☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 81-4177147 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common stock, $0.01 par value | VICI | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
VICI PROPERTIES INC. | ||||||||||||||||||||
FORM 10-Q | ||||||||||||||||||||
FOR THE QUARTER ENDED JUNE 30, 2020 | ||||||||||||||||||||
TABLE OF CONTENTS | ||||||||||||||||||||
Page | ||||||||||||||||||||
Item 1. Financial Statements |
September 30, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Real estate portfolio: | |||||||
Investments in direct financing and sales-type leases, net | $ | 10,455,900 | $ | 8,916,047 | |||
Investments in operating leases | 1,086,658 | 1,086,658 | |||||
Land | 94,711 | 95,789 | |||||
Cash and cash equivalents | 431,423 | 577,883 | |||||
Restricted cash | 32,087 | 20,564 | |||||
Short-term investments | 342,767 | 520,877 | |||||
Other assets | 137,920 | 115,550 | |||||
Total assets | $ | 12,581,466 | $ | 11,333,368 | |||
Liabilities | |||||||
Debt, net | $ | 4,125,473 | $ | 4,122,264 | |||
Accrued interest | 23,945 | 14,184 | |||||
Deferred financing liability | 73,600 | 73,600 | |||||
Deferred revenue | 250 | 43,605 | |||||
Dividends payable | 137,048 | 116,287 | |||||
Other liabilities | 147,081 | 62,406 | |||||
Total liabilities | 4,507,397 | 4,432,346 | |||||
Commitments and contingencies (Note 10) | |||||||
Stockholders’ equity | |||||||
Common stock, $0.01 par value, 700,000,000 shares authorized and 461,005,745 and 404,729,616 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 4,610 | 4,047 | |||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized and no shares outstanding at September 30, 2019 and December 31, 2018 | — | — | |||||
Additional paid-in capital | 7,816,233 | 6,648,430 | |||||
Accumulated other comprehensive loss | (77,116 | ) | (22,124 | ) | |||
Retained earnings | 246,587 | 187,096 | |||||
Total VICI stockholders’ equity | 7,990,314 | 6,817,449 | |||||
Non-controlling interest | 83,755 | 83,573 | |||||
Total stockholders’ equity | 8,074,069 | 6,901,022 | |||||
Total liabilities and stockholders’ equity | $ | 12,581,466 | $ | 11,333,368 |
June 30, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Real estate portfolio: | |||||||||||
Investments in leases - direct financing and sales-type, net | $ | 10,372,656 | $ | 10,734,245 | |||||||
Investments in leases - operating | 1,086,658 | 1,086,658 | |||||||||
Investments in leases - financing receivables, net | 812,636 | — | |||||||||
Investments in loans, net | 49,876 | — | |||||||||
Land | 94,711 | 94,711 | |||||||||
Cash and cash equivalents | 1,680,536 | 1,101,893 | |||||||||
Restricted cash | 2,000,000 | — | |||||||||
Short-term investments | — | 59,474 | |||||||||
Other assets | 180,561 | 188,638 | |||||||||
Total assets | $ | 16,277,634 | $ | 13,265,619 | |||||||
Liabilities | |||||||||||
Debt, net | $ | 6,758,132 | $ | 4,791,563 | |||||||
Accrued interest | 48,828 | 20,153 | |||||||||
Deferred financing liability | 73,600 | 73,600 | |||||||||
Deferred revenue | 358 | 70,340 | |||||||||
Dividends payable | 158,659 | 137,056 | |||||||||
Other liabilities | 163,646 | 123,918 | |||||||||
Total liabilities | 7,203,223 | 5,216,630 | |||||||||
Commitments and contingent liabilities (Note 11) | |||||||||||
Stockholders’ equity | |||||||||||
Common stock, $0.01 par value, 700,000,000 shares authorized and 533,667,755 and 461,004,742 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 5,337 | 4,610 | |||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized and 0 shares outstanding at June 30, 2020 and December 31, 2019 | — | — | |||||||||
Additional paid-in capital | 9,296,511 | 7,817,582 | |||||||||
Accumulated other comprehensive loss | (117,265) | (65,078) | |||||||||
Retained (deficit) earnings | (191,835) | 208,069 | |||||||||
Total VICI stockholders’ equity | 8,992,748 | 7,965,183 | |||||||||
Non-controlling interest | 81,663 | 83,806 | |||||||||
Total stockholders’ equity | 9,074,411 | 8,048,989 | |||||||||
Total liabilities and stockholders’ equity | $ | 16,277,634 | $ | 13,265,619 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||
Income from direct financing and sales-type leases | $ | 206,001 | $ | 189,938 | $ | 603,300 | $ | 554,293 | Income from direct financing and sales-type leases | $ | 223,895 | $ | 201,549 | $ | 448,147 | $ | 397,299 | |||||||||||||||||||||||||||||||||
Income from operating leases | 10,913 | 12,209 | 32,740 | 36,627 | Income from operating leases | 10,913 | 10,914 | 21,826 | 21,827 | |||||||||||||||||||||||||||||||||||||||||
Tenant reimbursement of property taxes | — | 25,147 | — | 61,322 | ||||||||||||||||||||||||||||||||||||||||||||||
Income from lease financing receivables and loans | Income from lease financing receivables and loans | 17,026 | — | 29,869 | — | |||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 733 | — | 1,426 | — | |||||||||||||||||||||||||||||||||||||||||||||
Golf operations | 5,599 | 5,393 | 21,221 | 19,696 | Golf operations | 5,335 | 8,283 | 11,635 | 15,622 | |||||||||||||||||||||||||||||||||||||||||
Revenues | 222,513 | 232,687 | 657,261 | 671,938 | Revenues | 257,902 | 220,746 | 512,903 | 434,748 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 6,717 | 5,678 | 19,460 | 20,145 | General and administrative | 7,498 | 6,518 | 14,513 | 12,743 | |||||||||||||||||||||||||||||||||||||||||
Depreciation | 1,000 | 929 | 2,948 | 2,757 | Depreciation | 1,213 | 1,018 | 2,080 | 1,948 | |||||||||||||||||||||||||||||||||||||||||
Property taxes | — | 25,423 | — | 61,598 | ||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 736 | — | 1,439 | — | |||||||||||||||||||||||||||||||||||||||||||||
Golf operations | 5,423 | 4,223 | 14,363 | 12,832 | Golf operations | 4,139 | 4,848 | 8,509 | 8,940 | |||||||||||||||||||||||||||||||||||||||||
Loss on impairment | — | 12,334 | — | 12,334 | ||||||||||||||||||||||||||||||||||||||||||||||
Change in allowance for credit losses | Change in allowance for credit losses | (65,480) | — | 84,028 | — | |||||||||||||||||||||||||||||||||||||||||||||
Transaction and acquisition expenses | 993 | — | 4,749 | — | Transaction and acquisition expenses | 1,160 | 2,867 | 5,677 | 3,756 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 14,133 | 48,587 | 41,520 | 109,666 | Total operating expenses | (50,734) | 15,251 | 116,246 | 27,387 | |||||||||||||||||||||||||||||||||||||||||
Operating income | 208,380 | 184,100 | 615,741 | 562,272 | Operating income | 308,636 | 205,495 | 396,657 | 407,361 | |||||||||||||||||||||||||||||||||||||||||
Interest expense | (68,531 | ) | (54,051 | ) | (176,936 | ) | (158,365 | ) | Interest expense | (77,693) | (54,819) | (153,786) | (108,405) | |||||||||||||||||||||||||||||||||||||
Interest income | 6,690 | 2,027 | 15,861 | 7,504 | Interest income | 1,009 | 4,004 | 6,529 | 9,171 | |||||||||||||||||||||||||||||||||||||||||
Loss from extinguishment of debt | — | — | — | (23,040 | ) | Loss from extinguishment of debt | — | — | (39,059) | — | ||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 146,539 | 132,076 | 454,666 | 388,371 | Income before income taxes | 231,952 | 154,680 | 210,341 | 308,127 | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | (24 | ) | (52 | ) | (1,098 | ) | (884 | ) | Income tax expense | (309) | (553) | (763) | (1,074) | |||||||||||||||||||||||||||||||||||||
Net income | 146,515 | 132,024 | 453,568 | 387,487 | Net income | 231,643 | 154,127 | 209,578 | 307,053 | |||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interest | (2,080 | ) | (2,112 | ) | (6,235 | ) | (6,409 | ) | Less: Net income attributable to non-controlling interest | (2,241) | (2,078) | (4,188) | (4,155) | |||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 144,435 | $ | 129,912 | $ | 447,333 | $ | 381,078 | Net income attributable to common stockholders | $ | 229,402 | $ | 152,049 | $ | 205,390 | $ | 302,898 | |||||||||||||||||||||||||||||||||
Net income per common share | Net income per common share | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.35 | $ | 1.05 | $ | 1.06 | Basic | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | |||||||||||||||||||||||||||||||||
Diluted | $ | 0.31 | $ | 0.35 | $ | 1.04 | $ | 1.06 | Diluted | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | |||||||||||||||||||||||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares of common stock outstanding | Weighted average number of shares of common stock outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 460,666,295 | 369,935,055 | 426,437,889 | 360,997,358 | Basic | 489,012,165 | 412,309,577 | 477,094,795 | 409,040,025 | |||||||||||||||||||||||||||||||||||||||||
Diluted | 465,771,668 | 370,127,185 | 428,366,146 | 361,042,203 | Diluted | 489,213,427 | 412,821,400 | 481,652,482 | 409,473,202 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 144,435 | $ | 129,912 | $ | 447,333 | $ | 381,078 | Net income attributable to common stockholders | $ | 229,402 | $ | 152,049 | $ | 205,390 | $ | 302,898 | |||||||||||||||||||||||||||||||||
Unrealized (loss) gain on cash flow hedges | (7,113 | ) | 10,105 | (54,992 | ) | 5,465 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges | Unrealized gain (loss) on cash flow hedges | 951 | (30,688) | (52,187) | (47,879) | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to common stockholders | $ | 137,322 | $ | 140,017 | $ | 392,341 | $ | 386,543 | Comprehensive income attributable to common stockholders | $ | 230,353 | $ | 121,361 | $ | 153,203 | $ | 255,019 |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Gain | Retained Earnings | Total VICI Stockholders’ Equity | Non-controlling Interest | Total Stockholders’ Equity | |||||||||||||||||||||
Balance as of December 31, 2017 | $ | 3,003 | $ | 4,645,824 | $ | — | $ | 42,662 | $ | 4,691,489 | $ | 84,875 | $ | 4,776,364 | |||||||||||||
Net income | — | — | — | 112,122 | 112,122 | 1,981 | 114,103 | ||||||||||||||||||||
Issuance of common stock, net | 695 | 1,306,424 | — | — | 1,307,119 | — | 1,307,119 | ||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | — | (3,856 | ) | (3,856 | ) | ||||||||||||||||||
Dividends declared ($0.16 per common share) | — | — | — | (59,221 | ) | (59,221 | ) | — | (59,221 | ) | |||||||||||||||||
Stock-based compensation, net of forfeitures | 3 | 388 | — | — | 391 | — | 391 | ||||||||||||||||||||
Balance as of March 31, 2018 | 3,701 | 5,952,636 | — | 95,563 | 6,051,900 | 83,000 | 6,134,900 | ||||||||||||||||||||
Net income | — | — | — | 139,044 | 139,044 | 2,316 | 141,360 | ||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | — | — | ||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | — | (1,982 | ) | (1,982 | ) | ||||||||||||||||||
Dividends declared ($0.2625 per common share) | — | — | — | (97,163 | ) | (97,163 | ) | — | (97,163 | ) | |||||||||||||||||
Stock-based compensation, net of forfeitures | — | 468 | — | — | 468 | — | 468 | ||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (4,640 | ) | — | (4,640 | ) | — | (4,640 | ) | |||||||||||||||||
Balance as of June 30, 2018 | 3,701 | 5,953,104 | (4,640 | ) | 137,444 | 6,089,609 | 83,334 | 6,172,943 | |||||||||||||||||||
Net income | — | — | — | 129,912 | 129,912 | 2,112 | 132,024 | ||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | — | — | ||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | — | (1,981 | ) | (1,981 | ) | ||||||||||||||||||
Dividends declared ($0.2875 per common share) | — | — | — | (106,441 | ) | (106,441 | ) | — | (106,441 | ) | |||||||||||||||||
Stock-based compensation, net of forfeitures | 1 | 622 | — | — | 623 | — | 623 | ||||||||||||||||||||
Unrealized gain on cash flow hedges | — | — | 10,105 | — | 10,105 | — | 10,105 | ||||||||||||||||||||
Balance as of September 30, 2018 | $ | 3,702 | $ | 5,953,726 | $ | 5,465 | $ | 160,915 | $ | 6,123,808 | $ | 83,465 | $ | 6,207,273 | |||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Gain | Retained Earnings | Total VICI Stockholders’ Equity | Non-controlling Interest | Total Stockholders’ Equity | |||||||||||||||||||||
Balance as of December 31, 2018 | $ | 4,047 | $ | 6,648,430 | $ | (22,124 | ) | $ | 187,096 | $ | 6,817,449 | $ | 83,573 | $ | 6,901,022 | ||||||||||||
Net income | — | — | — | 150,849 | 150,849 | 2,077 | 152,926 | ||||||||||||||||||||
Issuance of common stock, net | 62 | 128,203 | — | — | 128,265 | — | 128,265 | ||||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (2,031 | ) | (2,031 | ) | ||||||||||||||||||
Dividends declared ($0.2875 per common share) | — | — | — | (118,154 | ) | (118,154 | ) | — | (118,154 | ) | |||||||||||||||||
Stock-based compensation, net of forfeitures | 1 | 1,050 | — | — | 1,051 | — | 1,051 | ||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (17,191 | ) | — | (17,191 | ) | — | (17,191 | ) | |||||||||||||||||
Balance as of March 31, 2019 | 4,110 | 6,777,683 | (39,315 | ) | 219,791 | 6,962,269 | 83,619 | 7,045,888 | |||||||||||||||||||
Net income | — | — | — | 152,049 | 152,049 | 2,078 | 154,127 | ||||||||||||||||||||
Issuance of common stock, net | 500 | 1,035,780 | — | — | 1,036,280 | — | 1,036,280 | ||||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (2,011 | ) | (2,011 | ) | ||||||||||||||||||
Dividends declared ($0.2875 per common share) | — | — | — | (132,539 | ) | (132,539 | ) | — | (132,539 | ) | |||||||||||||||||
Stock-based compensation, net of forfeitures | — | 1,366 | — | — | 1,366 | — | 1,366 | ||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (30,688 | ) | — | (30,688 | ) | — | (30,688 | ) | |||||||||||||||||
Balance as of June 30, 2019 | 4,610 | 7,814,829 | (70,003 | ) | 239,301 | 7,988,737 | 83,686 | 8,072,423 | |||||||||||||||||||
Net income | — | — | — | 144,435 | 144,435 | 2,080 | 146,515 | ||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | — | — | ||||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (2,011 | ) | (2,011 | ) | ||||||||||||||||||
Dividends declared ($0.2975 per common share) | — | — | — | (137,149 | ) | (137,149 | ) | — | (137,149 | ) | |||||||||||||||||
Stock-based compensation, net of forfeitures | — | 1,404 | — | — | 1,404 | — | 1,404 | ||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (7,113 | ) | — | (7,113 | ) | — | (7,113 | ) | |||||||||||||||||
Balance as of September 30, 2019 | $ | 4,610 | $ | 7,816,233 | $ | (77,116 | ) | $ | 246,587 | $ | 7,990,314 | $ | 83,755 | $ | 8,074,069 |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained (Deficit) Earnings | Total VICI Stockholders’ Equity | Non-controlling Interest | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 4,047 | $ | 6,648,430 | $ | (22,124) | $ | 187,096 | $ | 6,817,449 | $ | 83,573 | $ | 6,901,022 | |||||||||||||||||||||||||||
Net income | — | — | — | 150,849 | 150,849 | 2,077 | 152,926 | ||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 62 | 128,203 | — | — | 128,265 | — | 128,265 | ||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (2,031) | (2,031) | ||||||||||||||||||||||||||||||||||
