VICI Properties posts downbeat 2025 FFO forecast amid tough lending environment

VICI Properties

20/02/2025 22:28

Feb 20 (Reuters) - VICI Properties  VICI.N  forecast its 2025 adjusted funds from
operations below Wall Street expectations on Thursday, as the real estate investment trust
navigates a high interest rate environment. 
    Shares of the company fell about 2.5% in extended trading.
    Financing large projects has become tougher as U.S. 10-year Treasury note rates remain high,
creating a challenging lending environment and slowing down the pace at which REITs such as VICI
are able to sign new deals.
    In February, yields on 10-year Treasury notes, which are indicative of long-term borrowing
costs and investor sentiment, were up more than 75 basis points, even as the Fed has cut
short-term interest rates by a full percentage point since September.
    The company expects full-year 2025 adjusted FFO between $2.32 and $2.35 per share, compared
with $2.43 per share expected by analysts. 
    The hospitality and entertainment REIT reported fourth-quarter adjusted FFO of 57 cents per
share, compared with the analysts' estimate of 61 cents per share. 
    Total quarterly revenue came in at $976.1 million, up 4.7% from a year earlier. Analysts, on
average, were expecting revenue of $969.5 million in the fourth quarter, according to data
compiled by LSEG. 

 (Reporting by Aishwarya Jain and Utkarsh Shetti in Bengaluru; Editing by Alan Barona)
 ((Aishwarya.Jain@thomsonreuters.com))