VICI PROPERTIES INC.VICI

VICI PROPERTIES INC. Fair Value Disclosure

10-KFiled Feb 25, 20262 min read
Fair Value
The following tables summarize our assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024:
December 31, 2025
Fair Value
(In thousands)Carrying AmountLevel 1Level 2Level 3
Financial assets:
Short-term investments (1)
$44,484 $— $44,484 $— 
December 31, 2024
Fair Value
(In thousands)Carrying AmountLevel 1Level 2Level 3
Financial assets:
Derivative instruments - forward-starting interest rate swap (2)
$7,717 $— $7,717 $— 
____________________
(1)The carrying value of these investments is equal to their fair value due to the short-term nature of the investments as well as their credit quality.
(2)The fair values of our interest rate swap derivative instruments were estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising interest rate curves and credit spreads, which are Level 2 measurements as defined under ASC 820.
The estimated fair values of our financial instruments at December 31, 2025 and 2024 for which fair value is only disclosed are as follows:
December 31, 2025December 31, 2024
(In thousands)Carrying AmountFair ValueCarrying AmountFair Value
Financial assets:
Investments in leases - financing receivables (1)
$18,697,133 $18,030,775 $18,430,320 $17,723,171 
Investments in loans and securities (2)
2,525,457 2,445,252 1,651,533 1,575,856 
Cash and cash equivalents
563,479 563,479 524,615 524,615 
Financial liabilities:
Debt (3)
Revolving Credit Facility $142,453 $142,453 $148,846 $148,846 
MGM Grand/Mandalay Bay CMBS Debt2,827,515 2,834,520 2,800,544 2,686,960 
Senior Unsecured Notes 13,803,273 13,967,990 13,783,499 13,619,484 
____________________
(1)Represents our asset acquisitions structured as sale leaseback transactions. In accordance with ASC 842, since the lease agreements were determined to meet the definition of a sales-type lease and control of the asset is not considered to have been transferred to us, such lease agreements are accounted for as financings under ASC 310. The fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy.
(2)The fair value of investments in loans is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. The fair value of our senior secured notes was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.
(3)The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2017Mar 28, 2018

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

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