Vici Properties Nets Winning Quarter Amid Vegas Tourism Struggles

Vici Properties beat the odds in the third quarter against a backdrop of headwinds facing the real estate investment trust’s main turf, the Las Vegas Strip. 

The gaming and entertainment-focused REIT reported quarterly funds from operations (FFO) of 60 cents per share to surpass analyst estimates of 59 cents per share. The Las Vegas-based company also generated $1.01 billion of revenue compared to $1 billion projected by the Zacks Consensus Estimate. 

John Payne, Vici’s president and chief operating officer, said Friday during the firm’s third-quarter earnings call that it remains strongly positioned to withstand a decline in Las Vegas tourism this year influenced largely by decreases in Canadian travel and Spirit Airlines cutting its capacity in the city. 

“We face a market environment that defies easy explanation, but at Vici we have already faced multiple unprecedented events in our eight-year history, and through disciplined capital allocation we have been able to strike the balance between investment quality and growth,” Payne said. “Las Vegas has endured cycles before, and operators are expecting trends to improve through quarter four and into 2026.”

Vici reported third-quarter net income of $773.6 million compared to $744.5 million in the same period a year ago. It also generated $637.6 million of adjusted funds from operations, a 7.4 percent increase from $593.9 million in 2024’s third quarter. 

The earnings call came two weeks after Vici announced a new 25-year lease for its Northfield Park racino property in northern Ohio with Toronto-based private equity firm Clairvest Group in conjunction with MGM Resorts divesting operations in the facility. The deal, which is expected to close in early 2026, would mark Clairvest’s 17th investment in the gaming sector. 

“Clairevest is a sought-after partner with gaming experience across regional casinos, racetracks, suppliers, technology providers and online gaming globally,” Payne said on the earnings call. “Vici looks forward to further diversifying our tenant roster.” 

Vici’s portfolio includes 54 gaming properties and 39 other experiential retail assets across the U.S. and Canada. It owns nine Las Vegas casino resorts, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.

The third quarter closed shortly before MGM International withdrew its application, after consulting with Vici, for a full-fledged casino in Yonkers, N.Y., to replace its existing slots-only MGM Empire City. When asked if Vici would consider partnering with other New York City casino bids, the REIT’s CEO, Ed Pitoniak, stressed that the economics may not make sense. 

“Whatever does get built in New York is going to have to be meaningfully, measurably more profitable than any other regional casino in America, and that includes the finest regional casinos in America,” said Pitoniak, noting MGM National Harbor in Maryland, Encore Boston Harbor and MGM Grand Detroit as comparisons. “Each of which I should emphasize tends to have market dominance and a lack of competitive supply that will not necessarily exist here in New York.”

Andrew Coen can be reached at acoen@commercialobserver.com.