• Capital Committed in 2024: Approximately $1.1 billion at an initial yield of 8.1%.
• Las Vegas Tourism: Record airline passengers at 58 million for the year; visitation increased 2% year-over-year to approximately 42 million.
• Operator Investments: Nearly $1 billion announced in investments in VICI's real estate since Q4 2024.
• Total Debt: $17.1 billion, with $14.1 billion in unsecured debt.
• Liquidity: Approximately $3.3 billion, including $525 million in cash and $2.4 billion available under the revolving credit facility.
• Net Debt to Adjusted EBITDA: Approximately 5.3 times.
• AFFO Per Share Q4 2024: $0.57, a 3.6% increase from Q4 2023.
• AFFO Per Share Full Year 2024: $2.26, a 5.1% increase from 2023.
• G&A Expenses: $20.7 million for the quarter, 2.1% of total revenues.
• 2025 AFFO Guidance: Expected between $2.455 billion and $2.485 billion, or $2.32 to $2.35 per diluted share.

• Warning! GuruFocus has detected 5 Warning Signs with VICI.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• VICI Properties Inc (NYSE:VICI) announced a new strategic and financial relationship with Cain International and Eldridge Industries, marking a significant growth opportunity.
• The company committed approximately $1.1 billion of capital in 2024 at an initial yield of 8.1%, showcasing strong investment activity.
• VICI Properties Inc (NYSE:VICI) achieved an investment-grade credit rating across all three major agencies, enhancing its financial standing.
• The company reported AFFO per share growth of 5.1% for the full year 2024, indicating strong financial performance.
• VICI Properties Inc (NYSE:VICI) has a robust liquidity position with approximately $3.3 billion in total liquidity, supporting future growth initiatives.

Negative Points

• The deal flow for high-quality real estate acquisition opportunities was limited in 2024, impacting potential growth.
• There is uncertainty in pricing for permanent assets due to volatility in the 10-year treasury yield, affecting investment decisions.
• The company faces competition in the casino space, which could impact its ability to secure new acquisitions.
• VICI Properties Inc (NYSE:VICI) has a significant amount of forward equity, which could lead to dilution if not managed carefully.
• The allowance for credit losses showed significant swings due to macroeconomic factors, indicating potential financial risks.

Q & A Highlights

Q: Can you discuss the deal flow in 2024 and how it compares to previous years? A: Edward Pitoniak, CEO, noted that 2024 did not present a plentiful flow of high-quality real estate acquisition opportunities. However, they saw compelling opportunities in developments, such as further investments in the Venetian. John Payne, President and COO, added that the funnel of opportunities is wider now due to diversification beyond just casino properties, and they are busier than ever at the start of 2025.

Q: What are your thoughts on cash yields for various asset categories? A: Edward Pitoniak, CEO, mentioned that there is not much visibility into cash yields for high-quality assets on the Las Vegas Strip due to a lack of recent trades. John Payne, President and COO, added that the Las Vegas market is performing well, making it unlikely for operators to sell assets at this time.

Q: How do you view development funding versus acquisitions in terms of portfolio impact? A: Edward Pitoniak, CEO, explained that they focus on relationships that allow them to roll capital into new ventures, as seen with Cain and Eldridge. They are not overly concerned about the money coming back due to the potential pipeline of opportunities with Cain, similar to their ongoing partnership with Great Wolf.

Q: Can you provide details on the forward equity and share count assumptions in your guidance? A: David Kieske, CFO, stated that forward equity contracts are typically one-year but can be extended. They use the treasury stock dilution method for guidance, incorporating reasonable projections around future stock prices. The methodology for 2025 guidance remains unchanged from previous years.

Q: What are your thoughts on the potential acquisition of the Caesars Forum Convention Center? A: John Payne, President and COO, acknowledged the asset's quality and strategic location, indicating it is on their radar. They will continue to evaluate its performance and potential acquisition when the option becomes available.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.