VICI Properties (VICI) 24 Feb 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Fourth 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, February 24, 2022. the Properties. to hand Counsel Gallagher, now VICI with would conference Samantha over General I

operator, good release you, be VICI company's The Thank Properties' and and found fourth 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, intend, identified that condition. 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

available discuss measures, in isolation operating our most and A financial a measures will should our considered performance. the be we company's these call, for our with not substitute certain These the believe the measure which can or useful information. evaluating directly supplemental non-GAAP on During our fourth in measures in is be we results comparable GAAP. reconciliation website, quarter to XXXX GAAP release prepared accordance in of as earnings

certain counterparties will Pitoniak, Ed Valoy, of call Financial John Accounting open with Wasserman, tenants turn the Chief with the Chief questions. provide For during that, we over to remarks, Officer; Executive I'll our Gabe Ed. have SEC. filings the Finance. and will Vice non-GAAP respective Danny With to Operating team opening then call some call, Officer; call of Chief and President we and Ed and David Kieske, to President and the Officer; additional information today, the please public Payne, Officer; company's respect measures to the described Chief refer Hosting

Thank and morning, good everyone. Samantha, you,

then very I call out Today, Before morning VICI behalf I'll and years, the on first hearts who John, fourth will topics: of to XXXX included turn by constituted will financing much go who about just measured our just accomplished our operations in the that of our year over to over and our initiatives; Ukraine. bit a from closing we the two return ago, growth. to XXXX and Venetian class. acquisition about addressing me emergence let and growth this VICI's four ongoing begin of start, total activities. what our more say our asset full XXXX, four and VICI's I October want it following. of to about years and our VICI people signifies and talk year growth results our than David, we've call talk date The our If

We acquisitions, of have in growth announced the establishing VICI as one American REIT $XX billion of dynamic management. platforms most

grown in our billion period. We of for our equity, by have we Xx. acquisitions, Pro than have than REIT announced forma over portfolio more than other any that $XX raised more will America NOI more common

the compares return And of XX.X the put XX, outperformed cusp have XXX.X%. the X.Xx XXXX, and percentage side right on to a adjusted of transformed moreover, from return entirely of assets debt. to XXX% to demonstrated our and our total points. time sheet date. through for we XXXX, of This XX.X%, lowered secured period tenants to by resilience stockholders, VICI's investment-grade return debt, for a Most our October [Audio over XX, the magnitude EBITDA XXXX, Dip] meaning and ourselves, importantly, over from unsecured transforming we end we from the RMZ have of total and We've by emergence We of XXX.X% S&P the our of at through our ratings. composition period the VICI the leverage generated balance X.Xx XXX of of at that total substantially that on RMZ believe, December

full simpler invested has into looking $X of of superior with over VICI period aggregate of RMZ at share integral the just The quarter into dividend the most We the An created our period American commercial proud Venetian. of $X per We're first beginning the estate, is VICI's growth XX.X% excited A on total Class a invested XXXX. since real at acquisition magnificent period, about growth dividend we're $X, QX Here first one really of $X.XX. over value of same in here's it: closed became the years, what dividend way that the yesterday over we've VICI's became the return assets part been our four today. payment but of in

that. estimated The complex have square announced Let resort private COVID-XX we Venetian ago. early single announced hotel is impacting building when XX reiterate Las and was Venetian price me features XX% approximately period into the at cited the a transaction we willing Venetian not And of more performance. Apollo, million were potential Apollo able square were to XXXX most The meeting in per in craft in mindful feet stage over visitation a transaction that heavily with comeback, ensuing against Venetian Vegas Las the return brought trade VICI discount would The pandemic announced that to When partner, would of The rooms. is was rate nearly fundamentally protected negatively March uncertainty, in XX not The with profitability At XXXX. our Vegas buyers Venetian able the we that come a levels and March continuing the XXXX show Venetian out a Venetian achieving replacement quality, in $XXX, performance. months or land in a acquisition of What Class new the we A did America heavy operating America. The still and and included weather, The we VICI roaring acres both that based and Vegas belief another that to but foot eventually X,XXX the largest cost. when when America VICI convention marble, of were XXXX, transaction in Venetian is beyond an moreover largest and XX run and sector nearly Las levels Apollo assume year this are of facility finding Venetian

Vegas Rob XX Sands, of last Goldstein Dumont's managing at have Over by The the a led team magnificent Las done Patrick Markantonis, George Venetian. and months, job

Venetian's without of the Venetian and rooms XXXX, trade meeting X,XXX show so full QX figures As performance business. produced eye-popping LVS XXX% doing convention XX, on return reported in these The of January The occupancy nearly

This of For our Venetian a mean Venetian EBITDA generated $XXX annual would the million coverage million million. adjusted nearly annualized rent initial amount fourth $XXX over X.Xx quarter, of of and or rate of of of The $XXX XX.X%. EBITDA run rent margin EBITDA before property

it. a able here, someone in value, asset By quote you got couldn't I have compelling simply you and think most one remind And get transactions it Las again, I've comped American to General. a quote most And Class of looking As I night says put well-located much short-term what Real buy America years. actually isn't, a into in was of pretty just as makes you believe as to me single assets deal. what A iconic recent work one who Venetian, one need date, management a REIT most majestic – everyone these better Venetian, rate this in A this the Vegas one cap today anything to remarks, I of VICI acquired that the put rate in we we Dollar tell if which last VICI Class did The in the preparing assets to at posted cap the of to for past than I I the X.XX%, said, have in magnificent by want buying COVID, real of that which we country estate even for The Commercial disruption sweet created Estate

leased we is real generally Triple the cost. years locations final Finally, that estate estate. VICI. make premium say lease Class lease what's at the real more of can real estate superiority into estate net lease we did and transparency triple criticized brought commodity at on we model not net of integrity low we the barrier-to-entry Venetian Apollo Venetian real one A Class estate gaming The the have triple the the for the highlights a I But net to replacement model with basis net that in a cap bought being sometimes have that have a at And brought economic period, to A I X.XX% our real buy to important about think four to this sector. is triple only superior first that want Over provides. point triple rate, net

