VICI Lifts 2026 Cash-Earnings Outlook And Authorizes $2.0 Billion Buyback As Credit Charge Cuts Net Income 55.1%
The casino landlord raised full-year AFFO guidance even as third-quarter net income fell to $342.5 million on a non-cash credit-loss allowance change.
VICI Properties, the real estate investment trust that owns Caesars Palace Las Vegas, MGM Grand and the Venetian, raised its full-year 2026 forecast for adjusted funds from operations (AFFO), its core cash-earnings measure, to $2,695 million to $2,705 million on Wednesday. Third-quarter net income to common stockholders fell 55.1% to $342.5 million, a drop the company tied to a non-cash change in its credit-loss allowance.
Cash earnings up, reported profit down
Net income came to $0.31 per share, against $762.0 million, or $0.71 per share, a year earlier, according to the earnings release. The company said the decline was driven by a $478.2 million aggregate change in the credit-loss allowance compared with the year-earlier quarter. The current-quarter allowance charge was $458.0 million, versus a $20.2 million benefit a year ago.
AFFO rose 7.5% to $685.2 million, or $0.62 per share, up 4.3% from $0.60. Revenue climbed 5.8% to $1.1 billion.
The new guidance of $2.47 to $2.48 per share compares with a prior range of $2,675 million to $2,695 million, or $2.45 to $2.47. The company gives no net income guidance, saying it cannot predict future credit-loss allowance changes.
A $2.0 billion repurchase authorization
The board authorized a buyback of up to $2.0 billion on October 27, running through September 30, 2029. It does not obligate VICI to buy any set amount and can be suspended at any time.
VICI declared a quarterly dividend of $0.46 per share, up 2.2% from a year earlier. At September 30 it held $270.3 million in cash and about $2.2 billion available on its revolving credit facility, for roughly $2.5 billion of liquidity. Total debt was about $17.2 billion.
Refinancing and a new Alberta tenant
VICI owns casinos, resorts and other entertainment venues and leases them to operators under long-term triple-net leases, in which the tenant pays property taxes, insurance and maintenance. As of December 31, 2025, Caesars and MGM were its largest tenants, at 39% and 35% of annualized rent.
In August it issued $1.75 billion of senior notes to redeem all of its remaining 2026 maturities, at an adjusted weighted average interest rate of 5.42%. On September 28 it agreed to a new triple-net lease with Highfield Investment Group tied to Century Casinos' sale of two Alberta racetrack operations. The lease carries initial annual base rent of C$10.7 million, and the rent under the Century lease falls by the same amount, so VICI's aggregate rent is unchanged.
CEO Edward Pitoniak said the quarter showed "the flow-through efficiency of our business model."
VICI hosts its earnings call Thursday at 10:00 a.m. ET, and the Highfield lease is expected to close in the fourth quarter of 2026 or the first quarter of 2027.