Dividends declared ($0.2875 per common share) | — | — | — | (118,154) | (118,154) | — | (118,154) | ||||||||||||||||||||||||||||||||||
Stock-based compensation, net of forfeitures | 1 | 1,050 | — | — | 1,051 | — | 1,051 | ||||||||||||||||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (17,191) | — | (17,191) | — | (17,191) | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 4,110 | 6,777,683 | (39,315) | 219,791 | 6,962,269 | 83,619 | 7,045,888 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 152,049 | 152,049 | 2,078 | 154,127 | ||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 500 | 1,035,780 | — | — | 1,036,280 | — | 1,036,280 | ||||||||||||||||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | — | (2,011) | (2,011) | ||||||||||||||||||||||||||||||||||
Dividends declared ($0.2875 per common share) | — | — | — | (132,539) | (132,539) | — | (132,539) | ||||||||||||||||||||||||||||||||||
Stock-based compensation, net of forfeitures | — | 1,366 | — | — | 1,366 | — | 1,366 | ||||||||||||||||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (30,688) | — | (30,688) | — | (30,688) | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 4,610 | $ | 7,814,829 | $ | (70,003) | $ | 239,301 | $ | 7,988,737 | $ | 83,686 | $ | 8,072,423 | |||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | 4,610 | $ | 7,817,582 | $ | (65,078) | $ | 208,069 | $ | 7,965,183 | $ | 83,806 | $ | 8,048,989 | |||||||||||||||||||||||||||
Cumulative effect of adoption of ASC 326 | — | — | — | (307,114) | (307,114) | (2,248) | (309,362) | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (24,012) | (24,012) | 1,947 | (22,065) | ||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 75 | 199,802 | — | — | 199,877 | — | 199,877 | ||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (2,042) | (2,042) | ||||||||||||||||||||||||||||||||||
Dividends declared ($0.2975 per common share) | — | — | — | (139,413) | (139,413) | — | (139,413) | ||||||||||||||||||||||||||||||||||
Stock-based compensation, net of forfeitures | 1 | 1,184 | — | — | 1,185 | — | 1,185 | ||||||||||||||||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | (53,138) | — | (53,138) | — | (53,138) | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 4,686 | 8,018,568 | (118,216) | (262,470) | 7,642,568 | 81,463 | 7,724,031 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | 229,402 | 229,402 | 2,241 | 231,643 | ||||||||||||||||||||||||||||||||||
Issuance of common stock, net | 650 | 1,275,974 | — | — | 1,276,624 | — | 1,276,624 | ||||||||||||||||||||||||||||||||||
Distributions to non-controlling interest | — | — | — | — | — | (2,041) | (2,041) | ||||||||||||||||||||||||||||||||||
Dividends declared ($0.2975 per common share) | — | — | — | (158,767) | (158,767) | — | (158,767) | ||||||||||||||||||||||||||||||||||
Stock-based compensation, net of forfeitures | 1 | 1,969 | — | — | 1,970 | — | 1,970 | ||||||||||||||||||||||||||||||||||
Unrealized gain on cash flow hedges | — | — | 951 | — | 951 | — | 951 | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | $ | 5,337 | $ | 9,296,511 | $ | (117,265) | $ | (191,835) | $ | 8,992,748 | $ | 81,663 | $ | 9,074,411 | |||||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 209,578 | $ | 307,053 | |||||||||||||
Adjustments to reconcile net income to cash flows provided by operating activities: | |||||||||||||||||
Non-cash leasing and financing adjustments | 6,226 | (4,789) | |||||||||||||||
Stock-based compensation | 3,361 | 2,417 | |||||||||||||||
Depreciation | 2,080 | 1,948 | |||||||||||||||
Amortization of debt issuance costs and original issue discount | 11,136 | 3,364 | |||||||||||||||
Change in allowance for credit losses | 84,028 | — | |||||||||||||||
Loss on extinguishment of debt | 39,059 | — | |||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||
Other assets | 596 | (6,924) | |||||||||||||||
Accrued interest | 28,675 | (219) | |||||||||||||||
Deferred revenue | (69,982) | (43,600) | |||||||||||||||
Other liabilities | 3,740 | 3,692 | |||||||||||||||
Net cash provided by operating activities | 318,497 | 262,942 | |||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Investments in leases - financing receivables | (847,159) | — | |||||||||||||||
Investments in loans | (50,343) | — | |||||||||||||||
Investments in leases - direct financing and sales-type | — | (970,763) | |||||||||||||||
Principal repayments of lease financing receivables | 868 | — | |||||||||||||||
Capitalized transaction costs | (1,084) | (1,105) | |||||||||||||||
Investments in short-term investments | — | (97,586) | |||||||||||||||
Maturities of short-term investments | 59,474 | 520,877 | |||||||||||||||
Proceeds from sale of land | — | 1,044 | |||||||||||||||
Acquisition of property and equipment | (2,187) | (1,481) | |||||||||||||||
Net cash used in investing activities | (840,431) | (549,014) | |||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Proceeds from offering of common stock, net | 1,476,717 | 1,165,008 | |||||||||||||||
Proceeds from February 2020 Senior Unsecured Notes | 2,500,000 | — | |||||||||||||||
Redemption of Second Lien Notes | (537,538) | — | |||||||||||||||
Repurchase of stock for tax withholding | (206) | — | |||||||||||||||
Debt issuance costs | (57,784) | (5,371) | |||||||||||||||
Distributions to non-controlling interest | (4,083) | (4,042) | |||||||||||||||
Dividends paid | (276,529) | (234,418) | |||||||||||||||
Net cash provided by financing activities | 3,100,577 | 921,177 | |||||||||||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 453,568 | $ | 387,487 | |||
Adjustments to reconcile net income to cash flows provided by operating activities: | |||||||
Direct financing and sales-type lease adjustments | (2,295 | ) | (39,119 | ) | |||
Stock-based compensation | 3,821 | 1,482 | |||||
Depreciation | 2,948 | 2,757 | |||||
Amortization of debt issuance costs and original issue discount | 18,180 | 4,477 | |||||
Loss on impairment | — | 12,334 | |||||
Loss on extinguishment of debt | — | 23,040 | |||||
Change in operating assets and liabilities: | |||||||
Other assets | (5,952 | ) | (19,609 | ) | |||
Accrued interest | 9,761 | 2,077 | |||||
Deferred revenue | (43,355 | ) | (67,416 | ) | |||
Other liabilities | 523 | 21,007 | |||||
Net cash provided by operating activities | 437,199 | 328,517 | |||||
Cash flows from investing activities | |||||||
Investments in direct financing and sales-type leases | (1,530,578 | ) | (507,795 | ) | |||
Capitalized transaction costs | (2,004 | ) | (3,442 | ) | |||
Investments in short-term investments | (440,353 | ) | (421,434 | ) | |||
Maturities of short-term investments | 618,463 | 100,758 | |||||
Proceeds from sale of land | 1,044 | 186 | |||||
Acquisition of property and equipment | (2,429 | ) | (744 | ) | |||
Net cash used in investing activities | (1,355,857 | ) | (832,471 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from offering of common stock, net | 1,164,360 | 1,307,119 | |||||
Payment of Term Loan B Facility | — | (100,000 | ) | ||||
Payment of Revolving Credit Facility | — | (300,000 | ) | ||||
Payment of Second Lien Notes | — | (290,058 | ) | ||||
Debt issuance costs | (7,727 | ) | (1,117 | ) | |||
Distributions to non-controlling interest | (6,053 | ) | (7,819 | ) | |||
Dividends paid | (366,859 | ) | (156,296 | ) | |||
Net cash provided by financing activities | 783,721 | 451,829 | |||||
Net decrease in cash, cash equivalents and restricted cash | (134,937 | ) | (52,125 | ) | |||
Cash, cash equivalents and restricted cash, beginning of period | 598,447 | 197,406 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 463,510 | $ | 145,281 | |||
Supplemental cash flow information: | |||||||
Cash paid for interest | $ | 148,992 | $ | 150,407 | |||
Cash paid for income taxes | $ | 2,100 | $ | 1,174 | |||
Supplemental non-cash investing and financing activity: | |||||||
Dividends declared, not paid | $ | 137,149 | $ | 106,356 | |||
Right-of-use asset and lease liability | $ | 19,821 | $ | — | |||
Deferred transaction costs payable | $ | 5,982 | $ | — | |||
Debt issuance costs payable | $ | 28,923 | $ | — | |||
Transfer of investments in operating leases to land | $ | — | $ | 22,189 |
Net increase in cash, cash equivalents and restricted cash | 2,578,643 | 635,105 | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 1,101,893 | 598,447 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 3,680,536 | $ | 1,233,552 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 113,974 | $ | 105,484 | |||||||
Cash paid for income taxes | $ | — | $ | 1,500 | |||||||
Supplemental non-cash investing and financing activity: | |||||||||||
Dividends declared, not paid | $ | 158,767 | $ | 132,539 | |||||||
Lease liabilities arising from obtaining right-of-use assets | $ | — | $ | 11,133 | |||||||
Deferred transaction costs payable | $ | 2,305 | $ | 4,454 | |||||||
Equity issuance costs payable | $ | 1,040 | $ | 650 | |||||||
Debt issuance costs payable | $ | — | $ | 5,783 |
(In thousands) | September 30, 2019 | September 30, 2018 | |||||
Cash and cash equivalents | $ | 431,423 | $ | 145,223 | |||
Restricted cash | 32,087 | 58 | |||||
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | $ | 463,510 | $ | 145,281 |
(In thousands) | June 30, 2020 | June 30, 2019 | |||||||||
Cash and cash equivalents | $ | 1,680,536 | $ | 1,205,335 | |||||||
Restricted cash | 2,000,000 | 28,217 | |||||||||
Total cash, cash equivalents and restricted cash shown in the Statement of Cash Flows | $ | 3,680,536 | $ | 1,233,552 |
(In thousands) | September 30, 2019 | December 31, 2018 | (In thousands) | June 30, 2020 | December 31, 2019 | |||||||||||||
Minimum lease payments receivable under direct financing and sales-type leases (1) | $ | 30,696,914 | $ | 27,285,943 | Minimum lease payments receivable under direct financing and sales-type leases (1) | $ | 31,006,569 | $ | 31,460,712 | |||||||||
Estimated residual values of leased property (not guaranteed) | 2,472,977 | 2,135,312 | Estimated residual values of leased property (not guaranteed) | 2,525,469 | 2,525,469 | |||||||||||||
Gross investment in direct financing and sales-type leases | 33,169,891 | 29,421,255 | Gross investment in direct financing and sales-type leases | 33,532,038 | 33,986,181 | |||||||||||||
Unamortized initial direct costs | 40,100 | 22,822 | Unamortized initial direct costs | 42,712 | 42,819 | |||||||||||||
Less: Unearned income | (22,754,091 | ) | (20,528,030 | ) | Less: Unearned income | (22,846,758) | (23,294,755) | |||||||||||
Investment in direct financing and sales-type leases, net | 10,455,900 | 8,916,047 | ||||||||||||||||
Investment in operating leases | 1,086,658 | 1,086,658 | ||||||||||||||||
Total Investments in leases, net | 11,542,558 | 10,002,705 | ||||||||||||||||
Less: Allowance for credit losses | Less: Allowance for credit losses | (355,336) | — | |||||||||||||||
Investments in leases - direct financing and sales-type, net | Investments in leases - direct financing and sales-type, net | 10,372,656 | 10,734,245 | |||||||||||||||
Investments in leases - operating | Investments in leases - operating | 1,086,658 | 1,086,658 | |||||||||||||||
Investments in leases - financing receivables, net | Investments in leases - financing receivables, net | 812,636 | — | |||||||||||||||
Total investments in leases, net | Total investments in leases, net | 12,271,950 | 11,820,903 | |||||||||||||||
Investments in loans, net | Investments in loans, net | 49,876 | — | |||||||||||||||
Land | 94,711 | 95,789 | Land | 94,711 | 94,711 | |||||||||||||
Total Real estate portfolio | $ | 11,637,269 | $ | 10,098,494 | Total Real estate portfolio | $ | 12,416,537 | $ | 11,915,614 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | (In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||
Income from direct financing and sales-type leases | $ | 206,001 | $ | 189,938 | $ | 603,300 | $ | 554,293 | ||||||||||||||||||||||||||||||||||||||||||
Income from operating leases (1) | 10,913 | 12,209 | 32,740 | 36,627 | ||||||||||||||||||||||||||||||||||||||||||||||
Income from direct financing and sales-type leases, excluding contingent rent (1) | Income from direct financing and sales-type leases, excluding contingent rent (1) | $ | 223,809 | $ | 201,549 | $ | 448,004 | $ | 397,299 | |||||||||||||||||||||||||||||||||||||||||
Income from operating leases (2) | Income from operating leases (2) | 10,913 | 10,914 | 21,826 | 21,827 | |||||||||||||||||||||||||||||||||||||||||||||
Income from lease financing receivables (1) (3) | Income from lease financing receivables (1) (3) | 15,924 | — | 27,944 | — | |||||||||||||||||||||||||||||||||||||||||||||
Total revenue, excluding contingent rent | Total revenue, excluding contingent rent | 250,646 | 212,463 | 497,774 | 419,126 | |||||||||||||||||||||||||||||||||||||||||||||
Contingent rent (1) | Contingent rent (1) | 86 | — | 143 | — | |||||||||||||||||||||||||||||||||||||||||||||
Total lease revenue | 216,914 | 202,147 | 636,040 | 590,920 | Total lease revenue | 250,732 | 212,463 | 497,917 | 419,126 | |||||||||||||||||||||||||||||||||||||||||
Direct financing and sales-type lease adjustment (2) | 2,494 | (13,007 | ) | (2,295 | ) | (39,117 | ) | |||||||||||||||||||||||||||||||||||||||||||
Non-cash adjustment (4) | Non-cash adjustment (4) | 3,809 | (2,277) | 7,063 | (4,789) | |||||||||||||||||||||||||||||||||||||||||||||
Total contractual lease revenue | $ | 219,408 | $ | 189,140 | $ | 633,745 | $ | 551,803 | Total contractual lease revenue | $ | 254,541 | $ | 210,186 | $ | 504,980 | $ | 414,337 |
Minimum Lease Payments (1) (2) | |||||||||||||||||||||||||||||||||||||||||||||||
Investments in Leases | |||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Minimum Lease Payments (1) | (In thousands) | Direct Financing and Sales-Type | Operating | Financing Receivables | Total | |||||||||||||||||||||||||||||||||||||||||
2019 (remaining) | $ | 230,606 | |||||||||||||||||||||||||||||||||||||||||||||
2020 | 928,949 | ||||||||||||||||||||||||||||||||||||||||||||||
2020 (remaining) | 2020 (remaining) | $ | 456,152 | $ | 21,827 | $ | 32,940 | $ | 510,919 | ||||||||||||||||||||||||||||||||||||||
2021 | 935,124 | 2021 | 916,720 | 43,653 | 66,484 | 1,026,857 | |||||||||||||||||||||||||||||||||||||||||
2022 | 945,502 | 2022 | 927,351 | 43,653 | 67,149 | 1,038,153 | |||||||||||||||||||||||||||||||||||||||||
2023 | 960,116 | 2023 | 942,285 | 43,653 | 68,128 | 1,054,066 | |||||||||||||||||||||||||||||||||||||||||
2024 | 972,078 | 2024 | 954,569 | 43,653 | 68,212 | 1,066,434 | |||||||||||||||||||||||||||||||||||||||||
2025 | 2025 | 954,765 | 43,653 | 68,212 | 1,066,630 | ||||||||||||||||||||||||||||||||||||||||||
