VICI Vici Properties Inc

- Reports 6.6% Year-over-Year Revenue Growth - - Announced Capital Investment in the Venetian Resort through the Partner Property Growth Fund - - Announced $250 Million Great Wolf Mezzanine Loan - - Raises Guidance for Full Year 2024 -

VICI Properties Inc. (NYSE: VICI) (“VICI Properties”, "VICI" or the “Company”), an experiential real estate investment trust, today reported results for the quarter ended June 30, 2024. All per share amounts included herein are on a per diluted common share basis unless otherwise stated.

Second Quarter 2024 Financial and Operating Highlights

• Total revenues increased 6.6% year-over-year to $957.0 million
• Net income attributable to common stockholders increased 7.3% year-over-year to $741.3 million and, on a per share basis, increased 3.7% year-over-year to $0.71
• AFFO attributable to common stockholders increased 9.6% year-over-year to $592.4 million and, on a per share basis, increased 5.9% year-over-year to $0.57
• Announced an up to $700 million investment through VICI's Partner Property Growth Fund strategy to fund extensive reinvestment projects at The Venetian Resort Las Vegas
• Announced the origination of a $250 million mezzanine loan as part of a $1.55 billion financing for Great Wolf Resorts, Inc. through the VICI Experiential Credit Solutions strategy
• Ended the quarter with $347.2 million in cash and cash equivalents and $681.0 million of estimated forward sale equity proceeds
• Raised AFFO guidance for full year 2024 to between $2,350 million and $2,370 million, or between $2.24 and $2.26 per diluted share

CEO Comments

Edward Pitoniak, Chief Executive Officer of VICI Properties, said, “In the second quarter, we committed up to $950.0 million of capital into existing high-quality partnerships, $650.0 million of which will be deployed this year, comprised of our $400.0 million property improvement investment into the Venetian and $250.0 million credit investment into Great Wolf Resorts. We funded $350.0 million of the aggregate commitment in the second quarter and an additional $150.0 million of the Venetian Capital Investment subsequent to quarter end. Given the funding cadence of these investments and our strong liquidity position at quarter end, we were able to fund them with capital on hand. The Venetian Capital Investment exemplifies the value of our Partner Property Growth Fund strategy, which provides attractive capital deployment opportunities to invest into existing VICI assets at scale, and the Great Wolf transaction demonstrates VICI's ability to recycle capital via our VICI Experiential Credit Solutions strategy. We believe these investments demonstrate that VICI has advantageous levers for sustained, sustainable growth with quality tenants in durable sectors across attractive geographies."

Second Quarter 2024 Financial Results

Total Revenues

Total revenues were $957.0 million for the quarter, an increase of 6.6% compared to $898.2 million for the quarter ended June 30, 2023. Total revenues for the quarter included $131.3 million of non-cash leasing and financing adjustments and $19.3 million of other income.

Net Income Attributable to Common Stockholders

Net income attributable to common stockholders was $741.3 million for the quarter, or $0.71 per share, compared to $690.7 million, or $0.69 per share, for the quarter ended June 30, 2023.

Funds from Operations (“FFO”)

FFO attributable to common stockholders was $741.3 million for the quarter, or $0.71 per share, compared to $690.7 million, or $0.69 per share, for the quarter ended June 30, 2023.

Adjusted Funds from Operations (“AFFO”)

AFFO attributable to common stockholders was $592.4 million for the quarter, an increase of 9.6% compared to $540.4 million for the quarter ended June 30, 2023. AFFO per share was $0.57 for the quarter, an increase of 5.9% compared to $0.54 for the quarter ended June 30, 2023.

