- Reports 20.3% Year-over-Year Revenue Growth
-
- Completed First Sale-Leaseback Transaction in
Family Entertainment Sector with Bowlero -
- Completed Acquisition of Century Casinos'
Four Gaming Properties in Alberta, Canada -
- Announced Expansion of Partnership with
Canyon Ranch -
- Increases Guidance for Full Year 2023 -
VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the
“Company”), an experiential real estate investment trust, today
reported results for the quarter ended September 30, 2023. All per
share amounts included herein are on a per diluted common share
basis unless otherwise stated.
Third Quarter 2023 Financial and Operating Highlights
- Total revenues increased 20.3% year-over-year to $904.3
million
- Net income attributable to common stockholders increased
year-over-year to $556.3 million from $330.9 million and, on a per
share basis, increased year-over-year to $0.55 from $0.34
- AFFO attributable to common stockholders increased 16.4%
year-over-year to $547.6 million and, on a per share basis,
increased 10.7% year-over-year to $0.54
- Weighted average shares outstanding increased 5.1%
year-over-year
- Completed the Rocky Gap Casino Resort acquisition with Century
Casinos and acquired the real estate of Century Casinos' four
gaming properties in Alberta, Canada
- Expanded our partnership with Canyon Ranch through a preferred
equity investment, a mortgage loan and call rights to acquire
Canyon Ranch Tucson and Canyon Ranch Lenox
- Declared a quarterly cash dividend of $0.415 per share,
representing a 6.4% year-over-year increase
- Ended the quarter with $510.9 million in cash and cash
equivalents and $807.2 million of estimated available forward sale
equity proceeds
- Increased AFFO guidance for full year 2023 to between $2,170
million and $2,180 million, or between $2.14 and $2.15 per diluted
share
- Subsequent to quarter end, entered the family entertainment
sector through the acquisition of 38 bowling entertainment centers
in a sale-leaseback transaction with Bowlero
CEO Comments
Edward Pitoniak, Chief Executive Officer of VICI Properties,
said, “VICI’s third quarter financial performance reflects our
sustained, sustainable commitment to accretive growth and capital
deployment through acquisitions and strategic financing activity,
exemplified by approximately 20% revenue growth and nearly 11%
growth in AFFO per share year-over-year. During the quarter, in
addition to closing Rocky Gap and announcing the expansion of our
Canyon Ranch Growth Partnership, we expanded our international
presence through closing the acquisition of four casino properties
in Alberta, Canada with our existing tenant and partner, Century
Casinos.
"Subsequent to quarter end, we entered into a new experiential
sector with Bowlero, the market leader in reinvigorating the
programming and economics of the bowling experience through their
innovative consolidation and growth model. In this partnership, we
acquired 38 Bowlero properties and concurrently bolstered our
embedded growth pipeline by obtaining a right of first offer to
acquire current or future Bowlero real estate in the coming years
through sale-leaseback transactions. We also expanded our presence
in 11 new states and added another publicly traded tenant to our
roster. VICI's differentiation stems from our commitment to
partnering with operators who define their respective experiential
categories, as Bowlero has done with the bowling experience.”
Third Quarter 2023 Financial Results
Total Revenues
Total revenues were $904.3 million for the quarter, an increase
of 20.3% compared to $751.5 million for the quarter ended September
30, 2022. Total revenues for the quarter included $131.3 million of
non-cash leasing and financing adjustments and $18.2 million of
other income.
Net Income Attributable to Common Stockholders
Net income attributable to common stockholders was $556.3
million for the quarter, or $0.55 per share, compared to $330.9
million, or $0.34 per share, for the quarter ended September 30,
2022.
Funds from Operations (“FFO”)
FFO attributable to common stockholders was $556.3 million for
the quarter, or $0.55 per share, compared to $340.6 million, or
$0.35 per share, for the quarter ended September 30, 2022.
Adjusted Funds from Operations (“AFFO”)
AFFO attributable to common stockholders was $547.6 million for
the quarter, an increase of 16.4% compared to $470.7 million for
the quarter ended September 30, 2022. AFFO per share was $0.54 for
the quarter, an increase of 10.7% compared to $0.49 for the quarter
ended September 30, 2022.
