VICI Properties (VICI) 28 Oct 212021 Q3 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded today, October 28, 2021. the Properties. to turn Counsel Gallagher, now VICI with will call Samantha over General I

operator, good release you, be VICI company's The Thank Properties and and found third to have release www.viciproperties.com. section quarter the in access website the XXXX of information at earnings supplemental and Investors information. morning. supplemental can Everyone the should

Some federal securities the the meaning of our of comments today will be forward-looking statements within laws.

for guidance, from will, intends, identified that conditions. relying by projects the of what believe, Forward-looking expect, I phrases which the as operating should, that refer impact could should exercise similar expect. numerous are filings discussion you to usually other future to financial on more the cause of statements, to actual caution risks outlook, a in uncertainties could results detailed words or use subject results such risks are materially differ them. Therefore, interpreting and you and SEC we company's and

discuss Officer; the over John the that, Officer; and Ed opening call and to available then measures, Accounting in isolation Hosting operating information. a most will Financial should considered performance. open Ed. and will Danny supplemental be team we company's and our Chief President call call, Valoy, not substitute certain comparable These turn will reconciliation of the the believe remarks, GAAP. the call results GAAP the Chief Finance. today, which prepared With can Payne, or Vice our A quarter Officer; to for measures I'll in questions. some to President measure Executive release in we Ed with these our Operating website, financial of and useful accordance evaluating non-GAAP on During is Kieske, measures in Wasserman, be provide third have earnings Officer; we we as Chief Gabe our Chief directly David XXXX Pitoniak,

everyone. and good Thank morning, you, Samantha,

market-leading and history of active our August X-year the The of our with our year-to-date, on was third in acquisition at Together one March our hospitality VICI. world. partnership with date leisure, long-term who're year quarter Xrd of has our assets was change transformational highlight MGM foremost Venetian the MGP's our companies the announcement of history been our to our quarter of entertainment of XXXX and our The for acquisition, a step most XXXX new X announcement in of VICI. quarter of Resorts,

years. billion activity, than our far proceeds us So in in $XX the we've fund primary more acquisition that last growth have nearly we activity over first signed And X giving of in REIT equity transaction America. years, billion common to of XXXX, $XX other raised X any over

that strong create the will, value and are key our our We do. invest factors X that term, conviction others owners. equity credit X strategy for our long energetic over and first over strategy. years Factor and before believe validate have our a X, execution-driven We significant there drive that

rather asset yield buy quality pre-institutional later, institutional at will an investing to opportunities institutionalizes, assets earlier pricing. class As than generally

built $XXX owned one fish. yet we're streets along market-leading VICI venture the stayed and initiating acquisition. already isn't ready portfolio what strategy achieve because positions the unlevered for superior the manage begun deliver, have when in our flow America, know when on XXXX yields X, had productive support understandably fearful market-leading of cash mapping free $X.X even gaming blue onto acquisition incomparable to and is real XX% by still in so ownership to billion out you uncertain. also definitely conviction over began the COVID-XX Capital. our now, to Bret when MGP to that most in best-in-class the our team, the and stormy VICI be the out by skies our were synergies, largest real Carano have into not determination energized VICI's confident can that MGM opportunities they aren't investors understandably going-in VICI XXXX while proprietary the have Hornbuckle, X, well come But and when estate. of landscape, were capital? earlier as competing quality XXXX institutionalized investment buying bigger they in discretionary flow should of and of Las highest investors are acquisition the blue others XXXX We We've their have and Vegas say one busy asked real I still of resilience with there of class close million to very that Reeg, Sanders And Can beyond well being in the activity in the regional estate billion as our the constantly MGM win others cash they rest MGP This about Caesars XXXX both put all coverage? us. and of without year, and Factor in Venetian sector. Caesars are asset when While our Eldorado's the began delivered the rent at There platforms Many their innovative and built appear pandemic, much in homework, team VICI sufficient durability late or it found VICI everyone's Well, of chance. and invest estate Bill the partners. conviction the terms Blackstone leaving our global asset Anthony $XX investors into by most assets But the are acquisition question, organization? of guys estate out We expectations. the Corey given and behind and water announced because we starting any with been they we going Can greatly in REITs. onto bid and to proven partners XXXX invest other being late ultimately in Strip. the Similarly, our that they sector's great American produce Will we the willing compelling getting have announced of intention gaming that growing water to are are an into late on have great investment are estate XXXX. Jonathan Because Tom was be when to stormy risk harbor American to has Factor than economically the doing was absolute and the unsure of blue money real became throughout note, far by can dynamic really everybody XXXX. would with was Halkyard, of risk-adjusted questioned that in will operating when we water that far portfolio, this conviction brand to work COVID to of once of our consumer gaming we Yunker, access at and still most so, real alongside classes. MGP Eldorado preempted the finally portfolio operating

of category of secular X institutionalization; and actions, years, sports stages the or factor in our Our X this. betting to years grow on across VICI's MGM that operators our Rock, to under the but partner X over activity with in the willing and have distilled enabled audience delivering can early life The almost every nearly these great us underfunded; $XX also To Eastern Band for in any Century, billion factor grow great partners, by first outlook of others with top X, one driven and them driven Penn, Venetian, right first one not down of of announced are than Great X, the fast factors with expansion these represents. our Hard Cherokee our uncertain, performance current Wolf growth partners. JACK, that because X is leisure the Piers, grow only Caesars, strategy key hospitality global operators, Chelsea with brighter, U.S., have Indians, investments Apollo our factor key other X, you're and gaming ClubCorp. find repeat in if factors And our All now. in tailwind

