VICI Properties Inc. Reports Robust Growth in 2023 Earnings
Total Revenues: Increased by 38.9% year-over-year to $3.6 billion.
Net Income: Attributable to common stockholders surged by 124.9% to $2.5 billion.
AFFO: Grew by 29.1% year-over-year to $2.2 billion.
Dividends: Increased annualized cash dividend by 6.4% in Q3, marking the sixth consecutive annual increase.
Acquisitions: Announced and originated $1.8 billion in acquisitions and investments in 2023.
Capital Deployment: Deployed capital every month in 2023, with nearly $2 billion in capital commitments.
2024 Guidance: AFFO estimated to be between $2,320 million and $2,355 million.
VICI Properties Inc (NYSE:VICI), a leading experiential real estate investment trust, announced its 8-K filing on February 22, 2024, revealing substantial growth in its financial results for the fourth quarter and full year ended December 31, 2023. The company, which owns and operates a diverse portfolio of gaming, hospitality, and entertainment destinations, reported a significant increase in total revenues and net income attributable to common stockholders.
Financial Performance Highlights
VICI's total revenues for the year increased by 38.9% to $3.6 billion, while net income attributable to common stockholders saw a remarkable increase of 124.9% to $2.5 billion, or $2.47 per share. Adjusted Funds from Operations (AFFO), a key metric for REITs indicating the cash generated, increased by 29.1% to $2.2 billion, or $2.15 per share. The company's disciplined capital deployment strategy resulted in nearly $2 billion in capital commitments throughout 2023, with capital deployed every month.
Strategic Acquisitions and Investments
VICI's strategic acquisitions and investments in 2023 included the purchase of 38 bowling entertainment centers in a sale-leaseback transaction with Bowlero for $432.9 million, and the acquisition of the leasehold interest of Chelsea Piers in New York City for $342.9 million. The company also made its first international investments and expanded into new experiential categories, demonstrating its commitment to diversifying its portfolio and enhancing shareholder value.
Capital Markets and Liquidity
The company's proactive capital market activities included a primary offering of common stock, raising approximately $1.0 billion, and the settlement of forward equity sale agreements for net proceeds of $960.5 million. As of December 31, 2023, VICI had approximately $17.1 billion in total debt and $3.2 billion in liquidity, positioning it well for future growth and investment opportunities.
2024 Outlook and Guidance
Looking ahead, VICI has established guidance for full-year 2024, with AFFO expected to be between $2,320 million and $2,355 million, or between $2.22 and $2.25 per diluted share. This guidance reflects management's confidence in the company's ability to continue delivering strong performance and growth.
Value Investor Appeal
VICI's impressive earnings growth, strategic acquisitions, and disciplined capital deployment make it an attractive investment for value investors seeking stable and growing income streams. The company's focus on experiential real estate assets, combined with its prudent financial management, positions it well to capitalize on market opportunities and deliver long-term shareholder value.
For a detailed breakdown of VICI Properties Inc's financial results and to learn more about the company's strategic initiatives, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from VICI Properties Inc for further details.
This article first appeared on GuruFocus.
