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VICI Properties has lowered its 2026 adjusted FFO forecast, expecting USD 2.42-2.45 per share, below analysts USD 2.52 per share estimate. Weak demand, inflation, rising costs, and increased competition in the hospitality and entertainment real estate sector are affecting growth and margins. For the fourth quarter, AFFO came in at USD 0.60 per share, slightly under analyst expectations, while revenue rose to USD 1.01 billion from USD 976.1 million a year earlier. The company's sale-leaseback model continues to support immediate income.
VICI Properties has projected its 2026 adjusted funds from operations (AFFO) to fall short of Wall Street expectations, citing weak demand and ongoing macroeconomic uncertainty. The company's shares declined over 3% in after-hours trading following the announcement. Advertisement
The New York City-based real estate investment trust, which primarily operates in the hospitality and entertainment sector, noted that demand for its offerings has weakened due to a combination of a slowing macro environment and increased competition from new market entrants, contributing to oversupply in the sector. Rising inflation has limited growth in new customers, while higher operating costs and greater reliance on discounting have added pressure on margins.
For the full year, VICI expects adjusted FFO to range between USD 2.42 and USD 2.45 per share, below analysts consensus of USD 2.52 per share, according to LSEG data. The company follows a sale-leaseback model, acquiring existing real estate assets and leasing them back to operators, a strategy that historically provides an immediate boost to income.
In the fourth quarter, ending December 31, VICI reported AFFO of USD 0.60 per share, slightly below the analysts average estimate of USD 0.61 per share. Total revenue increased to USD 1.01 billion, up from USD 976.1 million the previous year, meeting market expectations.
This trend reflects the broader challenges faced by hospitality-focused REITs, as economic uncertainties, rising operational expenses, and competitive pressures continue to influence growth projections.
Source Reuters
5th Jun, 2025
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