VICI Properties (VICI) 28 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Samantha Gallagher	Executive Vice President, General Counsel and Secretary
Edward Pitoniak	Chief Executive Officer
John Payne	President and Chief Operating Officer
David Kieske	Executive Vice President and Chief Financial Officer
Anthony Paolone	JP Morgan
Steve Sakwa	Evercore ISI
RJ Milligan	Raymond James
Smedes Rose	Citi
Neil Malkin	Capital One Securities
Wesley Golladay	Baird
Barry Jonas	Truist Securities
David Katz	Jefferies
Ronald Kamdem	Morgan Stanley
Spenser Allaway	Green Street
Jay Kornreich	SMBC
John Decree	CBRE

Call transcript

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded today, July 28, 2022. 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 second 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.

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

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

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

Edward Pitoniak

A Samantha America's a to good of XXXX transformation QX, quarter. larger continuing highest lot happened, morning, of quintessentially VICI into worked and quality you, Thank REIT. lot scale one we and everyone. build VICI was a as

a quick a $X Fitch, VICI elevated late April, the fundraise. the billion agility largest grade debut we single and In debt was of credit was S&P debt VICI conducted investment of in and raise to IG, largest highlights. by April conjunction the QX's in status raise our in recital continuing Kieske raise IG any was investment energy debt history. inaugural conducted David Here's and that team. and proved by that acquisition of and late IG REIT grade funding the with It our raise MGP finance

grow history the experiences. added and XXX first less was from VQ to resort operating experiences. S&P locks David reduced In early what making XXXX As than debt. XXX years net XXX to the in REIT VICI Tampa, believe of we pilgrimage with early five inclusion first of and significantly the net in closed substantially our S&P of new be ahead. treasury June to the MGM in assets, coupon with that portfolio American swaps XXXX, we Pilgrimage MGM, inclusion. creating believe examples global initiating in had the partnership the Cabot, acquisition on place Cabot late new and the real about property estate, late capital and IPO Citrus we in closure. Farms in MGP golf billion In with put a a June, and leader announced S&P will real can we team and income of A In go adding the years. April, magnificent thereby near of many Class estate our $X partnership XX of partnerships

to and also yet we partner June, dynamic giving In become us partnership. entertainment nation Gold and we one to added Tunica, with Mccloskey new activity significantly new is equity Chief with. to our early growth leadership me, officers. our our in across in our talented strengthens sectors Cherokee VICI's two partner Officer, accomplishments key capital grow senior capabilities, ability Kellan became ability announced President, especially And resources, relationships providers, operating asset in there's Moira transactional with holdings other tribal excuse June, very Nation another Kellan but to These significantly Moira VICI non-gaming sustain Markets. due adds accomplishment develop Investment the Strike that our that third accomplishment. of QX and our will Vice course across, significantly controllers, our gaming new growth Capital team. and grow opportunities, strengthen credit. In Our Florio further became both relationships especially VICI's and

our strategic you Gabe our results David to June, continue to more the and financial activities, will a Additionally, in current words moreover outlook. the Elena Wasserman, say Danny and to Valoy, Jeremy integral David, cultural ideas and in ideas -- from about come. of talk development outlook. and Florio, we in and let and play ESG Lewis, a integral of growth stakeholder will our committee total reach. This of Kellan will our goals They the return But the about growth management our will established of be our tell Keil, ensuring Mccloskey. value. broaden growth includes strategic committee resources and management to our committee and role developing and creation me financial an VICI relationships Jerry first, Cameron The me execution growth working the Mario and John, seven will VICI Waxman, about moment, In and portfolio current John come and with the relationships, strategies VICI VICI's our years Samantha few deepen of

of are sell and As right our of debt quarters tend these buy partners offer especially how know be XX% me partners But equity about and portfolio current delivering public are our along John, trading wouldn't the operating Point Las from operating the we but rather listed further to hear from where about ahead. the are Strip, let you income, you the trading and three will consumer now. gather Granted outstanding Vegas our this gaming possible resiliency. on values number understandably in sides a points. outlook based concerned recession both one, than results, performance

the number both As crisis great gaming and other about than was discussed variety be the that crises discretionary more throughout and the we any consumer Point Gaming blown the resiliency. operator COVIDXX resilient shapes reasoned to well and out have show past, has just financial flow both be or scenarios that in you garden year customer in so cash gaming terms on both free couple full side the recessions, partners sheet proven ahead. sell fairly there, even very through proven two. the solid draconian through pandemic. the recession many A our produced have and balance in of in will of of under specifically analysis generally, operators strength,

capital capital both no not of responsible to and gaming and my changing non-gaming our question few curtailed will of belief dealing in have current the VICI has are conditions. recession cost gaming our at relative severely only seen our and a a the with S&P responsive, and partners operators operator access me VICI's to capital meantime, point. their absolutely this in our on attractiveness both brings a consumer Both most of agile credit that With and experiential is third possible that our capital to months. There in Our -- give the of grade harm operators. and has incremental the VICI's credit cost operators confidence relative strengthened resiliency and basis in But quality and any strengthened gaming potential time increased. XXX in access last investment inclusion, to operating status when significantly the

that and the John? growth, with As Payne. capability conditions market John Venetian in we opportunities and we've to attractive may quarters further believe to yield in Current of market quickly turn to pause. ahead. call move has over And especially the now VICI cause the highly prospective proved others I'll topic the could VICI, growth decisively our conditions acquisition,

