VICI Properties Inc (NYSE:VICI), an experiential real estate investment trust, reported financial results for the fourth quarter and full year ended December 31, 2025. The company's core operational performance showed growth, though its headline earnings per share figures came in below Wall Street expectations, leading to a negative reaction in after-hours trading.
Earnings and Revenue Versus Estimates
For the critical fourth quarter, VICI's results presented a mixed picture when measured against analyst forecasts. The company reported total revenues of $1.01 billion, which fell short of the consensus estimate of approximately $1.03 billion. More notably, the company's Adjusted Funds from Operations (AFFO) per share—a key profitability metric for REITs—was $0.60. This missed the analyst estimate of $0.698 by a significant margin.
The market's immediate reaction reflected this earnings miss. Following the release, VICI's stock traded down approximately 2.2% in after-hours activity. This contrasts with the stock's generally positive performance in the lead-up to the report, having gained over 6% in the past month.
Full-Year Performance and Strategic Highlights
While the quarterly comparison to estimates was unfavorable, the full-year 2025 results demonstrated underlying growth. The company increased its total annual revenues by 4.1% to $4.0 billion. More importantly, AFFO attributable to common stockholders grew 6.6% to $2.5 billion, with AFFO per share rising 5.1% to $2.38.
Beyond the financials, the press release heavily emphasized strategic expansion and new partnerships forged throughout the year. Management highlighted approximately $2.1 billion in capital commitments at a weighted average initial yield of 8.9%. Key transactions included:
- A $1.16 billion agreement to acquire seven casino properties in Nevada from Golden Entertainment.
- A strategic relationship with Cain and Eldridge Industries, launching with a $450 million mezzanine loan investment in the One Beverly Hills development.
- A commitment of up to $510 million in delayed draw term loans for the North Fork Mono Casino & Resort development with Red Rock Resorts.
- An agreement to enter a new lease with Clairvest for the MGM Northfield Park property in Ohio.
CEO Edward Pitoniak framed these deals as emblematic of the company's "enduring strategic ethos" of building long-term partnerships.
Balance Sheet, Dividend, and Forward Guidance
VICI ended the year with a strong liquidity position of approximately $3.2 billion, including cash, short-term investments, and available credit. The company also announced its eighth consecutive annual dividend increase, raising the quarterly cash dividend by 4.0% to $0.45 per share.
The company provided AFFO guidance for the full year 2026, forecasting a range of $2.59 billion to $2.625 billion, or $2.42 to $2.45 per diluted share. This outlook can be compared to current analyst expectations, which estimate sales of $4.19 billion for 2026. It is important to note that analyst revenue estimates and the company's AFFO guidance are different financial measures, but the company's per-share AFFO guidance appears to set a baseline for growth relative to the $2.38 per share achieved in 2025.
Market Reaction and Path Forward
The post-earnings sell-off suggests investor focus zeroed in on the quarterly EPS miss relative to high expectations. However, the company's report also painted a picture of a business executing on a disciplined growth strategy, securing new high-yield investments, and maintaining a robust balance sheet. The forward guidance indicates management expects continued, albeit measured, per-share earnings growth in the year ahead.
The divergence between the negative short-term market reaction and the company's strategic accomplishments will likely define the investment debate around VICI in the coming weeks. Investors will weigh the quarterly earnings shortfall against the visible pipeline of future income from newly announced deals.
For a detailed look at historical earnings, future estimates, and analyst projections, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
