Earnings call transcript Q2 2023

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Operator

[Abrupt Start]

a detailed discussion of the risks that could impact future operating results and financial [indiscernible] results, prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available on our website and our second quarter 2023 earnings release, our supplemental information and our filings with the SEC.

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

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

Edward Pitoniak

at of morning, excited QX be to you, share growth results Samantha, this among higher rates ratios, PEG yield ratios yet among PEG S&P We're XXX good and the XXX growth lowest per QX XXXX, AFFO REITs or growth of our Thank for the price the REITs. talk believe everyone. morning a year-over-year which XX.X%, S&P we featuring and for one to will earnings XXXX plus about

earnings with For what our the the give liquidity and course call, outlook of David updated QX and doing John you continue to will to year-end. our share on our results position, you strategically details will we're XXXX growth, our

conversion in Ranch acquire real Tucson on and its to minutes Lenox excited legendary the VICI's to as Canyon to whereby growth exciting to which refinancing Austin, to of by are Lennox platforms growth converting in stabilization. assets Indeed, to includes and existing well a finally, $XXX to upon scheduled rights, to serving in support an Ranch Ranch secured a Canyon resorts Ranch team key debt. Ranch million this Massachusetts. Lenox also leading the in we existing XXXX under Canyon conversion of million call I between to to a net BG Ranch's Canyon VICI long-term to the $XXX preferred the Berkshires in the leases. a bridge news refinance the CMBS company partnership estate last $XXX provide the potentially Canyon the intends new have Canyon Ranch for a Ranch a this identifying Tucson to net development spend provide previously mortgage XXXX resort This approximately beautiful purchase expanded operating own operate Lenox, the commitment Ranch Lenox resorts the our enhancing elements equity lease. are Tucson estate of the also Canyon say open The Canyon and which and of triple pipeline conducting with long-term call Canyon triple wellness Canyon conventional night of elect VICI acquiring And by digital announced million potential that as significantly Ranch and Canyon embedded financing With VICI VICI's will Ranch, right and as I'm assets specifically resorts of to Canyon Ranch now estate Tucson on and making joint for coming Canyon the with our funding Canyon with conditions, operating Ranch Canyon VICI's Canyon from assets. investment the Ranch the to to expanded Ranch expansion options announcement certain allowing under and of call years, is real sector. brand place-based with few of can that real up the operating VICI partnership of continuing strategy development is shared and owning enhancements Ranch with up the to subject

and locations, serves and internationally. we Canyon that medical a is through With invest has highly geography all destination only believe resort X Ranch nearly in holistic affluent and of and vigorously cycles clientele to operating significantly its XX services. its life positioned established experiences enhancement expand Ranch Canyon clientele years It history. domestically

are elements about excited the Jeff next And Resorts. expansion our expansion I with and both and expanded all Ranch's of ahead. network that John resort acquisition refinancing Ranch Canyon distress brand the new to geographically. of in Under to conventional to in Ranch Ranch and of less breadth, its elements our partnership and more fund years and help to is partnership grow and reach CEO, Both with could I [indiscernible] are John programmatically Goff through Goff, the performance Ranch, with energize poised years, integration most do of see the believe of We operating team Canyon the fund Canyon investing Canyon network constriction. the that Kuster, the few Canyon in sector leadership the and gaining do opportunity to

U.S. out the at period. on hotels have of this conversion billions through of and that due of within As XXXX. in than CMBS billion I our www.viciproperties.com, overall point hotel our financing could Ranch's and we pointed that, resorts $XX out will We should which And fraction found resort that's resorts more meet that be come XXXX criteria. can deck, during transaction only believe dollars, financing Canon mortgage those a from

thanks experience Canyon consumer intensity transformative resort resort, acquiring Canyon is of our a maximizing with giving be the of Canyon and our outlook Ranch Ranch's leads surpasses criteria. is wellness growth Resorts conventional in Canyon a model. realizing within are the generational. intensity Canyon believe of dynamics opportunity opportunity Canyon multigenerational and has economic a Ranch And Ranch for generations. in life its of the out of on Canyon holistic I the Wellness model time and to space, generational opportunity. and revenue and Ranch and to Ranch economic out, and indoors enhancement real Ranch to of resort last offerings. estate and centers built potential conventional maximization the model terms in profile generational secular experiences its senses VICI Ranch is guest growth growth a locations advantage value meeting multiple a experience secular potentially maximizing that competitive trend a in of the operating guest This of Resort through that conversion to Canyon of The the capital The to