Here first A real is years estate substantial and replacement non-commodity may discounts of in in differentiated estate the investment attribute terms. Class what And of all. portfolio to biggest portfolio most cost. we've We've high-barrier-to-entry built here four in best be America's bought experiential at our in done locations VICI real important

the who the what turn COVID-XX And we've the over market-leading unprecedented we Our evidenced best while we're days of me VICI. by real resilience excitement to John with Payne, John? world excitement to levels for of bearing by, estate call I'll market-leading VICI. will experiential share as to grow Thanks operators pandemic profitability. our my for continue to I their occupied what the believe, their in over doing is share during done now the darkest recovery and at

increasing year another transactions, as Thanks, $XX REIT credibility we one announced significantly transformative of as solidifying scale of was successful America's volume, terms REITs. Ed. our blue-chip for morning and number everyone. position Good our sure one in experiential acquisition XXXX our VICI billion the and of furthering over as

track Venetian this close we we very City Las MGP that announced of our Center X.XX% trading cap. yesterday. at Cosmopolitan said, closed in the Las Ed a acquisition acquisition announce to the we and acquisition first remains year. Venetian, of Vegas X.X% of Since with half seemingly on of cap time, witnessed As compression are in in rate to at The rate the real And cap a Vegas The happy

Encore regional at to high-quality compress, Additionally, urban since Xs. Boston Harbor, our rates announced the large-scale, in a recently acquisition have of high rate MGP, cap with a cap assets continued trading

the the recent our believe superior estate about We its value rates gaming the are real the assets most to – that classes quality characteristics have portfolio. our pounding table real asset We in applicable of ways, in investment many classics cap a the have and many to mainstream a estate relative MGP real trading of real to becomes formation. been since of there come estate with more come by to we other And estate class. believe real we see transaction, gratifying fruition. will closing any estate gaming is much leisure to our asset we portfolio. portfolio our is believe thesis It Upon assets unmatched quality as directly

through flow Our rental cash been proven pandemic. underlying the and through durability streams the proven has – asset has

We industry-leading combined capabilities, And with have tenants' who tenant relationships profitability extensive you record of across led and be with capabilities CRM engaged these to has in the as with to Vegas expertise, many region. the know consumers. our operational utilize Las operators

a with Now see runway continue operators study we dialogue capital and as their can understand how think have we Many to operators gaming. stack growth in continue estate. and regular about that utilized to real number and public VICI's be own their for within private capital of growth VICI's prospects, future a we long

which allocating we out started verticals, will capital leisure investments we've our towards Additionally, believe time. other over round

of We prudent by allocating and in manner diligence analysis investments market detail studying capital perform shareholders. in prior the opportunities dynamics approach risk-reward our additional to and appropriate behalf an will a on leisure and

to investment our VICI pillars well for shareholders or other do goals shareholders repeat just our with To will accretive order shareholders. for value as behalf future. accretively of fundamental grow not end, in and investments arbitrary our that per drive our the interest We a believe aligns we is earnings the our blindly approach into of that satisfy create the One growth of volumes share we I this company to measurements. on will success believe and

compelling to our pipeline. execute in the opportunities growth will strive We embedded

We will the in and study and open-market internationally. United States evaluate transactions gaming

through resources will and fund investments large-scale studying growth We seek as will M&A property fund to existing allocate well experiential at we our high-return partner existing with properties will opportunities. growth tenants under leisure towards we our and as projects which

balance our Now David, David? I'll financial to sheet call discuss the turn our results. will over who and

from weather have Great. with all protection designed credit have cycles XXXX capital to to billion finally acquisitions; depth a Thanks, one This on balance markets since sheet. first, equity the during our our sheet our the from partners John. structure is objectives focus safety to to plus capital the unsecured disciplined support focus years equity rewarded that into the deserve. by: start derisk of culmination we $XX for of of the I was most the maintained continued ensuring second, and announced want we and of transform important XXXX over the emergence, balance existence that our borrower. four and our our relentless of an funding equity and provide and

