VICI Properties (VICI) 2 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Samantha Gallagher	General Counsel
Edward Pitoniak	Chief Executive Officer
John Payne	President and Chief Operating Officer
David Kieske	Chief Financial Officer
Gabriel Wasserman	Chief Accounting Officer
Moira McCloskey	Senior Vice President of Capital Markets
Anthony Paolone	JPMorgan
Nicholas Joseph	Citigroup
David Katz	Jefferies
Todd Thomas	KeyBanc Capital Markets
Barry Jonas	Truist Securities
James Kammert	Evercore ISI
Wesley Golladay	Robert W. Baird
John DeCree	CBRE Securities
Haendel St. Juste	Mizuho Securities
Ronald Kamdem	Morgan Stanley
Chris Darling	Green Street

Call transcript

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties First Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. Please note that this conference call is being recorded today, May 2, 2023.

call Samantha the with General turn Properties. VICI now over Gallagher, to Counsel I'll

Samantha Gallagher

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

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

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

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

to public with please to company's refer For non-GAAP filings of counterparties, and/or SEC. the additional measures information with certain respect tenants the respective

provide Operating Gabe Moira of opening open Senior Chief remarks, to then John we the will Executive today, Accounting Officer; Chief call will Ed Financial President and some have Officer; Chief call Wasserman, Officer; Hosting questions. Kieske, Payne, Vice Markets. team Chief President and David Pitoniak, we and Officer; Capital and McCloskey, the Ed

call that, to With I'll Ed. over turn the

Edward Pitoniak

morning, Thank and everyone. good you, Samantha,

my you Saturday hand. telling to how mornings by I spend in tend today start me Let espresso

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buyers. between is be would commercial dispute In and/or to asset and real pricing estate, subject be sellers murky would

was burner a real result, on. Commercial down a barn a was estate trading March XXXX. assets or XXXX not And of trading in XX% year-over-year whole going portfolio lot for it's like not real As estate there's trading. nearly March

doing VICI? starts investment what growth visibility current Our we're and in What doing activity. does how all we're this thinking earnings state and uncertainty and for our mean with at of low thinking

XX.X% of QX specifically. on XXXX, VICI will REITs generally AFFO night's per share, XXX we be S&P last among that saw for REITs highest release, earnings the and generated rate for you a As growth we believe year-over-year

view, so VICI's at kinds AFFO season, XXXX it's current not earnings. negative a earnings about running for XX.X%. take X% to far year-over-year about in is And again in QX S&P broader at But growth growing earnings, our companies XXX versus QX growth earnings it's only of all growth future

And have in Along equity our property million a of that dry of and newly on of accretive to more we amidst environment, and that this John having within allocated a with unsettled even $XXX lending $X.X and line been capital QX, moment. and investments, thanks forward billion equity cash. of total powder, compelling approximately we experiential allocated even incremental million billion approximately trading in to QX, which $XXX murky capital have $X.X will detail in

with from revolver VICI funding doing and of presents we've that of current the done capacity, on if $X.X billion like we what environment. Combined to keep place seize an this, the uncertain further undrawn itself we time at during this Most in have opportunity beginning. in all, opportunity

building the AFFO when partners that ago in reiterate, are on in with we and would by we in turn of we who the in the the end our our announced always capital as $X.X evidenced our did are billion on beyond. vein, XXXX. don't we XXXX, to in of Thus, are which tomorrow, the fact is again yet that XXXX jumping immediate These work to growth in we past. We about compelling, grow Venetian being good future, measure, In QX newly is have deployed result suggest And the VICI produce relationships the that that deals relationships about as VICI growing I it into don't to think business. has of to at much in growth John MGP are that and opportunities have doing XXXX those opportunities is, mean our those potential many to working noted expects XXXX up relationship in years XXXX. transaction, not

in net REIT percentage working triple asset American fee. a loads and as assets. management Think revenues with lowest of G&A as or intensely of a management are our we future form G&A the of of our in for of the present Finally, one

understood Our corporate fund. VICI fee X.X% in that management manager at historically significant this an a of for VICI you a That's produced very index asset fee as assets of measured about would way, you passive by G&A, investment load active expect under runs management. With management from X.X%, get has outperformance.

you share been John? now I'll he to have so call with to we to. turn kind activities the of that are John and up up can what