value to come. estate generations At will and in VICI, we and grow many partnerships real invest preserve for assets that

generations of you does enjoy estate real multiple example With estate of spectrum by operators for VICI, that across grow XXX Canyon the serving yourself generations generational cultural sustain superb to of proposition. is the benefit partnership S&P get customers Ranch generations occupied enduring value of the believe the We tailwinds I value our real estate estate REITs, ask the high-quality you with will real is As come? and durability? the real a for and demographic expanded high-quality of this and look of come. believe And

to John With Payne. you, over that,

John Payne

quality point Thanks, Ed. Good the morning, enduring of VICI's on Ed an excellent portfolio. makes aspects everyone.

tenants' shortly. the gaming VICI. on and the gaming sector team emphasize focus as I to nongaming real business. build and And their of importantly, results type a evolve and their tenants and continues to potential quality which the for speak Our meet out to Vegas assets both our value believe experiential partners Las to credit, we come we will to innovate I These strategy of and in characteristics as domestically well. their continue estate. VICI, excellence Vegas operating the are we sectors, to and in ability at The touch portfolio internationally. core prove operational But accrues of of built continue operational wanted our to Las their that the that have our

with quarter assets in of into from X announcement our To recap the VICI continued Alberta. gaming second our of activity, its Casino Century subsequent and acquisition international Canada expansion

the the Resort Casinos. on Gap this also Casino We of again week, closed acquisition with Maryland Rocky in Century

grow with as partnership of for we with is and relationship example is place-based also both the for win-win businesses Century we excellence Our great operational look of operators partner a wellness. exemplifies type Ranch together. growth-minded a type the the of as Canyon

are As into as the deepen excited described relationship earlier, very to and the we expand future.

VICI a future at the all-time we They can in line near results expand find what with operators the operational pipeline reads we also their highs now, impressed you visible meaningfully "Another see remained component we can over we and assets portfolio each value partner of relationships look In to has be impact to segment develop allows our our excellence we or strategy quite as the find VICI performing VICI's by to we to continue right a traffic. non-gaming of to margins grow well to that time. deepen our across with with sectors. remains all-time believe and other Vegas and gaming is Regional gaming casinos Growing a as and sector core record Las that sector, healthy. other headline trust. In continue high-value partners tenants. businesses consumer our we a and approach they of This consensus." and sectors. terms seek It our more is enhance continuing growth into are expand in as exemplify record build as with into the but helps result,

industry gaming, where We currently assets of continue States. new its opportunities we do real the to as areas domestic markets estate see in the footprint United in expands not into many own including and

also this international with focused potential team meeting the traveling remain globe the year, We opportunities on partners. new

to and As evaluate of of in our both And with expanded gaming the ability funnel and to network expanded opportunities. those opportunities and multiply ascended VICI has added work in the We've our we VICI's help brand closely meet has opportunities. the as non-gaming. advisers resources funnel to force always, create

the entertainment best asset are at and level at the categories, fit can and in operating For moving with relationships. a growing level. into capital past level sectors category on discussions evaluation our stage studying constructive how and an nongaming, we various family and we're sports intensely Notably, VICI's

VICI they ever-evolving are find know, to you of to environment. of at and are success, an especially our excited time As best solutions take how the our relationships both we about sides, the that these capital We're markets heart cultivate as aim developing. in the relationships meet and economic goals at

has The years pipeline VICI the relationships growth come. in opportunities building a of multiple at sectors work and this team year, for been to geographies and across hard

portfolio. are with X.X the whom to grow results We evidenced generational our We VICI by our operators focused continue partnering and high-quality estate with tirelessly can to shareholders, best-in-class deliver real last to years. growth-minded worked on

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

David Kieske

leave remarks we questions, to want my for I liquidity on but keep I'll our John. and full our want guidance. Thanks, time do as everyone's touch much year as to updated brief

ensuring we on we to work to down X.Xx, for growth bring focusing We sheet have accretive powder the our obsessing X at fund as to of while balance range shareholders. leverage our continue times target to dry our are to the and back constantly

while improve credit our ratings are agencies capital working leverage cost of lower over for diligently the time, We our with balancing company. the right to the

in quarter billion approximately end, the shares under under availability comprised sale revolving we $XXX million $XXX of had to closing million of agreements fund quarter to our of end, sale net billion facility. Gap. under in forward credit Rocky proceeds liquidity, in of settled the million our agreements total forward available cash, approximately $X.X At $X approximately and we $XXX Subsequent

In terms annualized of leverage, approximately is adjusted net QX debt EBITDA to X.Xx.

