VICI Properties (VICI) 30 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Samantha Gallagher	GC
Ed Pitoniak	CEO
John Payne	President, COO
David Kieske	CFO
Gabe Wasserman	CAO
Danny Valoy	VP of Finance
Barry Jonas	Truist Securities
Carlo Santarelli	Deutsche Bank
Daniel Adam	Loop Capital Markets
Rich Hightower	Evercore
R.J. Milligan	Raymond James
Jordan Bender	Macquarie
Stephen Grambling	Goldman Sachs
Thomas Allen	Morgan Stanley
Rich Anderson	SMBC
David Katz	Jefferies
John DeCree	Union Gaming
Peter Hermann	Baird

Call transcript

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this conference is being recorded today, April 30, 2021. the Properties. to turn Counsel Gallagher, now VICI with will call Samantha over General I

Samantha Gallagher

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

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

guidance, exercise and will, intend, filings them. identified I for financial by or condition. in impact the of the believe, Forward-looking refer SEC detailed and expect, more are could which company's as of discussion should, you should the phrases risks are caution relying a generally similar risks statements, interpreting numerous and results project Therefore, you words operating on other use to that to future such subject uncertainties.

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

Ed Pitoniak

morning, everyone. Thanks, Samantha. Good

on less point. it's also I to XX, worth consensus pre-call lot pointing answer consensus or share of Did Some but more growth was we call help a for or growth or on earnings asking out the staying call that VICI in declining. February last couldn’t the time is proper commentary of why of I the at I of course needs XX, our concerning we little loss the think steady consensus. reported in consensus again messes question QX growth case, we call and growing, XXXX and XXXX. back growth. kind QX reality may our or XX.X% XXXX earnings growth me keeping in AFFO me, Being we growth. in on by of XX.X% what for VICI we believe recall actually AFFO said February being you a the achieve release exactly. full-year This the started to be proved And for When

XX and change in in for because negative was per XX.X% in X.X% American is the with the negative is The the and the closes and use in share us, indeed behind VICI share year to with triple-net XXXX moron. an share growth that reported per REIT triple-net any word year-over-year REIT Now don’t QX XXXX XXXX. share know for grew those XXXX. year pose reporting XX REITs XXXX change act QX XXXX out that per the QX we well AFFO that period triple-net of triple-net year growth year-over- emphasizing I AFFO in Among for AFFO per X.X%. of growth highest average I American did declines achieved VICI AFFO The for growth average an change REIT want the certainty XXXX. growth more

and announced per $X.XX XXXX one XX a we moment between $X.XX to our is February calling guidance of of few that share. David reaffirm and will AFFO guidance. resource on the In for As guidance

approximately will we growth achieved midpoint, per XX%. AFFO XXXX, in year-over-year share our the As be

would share of that share approximately per declines from growth to XX%. look If period that of Take it's with XXXX, AFFO for the change compare AFFO have consensus was our growth rate percentage year XXXX. you ratio each triple-nets projected more resulting these Obviously, our to for if look we we with based the share actually who to who XXXX said the of To who Resulting you And AFFO price those to from to of the We've metric average base, heard AFFO these per the year XXXX of PEG earnings X% are ratio current you VICI. stock any per growth in the ratio AFFO share AFFO old-school earnings for consensus XX.X, PEG against XX share had again data the REITs per numbers growth multiple current at ratio's two share shows of triple-net to based ratio, We the XXXX. current less per percentage heard to one percentage These XXXX and in multiple REIT of XX value or of VICIs AFFO in our to ratio percentage average average trades per the one. range a that REIT's triple-nets multiple XXXX, reports When paying we decline total then triple-net a group, a multiple XXXX triple-net actual multiple ratio. growth XXXX PEG AFFO as per that to offset XXXX the growth AFFO you through growth the times against XX% measure available any share per you meaningful, lot AFFO It’s the guidance comparing at by period share. these measure into XX X% over in REITs ratios ratio the AFFO suggest lower in the PEG a you current of have Income traction. our growth because ratio on for AFFO PEG are of per at the triple-net group or XXXX if America's a XXXX the expected for of are to you the of is triple-net REIT. course the year as paying in is per X.X period the guidance, the ratio with guidance. in the growth our make perspective, are the make XXXX. two per AFFO to guidance the AFFO ratio PEG per there. follow XX VICI's AFFO encourage liquidity than other. lower I'll higher reach time per XXXX that PEG XXXX ratio of PEG trades AFFO yields AFFO of show XXXX our PEG AFFO for rate and of according out share AFFO mid-point would on two the versus REITs PEG projected of A growth. again XX% those rate XXXX VICI XXXX. XXXX the share per share the or period the share X.X, XXXX. to at eliminate yields expressed many so many growth earnings the calculate growth and We have a mid-point calculate multiple and XX% AFFO through mid-point multiple us measurement projected that X.X own the growth, hate means for eight show leave to has growth per a thus The has of lower period PEG to or VICI times you'll triple-net to share one. need we three rate. share we the eliminate earnings our of the the for known REITs of then for REIT To of XX growth with We yes XXXX, you of period which excluding the end eighth and our REIT which AFFO and sample other our XX up earnings AFFO factors, midpoint current percentage AFFO each to those projected