John Payne

Ed Good everyone. Ed. conditions. quoted Thanks, Shakespeare's morning when current market to describing Hamlet

appropriate X rather years VICI the harder it get." work, Coach you volatile functioned Lasso last of quote to has said, thought through the I when Ted market. great, would a another how Lasso, the be you So team "The luckier describing

come the XXXX, net which work in for transformational one largest together which We REITs. saw results the becoming VICI was we doubled our triple year scale, of of in a size that and

the markets. other just Ed transaction Canada's its gaming in the are as laying in the Gaming sectors. experiential first expansion next is one Alberta, noted, and VICI's globally XXXX, Canadian quarter, year and we across for international of with gaming first Canada, groundwork VICI of on top In PURE many which domestically phase closed

the great be as the investments we presents thrilled transaction VICI international it across explore an first as that gaming industry a industry. of will opportunity is with in that believe continues the the for U.S. This was our are gaming globe. first established Canadian similarities VICI transaction We Canada to many international the to industry many team

both great Strip. Las was the We This a important owns VICI also accomplished remaining the our real completed in with Vegas the consolidation this we Blackstone. now of venture with resorts Bay/MGM with X estate high additional A stake partnership our transaction, XXX% Mandalay example of acquisition XX.X% functioning Grand Class as goals joint Blackstone on and of

February a Vegas. traveled In of first which Reid million X is on ever, Airport moment XX% spend for Las XXXX. To over time February, Harry the through people above

all-time records all Our operating continue continue strong. remain segments volumes to to partners in and set

Our and deployment of very continue by operating and in a are Vegas group recovery operating and result to their convention the world. are sports entertainment work capital the tenants experiencing partners nice hotel is the These making gaming, tremendous strong occupancy innovation of business. our numbers the Las strong and capital and see also

with related businesses Oklahoma into Mississippi. they our expand nations, of lease to tenant as to proud relationship to enter the Nation in tribal agreement Tunica, Strike and Gold also We're adding the Cherokee roster Resort our Casino

also purchasing supporting our Hard of Rock partners are at portion a secured in notes We by senior the redevelopment exciting Canada project. Hard Ottawa new the in funding this of Rock

and some their across commercial support help expand are to the the nations to operators, as ways find American of The we gaming look the in continue they gaming best forward growth country. to tribal

believe fit Within is intensely nongaming Properties VICI studying experiential our team the investment with criteria. well sectors we industries,

sports, is the collegiate and destination-based theme with The ambitions Cabot Golf team relationship operators foundational capital market and Canyon forging build relationships preferred sectors, family various forms and We and their to entertainment, a VICI of many see we businesses, leaders other youth, continue to helped, professional health parks wellness, holiday meet and for in as to owners grow who and including and partner experiences. with those similar Ranch. parks, have

Great park For Resort. fourth and our loan in in their of Foxwoods presence to indoor fund our with partnership we Wolf this location expanded development with to the the water quarter, Connecticut Lodge

future we per to build help while goals, growth AFFO believe in of by at at partnerships same The expecting the our continuing team make growth of will time most VICI to share this of achieve XX% year that least pipeline deliver XXXX. will the us a

often experiential you've world. REIT over the highest As team the our laser-focused in not we're years, X past building rest on very the quality does observed as

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

David Kieske

started XXXX exciting several John. off Thanks, transactions. very with

the sheet an acquisitions they over to and on before move act us. as liquidity and the result years we attractive we opportunities at ability effort start be a that nimble Our of close come in have as maintained and to balance quickly the the of have these year built

the and cycles partners our designed on will and provide ensure the deserve. to that sheet focus important to equity and structure all capital weather We a to protection have as it balance we safety continue credit is

with PURE Hard closed an interest And a acquisition million by the to Bay financial we previously MGM of the Hard financing we own will four mentioned, Canada. Hard the issued as the partnered in large Ottawa Grand/Mandalay with Alberta, institution of we VICI $XX purchased secured provide transaction become redevelopment Rock in Rock gaming JV. Canadian a assets we of LP. John did the solution is notes for This Rock XX.X% complete what Ottawa Canada, senior on As in for the not exciting

Great sits addition, Nation Tribal Wolf Pequot for This In next construction a Lodge, with transaction the of million a Casino. pipeline. approximately for our which to of capital on the the total Wolf support to land loan Great Resort $XXX Mashantucket development commitment a Great we by million fourth development announced $XXX.X represents owned loan Foxwoods Wolf's

net via re-bolstered we settled of approximately liquidity sale the through these $XXX.X million million net X.X approximately agreements. we sale million. of January, for forward On of our available April equity physically shares of raising In X, million XX.X proceeds proceeds shares $XXX

today, here credit available this from Ed sale sit in facility. January the we cash, forward total and the million As $XXX comprised of approximately in liquidity, approximately As is billion $X.X under revolving agreements proceeds we $XXX of mentioned, availability million of $X.X have billion net