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

Turning XX, quarter ended of the to compared for AFFO $X.XX the the statement. share per was to nearly quarter, XX% an for increase $X.XX income June XXXX.

highly increase Our again once given the results proportion a adjusted in as of our efficient in the triple-net corresponding EBITDA increase model highlight revenue.

the eliminating run XX% Our in noncash items. margins strong to when continue range high

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

guidance. to Turning

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

of deliver growth on share per reiterate, year-over-year of highest the midpoint based rates one AFFO to the of to REIT our brands. VICI growth updated expects Just across XX%, guidance,

any and reminder, a interest discussed impact any operating we've past, you acquisitions final dispositions, measuring inherent its our to our transactions, as guidance Accordingly, draw to our yet to structures, represents believe income due with -- leaves accuracy. of forecast basis performance -- and the reported that nonrecurring And announced from not transactions have us unable the quarterly capital we AFFO of FFO investments or as we and include focused financial productivity from do AFFO but evaluating in does product a items. as our not or unpredictability other on future loans way on And pay markets dividends. allowance is results CECL equity ability in activity possible unclosed with the noncash the guidance net income or best

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

Operator

[Operator Instructions].

comes with question Anthony First from Paolone JPMorgan.

Anthony Paolone

us give that the think transaction -- just out the Canyon around about appetite that is on first actually quarter. Congratulations do view around maybe to that nature? was and that, But Ranch. you something on my of would your question or you like Can a how Bellagio news on

Edward Pitoniak

John can of I can want we We chime Yes. start great and attempting that that at wish. how manifests to for. question they the level in I'll we us to and not in Tony, in David as care care acquire pay principles. and accretively answer take general buy what itself

And so the value evaluate our every of of gate. situation basis for we can the out straight create we on investors

magically can of a that. thesis dilutive model we'll we to management category going an get can based lease with. are I a outset in we net yield which basis into yield over we're on rent somehow is get where increasing obviously not Our a is that's accretive in But obviously and yield. escalation the going having the yield accept and -- live at going yield transform in on model we underwriting a the of dilutive the mean, time we asset to an go yields

we careful and So we in can't humble very understanding very are what and and decision-making. investment guides can our that do,

Anthony Paolone

platform Okay. a cash question forward view? something of that Is could And earnings investment that Canyon Ranch is basis money, and or into partners one an one operating from pref into your you point about And as more to the thought an going that how operating flow just and just make even then platform. going of happen either about on the think currently frequency? from we also then making

Edward Pitoniak

Yes.

the second your part your part first, question answer of take then and can David and of first the the I'll question. So

to doing to high beneficialty as was the would this look say rule idiosyncrasies, in Tony, us globally a wellness business its situation, wouldn't operating In more experiential this do Ranch economics in across terms be no. of generally, terms that scale. right we out, we're with degree thing which Canyon of in conviction, but Canyon as particularly is the will intrigued this? lot we a think of of I gave platform. I situation, sectors, the Ranch it to investing Insofar the its and there's syncrasies I magnificent

Ranch global As in least globally. Canyon estimates relation to yet, manifested especially in our wellness its the we transaction model McKinsey as it's in trillion of a And the consolidated that out we magnitude pointed industry. is sectors, one deck, think $X.X experiential

a the unique believe And situation. growth growth operating so providing Ranch opportunity into terms unique of a particular growth David, part? in Canyon solution you we the capital to VICI has platform a opportunity, this take do that first deserved in And then want

David Kieske

will mean, about Yes. goes solution not-too-distant and loan pref talked accretive quarters. the to $XX and last draw in provided future. it's over or opportunity funding opportunity Tony, to we then will next goes and it the of Ed's kind itself night We schedule comments that yesterday, fund all does is greater I around, than Ed the pref us. delayed the pref. that it here was John the we X this where funded happen a It obviously money. that on a X we'll make CNBC The the much holistic million the to But just a

it's a to the grow So with partners tool together. organization be phenomenal and