As opportunities agreement. forward September, equity Ed XX regular forward appreciate able funding by we through the million agreement. on offering we that Review, XXXX, secondary of To $X.X International of equity presented a we equity we granted, share billion million year. rating. we the unique Financing raised North be sale of themselves not was to achieving sale September $X believe and share $XX equity The mentioned, two we $X.X a IFR, share In of something way our as the greatly of cusp advantage million in equity is raised a of during we to Raising billion issue offering, derisk as of investment-grade XX and and March, the America or recognized equity the are at in take for support billion holders year. the fact, take look through recap, back an

largest the our follow-on We to our common by our full exchange of banks, notes. participation offer $X.X term early as Morgan ever the loan. REIT. billion underwriters for be syndicate we step on support equity MGP consent billion was a September, of the September, repaid to by able well the in are outstanding Also and critical grade. investment fully thankful secured This in a led $X.X execute path In solicitation successful a to for Stanley towards the announced we as

be debt the a closing covenants, notional As incur existing rate a we rate the agreement MGP MGP expense agreements reduce the a of expect amount $XXX to closing December, billion, the entered will entered of interest In result, related year-end, covenants default to a under three MGP to million. of VICI existing events Subsequent indentures into totaling $X.X and interest swap additional so transactions, the amount restrictions the into notional upon transaction, under forward-starting the with with aligned indentures. intended we the to $X are with interest of swap billion. acquisition. far in The the the we variability with of

credit under we plus from bears on year-end, revolving maturity extension efficient the on revolving facility. an Based current SOFR to LIBOR ratings, company's of options with facility points, credit credit pricing. the over billion liquidity in interest at overall credit The a highly with to subsequent addition, pricing basis points improvement closed secured XXX.X our capital. $X revolving grid-based In basis prior XXXX XXX new $X.X billion March and runs a term our bank facility draw revolver delayed increasing unsecured before loan,

the Just our million yesterday. Venetian We total short with approximately interest our the also to agreements, for and we settled $XXX cash The funding, has close eliminate balance that sale shares forward September of $X.X all to. forward We March of that but bringing from XXX onto $X agreements revolver on drew to acquisition. the been remaining sheet sale million coming the outstanding billion two recap billion. closed proceeds the subject which the to outsized highlight will I settlement Venetian VICI want proceeds

balance future X.X markets our capital principles the are the funding lock balance the unencumbered debt-to-EBITDA to in an sale and our of of pursue the goal investment-grade the asset maintain forward XXXX disciplined to short To rate on we achieving guiding approximately shares of and safeguarding XXXX a we how unsecured accessing sheet of mechanics majority opportunistically for long-term X fixed highlighted certainty XXst, laddering at company's composition capital and a interest, rating. net January an and to of transactions against ultimately basis; from approach summarize on maintain volatility; an the agreements. debt, sheet, million all structure was target start which events market a had which pool; of As XX the leverage

transactions, at we our towards seek the we to took during XXXX while billion flexibility when actions have OP should and access MGM of required optionality been to MGP units to closing investment-grade raise we start accretively. position the at of drive to the the $X.X grow ample and in maintain believe the rating relentless VICI able market permitted to redeem continuing an debt all time liquidity, to We and of investment-grade the XXXX be the

Turning for increased million, XXXX AFFO bringing $XXX.X AFFO was September quarter increased approximately and fourth between share, per $X.XX resulting AFFO to year-over-year AFFO in XX% offerings. over per growth XX.X% Total due per the share to full to share forward the from equity count or and March $X.XXXX or and billion, share. overall income the dilution temporary $X.XX in the statement. our disparity is prior share AFFO while XXXX increase per year. year an The AFFO growth

fully used calculation We proceeds approximately was Page you our agreement website outstanding on our XXXX, are two average release XXXX both share. Our earnings of which share and to which of the night. billion shares diluted regular to in of sheet balance in that the these our reconciliation $X.X added million of our September sheet. X balance the primarily secured result The detailing These added the XX September offering, to settlements the count release were press stock June the XX.X the of last a sale increased weighted of shares of common shares of to forward from September. way shares repay million portion to our used added refer our of in XX.X% tables loan posted as the tables term we've in common per where offerings

highlight continue the again our once and increase the adjusted revenue, EBITDA in triple high as non-cash our a in of proportion given margins net efficient highly when model corresponding results items. range strong Our run the in to increase XX% significant eliminating

$X of the in ratios with of G&A triple million quarter and sector. full and total was a Our expectations our only in the as one was net lowest X.X%, revenue for the percentage year line

net pro the our highlights sheet that This over-equitized closing Finally, acquisition, and on the debt-to-EBITDA I with have X.Xx of MGP our for incremental want that to significantly to XXXX fact is ended sheet net the complete closing, The transaction. debt positioning leverage. Xx. balance debt-to-EBITDA of ahead the on touch required raise the with We associated the we Venetian of to our and the funding income forma balance bringing

As I will this touch on important. be guidance,

initiating as in well for are share absolute a AFFO as both We on dollars guidance per basis. XXXX

results As future any not from activity other the does a acquisitions, guidance dispositions, impact or reminder, our pending specifically operating acquisition of MGP or transactions. pending on the include or markets possible nonrecurring capital

our our investments have to on forecast and best the dividends. to financial AFFO charge inherent ability due a measuring unpredictability noncash way productivity us accuracy. discussed, guidance represents quarterly income equity of unable record is which evaluating leaves in we a net CECL AFFO Accordingly, basis, As is the pay our its believe to we as FFO focused we and of performance with

agreements. million the acquisition Venetian shares the incorporates XXX September forward of were March subject the closed the and settlement guidance sale recently and to that Our

a line all year our between an diluted absolute AFFO guidance The December AFFO to reflect transactions in the of of XXXX. MGP position to benefit represents of the XX, actual be for of With And we will a in thus, count ending equity an the so. income are per share guidance of raise share. we questions. on the please the our to guidance do the announced or for versus open Accordingly, AFFO. total transaction $X.XXX XXXX basis, corresponding reflects We dollars VICI's increase that, billion the update midpoint the from per impact XX.X% MGP corresponding and and future the between $X.XX increase $X.XXX the close share in transaction. in billion when we the without $X.XX to XXXX, On expect operator, pending expect