do doing asset be many and us Before income and investors to are of of other a similar in and years And network we've key real estate quality. so, ready to that built categories to will partner created for quality real we've for A growth replacement other relationships institutional source scale incomparable a so, institutional and significant come. and real a to estate significant discounts Class portfolio estate of discounts cost of

the turn I'll outlook, growth John our John? over about talk Payne. to Now call to

good Thanks, everyone. to morning Ed, and

from execute of our the XXXX, market-leading brings XX The of have months. the growth to of as to During many quarter $XX expect acquisition Ed investment, announcement you our $XX.X said, VICI. Properties billion MGM Growth third nearly to total billion of in continue we come

appreciate, without desire sure and hard activity come can of relentless work, many As not you I'm of degree this dedication to does succeed.

our our accomplishments call incredibly As at the many what a Team possible. exceptional of are management not hard colleagues work to would we without thankful we of team, VICI, for whom be date

announcing before, said wait ring transaction. for a the on vacation or phone not or I've after go VICI As to does closing

end, of building we and to business funding been funding as and consist be Our their primary sourcing, teams management pipeline that are how and capital operations role of owners busy as meeting day-to-day efficient play VICI can our an growth in ever To plan. source a accretive and acquisitions. with talented we've underwriting discuss

large-scale results. the a be well in which Operationally, growth will look pillars casino more and particular. fund the growth VICI have to fundamentals never pillars the our outlook gaming remains and believe partners growth impressive sticky, property tenant and stronger our Vegas leisure at properties for M&A. the accretive will embedded financial share a the for and been continues make gaming continue company and robust per Margin operators we across universe pipeline, we market a to projects in properties. existing many continued transactions open exciting expansion time include investments are AFFO across experiential Las There's internationally, shareholders. fund driving while States As United to we post growth Those through to forward, for as growth strive within will and executing our their as as very we industry investing strong, growth execute transactions high-return

week, some Las bookings have last noticed from a of For call at quarter XXXX quarter on in the group XX% million, reported in may that you with EBITDA Resort Vegas, and of example, through adjusted property just occupancy XXXX. the Las Vegas $XXX Venetian Sands hotel forward this third robust record

no almost international the All of Since these the cap rate, very Vegas had for quarter results X.XX% Estate we've rate occurred compression in convention announced travel. Real third and Venetian firsthand a that witnessed meeting the of Strip. on and have limited acquisition cap Las we business

VDARA, trading First, just a real month for XX.Xx or cap most the City rate; estate cap of real ago ARIA Cosmopolitan’s with estate and and a rent recently, the Center X.X% with just a rate multiple. a about and under X% trading

is have very investing we for believers it's which REIT real transformation the billion, a institutionalization pro and success We in of closing, David our which witness the for And we’ll believe emerge Vegas where and in with In of is approach most our been in than credit enter transactions, estate, larger VICI promising capital acquisition the believe Las vocal we very the since occur. will forma most an rating. sheet, gaming poised markets the at biggest investment-grade of touch continue approximately we us sector. to enterprise continued institutional our among on, balance gratifying VICI closing and upon be will to pending is as $XX to the direct assets that positions we forefront outlook significantly started is value competitors. growth of

David, David? Now, discuss call I'll to outside sheet gaming. balance will the investments our over of turn who additional and

strategic long-term sheet want highlight and significant with our goals. balance I John. was terms most to of in advancing our quarter financial what our Thanks, start

say, that the a tenant via acquisition level it the and leverage forma debt extremely capital VICI support below to our position with on leverage of our positive And have read capital from and we released. of and could the finances XX the great for at and that outstanding sale the outstanding will This greater year-in, costs migrate received proceeds the pro transaction term On equity a with debt X, moment. be we agencies of of rating balance $X.X news, acquisition on the a September the I regular million. the shares connection consent net growth. acquisition snippet billion participation repayment improve and breakage emergence, June rating reflected the and S&P stack loan. in cycles and focus offering proceeds offering swaps, to XX, maintained is secured provide dictated the the As The designed with our for we a settlement as capital mix ensuring raising connection leverage we to $X.X funding added scale with company the amount of below or subject our The rating a $XX.XX the billion of equity the the sheet but eliminate thrilled are of settled Xx VICI's deserve. positions income notes. $XXX.X safety in issuing repay offering off, used the at rate of solicitation about sold to a agreement $X.X if structure with also equity reducing offer all since On structure offering, the relentless MGP such from AFFO. leads to August all that issuer. partners balance and further million in we incurring the portion announcement from offering secured the in in X $XX.X an just of In term equity report on higher credit you've rating to of early one-time On forward successful shares XX only diversity could we in BBB connection raise That's initiatives forward to is interest were $X.X we shares and heard an sale XX, completed MGP pay price million leverage for common well back XXXX loan. undertook and MGP largest and me REIT the we for from a and have ratios will MGP to agencies transaction common September minus. that September the on touch a a of proceeds September year-out at we derisks to We billion. sheet investment-grade this billion This a million interest protection announced as quarter, weather continued strengthened to feedback million and were expense the aggregate equity agreements. the to XXX September current stock outstanding XX, of ever, exchange the of FFO for arrive by

covenants defaults upon a aligned the and the be will with closing existing indentures indentures. under VICI MGP As the transaction, of covenants, events the result, of under restrictions the MGP

currently debt weighted XX, And on average million as have of Our was outstanding debt credit no billion end under was weighted total comprised we $X approximately approximately until adjusted average maturing debt X.X We which at $X.X a net years, The billion X.X%. to rate hand in quarter in maturity our with debt $X.X our is X.Xx. of of have availability of and $XXX.X cash interest undrawn. facility, our and liquidity, is billion September revolving EBITDA LTM of XXXX.