John Payne

and Thanks, good morning, Ed everyone.

second a hotel time, team five triple-net meeting of and under areas. work transactions the entertainment and quarter, started. same VICI. our of we're millions of over MGP, quality convention that square proud XX,XXX the And to only food and completed highest just acquisition the work excited rooms, the with $XX beverage ago. accomplishments. our these years hundreds since the of than During billion our outlets, expanding of experiential feet of We've XX assets of very estate less of tireless to and Thanks we company's at model combined completed portfolio formation, real has high-quality We're our

provide capital strategic that objective to primary our work our meet with existing to is each a objectives. One company of tenants help that operator's solutions

an our have As heard does a after team not or before, many take of completing break acquisition. you say me announcing

our team remains will that very and we believe opportunities development continue accretive for outcomes Our VICI. yielding expanding active, sourcing relationships

in second in excited loan entered long-term relationship look our Farms a During a a years. operator, We're Cabot Florida, the over and quarter, the about a of of destination to provide expand portion will real we to convert sale potentially long-term the coming this funding Cabot under for Cabot, lease where with back. estate leading partnership we golf Citrus with very ownership redevelopment and

are our COVID-XX. when consumer I questions monthly I outlook asking restrictions we our does long of the rent enjoy recall income to cash ground would have many properties that the simply trends, about Those you annual fluctuate remind many on collect very questions rent landlord. been in followed of based story close have every collect we XXX% you periods or time. trends. the our government to response triple-net not was a fixed lease to And to quarterly spending. of of to streams one While on would over mandated for escalations forced about with continued who We that that will There repeat like operating due

Las in incredibly said that numbers. continues strong Strip Vegas, with Now, to the produce

above May For revenue June. International XXXX this example, just XX% And Reid registered for in Airport levels. an passenger record traffic Harry gross gaming past was all-time

at the rates they've cost its XXXX to a that difficult are has will are over the The operator ways to and surpass navigated resilience years. anyone given footing While researches today pandemic margin who profitability monitor expansion gaming of emerged leaner models adjust to successfully period uncertain business in more their activity pre-COVID and understand consumer operator record start levels, breaking compared the growth decades. accordingly. flexible proven industry and with very activity as record on becoming the structures the more the created stronger gaming as And

date of with industry-leading stable, track very are our and relationships to We proud record our tenants.

we believe investment and as capital and environment opportunities future continue with growth fluctuates our exceptional will pursue satisfy will acquisitions as opportunities. accretion appropriate our of in evaluate underwriting David for cost daily, ensure an on, very we're We balance to we disciplined we which In evaluate remain Thanks our will transactions we a touch sheet, position to strong criteria. shareholders. where

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

David Kieske

available settlement hedge billion redemption to a senior interest amount of sheet by account revolving S&P the broadening billion of date investment issued MGP and cash also VICI company April credit John. units. balance notes investment while notes offers with bond our our offering interest down of want the billion $X grade quarter the the to to principle X.X On same XXth, The The The used balance of notes, recap was proceeds effective to approximately outstanding repay and acquisition April billion rate, cash the on plus as April permanent REIT facility. second and as redemption rate by access To unsecured terms for were On of $X well with MGP into X%, consent was hand MGM's the solicitations. offering. notes overall MGP of OP the and upgraded future Fitch, fund debt grade I closed to aggregate a blended as majority greatly our capital. $X.X used rate ever. the XXth, the on $X Thanks we our proceeds remaining we priced XXth, of growth. to and We senior X.XX%. largest to start exchange liquidity maturity was VICI the billion originally pursuant in of issued for exchange On after executing grade interest portfolio the taking fund bond events. to investment

Following solicitations, the original exchange XX the offers approximately outstanding. of notes million MGP of settlement and remain consent

JV our of of inclusive of debt. rata pro with the leverage, total In we quarter terms share with of ended the a BREIT total -- $XX.X billion debt

net approximately rent MGP times. of debt for a adjusted Our to EBITDA X.X pro is the full forma year transaction from

a interest hedge rate X.X a portfolio weighted taking maturity. our years into account average have and to of X.XX% average We weighted

as had We June public have accomplishments the is endorsement a on but in our growth. index to short existence XXX company, a many our of being Xth continued S&P added

As from IPO added investor fastest be REIT the the added being to to we access believe and inclusion. broaden XXX equity to our improve And our mentioned, to the VICI was index will S&P capital. index to base

at During the quarter an XX.X program. million of before aggregate we sold under our shares $XXX.X approximately million fees value with ATM

a All as sheet. the such reflected sale forward of and to are on were our shares sold agreement, subject not balance

billion settlement upon facility the certain credit facility of to permit approximately flexibility. $X.X our and total availability XXth, equivalent in $XXX availability draw cash of As amended the million $X.X sale comprised billion of under in $X cash the forward with In enhancing currencies net U.S. up equivalence, of revolving billion credit billion dollar of in agreement, June borrowings revolving the available delayed and million estimated our liquidity under $XXX was July, of financial $X.XX proceeds of to facility. foreign

year-over-year, from increased MGP. Turning consummate growth quarter were release. count between approximately XX.X is At stock and the our shares per $X.XX the AFFO is XX.X% A OP over has outstanding held share common million for increase VICI of end included The outstanding or raised to of equity was million disparity while to of transformative received prior overall the which OP due our share. in our the QX which AFFO Total count, increased $XXX.X income year. earnings an share share the additional reconciliation approximately acquisition AFFO XXX QX, the per issued in AFFO of has X% company AFFO to in second growth shares and and by merger. the in the primarily share per statement. full units MGM, million increased

