VICI PROPERTIES INC.VICI

VICI PROPERTIES INC. Commitments Disclosure

10-KFiled Feb 25, 20263 min read
Commitments and Contingent Liabilities
Litigation
In the ordinary course of business, from time to time, we may be subject to legal claims and administrative proceedings. As of December 31, 2025, we are not subject to any litigation that we believe could have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations, liquidity or cash flows.
Lease Commitments
•Operating Lease Commitments. We are liable under operating leases for: (i) land at the Cascata golf course, which expires in 2038 and has three 10-year extension options and (ii) our corporate headquarters in New York, NY, which expires in 2035 and has one five-year renewal option.
•Sub-Lease Commitments. Certain of our acquisitions necessitate that we assume, as the lessee, ground and use leases that are integral to the operations of the property, the cost of which is passed to our tenants through our lease agreements, which require the tenants to pay all costs associated with such ground and use leases and provide for their direct payment to the landlord.
We have determined we are the primary obligor of certain of such ground and use leases and, accordingly, have presented these leases on a gross basis on our Balance Sheets and Statement of Operations.
For the ground and use leases determined to be operating leases, we recorded sub-lease right-of-use assets in Other assets and sub-lease liabilities in Other liabilities. For ground and lease uses determined to be finance leases, we recorded a sales-type sub-lease in Other assets and finance sub-lease liability in Other liabilities.
The following table details the balance and location in our Balance Sheets of the ground and use sub-leases as of December 31, 2025 and 2024:
(In thousands)December 31, 2025December 31, 2024
Other assets (operating lease and sub-leases right-of-use assets)$53,945 $54,144 
Other liabilities (operating lease and sub-lease liabilities)53,654 53,822 
Other assets (sales-type sub-leases, net) (1)
838,936 842,776 
Other liabilities (finance sub-lease liabilities)862,845 863,374 
___________________
(1) As of December 31, 2025 and December 31, 2024, sales-type sub-leases are net of $23.9 million and $20.6 million of allowance for credit losses, respectively. Refer to Note 5 – Allowance for Credit Losses for further details.
Total rental expense for operating lease commitments and total rental income and rental expense for operating and Finance sub-lease commitments and contractual rent expense under these agreements were as follows:
Year Ended December 31,
(In thousands)202520242023
Operating leases
Rental expense (1)
$2,520 $2,334 $2,004 
Contractual rent1,106 1,363 1,905 
Operating sub-leases
Rental income and expense (2)
7,175 6,889 6,849 
Contractual rent6,752 6,754 6,585 
Finance sub-leases
Rental income and expense (2)
63,852 63,918 58,240 
Contractual rent65,228 65,030 59,094 
___________________
(1) Total rental expense is included in golf operations and general and administrative expenses in our Statement of Operations.
(2) Total rental income and rental expense for operating and finance sub-lease commitments are presented gross and included in Other income and Other expenses in our Statement of Operations.
The future minimum lease commitments relating to the base lease rent portion of noncancelable operating leases and ground and use sub-leases at December 31, 2025 are as follows:
(In thousands)Operating Lease CommitmentsOperating Sub-Lease CommitmentsFinancing Sub-Lease Commitments
2026$2,772 $7,014 $65,251 
20271,921 7,208 65,251 
20282,813 6,470 65,313 
20291,921 5,743 65,876 
20302,916 2,436 66,051 
Thereafter17,909 8,679 2,628,643 
Total minimum lease commitments$30,252 $37,550 $2,956,385 
Discounting factor8,752 5,396 2,093,540 
Lease liability$21,500 $32,154 $862,845 
Discount rates (1)
5.3% -7.0%
2.6% - 5.8%
5.6% - 8.3%
Weighted average remaining lease term11.1 years6.7 years50.8 years
____________________
(1) The discount rates for the leases were determined based on the yield of our then current secured borrowings, adjusted to match borrowings of similar terms.
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Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 23, 2022
2020Feb 18, 2021
2019Feb 20, 2020
2018Feb 14, 2019
2017Mar 28, 2018

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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