Third Quarter 2023 Acquisitions and Portfolio
Activity
Acquisitions and Investments
On July 25, 2023, the Company completed the previously announced
transaction to acquire the leasehold interest in the land and
buildings associated with Rocky Gap Casino Resort ("Rocky Gap") in
Flintstone, Maryland for $203.9 million in cash, with Century
Casinos, Inc. (NASDAQ: CNTY) ("Century") acquiring the operating
assets of Rocky Gap for $56.1 million. Simultaneous with the close
of the acquisition, Rocky Gap was added to the existing triple-net
master lease agreement between the Company and Century (the
"Century Master Lease") and annual rent increased by $15.5 million,
representing an acquisition capitalization rate of 7.6%. The
transaction was funded through a combination of cash on hand and
proceeds from the partial settlement of forward equity sale
agreements.
On July 26, 2023, the Company committed to an up to $150.0
million preferred equity investment into the controlling entity of
Canyon Ranch, a leading provider of holistic, integrative health
and wellness guest experiences ("Canyon Ranch"). The preferred
equity has a term of 10 years and may be redeemed by Canyon Ranch
at any time, subject to a redemption premium in the first three
years. In connection with this investment, the Company entered into
(i) a call right agreement whereby the Company will have the option
to call the real estate assets of each of the Canyon Ranch facility
in Tucson, Arizona ("Canyon Ranch Tucson") and the Canyon Ranch
facility in Lenox, Massachusetts ("Canyon Ranch Lenox") subject to
certain conditions, and (ii) a right of first financing agreement
pursuant to which the Company will have the first right, but not
the obligation, to serve as the real estate capital financing
partner for Canyon Ranch with respect to the acquisition, build-out
and/or redevelopment of future wellness resorts. If the call
right(s) are exercised, Canyon Ranch would continue to operate the
applicable wellness resort(s) subject to a long-term triple net
master lease with the Company.
On August 22, 2023, the Company provided $140.1 million in
mortgage financing to Canyon Ranch secured primarily by Canyon
Ranch Tucson and Canyon Ranch Lenox. The proceeds from the mortgage
financing were used to refinance Canyon Ranch’s existing CMBS debt
secured by these two assets. The mortgage financing has an initial
term of two years with three one-year extensions, exercisable at
Canyon Ranch’s option, subject to satisfying certain customary
extension conditions.
On September 6, 2023, the Company completed the previously
announced transaction to acquire four real estate assets from
Century in Alberta, Canada: Century Casino & Hotel Edmonton,
Century Casino St. Albert and Century Mile Racetrack and Casino,
each in Edmonton, Alberta and Century Downs Racetrack and Casino in
Calgary, Alberta, (collectively the “Century Canadian Portfolio”)
for an aggregate purchase price of approximately C$221.7 million
(approximately US$162.4 million based on the exchange rate at the
time of closing). Simultaneous with the acquisition, the Century
Canadian Portfolio was added to the Century Master Lease and annual
rent increased by C$17.3 million (approximately US$12.7 million
based on the exchange rate at the time of closing) representing an
implied acquisition capitalization rate of 7.8%. The transaction
was funded through a combination of proceeds from the partial
settlement of forward equity sale agreements and a draw under the
Company’s existing revolving credit facility (the "Revolving Credit
Facility") in Canadian dollars.
Subsequent to quarter end, on October 19, 2023, the Company
announced that it had acquired the real estate assets of 38 bowling
entertainment centers from Bowlero Corp. (NYSE: BOWL) ("Bowlero")
in a sale-leaseback transaction for an aggregate purchase price of
$432.9 million. Simultaneous with the transaction, the Company
entered into a triple-net master lease agreement with Bowlero. The
lease has an initial total annual rent of $31.6 million,
representing an acquisition capitalization rate of 7.3%, and an
initial term of 25 years with six 5-year tenant renewal options. In
connection with the transaction, the Company will have the right of
first offer for a term of eight years to acquire the real estate
assets of any current or future Bowlero properties in the event
that Bowlero elects to enter into a sale-leaseback transaction. The
transaction was funded through a combination of equity interests in
a newly formed VICI subsidiary, cash on hand, and the partial
settlement of forward equity sale agreements.