Of from Our with line James. thank RJ, Milligan Raymond Instructions] now question comes you. is RJ first [Operator open. course, your

in is spread have a undervalued, a competition. new Good different you about morning Income's VICI? hurt Obviously, class? think that model. sort cap the puts Pricing those I wanted How But does and picture mean asset do for think What gaming ask of but do more takes? of question, adds What guys. maybe sale-leaseback bigger to implies operator lower Ed. maybe the the stock you embracing Realty future. in that rates you your entry

to Income chat of and goes very institution and category. and judicious with to that of come an Yes. Income XXXX. you. unalloyed to is have built in has positive Net-net, continued RJ, quality of to back allocation amazing it Realty always good an obviously capital, They've at and both categorically company. validate Realty our the Samit company drive stature geographically. excellence drive

does of in we've There saying further more are been institutionalized puts asset into come in the commercial the this since not we've we next is the category, come it John spoke story beginning an category. real that the been class believe institutionalization And institutionalization Well, the as great is. and the institutions is American saying, happen his remarks, if that So RJ, to into institutions estate. takes. don't

capital absolutely When in time, and/or situation over on cost we're rate longer over relative a compression. equal this of at every to You're cap a velocity have absolute the basis hard rate current more like the improving we sure an this, there's to both volatility of the to capital but the we work of our right. competition, face aside term, that single cost make leaving day

National the in see MGP the think especially become regional net-net, validating very transaction, owners, case, the as River I will with of assets, assets right we So positive. Potomac like again, Harbor D.C. of it And the this we in proud very on be owners

in rate you of and These also Borgata, terms in Rivage. are owners John Boston Detroit, MGP Boston. as look class And we're absolutely MGM as the our are his with happy of through of assets, in are Wynn same the the shareholders deserve. preeminent alluded assets that acquiring the in we of of if obviously We Encore remarks, to regional very cap revaluation what that will believe Beau become we

comments. Thanks of out question second expected then be the can be on David, pricing then the debt my transaction? more the the in for debt seeing And of And little is just, for those issued? bit to you what the closing timing going you're there a MGP specific maybe, that's markets and expected

Samantha, financing? then can you take want David to timing and talk

Sure.

Just that on the mention work jurisdictions applicable [indiscernible]. all with do we timing, just to I'll and continue through the process

markets, Thanks. start mentioned debt real RJ, as we're relates built that the the it hedge volatility my to remarks, to obviously, portfolio minimize a we've as witnessing, time $X I today. billion in to

with mentioned Samantha just we remarks, the regulatory market so can the MGP, One of our we of markets. issuing the that well we that alluded a when underwrote as the the and confident And positioned that underwrote work we we're in very team be debt through into – approval, Venetian couple has investment-grade we'll to. and in with do aspects The our aspects have forward is we when as the that once agencies we feel high-yield going which as done

quotes day markets. getting treasury our XX-year we're we for So out with the remains volatility And pricing, uptick on with what a with underwrote in unique in But the the XX-year in obviously, originally the is even going paper. for in underwriting high-XXX, over low-XXX line today rates.

blended accretion back we of So last feel on everything that and for basis, good in August we year. about you our overall laid a still out

Thanks a lot.

RJ. you Thank

RJ. you Thank

is Wes with from line question Baird. your next Our comes open. Wes, Golladay now

about going everyone. talk bit were the I morning believe higher buy sell is Could be near to on asset of while an Caesars that their over to cost term. mentioned assets your capital? you have pending MGP appetite call looking to currently still little a good you Hey, more and we

great have Reeg John of market. over week asset and around advantage the full an good you we why I'll see that, to right? part capital And if of use the intentions not obviously, possible emphasize turn energy market, have of take take was alternatives, opportunity of to you get only and somebody the you the very we which is, activities. the growth his real obviously, full adage, I'll the addition John. I'll whatever last hallmarked I practices I answer the to had we our another spent Yes, volatility capital will other last it ongoing last what and to want the in in on our feel never of best opportunities a it it what a to our given at capital we allocator, time. allocate capital the to the activities, asset bring that but versus a that capital you Tom want So allocators, only turn of could of for then the terms as relationships. But be, advantages fact of terms have." in look Yes. growth estate sale, one other did the may are to did that over who great question be, buy to to see every to just will well, it the ongoing first addition given focus dollar of announced of like it's want And is

Yes. Good morning, Wes.

over know, first As the don't happen these month. you deals

could company. we're since them of talk with had the the certain space, help C-suite in remarks, as how we side companies So said executives in in we're my what grow continuing very active, bit we capital our started experiential operators time. And could industries we call on sitting spending, of quite certain over partners hospitality gaming be a the I down or and the to explaining as to we time

said, be put Ed our out we So prudent active. capital. we're very that the way we'll And very as in

bit would of Dave, bid you is And sees it opportunity like? how that? assets. leverage. guess, assets, where take look if leverage, your, I on would Would fund there be you little you a to want assets leverage guess at think go strong you maybe you X.X% Or lean they're you recycling some I over high end something I willing is higher for than Okay. little Would to if the in something? you mentioned, find was selling then to a the a regional were you entertain

David?