agreements, units in VICI billion little billion September we approximately In billion from years we we to just been when time use access And market permanent believe the actions the quarter sale investment-grade the required to formation should able the rating, be the $X.X to addition, the forward which over since acquisition. forward a proceeds we of have approximately available the during relentless XXXX redeem the to investment-grade and closing MGP X in to net Op of the ago, the $X.X we XXXX to March of towards took agreements raise our drive the in from seek our position an debt Venetian $X.X of transaction. fund and at net MGM a portion have intend we proceeds sale

an We we U.S. million up our Shot with of of by to portfolio Big to mortgage a to Golf. turning XX, agreed On development gaming September quarter. partnerships company arrangement ClubCorp, once again, Now the expand of $XX Apollo to announcing financing facilities fund X to provide Big strategic continue Golf across outside the Shot related to the

arrangement, part a by real VICI a have with the Golf will any sale of As leaseback. acquire right call Big the assets in associated Shot financed VICI to estate facility

-- their financing, Shot have multistate future development of pipeline we debt future facilities. a Golf financing addition, Shot In Big Big of ROFO Golf on for extensive seeks and any

prospects. hospitality with mutually quarters, Blackstone enhance operators our strategic believe and Over Apollo Blackstone leading and ability with and forward our and announced that thrilled We're demonstrate partner and the at great diversification beneficial to past relationship growth forge with and leisure expand Apollo X have Great Big we to team and our our continue Shots we relationships to a partnerships to look Resorts. Wolf with with partnership the

forward was was the gain sale a QX our just In share quarter impact of of the and per share net includes the $XXX or in for year-over-year accounting the place. $XXX.X $X.XX treasury was the allowance. million per the and lease noncash And QX modification QX decrease million $XXX.X as versus million swap share quarter interest for diluted $XXX.X in loss to 'XX agreements XXXX. third terms $X.XX CECL increased of of financial Total per primarily terminations diluted for change the September share results, noncash million million rate ended to 'XX FFO or extinguishment of time current income $X.XX that 'XX, XX.X% AFFO quarter AFFO $XXX.X XXXX. or XX, the compared and count of over occurred in quarter. on one-time a related debt quarter decline the period $XX.X the a in million reminder, the during upon are in The the

was on the was During XX.X diluted where weighted impact the to of accounting release we Page average are earnings refer the have of share our tables in treasury website reconciliation of shares common you outstanding count These approximately a added We and detailing night. quarter, shares. to shares third stock common of tables on that per our X our share. X our press our used of the million last release calculation posted

we to increase declared on paid dividend. September of which dividend record a X our terms dividend X, QX per to October the updating as compared In AFFO stockholders as of X.X% year The cash as of quarterly QX guidance on for absolute dividend, the are our a regular of is share, basis. in August XXXX on dollars $X.XX And a per share XX. we well both finally, full was

As to beginning of investments XXXX, financial to the accuracy. we Accordingly, required performance evaluating productivity inherent AFFO income represents to and CECL its discussed, our and dividends. we as believe pay of we the to guidance January the unable focused in forecast leaves have of which standard, AFFO with and unpredictability are our us net due is implement our ability AFFO measuring equity best way accounting

expect increase $XX guidance the for between AFFO to prior billion $X.XX the representing ending of an year million in We billion, $X.XX midpoint. December total be XX, XXXX, AFFO and from

the the per shares timing and of of share guidance prior in June the per does million is below issued funding timing calculated reflects forward share, stock the XX million related September year treasury guidance million the guidance estimates. XXXX of September any $X.XX acquisitions pending guidance or the agreements. XXXX the effect pending the and of XXXX to questions. $X.XX a that, basis and to The the or midpoint shares of the assumptions and million shares in impact which activity XX forward of the operating future guidance XXXX on sale reflects transaction, open settlement pending dilutive transactions. nonrecurring the include the or is the With to from reduction our equity XXXX $X.XX March our the forward the dilutive on markets share per diluted agreement just analyst on share, related as not line a possible in agreements sale dispositions, certain the results included for from are reminder, AFFO current which shares not below $X.XX and which Venetian per XX.X consensus -- impact as operator, method offering other and is sale the And please XX revised Our of a under approximately addition closing capital around full

[Operator Instructions].

from question from the Wes Baird. of Your first comes line Golladay

about this until the I talk pushout you or from, what this 'XX? later year year Can closing -- XQ guess, Venetian caused later of the

Samantha, that? you want to take

Hi. Yes.

in that you required As connection for the know, are that transaction. operator with regulatory there's approvals

is So the Apollo just process. the here operator, regulatory through going

any MGP Okay. timing transaction? I there guess the is read-through to of

there's -- sorry, timing? did the ask you Did I'm We update can... you any to if

causing I well? read-through to there is apply things would there be Venetian pushed the guess, any MGP any issues be Well, to -- those are with that as out

