{"id":110855,"date":"2019-08-01T11:12:53","date_gmt":"2019-08-01T18:12:53","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=110855"},"modified":"2023-03-29T06:29:14","modified_gmt":"2023-03-29T11:29:14","slug":"vici-properties-lifts-its-ffo-guidance-but-investors-yawn","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/","title":{"rendered":"VICI Properties Fantastic Funds From Operations Guidance Met With Tepid Response"},"content":{"rendered":"

VICI Properties Inc. (NYSE:VICI), the gaming real estate investment trust (REIT), raised its full-year funds from operations (FFO) guidance in its second-quarter earnings report, but investors’ response to the news was weak as the stock traded slightly higher Thursday.<\/p>\n

\"\"
Caesars Palace Las Vegas, VICI’s marquee property. The company raised its 2019 funds from operations guidance. (Image: TripSavvy)<\/figcaption><\/figure>\n

On an adjusted basis, VICI, the owner of 22 casinos across the US, including Caesars Palace in Las Vegas, forecast 2019 FFO of $635 million to $645 million. That’s well above prior full-year adjusted FFO guidance of $600 million to $615 million.<\/strong><\/p>\n

Investors’ lack of enthusiasm for VICI’s updated FFO estimates could be the result of slightly lower per share estimates. The company said it expects 2019 FFO to come in at $1.45 to $1.47 share, below an original call of $1.47 to $1.50.<\/p>\n

The lower per share numbers are tied to VICI announcing in June a dilutive secondary offering<\/a> aimed at raising capital so the company can buy the real estate of Harrah\u2019s New Orleans, Harrah\u2019s Laughlin, and Harrah\u2019s Atlantic City from Eldorado Resorts, Inc. (NASDAQ:ERI).<\/p>\n

Eldorado is selling those properties as part of its $17.3 billion takeover of Caesars Entertainment Corp. (NASDAQ:CZR), a deal that could potentially benefit VICI over the long-term thanks to rising Caesars Palace Las Vegas (CPLV), Harrah’s Las Vegas (HLV), non-CPLV, and non-HLV rents.<\/p>\n

The rent under the CPLV Lease Agreement and the HLV Lease Agreement will increase by $83.5 million and $15.0 million, respectively, for implied capitalization rates of 7.0%,\u201d<\/strong> said VICI.<\/span><\/p><\/blockquote>\n

VICI added that when the Harrah\u2019s New Orleans, Harrah\u2019s Laughlin, and Harrah\u2019s Atlantic City deals close, rents there will increase by $154 million for a capitalization rate of 8.5 percent<\/strong>.<\/p>\n

FFO: It Matters<\/b><\/h2>\n

REITs like VICI are not structured as traditional corporations. Rather, REITs’ earnings are not taxed by the federal government, but the trade-off for that favorable treatment is that the companies must payout at least 90 percent of those earnings in the form of dividends.<\/p>\n

\n

That requirement prompts investors to evaluate real estate companies based on how much cash is being generated, which FFO measures. The metric is arrived at by adding net income, amortization, and depreciation and subtracting property sales.<\/span><\/p>\n<\/div>\n

VICI’s improving FFO standing reflects the $1 billion purchase of the Greektown Casino-Hotel in Detroit, which was finalized in May<\/a>. Penn National Gaming will operate that property.<\/p>\n

However, the real estate company’s bullish cash guidance does not include other transactions announced in the second quarter, such as the aforementioned Harrah’s buys and the $278 million deal to acquire the real estate assets of the Mountaineer Casino Racetrack and Resort in West Virginia and Missouri’s Isle Casino Cape Girardeau and Lady Luck Casino, because those purchases haven’t closed.<\/p>\n

More Deals?<\/b><\/h2>\n

VICI, which owns three casinos in the Reno\/Lake Tahoe market and two in Atlantic City, did not speculate on whether it could be a buyer of other Caesars properties should those assets be sold.<\/p>\n