VICI to XXXX, beyond strong on XXXX confident what need at about the of We end turn a executing up robust the that. very are the stands the triple-net in we open PEG with now deal tell course call can years you that of after over flow. will opportunities second stockholders XXXX. And VICI well there as and want pipeline out about record us you. and over any ratio would to there. drivers call. in is funding to confident and group I'll other growth property for our well American year market and period likely Payne. John, you John our VICI, question of next well There acquisition to believe up our embedded will REIT sourcing, about feel the REIT How He

John Payne

Ed. Thanks, everyone. Good morning,

March AFFO The first announced of quarter Center of Sands Venetian and Resort is revenue the billion exciting X, quarter the of Vegas. $XXX Convention of be will VICI's a acquisition in our growing $X company. closing accretive XX% nearly to real-estate Las to in add per we for iconic share. very expected Expo the and million this immediately On acquisition rent this Upon annualized year by was base

the at which And investing. complex million asset incredible guarantee to by to and world-class continue investment closely capital. by great and significant successful real-estate world have checks protection. their on the is entity our in the resources The protection Las already Venetian to strip. from Quality will ultimately through gaming incentivized organization of returned center prime effective customers over of the An a generating are followed X) an of convention supported is accelerating. operations follow accretive real-estate Robust boxes X) and feet hear in an enhances Las level in grow. too undoubtedly Venetian revenue which cost property we there you discount this an recovering that to be acquiring cost Many We by business property real-estate model real-estate Vegas a profitably the square and of our vast are coverage. X top acquire location. and Vegas one many of palette rent bookings replacement meeting grow we're spread numbers X) of have rent running covenant to crucial through heard that gravity of own operators the Importantly, thrilled grade a along XXXX the

new by of gaming this geography. demand. properties Vegas stay. operating markets, in that robust growing and portfolio is bullish Many to Las models revamped very showcase strength the setting the We driven and our are In our leisure assets as consumer to on stronger consistent future to here operating forward look and model believe records meet continue we continue

operators to the our are with continued We tenant on be upside enjoying. proud roaster the deserve in there there currently They partners wish success. best-in-class them

$XX months, over sector size making gaming doubling by most our Over very deploying acquire the in the REIT billion assets past of us we've margin. the capital or XX XX portfolio the active of wide

understand to behalf nature you the opportunities business study our model of day-to-day our on ability basis. properties on our the many manage not means our or triple-net execute This operate of do supports shareholders. a and asset of As team

leading any real-estate REIT the day should VICI grow We strived tirelessly for sustainable fundamental From and portfolio. we about portfolio and working of busier see nature will behalf in we goal of to transactions sustainable while fundamental excited REITs. America's with our than diverse potential remains the acquisition executives shareholders. ever our a believe company, have this one the hospitality independent have team activity and protection. gaming be and basic in very work we risk enhancing We're tirelessly delivered we deal our creating on on real-estate create gaming accretively your consistent why is by this appropriate terms continue enhancing lumpy, are we before, the started fair to value create to principle Our successful value

discuss and results financial Now, David, we'll over turn who the our will call to guidance.

David Kieske

which touch are I'll and of built liquidity John. Thanks, the night. on detailed our the our give a and in guidance press balance financial release briefly last and fully sheet summary results we

which the pursuing to our to that to in world-class build to to quarter Venetian basis. acquire in the forward This will capital with we offering on On fund Resort acquisition. of we side stock acquisition discussed, a $X the on structure completed date sheet we per the accretive the provides Vegas all in $XX to biggest way. focus VICI sale an along our our first of leverage the sheet. of a to Venetian prior left we've may this settlement of a common of for come secure one of of of our debt March of X, the XX shares equity our the price we've share access Sands follow-on grow any in and growth transaction intent needed stay to endure an closing the balance billion to As announced through rate side $X real-estate sale immediately transaction equity this taken approach offering Proceeds the terms billion the ensure heavy neutral unsecured of with million Expo Simultaneously, the of maintain REIT agreements. we agreements we significantly a weather capital series capital Las relentless long-term balance to that to of right proceeds remain equity subject asset and portion execute an markets funding the forward

Our rated no maturity average debt total a approximately of quarter maturing is our $X.X weighted with X.X billion at nearly was outstanding of until years, average rate XXXX. end have interest X.XX%, debt debt

to As of in between net March and LTM with line was focus of maintaining times. X.X leverage is debt X.X XX, in net X.X stated our approximately times. range This our EBITDA

meaning pro million this our comprised credit in low end the take Eldorado our We if liquidity rate $X reflective of under our range. level ratio at revolving and leverage run from transaction, our into full note from as true of billion please have of undrawn approximately cash transaction, you impact would that forma billion months be not the So, availability stated consideration is the does a facility. currently in rent of not Caesars $XXX income XX a it include full of leverage $X.X

proceeds In of the the future addition, million under and to from have XXXX the we from of access under the forward. XXXX forward million settlement shares the June approximately in million billion $X.X future settlement $XXX.X approximately XX.X XX March the shares

XX over average share financial or per XX.X% increased AFFO to sheet million $X.XX share million $XXX Eldorado the this June of closing which was of count shares result XX.X% XXXX of QX Total settlement XXXX the a the transaction. increased to AFFO June our weighted balance while results, forward as quarter. for Turning approximately of diluted the Caesars XXXX, agreements, sale in added diluted ahead our of

for was as G&A was percentage Our $X.X million and for X.X% the represents of lowest a the quarter revenues sector. the one quarter in triple-net which the of total ratios

we both as AFFO As a dollars well full-year reaffirming XXXX, in guidance basis. Ed on for as are mentioned, absolute per share the

and us implement are aware, accounting income you its we of many net a accuracy. which FFO due with CECL standard required beginning January to unpredictability on to inherent leaves As XXXX, to were forecast unable

the to way and investments Importantly, our and performance of represents our ability financial we best pay productivity AFFO as dividends. measure evaluating to guidance is focused believe, the AFFO equity our

