VICI Properties Boosts 2023 FFO Guidance
VICI Properties Inc. (NYSE: VICI), the largest U.S. casino landlord, raised its full-year monetary resource from trading operations (FFO) steering late Wednesday followers its third-quarter earnings report.
The owner of Caesars Palace lifted its 2023 FFO calculate to $2.14 to $2.15 a part from a prior range of $2.11 to $2.14. During the September quarter, the existent land investment trust (REIT) generated FFO of 54 cents per share, upwardly from 49 cents a yr earlier. That thump the consensus estimation of 53 cents. Revenue increased to $904.3 meg from $751.5 million, whacking the consensus forecast of $902 million.
VICI’s 3rd canton financial execution reflects our sustained, sustainable commitment to accretive ontogeny and capital letter deployment through acquisitions and strategic funding activity, exemplified past or so 20% revenue growing and nearly 11% development inward AFFO per part year-over-year,” said CEO Edward I Pitoniak inward a statement.
New York-based VICI, a member of the S&P 500, owns the real demesne assets of 54 gaming venues crossways the U.S. and Canada. It’s also the largest landowner on the Las Vegas Strip, where — inwards addition to Caesars Palace — it owns the Venetian and related assets, and the belongings assets of most MGM-operated casino hotels.
Why VICI FFO Bullishness Matters
REITs same VICI aren’t structured as traditional corporations. Rather, REITs’ earnings aren’t taxed past the federal government. But the trade-off for that favourable treatment is that the companies must make up come out at least 90% of those earnings inward the signifier of dividends.
That requirement prompts investors to pass judgment tangible acres companies based on how a great deal hard cash is generated, which FFO measures. The metric is estimated by adding sack up income, amortization, and depreciation, and subtracting property sales.
VICI’s client roster includes Phoebus Global Management, Century Casinos, and Hard John Rock International, among others, confirming the gaming REIT is diverse crossways regions and cassino sizes. MGM and Caesars, the two largest operators on the Las Vegas Strip, combine for 76% of VICI’s familiarized revenue.
“During the triplet months ended Sept. 30, 2023, the Company entered into forward-starting interest group value swap agreements with an aggregated notional amount of $150.0 million, intended to trim the variance in hereafter hard cash flows for a forecasted issuance of long-term debt o'er a upper limit full point ended Dec 2024,” according to the statement.
The New York-based REIT had roughly $17.1 one million million in tally debt as of the destruction of the 3rd quarter.
Acquisitions Boosting VICI FFO
VICI has long been unity of the to the highest degree acquisitive companies in the commercial-grade tangible landed estate space, and deal-making is one accelerator behind the REIT’s bolstered financial outlook.
Among other third-quarter transactions, VICI wrapped upward the purchase of the tangible acres of Rocky Gap Casino Resort inwards Flintstone, Md., and the existent acres tied to quadruplet casinos inwards Canada.
The REIT concluded the canton with $3.7 one thousand million inward liquidity, comprised of $510.9 billion inward hard cash and hard cash equivalents, $807.2 million of estimated sack proceeds uncommitted upon closure of salient frontwards sale agreements, and more or less $2.3 one thousand million of availability below the revolving credit facility,” it added inwards the statement.
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