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# VICI Books $458.0 Million Credit-Loss Charge, $313.2 Million Tied To Caesars Downgrade
- URL: https://www.bullished.co/vici-books-458-0-million-credit-loss-charge-313-2-million-tied-to-caesars-downgrade-d2a1f630/
- Published: 2026-10-28T21:31:42.000Z
- Updated: 2026-10-28T21:31:42.000Z
- Description: A rating-agency downgrade of Caesars debt drove the charge, which cut net income to $342.5 million as VICI authorized a $2.0 billion buyback.
- Author: Matteo Parrino
- Tags: Earnings, VICI, Industry: Real Estate

[VICI Properties](https://www.bullished.co/tag/vici/), the casino and entertainment landlord, recorded a [$458.0 million increase](https://www.sec.gov/Archives/edgar/data/0001705696/000170569626000120/vici-20260930.htm?ref=bullished.co) in its allowance for credit losses in the third quarter, and about $313.2 million of it traces to tenant Caesars, according to its 10-Q filed Wednesday. Net income attributable to common stockholders fell to $342.5 million, and the board authorized a $2.0 billion share buyback.

## Why Caesars drove the charge

The Caesars piece reflects two things, the filing says. A rating agency downgraded Caesars' senior secured debt, based on its view of the company's capital structure once its pending acquisition is complete, and VICI raised its long-term default estimate for Caesars accordingly.

The other part is a larger reserve on two leases: the Joliet lease and the regional lease with Caesars. GAAP counts the renewal periods starting August 1, 2035 as part of the lease term, so VICI had to revise its expected losses for them.

The rest of the increase came from the equity-market performance of certain tenants, updated assumptions on some loans, and annual model updates plus a weaker macroeconomic forecast.

The quarter's line item was a $458.0 million charge, against a $20.2 million decrease a year earlier. VICI's [earnings release](https://www.sec.gov/Archives/edgar/data/0001705696/000170569626000119/viciq32026earningsrelease.htm?ref=bullished.co) called the $478.2 million swing the cause of the drop in net income, which was $0.31 per share against $0.71\. The total allowance reached $2,356.0 million, or 4.73% of amortized cost, from 3.72% at December 31, 2025.

## Cash earnings kept growing

The charge is non-cash. Adjusted funds from operations, the measure VICI steers investors toward, rose 7.5% to $685.2 million, or $0.62 per share. Revenue rose 5.8% to $1.1 billion.

VICI raised its full-year 2026 outlook for that measure to between $2,695 million and $2,705 million, from $2,675 million to $2,695 million.

VICI owns casinos, resorts and other entertainment venues and leases them under long-term triple-net leases, where tenants pay taxes, insurance and maintenance. Caesars and MGM are its guarantor tenants, and the 10-Q puts Caesars at 38% of contractual rent for the nine months.

## A $2.0 billion buyback and 2027 maturities

On October 27, after quarter-end, the board authorized repurchases of up to $2.0 billion of stock through September 30, 2029\. The program does not obligate VICI to buy any set amount and can be suspended or ended at any time.

VICI had $17.2 billion of debt at September 30, including $750.0 million due February 1, 2027 and $750.0 million due February 15, 2027\. In August it issued $1.75 billion of notes to refinance its 2026 maturities.

The company holds its earnings call Thursday at 10:00 a.m. ET.

Management will take questions on the Caesars reserve on that call Thursday, October 29.

### Sources

- [10-Q Filing — VICI Properties (VICI)](https://www.sec.gov/Archives/edgar/data/0001705696/000170569626000120/vici-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — VICI Properties (VICI), Q2 FY2026 filed 2026-07-29 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001705696/000170569626000090/vici-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, viciq32026earningsrelease.htm) — VICI Properties, filed 2026-10-28](https://www.sec.gov/Archives/edgar/data/0001705696/000170569626000119/viciq32026earningsrelease.htm?ref=bullished.co) — SEC EDGAR
- [VICI Properties Q3 earnings preview: 8% yield, rate risks in focus](https://seekingalpha.com/news/4657911-vici-properties-q3-earnings-preview-8-yield-rate-risks-in-focus?ref=bullished.co) — seekingalpha.com
- [VICI Properties to Report Q3 Earnings: What Should Investors Do?](https://finance.yahoo.com/real-estate/articles/vici-properties-report-q3-earnings-164000327.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [VICI Properties Q3 revenue beats, but earnings in line as expenses rise (VICI:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4659528-vici-properties-q3-revenue-beats-but-earnings-in-line-as-expenses-rise?ref=bullished.co) — seekingalpha.com
- [VICI Properties vs. Realty Income: Which REIT Is a Better Buy Now?](https://finance.yahoo.com/real-estate/articles/vici-properties-vs-realty-income-151200001.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [Real estate stocks trade mixed as earnings releases pick pace (XLRE:NYSEARCA) | Seeking Alpha](https://seekingalpha.com/news/4656716-real-estate-stocks-trade-mixed-as-earnings-releases-pick-pace?ref=bullished.co) — seekingalpha.com

### More on VICI Properties

- [VICI Lifts 2026 Cash-Earnings Outlook And Authorizes $2.0 Billion Buyback As Credit Charge Cuts Net Income 55.1%](https://www.bullished.co/vici-lifts-2026-cash-earnings-outlook-and-authorizes-2-0-billion-buyback-as-credit-charge-e1024cfb/)

[All VICI Properties (VICI) coverage →](https://www.bullished.co/tag/vici/)