VICI PROPERTIES INC. Q3 FY2025 earnings call

• Ed Pitoniak highlighted Q3 2025 AFFO per share growth of 5.3% vs Q3 2024, emphasizing resilience and resourcefulness in growing revenues and profits without significantly growing capital base. - John Payne announced adding Clairvest as the 14th tenant, noted casino gaming as top focus, believed in Las Vegas' durability despite short-term headwinds, and mentioned university sports as a potential opportunity. - David Kieske reported Q3 AFFO per share of $0.60, G&A at 1.6% of total revenues, discussed debt details including total debt of $17.1 billion and net debt to adjusted EBITDA at 5x.

No detailed product segment financial performance discussed in the transcript.

• Updated 2025 AFFO per share guidance: $2.36 to $2.37 per diluted common share, up from prior guidance of $2.35 to $2.37 per share, with the lower end increased by $0.01. - Midpoint of updated guidance expects year-over-year AFFO per share growth of 4.6%.

• Idiosyncratic market factors affecting REITs and gaming operators. - Potential for oversupply, obsolescence, and other factors leading to real estate capital destruction. - Market rotations and their impact on stock price and capital allocation.

Q: Anthony Paolone from JPMorgan asked about lease amendments and approach with tenants.

A: Ed and John discussed focusing on win-win solutions and working closely with a few tenants to address challenges.

Q: Greg McGinniss from Scotiabank asked about non-gaming conversations and Las Vegas locals market.

A: John talked about university sports opportunities and VICI's interest in expanding into the Las Vegas locals market.

Q: Barry Jonas from Truist Securities asked about M&A expectations and comparison of new lease with Clairvest vs prior MGM lease.

A: David and Ed discussed M&A participation expectations and that new lease with smaller tenant generally looks for higher coverage than prior master lease with larger tenant.

Q: Bennett Rose from Citi asked about future deals with Clairvest and loan book status.

A: John expressed hope for more deals with Clairvest and Gabe stated all borrowers are current on loan payments.

Q: Haendel St. Juste from Mizuho asked about MGM's New York City license withdrawal and implications for Yonkers asset.

A: Ed discussed MGM's capital allocation decision and VICI's potential service to New York contestants, emphasizing new project in New York needs to be highly profitable.

Q: David Katz of Jefferies asked about sports facilities, cap rates, and comps.

A: Ed and John talked about university sports infrastructure opportunities, lack of historical comps, and VICI's openness to different structures.

Q: Chris Darling at Green Street asked about theme park real estate and Northfield lease coverage ratios.

A: John and Ed discussed VICI's interest in theme parks, focus on readable real property, and contractual protections ensuring economic advantage.

Q: Chad Beynon from Macquarie asked about Caesars Forum Convention Center and tribal lending.

A: John and David discussed VICI's belief in Las Vegas' convention strength and tribal lending considerations, noting credit investment focus with tribes.

Q: Daniel Guglielmo from Capital One asked about Las Vegas property market and expansion on Strip.

A: John stated VICI would expand on Strip for right property and operator, but timing of properties coming to market is hard to predict.

Q: James Kammert from Evercore ISI asked about VICI's competitive advantage in university sports and deal structures.

A: Gabe and Ed discussed VICI's long-term capital horizon aligning with universities and flexibility in deal structures, including leasehold vs ownership.