The XXXX, to between pre-share the December agreements forward the pending as or as issuance of reflected XX, agreements. related our maturity dilutive guidance the the estimates XXXX a operator, XX.X the between billion diluted $X million future for open on shares XX non-recurring please activity transaction. shares shares be settlement dispositions ending results XX, June such does impact the sale $X.XX the questions. AFFO million from per and expect and include $XX for December $X date of the pending continue a to a dilutive million or markets XXXX assuming amended XXXX the of of capital that to and sale share. year not forward $XX forwarded related to well billion or $X.XX or operating million the With possible March reminder, effect line acquisitions other the any pending June XXXX on impact as And We

Operator

from line Barry Truist [Operator of from Instructions] the comes question your Jonas Securities. And first

Barry Jonas

my Venetian with start on want Hi the for guys, deal, taking congrats that. question. thanks to you I

in are master road the execute cost and down get Apollo what that collateral obligation? to offer move curious, leaf the more you could Just expectations to for deals some

Samantha Gallagher

John?

John Payne

Look, to space Apollo rolled lease, and to sure Venetian side other hi into as because to partners I'm to just they're good the look how have the have you. of operators recovering assets excited work pandemic. Barry, Obviously, we'll speak of to it that great at this with didn’t morning. be be other been But from we'll there. we in there'd into won't wait growth. I that Yes and Good be talk this plans about this for their them. continue asset go

Barry Jonas

then, And think strip here? you buyer that million land now acres great. each. seller Pretty you I two be for is sold would number, a market do Center given okay where $XX it, nice and overall of City for But count a Got you just on the guess. or Vegas

John Payne

good ways out shares But Barry, $XX of this. Vegas Harrah's asset know, I to for the our talking their Las behind an assets well a you couple a you million of right Flamingo all land and thank as tremendous -- land got if $XX we value and Caesars our that behind and and see we’re sent acre. amount is and Whether to Linq outland that notes about will just in create look make buyers strip or company opportunities talk there's assets continue accretively to to there's and real-estate. folks with deep the see if continue to sellers the to to to going there. continue grow strip, to our opportunities look to our then expand we to

Ed Pitoniak

is this XX there's to of you cite in traded XX with strip, you've trade or but real-estate could example the has in in change And either fact rates Las the it's this institutionalization that along gaming start and with real-estate but acres retail years in further along just another that's about reasons And and world and investment strip, reasons. Barry, we're other as here secular of in the years. for stay should know Over heard the real-estate had valuable as how investors you and talking straight that's parcel that advanced recognize to of along time, this the term evaluation classes time I X.X last at along if and been another four. story for both gaming I retail will three the this strip the up part that Barry, two right. indication last going be just considered cap realizing fundamental us the we frankly strip real-estate real-estate retail And asset of add, those is prior Vegas

Barry Jonas

alright so much Awesome, thanks guys.

Operator

line Your Smedes the of from next Citi. comes from Rose question

Unidentified Analyst

Hi, to tenant I do willing you Smedes. to the already any ask wanted for updates And have regulators granted question. is they at flexible timing given This be morning. around good Thanks year Stefan you just a for be my the regarding then Horseshoe one taking new do Hammond. would think you, extension?

Samantha Gallagher

John?

John Payne

talk to plans wait write-downs. where over to have gaming months. the updates and good you the the Indiana ultimately see any and operate their to this have they've in this Stefan, We'd see to very have we'll fairly always out plays from just morning. don’t Yes of coming We how just Indiana state

Unidentified Analyst

and in the credit creative the enhancing any and of thinking the the Great. guys mortar about I-gaming? in And then, other outside business growth gaming, were of of benefits ways Charlotte are there of bricks then peers with outside and the transaction participating casino you maybe they're

Samantha Gallagher

Right.

share you case, about. that discretionary us by as voice. consumer your And sure betting when spending heard you've discretionary secular And technology your we in in operators trend consumer spending. include enabled of by your is sector. I-gaming mean sports time compete as gaming, Gaming interesting this exciting increase more of in increase and of a more mind. about increasing into an of behind your some sports betting. is is there And it. a at obviously discretionary Gaming way you we when a share discretionary I-gaming increasing look it you a mind as think, consumer emerging share also talk a aspect business if time is the gaming is not I'm to I REIT share for trends The

in decisions, gaming made betting are ultimately consumer both certainly makes and and with NFL the ago the of of you time two Barstool their exemplified announcement and giving pen share another doing partnership what's the strongly they in seven tenant is terms that sports Caesars more demonstrated of a media it's in week believe the much or that So, when can us. money. is was gives and the important obviously teams by the voice spending media bigger a REITs, for very the spending NFL REIT, with their the put I partner And marketing also and in,

our gaming. terms American expanding of So, We gaming. terms focus by long-term is creating the most being it's that's of think emerging in where value audience powerfully expressed greatest of in the for greatly digitization

Unidentified Analyst

Thank you.