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

to incurred in revenues the losses, quarter. $XXX And credit line we the non-cash was QX, X.X%, of expected initial approximately to current out and total a related or for full Our of $XXX G&A ratios required million million our $XX.X GAAP as go-forward certain we in were touch was record sector. impact believe accounting or as represents the but upon previously to this I charge when the the allowance million XX% in charges MGM the income non-cash did just reduce noted AFFO. for net or to This flow lowest percentage entering lease. not only our run for year was expectations with acquisition do allowance the quarter, MGP cash master CECL We appropriate into on CECL want of triple-net one rate the in increase the the expenses related

guidance. to Turning

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

billion is pay financial forecast investments measuring As of a activity, share way impact focused and ability not other future evaluating the With open on estimates accuracy. for guidance of results our from expected possible to capital acquisitions our and include the or December any of accounting line $X.XX AFFO transactions. non-recurring reminder, our and as represents treasury is related impact operating markets the AFFO or per billion, The $X.XX Accordingly, questions. productivity between $X.XX please be unable basis, XX.X dispositions, its which reflect And equity we net our non-cash quarterly and CECL we a ATM sold to QX. performance due to discussed, us as common have believe the $X.XX AFFO charge between operator, from XXst, XXXX diluted per to year on million the leaves program our that or and share. inherent pending income forward ending with guidance the we unpredictability recorded AFFO shares dividends. in for best to does the

Operator

go first you. Morgan. [Operator when Anthony. phone question from have Thank Paolone you're JP Please We Instructions] Anthony the lines ahead of the on ready,

Anthony Paolone

outside Thank and gaming. your My good Great. efforts relates first question of you morning. to

experiential comment on into of more of four we these, straight these have XX -- see months? you when relationships you you over XX to acquisitions property these convert might So, of some can do where you see growing and going, or these up next the also

Edward Pitoniak

capital your on many, period I Yeah. with has Cabot. fundamental do to structure it, seen Cabot that, willing to wish at before structure I representative Tony, real transaction create we transaction question, as there for development, pioneering. answer into believe in that in to to night I opportunities did of In in an impact don't VICI's into question where good is hope we're capital the as you that out not that to I'll to real to your and talk property like upon where second of all sort be OPCO/PROPCO obviously lent non-gaming right potential opportunities own situations, Insofar that converting approach lending order run estate we're the question, to for is we're VICI regarding a have you and asking. apply non-gaming requires OPCO/PROPCO taking we is And I of doing a we the situations CPI will stabilization preclude is one we duplicate want the gate. of of look white opportunity start doing experiential of the insofar in did of the obviously have you the development. think, I the roll. structures other This not with is happily we development out. if will our thank To note that in the may into Ed. space we the very Cabot Cabot, pioneer math on you predicated And last But transaction before. often of the transactions, answer the

Anthony Paolone

it. Got

And to usage the planned quarter why it or, we you ATM, raise did there, off it? doing about with on Okay. in regards equity how the the any comments the then, should or think

David Kieske

David. Tony, use really under to agreement. of mentioned, Good I to we it put as It's the the forward And talk opportunistic you. it's ATM. Hey, an

-- raise level a current and volumes for So, liquidity. we with the thought S&P of given just made equity little overall a saw in to we the the priced -- index, environment sense XXX inclusion price in a and that elevated the state share enhance the our

Edward Pitoniak

And you we're deploy it, capital. I as going to think our Tony, take sign confidence to have can a opportunities of that

Anthony Paolone

Thank Great. Okay. you.

Edward Pitoniak

Tony. Thanks

Operator

you, you go next are Sakwa when Please Thank now have We from the Steve ahead Tony. question Evercore. with ready.

Steve Sakwa

Good comments. morning. back wanted to your circle Ed, Thanks. I'm to Yes.

You just and the does of talked but a sort fundamentals affect recession question. obviously if second that have I'm about might actually spur the wondering a operators. the affect really near-term. Thank do downturn I it then And transactions And more or weakening you. pending doesn't you, in

Edward Pitoniak

to that a And levels, the lease cost they what of credit remarks, on operators in mentioned But of had of can, to yields of right of potentially at we I beat operating to and XXXX, lot do non- our gaming, existing their every read the when outlook data collections data about thing I credit back the those out in both the to I and two credit, for to that our of years. but having yields the gaming, partners. compare Monday especially that. one sale quality. most potential look my And worst good many opening through is and experiential you at the refinancing Steve, if capital the be a avidly is -- even Yeah. you. of as recession then refinancing a overall think effect worst in to those The cost the structures, hell in looking lot and our -- now you're we one trading talk of beyond, not a frankly, harmful results cases, and refinance sober is, fear XXXX, to at

I we do So, see it. think,

in could marketplace that nonetheless operators our Steve, attractive. opportunities your questions, I agree who could we think, suggestion of from attractive suffer couple much implicit your a support to implicit over very refinancing makes with be strong more years, the very us to, next capital that there that for

Steve Sakwa

are lines then the maybe Thanks. opportunities. over one, along development, few -- know densification were the I And we talking the weeks, along opportunities of sort when second Strip last of the

