VICI Properties announced an increase in adjusted funds from operations for 2025, detailing multiple capital commitments, while executives reviewed trends in Las Vegas visitor numbers, lease restructuring, and capital allocation during the fourth-quarter earnings call.
For the year ending December 31, 2025, total revenue rose by 4.1% to reach $4.0 billion. Net income attributed to common stockholders climbed 3.6% to $2.8 billion, translating to $2.61 per diluted share, compared to $2.7 billion the previous year.
Adjusted funds from operations allocated to common stockholders hit $2.5 billion, representing a 6.6% increase from $2.4 billion, with AFFO per share boosting by 5.1% to $2.38.
Total revenues for the fourth quarter amounted to $1.0 billion, reflecting a 3.8% growth compared to the same period last year. AFFO saw a substantial rise of 6.8% to $642.5 million, while per-share AFFO increased from $0.57 to $0.60. The weighted average number of shares outstanding grew by 1.2% year-over-year.
Chief Financial Officer David Kieske highlighted a robust profit margin of 69% while discussing “sustainable per-share returns,” noting that the company’s debt stood around five times its cash flow. VICI concluded the year with $563.5 million in cash and cash equivalents, $44.5 million in short-term investments, and $243.3 million in potential forward sale equity proceeds.
In the third quarter, the company raised its annualized cash dividend by 4.0%, marking the eighth consecutive yearly increase since its IPO in 2018.
In 2025, VICI disclosed approximately $2.1 billion in capital commitments with a weighted average initial yield of 8.9%. This included a mezzanine loan investment of $450.0 million tied to the One Beverly Hills development project, potential delayed draw term loans up to $510.0 million for the North Fork Mono Casino & Resort in California, and a $1.16 billion sale-leaseback deal involving seven casino properties in Nevada from Golden Entertainment.
On November 6, the firm committed to acquiring the land and real property of seven Golden properties for $1.16 billion and to establishing a triple-net master lease with a newly formed entity overseen by Chairman and CEO Blake L. Sartini. This lease will commence with an annual rent of $87.0 million, representing a 7.5% cap rate on the acquisition, and will feature an initial term of 30 years complemented by four optional five-year renewals.
VICI Discusses Las Vegas Trends
During the investor call, President John Payne addressed the trends affecting Las Vegas, stating: “We see 2025 as more of a normalization rather than a retraction.”
He recognized “a decline in Canadian visitation,” but highlighted that Harry Reid International Airport reported its third-highest passenger count in 2025 and emphasized a robust convention calendar slated for early 2026.
“The operational performance of our tenants is critical,” Payne said, pointing to Station Casinos’ “innovative and strategic operating model.”
VICI merged the leases for Hollywood Casino at Greektown in Detroit and Margaritaville Resort Casino in Bossier City into a unified master lease with PENN Entertainment, resulting in an annual rent sum of $80.7 million without an increase in total rent. “We streamlined the escalation structure,” Kieske remarked, calling it “a cleaner and simpler setup.”
When questioned about share repurchases, Chief Executive Officer Edward Pitoniak mentioned that General Counsel Samantha Gallagher “would rightly reprimand me if I claimed we would never consider share buybacks.”
He noted the company’s “track record of enhancing returns” and declined to prioritize buybacks compared to other capital uses. Regarding investment guidance, he expressed caution, stating, “I, as a risk manager, am somewhat reluctant concerning investment guidance,” arguing that it “can lead to complications.”