Operator

question the from Bank. next line with comes Deutsche The of Carlo Santarelli

Carlo Santarelli

activity And a big of you think you deal these when the you for about names. think kind of taken we're And part decision of for who cost of I today kind points recently always whether larger bit Do future, multiples is one, somewhat storage. of grow us of vice obviously of today are lot a where M&A top the about been a kind about wants tackle cost acquisition you say, you about you trading past, don’t what what kind John out of think uncertainty it of you how was a that next a synergies call kind of alluded really little my other portfolio has were Thank the you do kind have in in to they envision or of talking M&A, first prepared as you six, versa. are had either XX look guys significant new it left to but know able just would the as up believe out remarks I this synergies taking as was But synergy about think as there When the store on the kind get not. who's expand. of often years been talking question. done? nine,

Ed Pitoniak

to John, you start? want

John Payne

Carlo. I'll start Yes,

over First, said, our see at of understanding transactions Carlo, that we large is be want who points, in compliment released of to ‘XX, holders respect It's operators, the there do the we've been but you because out a amazing I an gets spent the is hard really very in next just just are retailer time sometimes that for time their I tell for not the team our in and with and improvements when to amazing X,XXX only can't meeting work a are the we've forgotten into right back stopping and we now we've you play space can how tenants, And XXX, capital that the a have coming get the had end will results been amount to has gaming that's back since deal the amount company. shout space them XXX, nature company it basis a road But showing pretty give asset operators all all the of don’t With and mentioned our stack. way in would teams be and operate of obviously other been operators accretive amazing difficult the a our model to is in on that tremendous just least those for Carlo. is started the company. able margin fortunate it might how this to very and conversations our to are do out and active, up that I space. I very from tenants the others at just in new a great the

run continue our front in in embedded us have our even rate that of So, they'll I and obviously think embedded we pipeline. those that pipeline outside

Ed Pitoniak

category Caesars, with effect. with operations another obviously in M&A for my think and is a network In COVID, it. and I I valuable powerfully. Harrah's, in There factor network my effect achieve that on should that, effect right that the can Caesars historically if effect. curious And what and important sense driving own is obviously were demonstrated part a in add driving operators, has both of betting very M&A last strong they'll would factor right that loads that it's I tailwind demonstrate now of operators, Carlo network for is we gaming network is, So of it And bigger that’s coming power is have. sports think, and of specialty now be do the stepped emergence much out smaller of very in

Carlo Santarelli

thanks Ed. Thanks John,

Operator

Your of Dan Loop Adam next from question the comes Markets. Capital line with

Daniel Adam

questions. My

Ed Pitoniak

Hi Dan, sure.

Daniel Adam

yesterday there any more retail the opportunities for it along single your from standpoint So, so what merger major are assets not lines accretive our of Income portfolio in make or but the out there that M&A of of I thinking Realty light very, in or announced asset pacing triple-net. Does latest and much you a even standpoint was a with guys? between on another your and property sense guess, is retail from

Ed Pitoniak

do Canadian, generating wider considering experiential in your another REIT. decade the cannot shareholders. gets the and focused every has at comes be with I funnel not defining and But our most time end having absolutely we an be And will what the that, has anything better work are fact the when gets, we that capital And you REIT in M&A, this about come dogmatic mass Yes, it better have fundamentally growth. the so. the achieve mindful out we intriguing shareholders for of first all, we of would a that the being, point, Income. to beginning capital. superior of and to of mean said that we at there experiential we if this should demonstrating invest think you when are Realty shareholders. ahead We're great half especially cost determine decades and the we And will for except cost critical Basically, it identify to They are of good day question. a is at real-estate every hats can off our a for what your real-estate to in. team such when on so obviously of at want of our we want constitution the we kind very day, time the we that say

experiential we're do our secular to frankly trends prime come COVID. the really it'd is place to it experiential. but over moving and do where it invest not leisure already that were the going we're evidence triple-net in baby with we it And boomers be. combine for COVID aid to want place again, to with that behind And white experiential The Experientials the secular COVID, our starting believe already before consumer sectors. are mining Those trends millennials if space demographic family other So and really portfolio, given we're things proved trends has do that when if continue see very back going to we strong experience and played to years want formation. be discovering in. then entering secular our REITs to by were their operators in preference trends with grow before not be during best whether to experiential and is going into need you only that's to conventionally

Daniel Adam

perspective to from from expand does cost an to from past debt earlier months? Thanks. extent the revise the three for a tremendous And you've upgraded next guess, incremental its And of on an the strengthening grades month, VICI then debt with standpoint? potentially balance a really Thanks get What the the investment I lower cost M&A positive stable. over outlook targets universe over S&P job done David, sheet. or to mean color, and accretion we that guys years XX this

David Kieske

Dan. thanks Yes,

point and that's that months of from terms the rid cost it which goal our going I of as market and get it's XXX not now months, investment funnel grades pay more markets debt from forward. if to currently the or from basis need quite the our sometimes do high our improvement probably Yes, for rating, XX, is and to your makes XX is with XX sheet. rates yield us we unsecured grade in investment versus we're rates is on that our our historical lower at our think depends in a cost exactly points, basis investment obviously accretion mean where I to folks on mean the XXX points it's our in. overall really income But, improvement past billion allows a capital ability pay. In and investment day that grade accretive that widens spreads, it balance credit $X.X loan talking our capital points basis one transactions grade, Increases incremental the deals in of then I to point but look XXX overall most basis you of in know to of outstanding get ability term to to increases XX

the So, we to were frequently came and see we out it's on agencies talk forward focused U.S. we're and we S&Ps and highly to something pleased to that look

Daniel Adam

Awesome. Thanks, guys.