Third Quarter 2023 Capital Markets Activity
On August 31, 2023, the Company physically settled 3,400,000
shares under the January 2023 forward sale agreements in exchange
for net proceeds of approximately $108.4 million. Subsequent to
quarter-end, on October 17, 2023, the Company physically settled
all the remaining 17,702,500 shares of common stock under the
January 2023 forward sale agreements in exchange for net proceeds
of approximately $560.3 million.
During the three months ended September 30, 2023, the Company
sold a total of 7,843,352 shares under its ATM program for a gross
value of $242.3 million, all of which were sold subject to a
forward sale agreement (the "Q3 2023 ATM Forward Sale Agreement").
The Company did not receive any proceeds from the sale of shares at
the time it entered into the Q3 2023 ATM Forward Sale
Agreement.
During the three months ended September 30, 2023, the Company
entered into forward-starting interest rate swap agreements with an
aggregate notional amount of $150.0 million, intended to reduce the
variability in future cash flows for a forecasted issuance of
long-term debt over a maximum period ended December 2024.
The following table details the issuance of outstanding shares
of common stock, including restricted common stock:
Nine Months Ended September
30,
Common Stock Outstanding
2023
2022
Beginning Balance January 1,
963,096,563
628,942,092
Issuance of common stock upon physical
settlement of forward sale agreements
53,192,592
119,000,000
Issuance of common stock in connection
with the MGP Transactions
—
214,552,532
Issuance of restricted and unrestricted
common stock under the stock incentive program, net of
forfeitures
538,728
598,800
Ending Balance September 30,
1,016,827,883
963,093,424
The following table reconciles the weighted-average shares of
common stock outstanding used in the calculation of basic earnings
per share to the weighted-average shares of common stock
outstanding used in the calculation of diluted earnings per
share:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Determination of shares:
Weighted-average shares of common stock
outstanding
1,012,986,784
962,573,646
1,007,110,068
848,839,357
Assumed conversion of restricted stock
602,856
988,518
790,478
795,370
Assumed settlement of forward sale
agreements
—
572,176
536,906
1,188,310
Diluted weighted-average shares of common
stock outstanding
1,013,589,640
964,134,340
1,008,437,452
850,823,037
Balance Sheet and Liquidity
As of September 30, 2023, the Company had approximately $17.1
billion in total debt and approximately $3.7 billion in liquidity,
comprised of $510.9 million in cash and cash equivalents, $807.2
million of estimated net proceeds available upon settlement of
outstanding forward sale agreements, and approximately $2.3 billion
of availability under the Revolving Credit Facility. In addition,
the Revolving Credit Facility includes the option to increase the
revolving loan commitments by up to $1.0 billion to the extent that
any one or more lenders (from the syndicate or otherwise) agree to
provide such additional credit extensions. The Company has also
entered into forward-starting interest rate swap agreements with an
aggregate notional amount of $400.0 million as of September 30,
2023.
The Company’s outstanding indebtedness as of September 30, 2023
was as follows:
($ in millions USD)
September 30, 2023
Revolving Credit Facility
USD Borrowings
$
—
CAD Borrowings
158.3
5.625% Notes Due 2024
1,050.0
3.500% Notes Due 2025
750.0
4.375% Notes Due 2025
500.0
4.625% Notes Due 2025
800.0
4.500% Notes Due 2026
500.0
4.250% Notes Due 2026
1,250.0
5.750% Notes Due 2027
750.0
3.750% Notes Due 2027
750.0
4.500% Notes Due 2028
350.0
4.750% Notes Due 2028
1,250.0
3.875% Notes Due 2029
750.0
4.625% Notes Due 2029
1,000.0
4.950% Notes Due 2030
1,000.0
4.125% Notes Due 2030
1,000.0
5.125% Notes Due 2032
1,500.0
5.625% Notes Due 2052
750.0
Total Unsecured Debt Outstanding, Face
Value
$
14,108.3
MGM Grand/Mandalay Bay CMBS Debt Due
2032
$
3,000.0
Total Debt Outstanding, Face Value
$
17,108.3
Cash and Cash Equivalents
510.9
Net Debt
$
16,597.4
Dividends
On September 7, 2023, the Company declared a regular quarterly
cash dividend of $0.415 per share, representing a 6.4%
year-over-year increase. The Q3 2023 dividend was paid on October
5, 2023 to stockholders of record as of the close of business on
September 21, 2023 and totaled in aggregate approximately $422.0
million.