In billion, which JV. the Grand/Mandalay that debt of is of total consolidation $XX.X $X terms full our MGM of the billion Bay leverage, currently the the encumbers CMBS debt reflects

debt is today. net X.Xx adjusted Our to EBITDA approximately

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

$XXX.X Turning the the quarter the statement. quarter, an ended QX share for to an the million AFFO per compared was to increase $X.XX March XXXX. $X.XX over was XX, of of quarter, AFFO XX% for the for increase income XXXX. XX.X%

to and during Grand year. of disparity raise growth equity a primarily As the in Bay acquisition this of our our AFFO during and Resort last issued increased the fund share acquisitions per QX to reminder, Mandalay to and our AFFO between count, the growth of MGP an Venetian shares quarter and is consummate due overall and MGM JV which our QX increase share from

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

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

guidance. to Turning

and and as are between $X.XX year in per absolute We $X.XXX for a both well billion AFFO reaffirming AFFO or $X.XX XXXX billion to expected be share. for on per ending as XX, guidance share $X.XXX XXXX, basis. diluted December is between the dollars common

any the from transactions, guidance final not income nonrecurring capital announced or transactions. interest have from markets on unclosed other or schedules, acquisitions draw not results dispositions, but future Our yet that impact possible do does activity include loans operating any

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

With for please that, line questions. Elliott, open the

Operator

[Operator Instructions] from Our Anthony first comes question JPMorgan. Paolone today from

Anthony Paolone

relates discussion the for relationships future question your building My around to first pipeline.

the at emerging a in a be even or flow seems I as on sweet where so comment wondering was of different you're deal region size the looking if a that's type not there's whether world perhaps for the And deal you spot to sort pointing. can or certain of things

Edward Pitoniak

[Indiscernible]

John Payne

Do to you take that? me want

Edward Pitoniak

I John, go what? Sorry, now? If -- to John. can just ahead, hear me Well, you want not,

John Payne

you, hear can We Ed.

Edward Pitoniak

very was the say, make that. Yes, I also the But ones a can apologize relationships existing strong to all his going VICI And that for fantastic work our in we call sure ours. honored hard productive time. When I being we to of Tony, new work are Halkyard, thus, rather night working relationships, referenced obviously just we're on last partner were on we be. as and at productive, they earnings MGM, Jonathan mutually CFO

our is But growth So terms John? existing it in say turn of relationships we're that's future the which of big from, very other tenants. over terms come with focus building, I'll to a to in where John. can

John Payne

won't I Tony, relationships Yes. about go into the building. specifics we're

did -- small. just and the started asked since we're just to the are of been use company continue relationship. one the I time, mean, when about then industry, at size We the -- how studying that look build we use We Maryland hopefully, Century over the that's countries just something deal. But around example we world. a we in I'll gaming, I deal announced them. And with we've the we'll

are may small," So that by partnership itself relationship, or we get but of that over the really smaller a that a "look there lifetime think a deal times will larger.

shareholders chalking are the face are that for up for folks accretive. meeting traveling And face so we miles, our opportunities to world to find and company and our

Anthony Paolone

last as things the been a quarters. just considering a us Capital you now? as Okay. what maybe. maybe markets yields or can are And John, the have to you're sense give over follow-up Like volatile on few months brackets the for right

John Payne

at creating and I'll our let looking wide a we're thoughtful countries we talk been I an sectors. we're in different David take of understanding Well, question are non-gaming. could as gaming back about We capital call when have of in the just of investments But years the variety when rest that we cost getting making or how and sheets. X spreads looking at domestically. sectors, gaming opportunities would Tony, easier think, ago, were probably But at look we term

touch you on a So well? to little as bit want that David, do

David Kieske

paper our to and in cost get held -- of right to Yes, to, large every going X% we costs, with question, XX%. good XX-year saw talk for Tony, to I blended do And share financing an around that rate. we've capital financial that out probably price is some our has not mean, ahead and we during you to put a be happy today. the as yet. John. of at But focused a going partnered is institution of quarter, is spread to XX% we're deal a are I'm here just on to capital, piece say to our

deploying adding capital over cognizant more time of spread with basis past investing Canyon. very that phenomenal a phenomenal on in generates while we've real estate we're Cabot done confident we're there's like And just partners risk-adjusted to relationships and the growth the So and come.

Operator

comes question next from Citi. from Our Smedes Rose

Nicholas Joseph

on sources do your it? that Smedes. How with to traditional relative the following of look you Joseph as you Maybe of capital comment. competitiveness capital to cost think of actually deploy here up Nick up about It's last more

Edward Pitoniak

sorts hear controller? from equity to good to By available the you. and capital, the Nick, to you are And financing asset debt traditional of referring

Nicholas Joseph

Exactly.