No. not for we unrelated transaction. and MGP impact the do are expect They disclosed our previously to that timing

last one Las Vegas us is then guess, the be few I I update can think, to lease, set going master days? a in And on Okay. you one.

or Danny? David

go ahead. Danny,

that's terms was escalate Yes, Wes, to lease. the that in CPI, X% which floor with of so in about X%, we embedded in expect that of escalations,

the for X Vegas the will lease lease year, master Las November starting about So next X%. escalate

the question Your James. from from of Raymond Milligan comes line next RJ

for about JACK other Can of do component the just dropping lease opportunities the other you the amendments see you some amendment announced? leases? variable And rent that any talk additional was for

David, or to want you Samantha, that? take

confirmation and XXXX. GLPI I to chime way we're and of anything. a the RJ, operators document smarter understand a can continued of structure X of and deal, somewhat what continue conforming only each right? But aspect with we in years the formation I is -- the get experiencing Yes, just old Samantha leases, This witnessing and mean or to start lease. sector in and as is the best on

streamline don't to as the or that arise a landlord, of you really as some together we us opportunities to forward speak, sense some to the legacy of when somewhat remove make work so component, operator and these so collaboratively to standard". of the for And to leases continue move leases of "industry

sides net-net between here it's VICI with for both So JACK. and a win

Okay. call 'XX, ROFRs your of you options the some you us looking on that update And then the or guys thoughts give an into can on executing put have?

John?

So we monitor. to continue

monitor involved to have first, in do. think be Tom looking we potentially in and we and with created Reeg, this in lead we'll have in -- Las CEO 'XX they're put table on referring Indianapolis, one assets grow, RJ, would Caesars have Vegas. continue sell those we and be then that to this as X to -- did assets the add live some referring of to you're add racinos that in you're we'll amenities, ROFRs assets has some the has what January call continue of to And his indicated the continuing follow think expanding -- I since the Those well. deciding and add process games that to games. facilities that State to those we'll at put are space, the And those I call of second one, legalized the our so those becomes been Caesars table Indiana, been on large is facilities. they working

And for watch X continue they good to how that, we in know starting call put January. that we'll so grow. is And years

what we to started But a there's regional picture for in Ed, rate pricing the start needs expect last my to compression question the compression and you bigger question. it disconnect still seeing When for terms in Vegas then happen to like Las or do a think cap in is And gaming do of seems Okay. you markets? assets cap see regional sure. rate

that to that the was RJ. is, When as that through a think greatest other spent the we've Jersey. markets an time like prove focused began in see be began activity as out I continue mile a epicenters. to Inland category and a that an example, that to Yes, institutionalization institutionalization classes Northern L.A. there industrial what as have -- the to of began final those It category secular seen class, sub-asset really it I of amount prove I trends initially itself gone the behind of will And dynamic category or Empire believe asset to in investment was be outside in of from grow, investment you New radiating the logistics.

from guess, As our an Thistledown scale. the a that site an of a amazing example, distribution Cleveland, street Cleveland. now across And is center on Class again, Amazon JACK once B outside I asset that's of how, mall

Bellagio, such kind of radiating estate argue that they just can the that in tight belabor to in National licensing. it's XX-hour place magnitude believe Harbor, point are these city given call, as the after jurisdictions. at people rather which a and of MGM points see the at when XXXX, There that less to trade their Washington, time that Bellagio I at that in as point, in asset deserve very and a to that you scarcity D.C. and would outlandish day, at on occupies rate made under quality. make certain in friction realize of are, ago in does in So real like that see gaming And MGP will becomes well scale this outlandish years we be asset was -- this X some point of a quality it it The I the some factor have claim taking as believe decisions gaming. you're friction a other the an classes. course, I I end going comparable of regional a how as right was require of earnings regional But owner assets RJ, call, think cap it at so moment, was of a claim that obviously least made that the rather that I announcement, strong owned QX the

other come, class every do will but it will, it asset it I time, It will in take is happen. So required will think RJ. as

of Your Truist Securities. next comes line from Barry the question Jonas from

maybe I whether would but -- geography I'm mix success diversifying gaming any versus wondering over look, you've had or longer-term the there's the a lot that's target, optimal if you non-gaming? company of years, tenant,

want John, start? do you to

morning, Barry. good Well,

the our X it X to As all like we’ve tenant tenants gaming. years, we've continuing you is to past talking X in tenant been to key base. diversify from gone And the in said,

in we're to and our in non-gaming. to obviously how many his Ed I we said an tenants in of continue own mentioned have exact to us how have. into portfolio, his you've don't non-gaming, as seen well David add As think we high think in how much to we're going ultimately own in as remarks, going gaming have going nongaming. in started much quality as diversifying percentage tenants we're to But of, well remarks, gaming I

I percentage so a And today. have don't

said I our regional XX% of will the XX% clearly think MGP of come after assets. rent Las from deal come from Vegas will and our rent we've

still high-quality to years, we'll have to for opportunities wide continue and opportunity the with look a estate. most unique tenants great we importantly, diversify over So with real

today, specific numbers no So Barry.

