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What to Expect From VICI Properties (VICI) in Q2 Earnings?

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VICI Properties Inc. (VICI - Free Report) is slated to report second-quarter 2024 earnings results on Jul 31 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 56 cents, in line with the Zacks Consensus Estimate.

Over the preceding four quarters, the company’s adjusted FFO per share surpassed the Zacks Consensus Estimate on two occasions for as many in-line performances, the average beat being 0.95%. This is depicted in the graph below:

VICI Properties Inc. Price and EPS Surprise

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.

VICI has announced around $37 billion of domestic and international investments across gaming & other experiential assets since its formation in 2017. These investments are expected to have boosted the company’s top and bottom lines in the second quarter. 

In the second quarter, VICI Properties' performance is expected to have been influenced by the resurgence in demand for its gaming facilities and other hospitality and entertainment venues. The company stands to gain from its strong partnerships with top-tier experiential operators. The long-term triple-net leases with these tenants, which include CPI-based rent escalators, are likely to have contributed to stable revenue generation during the quarter, supporting its top-line growth.

Projections

The Zacks Consensus Estimate for quarterly revenues is pegged at $956.61 million, which suggests growth of 6.51% from the prior-year quarter’s reported figure.

Income from sales-type leases is currently pegged at $518.22 million, which indicates an increase from $512.77 million in the prior quarter and $495.36 million in the year-ago quarter. Income from lease financing receivables and loans stands at $410.21 million, up from $409.30 million in the prior period and $373.13 million in the year-ago period.

Revenues from golf operations are estimated at $11.46 million, up from $10.10 million reported in the prior quarter and from $11.15 million in the year-ago period.

The Zacks Consensus Estimate for the quarterly adjusted FFO per share has been unchanged at 56 cents over the past month. However, the figure indicates growth of 3.7% from the year-ago quarter’s reported figure.

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 -0.36%. 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 — Simon Property Group, Inc. (SPG - Free Report) and Ventas, Inc. (VTR - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.

Simon Property Group is slated to report quarterly numbers on Aug 5. SPG has an Earnings ESP of +0.44% and carries a Zacks Rank of 3 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ventas is scheduled to report quarterly numbers on Aug 1. VTR has an Earnings ESP of +1.76% and a Zacks Rank of 2 presently.

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.


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