2023 Guidance
The Company is increasing AFFO guidance for the full year 2023.
In determining AFFO, the Company adjusts for certain items that are
otherwise included in determining net income attributable to common
stockholders, the most comparable generally accepted accounting
principles in the United States (“GAAP”) financial measure. In
reliance on the exception provided by applicable rules, the Company
does not provide guidance for GAAP net income, the most comparable
GAAP financial measure, or a reconciliation of 2023 AFFO to GAAP
net income because we are unable to predict with reasonable
certainty the amount of the change in non-cash allowance for credit
losses under ASU No. 2016-13 - Financial Instruments—Credit Losses
(Topic 326) (“ASC 326”) for a future period. The non-cash change in
allowance for credit losses under ASC 326 with respect to a future
period is dependent upon future events that are entirely outside of
the Company’s control and may not be reliably predicted, including
its tenants’ respective financial performance, fluctuations in the
trading price of their common stock, credit ratings and outlook
(each to the extent applicable), as well as broader macroeconomic
performance. Based on past results and, as disclosed in our
historical financial results, the impact of these adjustments could
be material, individually or in the aggregate, to the Company’s
reported GAAP results. For more information, see “Non-GAAP
Financial Measures.”
The Company estimates AFFO for the year ending December 31, 2023
will be between $2,170 million and $2,180 million, or between $2.14
and $2.15 per diluted share. Guidance does not include the impact
on operating results from any pending or possible future
acquisitions or dispositions, capital markets activity, or other
non-recurring transactions.
The following is a summary of the Company’s full-year 2023
guidance:
Updated Guidance
Prior Guidance
For the Year Ending December 31, 2023
($ in millions):
Low
High
Low
High
Estimated Adjusted Funds From Operations
(AFFO)
$2,170
$2,180
$2,130
$2,160
Estimated Adjusted Funds From Operations
(AFFO) per diluted share
$2.14
$2.15
$2.11
$2.14
Estimated Weighted Average Share Count for
the Year (in millions)
1,014.4
1,014.4
1,011.7
1,011.7
The above per share estimates reflect the dilutive effect of the
8,170,658 shares pending under the Q2 and Q3 2023 ATM Forward Sale
Agreements as calculated under the treasury stock method. VICI OP
units held by a third party are reflected as non-controlling
interests and the income allocable to them is deducted from net
income to arrive at net income attributable to common stockholders
and AFFO; accordingly, guidance represents AFFO per share
attributable to common stockholders based solely on outstanding
shares of VICI common stock.
The estimates set forth above reflect management’s view of
current and future market conditions, including assumptions with
respect to the earnings impact of the events referenced in this
release. The estimates set forth above may be subject to
fluctuations as a result of several factors and there can be no
assurance that the Company’s actual results will not differ
materially from the estimates set forth above.
Supplemental Information
In addition to this release, the Company has furnished
Supplemental Financial Information, which is available on our
website in the “Investors” section, under the menu heading
“Financials”. This additional information is being provided as a
supplement to the information in this release and our other filings
with the SEC. The Company has no obligation to update any of the
information provided to conform to actual results or changes in the
Company’s portfolio, capital structure or future expectations.
Conference Call and Webcast
The Company will host a conference call and audio webcast on
Thursday, October 26, 2023 at 10:00 a.m. Eastern Time (ET). The
conference call can be accessed by dialing +1 833-470-1428
(domestic) or +1 929-526-1599 (international) and entering the
conference ID 972923. An audio replay of the conference call will
be available from 1:00 p.m. ET on October 26, 2023 until midnight
ET on November 2, 2023 and can be accessed by dialing +1
866-813-9403 (domestic) or +44 204-525-0658 (international) and
entering the passcode 383530.
A live audio webcast of the conference call will be available in
listen-only mode through the “Investors” section of the Company’s
website, www.viciproperties.com, on October 26, 2023, beginning at
10:00 a.m. ET. A replay of the webcast will be available shortly
after the call on the Company’s website and will continue for one
year.