Wes, us. look to alternatives going Yes. in at of mean, are that I front we're

we As it not just sold asset in assets, in Atlantic recycled have we release, Downs. asset mean, that's I – relates to our City, in we recycling Reno, an Louisiana

could So potentially, There there opportunity. opportunities. JV potential that be could be

joint the MGP venture, that we ability OP to the past. the to MGM, of assets that to Cordis. directly units And some is GLPI a issue are doing doing seen then obviously and You've in REIT attractiveness

So equity. of there's avenues other

As to leverage leverage it of agencies we and that's up and with disciplined our goal. take gotten something path just accretion, with dialogue we're a take to to financial our to leverage that's to pretty do. engineering six When the up We've drive up, relates taking you times. that strive

the I pursue table bring with. that other So we in that we're to said, our guidepost. we'll stay to, But as opportunities toolbox think dialogue can there's the within tools John in

the time. Thanks for Okay. everyone

Wes. Thanks

Thank you Wes.

Scotia with Our open. now Greg question your Greg, from McGinniss line next is Bank. comes

Hey, good morning.

Income Realty of like sounds it Boston any competing offers. curious, get kind to deal was Encore just So without able

this acquire the X.X% guess competitive you been did Wynn So on you had bid that location? CapEx thoughts think why run any would as asset? with process to cap do previously And at no tried I you And have minimums? a to not

that, over no a how Wynn call And they have over But in again, more part that or not the Realty beyond and to why would what you we implicitly absolutely a And can I Sumit in process. given John, not moment, Greg. say referring to are I'll might process. you to John to, you run run was stated But there ask not to to you turn did of above have want process. say. why yesterday, it see Roy you a you're should Wynn hand to process. were the know don't going as earnings much asset, ask clearly Income's we about to did I'll it

validation even great take as real of quality, on put we validation that's Harbor, a if right? started this asset about the a And there's for just said what good we've I'd already been that we've four-years quality, say our really cap value of company. it's think asset of National so when estate, the the I it's talking right? I better you it. mean an Look, rate

Okay. follow-ups guess two just And kind I investments. of on potential

how Or reach So guys billion you billion to $X amounts? fund, the viewing max potential transactions $X.X the property growth likelihood are maybe and thinking of about those occurring? the separately the partner

John?

they them grow I But tell our by there not to capital going can exciting tenants. all received Well, to with is in big we're projects, has about fund to rent part help incremental do. grow. what can tenants. think well we large our time. I be exactly predicts what And be to grow, conversations And of – our who are having that be it been be can help active and us our I'm over a I some to exciting the future tenants believe growth excited projects use where will will tells a gain this we're opportunities with guy you, you

again become, weighted very hurdle be extremely of average cost be not Greg, the cost cost to I the of achieve of – our just upon clearly on on need their equity would in that to should add given based return capital. when and partners inclusive basis, they attractive any cost the the property a capital we in capital we contingent not source cases, debt. capital. incremental their our for needed property demonstrating them, low-cost debt put them capital that in many compelling the partner our capital, cost are to the alleviate really, equity, for our investments can, in hurdle, that we course, our the It of investments can given that is will debt cost our the hurdles, of the be compared projects regard that of the and capital, of the fund of when partners. of And achieve necessary should of but them, can both of to only Because to again, achieve growth source capital our compared

just the of I the pipeline. guess piece final Okay.

Caesars not pricing the within potential in this potentially near-term? something the you you get which that's But there you ROFR, the whether this part impact how or year. determined So this Indiana, can just Can also the guys call said whether evaluating asset you'll got remind be and the [indiscernible] you is portfolio. us investment the desire is ease to done your

John?

I'll the I'll David assets. about structure. let about talk a little the talk bit

assets. They're great of They're big. they're all, growing. just First

capital both just a touched asset, at Indianapolis large the in As assets on, you one casinos. the They're was there table businesses investing horseshoe. of chunks the into games Caesars of to of these as rebranded legalized

the so continue Caesars' the then these assets get as grown assets and And under stabilize. leadership, capital not will to these they grow have only

So master to the into going you we're can bit was watch to lease. to little great David deal And would it a our We how additions enter these structured continuing are how then and think be portfolio. our tell it. David?

that of runs you put It acquisition was point to those us the are that X.X we're Sure. X started our the we two And attractive can time. those that ratio at cap, But call of into sequence some Tom those coverage reason call XX, team those of given assets have Caesars very times. over gone, the put Thanks, we'll this and that a how or cadence just XXXX. broader that John. to as as is of LTM go within December assets the referenced, excited else cap. something agreed that to, them year. own at into and can X.X% cap to two It's with where alluded funding We assess master to potentially assets Part at we at an period and Eldorado X% lease. John assets, that going rates we regional set growth an here. at internally the will very on everything have January

David profitability us comfortable the Tom's just to a Caesars the go ago confidence level levels that we us terms point, thus, Tom's will Caesars. needless with have the our to corporate about, comfortable in X.X say, regard coverage, in coverage, the exceeded which is asset closed be spoke lease. give few the strong to achieve that of Well, team based a add part new very me case level us magnificent But level rent when take Tom And that why coverage, willing will Reeg is as to these got corporate making to achieve X.X. this upon asset at that given were years Let in corporate guarantee. would of proving leadership the again, greatly what corporate expectations our corporate into master coverage profitability the rather at regional to coverage level there on rent we rent and re-stress under

