VICI Properties Inc. (NYSE: VICI) reported Q4 EPS of $0.21, $0.11 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $237.5 million versus the consensus estimate of $235.3 million.

Fourth Quarter 2019 Financial Results Summary

• Total revenues were $237.5 million for the quarter, compared to $226.0 million for the quarter ended December 31, 2018. The quarter ended December 31, 2018 included $19.9 million associated with tenant reimbursement of property taxes that are no longer recorded as revenue1. Excluding the impact of tenant reimbursement of property taxes, total revenues for the quarter increased 15.2% compared to the quarter ended December 31, 2018.
• Leasing revenues were $229.8 million for the quarter, representing a 15.7% increase compared to $198.6 million for the quarter ended December 31, 2018.
• Net income attributable to common stockholders was $98.6 million for the quarter, compared to $142.5 million for the quarter ended December 31, 2018. Per share net income attributable to common stockholders was $0.21 per diluted share for the quarter, compared to $0.37 per diluted share for the quarter ended December 31, 2018. The decrease in net income and net income per diluted share for the quarter ended December 31, 2019 is primarily related to costs associated with the early termination of the CPLV CMBS debt in November, amortization of debt issuance costs related to the Eldorado transaction and an increased share count, related to the issuance of 50 million shares in June 2019.
• NAREIT-defined Funds From Operations (“FFO”) attributable to common stockholders was $98.6 million, or $0.21 per diluted share, for the quarter compared to $142.5 million, or $0.37 per diluted share, for the quarter ended December 31, 2018. The decrease in FFO and FFO per diluted share for the quarter ended December 31, 2019 is primarily related to costs associated with the early termination of the CPLV CMBS debt in November, amortization of debt issuance costs related to the Eldorado transaction and an increased share count, related to the issuance of 50 million shares in June 2019.
• Adjusted Funds From Operations (“AFFO”) attributable to common stockholders was $176.6 million for the quarter, representing an increase of 26.3% compared to AFFO of $139.9 million for the quarter ended December 31, 2018. AFFO was $0.37 per diluted share for the quarter compared to $0.36 per diluted share for the quarter ended December 31, 2018.

Edward Pitoniak, Chief Executive Officer of VICI, said: “In 2019, through the great work of our team and through the unstinting support of our stockholders, VICI continued to transform itself and its sector. We announced $4.9 billion of acquisitions, representing all arms-length gaming net-lease transactions among publicly-traded companies, and we raised $2.6 billion of equity, including the largest-ever REIT follow-on offering of primary shares. VICI completed its inaugural unsecured notes issuance in November 2019, enhancing our balance sheet and laddering our maturities while replacing the Caesars Palace CMBS secured debt with unsecured debt, marking a key step on our path to an investment grade rating. We increased adjusted EBITDA by over 17%, or $124 million, to $847 million, yielding 100% flow-through on our 2019 adjusted revenue growth of approximately $124 million. We also raised our dividend for the second consecutive year, maintained a solid, low-levered balance sheet and doubled our roster of best-in-class gaming operators by adding Hard Rock International and Century Casinos Inc. as tenants. Our 2019 total return performance of 43.2% puts VICI in the top position amongst gaming net lease REITs and top three amongst all triple net lease REITs for 2019 total return. We increased our total enterprise value by over 45%, to $15.5 billion on December 31, 2019, meaning that in just over two years we have become the third largest American Triple Net REIT by enterprise value.”

2020 Guidance

The Company is providing estimated net income, FFO and AFFO guidance for the full year 2020. The Company estimates that net income attributable to common stockholders for the year ending December 31, 2020 will be between $631.0 million and $653.0 million, or between $1.30 and $1.35 per diluted share, which does not include any pending acquisitions. The Company estimates AFFO for the year ending December 31, 2020 will be between $728.0 million and $748.0 million, or between $1.50 and $1.54 per diluted share, which does not include any pending acquisitions. These per share estimates reflect the dilutive impact of the additional 50,000,000 shares of common stock issued on June 28, 2019, as well as an estimate of the additional shares from the unsettled forward sale agreements that are required to be included in the dilutive earnings per share calculation under the treasury stock method.

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