Edward Pitoniak

Yes.

operators So for well is And to quite of well been as made clearly, a up last the has lot -- be into back quite of know, a the dormant and who well credits. into high-yield year. market landscape you experiential this really high-yield while going now, tend into continuing year

has sideways. cost it is of the credit at the to and cost obviously on best access And the equity them of many So somewhat for of widened. has limited

onward, we comes are of perhaps it at good XXXX, years compellingly in a under that look opportunities, that and financing funding operators when even past, we virtuous operators who we in any we refinancing for should other expansion as more structures may the facing few sale-leaseback maturity of the opportunities expansion as walls do be debtors pressure. or many through about debt either to XXXX kind think, have refinancing come can talked So next roll-up source the

Nicholas Joseph

different And then the Canada But further similar and regulatory you as Obviously, about other think generally about is political kind international pricing do how you think or from expansion, to just geographies countries? risk pretty on expansion. U.S. of

Edward Pitoniak

David?

David Kieske

Thanks, where where markets. across funding currency, where favorable time Nick, tax the looking political there's We're jurisdictions, you. good favorable gone spending there to favorable to favorable globe Yes. and Ed. REIT others -- regimes, regimes, talk friendly have

So you're right. absolutely

team lot of that to the have right institutional and Canada to set generate and abroad. protection training that up minimize speak, for and so up how how potentially got will a I set Canada, learning as wheels to structures, knowledge income with our our we we ensure around leakage list mean the lot developed time of institutional we spent on, in a tax

the would sure to is is we so and to box, to significant spreads generate there black goes cost speak, that the need into And some that risk. capital so leakage. tax to There of because it we make --

And estate make the quality abroad. and not But sure folks the so the real every come potential the same. the credit partnering underwriting growth may and we'll deal with right future these opportunities that that we is are earnings of and

Operator

from from Katz Our comes question Jefferies. next David

David Katz

talked we've so I Look, bunch companies of our think to far. a

I the because them or past may your looking kind some several turn to consumer unique may you All perspective economy. business you months, And tenants. And about, close over quite indicate that just a have the John what sort know a of the in perspective of stay for of But seeing. a on the gaming in some if economy He wonder and I gaming you're talk side. what your is engaged view? travels that hearing can we around economic was I outside there's of anything think bit.

Edward Pitoniak

add we'll Well, businesses to very, like for Wolf seeing -- to are But that our very continuing it over John can demand. the Great like like Ranch, Yes. strong Canyon strength turn just in we're Cabot, reiterate partners seeing to say, gaming. we see example,

obviously of COVID still factor itself. pent-up exercising it, David, is demand the Some

talk millennials obviously the seeing of formation, moving we're But more as Wolf. years is and secular trends the also they which baby boomers business VICI, moving is the into into which evidence us like Great a family time about we in which believe benefiting aging you've leisure in heard about past, have we've at talked

confident John and their operators we fair are are outlook feeling our hearing gaming. I is say David? think, Correct, John, that everybody as in in and So non-gaming and to seeing David it's

John Payne

with and in get And discussions do we David to Vegas this really industry, our good better and They basis willing reviews going. would as them leases. us views of David, these view can regional we we're opportunity with more and share operators our to with And so to Yes, because a we are tenants us about with not partnerships, take because it's I the on now them couldn't that. are right? about do I XX our their how helps blessed call it informal Las form help have did in things how as entire touch absolutely. agree us what asked today grow. staying well And our operators, we quarterly a are very want tenants, on the

gaming growth the same-store incredible released amazing right, number. today, really it's adjusted across XX% And that's yesterday But Las I earlier hear sector, mean, in in an or results to Vegas. MGM the EBITDAR,

you operating our I when So we any with slowness And team, in in in sectors. ask of question, slowness there's your your seeing the very these do meetings are business, business? the little where

In fact, almost still in there's growth all them. of

interesting really markets business, Vegas. across their steadiness still are then and show So in it's many bookings And sectors. forward of continue regional the Las to a robust

return to a deploying, it's upgrades, continue seen it's innovate, partners of capital new needed so continue they're really deploy rooms the that have mixing et exciting these to And that have on capital. to nice Many cetera. restaurants who them hotel whether

David Katz

as Understood. follow-up. Appreciate it. And my

to or Just a there for anything very reading the real some press, lenders pools for smaller you this more any and strategy there Is deals account participate the and to of mortgages. estate of an alternative following yourselves given and circumstances, the of become in or to regional there that some you closely, out get approach some opportunity is commercial according there productively lender? way that, morning for, of to like position XX% and