I just lost. said thing to one it's to want what want to make And sure I David add that don't

We cap. have that the a X.X% the to for a just there regional right was at call a X.X% markets transaction this happened in And cap.

you. Okay. Thank

you, Thank Greg.

question next open. Jonas is Barry, now line Our Barry comes Truist. your from with

Thank you Great. for my questions. taking

this geographies at I'm in and inclined will largest curious now. are of you're portfolio point? if have market less You the on or gaming have right expand there to obviously any guys the segments

John?

in that, real there's take Barry. like more own it opportunity we'd answer of to where areas estate. I'll I'll

Vegas were the you pandemic closely, Las market, at pandemic the during they've you don't coming Las how any Vegas. and look If in I after or the the estate Downtown pandemic. of as own performers performed We which well you follow there, think real they regional know, of the out Barry, before

you and way there If market done people changed has team Tillman market, think how his years. for have about Circa the and job a great that that see

don't Colorado, on there's others. We real don't Island. Pittsburgh, market. the Charles, have in estate Vegas big is if We Reno, own which opportunity Rhode Las So a Downtown an like market, assets in

still markets assets. earlier, ROFRs a own there's that here we And a Vegas few gaming quite got asset. as we Las on another talked don't So we've

got opportunity. Haven't So like want estate. I'm sure we go saying I I'm to answer for many see us. continued really wouldn't But where opportunities into, few had we we've there's I where that a that real feel there's opportunities but enough

timing the impacted And environment That's just of the then any as a current helpful. if that's given we're really pace seeing, you curious M&A having? or I'm be follow-up, may discussions macro

March a right? to of which We've bother we been wild of had crack wouldn't anytime the up of have XXXX. none rate through had of again December us had pretty naming the of it's four-years, look Barry, We XXXX. kind interest But ball. XXXX spring we hope soon. I obviously

of eventually live key at of taken if that come I learned with have lesson, an obviously developing volatility deal relationships one times don't will because end. it's times to think stop in to volatility We And and volatility VICI.

dormancy it in which us. ultimately is the again, capital relationships, we So to sure periods terms money take point the that turn working be be flow. any given be know we're will what keep out the cannot I any honest with shut of to want volatility and at make you, is into what to noise just of doing. we day, obviously time and cost to every deal just by We to heedless means we going to of the from But single care fundamental can't develop of to going doing money our periods re-emphasize cost is activity come and of have where our

guys. Thanks Ed. Thanks great. That’s

Barry. Thanks,

Thank you, Barry.

Our next your Capital with question now Daniel, Adam Markets. open. is Daniel comes Loop from line

Hi. Thank morning you and good everyone.

deal new call Just you as given you of a turning just the for Encore you think a regional to rate this quality one-off I'm Income’s point will, for and Boston. follow X% whether that guys or see in if location cap Encore? general valuations curious up of on asset Realty whether or sub marks more normal, it

or I quality estate hierarchy right? Really accepted prior there's As specifically, of earnings luxury, games. the with hierarchies exist it's mentioned definitely in there's is hotel to widely on I know, a a well, Star Well, may by within of so and doesn't so And categorization generally in so four, on we forth. Yes. hear few does on two sector, – the Daniel, whether used always in much exist quality, classification, a to doesn't five, on accepted of work have this that in not the and upper struck yet calls, you. come gaming have clearly it one am strip. up upscale whether good things not real exist regional. clearly of so it's three, I on accepted you but so based forth, and from where many gaming, yet

tier Boston, to after is Boston when So asset benchmark of assets, hierarchy Harbor, National and spend, categories in can Borgata, a rate is lower try tier they're usually, regional rates, effect set a about a an stream if benchmark and gaming, were Rivage, top Encore Orleans, gaming that impose terms highest cap Caesars is to there team the usually the the regional for the assets. the And on of City. that quality on would you in quality like a establishes in lower cap to New has new lower of of capital this include level class especially regional a Atlantic new Caesars of Encore There MGM asset Detroit Harrah's assets Beau slip quality puts there higher highest – quality. category

highest you a regional because which believe will in also leader does look not Boston again, resiliency owning, COVID. stream end at we upstream properties, for I market the it implicit it maybe for create create And will other be only through assets? slip question, the but your regional a would the Encore So guess we

of asset you of barriers estate have the valuation you woefully to these all If concede entry, indispensability frameworks, you to if at the and assets, to underpriced. and the you look at real look look good are really operator, at they the metrics the are classic

internationally? sense. on of outside ton just the follow-up, of that U.S. in there that. a particular remarks, And I think in as any Are evaluating you deals focused you're a makes markets appreciate That prepared mentioned the then I

David, do to that? you take want

what's U.S., talk logo, Sure. a what Australia, tax you. jurisdictions good into good things is realty UK. the They've Europe, the and lot and look a and readable given going Spain we like Dan, good nature talked I the into real But obviously to rule mean Europe, Canada, so in less just Less to maybe we outside obviously, most Europe about jurisdictions. look nice as gaming the – simplistically but "boxes." gaming. and Singapore, income estate, we other of UK, jurisdictions Japan, here gone

like You've go REITs abroad. seen other Simon

grow, So at infrastructure sorts opportunities that And the and we to there we've develop got into continue our do those And expertise and across globe. we ultimately continue to to we're bring as to of opportunities assessing the look looking and are over those the so. opportunities portfolio time.

