Why Is VICI Properties (VICI) Down 3% Since Last Earnings Report?

It has been about a month since the last earnings report for VICI Properties Inc. (VICI). Shares have lost about 3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is VICI Properties due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

VICI Properties' Q1 AFFO Meets Estimates, Revenues Rise Y/Y

VICI Properties reported first-quarter 2026 AFFO per share of 61 cents, in line with the Zacks Consensus Estimate. The figure increased 5.2% from the prior-year quarter. Total revenues came in at $1.02 billion, up 3.5% year over year, but missed the consensus mark by just 0.1%.

The quarter featured steady rent-led growth and active capital deployment. Management also raised its full-year 2026 outlook for AFFO per share, reinforcing confidence in the company’s partner-driven investment strategy.

VICI Properties’ Results Reflect Higher Lease-Led Growth

VICI Properties’ top line benefited from higher income from lease financing receivables, loans and securities, which rose to $452 million from $426.5 million in the year-ago quarter. Income from sales-type leases also increased to $536.7 million from $528.6 million.

Other income edged down to $18.9 million from $19.5 million a year ago. Golf revenues rose to $11 million from $9.6 million, providing a modest offset to the decline in other income.

VICI Properties Gains From Credit Loss Allowance Swing

Profitability in the quarter was heavily influenced by credit loss. The change in allowance for credit losses was a $118.8 million benefit versus a $187 million expense in the prior-year quarter, which meaningfully lifted reported earnings power.

VICI Properties Expands Deals With Partners

VICI Properties continued to deepen relationships with existing and new counterparties. During the quarter, it provided a $1.5 billion mezzanine loan as part of the construction financing for the One Beverly Hills development, with an initial funding of $650 million.

The company also announced a pending acquisition of a Canadian casino portfolio in Alberta for CAD$200.6 million (about US$144.4 million at the time of announcement), with the assets to be added to the existing PURE master lease.

Subsequent to quarter-end, VICI Properties entered into a new lease for MGM Northfield Park with an affiliate of funds managed by Clairvest, adding a new tenant and resetting rent streams around the MGM master lease structure.

VICI Properties' Balance Sheet Remains Liquid After Heavy Investing

VICI Properties ended the quarter with $480.2 million in cash and cash equivalents. Liquidity remained substantial, at $3.1 billion supported by cash, estimated forward sale equity proceeds and revolving credit facility capacity.

Subsequent to quarter-end, VICI Properties physically settled the remaining 7.75 million shares under its forward sale agreement for approximately $242.1 million in net proceeds, adding further flexibility as it pursues announced transactions and future partner-led opportunities.

VICI Properties Raises 2026 AFFO Outlook After Solid Start

VICI Properties raised full-year 2026 AFFO per share guidance to $2.44-$2.47 compared to the prior guided range of $2.42-$2.45.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, VICI Properties has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, VICI Properties has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

VICI Properties belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, American Tower (AMT), has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

American Tower reported revenues of $2.74 billion in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $1.84 for the same period compares with $2.75 a year ago.

For the current quarter, American Tower is expected to post earnings of $2.69 per share, indicating a change of +3.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

American Tower has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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