VICI Properties Q2 Earnings Call Highlights

VICI’s Q2 AFFO rose 4.6% year over year to $0.62 per share , and the company raised the low end of its 2026 AFFO-per-share guidance to $2.45–$2.47, implying 3.4% growth at the midpoint. The REIT ended the quarter with $17.2 billion of debt, leverage of approximately 4.9 times annualized adjusted EBITDA and $2.5 billion of liquidity, remaining below its target leverage range. VICI expanded into new investment areas through its first Club Med and Caribbean transaction, funding a $20 million resort acquisition and approximately $55 million redevelopment, while continuing to pursue gaming, hospitality and sports-related opportunities.

VICI Properties NYSE: VICI reported second-quarter adjusted funds from operations, or AFFO, of $0.62 per share, up 4.6% from $0.60 a year earlier, while raising the low end of its full-year 2026 AFFO-per-share guidance. The experiential real estate investment trust said it now expects 2026 AFFO of $2.675 billion to $2.695 billion, or $2.45 to $2.47 per diluted common share. The updated range increased the low end of prior per-share guidance by $0.01. At the midpoint, the company expects year-over-year AFFO-per-share growth of 3.4%.

Chief Financial Officer David Kieske said the company had $17.2 billion of total debt as of June 30 and net debt to annualized second-quarter adjusted EBITDA of about 4.9 times, below its stated target leverage range of 5 times to 5.5 times. VICI reported approximately $2.5 billion of liquidity, consisting of $288 million of cash and $2.2 billion available under its revolving credit facility.

VICI highlighted its new partnership with Club Med, which involves the acquisition and redevelopment of the Carambola Beach Resort in St. Croix. The transaction represents VICI’s first build-to-suit investment and its first property acquisition in the Caribbean, President and Chief Operating Officer John Payne said. At closing, VICI funded the $20 million acquisition of the resort property and will fund Club Med’s approximately $55 million redevelopment. Club Med is expected to operate the site under its premium Exclusive Collection brand, with a targeted opening in the fourth quarter of 2027.

Chief Executive Officer Ed Pitoniak said the company views its initial investments with new operators as foundations for potentially broader relationships. He noted that Club Med has stated a goal of expanding its portfolio from 60 to 100 destinations over the next several years. “When we make a first investment with a new partner, we are highly focused on the foundation we are building for potential future investment,” Pitoniak said.

The company also completed several previously announced transactions during the quarter, including: A $1.16 billion sale-leaseback transaction with Golden Entertainment. The commencement of a new lease with Clairvest at Northfield Park. The acquisition of Gamehost real estate in Alberta for approximately CAD 200 million alongside existing partner PURE. Payne said the transactions added Clairvest, Golden Entertainment and Club Med as VICI’s 14th, 15th and 16th tenants, respectively.

Management said Las Vegas Strip gaming revenue was running ahead of the prior year on a year-to-date basis, while room rates continued to demonstrate the market’s pricing power. Payne pointed to demand from entertainment, professional sports, conventions and potential future developments, including the prospect of an NBA franchise. VICI owns nearly 6 million square feet of conference, convention and trade-sh...