Thereafter | 27,168,734 | Thereafter | 25,854,727 | 1,171,362 | 1,983,840 | 29,009,929 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 32,141,109 | Total | $ | 31,006,569 | $ | 1,411,454 | $ | 2,354,965 | $ | 34,772,988 | ||||||||||||||||||||||||||||||||||||
Weighted Average Lease Term (2) | Weighted Average Lease Term (2) | 32.5 | 32.3 | 34.6 | 32.7 |
($ In thousands) | ||||||
Lease Provision (1) | Non-CPLV Lease Agreement and Joliet Lease Agreement | CPLV Lease Agreement | HLV Lease Agreement | |||
Initial Term | 15 years | 15 years | 15 years | |||
Renewal Terms | Four, five-year terms | Four, five-year terms | Four, five-year terms | |||
Initial Base Rent (2) | $493,925 | $200,000 | $87,400 | |||
Current Base Rent (3) | $501,019 | $204,358 | $88,274 | |||
Escalator commencement | Lease year two | Lease year two | Lease year two | |||
Escalator (4) | Lease years 2-5 - 1.5% Lease Years 6-15 - Consumer price index subject to 2% floor | Consumer price index subject to 2% floor | Lease years 2-5 - 1% Lease Years 6-15 - Consumer price index subject to 2% floor | |||
EBITDAR to Rent Ratio floor (5) | 1.2x commencing lease year 8 | 1.7x commencing lease year 8 | 1.6x commencing lease year 6 | |||
Variable Rent commencement/reset | Lease years 8 and 11 | Lease years 8 and 11 | Lease years 8 and 11 | |||
Variable Rent split (6) | Lease years 8-10 - 70% Base Rent and 30% Variable Rent Lease years 11-15- 80% Base Rent and 20% Variable Rent | 80% Base rent and 20% Variable rent | 80% Base rent and 20% Variable rent | |||
Variable Rent percentage (6) | 4% | 4% | 4% |
($ In thousands) | Non-CPLV Lease Agreement and Joliet Lease Agreement | Regional Master Lease Agreement and Joliet Lease Agreement | CPLV Lease Agreement | HLV Lease Agreement | Las Vegas Master Lease Agreement | |||||||||||||||||||||||||||
Lease Provision (1) | Prior to Amendment | As Amended | Prior to Amendment | Prior to Amendment | As Amended | |||||||||||||||||||||||||||
Initial Term (2) | 15 years | 18 years | 15 years | 15 years | 18 years | |||||||||||||||||||||||||||
Initial Term maturity (2) | 10/31/2032 | 7/31/2035 | 10/31/2032 | 12/31/2032 | 7/31/2035 | |||||||||||||||||||||||||||
Renewal Terms | NaN, five-year terms | NaN, five-year terms | NaN, five-year terms | NaN, five-year terms | NaN, five-year terms | |||||||||||||||||||||||||||
Current annual rent (3) | $508,534 | $662,534 | $207,745 | $89,157 | $395,401 | |||||||||||||||||||||||||||
Escalator (4) | Lease years 2-5 - 1.5% Lease years 6-15 - Consumer price index (“CPI”) subject to 2% floor | Lease years 2-5 - 1.5% Lease years 6-end of term - CPI subject to 2.0% floor | > 2% / Change in CPI | Lease years 2-5 - 1% Lease years 6-15 - > 2% floor / change in CPI | > 2% / change in CPI | |||||||||||||||||||||||||||
EBITDAR to Rent Ratio floor (5) | 1.2x commencing lease year 8 | None | 1.7x commencing lease year 8 | 1.6x commencing lease year 6 | None | |||||||||||||||||||||||||||
Variable Rent adjustment | Year 8: 70% base rent / 30% variable rent Year 11: 80% base rent / 20% variable rent | Year 8: 70% base rent / 30% variable rent Years 11 & 16: 80% base rent / 20% variable rent | Years 8 & 11: 80% base rent / 20% variable rent | Year 8 & 11: 80% base rent / 20% variable rent | Years 8, 11 & 16: 80% base rent / 20% variable rent | |||||||||||||||||||||||||||
Variable Rent adjustment calculation (6) | 4% of revenue increase/decrease: Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 | 4% of revenue increase/decrease: Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 Year 16: Avg. of years 13-15 less avg. of years 8-10 | 4% of revenue increase/decrease: Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 | 4% of revenue increase/decrease: Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 | 4% of revenue increase/decrease: Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 Year 16: Avg. of years 13-15 less avg. of years 8-10 |
($ In thousands) | ($ In thousands) | |||||||||||||||||
Lease Provision | Margaritaville Lease Agreement | Greektown Lease Agreement | Lease Provision | Margaritaville Lease Agreement | Greektown Lease Agreement | |||||||||||||
Initial term | 15 years | 15 years | Initial term | 15 years | 15 years | |||||||||||||
Renewal terms | Four, five-year terms | Four, five-year terms | Renewal terms | NaN, five-year terms | NaN, five-year terms | |||||||||||||
Building base rent | $17,200 | $42,800 | ||||||||||||||||
Escalation commencement | Lease year two | Lease year two | ||||||||||||||||
Current annual rent (1) | Current annual rent (1) | $23,544 | $55,556 | |||||||||||||||
Escalation commencement (2) | Escalation commencement (2) | Lease year two | Lease year four | |||||||||||||||
Escalation | 2% of Building base rent, subject to the EBITDAR to rent ratio floor | 2% of Building base rent, subject to the EBITDAR to rent ratio floor | Escalation | 2% of Building base rent, subject to the net revenue to rent ratio floor | 2% of Building base rent, subject to the net revenue to rent ratio floor | |||||||||||||
EBITDAR to rent ratio floor (1) | 1.9x commencing lease year two | 1.85x commencing lease year two | ||||||||||||||||
Land base rent (2) | $3,000 | $6,400 | ||||||||||||||||
Performance to rent ratio floor (2) | Performance to rent ratio floor (2) | 6.1x net revenue commencing lease year two | Net revenue ratio to be mutually agreed upon prior to the commencement of lease year four | |||||||||||||||
Percentage rent (3) | $3,000 (fixed for lease year one and two) | $6,400 (fixed for lease year one and two) | Percentage rent (3) | $3,000 (fixed for lease year one and two) | $6,384 (fixed for lease year one and two) | |||||||||||||
Percentage rent reset | Lease year three and each and every other lease year thereafter | Lease year three and each and every other lease year thereafter | Percentage rent reset | Lease year three and each and every other lease year thereafter | Lease year three and each and every other lease year thereafter | |||||||||||||
Percentage rent multiplier | The product of (i) 4% and (ii) the excess (if any) of (a) the average annual net revenue of a trailing two-year period preceding such reset year over (b) a threshold amount (defined as 50% of LTM net revenues prior to acquisition) | The product of (i) 4% and (ii) the excess (if any) of (a) the average annual net revenue of a trailing two-year period preceding such reset year over (b) a threshold amount (defined as 50% of LTM net revenues prior to acquisition) | Percentage rent multiplier | The product of (i) 4% and (ii) the excess (if any) of (a) the average annual net revenue of a trailing two-year period preceding such reset year over (b) a threshold amount (defined as 50% of LTM net revenues prior to acquisition) | The product of (i) 4% and (ii) the excess (if any) of (a) the average annual net revenue of a trailing two-year period preceding such reset year over (b) a threshold amount (defined as 50% of LTM net revenues prior to acquisition) | |||||||||||||
Total current rent (4) | $23,200 | $55,600 |
($ In thousands) | ||||||||
Lease Provision | Term | |||||||
Initial term | 15 years | |||||||
Renewal terms | NaN, five-year terms | |||||||
Current base rent(1) | $42,750 | |||||||
Escalator commencement | Lease year two | |||||||
Escalator (2) | Lease years 2-4 - 1.5% Lease | |||||||
Variable rent commencement/reset | Lease year 8 | |||||||
Variable rent split (3) | 80% | |||||||
Variable rent percentage (3) | 4% |
($ In thousands) | ||||||||
Lease Provision | Term | |||||||
Initial term | 15 years | |||||||
Renewal terms | NaN, five-year terms | |||||||
Current annual rent (1) | $25,000 | |||||||
Escalator commencement | Lease year two | |||||||
Escalator (2) | Lease years 2-3 - 1.0% Lease years 4-15 - The greater of 1.25% or the change in CPI | |||||||
Net revenue to rent ratio floor | 7.5x commencing lease year six - if the coverage ratio is below the stated amount the escalator will be reduced to 0.75% | |||||||
Variable rent commencement/reset | Lease year 8 and 11 | |||||||
Variable rent split (3) | 80% Base Rent and 20% Variable Rent | |||||||
Variable rent percentage (3) | 4% |
($ In thousands) | ||||||||
Lease Provision | Term | |||||||
Initial term | 20 years | |||||||
Renewal terms | NaN, five-year terms | |||||||
Current annual rent (1) | $65,880 | |||||||
Escalator commencement | Lease year three | |||||||
Escalator (2) | Lease years 3-4 - 1.0% Lease years 5-7 - 1.5% Lease years 8-15 - The greater of 1.5% or the change in CPI capped at 2.5% | |||||||
Net revenue to rent ratio floor | 4.9x in any lease year (commencing in lease year 6) - if the coverage ratio is below the stated amount, there is no escalation in rent for such lease year | |||||||
Variable rent commencement/reset | Lease year 8, 11 and 16 | |||||||
Variable rent split (3) | 80% Base Rent and 20% Variable Rent | |||||||
Variable rent percentage (3) | 4% |
Provision | ||||||||||||||||||||
Yearly minimum expenditure | 1% of net revenues (1) | 1% of net revenues for CPLV (commencing in 2022 with respect to HLV) (1) | ||||||||||||||||||
Rolling three-year minimum(2) | $ | $84 million | ||||||||||||||||||
Initial minimum capital expenditure | N/A | $171 million (2017 - 2021) |
Provision | Penn National Lease Agreements | Hard Rock Cincinnati Lease Agreement | Century Portfolio Lease Agreement | JACK Cleveland/Thistledown Lease Agreement | ||||||||||||||||||||||
Yearly minimum expenditure | 1% of net revenues based on rolling four-year basis | 1% of net revenues | 1% of net gaming revenues (1) | Initial minimum of $30 million (2) Thereafter - 1% of net revenues on a rolling three-year basis |
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands, except for %) | Amortized Cost | Allowance | Net Investment | Allowance as a % of Amortized Cost | |||||||||||||||||||||||||||||||||||||
Investments in leases - direct financing and sales-type | $ | 10,727,992 | $ | (355,336) | $ | 10,372,656 | 3.31 | % | |||||||||||||||||||||||||||||||||
Investments in leases - financing receivables | 850,253 | (37,617) | 812,636 | 4.42 | % | ||||||||||||||||||||||||||||||||||||
Investments in loans | 50,313 | (437) | 49,876 | 0.87 | % | ||||||||||||||||||||||||||||||||||||
Totals | $ | 11,628,558 | $ | (393,390) | $ | 11,235,168 | 3.38 | % |
January 1, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands, except for %) | Amortized Cost | Allowance | Net Investment | Allowance as a % of Amortized Cost | |||||||||||||||||||||||||||||||||||||
Investments in leases - direct financing and sales-type | $ | 10,734,245 | $ | (309,362) | $ | 10,424,883 | 2.88 | % | |||||||||||||||||||||||||||||||||
Investments in leases - financing receivables | — | — | — | — | % | ||||||||||||||||||||||||||||||||||||
Investments in loans | — | — | — | — | % | ||||||||||||||||||||||||||||||||||||
Totals | $ | 10,734,245 | $ | (309,362) | $ | 10,424,883 | 2.88 | % |
(In thousands) | Six Months Ended June 30, 2020 | |||||||
Beginning Balance December 31, 2019 | $ | — | ||||||
Initial allowance upon adoption | 309,362 | |||||||
Initial allowance from current period acquisitions | 22,158 | |||||||
Current period change in credit allowance | 61,870 | |||||||
Write-offs | — | |||||||
Recoveries | — | |||||||
Ending Balance June 30, 2020 | $ | 393,390 |
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Ba2 | Ba3 | B1 | B2 | B3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in leases - direct financing, sales-type and financing receivable and investments in loans | $ | — | $ | 561,116 | $ | 9,886,007 | $ | 900,566 | $ | 280,869 | $ | 11,628,558 |
January 1, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Ba2 | Ba3 | B1 | B2 | B3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in leases - direct financing, sales-type and financing receivable and investments in loans | $ | 1,527,776 | $ | — | $ | 8,926,229 | $ | 280,240 | $ | — | $ | 10,734,245 |
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Property and equipment used in operations, net | $ | 70,274 | $ | 70,406 | |||||||
Other receivables | 56,656 | 60,111 | |||||||||
Right of use asset | 17,815 | 17,738 | |||||||||
Debt financing costs | 10,205 | 14,575 | |||||||||
Deferred acquisition costs | 9,492 | 11,134 | |||||||||
Sales-type sub-leases | 8,629 | 8,688 | |||||||||
Tenant receivables | 3,001 | — | |||||||||
Prepaid expenses | 1,140 | 3,252 | |||||||||
Interest receivable | 307 | 1,626 | |||||||||
Other | 3,042 | 1,108 | |||||||||
Total other assets | $ | 180,561 | $ | 188,638 |
(In thousands) | September 30, 2019 | December 31, 2018 | |||||
Property and equipment used in operations, net | $ | 70,994 | $ | 71,513 | |||
Debt issuance costs | 27,868 | 6,190 | |||||
Right of use assets | 19,732 | — | |||||
Deferred acquisition costs | 9,217 | 7,062 | |||||
Other | 6,581 | 1,253 | |||||
Interest receivable | 2,510 | 886 | |||||
Prepaid expenses | 1,018 | 3,060 | |||||
Tenant receivable for property taxes | — | 25,586 | |||||
Total other assets | $ | 137,920 | $ | 115,550 |
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Land and land improvements | $ | 59,117 | $ | 59,346 | |||||||
Buildings and improvements | 14,679 | 14,805 | |||||||||
Furniture and equipment | 6,457 | 4,523 | |||||||||
Total property and equipment used in operations | 80,253 | 78,674 | |||||||||
Less: accumulated depreciation | (9,979) | (8,268) | |||||||||
Total property and equipment used in operations, net | $ | 70,274 | $ | 70,406 |
(In thousands) | September 30, 2019 | December 31, 2018 | |||||
Land and land improvements | $ | 59,293 | $ | 58,573 | |||
Buildings and improvements | 14,666 | 14,572 | |||||
Furniture and equipment | 4,420 | 2,805 | |||||
Total property and equipment used in operations | 78,379 | 75,950 | |||||
Less: accumulated depreciation | (7,385 | ) | (4,437 | ) | |||
Total property and equipment used in operations, net | $ | 70,994 | $ | 71,513 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Depreciation expense | $ | 1,000 | $ | 929 | $ | 2,948 | $ | 2,757 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Depreciation expense | $ | 1,213 | $ | 1,018 | $ | 2,080 | $ | 1,948 |
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||
Derivative liability | $ | 117,265 | $ | 65,078 | |||||||
Lease liability | 17,815 | 17,738 | |||||||||
Other accrued expenses | 12,373 | 21,023 | |||||||||
Finance sub-lease liabilities | 8,643 | 8,688 | |||||||||
Accrued payroll and other compensation | 3,367 | 7,369 | |||||||||
Deferred income taxes | 3,342 | 3,382 | |||||||||
Accounts payable | 841 | 640 | |||||||||
Total other liabilities | $ | 163,646 | $ | 123,918 |
(In thousands) | September 30, 2019 | December 31, 2018 | |||||
Derivative liability | $ | 77,116 | $ | 22,124 | |||
Other accrued expenses | 40,790 | 30,951 | |||||
Lease liabilities | 19,732 | — | |||||
Accrued payroll and other compensation | 4,621 | 4,934 | |||||
Deferred income taxes | 3,515 | 3,340 | |||||
Accounts payable | 1,307 | 1,057 | |||||