Second Quarter 2024 Acquisitions and Portfolio Activity

Acquisitions and Investments

On May 1, 2024, the Company announced that it will provide up to $700.0 million of capital to The Venetian Resort Las Vegas ("The Venetian Resort") for extensive reinvestment projects through its Partner Property Growth Fund strategy (the "Venetian Capital Investment"). The Venetian Capital Investment is comprised of $400.0 million expected to be drawn in 2024 and an incremental $300.0 million that The Venetian Resort will have the option, but not the obligation, to draw in whole or in part until November 1, 2026. The initial $400.0 million investment is and will be funded in three quarterly capital fundings based on a fixed schedule: $100.0 million was drawn in Q2 2024, $150.0 million was drawn in Q3 2024 and $150.0 million will be drawn in Q4 2024. Annual rent under the existing Venetian Resort lease (as amended, the “Venetian Resort Lease”) increases commencing on the first day of the quarter immediately following each capital funding at a 7.25% yield (the "Incremental Venetian Rent"). The Incremental Venetian Rent will begin escalating annually at 2.0% on March 1, 2029 and, commencing on March 1, 2031, will begin escalating on the same terms as the rest of the rent payable under the Venetian Resort Lease with annual escalation equal to the greater of 2.0% or CPI, capped at 3.0%. The $100.0 million draw in Q2 2024 and the $150.0 million draw in Q3 2024 were funded, and the $150.0 million draw in Q4 2024 is expected to be funded, with a combination of cash and proceeds from the partial settlement of the Company's outstanding forward equity sale agreements.

On May 9, 2024, the Company announced that it had originated a $250.0 million mezzanine loan (the “Mezzanine Loan”) as part of a $1.55 billion financing that also includes a single borrower group CMBS securitization (the “Great Wolf Loan”) for Great Wolf Resorts, Inc. (“Great Wolf”) through its VICI Experiential Credit Solutions strategy. The Mezzanine Loan has an annual fixed interest rate and an initial term of two years with three 12-month extension options, subject to the satisfaction of certain conditions. In connection with the Great Wolf Loan origination, Great Wolf repaid VICI’s $79.5 million mezzanine loan for Great Wolf Lodge Maryland. The remaining $170.5 million capital commitment was funded with cash.

Second Quarter 2024 Capital Markets Activity

Subsequent to quarter end, on July 1, 2024, the Company physically settled 4,000,000 shares under its outstanding ATM forward sale agreements in exchange for aggregate net proceeds of approximately $115.2 million.

Subsequent to quarter end, during July 2024, the Company entered into forward-starting interest rate swaps with an aggregate notional amount of $100.0 million, which is intended to reduce the variability in future cash flows for a forecasted issuance of long-term debt.

The following table details the issuance of outstanding shares of common stock, including restricted common stock:

 

 

Six Months Ended June 30,

Common Stock Outstanding

 

2024

 

2023

Beginning Balance January 1,

 

1,042,702,763

 

963,096,563

Issuance of common stock upon physical settlement of forward sale agreements

 

—

 

43,792,592

Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures

 

468,980

 

537,355

Ending Balance June 30,

 

1,043,171,743

 

1,007,426,510

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 June 30,

 

Six Months Ended June 30,

(in thousands)

2024

 

2023

 

2024

 

2023

Determination of shares:

 

 

 

 

 

 

 

Weighted-average shares of common stock outstanding

1,042,651

 

1,006,894

 

1,042,530

 

1,004,190

Assumed conversion of restricted stock

309

 

696

 

361

 

884

Assumed settlement of forward sale agreements

—

 

379

 

247

 

805

Diluted weighted-average shares of common stock outstanding

1,042,960

 

1,007,968

 

1,043,138

 

1,005,879

Balance Sheet and Liquidity

As of June 30, 2024, the Company had approximately $17.1 billion in total debt and approximately $3.4 billion in liquidity, comprised of $347.2 million in cash and cash equivalents, $681.0 million of estimated net proceeds available upon physical settlement of 22,856,855 shares outstanding under its forward sale agreements, and approximately $2.3 billion of availability under its 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.

Subsequent to quarter end, on July 1, 2024, the Company physically settled 4,000,000 shares under its outstanding ATM forward sale agreements in exchange for aggregate net proceeds of approximately $115.2 million.

The Company’s outstanding indebtedness as of June 30, 2024 was as follows:

($ in millions USD)

June 30, 2024

Revolving Credit Facility

 

USD Borrowings

$

—

 

CAD Borrowings(1)

 

157.6

GBP Borrowings(1)

 

11.4

 

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

 

5.750% Notes Due 2034

 

550.0

 

5.625% Notes Due 2052

 

750.0

 

6.125% Notes Due 2054

 

500.0

 

Total Unsecured Debt Outstanding

$

14,119.0

 

CMBS Debt Due 2032

$

3,000.0

 

Total Debt Outstanding

$

17,119.0

 

Cash and Cash Equivalents

$

347.2

 

Net Debt

$

16,771.8

 

_______________

(1)

 

Based on applicable exchange rates as of June 30, 2024.

