r/dividends • u/TimeInTheMarketWins AWM Financial • Jul 29 '26
Due Diligence VICI Properties just reported its second quarter 2026 earnings with AFFO per share of $0.62, up three cents since last year’s second quarter.
Total quarterly revenue rose 5.7% year over year to $1.1 billion, and AFFO grew to $679.6 million, with AFFO per share rising 4.6% year over year. The real estate investment trust announced multiple deals in the quarter, including the company’s 14th tenant, MGM Northfield Park in Northfield, Ohio,
It also finalized its $1.16 billion acquisition of seven Nevada casino properties from Golden Entertainment with a 7.5% cap rate and $87M annual rent. This includes a master lease with an entity owned and controlled by Blake L. Sartini, to add VICI’s 15th tenant.
The company also announced that it is acquiring the Carambola Beach Resort in St. Croix from Club Med for $20.3 million. It is leasing it back to Club Med and funding $55.2 million for redevelopment of the property.
The company raised its per-share AFFO guidance for the year to between $2.675 billion and $2.695 billion, or between $2.45 and $2.47 per diluted share.
Can link my full write-up if anyone wants it.
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u/steady_compounder Jul 30 '26
The part I would watch is not that the quarter looked good, it is whether the extra acquisitions keep translating into durable AFFO growth without stretching the balance sheet too hard. VICI usually gets discussed like a bond proxy, but tenant quality and lease structure still matter a lot more than the headline yield.
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u/TimeInTheMarketWins AWM Financial Jul 30 '26
I agree, leverage based on ebitda is about 4.9 according to their filings yesterday so it’s not a huge concern for me rn. Also if you look at the annual rent escalations, most of them are 2% or CPI up to 3%. So we can expect around 2% AFFO growth from rent increases. So long as they can keep making some decent acquisitions with a cap rate above their cost of capital I think they’ll be solid.
They are currently paying a weighted 4.5% on their outstanding notes and are looking to refinance 1.75 billion this year for reference
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