And Strip, and development, the about those sort and a on you for of Cabot or similar we purchasing would up, lending doing you opportunities talked you would wind similar, structure completion? the just non-gaming into use upon think

Edward Pitoniak

about depend our that densification that But would on it Strip. we everybody the we understands of sure this to just think and Steve. very make your and the along have basis circumstances, I question, partners the are intensification opportunities excited

to acres We that going identify or all have told, in be support highest either use. we unoccupied the billions acreage, ways opportunity being to put we're to is And to those incremental best otherwise opportunities. in mapping to the intensification think and investment not its XXX dollars in could course, efforts acreage of due lead XXX acres and of partners have our that we

and estate of own, many where opportunity ownership, are. properties then we In opportunities, in structure might those we it would convert be lend capital we is the so. there But where a real could to we of case terms the to the in how simply already do

the We gets are real owning as you estate capital financing the will. and development our with real effectively if of estate built, the it

Steve Sakwa

Great. Thank you.

Operator

Milligan Raymond question comes from next of The RJ James.

your You RJ. question, with may proceed

RJ Milligan

Yeah. guys. Good morning,

and security trading plenty high. stock of grade now all-time So, an near is investment liquidity, rating,

growth. the VICI despite green the light seems volatility, uncertainty giving So, macro and it like the market's for

and to more assets Caesars pretty time call have now not lock-in than why it's you acquisition And accretion? aggressive already think front on more been? get the attractive you even do So, the

Edward Pitoniak

pace, John years. capital advantage over $XX cost the little but turn potentially for That's velocity. it market to so but I'm thoughts strong it far would that the transpired current we John, of pretty conditions. taking on in over exceed billion of his and both to our to We've four transpired turn over idea going a that's I'll a -- John?

John Payne

Yeah. RJ, good morning.

and moving a we me good, are need RJ, heart as are to attack we've to be as our but doing I done. But and already making Kellan to sure think look, giving we've we're I in observations than is evaluating to disciplined You're our more opportunities, going opening assure said more meeting we good marks, our -- can Not to gaming, as continue already you, criteria. added our now, as RJ, the in only who team. expertise in Ed for your approach investment development than right on already, we've his resources Officer added Investment Florio but focus non-gaming. Chief we've

hear So, to here, but turning rock over there, out and of we opportunity. more come every you we're

RJ Milligan

Thanks Steve's VICI, guys. is coverage. growth sheet the for to internal focus more of because coming Given are the but Caesars earlier and space, this balance to Caesars obviously, increases the it their of question. lease I right? related most positive we've and specifically plans. on And net And gotten stretches And their boosts a follow-up also question, that on lot rent wanted a above of sort in it but your peers questions

that you a in recession, factor as stretches coverage well. if so, maybe And

this Caesars transactions then, current So, levels? just coverage them how with about and Steve's now, potential and question specifically, curious about right in feel to the future. I'm And you future leads the

Edward Pitoniak

John, do want start? to

John Payne

the Reeg. of under Caesars, Tom leadership Look, great feel about we

taking know, find continue it that mortar plan perform They way feel helped business together? to -- Would that grow they've El the in when to help partners As they hope good been And we've on very find I they disciplined good very We and support a to had were Dorado facilities. company. all bricks them. so. We we them executed and continue over partners their place work a we we do to in to facilities. and been opportunities to the you them hope they well, hope they've us, and opportunities

RJ Milligan

guys. You, Thank

Operator

Smedes Please ahead a Rose go from Thank We you. Citi. when have now ready. question [Operator you're of Instructions]

Smedes Rose

I just Morning. that in the pull specifically that's the more of do maybe funding commitments, that. mentioned back it's wondering initiated slowing appetite that a recessionary fund. will. Q, the -- maybe maybe just There's more ask coming likely need their a just existing Thanks. just to kind thoughts end, any from -- those of given concerns, kind feel because Hi. wanted And tenants it's to for of may you correct? billion guess you kind I on little commitments about investing if growth from around funding I'm to if dollars capital, you their be property have your like sense the bit, your you given, And hoard of

Edward Pitoniak

John?

John Payne

could mean, Well, lot I'm Las to to I you now, but this myself I the grew numbers Vegas. over I'm in there -- you if it repeating nice kind a was remarks XX% going of here, Las growth look of and and sound where then XXXX morning. to deployed, my morning XX%. be like Smedes, out it's talk GGR about capital in at right came Vegas opening year-over-year. just this In talked in June up June this May, the Smedes,

aware visit. to such the Vegas month about Las be going macro declining have tremendous growth. of but of record we are in there Las as the on, I June. that again, passengers number In some talked consumer The markets seeing in of remarks are conditions So, my the continues Vegas opening to

and opportunities deploy And in a there can be facility creatively. and so, have And XXX if is love remarks you Vegas, you and could there. acres growing in mentioned about we'd or to Las a in his his that continue as we as Ed comments well, have Vegas, town grow you to see town are capital Las that to it is it an a is operator

Smedes Rose

Okay.

Edward Pitoniak

velocity development. Smedes the Smedes, other it -- we're other to -- is cost rollover the would see which thing The more that light create -- environment, remains construction if be beginning rollover. think, could could to stronger But to would seen to see that, for I it of beginning we I of thing obviously will a continue be -- we you're a the see this benign And beginnings instruction add, costs. I add, green

Smedes Rose

to I net raise then, just mean, the typical, and like of ask the And that was wondering, I kind that? or particularly million And the David, Okay. growth $XXX you, fee. maybe $XXX ATM, looks close to wanted specific high was on was to just something I'm seems is That there like a it million.