Edward Pitoniak

regional other it need in I generally categories, it deeper. we've and question, on David, we their far, dig real invest digging are multi-res won't based like asset into office, really retail, what and seen like are would into estate a so to that and It's to lending lending we commercial in. good that categories banks say

get a categories that to I'm tended not on. focus in lenders So to that there's have banking regional involved sure direct opportunity

credit. there's do an opportunity everyone, I think is further in as evidence, tightening indirect of we are that But of seeing

and are to by the is regional tightening to going not classes. David, think, real estate the I we're done Ottawa, both estate and anything directly enhanced from that Kieske, us. Fontainebleau sure I'm as other see the credit very to be that opportunity because lenders David seeing, evidenced there opportunities, credit continue and real for believe going David have do by already team credit opportunity to acquisition it's we're Hard the for enhanced do add? going be work tightening asset opportunities we I enhanced conventional So of to confident Rock But credit. in of the to

David Kieske

it we our touched you think when lending we capital. I we about But partners I to that right lend think to echo ensure No, growth perfectly. where it's the on future strategic to seeing are book, could opportunities that, want it lead opportunities. potentially with

I level, look, opportunity think BofA's and around regional And and across at trickle have the for could us. lending the will But will That us the so to up less the that an the JPMorgan's the categories. bigger experiential and right? for banks, on board, create Citi's impact opportunities that

Operator

from Our question from Todd Capital Thomas next comes KeyBanc Markets.

Todd Thomas

question, First David.

mentioned X%. the incremental around debt think, company's I that of cost today, You is

continues about debt equity way you improve change on Does range, it, depending and the in year-to-date, that the how new improving. cost the that's your said of look rising is so to that X% you capital vis-a-vis, term? costs think is and capitalizing at up You in that stock investments, nearly near

David Kieske

a to piece paper. Yes, And for to Good Todd. XX-year X% just of you. clear, that be to talk

have So obviously, tenors different different rates.

we've sheet. our and our the a We highly in bring obviously portfolio little to delever company continuing that the; transform bit been to Post focused MGP acquisition, to elevated added phenomenal we company. that leverage balance highly, to on

X, in in May today year. due But one we have XXXX is XXXX as It's coming going sit as us up here maturity May XXXX. roughly a throughout And to do Xnd, and over-equitize you've into we transactions. seen

free And basis. continue fund look so on a add then leverage-neutral cash use use potentially to that balance things we'll transactions to equity, sheet flow to and transactions our those larger to the the

Todd Thomas

investing different at next of of on and couple at you're last the recent that the of you've the spread sort that you capital, Okay. few cost look And to over investments relative in you're ahead investment quarters? locked you sort out your over at pipeline relative industries more quarters that various look underwriting categories of to the as spread that opportunities the then improve as expect here will the of you and all do

David Kieske

point Todd, chime say I we pieces in. higher each real cost be and to mean yields. a lending start internally others But obviously, basis basis cap love Sure, the that of at we could print slightly estate have lot. lower capital. have value different. to I can of will is trade And mean, debate and opportunities could point, this of XXX intrinsic I -- spread we'd a our at XXX some just deal rates

so an XXX And the basis to ensure point that point and the on for deploy generate look as capital a XXX -- we are overall based for to blended term, -- our balance capital on that long on a we basis. generating want our the on we we annual over basis we spread yield a quarterly basis to that

time takes -- to slightly might is get a deal that want So it that can hope worth pipeline it here. relationships capital while there's estate real a to growth the build and take partnerships the we that we deploy can tighter the ensure done, the at we higher over spread sometimes spreads, and to deliver

Operator

Barry from Our next question Truist comes Jonas Securities. from

Barry Jonas

you new about leaning how loans construction developments markets, greenfield leaseback you think sale do say, versus about through, international of into When assets? supporting think more existing

Edward Pitoniak

risks start take the it to basically and then internationally, line David to have and the with we place added add need more say with around domestically. that to needs caveats compensating to Barry, we associated compensate would Yes. can tax. at fund if to our for currency development I'll that in. the in factors confidence is be that it We've funding I in international, confidence development need have even that

credit credibility of really and the the developer/operating But at the we're end underwriting partner. the of the day,

by if know to won't, Japan even that? other much But add we jurisdictions, that So about know underwriting David, won't I or be want do you April more it. to whether again, we're to have don't talking will Europe, I means, any rigorous. say, the we

David Kieske

No, think you I it perfectly. hit

Barry Jonas

from great. as about then I talk at seeing influence night and M&A a consumer more what trends a then But coverage dynamic luxury appreciate portfolio? properties. any on maybe And does just the I'm seeing your growth did just curious tenants. your perspective if its or this to strategy? other consistent And That's MGM last John, your follow-up. you're the extent maybe across comments