out then I'm think And gaming longer a strategy it. any curious this think will lot if longer-term there you just to as land-based influences follow-up, there's term, and how degree. cannibalize your I will debate all? Got of if a about it iGaming it how -- at

brick-and-mortar iGaming through it does sports as desire between we start, betting. degree customer know I to a Barry. new who its acquires visit a the I'll to And are you then casino. think take remains which iGaming be obviously, that own distinguish the iGaming, need to also I seen to And care and create to Yes, ecosystem not becomes

manifest wrote believe You've talk wrote gaming. you think implications for of panel be about some about I was interesting oh, being very you iGaming we it. very some made a gaming. that heard economic bullish iGaming Barry jurisdictions to there -- I there people The very a sacrificing a tailwind iGaming And that the the taking think, in expansion some more no, David as number audience about jobs panel a secular of care different not to powerful go I about remains do before question. brick-and-mortar the like vitality about and the were perspectives. of And points up end yesterday, us Cordish interesting making with are as betting sports are points how

say, sports would such conversation. I sports I had American in Samantha join to VICI I X like first which way excited Kenny am Great business of years And folks have in Gaming if with paradigm was David is can I of American way introduction in and American again, So and Gaming, sports and betting Trey a that. betting would the much ago, changing getting I the about less participate am involved American would and Payne and not though, with of about me over time. told ESPN that worried we'll that marketing the iGaming the my foreseen Wingo see than me when you started Gaming, John American Mayne Gaming

next One. question of the Your Capital Neil comes line Malkin from from

logistics that best the meant you United the Ed, off, sure probably the Cleveland. in not city about I'm comment States. is by first Cleveland in facility

about... So we're talking

is. It

Okay.

So first one from me.

you ROFRs You you have alongside talked higher? see comfortable a just gangbusters. given and lot your about potential are -- of pending parcels, of we there rent sale Venetian a exposure move and with Vegas. the property to X of land MGP, kind But comes Might your fantastic. obviously, It's the a from XX% And mitigate the exposure going going your it's your merger there?

can are unrivaled. I'll Las along right? of as Samantha, I to And then think Las convention, it like And unlike it world in But to the is VICI exposure certainly tourism ecosystem that it's is those us is is about right infrastructure other to tradeshow Orlando. is Las David gaming, much you Neil, Yes. that infrastructure infrastructure, it's John. have the Well, turn I'll what's Disney is the is exposure the what so in over a Orlando, Vegas, geez, like exposure new Orlando come in -- almost of Vegas who learn, I -- to sorry, earth, I think has and an Neil, with right and build on nearest in decades Las has point, and how starting place an the place tourism, start, it Vegas unto about any and Vegas thing I think, it's the thinks in as itself. way It's is unrivaled conference, taken it's is infrastructure.

XX-hour a think different as as Vegas. very utterly you I you when a do of concentration asset to ecosystem distinct one about way it, sort you in in many but to XX-hour be about one in to an would or so concentration another So not think to you have that? if portfolio other add John, is which like asset city flip city. of Las have than and classes kind wanted

There in we excited taking that we but what's No, They're the weren't that's substitute the a after the other even the Vegas, when also the operators. there due here returning amount as about perfectly Vegas. Vegas. been without for the from -- the excited Las Neil, something company, are it. clear business pandemic come operators closing you've clearly company. as well. consumer And creative very The We're we of to bullish continue and the of today they'll are without has to if going they Vegas in travel, we us Las facilities back day that's doesn't that's are most are found to necessarily mean international started as started in more Ed, place business reopen, airlift, on are not we and the the on -- are touched what's reinvent I dynamic work. Las Las record as REITs been MICE you think that's since I without numbers, following made

those tenants. excited return about our segments So be going Vegas, more coming to our to it, of years and as excited Las customers we're to we're today over even

And we even X], Neil. [love

Yes. I appreciate that.

needed look or regionally or raise just a dollars potential and to you maybe on I'm how that, be by investments ecosystem is me, wholesome coming and picture, of the Strip money to as new on you to one a and wondering will the market to the fulsome the potential impacts how want -- raise for obviously, that big an endeavor coming to make to or to platform, have The going impact assets iGaming operators those you call digitization, if gaming to part how on comment lot either they can and guys add moves think that bigger guys, other about in? their move or operators. for of you whatever

John?

just Yes, think mean, what's question, I space. tenant taking I'll top Exciting either/or. it's talk And a don't about our the place today Neil. time good it's I with in Caesars.

Palace, of the investment around are bricks-and-mortar that's their City, facilities If there's going that million I can Caesars bricks now, the into just obviously I that hotel, right sports go making Nobu into the than on on to is about million your see turn Hotels and book. and the you facilities, and Atlantic New XX their know. large the time, our look going I putting being At the at $XXX and that entrance on could investments your more massive investment their top they're built in numerous TV or radio Orleans, into mortar. know in the reformation Caesars about the $XXX the same you

days if been exciting And a to only So the facilities in old for platform. world-class And to space. is beauty is again, talk who's or building and well they their been can and years, exciting space. consumers their dynamic where can capabilities digitally, other so they has that's as omni-channel gambling but talk this not our connecting of strategy attract continue consumers, what's people marketing casino about strategy of not dots tenant over has these XX across and time there the as bricks-and-mortar someone around the a their the more to at gaming

Your line Stephen of from Goldman next Grambling comes from the Sachs. question

opportunity... mentioned all You

cut out. you Stephen,

[Operator Instructions].

the comes Scotiabank. of next McGinniss line from Greg from Your question

investors you highlighting provide of to John, pillars able think how on of about from how you you one to potential I guys of opening think questions is context from sizable size to the that deep deal benefit appreciate the pools each those comments. diminishing Would in your some those growth So But the given VICI's I buckets? key earnings of each growth be are doing. are

I it Danny do as well. can do it, can of sub and some of

laid through I Canada don't the want -- one opportunities take Australia, is touch the all So X And the Danny the in potentially answer still domestically, pillars But rest that we on X potentially we've David -- of just gaming in Greg, But in of ways. out of and out And lot because you which there to a just take X the pillars. call of even opportunities different can I'll gaming. want up or and we on in of Singapore, think I'll short the expansion take this to take international a nongame. are there. of them, is I'll then When of couple jump I going see Japan.

