VICI Properties Inc. (VICI), headquartered in New York, is a real estate investment trust (REIT) focusing on gaming, hospitality, and entertainment properties. Valued at $32.2 billion by market cap, the company owns 93 properties across the U.S. and Canada, including iconic Las Vegas landmarks like Caesars Palace, MGM Grand, and the Venetian Resort, with 54 gaming venues, and 500+ dining and entertainment spots. The gaming and entertainment REIT is expected to announce its fiscal 2024 fourth-quarter earnings after the market closes on Thursday, Feb. 20.
Ahead of the event, analysts expect VICI to report an FFO of $0.57 per share on a diluted basis, up 3.6% from $0.55 per share in the year-ago quarter. The company beat or matched Wall Street’s EPS estimates in each of its last four quarterly reports.
For the full year, analysts expect VICI to report an FFO of $2.26, up 5.1% from $2.15 in fiscal 2023. Its EPS is expected to rise 2.2% year over year to $2.31 in fiscal 2025.
VICI stock has underperformed the S&P 500’s ($SPX) 22.9% gains over the past 52 weeks, with shares up marginally during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 9% gains over the same time frame.
VICI's underperformance compared to the broader market stems from investor concerns about its non-gaming expansion, expected refinancing challenges from higher interest rates, inflationary pressures, and overall economic uncertainty.
On Oct. 31, VICI shares closed down by 2% after reporting its Q3 results. Its adjusted FFO stood at $0.57 per share, up 5.6% from the year-ago quarter. VICI’s revenue was $964.7 million, rose 6.7% year over year.
Analysts’ consensus opinion on VICI stock is very bullish, with a “Strong Buy” rating overall. Out of 22 analysts covering the stock, 17 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and four give a “Hold.” VICI’s average analyst price target is $35.40, indicating a potential upside of 15.9% from the current levels.