John Payne

just good a reiterating build properties the the where so well. kind of middle different to Again, tried the think Barry. the get very to tenants, we segment have sector They all be to perform we've you portfolio I kind continuing what It's a of And about having cater views. question, I then have luxury XX said to and we quite seem them. and different that

higher-end transaction, who a after that. seller that portfolio exposure, after we're as don't to asset be to move able team's on to have going fits we'll to is there's go wants to well. and his If there that our property, due David be a we regional work go if a prepared Obviously, where that

pertains But business, and weakness most where as we of the continue the get operating questions, ask to it seeing we're answers are to seeing Barry, the where strength. you

we're sectors. Chief reiterate nongaming self, joined And continue to continue a looking talking us this going are and monitor. Investment so Florio, and who business. a it to to that Kellan know we lot call -- casino But out Officer to I the as love about ago on is different at important experiential these it's our And and we've been year

with and We the continue partners are some as well. delivered be -- each quarter partners future amazed our that to results hopefully, by the

Edward Pitoniak

Ranch seeing to LVMH. I our across like Midtown Based Clearly, Manhattan, that. Yes, that. it's many the so to in are and luxury. and going categories, you're Barry, brands strength we happening Cabot of the where our so because consumer their destination neighborhood that's well are it's add is to I'll luxury globally doing over feels luxury of spending And by Barry, simply so being now partners these like just taken being one right of just within respective there and was sectors Canyon categories much effectively on reasons add in wellness. golf

Operator

question next from Kammert Evercore from Our comes James ISI.

James Kammert

capital you how real these in other of if structure just equity little debt terms sectors, I'm it the that looking such estate. about lease, think an that of benefit the adjustment as be cetera, estate you risk in et of might there fewer fair real for you mainstream and VICI When say curious of to a is to VICI. bit compared other advantage side gives into experiential providers

Edward Pitoniak

of Jim, yes, you're turn to over to be moment. right. just to John I'll Yes, Yes. Good Evercore. Well, absolutely all, a talking first to it welcome But you. in

is What REIT businesses of there's our space have to of considered across before that significant have prove dynamic source by we're a a out of globe call as landscape never operating before what visited been and that REIT a a experiential hypothesis really we'll undertaking really capital. experiential never growth white the

John because with of turn conversations outset, REIT it And told at having so to much talked that, these he John? which he's the a to over we've many has in pretty I'll before. never wow,

John Payne

Yes.

it's of sports, professional different In right. family of ways. You it, grow thoughtful come exactly the how collegiate, our in that whether and about them forms many could That's certain areas, Jim. these entertainment, with we're help a youth, many nailed ones have wellness, health in approach to capital first them

at of of three, the it two, we over and a remarks, explaining and happen mean can spend that four doesn't again, transaction opening a are, a different we first our literally to them. partnership. real build transact hopefully to help we who done, we so time, operators meal we've meetings a And have period depth a we can And about estate building has what It's together. how day incredible

of because effort calls lot where time hit noted. work see white taken because and space, it happy and we as incredible But and of amount a haven't But been to do just on that. Ed easy have the of and of you've not all that we're lot and it's it a it on this e-mails others there task takes

James Kammert

Or is just real their they visit they you plans, estate? before? as that plays capital future and can how this think their And were where constructively do Interesting. they thinking curious about growth just just monetize how I'm getting they're more in.

Edward Pitoniak

early offer Jim, partners. can private XXXX, the Ranch Ranch been back when in or they conversations and came I talking maybe Well, equity began Canyon Canyon principally we an as when having example, the it with growth capital Yes. John to team whereby Goff with

with two, funding were their X about to capital; equity to years. number And the tend only of given perhaps the and horizon own partners X partners that what to private cost they was, capital, the cost assign concerned one, investment those the of number PE

cost and a And so -- that was our of partner and compelling Ranch fact at at want forever, looked alternative our their capital Canyon pretty capital the equity. when looked we our it to both offering be private conventional to

Operator

next comes question Our Baird. from Wes Golladay from

Wesley Golladay

Vegas the the have more is being focus off project I Strip? of the those kick just would approved got so Mirage more guitar the strong? in Property expect on that in recently And to recessionary be particular, environment, I question a with question Do The VICI that a was about you projects on Fund. quick the

Edward Pitoniak

John?

John Payne

Hard talk is Yes. you, that The spectacular. project Wes. taking Good to on the Rock Mirage to team is

with hear the hard but not the properties. the seen be I we've ways guitar think our different rock building, but love project a and only talk you'd term can you think through team, tower, of it, from that through them, think And financing our refurbishment they have that they're of of on the it. to land as the project the they source we'd organize thinking of finance with sits to whole footage the I details longer for and directly to

buy throughout with tenants fund our we've the our many how in projects to grow how or can assets operators existing certain talked help and And help monetize whether can is we larger we general, someone else. help assets XX them on them

well. conversations those to continue we as have So

Wesley Golladay

the If plans to Okay. down have strip? just from the a are. a what follow-up. little get updated the least reports of for you going land guess, I I age street that's you move parcel, guess any, parcel Do potential the on land bit is I at monetization could

Edward Pitoniak

John?