David Kieske

Smedes. Sorry gross was number was net The million million. $XXX million and was $XXX.X X.XX? the gross $XXX The

were So, fees. market these

Smedes Rose

Gotcha. you. Okay. Thank

Operator

Neil of have We Malkin One Securities. Capital now question the next from

Neil. open, is line Your

Neil Malkin

for Hey, everyone. still to those Thank you. raises. VICI Relative David, waiting the I'm time,

talk for off line the call. wondering, don't a he's know I [indiscernible] don't non-gaming. him broader if my on brought I'm you on Kellan, about is to over general he's if But question. just focus obviously we just I this maybe So, that. can address done know

with You want. executed biggest segment, you I it you untapped as XX parts terms, that and however price. over insight again very done the in be guess, from what guys to with a different capital of or really interested stack, for strong on particularly does know XX What do the on you he has stock you you see, that from can about your be the talked sure. see the potential have next I and conversations I'd months. Kellan most pioneering the opportunity, definitely But to some guys take biggest get to the

Edward Pitoniak

not is Florio call. Kellan Yeah. on the

for John answer this Neil. you, So, will

John Payne

us don't worked category water talk a we're quite are that park have theme of a to Yeah. the REIT. about, we as you. entertainment not have pioneering Neil. here I that parts heard I if park we're love we're you've know mentioned, areas morning. continuing indoor There's It's really interesting that traditionally family studying And centers. business, I business, the sports good of and to Good some that specific parts talk with to fitness study. think you

we're comments structures earlier his working And real so, eventually Ed as on turn different talked in will into ownership. estate that

and more resource, So the us, -- gotten has area, have it's had eight funnel but lot specific I wider an over being clearly nice our we've domestically internationally. opportunity little a the it don't short talk and to have a companies Kellan is have to we with to a because time weeks, and additional

Neil Malkin

adjust, How the how John, is, from follow something those exercises, of think to I can unknown to downside unexpected along question structure offer business outline at that about or how triple-net these or of, same quickly when you but because happens types a protect looking that put don't All like do risk, new Ed on a about it's -- just maybe new things industry? think And you you Thanks. Great. models replacement protection, up and know, costs? would Okay. be uses you segment. of do vein risks, if yourself obviously like alternative top you do do the other

Edward Pitoniak

Yeah.

what the supply. to This We that we means So in provide an same and real displacing be characteristic. really be out lower -- the Neil, must capital of any Number by we a number large, balance. that durability the threat we secular evaluation cyclicality, a two, and supply have -- do gaming constitutes lower want proven we to to we That our And and we consumer of user it about we want the does we durability trend to that mitigate four business experience. the estate do putting durability ultimately vulnerable at operator's unwarranted versus and a of we operator's at or be fundamental Because of constitutes demand as rent. home your durability that a category. segments of want the generally to, when almost through have user big experience. factors business the than look healthy against want house. Amazon that home wire cost the three, end discretionary definition, We at say, love of want the through cyclicality experiential or it's tends experience four, not use is shipping durability want investing a getting by an with factor. not then complexity Starting number usually average toward it end assets experience box the it have thus out experience, finally, generally less of

Neil Malkin

Okay.

I Okay. appreciate Thank you. it.

Edward Pitoniak

Neil. Yeah. you, Thank

Next operator. question

Operator

Thank you.

Please you're have ready. go Wes from ahead Golladay question We the next Baird. from when

Wesley Golladay

have it capital? everyone. capital have morning, you XXXX on deploy a will just ramp you then, should about And fund. and XXXX, in Will do the of good expect question trajectory I VICI think segment? the How exposure to Hey, the max growth up a we XXXX? property deploying for

David Kieske

I missed David. to tail just to I Good try … little to but of Wes, you. mean, a this end let talk that, is address

Wesley Golladay

Max exposure.

David Kieske

you. Thank Max.

it the project. well, depends on So,

this their actively our working of and as We growth serves call are funding to that, the that tenants. on assets, attractive with tenants. all They fund have as we about ability understand of our this we we talked and source the an invest property have that into for partner

capital could example, somewhat Mirage the depends nice the year, the If new where and we partner to to the basis, ideas all up or of a if once. growth where growth may a terms a that and but billion, stopped take of committed -- that, has. at that committed to fund, the the we continuation up $X.X that choose of Venetian, the some we've important go the was monthly later property coming thing again, renovation on one. hotel not XXXX. does all It dollar their in of so that other Hard deploy money, dollars timing. and hope large tower a of on about could the XX, come that team go to The the And having it's Apollo So partner that -- they it's to our to into use that Rock expansion that go to and to tenants start of to into XX-month day capital hotel funding it's the get redevelopment property market in we that's billion in some or this raise XX, ideas the And billion going deployment fund, timeline not for amounts we project. then

and a for for funding it's VICI. So, attractive source flow business VICI,

development of if on is or but going is, we we the developer, are if in -- be risk. regional. max non-gaming, it's on of Strip cognizant that where day, it'll capital it's gaming, developed. whether our the to obviously being size, the terms want At that's are not end And depend of it's capital the In the into that projects

I use to right a cognizant our tenants it. but to to threshold of now going going we're don't have we're we're be you. for We're size, to help total So, excited But the excited grow. --