Dividends

On June 7, 2024, the Company declared a regular quarterly cash dividend of $0.415 per share. The Q2 2024 dividend was paid on July 3, 2024 to stockholders of record as of the close of business on June 18, 2024 and totaled in aggregate approximately $432.9 million.

2024 Guidance

The Company is raising its AFFO guidance for the full year 2024. 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 2024 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, 2024 will be between $2,350 million and $2,370 million, or between $2.24 and $2.26 per diluted common 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 updated full-year 2024 guidance:

 

 

Updated Guidance

 

Prior Guidance

For the Year Ending December 31, 2024:

 

Low

 

High

 

Low

 

High

Estimated Adjusted Funds From Operations (AFFO)

 

$2,350

 

$2,370

 

$2,320

 

$2,355

Estimated Adjusted Funds From Operations (AFFO) per diluted share

 

$2.24

 

$2.26

 

$2.22

 

$2.25

Estimated Weighted Average Share Count for the Year (in millions)

 

1,048.0

 

1,048.0

 

1,046.0

 

1,046.0

The above per share estimates reflect the dilutive effect of the 18,856,855 shares currently pending under the Company's outstanding forward sale agreements as calculated under the treasury stock method. VICI partnership units held by third parties 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, except as may be required by applicable law.

Conference Call and Webcast

The Company will host a conference call and audio webcast on Thursday, August 1, 2024 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 896264. An audio replay of the conference call will be available from 1:00 p.m. ET on August 1, 2024 until midnight ET on August 8, 2024 and can be accessed by dialing +1 866-813-9403 (domestic) or +44 204-525-0658 (international) and entering the passcode 762138.

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 August 1, 2024, 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 93 experiential assets across a geographically diverse portfolio consisting of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio is comprised of approximately 127 million square feet and features approximately 60,300 hotel rooms and over 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 operators in other experiential sectors, including Bowlero, Cabot, Canyon Ranch, Chelsea Piers, Great Wolf Resorts, Homefield and Kalahari Resorts. 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 own 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 rates, 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 increased interest rates 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 recently closed transactions, including our ability or failure to realize the anticipated benefits thereof; our dependence on our tenants at our properties 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; the possibility that any future transactions may not be consummated on the terms or timeframes contemplated, or at all, including our ability to obtain the financing necessary to complete any acquisitions on the terms we expect in a timely manner, or at all, the ability of the parties to satisfy the conditions set forth in the definitive transaction documents, including the receipt of, or delays in obtaining, governmental and regulatory approvals and consents required to consummate such transactions, or other delays or impediments to completing the transactions; the anticipated benefits of certain arrangements with certain tenants in connections with 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 decision and ability to exercise our purchase rights under our put-call agreements, call agreements, right of first refusal agreements and right of first offer agreements; our borrowers’ ability to repay their outstanding loan obligations to us; our dependence on the gaming industry; our ability to pursue our business and growth strategies may be limited by the requirement that we distribute 90% of our REIT taxable income in order to qualify for taxation as a REIT and that we distribute 100% of our REIT taxable income in order to avoid current entity-level U.S. federal income taxes; 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 respective lease agreements following the initial or subsequent terms of the leases; restrictions on our ability to sell our properties subject to the 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; the possibility that we identify significant environmental, tax, legal or other issues, including additional costs or liabilities, 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 recently completed transactions; the impact of changes to the U.S. federal income tax laws; the possibility of adverse tax consequences as a result of our 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 recently completed transactions; our inability to maintain our qualification for taxation as a REIT; the impact of climate change, natural disasters, war, political and public health conditions or uncertainty or civil unrest, violence or terrorist activities or threats on our properties and changes in economic conditions or heightened travel security and health measures instituted in response to these events; the loss of the services of key personnel; the inability to attract, retain and motivate employees; the costs and liabilities associated with environmental compliance; failure to establish and maintain an effective system of integrated internal controls; our reliance on distributions received from our subsidiaries, including VICI Properties OP LLC, to make distributions to our stockholders; the potential impact on the amount of our cash distributions if we were to sell any of our properties in the future; 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, 2023, 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 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), deferred income tax benefits and expenses, 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)

 

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Real estate portfolio:

 

 

 

Investments in leases - sales-type, net

$

23,189,566

 

 

$

23,015,931

 

Investments in leases - financing receivables, net

 

18,337,881

 

 

 

18,211,102

 

Investments in loans and securities, net

 

1,461,198

 