Operator

Our next question with from [indiscernible] Evercore. comes

Unidentified Analyst

blended basis? technical on escalations, you for Small the the CPI lease year? I implicit balance on David, a guidance question. your are assuming what What guess, is of in

David Kieske

a base crystal we don't Jim, crystal CPI, Yes, don't we -- ball, we just predict ball. have We but if rates. assume the would a had we

base it's for just rates X%, of in some the but obviously So it's it's X.X%, guidance. regionals, [indiscernible] the

Unidentified Analyst

with resources. John, do you're And if you for that. then you what quickly, Great. adding just perhaps mentioned

further I what's to you just new And cost -- on could said Is potentially? or that a that? then elaborate that little people And I mean, does what new guess? that mean, verticals. study You of the

John Payne

that been under been so a adding deeper to bring And to things we've be we a could few There's We've in We've I many do a and brought productive. that realized to on Chief little a more adding we studying. Officer ago, -- it's been team needed could adding Aaron's Yes. of over a segments we've Investment important places get many new the that. and I it's staff a some resources great question. been study. so and think to We year -- David on only little us be

Operator

with David Our comes Katz from next Jefferies. question

David Katz

we risk are those As profile growth think you're different, same about but gaming vehicles this in not the kind bit right, a beyond structures cetera. Obviously, that of the that lease are et risk. have, getting loans, paid for on you

would you that and or for could you payment talk be risk, helpful. If that risk about think it update through how the us just

Edward Pitoniak

Yes.

comes So you take I do, suggested, care in David, activities, to it when as VICI's credit great underwriting. we think we the

of us want That behind be happy of they confident we to really line want is would own sure ended obviously, is risk, would developing I a against needing but really if one elements we operating. to would it, credit to comes for stuff lend existential. make And don't absolutely operator asset, be are up never a an good to it can it good when own. putting not whether We key only in asset want our bottom money we whose think or the we we're to okay? absolute underwriting that we to very own be

really about also reported I our overall capital would So year-over-year. month deployment in depressed believe continues insofar terms last that activity. the in a very market accretive this was down transaction estate be particular was XX% the it on it as XX%, say real of time, I is of to that

based market transaction having is high would-be what credit assets period to would-be be which still accretively valued. around opportunity somewhat deploy give how an -- us conviction capital should a not and especially assets the sellers stalled, does upon in So buyers in

John Payne

to to add that something can Ed, David... I

Edward Pitoniak

Sure.

John Payne

lot Just we'll it assets. nongaming, we've been think because we travel probably world talking studying the in continue lost be continue -- that gaming a I shouldn't about to

that great of shouldn't the studying unique these the casino United great to States new a sectors resources we've partnerships we've and how that do business lot is of all lost that that somehow and are the -- world. opportunities the take about put experiential formed is, to and You in the conversation we continuing sight over

Operator

to turn Rose Citi. now We Smedes with

Smedes Rose

I like just meaningfully to to I ratios know change doesn't wanted do more coverage unionize, and you probably it is but the going it think ask, looks they wondering, workforce? it changes the tenant's Venetian just as to Palazzo your rents, structured that I'm move

John Payne

for of hard XX% a its it's know Look, But you've collected VICI operator. of from X%, for I this you, is well, business all heard is and and up us the quantitate many question a its X%, That's its probably and to years operators. me say this that. whether business you rent of down XXX% time, X.X the will the remind has

So think that this I the good is an there. very they operator about Pallo and feel workforce made, decision team the

Edward Pitoniak

$XXX what to million for collecting $XXX are rent. before in of disclosed they time And not, the go did rent very before just did Smedes, EBITDAR we and rent, were for they at you EBITDA track do let rent. that at know that level And the Venetian our for disclose achieve XXXX reasons, we X-wall Gaming resort good disclose before add, they the expected of first or EBITDAR, year, and coverage in Board back EBITDA generally, million asset me November while Nevada on

coverage lot Venetian. is of the there at a So

Smedes Rose

Yes.

just area the and you're that Yes, I enough. clarity you over year? that fair like is on a hope the that little you little you wondering exploring. to those that you if be entertainment of something bit a mean could just more up sounds have mentioned you announcement would an -- -- sometime would And comments. Okay. sports there's where it just then Or in follow course just this on family -- the arena

Edward Pitoniak

John?