About VICI Properties
VICI Properties Inc. is an S&P 500® experiential real estate
investment trust that owns one of the largest portfolios of
market-leading gaming, hospitality and entertainment destinations,
including Caesars Palace Las Vegas, MGM Grand and the Venetian
Resort Las Vegas, three of the most iconic entertainment facilities
on the Las Vegas Strip. VICI Properties owns 92 experiential assets
across a geographically diverse portfolio consisting of 54 gaming
properties and 38 non-gaming experiential properties across the
United States and Canada. The portfolio is comprised of
approximately 125 million square feet and features approximately
60,300 hotel rooms and approximately 500 restaurants, bars,
nightclubs and sportsbooks. Its properties are occupied by
industry-leading gaming, leisure and hospitality operators under
long-term, triple-net lease agreements. VICI Properties has a
growing array of real estate and financing partnerships with
leading non-gaming experiential operators, including Bowlero, Great
Wolf Resorts, Cabot, Canyon Ranch and Chelsea Piers. VICI
Properties also owns four championship golf courses and 33 acres of
undeveloped and underdeveloped land adjacent to the Las Vegas
Strip. VICI Properties’ goal is to create the highest quality and
most productive experiential real estate portfolio through a
strategy of partnering with the highest quality experiential place
makers and operators. 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 “anticipates,” “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. Among those risks, uncertainties and other factors
are: the impact of changes in general economic conditions and
market developments, including inflation, interest rate changes,
foreign currency exchange rate fluctuations, supply chain
disruptions, consumer confidence levels, changes in consumer
spending, unemployment levels and depressed real estate prices
resulting from the severity and duration of any downturn in the
U.S. or global economy; the impact of recent and potential future
interest rate increases on us, including our ability to
successfully pursue investments in, and acquisitions of, additional
properties and to obtain debt financing for such investments at
attractive interest rates, or at all; risks associated with our
pending and recently closed transactions, including our ability or
failure to realize the anticipated benefits thereof; our dependence
on our tenants at our properties, including their financial
condition, results of operations, cash flows and performance, and
their affiliates that serve as guarantors of the lease payments,
and the negative consequences any material adverse effect on their
respective businesses could have on us; our ability to obtain the
financing necessary to complete any acquisitions on the terms we
expect in a timely manner, or at all; the anticipated benefits of
certain arrangements with certain tenants relating to our funding
of "same store" capital improvements in exchange for increased rent
pursuant to the terms of our agreements with such tenants, which we
refer to as the Partner Property Growth Fund; our borrowers’
ability to repay their outstanding loan obligations to us; our
dependence on the gaming industry; the impact of extensive
regulation from gaming and other regulatory authorities; the
ability of our tenants to obtain and maintain regulatory approvals
in connection with the operation of our properties, or the
imposition of conditions to such regulatory approvals; the
possibility that our tenants may choose not to renew their lease
agreements with us following the initial or subsequent terms of the
leases; restrictions on our ability to sell our properties subject
to our lease agreements; our tenants and any guarantors’ historical
results may not be a reliable indicator of their future results;
our substantial amount of indebtedness, and ability to service,
refinance and otherwise fulfill our obligations under such
indebtedness; our historical financial information may not be
reliable indicators of our future results of operations, financial
condition and cash flows; our inability to successfully pursue
investments in, and acquisitions of, additional properties; the
possibility that we identify significant environmental, tax, legal
or other issues that materially and adversely impact the value of
assets acquired or secured as collateral (or other benefits we
expect to receive) in any of our pending or completed transactions;
the possibility of adverse tax consequences as a result of our
pending or recently completed transactions, including tax
protection agreements to which we are a party; increased volatility
in our stock price, including as a result of our pending or
recently completed transactions; our inability to maintain our
qualification for taxation as a REIT; our reliance on distributions
received from our subsidiaries, including VICI Properties OP LLC
("VICI OP"), to make distributions to our stockholders; our ability
to continue to make distributions to holders of our common stock or
maintain anticipated levels of distributions over time; and
competition for transaction opportunities, including from other
REITs, investment companies, private equity firms and hedge funds,
sovereign funds, lenders, gaming companies and other investors that
may have greater resources and access to capital and a lower cost
of capital or different investment parameters than us.
Although the Company believes that in making such
forward-looking statements its expectations are based upon
reasonable assumptions, such statements may be influenced by
factors that could cause actual outcomes and results to be
materially different from those projected. The Company cannot
assure you that the assumptions upon which these statements are
based will prove to have been correct. Additional important factors
that may affect the Company’s business, results of operations and
financial position are described from time to time in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022,
Quarterly Reports on Form 10-Q and the Company’s other 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.