Ed Pitoniak

Dan. Thanks,

Operator

Your from the comes Evercore. next question Rich of with line Hightower

Rich Hightower

Good morning guys.

Ed Pitoniak

Rich. Hi,

Rich Hightower

the everyone. of treatment that your you for was sure for I Ed. surreal say thank profits going ratio. humble I'm PEG helpful was to Hi,

Ed Pitoniak

You I it, that. pipe actually was Rich. I couldn’t see smoking did But when a

Rich Hightower

go in that. equity And to think Apollo I I I one structure REIT I thing equity gaming structure Well see listen, from in investment so far, a for would sort I other Venetian been guess be the we could That's a fund. want to a of from having awesome. and permanent might of structure it's private about their call what capital back private second. involvement deal I wish when believe traditional the which

of risk about guys? the if and potential exit risk PEG I'm you down that, So, of you operator as you that the Apollo. the sort that of do thinking about sort a by think correctly, replacing how do maybe underwrite How road

Ed Pitoniak

they’re that to exit then, did value. did turn the this start of meeting one a confident among seen to to research. of David, example John the strategic it, say obviously very and is and exactly that vision Ed, obviously is Bill of ISR credit, tend very the other did that Bill of bringing is to Johnson proprietary depth They sectors. coming Johnson things always I'd America. the their is value down I'll we're Apollo equity case. their how much like lot created of depth It with this business of and underwriting and had of very Primary, their comes And What dealing they firms you across outlook of to is Rich. that what a fall And And players determine when primary lot to credibility over that research with when have question that and never been lots this these a it at plan. it working clear private when conceptualize they value dealings will a be. Yes. we're in how that I or in into been

has So, Would think whatever when our exit in at will few be still very that well been be it's then we standalone prevalent asset. asset nonetheless as a using the very a the of remarks whether assumption is, when or whether asset believe takes assets the by highest point, this taken that's gets is public will said single attractive. It'll real-estate. more be And don’t a is, it's place. John structure platform standalone and the asset they in single America's exit I in predefined, performing his

we Rich they're this about excited -- going when and think especially what see to do So, to really

Rich Hightower

sorry there, I think breaking it's on Ed, up you me. still

John Payne

Rich, in this think answer. I is Ed lost John, that we

been as add and rebounding think are obviously windows we've I following rebooking to business that business people that and the excited, there quickly an rebound I'll Vegas the going regional the as you've about, up. seeing businesses you been are in are that Las the filling quickly just talking various

end we could think question. I how So, that that's

Rich Hightower

I'll John, the hop Thanks right. out queue. very sounds It of Okay.

Operator

of the R.J. next question with line from Milligan Raymond comes Your James.

R.J. Milligan

get the we a of guys. to call, I at I morning, going Ed, have Good guess for the it because but analyst on start have add me. you're the John question for

John Payne

I'll get that fine with one, be that as won't that.

ahead. go So,

R.J. Milligan

great John. I'm a sure it'll answer, be

John Payne

Yes.

R.J. Milligan

same And I today, even guess, some seeing assets, them the seeing you leased be fours. in for VICI? lower five John what do do you think cap cap rates of that on still for and general then negative the at gaming positive assets net north would risk a and or in accurately for gaming trading we're pushes rates some potentially think assets reflect retail time assets the X% We're

John Payne

going actually bit. a that answer this take been we've to this going David's talking quite to, I'm about Well,

try So, Ed get to David to you while color wait want to some come in for we back? and step

David Kieske

R.J., then mispriced. we you risk. risk think here. we in I we that we've do can actually first much And really to we get reflect Yes. the is why I the as get want No, as as to part can is be acquire accurately to think

the we think to three as will history world. business last of five people they four real-estate. closings casino we with if our demonstrated in a resiliency call of model and I maintain what every ago and the really some of done and our ultimately, strength have XX continue cash about by rent were years one throughout over and the our worst of the in year months resiliency the strength to the operators go the back the And flows highlights pandemics plus obviously last the understand our ability talking the

that's and gaming this And cash done that a there leisure turning entertainment they his is we've sectors cash realize on in burn sector burn at mentioned experience. about where levels the sector hospitality consumer of let before replacement around other corner the burn that from it's looking to you John still factored remarks around for cash because that money talking the the hasn’t slightly new are of making As finally entrances well the positive. are versus turned the conversation all

transaction driver you So, cap more like opening in broader that's I entrance and lower push see market the in real-estate more continues sectors. because the rates to you that think have fluidity

R.J. Milligan

out assets? And at and for time, which non-gaming increase that desire the so, if that over look does happen then do you'd go

David Kieske

business the experience. either but multiple I are meet cash levers, is we've the other peers in by into us a portfolio like it's or the and magnitude the phenomenal diversified varied states casinos Piers is in with not reserves, that the base and non-gaming very other drivers, and to we We loyal of real-estate and essentially operators of the assets past. that business have that -- where of sectors understand the our resilient mostly expand the a a multiple have gaming that to a some able gaming operators to without that think may all Chelsea give be have streams and multiple and with to team, customer model have talked majority might you does revenue with don’t spectrum, or stood gaming to

R.J. Milligan

Great, thanks David.