So just domestic gaming.

Pittsburgh, We of any in still have which of do we downtown markets, own Colorado, Vegas. in If have opportunities, real own you regional Las and markets. healthy Las both in estate very estate the Vegas think don't not Rhode our in parts Greg, Massachusetts. growing Reno, still are facility real Island, -- Charles, [like] don't We

have we not the available the that right and that now. EBITDA amount of still necessarily with So rent an is assets pool depth the amount analysis and shows REIT that of are the in

pillars. or quickly if touch X other that don't We well. the see David of as as X that's domestically So on know Danny well pillars tremendous as want in X to opportunity to grow gaming I

Yes. add. I'll just This is Danny.

given side, Greg, or gaming any value where we in continue billion. exceeds the total week transactions still on the over to well $XX On work month

and necessarily a evaluate that gives that's that just TAM, of So but some discuss, insight not target. continue hopefully, on, into to opportunities sizes different and number you we the work

VICI to going piece be Another is Fund. going Property Growth forward the Partner

Hard exchange you incremental ultimately about ROI tenants partnering existing There -- our our with funding because we're that If each projects, those rent. hard on for say to X little really millions lot that total where within quantify assets, on But to efficiently hundreds investments. talked hard it's size high at the operator time depends think we've hurdles. property. a of the spent individual currency exactly and jurisdictions. reach as of the that's it's dependent quantify, feet strategies, assets average or individual those to pretty of the million size over regulatory of risk, about, could into jurisdiction, but it then tax international, a implications, And understanding the we something in square the are on

time. expand that see is where you'll area an So us over

once figure I others add, amount before have how When Greg, this the very time, that what But which Ed, is math do certain out successfully at did you as would we a same confidence strategic ample. is a have more the can issue of well, just can challenging. does become the get become you to more just you that certain resources to us. crystallize we size, done obviously

Income to in comes we'd really they is as interested Prologis we'd an the to increasing their an it have So fact, grocery of not parks, for marks facing exist categories we and have the in very in. now challenge you Spain And really center team they done experiential European be grocery. a be interested in Realty growing, and companies big. get at the Realty Europe, European when is look the exposure that And don't But and European U.K. we in example, as U.S., meet example. done like when Income what full mathematical in what get to in. category even there experiences in like

especially look their look done So We at and has what what domestically at activities. Prologis capital through would strategic internationally we Realty and Income done. has would

the if So of that opportunity the stand achieving good in least chance they we confident of we're at best, have done, years what to excited a that very and learn some from come. we we're about

the gears potential All the permanent be that entertainment space the range what how shots you and regarding growth appreciated. big any in shot kind you base Shifting property this opportunity you provide on able also, real facilities. driving if slightly the to valuing maybe out here, that'd event big you'll view on as or And specifically, the the of context ownership? could within you're be in call financing worked turn Have estate right arrangement just right. that

David?

the financing not sale markets them. they're we a to Greg, gaming cap to elect that rate we're jurisdictions the at pipeline. because call got -- partner secondary good own thrilled those excited very Big legal will will to competitive going estate with be can't facilities. David. pipeline interest team. talk Yes, The invigorated is X real team, in the some platform, They're Good then to -- it's and enter partner with that on to markets, Shot's if to or a at XX% can't rate. grow you. mimic a leaseback to development And of into done We're ClubCorp we any where They've those going grow and currently don't just it's to -- be

that what opportunity holds So Shots. VICI between and with the we'll future Big see

have do Stephen Operator, we available again?

Yes, Grambling we have Stephen Sachs. from Goldman

Great. me? hear Can you

Yes.

much How fund So traditional opportunities leasebacks? sale partners. the versus projects for economics contrast to the growth high-return existing investments you mentioned of types compare tenant these of and

through the them in investment, the they sufficient half we closely, would and they In our such on return a and sufficient capital the incremental very could and They that you what operating getting deserve. take incremental on capital is at incremental on a that to Stephen. would should get mirror and other rent Obviously, have get return return need operator the brand sufficient made. investments need be least, words, each return divide it and a and intellectual they party

that It going reiterate quality you and the we're again, out economics. framework, of fit mirror I door So it level if can risk get the And very happy we it's to in should And we said, are it long a be will our a just as so. proper form very scale out assets what to whatever door Danny conventional do as finish and of get really much the capital growth box, Our in an our investment present feet on which incremental other square hard and acre that is assets sits almost [X], asset XX,XXX to find in And triple a an is office of sits That's square over X your feet. only mall. find acres. in to dozens on example of conventional as our net contrast really commodity opportunities right? class. or any average that, and million are asset an

sense. for X makes And maybe you. That more

consolidation potential made you a about perhaps beyond influence REIT just How do as you and advantage well. like Just there MGP, on the think scale future reconsolidation, inclusion obviously, index gaming. first-mover for with

