Derivatives

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest-Rate Derivatives

Outstanding Derivatives

The following tables detail our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of December 31, 2024. As of March 31, 2025, there were no derivative instruments outstanding.

($ In thousands)

December 31, 2024

Instrument

Number of Instruments

Fixed Rate

Notional

Index

Maturity

Forward-starting interest rate swap

3.5880%

200,000

USD-SOFR-OIS COMPOUND

March 27, 2035

Settled Derivatives

We have entered into, and subsequently settled, the following forward-starting interest rate swap agreements and U.S. Treasury Rate Lock agreements to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance of the respective senior unsecured notes. In each case, the derivatives were designated as cash-flow hedges and, accordingly, the unrealized gain in Accumulated other comprehensive income is amortized over the term of the respective derivative instruments, which matches that of the underlying note, as a reduction in interest expense.


($ In thousands)
Notes Offering	Settlement Period	Instrument	Number of Instruments	Notional Amount		Total Net Proceeds/(Payments)
April 2025 Notes	March 2025	Forward-starting interest rate swap	12	$	600,000	$	192
April 2025 Notes	March 2025	U.S. Treasury Rate Lock	3	$	150,000	$	1,575
December 2024 Notes	December 2024	Forward-starting interest rate swap	7	$	350,000	$	7,173
December 2024 Notes	December 2024	U.S. Treasury Rate Lock	5	$	300,000	$	(398)
March 2024 Notes	March 2024	Forward-starting interest rate swap	7	$	500,000	$	2,543
April 2022 Notes	April 2022	Forward-starting interest rate swap	5	$	2,500,000	$	202,289
April 2022 Notes	April 2022	U.S. Treasury Rate Lock	2	$	500,000	$	4,549

The following table presents the effect of our forward-starting derivative financial instruments on our Statement of Operations:


	Three Months Ended March 31,
(In thousands)	2025		2024
Unrealized (loss) gain recorded in other comprehensive income	$	(5,949)	$	12,482
Reduction in interest expense related to the amortization of the forward-starting interest rate swaps and treasury locks	(6,345)		(6,046)

Net Investment Hedges

In connection with our foreign transactions in Canada and the United Kingdom, we currently have C$183.0 million and £14.5 million, respectively, outstanding on the Revolving Credit Facility, which funds were used to reduce the impact of exchange rate variations associated with our investments, and, accordingly, have been designated as a hedge of the net investment in such entities. As non-derivative net investment hedges, the impact of changes in foreign currency exchange rates on the principal balances are recognized as a cumulative translation adjustment within accumulated other comprehensive income. For the three months ended March 31, 2025, we recognized $0.6 million in unrealized losses, related to such net investment hedges, and for the three months ended March 31, 2024, we recognized $3.7 million in unrealized gains related to such net investment hedges, which were recorded as a component of Foreign currency translation adjustments in the Statement of Operations.

VICI PROPERTIES INC. 10-Q