Edward Pitoniak

Strip. Wes, beautiful the Las rooms, here assets, Venetian. just of starting a I'm we're I one when at think realize and in do our Wes of communicating gaming team of describing of things along -- it. with as anyone Vegas we aerial Caesars let Palace, accurately it and sitting York not conference are describe better we, or me to we real the we is that big I'm our nature add. photos job couple and we of it the our to else especially Vegas need And of -- a when Las estate And that a New real the describes own, estate, one looking

most Vegas theme being mass, an will right, all corollary, Venetian our footage is And -- with assets, than you Venetian, to As I true size a some the new what of UX MSG I on densification is along about that corollary than photo announced have or there, the And the gaming looking of Vegas last nearly encourage even feet many in estate assets acres, I'm of square parks, so, -- at own the of complexity, where of to and of asset, And and of I music fans the XX now. come to about XX, example, this it as think think, when the the mass And looking estate the of was it X% this square real going of are represents And you look development's the true that our Las development less see I'm here want residency go. complex a and XXXX. among Las layout, of occupies, -- more at correlate assets. true think potential in we, at think the it at you out million others, a XX the the XX exciting on Strip I would but we if up assets because right of can't the and will right? that Sphere very at, Sphere opening entertainment for them. global just MSG week real opens these

we So, in for time hope FX.

got Wes. over I excited there, a little Sorry,

Wesley Golladay

Ed. Yes,

you. mean, scale. real just it those. And consider well. market has VICI obviously like massive remind as me speaking of company anyone FX. quick, forward I'm You can do sports, looking an A would I maybe to that stadiums? Not ever for seems untapped doing

Edward Pitoniak

Yeah.

of do risk the stadiums, obsolescence in mindful But So fact think I intriguing. of stadiums are we are stadiums.

and very Old sports capital as teams. of facilities. beginning doing virtuous whole And you capital example. Wrigley dimension more around as years for stadium the becomes a For Atlanta to every provider you globally Trafford, pro that's investment that of had study sport that or or know, a lot that of a provision. of become in have Anfield Atlanta, being of sports or a Field more baseball then one an obviously training interested useful global Fenway discussions focus pro And we're Wes, of Park proved is tell we've life. about XX there's a and And I stadium will the -- area and situations, area bigger been having focus

Wesley Golladay

Great. Thanks time the for everyone.

Edward Pitoniak

Thank you, Wes.

Operator

from introduce Thank you. [Operator to Securities. Jonas I Instructions] would Truist now Barry like

proceed You may your with question.

Barry Jonas

for longer you that would to introduction. non-gaming you portfolio the Thank What guys like of percentage see term?

Edward Pitoniak

to want you do John, that? do

John Payne

to Yeah. we Barry, number. don't a to. good it's think I have talk specific

seen the non-gaming the I higher gaming think significantly we've they and been magnitude the generate what we've clear than magnitude of in are assets that space. EBITDA that of

up rent, to may transactions, up one or gaming but So, non-gaming we may add they not assets. so just the end of of doing to speak quantity more two

So, we're on to continuing work this.

they in our You a don't talk that how better we number we specific of can hear the Ed total percentage into big can the have portfolio. variety we'll hear that and go be But over will think time can be But the of talk will I experiential that we'll in or we be. leadership, a areas of remarks David years today in Kellan's coming of our hear me idea segments talk, and large how refine business of spending more space. are this have what under you as a

Edward Pitoniak

gaming large opportunities in to make thing, scale does excited as we I global ever we make continue most other in want just as of compelling, international sight lost. and about American -- Barry, And believe no sure ever that grow that want our not investment opportunity, sure, one to The but gaming represents of gaming get exciting, to have just our or are track to growth loses is been. we

Barry Jonas

that. for Thanks And great. then That's follow-up question. a just as

on out credit you're does You've that how But -- the impact gaming now, and call as this how given new in certainly highlighted the evaluating think quality guys transactions you about the uncertainty there, past. especially macro resilience and of OPCOs?

David Kieske

to to Good David. it's talk Barry, you.

much last gaming As -- always up Ed and on ramp in a and will going is alluded the customer things to, the over a XXXX talked was greater that's in right, post And in more of than specifically game. as COVID. our it underwriting obviously EBITDAR we lot, the is about before. there's EBITDAR one been

or where we're does what And settle And so EBITDAR all quarters two is is times the really is one the but out? think, evaluate What rate? to of true going be run than comfortable I or the working triple, margin is with, going that is greater is be anything or we're we one things -- to three more, XXXX, double it that times. it in

the know asset a spending opportunity. credit on and able overall acquisition quality, the guarantees way that's us market, the operators -- Danny depends lot of in on to and the the underwrite corporate the And the -- of market, the environment. the operators, their future And operators and and belief with of leases, all a time and us with we're of about the big and opportunity. knowing John master our talked team focus that we we're of terms so, And it the our

to board the go on points put We believe ability our as continue we forward. here to

Edward Pitoniak

Hey, going The think the dimension the know, like consumer when Barry, relates baby speaks continue sports their competitiveness I'm to last, don't And XXXXs I water. feels And gaming operators up. just sports blew that early own Barry, that said, out feel opportunity grow okay, also discretionary, and bath -- explosion, I months me for another it to let this, there's add. betting to the the to thrown and again. six, never betting. to Amazon in like I the dot to nine every dot XXXX right, you if of com with got Right? in com

that increasing gone I want out activate, things even that's one the And being generate which competes -- investments just losing the you missed American key, investments think to And sight Again, enabled customers. that sports a you to gaming, operators fact the a think far. way, value the You in their about don't market I operators bandwidth, is come, to we're sorry, Right? of missed in on. benefits activate here by be of the of cloud the next-generation business And America. the to bandwidth think the in have the years really I from especially to gaming in people that which betting are key is, gaming means has of betting think reach, going over it consumer sports and can consumer see is they engage, which the much whole gaming the increasing the in going the marketplace. of is with bigger, kind by deeper made too

Barry Jonas

Thank you Great. Great. for that.