Yes.

it. platform would us the might the the getting and reach grow not triple-net that only experience to that of immediate way would come an beyond obviously, existing adjacent to We qualified management properties M&A, of to helping to property not but would white our of way think in we a be come represent think, could in the with talent frankly we're categories to value. uniquely certainly continue priority. with be mindful value grow to that of we terms us determinant of that as believe great see we and with don't which that effective be the to X us I We degree in. space the acquisition access with access only pioneer enough operating an in of which talent key be getting are can to have front But portfolio we M&A that in the

question comes from from next of line Todd Thomas Your KeyBanc Capital the Markets.

of meaningful in nongaming you without more is establishing an and assets? of an other way then program? it path more loan adding how on Just as toward to exposure established to of expand continue non-gaming non-gaming? that Great see in important in you expanding or also, And terms investment-grade rating to meaningfully we should now. the Or the first into question, look invest loan some non-gaming completed portfolio programs toward side, move ClubCorp loan have expect sort Wolf, initial ownership types programs with could Is to Chelsea that you Piers, towards a those of the we

David?

be with table lead -- do right call to into will. opportunity we Piers, nail of not we a leaseback, buy have specific if sale Ideally, that a Chelsea compete there and as the Shots, Great estate. to niceness mortgages why and But a financing, you able for the Wolf to a have But path But why Look, path if all we'd And of of good path a not -- a wouldn't opportunity. is us into to sale day we terms and called is entered were seat the Todd, the unique at real lead Wolf Piers in for saw and somewhat sale you they or should Chelsea could on to had dial it that transaction, for Shots, Big capital at be matters a and of they financing. we that end the we I each There have head. of a investment or the you have on may of expect. the These Great where just the up our a The say if to of there's we'd -- hope you them whiteboard, what I we'll so talk. may hit the ownership. grade, path ownership, leaseback do call today. Big with a is be sale and to the ultimately these situations to ideally -- compete. may enter may again, cost circumstances are X. have our day, then allows to that

things, and both within for of feel and And gaming. gaming we funnel lower, so able as will that more cost goes widens our be of capital the outside to compete we

So the we're achieving be thrilled of near to an doorstep on here in investment-grade term. the rating

you have But at the gaming circling might basis then the back Cosmopolitan do pricing. environment, guess, Center pre-institutional valued for cap around regional John, one on investing asset are recent have sort compression Strip rate well? and Or discussion which importance just you a on valuation there asset is improve touched on was implications you think City and broadly? seen I Ed, And assets pricing. risk-adjusted more Vegas bit. How in quite rates on pricing we've early pricing in of the the Okay. a you And and particular think in room discussed fairly that just to Las as the in still current pillars being of of and on about cap do in pricing. deals more today? the come

Yes, Todd.

answer So the I quick think is yes.

to run. more there's room think I

which a unlevered one having it because to I keep we're key and about at comes conversation what should If going estate. weeks gaming Blackstone, unlevered I we this our he Henritze stop cap flow to -- mind think think at could in getting, was came flow buy with we in partner just When that a Tyler ago, real a about we have talk free in that's getting a the of net predictability, X.XX% number said, the out cash we're cap written yield cash few things up of VICI talking I -- about transparency when right? triple And integrity rates, rate cash unlevered yield of the on gate, flows flow a X.XX% the the right? you reality other categories Venetian, of the many once and cash rate hardly free resembles so supposed really leakage net account REIT forms all flow. ever and number only cash versus the you notional from actual is of cap other that CapEx for where

velocity effect. cap So balance keep I Class we look the free their a are you the very capital And cash disguise actually now, so David flow. you're have think a could of is in long true categories, you look at and looking and like free what cost don't cap improve equal sure And I gaming, and life cap the you office to on category big and rates as look A at cash In flow with the will can as what our buy. investors of you're true in at think every will and often we effect and that's I that getting think at doing sheet compressive reflect game right fact compressing they that industrial other to recompression, rates. get our other have it others, that much When continuing pace. what that making a stay continues gaming, velocity team do what they're his as of

comes line Kornreich of Jay SMBC. the Your from next from question

on your those opportunities casino of feel curious been funds you just pending with that side nongaming for X and you also with relationships relationships As nongaming important provide? they PE the companies are of investments those how portfolio have upon PE the that investments closing have

David?

of role The are to mean And the capital investing it estate companies from these I real good we have, world, can thrilled of a alongside Jay, in. leisure amount Yes, just hospitality part investors private in that of to stems magnitude if you. of to right? best do the that. is we institutions talk the equity some play

look So a opportunities. at we lot of

and find we there, with just with continue invested that folks opportunities, lot also work be a in other understand and have of are but sectors future estate happen We they partners our are to out because in these to X do we will we real and have again, institutions classes. absolutely partner that so. partners with existing to And private all equity, if ways asset across invested can

of in Sure. we any And and lot sort if there's there's you have Is credit provide then a expect opportunities time rating those them that credit any such potentially you're from things when like enhancing of kind as of S&P line -- XXX, of time the debt, all incurring front refinancing you, on such liquidity sort several can you MGP, to occur, getting discussed. of improvement the line listed fall? when