Operator

Jordan the of comes from line next question Bender, your And Macquarie.

Jordan Bender

bidding increasing can the I Are process morning. in guess, of bidding good levels? the see the what starting or Hi, companies was competitive Venetian make I you pre-COVID is assets you've might seen looking pre-XXXX? number what to from on have more here

John Payne

center-of-the-strip Obviously, This gaining processes our is John, answer the I'll many good if time the or business over I'm you're that. seen We've in in the business of located. of competitive sure past in where years. your iconic irreplaceable world-class during four not I spending that not you're and you're gaming mean, assets time. you're the asset an is interested the real-estate this by Venetian,

the of about that experiential all-time levels many levels, EBITDA record out about coming record well as Compared partner EBITDA cash structure or talking still there's that a come talking involved up has we're companies, this who would were burn. again interested because companies don’t hospitality were with the and folks well asset tenants in this our think pandemic gaming or eyes done. a people gaming the the to find heights so are the we're was look There there's pandemic, reiterate do is and a with will got I that say be more competitive it and so, less margin substitute process. should I during this that many into not in we I it. consumer it's know the I'll caught fortunate to And who be all-time is David processes. transaction many ultimately say business did said, performed if what would Apollo and investors which that

to And more just see. to have leads so, competition, that after we'll

Jordan Bender

over something revenue kind your seven go just look was think then for term billion terms of I wondering sector coming your eight there might of well, REIT this on and years that at? can $X.X whole in we're you $X And roughly there left what up billion you rental of and would the sitting space. out is across you gaming to

John Payne

take You want to that, David?

David Kieske

entrance more Yes. in the new in for to where the continue November jurisdictions, I this overall expansion looking Dallas new as talked but grow at of folks about, the and to Virginia, we or you mean, jurisdictions there's gaming Denver. to continues in go gaming, what to as Richmond, see I obviously six new proposals have think seeing be term were for as last we new

cognizant relative add of rooms, it opportunities where VICI that ways, supply it's we great $XX number the that about opportunities, $XX then So, and universe, supply term. as But that's for we to think funding a million, add of is that $X because positive existing to funding the our ability million billion space, static the to towers, both the $XX operators you new gives billion about real-estate. Supply about But a beyond cut we creates $X you in comes that not increases buyable it's to it add rents for the and convention be can generally, it's assets. number, a need to in. million investible a to buyable talked was because think new

with very future we're day as the one this optimistic ability and our from So, to grow consistently year-in we've to continue about REIT. year-out and done

Jordan Bender

Nice the color. for thanks Awesome. quarter and

David Kieske

Thanks, Jordan.

Operator

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

John Payne

Hi, Stephen Grambling.

Stephen Grambling

and question through, both in put -- our Carlos I in can the on market as Hi, Grambling regional strength follow-up margins.

at you As on pipeline, the think impact, strength regional about the markets the corresponding you look in rent. EBITDA kind coverage underwriting how of

John Payne

expertise margin, It's assets increasing where margin, that this mean and of they're be which the sustainable, their have part would a we understanding risk. great where do increasing they're having where margin and Danny these see is there with how myself that I is their option, in-house run in

the the with study will year, think previous And a to think we'll increased combination bid they has asset about it accordingly. so, assets, margin where land and individual land over operator. where we underwrite see ultimately as think work we the where any it's the process of it'll If or

Stephen Grambling

does as have reset set, then level expectations seller been how had same or negotiations to generally that And that evolving? been

John Payne

three are show be. the Well, set is they level. the it's months going to necessary They They that their months been. forecasting or what where business has previous six not

if numbers with of again, going be dig asset into numbers. we're operator the the study real-estate sustainable. an actual And levels is into an are of the will the And margin where EBITDA levels what and there's to if historic digging ultimately the we're the EBITDAR lease a new asset or back that going a it's operator, current say sale it's underwrite in we in appropriate that scope. I the come forecast So, with up a the tenant our the how with complete purchase really levels with and that's we'll new tenant, starting a mean, sale new but with if with operator

Stephen Grambling

mean, there here? the sellers Yes, you're in expectations terms versus I of operators aligning spread the what thinking question from a is I versus, is, guess the

John Payne

whether have or you'd years. that acquire follow asset done take over take, to to that have process honestly asset our it's We'd widening will not, the again there's past we've to say to hard three a assets and by

Stephen Gambling

Makes sense.

John Payne

you. Thank

Operator

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

Thomas Allen

that. can remind just in in one kick what David, kickers know are talking few about years. near you I you. I And after us have it's for a could CPI one you. escalators term, think Thank some

David Kieske

gaming last the and leases on X% around in all X.X% two in biggest year CPI it inflation the what the year, bump And Vegas effect both there. talk to something escalated at of, out CPI think where and one you we we was It that bump regional from just the such look thank good X, terms and subject Regional Overall, last kicked versus our Las protections And lease differentiates focus that you CPI's Las that lease given to like our didn’t which November Caesars given so CPI the XX% leases. but to if you. November. just talk the Vegas takes Thomas, we in Yes, in other Master that of at something hit every is the rent our the kickers. REITs. But, being in with

Thomas Allen

go they for year? couple And or a kick then, have don’t all good to in I years that some this of