Non-GAAP Financial Measures
This press release presents Funds From Operations (“FFO”), FFO
per share, Adjusted Funds From Operations (“AFFO”), AFFO per share
and Adjusted EBITDA, which are not required by, or presented in
accordance with, generally accepted accounting principles in the
United States (“GAAP”). These are non-GAAP financial measures and
should not be construed as alternatives to net income or as an
indicator of operating performance (as determined in accordance
with GAAP). We believe FFO, FFO per share, AFFO, AFFO per share and
Adjusted EBITDA provide a meaningful perspective of the underlying
operating performance of our business.
FFO is a non-GAAP financial measure that is considered a
supplemental measure for the real estate industry and a supplement
to GAAP measures. Consistent with the definition used by the
National Association of Real Estate Investment Trusts (NAREIT), we
define FFO as net income (or loss) attributable to common
stockholders (computed in accordance with GAAP) excluding (i) gains
(or losses) from sales of certain real estate assets, (ii)
depreciation and amortization related to real estate, (iii) gains
and losses from change in control, (iv) impairment write-downs of
certain real estate assets and investments in entities when the
impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity and (v) our
proportionate share of such adjustments from our investment in
unconsolidated affiliate.
AFFO is a non-GAAP financial measure that we use as a
supplemental operating measure to evaluate our performance. We
calculate our AFFO by adding or subtracting from FFO non-cash
leasing and financing adjustments, non-cash change in allowance for
credit losses, non-cash stock-based compensation expense,
transaction costs incurred in connection with the acquisition of
real estate investments, amortization of debt issuance costs and
original issue discount, other non-cash interest expense, non-real
estate depreciation (which is comprised of the depreciation related
to our golf course operations), capital expenditures (which are
comprised of additions to property, plant and equipment related to
our golf course operations), impairment charges related to
non-depreciable real estate, gains (or losses) on debt
extinguishment and interest rate swap settlements, other gains
(losses), other non-recurring non-cash transactions, our
proportionate share of non-cash adjustments from our investment in
unconsolidated affiliate (including the amortization of any basis
differences) with respect to certain of the foregoing and non-cash
adjustments attributable to non-controlling interest with respect
to certain of the foregoing.
We calculate Adjusted EBITDA by adding or subtracting from AFFO
contractual interest expense (including the impact of the
forward-starting interest rate swaps and treasury locks) and
interest income (collectively, interest expense, net), income tax
expense and our proportionate share of such adjustments from our
investment in unconsolidated affiliate.
These non-GAAP financial measures: (i) do not represent cash
flow from operations as defined by GAAP; (ii) should not be
considered as an alternative to net income as a measure of
operating performance or to cash flows from operating, investing
and financing activities; and (iii) are not alternatives to cash
flow as a measure of liquidity. In addition, these measures should
not be viewed as measures of liquidity, nor do they measure our
ability to fund all of our cash needs, including our ability to
make cash distributions to our stockholders, to fund capital
improvements, or to make interest payments on our indebtedness.
Investors are also cautioned that FFO, FFO per share, AFFO, AFFO
per share and Adjusted EBITDA, as presented, may not be comparable
to similarly titled measures reported by other real estate
companies, including REITs, due to the fact that not all real
estate companies use the same definitions. Our presentation of
these measures does not replace the presentation of our financial
results in accordance with GAAP.
Reconciliations of net income to FFO, FFO per share, AFFO, AFFO
per share and Adjusted EBITDA are included in this release.
VICI Properties Inc.
