“Our knowledge base, the players in whether it's university and professional sports infrastructure, whether it's the understanding of how surrounding developments around these arenas and new stadiums or universities, how they get done, how they take place, where our capital can be effective, we sure we know a lot more today than we did a year ago.”

asked by Ronald Kamdem · answered by John W. Payne

Given the exhaustion of forward equity and current stock levels, what is VICI's total acquisition capacity, and how does it plan to fund future deals?

David Kieske explained that VICI is at the low end of its leverage range, providing incremental debt capacity. He highlighted $650 million in annual free cash flow (after dividends) for investments. While current stock levels are not attractive for equity issuance, VICI is actively sourcing opportunities and is confident in executing growth plans with available capital sources.

“we have $650 million of true free cash flow, and that's after dividends on an annual basis. And like the stock is at a level that isn't all that attractive to us right now.”

asked by Richard Hightower · answered by David Kieske