Grossing $1.1 billion in the third quarter of 2026, Vici Properties grew its revenue by 5.8% percent, but profits plunged by 55.1% in the quarter to $342.5 million.
Despite the tightened profit, the real estate investment trust (REIT) declared a 46-cent-per-share dividend on Wednesday, up 2.2 percent year over year, the ninth straight such increase. It also refinanced $1.8 billion in debt maturities by issuing new senior-grade notes.
“Following a flurry of deal activity across the early stages of 2026, investment activity slowed across 3Q26, with emphasis on preemptively addressing its debt maturities,” Citizen analyst Mitch Germain wrote in a research note. “The balance sheet sits in a solid state, containing historically low leverage and ample liquidity.”
On September 28, Vici announced it would aid Century Casinos in divesting of two Alberta horse tracks. The Canadian properties, Century Mile Racetrack and Century Downs, would be folded into the Vici portfolio on behalf of lessor Highfield Investment Group.
The purchase price was not disclosed. Highfield will lease the tracks from Vici at CAD$10.7 million per year. The initial lease is for 20 years, with a quartet of five-year extension options.
“Our commitment to situational readiness positioned us to refinance all of our remaining 2026 maturities through a $1.75 billion investment-grade notes offering in August at an adjusted weighted average interest rate of 5.42 percent,” CEO Edward Pitoniak said in a statement
Vici ended the quarter with $270.3 million cash on hand. Long-term debt stood at $17.2 billion. The REIT also announced a $2 billion share-repurchase authorization.
“Despite a slower-than-typical quarter from an investment perspective and a marginally dilutive mid-quarter re-financing transaction, Vici raised its 2026 earnings outlook as organic growth remains ahead of traditional net-lease REITs, while the company continues to see upside from its loan book,” Germain wrote.
Germain noted the backdrop, highlighted by the recent interest-rate expansion, is weighing on longer-duration assets, while Vici continues to deal with implications stemming from thin rent coverage across its regional lease with Caesars Entertainment, which is in the process of being acquired by Fertitta Entertainment.
On a positive note, Germain wrote, the operator reported improved EBITDA across its regional portfolio in the third quarter.
“We continue to have high regard toward the irreplaceable operating portfolio, appreciate the flexible investment strategy, and are positive on the company’s recent emphasis on strengthening the balance sheet,” he wrote. “Shares trade at a highly-discounted 9.3x 2027E AFFO/share, roughly two turns below the net-lease REIT sector, keeping us positive.”