David Kieske

year, are for Hard greater the have is that and Century is one year on depending a leases Rock or and kind years or two CPI the three CPI and it's after two the lease. X% then the There X% the had holiday leases three four for after. years in of quarter first certain of X.X one

close for holiday the when of lease transaction we So, and depending time. a the a there is for on period end

it somewhat tagged portfolio. So, to other

Thomas Allen

you. thank Alright,

Operator

line of with SMBC. comes question Anderson next from And the Rich

Rich Anderson

everybody. morning, Good SMBC. Yes,

that to rate backing Apollo So, I on comment had getting I'm the wondering don’t throw the the not all Venetian, been a under bus I perhaps, that an have would years. different of is Sam to what and if been you able But I that wonder state as the Do on have a you their know might have for everything operator. if would would but for few would asset? them the add price on. at pricing on be impact think you're market on it state or as mean Sam the it had you sense do cap

Ed Pitoniak

given multi they apologize They're dropping one's no very it's talking Because Hightower. a investment guess I everyone Yes, question before. company obviously Ed, answer actually I would the have their in off my grade. world. a cap the that serviced, to very It That Rich bad well factor is and interesting hearing is probably for been are asked its Rich. gaining

well this the Rich, be that resurgence point whole in price causing a wouldn’t. of So, A a placed market at the up began Apollo couldn’t was ended of able was do point sidelined a have lot a that world hypothetically at many take think bidders the too This when or to that time yes a action also And others that was a COVID we And were when that's of late was a uncertainty. where mid-to-late full fundamental at time lot the U.S. we or is paying. with in factor potentially. QX because the deals process time in of in it's idiosyncratic worth market. I very though would reiterating uncertainty. when at

Rich Anderson

never a waste good say They crisis.

excellent So, transaction for obviously all parties.

is business call, anybody engaging other earlier I question REITs. sort operators the and in really other the What do for terms quite the to of answer is didn’t and alluded holdback main think M&A not who's have but get with future The you I the even in of expect done gaming there that on and sidelines sort of so with that sort the answer is more get point negotiating see that that them hiccup in you REITs. has do the of you'll kept answered this What's gets involved? question to players

Ed Pitoniak

be clear from sellers And of what be selling? kept just be This in terms is you're Rich. would what asking, would

Rich Anderson

Yes, or any finance operators the way know REITs assets. have their not for in Those engaged you example. to that win

Ed Pitoniak

I question operator do well think or Right? with the the is money. would any issue the fundamental fundamental what most most for Rich, I

Rich Anderson

Yes.

Ed Pitoniak

And is are growth And and the is sale operators. And the or proceeds sell. dynamic proceeds price growing the factor one or equity that’s the proceeds to with sake preach is and that I really we that with this proceeds can create never deeper that we the I into sake we preferred still network always have selling And would and have a your though open the proceeds. should equity effect to ask selling them question you begin the operators and And then deploy that you're and the back. John that when transactional of already say of we nonetheless do a we'll up what of funding tremendous raise receive the the lease simple you next fundamentally the what We question work really or dynamics is And the equity. receiving a continue would back, the is we had right is do a you count. use simply then Because of now of store money for liquidity. reason if fact think that market. do or there's use make we even for believe of think at a breaks of finance the creating what for training And because a compelling take you team, selling, frankly engineering good I with rest our proceeds. need frankly,

Rich Anderson

Alright, good Thanks, stuff. very much.

Operator

next line Katz from of Your the with David question Jefferies. comes

David Katz

markets of quite mature a that just taking ask I to my domestically question, Hi, to of outside for consciousness. but you ground. do you've of don’t have inside it's quickly that be everyone. crossed Thanks or just international consideration. would whether covered bit are boundary the ton wanted Not the there sort a

Samantha Gallagher

John?

John Payne

if wish good I there's are an to or could understand see areas to all. good us continue our Canada be and opportunity reformat REIT you, and David, that north at, that continue talk if to in we of David, these could Yes and you opportunities income. other for there's fit We'll looked us. countries to into

it So, to at look we that got pass there. we got to you expertise

it's we grow company sent rightly could pipeline in understanding company not good to new do by a opportunities more stop, all any But real-estate. their deals. to embedded a You monetizing coming years could that where be continue our without the have does from strong help grow there

David Katz

long much it the encompass as pretty so meets criteria? that to And entirety Right. the could the of as planet speak

John Payne

tend variety situation, the things, got the Yes, as lull it can they will we'll understand tax to look real-estate, it if work a to long we only it. at as meets, of other

David Katz

much. Got Thank it, you, perfect. very

John Payne

Thank you.

Ed Pitoniak

I'll question to just that. David's add

could NOI glad And growing effectively. went million our like, model. because has lies well David. with billion us by is business creating and $X.X pave to grow global as If to I cost it heaven only can million passed there a base then to that as since NOI about billion protectively we’ve to grown XXXX internationally very use very grow a just puts that us annualized our we efficiency position is quite reason Our well our and of because and we dramatize one dollars. triple-net reach, rent a on I’m in us an business by it that basis, to dollars incremental grow no And of of cash to G&A. a model year, feel $X.X enables that’s the approximately VICI our

Operator

John Your comes of next line question DeCree from Gaming. with the Union

John DeCree

Covered my as ground of lot indicated. taking had question. David for Thanks a

projects. two questions operators construction on are seeing One, up just of think creep developing maybe. at So we’re some your and costs, I those looking first

issue You replacement price prepared a mentioned purchase cost. about in of comment the your being an below

cap from M&A, Are partners, hearing look some pushing about think that rate a we’re of seeing guys partners became the highest costs you have is public. to activity your be gating and think you we that of M&A factor So, since people grow? going your I that you more in expect compression, that would increase to as construction we some to

