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What to Expect From VICI Properties (VICI) in Q4 Earnings?
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VICI Properties Inc. (VICI - Free Report) is slated to report fourth-quarter and full-year 2023 earnings results on Feb 22 after the closing bell. Its quarterly results are expected to exhibit growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of market-leading gaming, hospitality and entertainment destinations, reported an adjusted FFO per share of 54 cents, beating the Zacks Consensus Estimate by 1.89%.
Over the preceding four quarters, the company’s adjusted FFO per share surpassed the Zacks Consensus Estimate on all occasions, the average beat being 1.93%. This is depicted in the graph below:
VICI Properties owns a geographically diverse portfolio, which includes a mix of gaming, hospitality and entertainment assets that are located in the high barriers-to-entry markets across the United States and Canada. It enjoys ownership of three of the most iconic entertainment facilities on the Las Vegas Strip, namely Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
The rebound in demand for its gaming facilities and other hospitality and entertainment destinations is likely to have aided VICI Properties’ performance in the quarter.
VICI’s healthy relationships with the highest quality experiential operators are likely to have paid off well. The long-term triple-net leases with such tenants that are embedded with CPI-based rent escalators are likely to have aided stable revenue generation during the quarter, boosting its top-line growth.
Moreover, continuing with its accretive asset-base expansion, in the fourth quarter, VICI entered the family entertainment sector through the acquisition of 38 bowling entertainment centers in a sale-leaseback transaction with Bowlero. During the quarter, VICI also expanded investments with existing partners Chelsea Piers and Cabot.
Projections
The Zacks Consensus Estimate for quarterly revenues is pegged at $926.06 million, suggesting growth of 20.28% from the prior-year quarter’s reported figure.
Income from sales-type leases is currently pegged at $510.37 million, indicating an increase of 2% from the prior quarter and 32.1% from the year-ago quarter. Income from lease financing receivables and loans stands at $382.40 million, up 1% sequentially and 7.5% from the year-ago period.
Revenues from golf operations are estimated at $10.22 million, up from $7.43 million reported in the prior quarter and $10.11 million in the year-ago period.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 55 cents over the past month. However, the figure indicates growth of 7.84% from the year-ago quarter’s reported figure.
For 2023, VICI Properties estimated AFFO in the range of $2,170 million-$2,180 million or between $2.14 and $2.15 per share.
For the full year, the Zacks Consensus Estimate for AFFO per share is pegged at $2.15. The figure indicates an 11.4% increase year over year on 38.67% year-over-year growth in revenues to $3.61 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for VICI Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
VICI Properties currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and American Homes 4 Rent (AMH - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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What to Expect From VICI Properties (VICI) in Q4 Earnings?
VICI Properties Inc. (VICI - Free Report) is slated to report fourth-quarter and full-year 2023 earnings results on Feb 22 after the closing bell. Its quarterly results are expected to exhibit growth in revenues and funds from operations (FFO) per share.
In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of market-leading gaming, hospitality and entertainment destinations, reported an adjusted FFO per share of 54 cents, beating the Zacks Consensus Estimate by 1.89%.
Over the preceding four quarters, the company’s adjusted FFO per share surpassed the Zacks Consensus Estimate on all occasions, the average beat being 1.93%. This is depicted in the graph below:
VICI Properties Inc. Price and EPS Surprise
VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote
Factors at Play
VICI Properties owns a geographically diverse portfolio, which includes a mix of gaming, hospitality and entertainment assets that are located in the high barriers-to-entry markets across the United States and Canada. It enjoys ownership of three of the most iconic entertainment facilities on the Las Vegas Strip, namely Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
The rebound in demand for its gaming facilities and other hospitality and entertainment destinations is likely to have aided VICI Properties’ performance in the quarter.
VICI’s healthy relationships with the highest quality experiential operators are likely to have paid off well. The long-term triple-net leases with such tenants that are embedded with CPI-based rent escalators are likely to have aided stable revenue generation during the quarter, boosting its top-line growth.
Moreover, continuing with its accretive asset-base expansion, in the fourth quarter, VICI entered the family entertainment sector through the acquisition of 38 bowling entertainment centers in a sale-leaseback transaction with Bowlero. During the quarter, VICI also expanded investments with existing partners Chelsea Piers and Cabot.
Projections
The Zacks Consensus Estimate for quarterly revenues is pegged at $926.06 million, suggesting growth of 20.28% from the prior-year quarter’s reported figure.
Income from sales-type leases is currently pegged at $510.37 million, indicating an increase of 2% from the prior quarter and 32.1% from the year-ago quarter. Income from lease financing receivables and loans stands at $382.40 million, up 1% sequentially and 7.5% from the year-ago period.
Revenues from golf operations are estimated at $10.22 million, up from $7.43 million reported in the prior quarter and $10.11 million in the year-ago period.
The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 55 cents over the past month. However, the figure indicates growth of 7.84% from the year-ago quarter’s reported figure.
For 2023, VICI Properties estimated AFFO in the range of $2,170 million-$2,180 million or
between $2.14 and $2.15 per share.
For the full year, the Zacks Consensus Estimate for AFFO per share is pegged at $2.15. The figure indicates an 11.4% increase year over year on 38.67% year-over-year growth in revenues to $3.61 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for VICI Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
VICI Properties currently carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Extra Space Storage Inc. (EXR - Free Report) and American Homes 4 Rent (AMH - Free Report) — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Extra Space Storage, scheduled to report quarterly numbers on Feb 27, has an Earnings ESP of +0.70% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Homes 4 Rent, slated to release quarterly numbers on Feb 22, has an Earnings ESP of +1.68% and carries a Zacks Rank of 3 at present.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.