VICI Properties Outlines Dividend and AFFO Growth as Core Priorities

VICI Properties, a casino real estate giant, is considering increasing its dividend and continuing its AFFO growth amid favorable prospects in Las Vegas. The company believes that the next few decades will present plenty of opportunities for further growth.

VICI Remains Bullish on Vegas

Speaking at the recent Nareit REITweek conference in New York, VICI Properties leaders emphasized that growing the dividend and adjusted funds from operations (AFFO) are some of the company’s top priorities.  

To that end, the company continues to seek partnerships with sustainable operators that are focused on providing experiences that make customers come back. VICI Properties’ chief executive officer, Ed Pitoniak, explained that this commitment to customer satisfaction is one of his team’s principal investment criteria as it usually also correlates with operators’ ability to maintain same-store sales during downturns.

VICI Properties reiterated its confidence in the long-term success of properties in the Las Vegas Strip where it already owns almost half of the frontage. Pitoniak commented on that, forecasting significant opportunities and returns in the next few decades.

In the meantime, the CEO teased that the company remains open to emerging opportunities, such as youth sports.

Debt Markets Still a Challenge

Speaking of some of the challenges that VICI Properties is facing, the management said that debt markets can be very scary. The company’s chief financial officer, David Kieske, explained that this is why the company prefers to sell real estate, if possible.

However, there are still times when the company needs to issue debt and when it happens, VICI Properties works hard to ensure that the “maturity ladder is staggered.”

We’ve worked hard to get the balance sheet to give us the optionality to weather all storms.

David Kieske, CFO, VICI Properties

In the meantime, the REIT stock market remains fluctuating, with many companies experiencing a downturn. Despite the many ups and downs, VICI Properties’ share price remains favorable on a year-to-date basis. As of the time of this writing, VICI’s shares are worth $31.38 apiece.