John Payne

Yes, can't going make when predict Smedes, announcements. I I -- to we're clearly,

to digging that then and and in were business. I companies I we of structure if their using stage can't past, kind I capital can entertainment in we just little be you in the that tell when bit a are interested right X will or be evaluation exactly think our family there grow it's deeper or we companies reiterate a really a, help now. deal are that sectors category a how in sports constructive or we're X deal. there'll sectors wanted be those to

Operator

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

Todd Thomas

basis your relative quality comments weigh growth an situation investing weigh the a relative that is commands But to a question, investment cost but your on initial Ed, is quality may improve you AFFO capital. how but do lower generate? relatively asset company that response to company's on and NAV yield and in question, on very yield, previous where you an neutral, accretion accretive growth justify meaningfully the First portfolio initially? maybe AFFO making there focused a again, And of to could it's initial the investment may and AFFO an

Edward Pitoniak

quality in Yes. do It's are a name the real day, yield find at still is for We yield we're we investment the value to absolutely And a really accept dilutive the can't we willing good way question be our to of quality. that it ask, yield. of blended But ourselves about activity. solving accept a on lower And want can where the we think of it to accretive end recognize we the We quality. a yield across an situations in Todd. estate. highest the

real in And at blended good up a and so that that buy that's are, real match investment a and with for yields at and how an but real value our business. yield, we we thinner we creates estate higher with run can shareholders, will that's if how great accretive still the estate yield end

Todd Thomas

Canyon apologies the with but and preferred if a investment to bit mortgage to you of detail able disclose missed little and equity are the for the around are announced financing to Okay. I able And then you -- regards the this, Ranch? pricing

David Kieske

Yes, Todd, it's David. you. Good to to talk

all out around -- of capital. of to of as cost relationship capital nature kind about, I It's similar it's accretive the and out to operated in competitive giving our we've there just aren't the this a deals past talked how specific guiding the We yield towards blended that's nature of capital.

good investments. So we about feel the

Edward Pitoniak

is We estate a in you a built way generations. sitting Berkshires. to definition mansion is for the of all are can And shareholders. for be Todd, you we on I mean asked. first do. this this question confident elaborating the the here It last great real in together, are achieving you And of when put that high-quality accretion our we

Operator

Jonas Our next from comes question with Truist. Barry

Carlo Santarelli

with Congrats you is on the Ed. to between Canyon Maybe like rent for tenants? Ranch. this gaming and deal But see nongaming longer would term, what of mix the

Edward Pitoniak

much and We're to accretion value quality of to be okay, magnitude to be numbers, and terms in given that of this will that gaming I And in of will we're line the you math we're in do can very non-gaming. of on had gaming, going gaming Yes, -- a such would terms manage actually, our to have our globally needs kinds of and manage wish I we gaming Barry. answer. much exact It across roll truth the we an a not what come had wish don't domestically share I that depend I able much really a answer. don't be arbitrary going highly nongaming. confident is needs source say, The economics those not to think is we of the well, know internationally. assets to growth. rental obviously and this if exact out be still rent really put we lion's achieving

Barry Jonas

or deals. large operators on or of worked the follow-up, of put I a the operators have get follow-up that curious catalyst leaseback kind guess just you've Understood. for or good out as really more, path could think one, the to there buckets of But the as opportunities, And and opportunities get you are any. gaming here a probably there and also there's those sale X for fence. relationships some then much with it thoughts your in over from of pipeline we about to but number who players done haven't then I'm

Edward Pitoniak

John?

John Payne

as with are business we've we fortunate grow, operators we is the how the how with, we as in company, now to and we've plans operators, partners, not we're you help can Canada a that been mean, our that acquired unique growth we started following you can we we once the them there. meeting not them like help been them since build do Canada, capital grow, our I domestically traveling can to the estate out same world educating to traveling use that and in continuing we're some can have property said, find existing work, opportunities relationships, to and other started yet see, real on fund only how but are the company

to So it's real monetize just want good another or them be company letting be estate about an acquire building to a that they know time that there to they should a relationships and or want partner. their asset we're there

Operator

turn Baird. Golladay Wes with to now We

Wesley Golladay

go to Canyon Ranch opportunity. to back want I the just

think domestically a there's good a what million be Would lot X maybe this price? at I unit to acquisition And can is mention of next looking growth, get? XX guess and volume for did years, $XXX how You maybe big average room you an both estimate? internationally. the do

