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Federal Reserve official Thomas Barkin indicated that more interest rate hikes are likely necessary, though they may happen at a gradual pace. He noted that inflation remains a concern and monetary policy must adjust to bring prices under control.
For a real estate owner like VICI, interest rates are a critical lever. Higher rates make it more expensive to borrow the money used to buy new properties and can increase the cost of managing its existing debt. While VICI has already cleared its major debt hurdles for 2026, a prolonged period of rising rates could slow down its plans to expand into new entertainment and resort properties.
Source: CNBC
VICI reported a steady quarter with revenue reaching $1.07 billion, slightly ahead of what analysts expected. While net income fell to $0.31 per share, this was mostly due to a technical accounting adjustment for potential credit losses rather than a drop in actual cash coming in. The company's preferred measure of profit, which tracks the cash available for dividends, rose more than 7 percent to $685 million.
Management raised its profit goals for the full year and announced a new partnership with Highfield Investment Group. VICI also finished a $1.75 billion debt sale, which helps lock in its borrowing costs. For anyone owning the stock for the long haul, the core of the business remains intact: it still collects 100 percent of its rent from iconic properties like Caesars Palace and just raised its dividend again.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
After VICI Properties reported its October results, we updated our revenue and profit projections for the next two years. We cut our quality score to 4.1 to reflect our new rating of how the business might be affected by artificial intelligence. We have added the company's first share buyback program and the impact of non-cash accounting charges to what we track. We also adjusted our expectations for how quickly the company can reduce its reliance on its two largest tenants.
Barclays lowered its price target for VICI to $28 while keeping an overweight rating, which means they still expect the stock to do better than the broader market. This tweak follows a similar move by Truist earlier in the month. Even with the lower target, the firm's outlook remains well above the current price of about $24, suggesting they still see value in the company's portfolio of casino and entertainment real estate.
Source: Barclays
Results for the quarter are expected today, with analysts looking for revenue of about 1.06 billion dollars. The numbers will provide a look at how well the company is collecting rent and whether it has found new entertainment properties to buy. We will update this page with a full analysis of the results and what they mean for the business once the report is released.
Management has missed profit targets in three of the last four quarters. This suggests they are struggling to forecast their own costs even as revenue keeps growing.
| Expectation | |
|---|---|
| EPS | $0.72 |
| Revenue | $1.07B |
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