VICI Q2 2025 earnings preview: Expenses expected to remain a drag

VICI Properties (NYSE:VICI) is scheduled to announce Q2 earnings results on Wednesday, July 30th, after market close, and expenses are estimated to bite into AFFO growth again.

Last quarter, the REIT that invests in casino and entertainment properties posted AFFO per share that fell short of the average analyst estimate as expenses jumped during the quarter, although revenues came in better than expected.

AFFO per share of $0.58, missing the $0.68 expected, held steady from the prior quarter and edged up from $0.56 a year before. Revenue of $984.2M, vs. $977.0M consensus, rose from $976.1M in Q4 and $951.5M in Q1 2024.

Operating expenses jumped to $228.7M, compared with $145.2M in Q4 and $150.4M in Q1 2024.

Still, the New York-based REIT nudged up its 2025 AFFO per share guidance to $2.33-$2.36 (midpoint: $2.35) from $2.32-$2.35 (midpoint $2.34). However, the metric continues to fall short of the Wall Street consensus of $2.51.

For the second quarter, consensus FFO estimate is $0.65 (-8.12% Y/Y) and the consensus revenue estimate is $991.90M (+3.65% Y/Y).

Expenses are expected to continue to weigh on the Q2 earnings. Interest expenses are estimated to reach $211.51 (+2.79% Y/Y) for the quarter, according to Visible Alpha.

The Visible Alpha consensus for acquisitions and impairment costs stands at $0.53M (+103.43% Y/Y) and other operating expenses at $35.04M (+181.49% Y/Y). 

Returns

During a recent industry conference, management stressed its focus on total return growth.

"Growing our dividend is a major focus along with AFFO growth," management said at the Nareit REITweek conference in New York.

VICI, with a dividend yield of 5.38%, topped a curated list that highlighted ten U.S.-listed stocks with market capitalizations exceeding $10B, all of which are delivering positive performance in the 2025 trading year.

The stocks had a strong track record across key dividend metrics, earning Seeking Alpha grades between B- and A+ for dividend safety, dividend growth, dividend yield, and dividend consistency.

• Details on VICI's dividend scorecard can be found here.

The stock is up ~12% year-to-date.

VICI, with a market capitalization of ~$34.33B, bags a Buy rating from the Wall Street community, Seeking Alpha authors, and the Quant Rating system.

Options trading implies ~3.7% price swing after the reports are released.

Short interest on the stock stood at 2.99% of the total float as of July 24.

Insiders have been net buyers, with zero insider sell transactions reported in the last three months against six open market buys.