VICI Properties has announced a strategic focus on enhancing shareholder value by prioritizing dividend growth and Adjusted Funds From Operations (AFFO) expansion. The real estate investment trust (REIT) emphasized its commitment to delivering consistent and sustainable returns, positioning dividend increases and AFFO growth as central pillars of its financial strategy moving forward
VICI Properties, a powerhouse in casino real estate, is poised to boost its dividend and continue driving adjusted funds from operations (AFFO) growth, capitalizing on bright prospects in Las Vegas. The company is confident that the upcoming decades will unlock abundant opportunities for expansion.
VICI Stays Bullish on Vegas
At the recent Nareit REITweek conference in New York, VICI Properties’ leadership highlighted dividend growth and AFFO enhancement as core company priorities.
VICI remains focused on forming alliances with sustainable operators who deliver compelling customer experiences that drive repeat visits. CEO Ed Pitoniak emphasized that prioritizing customer satisfaction is a key investment metric, as it often translates into operators’ resilience in maintaining same-store sales during economic downturns.
Reaffirming its strong belief in the long-term potential of Las Vegas Strip properties-where VICI holds nearly half the frontage-Pitoniak projected substantial growth and attractive returns over the coming decades.
Additionally, the CEO hinted at interest in emerging sectors, including youth sports, signaling the company’s openness to diversify its portfolio.
Navigating Debt Market Challenges
Regarding ongoing hurdles, VICI’s management acknowledged the volatility of debt markets. CFO David Kieske shared that this uncertainty motivates the firm to prioritize real estate sales whenever feasible.
When issuing debt is necessary, VICI strategically staggers maturities to maintain financial flexibility.
“We’ve worked hard to get the balance sheet to give us the optionality to weather all storms.”
David Kieske, CFO, VICI Properties
Meanwhile, the REIT stock sector continues to experience volatility, with many companies facing fluctuations. Despite this, VICI Properties’ share price remains robust on a year-to-date basis, currently trading at $31.38 per share.