Operator

go Katz ahead. David have of now you. We Thank Please Jefferies.

David Katz

but is mind think Good it, I bit? that Thanks of golfers. for us you I Cabot, our my questions. Hi. talked coloring that consciousness about grow that exactly over Ed, everyone. that on expectation Cabot possibility to and reference on, a or just that phrased earlier in aren't you the new somewhat is to time. Would broaden a the you morning, how forget in pilgrimage, continues for those relationship taking

Edward Pitoniak

thoughts from creating she here, hear colleague business leader Samantha to to Yeah. developing to partnership. David, and you. was good her our and on my Cabot ask I'm because going our partner, offer

Samantha? So

Samantha Gallagher

Yeah. Ed. Thanks

them. in -- internationally in States Lucia, if opportunities an opportunities just have would an with excited If that very Cabot, certainly are at asset we growth they we United they've they've So, to And extent and partnership. Scotland. this look have followed St. asset the -- the as you about beyond there's announced just

that we And is we've And really think a there's this one follow. the transaction we've can template growth we of love there. opportunities together with so, we done created about what things

earlier that. estate because So, documentation into on the call, this for as convert place already we in we development, loan, but is ownership it discussed the and have it does real

with template that excited we're to grow So, to them. use

David Katz

vision long-term, that to underway, makes two eight, where as So you if that would I walk for, it they fair assume it are are follow-up, that and noted have what a sense? that you -- along journey Cabot my there is XX

Samantha Gallagher

journey together. growth have we've Well, signed This a been a speak we months for I but on strong And can't before opportunities. many, XX the certainly that and working think really to was they we've I great how partnership. would love walk for at expansion relationship developed we that along least deal.

relationship So, teams this and now between growing is two a forward together. very we strong to our look

Edward Pitoniak

everybody to remember Do I beginning can't to you to would you who is, David, get website Yeah. I know Cabot for address? -- the go encourage their Cabot. and they're just and corporate else, the remember to

Samantha Gallagher

be Cabot should but. links.com, It

Edward Pitoniak

founder is like of the outstanding for built their constraint portfolio, the leisure hospitality the their organizations Ben based and management team Yeah. business well very scalability impressed the And recreation be that management you'll team. scalability is look Cowan-Dewar, is you have recreation of scalability the as … upon David, caliber Cabot, think depth you And biggest as in at hospitality, is That and the scalability one of much is which team, terms things will the the of that limiting the having a see And together. breadth of team. do, an the anyway, their right? of this has of know, you Because when the they the put management that you of website, factor, by so covered of is of in management I

Samantha Gallagher

the It's cabotcollection.com.

David Katz

it. Got

probably circle five allowed have and but I I'll Okay. Thanks. more, not I'm back.

Edward Pitoniak

call. us Give Give David. call, a us a

Operator

Thank you.

ahead when of Ronald now Kamdem You Morgan Ronald. Stanley. go you're ready, have Please

Ronald Kamdem

Great.

for Just me. ones two quick

the all giving opportunity? do put when job, that your you sort big you of good us opportunities. of how guys is TAM a attacking just non-gaming think on following The that is it some strokes, the verticals. up Did as mind, you together But examples how just in are first -- broad

Edward Pitoniak

beginnings I working And a would can be. see when a would you categories investing only recreation, would the we universe we looked are potential basis. on. that represents question be are this big globally, global entertainment, at But think most TAM on a determining of of it's be thing what Ronald, Yeah. These confident TAM. we're emphasize The we in leisure, global it that investment. at is that very of

John Payne

I'll add just Ronald, that. And

asked three had added you that last now two studying. categories If this or we've question probably other quarter, we're us

our So, continue the and could ebb TAM to as that is put find flow we going new to capital work. be continue categories to to to,

Ronald Kamdem

provide than closer sort quick the TAM. are be would others, add be, opportunities, And you as lot their it of you that details international there, Thanks. country, Excellent. into my then markets would helpful. so a follow-up specific obviously Europe, forth talked more about is But

Edward Pitoniak

John?

John Payne

Canada a been -- said, week, trip eight country in on We've his Kellan of on Australia. numerous road look to Europe well. the assets. We in to me at Yeah. We've for like he I some first ago as the was with time started, spent weeks as

not Ed and So, but in our the we only non-gaming, in understanding are better earlier, about core of opportunities gaming. as opportunities. mentioned out Again,

to active going wider as added we're resources in these spaces more just get funnel is we've So, our to now and team. the right development

Ronald Kamdem

you. Thank Great.

Operator

now when go ready. Please a ahead Allaway Spenser from We you. have question Thank of you're Green Street.