 

 

1,144,177

 

Land

 

150,727

 

 

150,727

Cash and cash equivalents

 

347,160

 

 

 

522,574

 

Other assets

 

1,024,718

 

 

 

1,015,330

 

Total assets

$

44,511,250

 

 

$

44,059,841

 

 

 

 

 

Liabilities

 

 

 

Debt, net

$

16,727,361

 

 

$

16,724,125

 

Accrued expenses and deferred revenue

 

215,689

 

 

 

227,241

 

Dividends and distributions payable

 

437,785

 

 

 

437,599

 

Other liabilities

 

1,004,102

 

 

 

1,013,102

 

Total liabilities

 

18,384,937

 

 

 

18,402,067

 

 

 

 

 

Stockholders’ equity

 

 

 

Common stock

 

10,432

 

 

 

10,427

 

Preferred stock

 

—

 

 

 

—

 

Additional paid-in capital

 

24,128,989

 

 

 

24,125,872

 

Accumulated other comprehensive income

 

148,211

 

 

 

153,870

 

Retained earnings

 

1,431,264

 

 

 

965,762

 

Total VICI stockholders’ equity

 

25,718,896

 

 

 

25,255,931

 

Non-controlling interests

 

407,417

 

 

 

401,843

 

Total stockholders’ equity

 

26,126,313

 

 

 

25,657,774

 

Total liabilities and stockholders’ equity

$

44,511,250

 

 

$

44,059,841

 

_______________________________________________________

Note: As of June 30, 2024 and December 31, 2023, 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 $762.7 million, $706.7 million, $26.5 million and $20.0 million, respectively, and $701.1 million, $703.6 million, $29.8 million and $18.7 million, respectively.

VICI Properties Inc.

Consolidated Statement of Operations

(In thousands, except share and per share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

 

 

 

 

 

 

 

Income from sales-type leases

$

512,289

 

 

$

495,355

 

 

$

1,025,061

 

 

$

973,749

 

Income from lease financing receivables, loans and securities

 

413,735

 

 

 

373,132

 

 

 

823,036

 

 

 

744,201

 

Other income

 

19,323

 

 

 

18,525

 

 

 

38,635

 

 

 

36,864

 

Golf revenues

 

11,656

 

 

 

11,146

 

 

 

21,752

 

 

 

20,991

 

Total revenues

 

957,003

 

 

 

898,158

 

 

 

1,908,484

 

 

 

1,775,805

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

General and administrative

 

15,768

 

 

 

14,920

 

 

 

31,960

 

 

 

29,925

 

Depreciation

 

992

 

 

 

887

 

 

 

2,125

 

 

 

1,701

 

Other expenses

 

19,323

 

 

 

18,525

 

 

 

38,635

 

 

 

36,864

 

Golf expenses

 

6,813

 

 

 

6,590

 

 

 

13,324

 

 

 

12,542

 

Change in allowance for credit losses

 

(43,000

)

 

 

(41,355

)

 

 

63,918

 

 

 

70,122

 

Transaction and acquisition expenses

 

259

 

 

 

777

 

 

 

564

 

 

 

(181

)

Total operating expenses

 

155

 

 

 

344

 

 

 

150,526

 

 

 

150,973

 

 

 

 

 

 

 

 

 

Income from unconsolidated affiliate

 

—

 

 

 

—

 

 

 

—

 

 

 

1,280

 

Interest expense

 

(205,777

)

 

 

(203,594

)

 

 

(410,659

)

 

 

(407,954

)

Interest income

 

3,926

 

 

 

5,806

 

 

 

9,219

 

 

 

8,853

 

Other gains

 

990

 

 

 

3,454

 

 

 

834

 

 

 

5,417

 

Income before income taxes

 

755,987

 

 

 

703,480

 

 

 

1,357,352

 

 

 

1,232,428

 

Provision for income taxes

 

(3,234

)

 

 

(1,899

)

 

 

(4,796

)

 

 

(2,986

)

Net income

 

752,753

 

 

 

701,581

 

 

 

1,352,556

 

 

 

1,229,442

 

Less: Net income attributable to non-controlling interests

 

(11,451

)

 

 

(10,879

)

 

 

(21,238

)

 

 

(20,000

)

Net income attributable to common stockholders

$

741,302

 

 

$

690,702

 

 

$

1,331,318

 

 

$

1,209,442

 

 

 

 

