NewsGlobalVICI Properties Raises Lower End of 2023 AFFO Forecast on Experiential Real Estate GrowthVICI Properties Raises Lower End of 2023 AFFO Forecast on Experiential Real Estate Growth
VICI Properties, a REIT specializing in experiential properties, has increased the lower end of its 2023 adjusted funds from operations (AFFO) forecast. The company reported strong Q3 results with adjusted FFO per share of $0.60, beating analyst estimates of $0.59. Q3 revenue reached $1.00 billion, meeting expectations with a 4.40% year-over-year growth. VICI updated its full-year 2023 AFFO forecast to $2.36 - $2.37 per share, up from the previous $2.35 - $2.37 range. The company's diverse portfolio includes iconic casinos and various leisure assets, operating on a sale-leaseback model.
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VICI Properties, a prominent real estate investment trust (REIT) specializing in experiential properties, has raised the lower end of its 2023 adjusted funds from operations (AFFO) forecast. This adjustment reflects the company's continued growth in the experiential real estate sector.
Financial Performance
VICI Properties reported strong financial results for the third quarter:
| Metric | Result | Analyst Estimate |
|---|---|---|
| Q3 Adjusted FFO per share | $0.60 | $0.59 |
| Q3 Revenue | $1.00 billion | Met expectations |
| Revenue Growth (YoY) | 4.40% | - |
The company's performance exceeded analyst expectations for adjusted FFO, while revenue growth remained solid.
Revised Outlook
VICI Properties has updated its full-year adjusted FFO forecast:
| Period | Previous Forecast | Updated Forecast |
|---|---|---|
| Full Year 2023 | $2.35 - $2.37 per share | $2.36 - $2.37 per share |
This upward revision in the lower end of the forecast range indicates increased confidence in the company's financial performance for the year.
Business Model and Portfolio
VICI Properties operates on a sale-leaseback model, which involves:
- Acquiring real estate assets
- Leasing these assets back to operators
The company's diverse portfolio includes:
- Iconic casinos such as Caesars Palace and MGM Grand in Las Vegas
- Various leisure assets:
- Bowling alleys
- Wellness resorts
- Water parks
- Golf courses
This diversified approach in experiential real estate has been a key driver of VICI's growth and improved financial outlook.
Market Implications
The positive adjustment to VICI's AFFO forecast suggests:
- Strong performance in the experiential real estate sector
- Resilience in consumer spending on leisure and entertainment
- Effective execution of the company's acquisition and leasing strategy
Investors and market watchers may view this update as a positive indicator of VICI Properties' financial health and growth prospects in the experiential real estate market.
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