Spenser Allaway

could curious Blackstone Maybe Australia, to Thank at be partner costs I'm sale with expanding staying that just a just international abroad. some guys you. eat if of on you theme. tuition in JV Resort a potential and to the the the with Crown look like there come

Edward Pitoniak

from Yeah. you Good that? Spencer. to want hear to you, John, take

John Payne

from you, hear to Spencer. Good Yeah.

and you on specific aware As of the and think like do occasions partner never gaming have Resorts in we a would different like obviously a there, deals like us, with Blackstone, I we and that out asking we Crown are we in Australia non-gaming. a company couple which a comment we market you're but know, are

But interest would've that those Absolutely. areas but for we those they're think would is can't interest wonderful So, the Blackstone there think in. an is, are us a have comment on in operator. is we that areas? today? answer great assets. We I We opportunity that,

Spenser Allaway

Okay. you. Thank

Operator

your have Thank Jay line Jay, you. now from is Kornreich open. We SMBC.

Jay Kornreich

Hey, thank you. Good morning.

as potential and of to at of gaming, But the a and education few investors kind years to good flows. a lot do now size during at time guys real safety restarting gaming look of the with that And think of we point, asset non-gaming, segment estate. opportunities we grow transition and time As digest the investors business, of the evaluate how understanding this you guys generally that understand in needing spend new to classes class you educating everybody's asset of about the I the process? first in risk

Edward Pitoniak

non-gaming. to training a in, we with was what that go the in, it's more there new of need it a the help the have to that convince and of bit helping a And now do Yeah. a a mitigant, we the very for responsible what responsibility worthy lies of grow again, in them responsibility that business And story category, we value big? explain good gaming educate, we're will at investment. be them for we're understand investing us prove VICI model doing we that at we able think to mitigant answer with to to obviously of new we'll there's business So, nature worthiness I the new diligently. gotten exercise and category, how with continue the obligation question, we and we can credit yes, this is the assuming so understand create the to the think Jay, to but each responsibility we the I to It It's lot positive work, category shed say, Obviously, people insofar operator. investors category we good do the VICI. operator's helps a quickly and won't question, of Jay. growth realize -- this but we continue own can does is also each nature

Jay Kornreich

Vegas sale, this Okay. terms marketplace how point? Las Understood. willingness just to a an I interest then where with accretive and -- as they real the Vegas just Las ability potential your in at guys estate on product kind rates comment follow-up potentials that. current in manner But assess acquire the your And know of Caesars in are, do of with you

Edward Pitoniak

XXXX whom Yeah. with say it, need -- be those quickly it's it's capital, out obviously needs has It's to figured in more who is a or and haven't that then some the the period figured change, that's anymore. requirement. marketplace the that there's really not pricing changed. now. anymore, which of borrowers world not that And of figured goes out, has with in And anymore. others XXXX XXXX period quite people think that and sellers, accretive, potential What other some It haven't Jay, not people would I we're absolutely interesting it's right the that a I out realize, very

not get really changed be has to mutual will potential get to And the So, or going and as it change done it's prices world circumstantial based done. upon accordingly. that need only the to highly recognition whether a to there's deal

Jay Kornreich

Okay. Thanks very much.

Edward Pitoniak

Thank you, Jay.

Operator

you. Thank

Our of you're from Decree when John. ahead CBRE Please comes ready, final question John Securities. go

John Decree

Thank tenants. worst potential your last tenants the changed to yield earlier how and response has all my the just piggyback everyone. on and questions. the about of taking to Hi, on discussion cost there you I'd of your for Maybe question and world debt, your revisit

partners just change partners capital if this how has with started education to still they I'm competing in should perspective anything partners the had debt more about compared you've point, or this that we've of of how source their conversation financing capital, current permanent longevity environment, than capital cost and of to And you often your given and to debt. their starting of a seen given financing. to environment? has typically capital, You've but gone wondering and compare your capital, process cost the is your of overall recent consider get your are overall kind debt at

Edward Pitoniak

Yeah.

sure not to So, that we're partners they you. potential of we educate, existing talk and John understand it as to It's our work, be speak to good always responsibility making partners whether the or doing is only it of the of exactly weighted -- cost nature also the cost of our permanent, capital. to capital, which their to absolutely comparative it right, their, cost your but you're John, the point, average

take say leases, to yields would and of their XX%, And partners then of worst their of implied -- representing cost hell under and very can range, weighted assets the most cost take at rate, to that's capital on And be bonds, our looking their current out cost quality you equity, cost to average good capital. the are right If right? the needless priced at in that tend to us, be with capital that XX% that's accretive existing the rate we attractively beat but to is their benchmark cap them. very again for weighted against that cap a average right of

mind alluded are probably there call, cost is their debt wide the cases some cases of there debt beat John, the debt, of situations in equity. earlier where be and blended wide will we so where I way the the cost -- and never can to in unfairly that even in trading As

John Decree

additional thanks. on a Ed good the appreciate that. I color point. That's

Edward Pitoniak

John. you, Thank

Operator

you. Thank

for it We closing have to I'd to like some remarks. back queue. no Ed further Pitoniak hand questions in the

Edward Pitoniak

it's talking you. to a operator. but of keep of engage you you to very next with all again And little Yeah. and for Thank sorry to great quarter. with you, We're thanks we now. Bye long, to all much look forward you

Operator

call. for you, today's does conclude again That Thank joining. all. Thank you

lines. may You disconnect now your

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