VICI Properties' Q2 FFO Meets Estimates, Revenues Beat on Lease Growth

VICI’s Revenue Mix Strengthens

Income from sales-type leases increased 3.6% year over year to $549.2 million. Growth reflected contributions from the new Northfield Park lease and contractual rent escalations across the company’s portfolio.

Income from lease financing receivables, loans and securities climbed 8.7% year over year to $478.4 million. Within this category, income from loans and securities surged 30.9% to $71.6 million, aided by higher returns from senior secured loans, mezzanine loans and preferred equity investments.

VICI’s Investments Broaden Beyond Gaming

The company acquired the Carambola Beach Resort in St. Croix for $20.3 million and leased it to Club Med under a triple-net lease. VICI also committed to providing about $55.2 million for redevelopment through a build-to-suit structure. The resort is targeted to reopen in the fourth quarter of 2027.

VICI also completed the acquisition of two gaming assets and two hotel assets in Alberta, Canada, for C$200.6 million. The properties were added to the PURE Master Lease, increasing annual rent by C$16.1 million. The lease was extended, leaving 25 years in its initial term.

VICI’s Balance Sheet Supports Capital Deployment

VICI ended the second-quarter with $288.1 million in cash and cash equivalents. Total liquidity was approximately $2.5 billion, including about $2.2 billion available under its revolving credit facility.

Total debt stood at roughly $17.2 billion, while the last-quarter annualized net leverage ratio was 4.9 times. The company maintained investment-grade credit ratings with stable outlooks from Moody’s, S&P and Fitch.

VICI Updates 2026 AFFO Outlook

Management now expects full-year 2026 AFFO between $2.675-$2.695 billion compared with the previous range of $2.665-$2.695 billion. The updated range raises the lower end while retaining the upper end.

AFFO per share is projected between $2.45 and $2.47, up from the prior lower-end estimate of $2.44. The Zacks Consensus Estimate is presently pegged at $2.46, within the projected range.

Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITs

SL Green Realty Corp. SLG reported second-quarter 2026 FFO per share of $1.43, which beat the Zacks Consensus Estimate of $1.19 by 20.17%. However, the metric declined 12.3% from $1.63 in the year-ago quarter.

Net rental revenues of $171.85 million surpassed the consensus estimate of $171.48 million by 0.22% and increased 16.5% year over year. SLG’s results reflected stronger Manhattan leasing, higher occupancy and growth in same-store cash net operating income.

Crown Castle Inc. CCI reported second-quarter 2026 adjusted funds from operations (AFFO) per share of $1.13, up 10.8% year over year. The metric surpassed the Zacks Consensus Estimate of $1.00 by 13%.

Results reflected a rise in AFFO per share, driven by a decrease in interest expense and an increase in interest income resulting from the use of proceeds from the sale of CCI’s Fiber and Small Cell businesses.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research