Okay. guys. much Great. Thanks so

Thank you, Daniel.

Daniel. Thanks

now is Rose comes Smedes next Smedes, line with open. from question Our your Citi.

to talking Michael spent in pretty I in It's back then company to the created pandemic, going how a and right of Smedes. be. you and Bilerman you equity commitments last strong. the were levels there where that wanted been it here you've you issuances, with that in total the has a at today new of you to overhangs the leverage before comments relative some the and that the about your better even that end been performance issuing about actually lackluster look with all you summer, valuation it's to relative fact pre-pandemic, are more sense bit have total think have driven I the have public the towards type though that the forward recession would part the time but clearly about widened and just including rent, if as your the the also pay want and dividend the down get since that higher done REITs occurred you equity which the positives think, return talked to the emerging of no happened. little have Ed, of your tenants going a REITs in all bit you've point fact time a time of opening had last successes different since and one to any future, from by point of frame entity into little has that thought all as return, break come And to periods I sense to that wanted four your you've the growth, years the since which

about you outperformance going terms of recent in I frame time into and to issuance able it equity this to over forward the from sort the the more and of you're back believe you think to want performance of that. step sort how be So drive so ties and how point

more that and it back a is achieve have And after important equity our want achieved, of of question. I is nongaming in a that's gaming for frankly, done, scale raised we've less have, sustained, It And achieved transformative which begin more that one develop Yes, we the especially we MGP, with to both The soon the degree, to because all having cadence strategy fungibility yesterday last and place we've the would Venetian is a I the Michael, model. our going MGP Yes. to of David a gargantuan. been activities flow use did to for especially having we having of and deal really say accordingly, We is going extremely that wrestling profound fall, profound question. really some forward, it's elements that do but deals the be, of built-in simple. we the want flow growth we to want done fundraising but to cash. Venetian,

pretty sheer to in our on Labor of a their when that been the shareholders. remain then in much will effect doing MGP. weighty We And It's summer And a help the prove And late QX. And the Michael, do glad Day, slog we right. still since that, see is did equity pleased realized in we appreciate We so. absolutely [indiscernible] and won team of of Citi that, since, things we be we're we XXXX our that be to the late for our core of and are have we're through stock. billion of amount did did especially patience the raised equity, really happened turbulence it the was we we QX. performance shareholders very $X.X were here thank to the steady for the how well, You actually that hopeful case summer. earn in week

a gets and hope gargantuan sustained core raises. equity on is sustainable business I that were create to want do we that and these kinds forward, model of to of lessens question the the Going you asking.

Yes. there step as still is It on shares. overhang I think feels some further. taking And though level of a the

accretive estimates right, been contracting. that the yet the positives multiple of have the you've Given up, all and been nature done, has moving transactions the

And of so about MGP, nervousness I think that other with gargantuan finally raise deal amount ROFR. funding be in whether of the of to types transactions, a, they marketplace. there's closing next there's I these also a think this the just but tension the certainly that And

trying this into to you know investment-grade what to just well. more I trying as level normal your at where don't financing heads this that's pace, of I this growth at maybe was terms your heads overhang another shares? where to And of you get raise And to so appears eliminating that in need be is and now potential where to at before get this I'm your terms in to of on that's get commitment given

Yes.

we clear, to raise just be MGP. need not further to So do any for equity

all have We raised equity the need. we

debt. We will be raising only

a We will ratio shareholders, share on exchange have including with exchange obviously MGP a fixed the MGM.

they're that have to be term. just any we're very So for the compellingly of to And out when very will ROFR to our only possible fact amount for of equity our to we're the a accretive way that MGP. shareholders. it opportunities every that shareholders a bias easier revaluation raise of will further there's we such our comes it to and be achieve other equity that we technical use re-emphasize not of ton to And no or an not needs point, realize to understood they to chance funding because it and grants need raise the mindful give opportunity, if conscious consider need to our equity again, of go if market and the little we to broadly the into if do deserve, a fact

a position funding getting or below incremental So your and a where ventures in you're are land to those having already an put in target to point you sort yourself or discussions when terms that of as parcels been this funded, assets today down, leverage comes pitch levels so joint outright overhang? eliminate you selling go almost that of

Yes.

strategically those to to up We in of can that at our which are David over retained all very about will use quickly, the and payout just maybe going we amount building things. way turn given be we David? it And talk I'll the looking he are cash ratio,

we good I capital we well, here, the you. kind Ed just Thanks, you talk Michael, obviously we all execute But assessed always MGP the year a and into half that in Yes. run got you've to July, levers cash help. that everybody's $X do we raise, for when And back XX% moving dividends, were August, along of June, to significant to said million $XXX true a – potentially $X.X even that billion get that's very feedback, taking and And and ultimately first is out of as something is around able then something equity. what Samantha options roughly went and flow. we step of of a take closed to rate MGP other and mean transaction how of free of of AFFO a I flow. of could roughly billion lot free took we cash mean, that have navigate is the we lightly with pulled, that had

you As CapEx. no we know, have

of There's lot our not to G&A. have need that come that items a G&A We of cash other is out free our flow.