Total other liabilities | $ | 147,081 | $ | 62,406 |
($ in thousands) | September 30, 2019 | |||||||||||
Description of Debt | Final Maturity | Interest Rate | Face Value | Carrying Value(1) | ||||||||
VICI PropCo Senior Secured Credit Facilities | ||||||||||||
Revolving Credit Facility (2) | 2024 | L + 2.00% | $ | — | $ | — | ||||||
Term Loan B Facility (3) | 2024 | L + 2.00% | 2,100,000 | 2,076,993 | ||||||||
Second Lien Notes (4) | 2023 | 8.00% | 498,480 | 498,480 | ||||||||
CPLV Debt | ||||||||||||
CPLV CMBS Debt (5) | 2022 | 4.36% | 1,550,000 | 1,550,000 | ||||||||
Total Debt | $ | 4,148,480 | $ | 4,125,473 |
($ in thousands) | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Description of Debt | Final Maturity | Interest Rate | Face Value | Carrying Value(1) | ||||||||||||||||||||||||||||||||||||||||
VICI PropCo Senior Secured Credit Facilities | ||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility (2) | 2024 | L + 2.00% | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Term Loan B Facility (3) | 2024 | L + 1.75% | 2,100,000 | 2,078,545 | ||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Notes (4) | ||||||||||||||||||||||||||||||||||||||||||||
2025 Notes | 2025 | 3.500% | 750,000 | 739,165 | ||||||||||||||||||||||||||||||||||||||||
2026 Notes | 2026 | 4.250% | 1,250,000 | 1,231,692 | ||||||||||||||||||||||||||||||||||||||||
2027 Notes | 2027 | 3.750% | 750,000 | 738,899 | ||||||||||||||||||||||||||||||||||||||||
2029 Notes | 2029 | 4.625% | 1,000,000 | 984,930 | ||||||||||||||||||||||||||||||||||||||||
2030 Notes | 2030 | 4.125% | 1,000,000 | 984,901 | ||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 6,850,000 | $ | 6,758,132 |
($ in thousands) | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Description of Debt | Final Maturity | Interest Rate | Face Value | Carrying Value(1) | ||||||||||||||||||||||||||||||||||||||||
VICI PropCo Senior Secured Credit Facilities | ||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility (2) | 2024 | L + 2.00% | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||
Term Loan B Facility (3) | 2024 | L + 2.00% | 2,100,000 | 2,076,962 | ||||||||||||||||||||||||||||||||||||||||
Second Lien Notes (5) | 2023 | 8.00% | 498,480 | 498,480 | ||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Notes (4) | ||||||||||||||||||||||||||||||||||||||||||||
2026 Notes | 2026 | 4.250% | 1,250,000 | 1,231,227 | ||||||||||||||||||||||||||||||||||||||||
2029 Notes | 2029 | 4.625% | 1,000,000 | 984,894 | ||||||||||||||||||||||||||||||||||||||||
Total Debt | $ | 4,848,480 | $ | 4,791,563 |
($ in thousands) | December 31, 2018 | |||||||||||
Description of Debt | Final Maturity | Interest Rate | Face Value | Carrying Value(1) | ||||||||
VICI PropCo Senior Secured Credit Facilities | ||||||||||||
Revolving Credit Facility (2) | 2022 | L + 2.00% | $ | — | $ | — | ||||||
Term Loan B Facility (3) | 2024 | L + 2.00% | 2,100,000 | 2,073,784 | ||||||||
Second Lien Notes (4) | 2023 | 8.00% | 498,480 | 498,480 | ||||||||
CPLV Debt | ||||||||||||
CPLV CMBS Debt (5) | 2022 | 4.36% | 1,550,000 | 1,550,000 | ||||||||
Total Debt | $ | 4,148,480 | $ | 4,122,264 |
(In thousands) | Future Minimum Payments | |||||||
2020 (remaining) | $ | — | ||||||
2021 | — | |||||||
2022 | 10,000 | |||||||
2023 | 22,000 | |||||||
2024 | 2,068,000 | |||||||
2025 | 750,000 | |||||||
Thereafter | 4,000,000 | |||||||
Total minimum repayments | $ | 6,850,000 |
(In thousands) | Future Minimum Payments | |||
2019 (remaining) | $ | — | ||
2020 | — | |||
2021 | — | |||
2022 | 1,560,000 | |||
2023 | 520,480 | |||
2024 | 2,068,000 | |||
Total minimum repayments | $ | 4,148,480 |
($ in thousands) | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instrument | Number of Instruments | Fixed Rate | Notional | Index | Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | 4 | 2.8297% | $ | 1,500,000 | USD LIBOR | April 22, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | 2 | 2.3802% | $ | 500,000 | USD LIBOR | January 22, 2021 |
($ in thousands) | September 30, 2019 | |||||||||||
Instrument | Number of Instruments | Fixed Rate | Notional | Index | Maturity | |||||||
Interest Rate Swaps | 4 | 2.8297% | $ | 1,500,000 | USD LIBOR | April 22, 2023 | ||||||
Interest Rate Swaps | 2 | 2.3802% | $ | 500,000 | USD LIBOR | January 22, 2021 |
($ in thousands) | December 31, 2018 | |||||||||||
Instrument | Number of Instruments | Fixed Rate | Notional | Index | Maturity | |||||||
Interest Rate Swaps | 4 | 2.8297% | $ | 1,500,000 | USD LIBOR | April 22, 2023 |
($ in thousands) | December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Instrument | Number of Instruments | Fixed Rate | Notional | Index | Maturity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | 4 | 2.8297% | $ | 1,500,000 | USD LIBOR | April 22, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | 2 | 2.3802% | $ | 500,000 | USD LIBOR | January 22, 2021 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Unrealized gain (loss) recorded in other comprehensive income | $ | 951 | $ | (30,688) | $ | (52,187) | $ | (47,879) | |||||||||||||||||||||||||||
Interest recorded in interest expense | $ | 11,114 | $ | 1,280 | $ | 16,694 | $ | 2,430 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Unrealized (loss) gain recorded in other comprehensive income | $ | (7,113 | ) | $ | 10,105 | $ | (54,992 | ) | $ | 5,465 | |||||
Interest recorded in interest expense | $ | 2,386 | $ | 2,823 | $ | 4,816 | $ | 4,235 |
June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||
Short-term investments (1) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments - interest rate swaps (2) | $ | 117,265 | $ | — | $ | 117,265 | $ | — |
September 30, 2019 | |||||||||||||||
(In thousands) | Fair Value | ||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | |||||||||||||||
Short-term investments (1) | $ | 342,767 | $ | — | $ | 342,767 | $ | — | |||||||
Financial liabilities: | |||||||||||||||
Derivative instruments - interest rate swaps (2) | $ | 77,116 | $ | — | $ | 77,116 | $ | — |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||||||||
Short-term investments (1) | $ | 59,474 | $ | — | $ | 59,474 | $ | — | |||||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||||||||
Derivative instruments - interest rate swaps (2) | $ | 65,078 | $ | — | $ | 65,078 | $ | — |
December 31, 2018 | |||||||||||||||
(In thousands) | Fair Value | ||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | |||||||||||||||
Short-term investments (1) | $ | 520,877 | $ | — | $ | 520,877 | $ | — | |||||||
Financial liabilities: | |||||||||||||||
Derivative instruments - interest rate swaps (2) | $ | 22,124 | $ | — | $ | 22,124 | $ | — |
September 30, 2019 | December 31, 2018 | ||||||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 431,423 | $ | 431,423 | $ | 577,883 | $ | 577,883 | |||||||
Restricted cash | 32,087 | 32,087 | 20,564 | 20,564 | |||||||||||
Financial liabilities: | |||||||||||||||
Debt (1) | |||||||||||||||
Revolving Credit Facility | $ | — | $ | — | $ | — | $ | — | |||||||
Term Loan B Facility | 2,076,993 | 2,102,625 | 2,073,784 | 2,016,000 | |||||||||||
Second Lien Notes | 498,480 | 544,589 | 498,480 | 535,866 | |||||||||||
CPLV CMBS Debt | 1,550,000 | 1,599,803 | 1,550,000 | 1,539,040 |
September 30, 2018 | |||||||||||||||
(In thousands) | Fair Value | ||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | |||||||||||||||
Land (1) | $ | 19,019 | $ | — | $ | 7,419 | $ | 11,600 |
Significant Assumptions ($ in per sq. ft.) | |||||||||||||||
Asset Type | Fair Value | Valuation Technique | Range | Weighted Average | Square Footage | ||||||||||
Land | $ | 11,600 | Sales comparison | $0.50 - $5.00 | $ | 2.90 | 4,002,908 |
June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||||||||
Investments in leases - financing receivables (1) | $ | 812,636 | $ | 843,300 | $ | — | $ | — | |||||||||||||||||||||||||||
Investments in loans (1) | 49,876 | 50,000 | — | — | |||||||||||||||||||||||||||||||
Cash and cash equivalents | 1,680,536 | 1,680,536 | 1,101,893 | 1,101,893 | |||||||||||||||||||||||||||||||
Restricted cash | 2,000,000 | 2,000,000 | — | — | |||||||||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||||||||
Debt (2) | |||||||||||||||||||||||||||||||||||
Revolving Credit Facility | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||
Term Loan B Facility | 2,078,545 | 1,974,000 | 2,076,962 | 2,110,500 | |||||||||||||||||||||||||||||||
Second Lien Notes | — | — | 498,480 | 538,358 | |||||||||||||||||||||||||||||||
2025 Notes | 739,165 | 705,000 | — | — | |||||||||||||||||||||||||||||||
2026 Notes | 1,231,692 | 1,193,750 | 1,231,227 | 1,287,500 | |||||||||||||||||||||||||||||||
2027 Notes | 738,899 | 708,750 | — | — | |||||||||||||||||||||||||||||||
2029 Notes | 984,930 | 975,000 | 984,894 | 1,045,000 | |||||||||||||||||||||||||||||||
2030 Notes | 984,901 | 950,000 | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Rent expense | $ | 421 | $ | 547 | $ | 1,200 | $ | 1,140 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Rent expense | $ | 505 | $ | 414 | $ | 1,003 | $ | 779 | |||||||||||||||||||||||||||
Contractual rent | $ | 345 | $ | 318 | $ | 668 | $ | 636 |
(In thousands) | Lease Commitments | |||||||
2020 (remaining) | $ | 902 | ||||||
2021 | 1,790 | |||||||
2022 | 1,808 | |||||||
2023 | 1,827 | |||||||
2024 | 1,847 | |||||||
2025 | 1,908 | |||||||
Thereafter | 19,074 | |||||||
Total minimum lease commitments | $ | 29,156 | ||||||
Discounting factor | 11,341 | |||||||
Lease liability | 17,815 |
(In thousands) | Lease Commitments | |||
2019 (remaining) | $ | 319 | ||
2020 | 1,042 | |||
2021 | 933 | |||
2022 | 951 | |||
2023 | 970 | |||
2024 | 990 | |||
Thereafter | 15,905 | |||
Total minimum lease commitments | $ | 21,110 | ||
Discounting factor | 10,066 | |||
Lease liability | $ | 11,044 |
(In thousands) | June 30, 2020 | December 31, 2019 | |||||||||||||||||||||
Others assets (sales-type sub-lease) | $ | 8,629 | $ | 8,688 | |||||||||||||||||||
Other liabilities (finance sub-lease liability) | 8,643 | 8,688 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Rental income and expense (1) | $ | 138 | $ | 81 | $ | 277 | $ | 132 | |||||||||||||||||||||||||||
Contractual rent | $ | 154 | $ | 88 | $ | 308 | $ | 144 |
(In thousands) | Lease Commitments | |||||||
2020 (remaining) | $ | 308 | ||||||
2021 | 616 | |||||||
2022 | 616 | |||||||
2023 | 616 | |||||||
2024 | 616 | |||||||
2025 | 616 | |||||||
Thereafter | 18,653 | |||||||
Total minimum lease commitments | $ | 22,041 | ||||||
Discounting factor | 13,398 | |||||||
Finance sub-lease liability | $ | 8,643 |
Six Months Ended June 30, | ||||||||||||||||||||
Common Stock Outstanding | 2020 | 2019 | ||||||||||||||||||
Beginning Balance January 1, (1) | 461,004,742 | 404,729,616 | ||||||||||||||||||
Issuance of common stock in primary follow-on offerings | — | 50,000,000 | ||||||||||||||||||
Issuance of common stock upon physical settlement of forward sale agreements (1) | 65,000,000 | — | ||||||||||||||||||
Issuance of common stock under the at-the-market offering program | 7,500,000 | 6,107,633 | ||||||||||||||||||
Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures (2) | 163,013 | 167,297 | ||||||||||||||||||
Ending Balance June 30, | 533,667,755 | 461,004,546 |
Nine Months Ended September 30, | ||||||
Common Stock Outstanding | 2019 | 2018 | ||||
Beginning Balance December 31 (1) | 404,729,616 | 300,278,938 | ||||
Issuance of common stock in initial public offering | — | 69,575,000 | ||||
Issuance of common stock in primary follow-on offerings (2) | 50,000,000 | — | ||||
Issuance of common stock under the at-the-market offering program | 6,107,633 | — | ||||
Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures (3) | 168,496 | 374,530 | ||||
Ending Balance September 30 | 461,005,745 | 370,228,468 |
Nine Months Ended September 30, 2019 | ||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||
March 14, 2019 | March 29, 2019 | April 11, 2019 | January 1, 2019 - March 31, 2019 | $ | 0.2875 | |||||
June 13, 2019 | June 28, 2019 | July 12, 2019 | April 1, 2019 - June 30, 2019 | $ | 0.2875 | |||||
September 12, 2019 | September 27, 2019 | October 10, 2019 | July 1, 2019 - September 30, 2019 | $ | 0.2975 |
Nine Months Ended September 30, 2018 | ||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||
March 15, 2018 (1) | March 29, 2018 | April 13, 2018 | February 5, 2018 - March 31, 2018 | $ | 0.16 | |||||
June 14, 2018 | June 28, 2018 | July 13, 2018 | April 1, 2018 - June 30, 2018 | $ | 0.2625 | |||||
September 17, 2018 | September 28, 2018 | October 11, 2018 | July 1, 2018 - September 30, 2018 | $ | 0.2875 |
Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||||||||||||||||||||||||||||||||||||||||||
March 12, 2020 | March 31, 2020 | April 9, 2020 | January 1, 2020 - March 31, 2020 | $ | 0.2975 | |||||||||||||||||||||||||||||||||||||||||||||
June 11, 2020 | June 30, 2020 | July 10, 2020 | April 1, 2020 - June 30, 2020 | $ | 0.2975 | |||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||||||||||||||||||||||||||||||||||||||||||
March 14, 2019 | March 29, 2019 | April 11, 2019 | January 1, 2019 - March 31, 2019 | $ | 0.2875 | |||||||||||||||||||||||||||||||||||||||||||||
June 13, 2019 | June 28, 2019 | July 12, 2019 | April 1, 2019 - June 30, 2019 | $ | 0.2875 | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Determination of shares: | |||||||||||||||||||||||||||||||||||
Weighted-average shares of common stock outstanding | 489,012 | 412,310 | 477,095 | 409,040 | |||||||||||||||||||||||||||||||
Assumed conversion of restricted stock (1) | 198 | 321 | 232 | 363 | |||||||||||||||||||||||||||||||
Assumed settlement of forward sale agreements | 3 | 190 | 4,326 | 70 | |||||||||||||||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 489,213 | 412,821 | 481,652 | 409,473 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||
Determination of shares: | |||||||||||
Weighted-average common shares outstanding | 460,666 | 369,935 | 426,438 | 360,997 | |||||||
Assumed conversion of restricted stock | 370 | 192 | 263 | 45 | |||||||
Assumed settlement of Forward Sale Agreements | 4,735 | — | 1,665 | — | |||||||
Diluted weighted-average common shares outstanding | 465,772 | 370,127 | 428,366 | 361,042 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 229,402 | $ | 152,049 | $ | 205,390 | $ | 302,898 | |||||||||||||||||||||||||||
Weighted-average shares of common stock outstanding | 489,012 | 412,310 | 477,095 | 409,040 | |||||||||||||||||||||||||||||||
Basic EPS | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | |||||||||||||||||||||||||||
Diluted: | |||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 229,402 | $ | 152,049 | $ | 205,390 | $ | 302,898 | |||||||||||||||||||||||||||
Diluted weighted-average shares of common stock outstanding | 489,213 | 412,821 | 481,652 | 409,473 | |||||||||||||||||||||||||||||||
