VICI Revenue Rises 5.8% in Third Quarter as Net Income Falls on Credit Provision
Key Facts
VICI Properties said its revenue in the third quarter of 2026 rose 5.8% year over year to $1.1 billion, compared with $1 billion in the same period of 2025. Net income, by contrast, declined year over year, mainly because of a change in the allowance for expected credit losses, the company said. In its earnings release, it said the aggregate change in the allowance was $478.2 million compared with the third quarter of last year. The divergence between revenue growth and lower net income puts the credit provision at the center of the results. VICI is scheduled to discuss the results on an investor call on October 29, 2026, at 10:00 a.m. Eastern time.
On an adjusted operating basis, VICI raised its outlook for adjusted funds from operations, or AFFO, for the year ending December 31, 2026, to $2.47–$2.48 per share, from $2.45–$2.47 previously. The expected total range is now $2.695–$2.705 billion, compared with $2.675–$2.695 billion in its previous guidance. The higher outlook presents a different picture from the decline in net income, as the company kept its estimate for adjusted performance above its earlier forecast. The comparison reflects an update to the full-year outlook following the third-quarter results, rather than the quarter alone. The update accompanies a quarterly cash dividend of $0.46 per share, up 2.2% year over year.
The company said the CECL allowance was the absolute driver of the year-over-year decline in net income, with an aggregate change of $478.2 million between the third quarters of 2025 and 2026. This indicates that the year-over-year comparison in net income was affected by movement in the credit allowance while revenue increased. The information in the release did not provide a net income figure among the facts available here, leaving the company's explanation of the allowance as the direct detail available on the decline. This distinction between revenue, net income and AFFO provides context for the figures management will discuss on the earnings call. The call is scheduled for the day after the results announcement, on October 29 at 10:00 a.m. Eastern time.
On financing, VICI issued $1.75 billion of investment-grade senior notes in August to refinance 2026 maturities. The chief executive said the weighted average adjusted interest rate on the issuance was 5.42% after hedging. The issuance puts the refinancing cost in the context of the company's financial position in the quarter in which it raised its AFFO outlook. These figures show the size and adjusted cost of the financing as reported by the company, without specifying the separate effect on third-quarter results here. The updated guidance, alongside the cost of financing, remains among the factors markets will follow in management's discussion of the results.
After the end of the third quarter, VICI's board authorized a share repurchase program of up to $2.0 billion. The decision is a development subsequent to the end of the financial period, not an item in the third-quarter results themselves. The company also declared a quarterly cash dividend of $0.46 per share, up 2.2% year over year. The announcement combines a subsequent buyback decision with a recurring shareholder distribution, while the facts available here do not specify the program's execution timing. The dividend comes amid the reported results and the raised full-year AFFO outlook.
In Alberta, the transaction includes a new master lease for the Highfield properties, with initial annual base rent of C$10.7 million and an initial term of 20 years. VICI said the total rent it collects will not change upon completion of the transaction. The transaction is subject to customary closing conditions and regulatory approvals, and the company expects it to close in the fourth quarter of 2026 or the first quarter of 2027. This timeline places the transaction among developments expected after the third-quarter results, with closing remaining conditional on completing regulatory and contractual requirements. The earnings call is scheduled for October 29 at 10:00 a.m. Eastern time, while the expected completion of the Alberta transaction falls in one of the following two quarters.
In trading, VICI shares rose 2.59% to $24.13 in after-hours trading on October 29, according to Reuters coverage via Investing.com, compared with a previous close of $23.52. The coverage reported earnings per share of $0.31, below the market estimate of $0.72, while revenue was $1.07 billion against an estimate of $1.06 billion. The comparison shows revenue exceeding estimates while earnings per share fell short of expectations cited in the coverage. The revenue figure in the coverage also differed from the $1.1 billion reported by the company, which was up 5.8% year over year from $1 billion in the third quarter of 2025. The shares rose in after-hours trading following the results release, while the company scheduled its investor call for October 29 at 10:00 a.m. Eastern time.