VICI Properties Inc. Enters Definitive Agreement with Eastern Band of Cherokee Indians related to Caesars Southern Indiana
December 24 2020 - 8:30AM
Business Wire
Continues Tenant Diversification with Sixth
Gaming Operator
VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the
“Company”) announced today that, in connection with the Eastern
Band of Cherokee Indians’ (“EBCI”) agreement to acquire the
operations of Caesars Southern Indiana from Caesars Entertainment,
Inc. (NYSE: CZR) (“Caesars”), the Company has agreed to enter into
a triple-net lease agreement with EBCI with respect to the real
property associated with Caesars Southern Indiana. In addition, as
part of this transaction, the parties have agreed to negotiate a
right of first refusal (“ROFR”) for VICI Properties on the real
property associated with the development of a new casino resort in
Danville, Virginia.
Initial total annual rent under the lease with EBCI will be
$32.5 million and the rent coverage ratio in the first year after
closing is expected to be above 2.2x. The lease will have an
initial term of 15 years, with four 5-year tenant renewal options.
The tenant’s obligations under the lease will be guaranteed by
EBCI.
Annual base rent payments under the Company’s Regional Master
Lease with Caesars will be reduced by $32.5 million upon completion
of EBCI’s acquisition of the operations of Caesars Southern Indiana
and the execution of the lease between EBCI and VICI. The property
is expected to retain the Caesars brand name and to continue to be
a part of the Caesars Rewards loyalty program per the terms of a
licensing agreement negotiated between EBCI and Caesars.
John Payne, President and Chief Operating Officer of VICI
Properties, said, “This transaction provides additional tenant
diversification and continues to build VICI’s embedded growth
pipeline while allowing Caesars to further their strategic
objectives in Indiana. After only 3 years of real estate investment
management, VICI has the most tenants of any gaming REIT. We’re
thrilled to welcome EBCI as our sixth gaming tenant and look
forward to a long partnership as they expand into commercial
gaming.”
Richard Sneed, Principal Chief of the EBCI, said, “We have been
operating in partnership with Caesars for over 20 years at our
Harrah’s Cherokee Casino Resort and Harrah’s Cherokee Valley River
properties and are excited to form a relationship with VICI as we
begin to expand our gaming portfolio outside of North
Carolina.”
The transactions referenced herein are subject to customary
regulatory and other approvals (and, with respect to the ROFR,
negotiation of definitive documentation and applicable regulatory
and other governmental approvals) and are expected to be completed
in the third quarter of 2021.
About VICI Properties
VICI Properties is an experiential real estate investment trust
that owns one of the largest portfolios of market-leading gaming,
hospitality and entertainment destinations, including the
world-renowned Caesars Palace. VICI Properties’ national,
geographically diverse portfolio consists of 28 gaming facilities
comprising 47 million square feet and features approximately 18,000
hotel rooms and more than 200 restaurants, bars and nightclubs. Its
properties are leased to industry leading gaming and hospitality
operators, including Caesars, Century Casinos, Hard Rock
International, JACK Entertainment and Penn National Gaming. VICI
Properties also has an investment in the Chelsea Piers, New York
facility and owns four championship golf courses and 34 acres of
undeveloped land adjacent to the Las Vegas Strip. VICI Properties’
strategy is to create the nation’s highest quality and most
productive experiential real estate portfolio. For additional
information, please visit www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,”
and similar expressions that do not relate to historical matters.
All statements other than statements of historical fact are
forward-looking statements. You should exercise caution in
interpreting and relying on forward-looking statements because they
involve known and unknown risks, uncertainties, and other factors
which are, in some cases, beyond the Company’s control and could
materially affect actual results, performance, or achievements.
Such risks and uncertainties include, but are not limited to: the
impact of changes in general economic conditions, including low
consumer confidence, unemployment levels, and depressed real estate
pricing resulting from the severity and duration of any downturn in
the U.S. or global economy (including stemming from the public
health emergency caused by COVID-19 and changes in economic
conditions as a result of the public health emergency caused by
COVID-19); risks that the pending transaction may not be
consummated on the terms or timeframes contemplated, or at all; the
ability of the parties to satisfy the conditions set forth in the
definitive transaction documents, including the ability to receive,
or delays in obtaining, the governmental and regulatory approvals
and consents required to consummate the pending transaction, or
other delays or impediments to completing this transaction; the
ability of the applicable parties to obtain the financing necessary
to complete the transactions on the terms expected or at all;
disruptions to the real property and operations of the subject
property during the pendency of the closing of the pending
transactions; and risks that the Company may not achieve the
benefits contemplated by the pending transaction (including any
expected accretion or the amount of any future rent payments).
Important risk factors that may affect the Company’s business,
results of operations and financial position are detailed from time
to time in the Company’s filings with the Securities and Exchange
Commission. The Company does not undertake any obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as may be required
by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201224005157/en/
Investors: Investors: Investors@viciproperties.com (646)
949-4631
Or
David Kieske EVP, Chief Financial Officer
DKieske@viciproperties.com
Danny Valoy Vice President, Finance
DValoy@viciproperties.com
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