Diluted EPS | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 |
Basic and Diluted Earnings Per Share | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Basic: | |||||||||||||||
Net income attributable to common stockholders | $ | 144,435 | $ | 129,912 | $ | 447,333 | $ | 381,078 | |||||||
Weighted-average common shares outstanding | 460,666 | 369,935 | 426,438 | 360,997 | |||||||||||
Basic EPS | $ | 0.31 | $ | 0.35 | $ | 1.05 | $ | 1.06 | |||||||
Diluted: | |||||||||||||||
Net income attributable to common stockholders | $ | 144,435 | $ | 129,912 | $ | 447,333 | $ | 381,078 | |||||||
Diluted weighted-average common shares outstanding | 465,772 | 370,127 | 428,366 | 361,042 | |||||||||||
Diluted EPS | $ | 0.31 | $ | 0.35 | $ | 1.04 | $ | 1.06 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Stock-based compensation expense | $ | 1,404 | $ | 623 | $ | 3,821 | $ | 1,482 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
Stock-based compensation expense | $ | 2,012 | $ | 1,366 | $ | 3,361 | $ | 2,417 |
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | ||||||||||||
(In thousands, except per share data) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||
Outstanding at beginning of period | 398 | $ | 19.60 | 124 | $ | 15.61 | |||||||
Granted | 338 | 22.03 | 383 | 17.05 | |||||||||
Vested | (94 | ) | 19.44 | (31 | ) | 20.01 | |||||||
Forfeited | (12 | ) | 20.78 | (2 | ) | 20.03 | |||||||
Canceled | — | — | — | — | |||||||||
Outstanding at end of period | 630 | $ | 20.90 | 474 | $ | 16.47 |
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||||
Outstanding at beginning of period | 601 | $ | 21.16 | 398 | $ | 19.60 | |||||||||||||||||||||||||||||
Granted | 421 | 19.51 | 336 | 22.03 | |||||||||||||||||||||||||||||||
Vested | (116) | 21.08 | (93) | 19.41 | |||||||||||||||||||||||||||||||
Forfeited | (25) | 21.21 | (12) | 20.78 | |||||||||||||||||||||||||||||||
Canceled | — | — | — | — | |||||||||||||||||||||||||||||||
Outstanding at end of period | 881 | $ | 20.38 | 629 | $ | 20.90 |
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Real Property Business | Golf Course Business | VICI Consolidated | Real Property Business | Golf Course Business | VICI Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 252,567 | $ | 5,335 | $ | 257,902 | $ | 212,463 | $ | 8,283 | $ | 220,746 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 308,622 | 14 | 308,636 | 203,077 | 2,418 | 205,495 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (77,693) | — | (77,693) | (54,819) | — | (54,819) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 231,935 | 17 | 231,952 | 152,186 | 2,494 | 154,680 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (257) | (52) | (309) | — | (553) | (553) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 231,678 | (35) | 231,643 | 152,186 | 1,941 | 154,127 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 31 | 1,182 | 1,213 | 2 | 1,016 | 1,018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 16,188,235 | $ | 89,399 | $ | 16,277,634 | $ | 12,423,049 | $ | 98,997 | $ | 12,522,046 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 7,186,916 | $ | 16,307 | $ | 7,203,223 | $ | 4,434,057 | $ | 15,566 | $ | 4,449,623 |
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Real Property Business | Golf Course Business | VICI Consolidated | Real Property Business | Golf Course Business | VICI Consolidated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 501,268 | $ | 11,635 | $ | 512,903 | $ | 419,126 | $ | 15,622 | $ | 434,748 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | 395,555 | 1,102 | 396,657 | 402,623 | 4,738 | 407,361 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (153,786) | — | (153,786) | (108,405) | — | (108,405) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (39,059) | — | (39,059) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 209,222 | 1,119 | 210,341 | 303,276 | 4,851 | 308,127 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | (514) | (249) | (763) | — | (1,074) | (1,074) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 208,708 | 870 | 209,578 | 303,276 | 3,777 | 307,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 54 | 2,026 | 2,080 | 5 | 1,943 | 1,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 16,188,235 | $ | 89,399 | $ | 16,277,634 | $ | 12,423,049 | $ | 98,997 | $ | 12,522,046 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 7,186,916 | $ | 16,307 | $ | 7,203,223 | $ | 4,434,057 | $ | 15,566 | $ | 4,449,623 |
Three Months Ended September 30, 2019 | Three Months Ended September 30, 2018 | |||||||||||||||||||||||
(In thousands) | Real Property Business | Golf Course Business | VICI Consolidated | Real Property Business | Golf Course Business | VICI Consolidated | ||||||||||||||||||
Revenues (1) | $ | 216,914 | $ | 5,599 | $ | 222,513 | $ | 227,294 | $ | 5,393 | $ | 232,687 | ||||||||||||
Operating income | 209,202 | (822 | ) | 208,380 | 183,857 | 243 | 184,100 | |||||||||||||||||
Interest expense | (68,531 | ) | — | (68,531 | ) | (54,051 | ) | — | (54,051 | ) | ||||||||||||||
Loss on extinguishment of debt | — | — | — | — | — | — | ||||||||||||||||||
Income before income taxes | 147,275 | (736 | ) | 146,539 | 131,833 | 243 | 132,076 | |||||||||||||||||
Income tax (expense) benefit | (187 | ) | 163 | (24 | ) | — | (52 | ) | (52 | ) | ||||||||||||||
Net income | 147,088 | (573 | ) | 146,515 | 131,833 | 191 | 132,024 | |||||||||||||||||
Depreciation | 3 | 997 | 1,000 | 3 | 926 | 929 | ||||||||||||||||||
Total assets | $ | 12,481,892 | $ | 99,574 | $ | 12,581,466 | $ | 10,487,016 | $ | 81,485 | $ | 10,568,501 |
Nine Months Ended September 30, 2019 | Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
(In thousands) | Real Property Business | Golf Course Business | VICI Consolidated | Real Property Business | Golf Course Business | VICI Consolidated | ||||||||||||||||||
Revenues (1) | $ | 636,040 | $ | 21,221 | $ | 657,261 | $ | 652,242 | $ | 19,696 | $ | 671,938 | ||||||||||||
Operating income | 611,824 | 3,917 | 615,741 | 558,160 | 4,112 | 562,272 | ||||||||||||||||||
Interest expense | (176,936 | ) | — | (176,936 | ) | (158,365 | ) | — | (158,365 | ) | ||||||||||||||
Loss on extinguishment of debt | — | — | — | (23,040 | ) | — | (23,040 | ) | ||||||||||||||||
Income before income taxes | 450,552 | 4,114 | 454,666 | 384,259 | 4,112 | 388,371 | ||||||||||||||||||
Income tax expense | (187 | ) | (911 | ) | (1,098 | ) | — | (884 | ) | (884 | ) | |||||||||||||
Net income | 450,365 | 3,203 | 453,568 | 384,259 | 3,228 | 387,487 | ||||||||||||||||||
Depreciation | 8 | 2,940 | 2,948 | 5 | 2,752 | 2,757 | ||||||||||||||||||
Total assets | $ | 12,481,892 | $ | 99,574 | $ | 12,581,466 | $ | 10,487,016 | $ | 81,485 | $ | 10,568,501 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2020 | 2019 | Variance | 2020 | 2019 | Variance | |||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||
Income from direct financing and sales-type leases | $ | 223,895 | $ | 201,549 | $ | 22,346 | $ | 448,147 | $ | 397,299 | $ | 50,848 | |||||||||||||||||||||||||||||||||||
Income from operating leases | 10,913 | 10,914 | (1) | 21,826 | 21,827 | (1) | |||||||||||||||||||||||||||||||||||||||||
Income from lease financing receivables and loans | 17,026 | — | 17,026 | 29,869 | — | 29,869 | |||||||||||||||||||||||||||||||||||||||||
Other income | 733 | — | 733 | 1,426 | — | 1,426 | |||||||||||||||||||||||||||||||||||||||||
Golf operations | 5,335 | 8,283 | (2,948) | 11,635 | 15,622 | (3,987) | |||||||||||||||||||||||||||||||||||||||||
Revenues | 257,902 | 220,746 | 37,156 | 512,903 | 434,748 | 78,155 | |||||||||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 7,498 | 6,518 | 980 | 14,513 | 12,743 | 1,770 | |||||||||||||||||||||||||||||||||||||||||
Depreciation | 1,213 | 1,018 | 195 | 2,080 | 1,948 | 132 | |||||||||||||||||||||||||||||||||||||||||
Other expenses | 736 | — | 736 | 1,439 | — | 1,439 | |||||||||||||||||||||||||||||||||||||||||
Golf operations | 4,139 | 4,848 | (709) | 8,509 | 8,940 | (431) | |||||||||||||||||||||||||||||||||||||||||
Change in allowance for credit losses | (65,480) | — | (65,480) | 84,028 | — | 84,028 | |||||||||||||||||||||||||||||||||||||||||
Transaction and acquisition expenses | 1,160 | 2,867 | (1,707) | 5,677 | 3,756 | 1,921 | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | (50,734) | 15,251 | (65,985) | 116,246 | 27,387 | 88,859 | |||||||||||||||||||||||||||||||||||||||||
Operating income | 308,636 | 205,495 | 103,141 | 396,657 | 407,361 | (10,704) | |||||||||||||||||||||||||||||||||||||||||
Interest expense | (77,693) | (54,819) | (22,874) | (153,786) | (108,405) | (45,381) | |||||||||||||||||||||||||||||||||||||||||
Interest income | 1,009 | 4,004 | (2,995) | 6,529 | 9,171 | (2,642) | |||||||||||||||||||||||||||||||||||||||||
Loss from extinguishment of debt | — | — | — | (39,059) | — | (39,059) | |||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 231,952 | 154,680 | 77,272 | 210,341 | 308,127 | (97,786) | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | (309) | (553) | 244 | (763) | (1,074) | 311 | |||||||||||||||||||||||||||||||||||||||||
Net income | 231,643 | 154,127 | 77,516 | 209,578 | 307,053 | (97,475) | |||||||||||||||||||||||||||||||||||||||||
Less: Net income attributable to non-controlling interest | (2,241) | (2,078) | (163) | (4,188) | (4,155) | (33) | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 229,402 | $ | 152,049 | $ | 77,353 | $ | 205,390 | $ | 302,898 | $ | (97,508) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | |||||||||||||||||
Revenues | |||||||||||||||||||||||
Income from direct financing and sales-type leases | $ | 206,001 | $ | 189,938 | $ | 16,063 | $ | 603,300 | $ | 554,293 | $ | 49,007 | |||||||||||
Income from operating leases | 10,913 | 12,209 | (1,296 | ) | 32,740 | 36,627 | (3,887 | ) | |||||||||||||||
Tenant reimbursement of property taxes | — | 25,147 | (25,147 | ) | — | 61,322 | (61,322 | ) | |||||||||||||||
Golf operations | 5,599 | 5,393 | 206 | 21,221 | 19,696 | 1,525 | |||||||||||||||||
Revenues | 222,513 | 232,687 | (10,174 | ) | 657,261 | 671,938 | (14,677 | ) | |||||||||||||||
Operating expenses | |||||||||||||||||||||||
General and administrative | 6,717 | 5,678 | 1,039 | 19,460 | 20,145 | (685 | ) | ||||||||||||||||
Depreciation | 1,000 | 929 | 71 | 2,948 | 2,757 | 191 | |||||||||||||||||
Property taxes | — | 25,423 | (25,423 | ) | — | 61,598 | (61,598 | ) | |||||||||||||||
Golf operations | 5,423 | 4,223 | 1,200 | 14,363 | 12,832 | 1,531 | |||||||||||||||||
Loss on impairment | — | 12,334 | (12,334 | ) | — | 12,334 | (12,334 | ) | |||||||||||||||
Transaction and acquisition expenses | 993 | — | 993 | 4,749 | — | 4,749 | |||||||||||||||||
Total operating expenses | 14,133 | 48,587 | (34,454 | ) | 41,520 | 109,666 | �� | (68,146 | ) | ||||||||||||||
Operating income | 208,380 | 184,100 | 24,280 | 615,741 | 562,272 | 53,469 | |||||||||||||||||
Interest expense | (68,531 | ) | (54,051 | ) | (14,480 | ) | (176,936 | ) | (158,365 | ) | (18,571 | ) | |||||||||||
Interest income | 6,690 | 2,027 | 4,663 | 15,861 | 7,504 | 8,357 | |||||||||||||||||
Loss from extinguishment of debt | — | — | — | — | (23,040 | ) | 23,040 | ||||||||||||||||
Income before income taxes | 146,539 | 132,076 | 14,463 | 454,666 | 388,371 | 66,295 | |||||||||||||||||
Income tax expense | (24 | ) | (52 | ) | 28 | (1,098 | ) | (884 | ) | (214 | ) | ||||||||||||
Net income | 146,515 | 132,024 | 14,491 | 453,568 | 387,487 | 66,081 | |||||||||||||||||
Less: Net income attributable to non-controlling interest | (2,080 | ) | (2,112 | ) | 32 | (6,235 | ) | (6,409 | ) | 174 | |||||||||||||
Net income attributable to common stockholders | $ | 144,435 | $ | 129,912 | $ | 14,523 | $ | 447,333 | $ | 381,078 | $ | 66,255 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | (In thousands) | 2020 | 2019 | Variance | 2020 | 2019 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing revenue | $ | 216,914 | $ | 202,147 | $ | 14,767 | $ | 636,040 | $ | 590,920 | $ | 45,120 | Leasing revenue | $ | 250,732 | $ | 212,463 | $ | 38,269 | $ | 497,917 | $ | 419,126 | $ | 78,791 | |||||||||||||||||||||||||||||||||||||||||||||
Tenant reimbursement of property taxes | — | 25,147 | (25,147 | ) | — | 61,322 | (61,322 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from loans | Income from loans | 1,102 | — | 1,102 | 1,925 | — | 1,925 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 733 | — | 733 | 1,426 | — | 1,426 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Golf operations | 5,599 | 5,393 | 206 | 21,221 | 19,696 | 1,525 | Golf operations | 5,335 | 8,283 | (2,948) | 11,635 | 15,622 | (3,987) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 222,513 | $ | 232,687 | $ | (10,174 | ) | $ | 657,261 | $ | 671,938 | $ | (14,677 | ) | Total revenue | $ | 257,902 | $ | 220,746 | $ | 37,156 | $ | 512,903 | $ | 434,748 | $ | 78,155 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | (In thousands) | 2020 | 2019 | Variance | 2020 | 2019 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from direct financing and sales-type leases | $ | 206,001 | $ | 189,938 | $ | 16,063 | $ | 603,300 | $ | 554,293 | $ | 49,007 | Income from direct financing and sales-type leases | $ | 223,895 | $ | 201,549 | $ | 22,346 | $ | 448,147 | $ | 397,299 | $ | 50,848 | |||||||||||||||||||||||||||||||||||||||||||||