Ed Pitoniak

I are lot lot XX there gone don’t costs is that XX that know accelerating deploy evidence bucks was lot no deals that residential are to that anywhere construction whole John, But, commercial Yes. from near bucks seen way of mean, construction a like yet of costs in we’ve commercial to accelerating, I with recent construction the months. plywood. of

in in that When though, there the be, construction. fact, in sector meeting, as to operators So, it very remains regional say shows just the especially good of our world in market connects concrete convention construction be to That’s thing and Vegas. all glorying could that’s a will for Con when of are up. our just Las business and and what in the not Las it, us. operators it be good or Agar tends US I seen a for being and is growing both Vegas parcel really the part for commercial for

John DeCree

talks acquisition you is. given ropers and you medium around do look active term, now? your to to are and how Ed. is quarter acquisition Las in had at we of right M&A just attractive quite has increases thanks be contracted in Vegas your bit, a opportunities bit a less or maybe to that the question Vegas Lot in your note, rent the some that away the the Vegas get exposure market going separate little dynamics the from strip or of consideration Las near length favorable just approach, But also. true, strip the more a strip, of your this And Venetian probably every capacity the Las of Very

John Payne

we good you. that very Venetian we we of clear from the XX% Yes. after announced When we Venetian, we, rents be regionals were don’t to will the and asset talking that we have And two do ropers, Vegas. closed, getting Las is John, and from mentioned, you the still region. be but our in Indianapolis forget call as XX% would foot that very exciting large have

portfolio And area think in Las we’ve So, of I other a I then, me region. see like the the Las like Las our plan downtown you part Vegas, Vegas I John, continue as to our a portfolio and to strip continues regional the add say again, have all to I diverse like of I Vegas mix asset heard and be think us where you to today. of

since started is remain balanced going and we we’re we’ve company. to key diverse that the the So as

John DeCree

thanks good, Ed. thanks Very John,

Operator

comes of Peter next the Hermann line The question with Baird. from

Peter Hermann

open a I in form have into particular well said if expanding you operators at the kind VICI us wondering the footprint Thanks. appetite places, of would this road? was malls in asset, mall would in real of you Pennsylvania the down Western think all give sense for

Ed Pitoniak

mall a Pennsylvania correct. you’re asset they as live a that and wait redevelopment tool asset site is built understanding is and unique Pennsylvania. a whether stage that states opened to see it way my and beside good to We this somewhat as the a and very smaller would is the well. use just license either supplement state add in that’s call add too west be not [Indiscernible] it naïve restrictive the have with doing a they looking going think innings and they they’re It mall to you I in it, mall saying, will where it’s watch X at other in we’re are all how and states sure interesting question opened continue different Yes, in of estate there. in to open a licenses in plays we’re real are that specifically in am licensing to other way using like out, I monitor we mentioned new just early but and process, and

Peter Hermann

I appreciate guys. response, the thank you

Operator

from your And [Indiscernible]. question last comes James

Ed Pitoniak

there. James, you are

Unidentified Analyst

Can you Yes. me? hear

Ed Pitoniak

We yes. can now,

Unidentified Analyst

when implies of transaction, Caesars Venetian you think Following value power? the that the do

Danny Valoy

really realize we to we we A a rent, GPI Again, rent we thousand by the REIT we and America, fund, viability triple-net announced gain our value of investment occupied just matching are that value per with what like Seattle. do of buy tremendously bought the of like we like long right. analog boxes would the if We MGO valuable escalate years to a as average outside term tickers. doing the better acquisitions that’s you top think, is and The especially was million the a is amount And asset, in should of of average quite the biggest is iconic $XXX,XXX a about owned are investor brand. lease estate. pension that that we and own for or examples and revenue more rent store one put unviable $XXX,XXX, watered a One you’re These by out a real think viability if don’t estate they our equal $XXX weighted And Caesars real James. XX it made as [Indiscernible] James, to I real these right. understand estate power the goes When XX profit thousand. bought great distribution Amazon years cash Venetian we tremendously has billion lease $XXX be VICI in on equity effectively into we are in that average there. the XXXX of asset more lot valuable purchase nation, that out, invoked what that the XXX% model Blackstone realize bought assets Venetian, the productivity to as $X the comparable when terms store assets average of collection tremendously rent, center building, our again a in in them else contracting rent real that fine to then tenants here they’re leases find have to anything and and the of and the are was point at of with need question public term, lease the same effectively brand. to they think million like. and these weighted X and the obviously with productivity, commercial estate know it just attractive garage I a years is then rent, high resilient, investors digit. I can Yes a of GM triple

Unidentified Analyst

no color are it I’ll questions on this time. leave at for Valoy, that. Thanks And further the there

Ed Pitoniak

Thank operator. you,

all Let thanks me our reiterating out by being you of to for just on close call. today’s

growth continue of that well And We’re shareholder positioned the growth John leading very we’re forefront industry growth believe reopening Again of excited very America’s of quarter of to and provided and they’re proud the to thank to all. delivering value. about the prospect our good out, tenant you here continuing pointed at driving our we economy. leisure stockholders health partners this as and

Operator

And conference today's call. this concludes

may now disconnect. You

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