The real estate company did, however, reiterate that at some point in the future it could opt to buy the property assets of Harrah\u2019s Hoosier Park and Indiana Grand and that it has rights of first refusal for a sale-leaseback transaction on Harrah’s Baltimore<\/strong>.<\/p>\n

As Casino.org <\/i>previously reported<\/a>, VICI has an agreement with Eldorado where the former has first dibs on one of the following Strip casinos: Bally\u2019s Las Vegas, Flamingo Las Vegas, Paris Las Vegas, and Planet Hollywood Resort & Casino. Should VICI acquire the real estate of one of those venues, it would retain first priority to buy one of the remainders from that group or the LINQ Hotel & Casino.<\/p>\n","protected":false},"excerpt":{"rendered":"

VICI Properties Inc. (NYSE:VICI), the gaming real estate investment trust (REIT), raised its full-year funds from operations (FFO) guidance in its second-quarter earnings report, but investors’ response to the news was weak as the stock traded slightly higher Thursday. On an adjusted basis, VICI, the owner of 22 casinos across the US, including Caesars Palace […]<\/p>\n","protected":false},"author":46,"featured_media":110859,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\nVICI Properties Lifts Its FFO Guidance, But Investors Yawn<\/title>\n<meta name=\"description\" content=\"VICI Properties, a gamng REIT, boosted its FFO estimates, a key metric in evaluating REITs, but investors were not stirred by the news.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"VICI Properties Lifts Its FFO Guidance, But Investors Yawn\" \/>\n<meta property=\"og:description\" content=\"VICI Properties, a gamng REIT, boosted its FFO estimates, a key metric in evaluating REITs, but investors were not stirred by the news.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-01T18:12:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-29T11:29:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1734\" \/>\n\t<meta property=\"og:image:height\" content=\"1316\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/\",\"url\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/\",\"name\":\"VICI Properties Lifts Its FFO Guidance, But Investors Yawn\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg\",\"datePublished\":\"2019-08-01T18:12:53+00:00\",\"dateModified\":\"2023-03-29T11:29:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"VICI Properties, a gamng REIT, boosted its FFO estimates, a key metric in evaluating REITs, but investors were not stirred by the news.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg\",\"width\":1734,\"height\":1316,\"caption\":\"Caesars Palace Las Vegas, VICI's marquee property. The company raised its 2019 funds from operations guidance. (Image: TripSavvy)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"VICI Properties Fantastic Funds From Operations Guidance Met With Tepid Response\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"VICI Properties Lifts Its FFO Guidance, But Investors Yawn","description":"VICI Properties, a gamng REIT, boosted its FFO estimates, a key metric in evaluating REITs, but investors were not stirred by the news.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/","og_locale":"en_US","og_type":"article","og_title":"VICI Properties Lifts Its FFO Guidance, But Investors Yawn","og_description":"VICI Properties, a gamng REIT, boosted its FFO estimates, a key metric in evaluating REITs, but investors were not stirred by the news.","og_url":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2019-08-01T18:12:53+00:00","article_modified_time":"2023-03-29T11:29:14+00:00","og_image":[{"width":1734,"height":1316,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/","url":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/","name":"VICI Properties Lifts Its FFO Guidance, But Investors Yawn","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg","datePublished":"2019-08-01T18:12:53+00:00","dateModified":"2023-03-29T11:29:14+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"VICI Properties, a gamng REIT, boosted its FFO estimates, a key metric in evaluating REITs, but investors were not stirred by the news.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/08\/cplv.jpg","width":1734,"height":1316,"caption":"Caesars Palace Las Vegas, VICI's marquee property. The company raised its 2019 funds from operations guidance. (Image: TripSavvy)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/vici-properties-lifts-its-ffo-guidance-but-investors-yawn\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"VICI Properties Fantastic Funds From Operations Guidance Met With Tepid Response"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/110855"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=110855"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/110855\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/110859"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=110855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=110855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=110855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}