Income from operating leases (1) | 10,913 | 12,209 | (1,296 | ) | 32,740 | 36,627 | (3,887 | ) | Income from operating leases (1) | 10,913 | 10,914 | (1) | 21,826 | 21,827 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total lease revenue | 216,914 | 202,147 | 14,767 | 636,040 | 590,920 | 45,120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct financing and sales-type lease adjustment (2) | 2,494 | (13,007 | ) | 15,501 | (2,295 | ) | (39,117 | ) | 36,822 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total contractual lease revenue | $ | 219,408 | $ | 189,140 | $ | 30,268 | $ | 633,745 | $ | 551,803 | $ | 81,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from lease financing receivables (2) | Income from lease financing receivables (2) | 15,924 | — | 15,924 | 27,944 | — | 27,944 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total leasing revenue | Total leasing revenue | 250,732 | 212,463 | 38,269 | 497,917 | 419,126 | 78,791 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cash adjustment (3) | Non-cash adjustment (3) | 3,809 | (2,277) | 6,086 | 7,063 | (4,789) | 11,852 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total contractual leasing revenue | Total contractual leasing revenue | $ | 254,541 | $ | 210,186 | $ | 44,355 | $ | 504,980 | $ | 414,337 | $ | 90,643 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2019 | 2018 | Variance | 2019 | 2018 | Variance | (In thousands) | 2020 | 2019 | Variance | 2020 | 2019 | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | $ | 6,717 | $ | 5,678 | $ | 1,039 | $ | 19,460 | $ | 20,145 | $ | (685 | ) | General and administrative | $ | 7,498 | $ | 6,518 | $ | 980 | $ | 14,513 | $ | 12,743 | $ | 1,770 | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation | 1,000 | 929 | 71 | 2,948 | 2,757 | 191 | Depreciation | 1,213 | 1,018 | 195 | 2,080 | 1,948 | 132 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property taxes | — | 25,423 | (25,423 | ) | — | 61,598 | (61,598 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 736 | — | 736 | 1,439 | — | 1,439 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Golf operations | 5,423 | 4,223 | 1,200 | 14,363 | 12,832 | 1,531 | Golf operations | 4,139 | 4,848 | (709) | 8,509 | 8,940 | (431) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on impairment | — | 12,334 | (12,334 | ) | — | 12,334 | (12,334 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in allowance for credit losses | Change in allowance for credit losses | (65,480) | — | (65,480) | 84,028 | — | 84,028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transaction and acquisition expenses | 993 | — | 993 | 4,749 | — | 4,749 | Transaction and acquisition expenses | 1,160 | 2,867 | (1,707) | 5,677 | 3,756 | 1,921 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 14,133 | $ | 48,587 | $ | (34,454 | ) | $ | 41,520 | $ | 109,666 | $ | (68,146 | ) | Total operating expenses | $ | (50,734) | $ | 15,251 | $ | (65,985) | $ | 116,246 | $ | 27,387 | $ | 88,859 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share data and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 229,402 | $ | 152,049 | $ | 205,390 | $ | 302,898 | ||||||||||||||||||||||||||||||||||||
Real estate depreciation | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
FFO | 229,402 | 152,049 | 205,390 | 302,898 | ||||||||||||||||||||||||||||||||||||||||
Non-cash leasing and financing adjustments attributable to common stockholders | 3,869 | (2,210) | 7,179 | (4,656) | ||||||||||||||||||||||||||||||||||||||||
Non-cash change in allowance for credit losses attributable to common stockholders | (65,323) | — | 84,049 | — | ||||||||||||||||||||||||||||||||||||||||
Transaction and acquisition expenses | 1,160 | 2,867 | 5,677 | 3,756 | ||||||||||||||||||||||||||||||||||||||||
Non-cash stock-based compensation | 2,012 | 1,366 | 3,362 | 2,417 | ||||||||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs and original issue discount | 4,837 | 1,899 | 11,136 | 3,364 | ||||||||||||||||||||||||||||||||||||||||
Other depreciation | 1,183 | 1,016 | 2,026 | 1,943 | ||||||||||||||||||||||||||||||||||||||||
Capital expenditures | (883) | (212) | (1,645) | (1,403) | ||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | — | — | 39,059 | — | ||||||||||||||||||||||||||||||||||||||||
AFFO | 176,257 | 156,775 | 356,233 | 308,319 | ||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 71,847 | 48,916 | 136,121 | 95,870 | ||||||||||||||||||||||||||||||||||||||||
Income tax expense | 309 | 553 | 763 | 1,074 | ||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 248,413 | $ | 206,244 | $ | 493,117 | $ | 405,263 | ||||||||||||||||||||||||||||||||||||
Net income per common share | ||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | ||||||||||||||||||||||||||||||||||||
FFO per common share | ||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.47 | $ | 0.37 | $ | 0.43 | $ | 0.74 | ||||||||||||||||||||||||||||||||||||
AFFO per common share | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.38 | $ | 0.75 | $ | 0.75 | ||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.38 | $ | 0.74 | $ | 0.75 | ||||||||||||||||||||||||||||||||||||
Weighted average number of shares of common stock outstanding | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 489,012,165 | 412,309,577 | 477,094,795 | 409,040,025 | ||||||||||||||||||||||||||||||||||||||||
Diluted | 489,213,427 | 412,821,400 | 481,652,482 | 409,473,202 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(In thousands, except share data and per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income attributable to common stockholders | $ | 144,435 | $ | 129,912 | $ | 447,333 | $ | 381,078 | |||||||
Real estate depreciation | — | — | — | — | |||||||||||
FFO | 144,435 | 129,912 | 447,333 | 381,078 | |||||||||||
Direct financing and sales-type lease adjustments attributable to common stockholders | 2,563 | (12,876 | ) | (2,093 | ) | (38,652 | ) | ||||||||
Transaction and acquisition expenses | 993 | — | 4,749 | — | |||||||||||
Non-cash stock-based compensation | 1,404 | 623 | 3,821 | 1,482 | |||||||||||
Amortization of debt issuance costs and original issue discount | 14,816 | 1,495 | 18,180 | 4,477 | |||||||||||
Other depreciation | 997 | 926 | 2,940 | 2,752 | |||||||||||
Capital expenditures | (588 | ) | (187 | ) | (1,991 | ) | (744 | ) | |||||||
Loss on impairment | — | 12,334 | — | 12,334 | |||||||||||
Loss on extinguishment of debt | — | — | — | 23,040 | |||||||||||
AFFO | 164,620 | 132,227 | 472,939 | 385,767 | |||||||||||
Interest expense, net | 47,025 | 50,529 | 142,895 | 146,385 | |||||||||||
Income tax expense | 24 | 52 | 1,098 | 884 | |||||||||||
Adjusted EBITDA | $ | 211,669 | $ | 182,808 | $ | 616,932 | $ | 533,036 | |||||||
Net income per common share | |||||||||||||||
Basic | $ | 0.31 | $ | 0.35 | $ | 1.05 | $ | 1.06 | |||||||
Diluted | $ | 0.31 | $ | 0.35 | $ | 1.04 | $ | 1.06 | |||||||
FFO per common share | |||||||||||||||
Basic | $ | 0.31 | $ | 0.35 | $ | 1.05 | $ | 1.06 | |||||||
Diluted | $ | 0.31 | $ | 0.35 | $ | 1.04 | $ | 1.06 | |||||||
AFFO per common share | |||||||||||||||
Basic | $ | 0.36 | $ | 0.36 | $ | 1.11 | $ | 1.07 | |||||||
Diluted | $ | 0.35 | $ | 0.36 | $ | 1.10 | $ | 1.07 | |||||||
Weighted average number of common shares outstanding | |||||||||||||||
Basic | 460,666,295 | 369,935,055 | 426,437,889 | 360,997,358 | |||||||||||
Diluted | 465,771,668 | 370,127,185 | 428,366,146 | 361,042,203 |
(In thousands) | September 30, 2019 | ||
Cash and cash equivalents | $ | 431,423 | |
Restricted cash | 32,087 | ||
Short-term investments | 342,767 | ||
Capacity under Revolving Credit Facility (1) | 1,000,000 | ||
Total | $ | 1,806,277 |
(In thousands) | June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,680,536 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash (1)
____________________ (1)Restricted cash is solely related to funds held in escrow from the February 2020 Senior Unsecured Notes offering which was subsequently released from escrow and used to fund a portion of the purchase price of the Eldorado Transaction on July 20, 2020. (2)Subject to compliance with the financial covenants and other applicable provisions of our Revolving Credit Facility. Our short-term obligations consist primarily of regular interest payments on our debt obligations, dividends to our common stockholders, normal recurring operating expenses, recurring expenditures for corporate and administrative needs, certain lease and other contractual commitments related to our golf operations and certain non-recurring expenditures. For a list of our material contractual commitments refer to Note Our long-term obligations consist primarily of principal payments on our outstanding debt obligations. We currently have 66 Information concerning our obligations and commitments to make future payments under contracts such as our indebtedness and future minimum lease commitments under operating leases is included in the
(1) The 2025 Notes, 2026 Notes, 2027 Notes, 2029 Notes and 2030 Notes will mature on February 15, 2025, December 1, 2026, February 15, 2027, December 1, 2029 and August 15, 2030, respectively. (2) The Term Loan B Facility is subject to amortization of 1.0% of principal per annum payable in equal quarterly installments on the (3) The Revolving Credit Facility will mature on May 15, 2024. (4) Estimated interest payments on variable interest loans are based on a LIBOR rate as of June 30, 2020. On July 20, 2020, we funded the consideration payable in We believe that we have sufficient liquidity to meet our liquidity and capital resource requirements primarily through currently available cash and cash equivalents, restricted cash, All of the Lease Agreements call for an initial term of fifteen years with four, five-year tenant renewal options and are designed to provide us with a reliable and predictable long-term revenue stream. However, the COVID-19 pandemic has adversely impacted our tenants and their financial condition as all of their properties were closed for a period of time, certain properties continue to remain closed and properties that have reopened are subject to operating restrictions and continuing uncertainty as to whether they will be forced to close again in the future. In the event our tenants are unable to make all of their contractual rent payments as provided by the Lease Agreements, we believe we have sufficient liquidity from the other sources discussed 67 above to meet all of our contractual obligations for a significant period of time. Additionally, we do not have any debt maturities until 2024. For more information, refer to the risk factors set forth in Part II. Item 1A. Risk Factors herein and in our Annual Report on Form 10-K for the year ended December 31, 2019. Our cash flows from operations and our ability to access capital resources could be adversely affected due to uncertain economic factors and volatility in the financial and credit markets, including the current conditions created by the COVID-19 pandemic which has severely and adversely impacted global, national and regional economic activity and has contributed to significant volatility and negative pressure in financial markets. In particular, in connection with the ongoing COVID-19 pandemic and its impact on our tenants’ operations and financial performance we have provided certain relief under the applicable Lease Agreements to some of our tenants as more fully described above in “—Significant Activities During 2020 — JACK Lease Agreement and Loan Modification” and “—Significant Activities During 2020 — Omnibus Lease Amendment” and, as a result, we can provide no assurances that our tenants will not default on their leases or fail to make full rental payments if their businesses become challenged due to, among other things, current or future adverse economic conditions. In addition, such tenant default or failure to make full rental payments could impact our operating performance and result in us not satisfying the financial covenants applicable to our outstanding indebtedness, which could result in us not being able to incur additional debt, including the available capacity under our Revolving Credit Facility, or result in a default. Further, future or current economic conditions could impact our tenants’ ability to meet capital improvement requirements or other obligations required in our Lease Agreements that could result in a decrease in the value of our properties. Our ability to raise funds through the issuance of debt and equity securities and access to other third-party sources of capital in the future will be dependent on, among other things, uncertainties related to COVID-19 and the impact of our response and our tenants’ responses to COVID-19, general economic conditions, general market conditions for REITs, market perceptions and the trading price of our stock. We will continue to analyze which sources of capital are most advantageous to us at any particular point in time, but the capital markets may not be consistently available on terms we deem attractive, or at all. In addition, volatility in the debt capital markets and potential liquidity challenges in the banking sector resulting from the COVID-19 pandemic may increase the risk related to the pricing and availability of debt financing. Cash Flow Analysis The table below summarizes our cash flows for the
Cash Flows from Operating Activities Net cash provided by operating activities increased Cash Flows from Investing Activities Net cash used in investing activities increased 68 months ended Cash Flows from Financing Activities Net cash provided by financing activities increased During the •Net proceeds from the sale of an aggregate of $1,476.7 million of our common stock pursuant to the full physical settlement of our June 2019 Forward Sale Agreements and our at-the-market program; •Gross proceeds from our February 2020 Senior Unsecured Notes offering of $2,500.0 million; •Full redemption of the $498.5 million outstanding aggregate principal amount of our Second Lien Notes, as well as the $39.0 million Second Lien Notes Applicable Premium plus fees; •Dividend payments of $276.5 million; •Debt issuance costs of $57.8 million; and •Distributions of $4.1 million to non-controlling interest During the six months ended June 30, 2019 the primary sources and uses of cash from financing activities included: •Net proceeds from the sale of an aggregate of •Dividend payments of •Debt issuance costs of
Distributions of Capital Expenditures As described in our leases, capital expenditures for properties under our Lease Agreements are the responsibility our tenants. Refer to Note 5 - Real Estate Portfolio in the Notes to our Financial Statements for further information of the obligations of our tenants under the Lease Agreements. Debt Activity During On On January 24, 2020, VICI PropCo entered into 69 Covenants Our debt obligations are subject to certain customary financial and protective covenants that restrict our ability to incur additional debt, sell certain asset and restrict certain payments, among other things. In addition, these covenants are subject to a number of important exceptions and qualifications, including, with respect to the restricted payments covenant, the ability to make unlimited restricted payments to maintain our REIT status. At The subsidiaries of the Operating Partnership that do not guarantee the Senior Unsecured Notes accounted for: (i) 6.1% of the Operating Partnership’s revenue (or 5.9% of our consolidated revenue) for the six months ended June 30, 2020 and (ii) 4.1% of the Operating Partnership’s total assets (or 4.1% of our consolidated total assets) as of June 30, 2020. Distribution Policy We intend to make regular quarterly distributions to holders of shares of our common stock. Dividends declared (on a per share basis) during the