John Payne

the many own where putting MGM exciting exciting it thinking exciting most know the stadium. and two two As and we VICI I let about of to there's operates. the it's was MGM and heard right announce, sit exciting, that guess, Well, almost that’s the across they resorts -- are companies, from when I

sure another in plays Super how adding sports is it by continue capital that year. to coming coming the out. later team. see Bowl's we'll But next So the FX is helping And the year. Las world now of become Vegas

excited. be So we more couldn't

stadium to as more that it provide were will built and certainly well that's opportunities and land does valuable, undeveloped new asking throughout next think resorts be you're current have going the the we as our that to sit make And our properties to we the city. the

Operator

CBRE. next from question Our DeCree John from comes

John DeCree

covered Good morning, everyone. one a of ground. David, bit We've just you. Maybe me. probably for quite for

wondering know could can footnote read I for you various you have does And let that? think that in was Caesars outstanding you in the much guess, property us confirm commitments loans? the how if footfall is, repaid in And loan then that that presentation I I Forum X the May. that was all? I on a impact at part unfunded

David Kieske

Yes, John, yesterday, Convention actually good the that to footfall. to We repaid all principal. extended could outside we the XXXX you. $XXX of change actually Caesars Caesars talk the is Forum This Center. million It date loan Caesars to call doesn't when deleveraging. part

continues to tenants to and that that So we're get stronger, back. happy our make capital

up I'm follow don't you front Otherwise, right I in or total you. of that me, with but that happy have handy. then if can follow up And we with commitments, John, have you the Gabe, to

John Payne

million XX. commitments future are of March as funding $XXX about Yes,

Operator

from next Our comes Haendel St. question

Juste from Mizuho.

Haendel St. Juste

know more house you perhaps how is, today I tribal meaningful land? if can't is to the get much current I what First in one get you could like on comfortable investing you there? the And guess involved how further and view own

Edward Pitoniak

John?

John Payne

question. three I'll in the today, Tunica in are to Cincinnati, important in on tribal Southern that relationships that Indiana. understand that's commercial properties, whether and our gaming Yes, nations take with It's

be think we've investments. and is partners question to make these potentially with land your ultimately to about partner an us And or something it their around be. opportunity with before, talked another on is going could I to tribal for partners there it's

if time, of investments. on earned those and their enjoyed they're interested. we've capital nation to build not any and to made them this we're tribal help think nations to they've continue gaming, amazing relationships to our looking really that because and the tribal commercial that have at they're they're here with We will operators, But in casinos through casino deploy

Haendel St. Juste

made And yes, have And helpful. more. that That's there. I should distinction one

casino first guess, build was And the I your in the to You approved likelihood premium of recently read Japan's involved? Osaka. there, risk perhaps you interest require? would that in sort of relationship MGM given getting what what's

Edward Pitoniak

parties credit it lot Yes. project. involved. handle are We'll -- of Japan is low a in There's is obviously quite They market. a cost. a this big very the financing

help we we would If we're we be. help, off long so, can at And we're way them. if of we help knowing them. I'd Now a always from point how be here help But can will say this if to them.

Operator

question Our Ronald comes from next Morgan Stanley. Kamdem from

Ronald Kamdem

ones. quick Two

sheet, assuming Where to just on growth to remind the organic you the us X.X% end Can year get the trend more one I to debt of number? Just see growth the to to no the or And the guidance. deals? implied going then EBITDA. that FFO is what's that on balance by

David Kieske

Dave. it's Ron. It's Good to you. talk Ron, David. to Hey,

In of we guidance, have our terms escalation. base just

tenants. potential other or other asking. for X% changes, you're if of X.X% not economic for We some what assumptions Caesars, the So bumps do CPI make that's around any

terms yesterday. X.X% balance came the that today since in cash actually sheet, Caesars of in then the And we're from

little quarter then see at where just of balance we at So business lower end. X.X% And a by of X.Xx to trending about bit quarter to on that's That we're kind cash X.Xx, due the trending. was year-end a end. based

Ronald Kamdem

then of of helpful. what is attractive, structure, anything be I And attractive, just more experiential. sort parks deal the as what would deeper sort questions lot a highlight markets, being geographies, there Great. not last on theme a just is Is all one, and what of open about way to dig in talked just to and sort

Edward Pitoniak

Yes.

