News

VICI Properties Inc. VICI is slated to report first-quarter 2024 earnings results on May 1 after the closing bell. Its quarterly results are expected to exhibit growth in revenues and funds from operations (FFO) per share.

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 adjusted FFO per share of 55 cents, in line with the Zacks Consensus Estimate.

Over the preceding four quarters, the company’s adjusted FFO per share surpassed the Zacks Consensus Estimate on three occasions and met on the other, the average beat being 1.43%. This is depicted in the graph below:

VICI Properties Inc. Price and EPS Surprise

Factors at Play

VICI Properties owns a geographically diverse portfolio, which includes a mix of gaming, hospitality and entertainment assets that are located in the high barriers-to-entry markets across the United States and Canada. It enjoys ownership of three of the most iconic entertainment facilities on the Las Vegas Strip, namely Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.

VICI Properties’ performance in the first quarter is likely to be driven by the rebound in demand for its gaming facilities and other hospitality and entertainment destinations. The company is poised to benefit from its healthy relationships with the highest quality experiential operators. The long-term triple-net leases with such tenants that are embedded with CPI-based rent escalators are likely to have aided stable revenue generation during the quarter, boosting its top-line growth.

Since its formation in 2017, the company has announced around $36 billion of domestic and international investments across gaming & other experiential assets. These investments are expected to boost the company’s top and bottom lines in the first quarter.

Projections

The Zacks Consensus Estimate for quarterly revenues is pegged at $942.27 million, which suggests growth of 7.4% from the prior-year quarter’s reported figure.

Income from sales-type leases is currently pegged at $511.46 million, which indicates an increase from $506.22 million in the prior quarter and $478.39 million in the year-ago quarter. Income from lease financing receivables and loans stands at $401.25 million, up from $396.81 million in the prior period and $371.07 million in the year-ago period.

Revenues from golf operations are estimated at $10.25 million, slightly down from $10.55 million reported in the prior quarter but up from $9.85 million in the year-ago period.

The Zacks Consensus Estimate for the quarterly FFO per share has been unchanged at 56 cents over the past month. However, the figure indicates growth of 5.7% from the year-ago quarter’s reported figure.

Here Is What Our Quantitative Model Predicts:

Our proven model does not conclusively predict a surprise in terms of FFO 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 FFO beat, which is not the case here.

VICI Properties currently carries a Zacks Rank of 3 and has an Earnings ESP of -0.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks That Warrant a Look

Here are two stocks from the broader REIT sector — Public Storage PSA and Invitation Homes Inc. INVH — you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.

Public Storage is slated to report quarterly numbers on Apr 30. PSA has an Earnings ESP of +0.50% and carries a Zacks Rank of 3 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Invitation Homes Inc. is scheduled to report quarterly numbers on Apr 30. INVH has an Earnings ESP of +0.77% and a Zacks Rank of 3 presently.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.