Federal income tax law requires that a REIT distribute annually at least 90% of its REIT taxable income (with certain adjustments), determined without regard to the dividends paid deduction and excluding any net capital gains, and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gains. In addition, a REIT will be required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions it makes in a calendar year are less than the sum of 85% of its ordinary income, 95% of its capital gain net income and 100% of its undistributed income from prior years. We intend to continue to make distributions to our stockholders to comply with the REIT requirements of Critical Accounting Policies and Estimates A complete discussion of our critical accounting policies and estimates is included in our Annual Report on Form 10-K for the Allowance for Credit Losses On January 1, 2020, we adopted ASC 326 - “Credit Losses” which requires that we measure and record current expected credit losses (“CECL”) for the majority of our investments, the scope of which includes our Investments in We 70 effective interest rate. We then record a CECL allowance equal to the Expected losses within our cash flows are determined by estimating the probability of default (“PD”) and To the extent we have contractual commitments to extend credit, such as those under revolving credit facilities, we are required to estimate a CECL allowance related to these future funding commitments. The Write-offs are deducted from Refer to Item 3. Quantitative and Qualitative Disclosures About Market Risk We face market risk exposure in the form of interest rate risk. This market risk arises from our debt obligations. Our primary market risk exposure is interest rate risk with respect to our indebtedness. At At Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act, is recorded, processed, summarized and reported within the specified time periods, and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Our management has evaluated, under the supervision and with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) as of the end of the period covered by this report. Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report. 71 Changes in Internal Control Over Financial Reporting There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended 72 PART II. OTHER INFORMATION Item 1. Legal Proceedings In the ordinary course of business, from time to time, we may be subject to legal claims and administrative proceedings. As of Item 1A. Risk Factors A description of certain factors that may affect our future results and risk factors is set forth in our Annual Report on Form 10-K for the year ended December 31, Risks Relating to Us Following Completion of the Eldorado Transaction and Our Pending Transactions We are and will be significantly dependent on Caesars, Penn National, Hard Rock, JACK Entertainment and Century Casinos, and their respective subsidiaries unless or until we substantially diversify our portfolio, and an event that has a material adverse effect on any of their businesses, financial condition, liquidity, results of operations or prospects could have a material adverse effect on our business, financial condition, liquidity, results of operations and prospects. We depend on our tenants to operate the properties that we own in a manner that generates revenues sufficient to allow the tenants to meet their obligations to us. Currently, substantially all of our revenue comes from our leases with subsidiaries of Caesars, Penn National, Hard Rock, JACK Entertainment and Century Casinos. Because the master leases are triple-net leases, in addition to the rent these significant tenants will owe us, we will depend on these significant tenants to pay substantially all insurance, taxes, utilities and maintenance and repair expenses in connection with these leased properties and to indemnify, defend and hold us harmless from and against various claims, litigation and liabilities arising in connection with their businesses. There can be no assurance that our tenants will have sufficient assets, income or access to financing to enable them to satisfy their payment and other obligations under their leases with us, or that the applicable guarantor will be able to satisfy its guarantee of the applicable tenant’s obligations. Our tenants rely on the properties they or their respective subsidiaries own and/or operate for income to satisfy their obligations, including their debt service requirements and lease and other payments due to us or others. In addition, Caesars will rely on our properties, the Caesars Forum Convention Center and their other operations to satisfy their payment obligations under the Forum Convention Center Mortgage Loan. As a result of the COVID-19 pandemic, state governments and/or regulatory authorities issued various directives, mandates, orders or similar actions resulting in the closure of non-essential businesses, which included substantially all of our tenants’ operations, including at our properties and the Caesars Forum Convention Center, although in all jurisdictions such measures have been lifted or modified, resulting in the resumption of certain of our tenants’ operations, including the reopening of most of our properties. If income at these properties were to decline for any reason, including as a result of the COVID-19 pandemic, or if a tenant’s debt service requirements were to increase for any reason or if their creditworthiness were to become impaired for other reasons, a tenant or the applicable guarantor may become unable or unwilling to satisfy its payment and other obligations under their leases or other agreements with us. The inability or unwillingness of a significant tenant to meet its payment or other obligations under a lease or other payment obligation with us could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects, including our ability to make distributions to our stockholders. In addition, following completion of the Eldorado Transaction, Caesars is our largest tenant. Caesars has publicly disclosed that it expects to achieve synergies following completion of the Eldorado/Caesars Merger. As a result of the COVID-19 pandemic or otherwise, Caesars may be unable to achieve such synergies during the time period that it expects to do so, or at all, and a failure to achieve these synergies may adversely affect Caesars, including its creditworthiness, and impair its ability to meet its obligations to us. Moreover, given Caesars’ significance to our business, a failure on the part of Caesars to realize expected synergies and any related improvement to its creditworthiness, or any deterioration of its creditworthiness, could materially and adversely affect us, even in the absence of a default under our agreements with Caesars. 73 Due to our dependence on rental and other payments from these significant tenants (and their respective subsidiaries) as our primary source of revenue, we may be limited in our ability to enforce our rights under the leases or other agreements with our tenants or to terminate the leases with respect to any particular property or other agreements. Failure by these significant tenants to comply with the terms of their respective leases or to comply with the gaming regulations to which the leased properties are subject could result in the termination of an applicable ground lease, requiring us to find another tenant for such property, to the extent possible, and there could be a decrease or cessation of rental payments by these significant tenants, as the case may be. In such event, we may lose our interest in a property subject to an applicable ground lease or be unable to locate a suitable, creditworthy tenant at similar rental rates or at all, which would have the effect of reducing our rental revenues and could have a material adverse effect on us. In addition, the Caesars Forum Convention Center has no operating history and will not initially generate sufficient operating cash flow to service the interest expense on the Forum Convention Center Mortgage Loan, and its operations may continue to be negatively impacted due to the COVID-19 pandemic or other factors. There can be no assurances that the Forum Convention Center Borrower will be able to fulfill its payment obligations under the Forum Convention Center Mortgage Loan, and such payment obligations are not guaranteed by Eldorado, Pre-Merger Caesars or Caesars. The failure of the Forum Convention Center Borrower to fulfill its payment obligations under the Forum Convention Center Mortgage Loan would have the effect of reducing our revenue and could have a material adverse effect on us. If Caesars declares bankruptcy and such action results in a lease being re-characterized as a disguised financing transaction in its bankruptcy proceeding, our business, results of operations, financial condition and cash flows could be materially and adversely affected. If Caesars declares bankruptcy, our business could be materially and adversely affected if a bankruptcy court re-characterizes the CPLV Additional Rent Acquisition or the HLV Additional Rent Acquisition as a disguised financing transaction. In the event of re-characterization, our claim under a lease agreement with respect to the additional rent acquired in the HLV Additional Rent Acquisition and CPLV Additional Rent Acquisition could either be secured or unsecured. Generally, the leases permit us to take steps to create and perfect a security interest in the leased property, but such attempts could be subject to challenge by the tenant or its creditors and, with respect to the CPLV Additional Rent Acquisition and the HLV Additional Rent Acquisition, there is no assurance that a court would find that portion of our claim to be secured. The bankrupt lessee and other affiliates of Caesars and their creditors under this scenario might have the ability to restructure the terms, including the amount owed to us under the lease with respect to the additional rent. If approved by the bankruptcy court, we could be bound by the new terms, and prevented from collecting such additional rent that we paid for in the CPLV Additional Rent Acquisition and HLV Additional Rent Acquisition, and our business, results of operations, financial condition and cash flows could be materially and adversely affected. Risks Related to Our Business and Operations The COVID-19 pandemic could have a material adverse impact on our business, financial condition, liquidity, results of operations and prospects, including by affecting our tenants’ operations and financial performance and global and U.S. economic activity and performance. Since being initially reported in December 2019, the outbreak of COVID-19 has spread globally and created considerable health risks in the United States and around the world, resulting in severely adversely impacted global, national and regional economic activity, and has contributed to significant volatility and negative pressure in financial markets. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, the U.S. federal government declared a national emergency concerning the COVID-19 outbreak. Several countries, including the United States, have taken steps to restrict air travel, and many state and local governments have instituted additional measures, including quarantines, states of emergency, mandatory business and school closures, “shelter-at-home” and similar orders and other restrictions on travel and large gatherings, as well as initiatives such as “social distancing” guidelines. In connection with these actions, state governments and/or regulatory authorities issued various directives, mandates, orders or similar actions that resulted in the closure of non-essential businesses, which included substantially all of our tenants’ operations, including at our properties, as well as our golf courses. While such governmental and regulatory measures have in many jurisdictions been lifted or modified, resulting in the reopening of most of our tenants’ operations, at our properties, there can be no assurance that such restrictions will not be reinstated, new restrictions will not be imposed or closures required or other developments will not take place that would further limit our tenants’ operations, including at our properties. In addition, our tenants have experienced a substantial number of cancellations and reductions in future events and reservations in connection with the uncertain duration of the COVID-19 pandemic and business closures. Following the reopening of our tenants’ businesses, they may face additional challenges with respect to restoring operations and financial performance, in particular as a result of changes in customer engagement. We expect these closures and reduced business activity will adversely 74 affect our tenants’ financial performance, and such impact could be material to us depending on the ultimate duration of the pandemic and operational restrictions affecting our tenants’ ability to restore operations following the reopening of their businesses and our properties. These closures, operational restrictions and reduced business activity could also materially and adversely affect our tenants’ ability to meet their respective financial obligations going forward, including their obligations under our leases to pay us rent and make capital expenditures, which could have a material adverse effect on our business, results of operations and liquidity. Although we cannot predict with confidence future developments with respect to our tenants’ operations at our properties, including reopening timelines or the potential for further closures or restrictions, or if and when they will return to pre-pandemic performance levels, as the duration of the pandemic and operational restrictions lengthens, our tenants’ liquidity positions may become more stressed which may cause one or more of our tenants to be unable to meet their obligations to us in full, or at all, or to otherwise seek modifications to such obligations. Any such modifications to our tenants’ obligations to us under our leases may have an adverse effect on our business. Even if our tenants are able to fulfill their obligations to us, their inability to meet their financial obligations to their creditors or other counterparties could also have a material adverse effect on our business. The financial impact of the COVID-19 pandemic, including a failure of any of our tenants to make full rental payments, or any other default by our tenants, under our Lease Agreements, could also negatively impact our or our tenants’ future compliance with financial covenants of existing and any future credit facilities and indebtedness, and result in a default and potentially an acceleration event, which non-compliance could negatively impact our or our tenants’ ability to make additional borrowings, including borrowings under our Revolving Credit Facility, issue additional indebtedness and otherwise operate our respective businesses. In addition, the outbreak has triggered an economic recession in the United States and a material global economic slowdown, which many experts predict may continue well beyond the lifting