market. MGM transactions, Op the with redemption the to the team $X.X track billion fund, led the the very highlight alluded on of as need they half We've highlight year. we closing, the it to timing on make Erin our still highlight first Ferreri expect by And Well, of we the the are a agencies sure the funding lockstep that that's into debt unit timing, our investment-grade with all would rating issue and next stems worked to us. MGP closely, again, to, around for that of Samantha

and if to, sheet get rating. number. balance equity BBB September, below did Xx, And we're raise Well, that that below are a S&P we'll keep target, a in pro with we so to forma being minus we alluded projected the we as leverage

connection debt, your MGP the again, half the we'll XXXX. refinancing bonds, good refinance that the accretion which MGP interest feel feel So XXXX, of very not XXXX, mistaken, start achieve The one as but the first we we the that think occur then near MGP the comes other all in investment-grade of part in the about at sometime maturities. was due debt. I'm expense pick those we'll are that to question time transaction. confident And bonds bullet will of That first I rating the of that very up we from or incremental the if savings in with

well the So place over the refinancing MGP -- of those opportunities the from are pickup that bonds years, we'll in have incremental that today. as AFFO as from VICI bonds

And I in. sneak if more one could just

you potential relationship think with internationally, or Just growth opportunity the your we potential external to Japan when an do Casino MGM about Macau to partner see new development? in consider opportunities MGM

intriguing. Yes, Jay, likely, that Japan Macau would say not very be would but I

line Your comes from the from next Allen Morgan question Thomas Stanley. of

long-term putting did how $XXX for operator your performance Question of hat updated tenant? the third the of Venetian about EBITDA. Any mentioned on, thinking quarter, you John, John, earlier that in well million

Yes.

to Cincinnati Thomas, Hard of Cincinnati Hard So get the had grand with asset to airport partnership apologize. Rock race our Rock. John to I for to opening in the

we'll upon. to Danny, very our and fully conference convention those travel, me to think performance the And that is excited of without obviously kind between who to and But I can of our see a quarter Danny? I'll Danny, X without best. turn quick that we're and So inherit this can back. confidence international now you give over come the grow results having summary do trade Apollo show continue it

opportunity asset. of lot a there's in the there existing about, talked we've as Tom, Yes.

found on Vegas and then other and for assets Apollo One the speak margin between we just but was Las of differential strategy, can't their the things Venetian Strip. the the interesting We and lot forward a projects the long and expect of have evaluating that execute team a for existing initiatives been created would the period we time. run of to and on they've

in look, still So the in trajectory. Venetian early I it's think really their

I a lot of opportunity there is there. think

fruit, take bit to it's asset. really little a of forward excited, we're but looking on execute closing Some some and we're will low-hanging that to on, longer

to been the side, space? to it's given do a to is ton to -- all, kind ask a I'm But most done. a on going about that a first of still larger deals prepared deals, that on just interest into then how smaller kind like future more Or And question little of you've well, Perfect. deals, experiential deal? though have done much of of your continue the respecting focused you've unfair even much sub of eat are you

would from doing or would prevent deals strategically that financially bigger I gaming. say, nothing of Thomas, there's Yes. outside us

right, so has a far generally on we've what are done been You scale. smaller

Although I gaming. we qualify The is at Chelsea say, like Piers without as Piers like assets actually casinos very do significant. will say as Chelsea that to P&L

borne have only not that's to So them. have do mortgage some do we these But assets Obviously, Resorts, also out. a heft when them. Great to entirely Wolf heft loan.

so So economic assets as only owners a far day that becoming have we're assets comes we lot the be, this, of is buying we financing when side, will real while in like be our will participation we successful the of throwaway. on when estate believe

Markets. of question last comes the line from from Daniel Your Adam Capital Loop

announced? transaction me accretion one if to am long-term the expect correct your intended equity, night, cash with for filed not debt, funding MGM. fund thinking I I the of in deal expectations debt And was requirements you that In equity noticed change portion does initially that combination the Just so, consideration for to a XX-Q of the $X.X on that anticipated billion you that was MGP? the for first use and to all when that at last

Dan, here. Good talk to it's David.

billion to being at requirement, Our and the frankly, to really -- funded has why $X.X reasons always to why that intention funded debt. attention debt to in time that day that fund has our all be in merger There's was of to conditions tax be our and satisfied. from X was the fund

So anticipated debt. future the and punchline point then term we is to once a down that the billion of always issuing market accretion go to We'd doesn't change. paying relevering no. $X.X The equity, the essentially raise at the in loan

to Great. around I the that And the be timing close will of the you to close? funding expect that? when imagine deal Okay.

advantage have the satisfied, in merger to until Again, often the under that next agreements requirements, debt we need laid conditions we we are we put issue debt of a the window the again, the markets all We're if agreement tax first not that ahead we half to reasons. sometime tax that of the that out, are the escrow, we'd way the asked to XX-day issue that would take will expect. year, Yes. for what into closing. of And satisfy way and

to further time. no this the I'll now turn at questions conference Ed Pitoniak. are There back

Thank Yes. operator. you,

on So been we of what well shareholders portfolio believe continue as served all to by to great value. during energetically growing be believe accretively We are reiterate you are period. asset you, shareholder superior today's We to well newly quickly in institutionalizing for going thanks with me all. partners our call. good class an thank and our a to and driving being well let positioned our very uncertain VICI health while has growing Again, that

Ladies and gentlemen, participating. Thank for call. this concludes conference you today's

now may You disconnect.