VICI Properties forecasts 2024 FFO below estimates hit by high interest rates

VICI Properties

22/02/2024 23:16

Feb 22 (Reuters) - VICI Properties  VICI.N  on Thursday
forecast 2024 adjusted funds from operation (FFO) below Wall
Street estimates, as high interest rates dampened the real
estate investment trust's expansion plans. 
    The company, whose portfolio includes casinos such as
Caesars Palace  CZR.O  and MGM Grand  MGM.N  in Las Vegas,
operates on a sale-leaseback model, where it identifies an
existing gaming asset, purchases the real estate, and
immediately leases it back to the operator. 
    These transactions often immediately add to the company's
income.
    The pace at which VICI has been signing new deals has slowed
down as financing large projects has become difficult due to
high interest rates in a challenged lending environment. 
    The company expects 2024 adjusted FFO between $2.22 and
$2.25 per share, compared with analysts' estimates of $2.27 per
share. 
    The Maryland-based hospitality and entertainment REIT
reported a fourth-quarter adjusted FFO of 55 cents per share, in
line with analysts' estimates. 
    Total quarterly revenue was $931.9 million, up 21% from a
year earlier. Analysts, on average, were expecting $921.2
million, as per LSEG data. 

 (Reporting by Aishwarya Jain in Bengaluru; Editing by Maju
Samuel and Shailesh Kuber)
 ((Aishwarya.Jain@thomsonreuters.com;))