that's since we continue day power to of deliver buying you lever to if X:X, that that that growth $X internally have we've one. So the billion delivered

important obviously Realty to enterprise. the between just then their it. I want to were items a in just desire look what you and Wynn's the Income was Realty negotiated get And in peak, transaction terms Wynn. to negotiated second think when do Encore of get to you obviously How obviously, And of that Great. of out they Wynn them and it had Income? topic to very hear you have

the think obviously, comments the put It XX these Encore X% CapEx pricing that because As do didn't had structure about for below the you requirement. of made that leases, transaction, you've you about were think the first a bumps have your that aside the was critical you as years. are it How you individual for new these gaming in that and mark terms? real about think the to thought from continue assets. perspective, what grow do But validated factors you how for a And setting estate? regional rich you key

kinds different of I Yes. running risks. roles, running Income different Michael, are fairly kinds rent think companies of VICI and Realty different

weighted in point saw term [ph] lease remarks I years. average Samit's that think is at this I XX their

Ours is XX.X years.

that in its the like magnitude So the to example, average like X% important rule. rent I lease delta for CapEx, weighted than to – rent things will us of given were think to of represent magnitude will Encore Samit escalation, us report maybe just, represent terms, of that Wynn more

both different we have – we both We both think have different levers. I run profiles.

maybe us, to it's important not him. important really be to would what So

you're growth CapEx else? go Yes. these, to It the duration lease what that Is you. side of of and non-negotiables what was variables here what asset. the not? sounds into there sort coverage rate was north at, longer you get And that's and the grow I performance to you're just like of given of for you're trying accept whether in willing a terms of Xx, the certain should sort corporate anything given important Obviously, and when are

continue that you the what down are Just are variables embark for to road? as other critical you this

or obviously this did And our correct up. But two than feels much will but broke I'm achieve year important protection of it MGM now say, wrong, CPI we more needless X me into be Well, that Europe Michael, it some measure to CPI protection. very, critical Michael. I'm step of BPI to thought getting and one Danny lease, that if that's it. call, sorry, And have built we've important, very ago. really right now is once in protection right XX% in always

said you protection? cap a to don't You though, had limit you? inflation a that on that There's

Caesars X do Caesars in percent November some we on others. increase in out rent the of are We leases. leases uncapped, Vegas Las which a lease. is We The why X.X-odd posted don't

a Thanks right. All guys. half. Okay. in See you week

indeed. Yes

Operator, more question. will one to it. take forward we Looking

Okay.

Todd now question is line open. Todd, KeyBanc. comes with next Thomas your Our from

year of Hi, And achieve half what's MGP. your around line Good closing But the understanding thanks. the with for Hi. the comments track Good morning. timing timing to hurdles closing, I the rating, then regards look appreciate Yes. the of to morning. of there? first David, the remain? on being what primary the to investment-grade that are an the time

David? David, the time on with why and step process line don't further Samantha with you maybe MGP? in start

of to year. the we to biweekly that – to just on agencies concerns clarity with kind close, with Yes, Good And updated having talking but revolving June, have around agencies the will shareholder them to or it talk which little We've them that more the they no the be we're talk can or every final a them closing votes. going started dialogue to of updates And connect weekly happy to of along they a the updated it's on on want close. it's Look, of way. are approvals, updated want But not in yesterday. day, on to. We Samantha Todd. consent other solicitation the if waiting And little we that. about. regular We the bit bit the Venetian certainty July agencies. of them you, of The it's last them of facility. We credit the give closing end the that

that of little gotten of the everything all body But is moving language of issue what that it's know a signals and towards is. egg. it's the we've that us chicken So bit that date and none a is date. The really

that, And it turn so to over Samantha, with I'll you.

Yes. Thanks, David.

And we reiterate I closing. individual applicable want we half continue all I But remain think through the processes just into won't surprisingly, jurisdictions. we as confident with not that first we hurdles, get to to about again, in jurisdictions. do speak just work the

Okay.

upgraded the get mean finalized, launching bit quickly. a then do rating. a will approvals just act Sorry, we to the little the to debt And will in be it make that approval, more position clear. we we once go I to be after markets once agencies believe with we that the

can us regarding net just on permanent closing? Okay. the initiatives, the to of but remind – forma be the $X.X that raising we're capital execute that And Got Caesars expect obtaining should closing closes, debt near that does to to you ahead a also the then you leverage in extent on just the not term, basis expect and billion rating pro an extent And we you you future to activity? also capacity do MGP? on raise, present of assume it. to the that Or debt-to-EBITDA investment investment-grade that that potential or will until something there transaction something have itself else any asset be a sorry,

The pro the That a net rate our for net debt on MGP forma And with debt-to-EBITDA Xx. inside is will start basis, be transaction. and leverage the the for Let's of Venetian that's X.Xx to EBITDA. run –

give S&P in confidence Specifically, upgrading would has us. That them targeted.

As it funding ROFR other or having around or mean, dialogue back relates timing we've potential a opportunities, to the that goes that to the been around. I

transaction our if underwriting and that for opportunity shareholders. makes accretive every assess the option will we're sense is We

to So it's not an and either/or. And both. capability do we've do potentially the got the team

Okay. Thank All right. you.

now time, this back conference Edward I pass the to will over VICI. At Pitoniak Ed? of

Thank all with your closing, us for want morning. And in you, engagement thank this Amber. of you we to

about excited chatting and everyone. Thank when our And our report first present our for we're can near-term long-term As with Bye we now. you results. look quarter situation, again we very forward prospects. opportunities tell, our you, you to

That call. participation. one concludes conference Thank you XXXX VICI Properties quarter [ph] your for

your You lines. may now disconnect