 

 

 

 

 

Net income per common share

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.69

 

 

$

1.28

 

 

$

1.20

 

Diluted

$

0.71

 

 

$

0.69

 

 

$

1.28

 

 

$

1.20

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

Basic

 

1,042,650,713

 

 

 

1,006,893,810

 

 

 

1,042,530,017

 

 

 

1,004,189,744

 

Diluted

 

1,042,959,627

 

 

 

1,007,968,422

 

 

 

1,043,137,980

 

 

 

1,005,879,395

 

 

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 June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income attributable to common stockholders

$

741,302

 

 

$

690,702

 

 

$

1,331,318

 

 

$

1,209,442

 

Real estate depreciation

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Joint venture depreciation and non-controlling interest adjustments

 

—

 

 

 

—

 

 

 

—

 

 

 

1,426

 

FFO attributable to common stockholders

 

741,302

 

 

 

690,702

 

 

 

1,331,318

 

 

 

1,210,868

 

Non-cash leasing and financing adjustments

 

(131,283

)

 

 

(129,510

)

 

 

(266,949

)

 

 

(252,344

)

Non-cash change in allowance for credit losses

 

(43,000

)

 

 

(41,355

)

 

 

63,918

 

 

 

70,122

 

Non-cash stock-based compensation

 

4,579

 

 

 

4,031

 

 

 

8,372

 

 

 

7,498

 

Transaction and acquisition expenses

 

259

 

 

 

777

 

 

 

564

 

 

 

(181

)

Amortization of debt issuance costs and original issue discount

 

17,644

 

 

 

16,680

 

 

 

34,153

 

 

 

36,362

 

Other depreciation

 

835

 

 

 

826

 

 

 

1,681

 

 

 

1,609

 

Capital expenditures

 

(633

)

 

 

(330

)

 

 

(1,065

)

 

 

(1,318

)

Other gains (1)

 

(990

)

 

 

(3,454

)

 

 

(834

)

 

 

(5,417

)

Deferred income tax provision

 

1,853

 

 

 

—

 

 

 

2,288

 

 

 

—

 

Joint venture non-cash adjustments and non-controlling interest adjustments

 

1,859

 

 

 

2,040

 

 

 

2,150

 

 

 

1,813

 

AFFO attributable to common stockholders

 

592,425

 

 

 

540,407

 

 

 

1,175,596

 

 

 

1,069,012

 

Interest expense, net

 

184,207

 

 

 

181,108

 

 

 

367,287

 

 

 

362,739

 

Income tax expense

 

1,381

 

 

 

1,899

 

 

 

2,508

 

 

 

2,986

 

Joint venture adjustments and non-controlling interest adjustments

 

(2,140

)

 

 

—

 

 

 

(4,268

)

 

 

(1,021

)

Adjusted EBITDA attributable to common stockholders

$

775,873

 

 

$

723,414

 

 

$

1,541,123

 

 

$

1,433,716

 

 

 

 

 

 

 

 

 

Net income per common share

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.69

 

 

$

1.28

 

 

$

1.20

 

Diluted

$

0.71

 

 

$

0.69

 

 

$

1.28

 

 

$

1.20

 

FFO per common share

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.69

 

 

$

1.28

 

 

$

1.21

 

Diluted

$

0.71

 

 

$

0.69

 

 

$

1.28

 

 

$

1.20

 

AFFO per common share

 

 

 

 

 

 

 

Basic

$

0.57

 

 

$

0.54

 

 

$

1.13

 

 

$

1.06

 

Diluted

$

0.57

 

 

$

0.54

 

 

$

1.13

 

 

$

1.06

 

Weighted average number of shares of common stock outstanding

 

 

 

 

Basic

 

1,042,650,713

 

 

 

1,006,893,810

 

 

 

1,042,530,017

 

 

 

1,004,189,744

 

Diluted

 

1,042,959,627

 

 

 

1,007,968,422

 

 

 

1,043,137,980

 

 

 

1,005,879,395

 

_______________

(1)

 

Represents non-cash foreign currency remeasurement adjustment and gain on sale of land.

 

VICI Properties Inc.

