VICI Properties Inc. (VICI) Tops Q1 EPS by 1c, Revenues Miss; Offers FY19 EPS Guidance Below Consensus

VICI Properties Inc. (NYSE: VICI) reported Q1 EPS of $0.37, $0.01 better than the analyst estimate of $0.36. Revenue for the quarter came in at $214 million versus the consensus estimate of $224.72 million.

• Total revenues were $214.0 million for the quarter ended March 31, 2019, compared to $218.3 million for the quarter ended March 31, 2018. The quarter ended March 31, 2018 included $17.2 million associated with tenant reimbursement of property taxes no longer recorded as revenue1. Excluding the impact of tenant reimbursement of property taxes, total revenues for the quarter ended March 31, 2019 increased 6.5% compared to the quarter ended March 31, 2018.
• Leasing revenues were $206.7 million for the quarter ended March 31, 2019, representing a 6.4% increase compared to $194.2 million for the quarter ended March 31, 2018.
• Net income attributable to common stockholders was $150.8 million, or $0.37 per diluted share for the quarter ended March 31, 2019, compared to $112.1 million, or $0.33 per diluted share, for the quarter ended March 31, 2018.
• NAREIT-defined Funds From Operations (“FFO”) attributable to common stockholders was $150.8 million, or $0.37 per diluted share, for the quarter ended March 31, 2019, compared to $112.1 million, or $0.33 per diluted share, for the quarter ended March 31, 2018.
• Adjusted Funds From Operations (“AFFO”) attributable to common stockholders was $151.5 million, or $0.37 per diluted share for the quarter ended March 31, 2019, compared to $124.7 million, or $0.36 per diluted share for the quarter ended March 31, 2018.

“Our activities and results in the first quarter are another great example of the high energy our team brings every day to the achievement of our strategic goals,” said Edward Pitoniak, Chief Executive Officer of VICI Properties. “During the quarter, we closed on the acquisition of Margaritaville, demonstrating our ability to partner with best-in-class operators such as Penn National. Subsequent to quarter end, we announced a new partnership with Hard Rock, a global, investment-grade leader in gaming, hospitality and leisure, through our joint acquisition of JACK Cincinnati. This transaction represents another strategic milestone for VICI as, in addition to continued diversification with what will be our third tenant, it expands our footprint into a strong urban gaming market with a newly built asset. Additionally, in quarter one, we continued to build the strongest balance sheet in our sector, both by further reducing our exposure to floating-rate debt and by activating our at-the-market offering program. All of these activities and results once again demonstrate our commitment to providing sector-leading growth and returns to our stockholders through the execution of accretive transactions and the building of a fortress capital structure.”

David Kieske, Chief Financial Officer of VICI Properties, commented, “With the addition of Harrah’s Philadelphia and Margaritaville to our portfolio, we have added $21.0 million and $23.2 million of initial annual rent, respectively, to our revenue base. Our first quarter exemplifies the efficiency and scalability of our triple-net model where we achieved approximately 100% revenue flow through to Adjusted EBITDA with the incremental revenue earned from these new assets in our portfolio.”

GUIDANCE:

VICI Properties Inc. sees FY2019 EPS of $1.45-$1.48, versus the consensus of $1.51.

For earnings history and earnings-related data on VICI Properties Inc. (VICI) click here.

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