Consolidated Balance
Sheets
(In thousands, except share
and per share data)
September 30, 2023
December 31, 2022
Assets
Real estate portfolio:
Investments in leases - sales-type,
net
$
22,889,984
$
17,172,325
Investments in leases - financing
receivables, net
17,337,665
16,740,770
Investments in loans and securities,
net
973,217
685,793
Investment in unconsolidated affiliate
—
1,460,775
Land
150,727
153,560
Cash and cash equivalents
510,884
208,933
Short-term investments
—
217,342
Other assets
969,672
936,328
Total assets
$
42,832,149
$
37,575,826
Liabilities
Debt, net
$
16,692,728
$
13,739,675
Accrued expenses and deferred revenue
222,430
213,388
Dividends and distributions payable
426,861
380,178
Other liabilities
954,448
952,472
Total liabilities
18,296,467
15,285,713
Stockholders’ equity
Common stock
10,168
9,631
Preferred stock
—
—
Additional paid-in capital
23,316,140
21,645,499
Accumulated other comprehensive income
186,241
185,353
Retained earnings
652,402
93,154
Total VICI stockholders’ equity
24,164,951
21,933,637
Non-controlling interests
370,731
356,476
Total stockholders’ equity
24,535,682
22,290,113
Total liabilities and stockholders’
equity
$
42,832,149
$
37,575,826
_______________________________________________________
Note: As of September 30, 2023 and December 31, 2022, our
Investments in leases - sales-type, Investments in leases -
financing receivables, Investments in loans and securities and
Other assets (sales-type sub-leases) are net of allowance for
credit losses of $755.4 million, $707.0 million, $22.8 million and
$19.3 million, respectively, and $570.4 million, $726.7 million,
$6.9 million and $19.8 million, respectively.
VICI Properties Inc.
Consolidated Statement of
Operations
(In thousands,
except share and per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Revenues
Income from sales-type leases
$
500,212
$
376,048
$
1,473,961
$
1,077,952
Income from lease financing receivables,
loans and securities
378,502
350,945
1,122,703
685,544
Other income
18,179
17,862
55,043
41,811
Golf revenues
7,425
6,688
28,416
25,484
Total revenues
904,318
751,543
2,680,123
1,830,791
Operating expenses
General and administrative
14,422
12,063
44,347
33,311
Depreciation
1,011
816
2,712
2,371
Other expenses
18,179
17,862
55,043
41,811
Golf expenses
6,332
5,186
18,874
16,330
Change in allowance for credit losses
95,997
232,763
166,119
865,459
Transaction and acquisition expenses
3,566
1,947
3,385
19,366
Total operating expenses
139,507
270,637
290,480
978,648
Income from unconsolidated affiliate
—
22,719
1,280
37,853
Interest expense
(204,927
)
(169,354
)
(612,881
)
(370,624
)
Interest income
7,341
3,024
16,194
3,897
Other (losses) gains
(1,122
)
—
4,295
—
Income before income taxes
566,103
337,295
1,798,531
523,269
Income tax expense
(644
)
(417
)
(3,630
)
(1,844
)
Net income
565,459
336,878
1,794,901
521,425
Less: Net income attributable to
non-controlling interests
(9,130
)
(5,973
)
(29,130
)
(7,843
)
Net income attributable to common
stockholders
$
556,329
$
330,905
$
1,765,771
$
513,582
Net income per common share
Basic
$
0.55
$
0.34
$
1.75
$
0.61
Diluted
$
0.55
$
0.34
$
1.75
$
0.60
Weighted average number of common
shares outstanding
Basic
1,012,986,784
962,573,646
1,007,110,068
848,839,357
Diluted
1,013,589,640
964,134,340
1,008,437,452
850,823,037
VICI Properties
Inc.