Revenue Breakdown

(In thousands)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Contractual revenue from sales-type leases

 

 

 

 

 

 

 

Caesars Regional Master Lease (excluding Harrah's NOLA, AC, and Laughlin) & Joliet Lease

$

137,624

 

 

$

132,952

 

 

$

275,248

 

 

$

265,904

 

Caesars Las Vegas Master Lease

 

117,305

 

 

 

113,619

 

 

 

234,610

 

 

 

227,238

 

MGM Grand/Mandalay Bay Lease

 

79,018

 

 

 

77,468

 

 

 

157,002

 

 

 

147,390

 

The Venetian Resort Las Vegas Lease

 

66,306

 

 

 

64,375

 

 

 

131,325

 

 

 

127,500

 

PENN Greektown Lease

 

13,213

 

 

 

12,957

 

 

 

26,426

 

 

 

25,787

 

Hard Rock Cincinnati Lease

 

11,541

 

 

 

11,176

 

 

 

23,082

 

 

 

22,352

 

Century Master Lease (excluding Century Canadian Portfolio)

 

10,971

 

 

 

6,865

 

 

 

21,942

 

 

 

13,730

 

EBCI Southern Indiana Lease

 

8,371

 

 

 

8,247

 

 

 

16,742

 

 

 

16,494

 

PENN Margaritaville Lease

 

6,706

 

 

 

6,615

 

 

 

13,382

 

 

 

13,009

 

Income from sales-type leases non-cash adjustment (1)

 

61,234

 

 

 

61,081

 

 

 

125,302

 

 

 

114,345

 

Income from sales-type leases

 

512,289

 

 

 

495,355

 

 

 

1,025,061

 

 

 

973,749

 

 

 

 

 

 

 

 

 

Contractual income from lease financing receivables

 

 

 

 

 

 

 

MGM Master Lease

 

188,632

 

 

 

184,933

 

 

 

374,782

 

 

 

372,433

 

Harrah's NOLA, AC, and Laughlin

 

44,477

 

 

 

42,966

 

 

 

88,954

 

 

 

85,932

 

Hard Rock Mirage Lease

 

22,950

 

 

 

22,500

 

 

 

45,900

 

 

 

45,000

 

JACK Entertainment Master Lease

 

17,772

 

 

 

17,511

 

 

 

35,457

 

 

 

34,934

 

CNE Gold Strike Lease

 

10,336

 

 

 

10,000

 

 

 

21,069

 

 

 

15,000

 

Bowlero Master Lease

 

7,900

 

 

 

—

 

 

 

15,800

 

 

 

Foundation Gaming Master Lease

 

6,123

 

 

 

6,063

 

 

 

12,246

 

 

 

12,126

 

Chelsea Piers Lease

 

6,000

 

 

 

—

 

 

 

12,000

 

 

 

PURE Canadian Master Lease

 

4,024

 

 

 

4,050

 

 

 

8,091

 

 

 

7,859

 

Century Canadian Portfolio

 

3,159

 

 

 

—

 

 

 

6,365

 

 

 

—

 

Income from lease financing receivables non-cash adjustment (1)

 

70,103

 

 

 

68,462

 

 

 

141,744

 

 

 

138,039

 

Income from lease financing receivables

 

381,476

 

 

 

356,485

 

 

 

762,408

 

 

 

711,323

 

 

 

 

 

 

 

 

 

Contractual interest income

 

 

 

 

 

 

 

Senior secured notes

 

2,403

 

 

 

2,395

 

 

 

4,804

 

 

 

2,503

 

Senior secured loans

 

9,137

 

 

 

5,566

 

 

 

16,986

 

 

 

15,830

 

Mezzanine loans & preferred equity

 

20,773

 

 

 

8,719

 

 

 

38,935

 

 

 

14,585

 

Income from loans non-cash adjustment (1)

 

(54

)

 

 

(33

)

 

 

(97

)

 

 

(40

)

Income from loans

 

32,259

 

 

 

16,647

 

 

 

60,628

 

 

 

32,878

 

Income from lease financing receivables and loans

 

413,735

 

 

 

373,132

 

 

 

823,036

 

 

 

744,201

 

 

 

 

 

 

 

 

 

Other income

 

19,323

 

 

 

18,525

 

 

 

38,635

 

 

 

36,864

 

Golf revenues

 

11,656

 

 

 

11,146

 

 

 

21,752

 

 

 

20,991

 

Total revenues

$

957,003

 

 

$

898,158

 

 

$

1,908,484

 

 

$

1,775,805

 

_______________

(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/20240731469106/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

LinkedIn: www.linkedin.com/company/vici-properties-inc