lot to their that So is think complex appealing P&Ls them asset. is the relation parks about value high regional plants theme our of a complex of what's big as capital the with what's, it large our appealing in about have frankly, Vegas productivity comes I frankly, physical generically, which economic and large well, when Ron, assets to big Las assets

very work often than are And at discretionary Not theme that that we used large. parks consumer category an four which at recession. of is believe cyclicality tick we in. which luxury in I investment look affordable we're boxes ski in parks lower Theme any to looking times average resorts, for unlike the at,

not There them. to they've generally deliver obviously than over, back four, a the generally or the are big finally, to is balance. late of their people threat frankly, There's not in since century, their supply-demand backyards of rollercoasters generally healthy a building are And durability an proven a secular XXXX. theme them fairs number then going absence having and park. Amazon building more People exhibitions

and players, team some Kellan their lot in that getting a recommend their So day to to we'll to invest needs and be continue And needs opportunities. capital or category. hopefully category. and the John able on the the know to work

Operator

from Chris final comes Street. Darling question Green from Our

Chris Darling

like better some focused recognize really VICI your on profile how of I is growing that of accretively. But to long-term I'd evaluate assets. existing understand the you

long you're So that term? can And less think markets about or you your when owning across aspect? talk you how you bit any comfortable look portfolio, about maybe then there regional assets a that for little are the gaming

Edward Pitoniak

Yes, Chris.

have of optimization we back in question though disposals. only So answer engaged terms years I'll the our John in portfolio we of because X.X have even beginning, is ago, that actually half our beginning since have,

estate to really in good contended question bring and that now a the fit and durability. quality the fit economic finish genuinely of to lease structure terms while we is because real and scale, to first are efficient a net of magnitude REIT A we've for and it's But ask Class what

don't our because asset, about than in to of you at, approach NOI around the term look same-store we tell and Las #X in to have asset continue when grow America, assets it in John And We've Las our years high And we instance, confidence to at economically moment, ever so when value, Street in look of our But Vegas assets, we neither Harbor, the will we sure that at part will anymore? MGM written in at assets last be great John, our like we These very for lease for talk marquee which best year want old. making its take and average as Vegas, nor XX come. National has these Green years. better do first weighted assets tenants you anybody. you want growth, decades just over look value will to about regional appreciate regional we got a had or year. be assets productive And XX in

John Payne

tenant Chris, constantly a we talk ago, come their our And touched "Look, Yes, about Ed years VICI said, very to, it's fit And on, started to portfolio. Ed since this our we've doesn't to a portfolio. tenants, Louisiana our in alluded we had as as good five partners us, optimizing question. operating -- that [Reno] we track

it." own the asset. You we've And worked together to sell

been situations we but it the transferred we've tenant and the out, want where to estate There's real wanted other and another buildings, keep tenant. and found high-quality

the business. want there's let's either to work we them So a that we'll tenant wants in should find this tenant our say, "Hey, to continue sell to let's this do lives that run doesn't business." with another if running just And be the holdco or over that throughout a business,

own we States other estate currently to do continue to the as real there's United are look are where states markets our example, in we'd diversify what thing many to an The portfolio. in. markets cities, gaming we With in, not and throughout love in we is not

not is we're in. We XX today, lot in markets there opportunity have properties but of a

continue we And then to other another boy, and be where, that. to nice there's markets have it would asset, do

tenants, that's over continue portfolio question. we good coming It's and very our our top the years. So optimize of to with have mind we'll something that

Chris Darling

Got question for helpful. me. And a it. That's very maybe second

with curious believe, I the recent Caesars development, Virginia. Just in regarding Danville, you've ground-up conversations any had if

that ground that, I think, given broken has project, now. Just

John Payne

just at as with Caesars. also a opening facility be Nation, in partners, got approval. a that they It's the temporary there partnership they're our Eastern the Band, run They'll by Yes, partners asset Cherokee other well.

ultimately the very the if have would Could do to conversations of would wanted be an that with estate over we be the variety And so in buildings? Yes, that. things. a -- monetize interested we that time interested in ultimately about asset real ownership would be we Caesars

that running, be conversation, it stabilized, And and first there's we that, we time get And look at. so successful, it incredibly up look a get and

Operator

Ed for CEO, I'll final now Q&A. to our hand concludes remarks. back any This Pitoniak,

Edward Pitoniak

growth dividend combine XXXX, is you of Yes. go last you guidance which call currently XX.X return. for of our total back is today, than and that to that, AFFO with stressed I Well, points XX%, which earnings yield, the that potential I'll February, time when thanks our little on your higher what everybody. the midpoint of take a our for X.X, around is for get at end back

the that in year growth generally And to up dividend is shaping just XX% you're S&P again would be not seeing REITs compare combining a which to and yield. more generally, earnings certainly and even X.X% XXX, what I

thank we'll and time July. for to that, late with in seeing you forward your Bye look today now. So for you again

Operator

now your has concluded. you like for participation. call to today's gentlemen, thank and We'd Ladies

disconnect You now your may lines.

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