VICI Properties Inc. VICI is slated to report fourth-quarter and full-year 2024 earnings results on Feb. 20, after the closing bell. Its quarterly results are expected to exhibit growth in revenues and adjusted funds from operations (AFFO) per share.

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In the last reported quarter, this New York-based experiential REIT, which owns the portfolios of market-leading gaming, hospitality and entertainment destinations, reported an AFFO per share of 57 cents, beating the Zacks Consensus Estimate by a penny.

Over the preceding four quarters, the company’s AFFO per share surpassed the Zacks Consensus Estimate on two occasions for as many in-line performances, the average surprise being 0.90%. This is depicted in the graph below:

VICI Properties Inc. Price and EPS Surprise

VICI Properties Inc. price-eps-surprise | VICI Properties Inc. Quote

Factors to Consider Ahead of VICI’s Results

VICI Properties owns a geographically diverse portfolio, which includes a mix of gaming, hospitality and entertainment assets that are located across the United States and Canada.

In the fourth quarter, VICI Properties' performance is expected to have been influenced by the resurgence in demand for its gaming facilities and other hospitality and entertainment venues.

Further, the company stands to gain from its strong partnerships with top-tier experiential operators. The long-term triple-net leases with these operators are likely to have contributed to stable revenue generation during the quarter, supporting its top-line growth.

However, high interest expenses during the fourth quarter are likely to have been a spoilsport for VICI Properties.

Q4 Projections for VICI

The Zacks Consensus Estimate for quarterly revenues is pegged at $974.9 million, which suggests growth of 4.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for income from sales-type leases is currently pegged at $525.3 million, which indicates an increase from $518.7 million in the prior quarter and $506.2 million in the year-ago quarter. Income from lease financing receivables and loans stands at $419.7 million, up from $419.1 million in the prior period and $396.8 million in the year-ago period.

The Zacks Consensus Estimate for revenues from golf operations are estimated at $10.9 million, up from $7.6 million reported in the prior quarter and $10.6 million in the year-ago period.

The consensus mark for other income currently stands at $19.2 million, implying a decline from $19.3 million from the prior quarter but above the $18.3 million reported in the prior-year period.

However, the company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for the quarterly AFFO per share has remained unchanged at 57 cents over the past two months. However, the figure indicates growth of 3.6% from the year-ago quarter’s reported figure.

VICI’s 2024 Projections

For 2024, VICI Properties estimated AFFO per share in the range of $2.24 and $2.26.

For the full year, the Zacks Consensus Estimate for AFFO per share is pegged at $2.26. The figure indicates an 5.1% increase year over year on 6.5% year-over-year growth in revenues to $3.85 billion.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict a surprise in terms of AFFO per share for VICI Properties this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here.

VICI Properties currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks That Warrant a Look

Here are two other stocks from the broader REIT sector — Host Hotels & Resorts HST and Ryman Hospitality Properties RHP — that you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.

Host Hotels, slated to release quarterly numbers on Feb. 19, has an Earnings ESP of +1.53% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ryman Hospitality, scheduled to report quarterly numbers on Feb. 20, has an Earnings ESP of +4.91% and carries a Zacks Rank of 3.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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