Reconciliation of Net Income
to FFO, FFO per Share, AFFO, AFFO per Share and Adjusted
EBITDA
(In thousands, except share and
per share data)
Three Months Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net income attributable to common
stockholders
$
556,329
$
330,905
$
1,765,771
$
513,582
Real estate depreciation
—
—
—
—
Joint venture depreciation and
non-controlling interest adjustments
—
9,743
1,426
17,053
FFO attributable to common
stockholders
556,329
340,648
1,767,197
530,635
Non-cash leasing and financing
adjustments
(131,344
)
(108,553
)
(383,688
)
(230,522
)
Non-cash change in allowance for credit
losses
95,997
232,763
166,119
865,459
Non-cash stock-based compensation
4,019
3,493
11,517
9,359
Transaction and acquisition expenses
3,566
1,947
3,385
19,366
Amortization of debt issuance costs and
original issue discount
17,283
10,326
53,645
38,294
Other depreciation
833
785
2,442
2,280
Capital expenditures
(444
)
(437
)
(1,762
)
(1,093
)
Gain on extinguishment of debt and
interest rate swap settlements
—
—
—
(5,405
)
Other losses (gains)(1)
1,122
—
(4,295
)
—
Joint venture non-cash adjustments and
non-controlling interest adjustments
253
(10,315
)
2,066
(22,171
)
AFFO attributable to common
stockholders
547,614
470,657
1,616,626
1,206,202
Interest expense, net
180,303
156,004
543,042
333,838
Income tax expense
644
417
3,630
1,844
Joint venture adjustments and
non-controlling interest adjustments
(2,155
)
11,536
(3,176
)
19,187
Adjusted EBITDA attributable to common
stockholders
$
726,406
$
638,614
$
2,160,122
$
1,561,071
Net income per common share
Basic
$
0.55
$
0.34
$
1.75
$
0.61
Diluted
$
0.55
$
0.34
$
1.75
$
0.60
FFO per common share
Basic
$
0.55
$
0.35
$
1.75
$
0.63
Diluted
$
0.55
$
0.35
$
1.75
$
0.62
AFFO per common share
Basic
$
0.54
$
0.49
$
1.61
$
1.42
Diluted
$
0.54
$
0.49
$
1.60
$
1.42
Weighted average number of shares of
common stock outstanding
Basic
1,012,986,784
962,573,646
1,007,110,068
848,839,357
Diluted
1,013,589,640
964,134,340
1,008,437,452
850,823,037
____________________
(1) Represents non-cash foreign currency remeasurement
adjustments and gain on sale of land.
VICI Properties Inc.
Revenue Breakdown
(In thousands)
Three Months Ended September
30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Contractual revenue from sales-type
leases
Caesars Regional Master Lease (excluding
Harrah's NOLA, AC, and Laughlin) & Joliet Lease
$
132,952
$
122,729
$
398,856
$
368,187
Caesars Las Vegas Master Lease
113,619
105,556
340,857
316,668
MGM Grand/Mandalay Bay Lease
77,468
—
224,858
—
The Venetian Resort Las Vegas Lease
64,375
62,500
191,875
150,298
Greektown Lease
13,214
12,830
39,001
38,490
Hard Rock Cincinnati Lease
11,176
11,010
33,528
33,030
Southern Indiana Lease
8,288
8,166
24,782
24,416
Century Master Lease (excluding Century
Canadian Portfolio)
9,740
6,376
23,470
19,128
Margaritaville Lease
6,615
5,953
19,624
17,831
Income from sales-type leases non-cash
adjustment (1)
62,765
40,928
177,110
109,904
Income from sales-type leases
500,212
376,048
1,473,961
1,077,952
Contractual income from lease financing
receivables
MGM Master Lease
186,150
215,000
558,583
363,112
Harrah's NOLA, AC, and Laughlin
42,966
39,663
128,898
118,989
JACK Entertainment Master Lease
17,511
17,250
52,445
51,191
Mirage Lease
22,500
—
67,500
—
Gold Strike Lease
10,000
—
25,000
—
Foundation Gaming Master Lease
6,063
—
18,189
—
PURE Canadian Master Lease
4,054
—
11,913
—
Century Canadian Portfolio
887
—
887
—
Income from lease financing receivables
non-cash adjustment (1)
68,586
67,629
206,625
120,614
Income from lease financing
receivables
358,717
339,542
1,070,040
653,906
Contractual interest income
Senior Secured Notes
2,344
—
4,847
—
Senior Secured Loans
4,565
9,508
20,395
27,723
Mezzanine Loans & Preferred Equity
12,883
1,898
27,468
3,910
Income from loans non-cash adjustment
(1)
(7
)
(3
)
(47
)
5
Income from loans
19,785
11,403
52,663
31,638
Income from lease financing receivables
and loans
378,502
350,945
1,122,703
685,544
Other income
18,179
17,862
55,043
41,811
Golf revenues
7,425
6,688
28,416
25,484
Total revenues
$
904,318
$
751,543
$
2,680,123
$
1,830,791
____________________
(1) Amounts represent non-cash adjustments to recognize revenue
on an effective interest basis in accordance with GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231025482838/en/
Investor Contacts: Investors@viciproperties.com (646)
949-4631 Or David Kieske EVP, Chief Financial Officer
DKieske@viciproperties.com Moira McCloskey SVP, Capital Markets
MMcCloskey@viciproperties.com
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