VICI Properties started 2025 with higher revenue and EBITDA, but rising costs cut into net income. Despite the dip in profits, the company continued to expand its portfolio and secure new investment deals, particularly in the tribal gaming sector and major development projects.
Good to know
- VICI Properties increased Q1 2025 revenue by 3.4% to $984.2m, but net income dropped 7.9%.
- Operating expenses jumped over 50% year-over-year due to a sharp rise in credit loss allowance.
- Caesars and MGM Resorts leases were among the top revenue generators for the quarter.
Total revenue for the first quarter came in at $984.2 million, up 3.4 percent from the same period last year. At the same time, adjusted EBITDA reached $802.1 million, a 4.8 percent increase year-over-year. However, net income fell by 7.9 percent to $543.6 million.
A big factor behind the drop in profit was a steep rise in operating expenses, which surged 52.1 percent to $228.7 million. Nearly $187 million of that total was linked to a change in the allowance for credit losses.
Most of the company’s segments reported year-over-year revenue growth. Sales-type leases contributed $528.6 million, up 3.1 percent, while lease financing receivables, loans, and securities delivered $426.5 million, rising 4.2 percent. Golf revenue was the only area that declined, dropping 4.8 percent to $9.6 million.
CEO Edward Pitoniak highlighted ongoing expansion efforts. “In February, we announced the establishment of our strategic relationship with Cain International and Eldridge Industries through a $300m mezzanine loan investment related to the One Beverly Hills development project,” he said.
He also shared details of a major new agreement signed after the quarter closed. “Subsequent to quarter-end, we entered into an agreement to provide up to $510m in a delayed draw term loan facility for the development of a Tribal casino in central California that will be developed and managed by affiliates of Red Rock Resorts.”
Looking at lease-specific revenue, the company’s regional master lease with Caesars Entertainment led the way with $137.7 million in Q1 revenue. Another $123.9 million came from a Las Vegas master lease with Caesars. VICI’s agreement with MGM Resorts for the MGM Grand and Mandalay Bay properties brought in $79.5 million, while the lease with The Venetian Resort and Casino added $74.2 million.
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