of governmental restrictions related to COVID-19 and the reopening of our tenants’ businesses and change consumer behavior, thereby negatively affecting an economic recovery in the gaming sector. Any sustained economic slowdown or recession, or the impact thereof, such as through decreased rates of employment that extend after our tenants’ businesses are permitted to reopen or broader changes in consumer behavior, may further materially and adversely affect our tenants’ financial performance and ability to meet such obligations. We cannot predict with confidence when applicable government or regulatory orders, or travel and other restrictions, will end or whether and on what timeline our tenants’ performance will meaningfully improve or return to pre-pandemic levels. In addition, due to the current volatility in the debt and equity markets, we may be unable to obtain financing for future acquisitions on satisfactory terms, or at all. Continuing disruption and instability in the global financial markets or deteriorations in credit and financing conditions may affect our access to debt and equity capital in order to fund business operations, if necessary, or address maturing liabilities on a timely basis as well as our tenants’ ability to fund their business operations, meet their obligations to us, and secure financing for any future or pending transactions. The full extent to which our business and results of operations will ultimately be affected by the COVID-19 pandemic and resulting economic slowdown or recession will largely depend on future developments, which are highly uncertain and cannot be predicted with confidence at this time, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures on our tenants, including the length of time our tenants’ operations at our properties remain closed or restricted, or close again in the future, and our tenants’ financial performance during the closure and following reopening. In addition, new information may continue to emerge concerning the severity of the COVID-19 pandemic, actions required to be undertaken to contain the COVID-19 pandemic or address its future impact, the response of the U.S. and global economies and the short- and long-term impact of the COVID-19 pandemic on our tenants’ operations at our properties, which could further materially and adversely impact our business and results and operations. The occurrence of any of the foregoing events or any other related matters could materially and adversely affect our business, financial condition, liquidity, results of operations, prospects and the value of our common stock. The immediate and long-term effects of the COVID-19 pandemic on the gaming industry could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects. The COVID-19 pandemic has had a severe and unprecedented impact on the gaming industry. Measures implemented to prevent its spread, including mandatory closure of non-essential businesses and government-imposed restrictions on social gatherings, have had a significant adverse effect on the gaming industry. As a result of these measures, gaming facilities throughout the United States, including all of our tenants’ facilities at our properties, were temporarily closed, although such measures have in many jurisdictions been lifted or modified, resulting in the resumption of most of our tenants’ operations at certain our properties. During this period, many gaming companies face additional financial uncertainty or are generating substantially reduced revenue and have sought or taken measures intended to maintain liquidity and solvency, including employee furloughs, reduced operating and capital expenditure budgets, and contractual relief or other accommodations with 75 creditors, lenders and other counterparties. There is no guarantee that existing government-imposed restrictions will be lifted in the near term, that additional government-imposed restrictions will not be implemented, or that previous restrictions, where lifted or modified, will not be reinstated. Moreover, the ultimate impact of the COVID-19 pandemic on the gaming industry, the timing and extent of government-imposed restrictions and the reopening and performance of gaming facilities is highly uncertain and cannot be predicted with confidence. Historically, economic indicators such as GDP growth, consumer confidence and employment are correlated with demand for gaming, entertainment and leisure properties, such as casinos and racetracks, and economic recessions or slowdowns have generally led to a decrease in discretionary spending on associated leisure activities. Long-term impacts of the COVID-19 pandemic, such as decreases in discretionary spending or changing consumer preferences brought about by instability in global, national and regional economic activity and financial markets as a result of the COVID-19 pandemic, could have a material adverse effect on leisure and business travel, discretionary spending and other areas of economic behavior that directly impact the gaming industry. Because we are dependent on the gaming industry, the immediate and long-term effects of the COVID-19 pandemic on the gaming industry could be material and adverse to our business, financial condition, liquidity, results of operations and prospects. Risks Related to the June 2020 Forward Sale Agreement Provisions contained in the June 2020 Forward Sale Agreement could result in substantial dilution to our earnings per share or result in substantial cash payment obligations. The forward purchaser under the June 2020 Forward Sale Agreement has the right to accelerate the June 2020 Forward Sale Agreement (with respect to all or, in certain cases, any portion of the transaction under the June 2020 Forward Sale Agreement that the forward purchaser determines is affected by an event described below) and require us to settle on a date specified by the forward purchaser if: •we declare any dividend, issue or distribution on our common stock payable in (x) cash in excess of specified amounts, (y) securities of another company that we acquire or own (directly or indirectly) as a result of a spin-off or similar transaction or (z) any other type of securities (other than our common stock), rights, warrants or other assets for payment at less than the prevailing market price; •certain ownership thresholds applicable to the forward purchaser and its affiliate are exceeded; •an event (x) is announced that, if consummated, would result in a specified extraordinary event (including certain mergers or tender offers, certain events involving our nationalization, or insolvency, or a delisting of our common shares) or (y) occurs that would constitute a delisting or change in law; or •certain other events of default or termination events occur, including, among others, any material misrepresentation made in connection with the June 2020 Forward Sale Agreement or our insolvency (each as more fully described in the June 2020 Forward Sale Agreement). The forward purchaser’s decision to exercise its right to accelerate the settlement of the June 2020 Forward Sale Agreement will be made irrespective of our interests, including our need for capital. In such cases, we could be required to issue and deliver shares of our common stock under the physical settlement provisions of the June 2020 Forward Sale Agreement, which would result in dilution to our earnings per share. We expect to physically settle the June 2020 Forward Sale Agreement and receive proceeds from the sale of those shares of our common stock upon one or more forward settlement dates no later than September 17, 2020. However, the June 2020 Forward Sale Agreement may be settled earlier in whole or in part at our option. Subject to certain conditions, we have the right to elect physical, cash or net share settlement under the June 2020 Forward Sale Agreement at any time and from time to time, in part or in full. The June 2020 Forward Sale Agreement will be physically settled by delivery of shares of our common stock, unless we elect to cash settle or net share settle the June 2020 Forward Sale Agreement. Delivery of shares of our common stock upon physical settlement (or, if we elect net share settlement, upon such settlement to the extent we are obligated to deliver shares of our common stock) will result in dilution to our earnings per share. If we elect cash settlement or net share settlement with respect to all or a portion of the shares of our common stock underlying the June 2020 Forward Sale Agreement, we expect the forward purchaser (or its affiliate) to purchase a number of shares of our common stock in secondary market transactions over an unwind period to: 76 •return shares of our common stock to securities lenders in order to unwind its hedge (after taking into consideration any shares of our common stock to be delivered by us to the forward purchaser, in the case of net share settlement); and •if applicable, in the case of net share settlement, deliver shares of our common stock to us to the extent required in settlement of the June 2020 Forward Sale Agreement. The purchase of shares of our common stock in connection with the forward purchaser or its affiliate unwinding its hedge position could cause the price of shares of our common stock to increase over such time (or reduce the amount of a decrease over such time), thereby increasing the amount of cash we would be required to pay to the forward purchaser (or decreasing the amount of cash that the forward purchaser would be required to pay us) upon a cash settlement of the June 2020 Forward Sale Agreement or increasing the number of shares of common stock we would be required to deliver to the forward purchaser (or decreasing the number of shares of common stock that the forward purchaser would be required to deliver to us) upon net share settlement of the June 2020 Forward Sale Agreement. The forward sale price that we expect to receive upon physical settlement of the June 2020 Forward Sale Agreement will be subject to adjustment on a daily basis based on a floating interest rate factor determined by reference to a specified daily rate less a spread and will be decreased by amounts related to expected dividends on our common stock during the term of the June 2020 Forward Sale Agreement. If the specified daily rate is less than the spread on any day, the interest rate factor will result in a reduction of the forward sale price for that day. As of June 16, 2020, the date of the prospectus supplement governing the offering of our common stock pursuant to the June 2020 Forward Sale Agreement, the specified daily rate was less than the spread, reducing the proceeds that we would receive upon settlement of the June 2020 Forward Sale Agreement. If the prevailing market price for our common stock during the unwind period under the June 2020 Forward Sale Agreement is above the forward sale price, in the case of cash settlement, we would pay the forward purchaser an amount per share in cash equal to the difference or, in the case of net share settlement, we would deliver to the forward purchaser a number of shares of common stock having a value equal to the difference. Thus, we could be responsible for a potentially substantial cash payment in the case of cash settlement. In case of our bankruptcy or insolvency, the June 2020 Forward Sale Agreement would automatically terminate, and we would not receive the expected proceeds from the sale of common stock under such agreement. If we institute, or a regulatory authority with jurisdiction over us institutes, or we consent to, a proceeding seeking a judgment in bankruptcy or insolvency or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or we or a regulatory authority with jurisdiction over us presents a petition for our winding-up or liquidation, or we consent to such a petition, the June 2020 Forward Sale Agreement will automatically terminate. If the June 2020 Forward Sale Agreement so terminates, we would not be obligated to deliver to the forward purchaser any shares of common stock not previously delivered, and the forward purchaser would be discharged from its obligation to pay the forward sale price per share in respect of any shares of common stock not previously settled. Therefore, to the extent that there are any shares of common stock with respect to which the June 2020 Forward Sale Agreement has not been settled at the time of the commencement of any such bankruptcy or insolvency proceedings, we would not receive the forward sale price per share in respect of those shares of common stock. The U.S. federal income tax treatment of the cash that we might receive from cash settlement of June 2020 Forward Sale Agreement is unclear and could jeopardize our ability to meet the REIT qualification requirements. In the event that we elect to settle the June 2020 Forward Sale Agreement for cash and the settlement price is below the forward sale price, we would be entitled to receive a cash payment from the forward purchaser. Under Section 1032 of the Code, generally, no gains and losses are recognized by a corporation in dealing in its own shares, including pursuant to a “securities futures contract,” as defined in the Code by reference to the Exchange Act. Although we believe that any amount received by us in exchange for our shares of common stock would qualify for the exemption under Section 1032 of the Code, because it is not entirely clear whether the June 2020 Forward Sale Agreement qualifies as a “securities futures contract,” the U.S. federal income tax treatment of any cash settlement payment we receive is uncertain. In the event that we recognize a significant gain from the cash settlement of the June 2020 Forward Sale Agreement, we might not be able to satisfy the gross income requirements applicable to REITs under the Code. If we were to fail to satisfy one or both of the gross income tests for any taxable year, we may nevertheless qualify as a REIT for such year if we were entitled to relief under certain provisions of the Code. If these relief provisions were inapplicable, we would not qualify to be taxed as a REIT. Even if these relief provisions were to apply, a tax based on the amount of the relevant REIT’s non-qualifying income would be imposed. 77 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds (a) Unregistered Sales of Equity Securities and Use of Proceeds Not applicable. (b) Use of Proceeds from Registered Securities Not applicable. (c) Issuer Purchases of Equity Securities During the three months ended Item 3.Defaults Upon Senior Securities None. Item 4.Mine Safety Disclosures Not applicable. Item 5.Other Information None. 78 Item 6.Exhibits
* Furnished herewith. 79 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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