Edward Pitoniak

don't far Wes. be you'd off, think I

Ranch this the you a did him on happy a part And around be last facilities optimal billion industry you internationally night, within as only -- in and we're the Goff is relationship that Jeff that. I really at his at Canyon look ambition a to McKinsey size rooms CNBC We a this in rate that year be I and compound You'd to has of estimates Ranch. John say Kuster that the $X do And There's would do Goff equation. obviously, Canyon for go again, not in years ballpark. an only a think, I grow asked trillion And that very global think for just Barry X% that second answered. but And hear that think so John the Canyon Ranch if the brand are to coming estate doing the it conventional And is the between is Ranches. tell to question, John years. cap Obviously, opportunities well. to the hear America, when wanted XXX come. growth Generally, pricing, holistic $X.X XXX had to no Wes, rooms. you going But that reason to and we and expressing XX% But team they goes room that what generally of needs the -- count the its differentiates estate solutions real low transaction. North we Canyon REIT, say, don't business gotten sell amazingly your the coming -- the real have that standard ended to asked Barry we're day is other Canyon with we the much up we wanted hotel the partnerships. because overall estate for capital deal understanding thing of beyond is from would the question in we way did as and the as a transactions way rates Ranch's up approach We this amazing question initiate and at which go initiate quality. took There's X real initiate prestige partnerships. back and

Wesley Golladay

do you notice then I sheet. you it. you And maybe Got and thinking balance cash shares did one carrying the settled there? balance. just What for some the

David Kieske

closed X shares, we that million No, transaction ago. the X to $XXX Rocky fund about Gap million days settled as

Wesley Golladay

near over But million, you $XXX carry to about like Okay. a still larger cash you the want guess, balance term? have maybe I

David Kieske

the on Remember, right. mortgage got The on specifically, repaid Caesars a April Forum That's Convention cash back X. result. we on

dry gives the -- a to obviously this little bit, but so us balance continue additional cash that grow. and to liquidity powder So elevated

Operator

from with next Ronald Kamdem question Morgan Stanley. Our comes

Ronald Kamdem

Just quick ones.

at Where -- what's the at thoughts to you're that maybe the end on potentially of leverage year? came is looking the your to trend the nicely. the end in things corollary quarter in park What So the X.X down to of at And updated the move Horseshoe some sort all are that the does that? on of who's at the of Indianapolis?

Edward Pitoniak

part, first take the take Ron, John will the and David second. will

David Kieske

and But on that. trend notice very improve appreciate the I on it continuing I slightly maybe to of to my I to that. sub-X.X we're focused Ron, just Yes, range, continue credit remarks, down right, our mean north X.X as stated in getting your profile. will

Edward Pitoniak

John?

John Payne

And Caesars assets job to couple to Indianapolis, that do passed table Ronald, the games the fabulous and the facilities, the a in owner of years the the assets capital that growing X wonderful a implementing and as to it business. ago of the continues adding law operator pertains

a We 'XX, -- agreement we X with that continue and have that of Caesars opportunity. do to end those We to evaluate December with them. assets monitor that last the put until continue call

Ronald Kamdem

is million something is one second that payments so talk think student When just a My of operators $XX forth, you and they're starting. about million, and as with thinking forth? I headwind the Great. to potential so that $XX loans --

Edward Pitoniak

I -- Ron to an weyou wanted make. start, John, and got point I added

John Payne

in. go I'll go jump ahead, and No, ahead, then

Edward Pitoniak

that's really in with even more being spending than Moira student -- among good job of repayments does much the right higher now, of that's magnitude propensity the going growth of loan that yesterday at the the going the U.S. especially and definitely don't that's Ron, out vitality game. going Yes. of now but there I and the U.S. I I handy, infrastructure job talking infrastructure economic so Moira, the on spend perhaps offset that were infrastructure associated that's you and the workforce on have growth, much growth by would right look economic right the about so it have impact magnitude now or figure know investment a on before day coming the to is if in

optimistic be add to think vitality a gaming year experiential John, over if economic particular. to want broadly you that? the know I we'd more the mean for to and could what or as coming I don't in pretty in on So net-net to U.S. the basis,

John Payne

to I and Las was the to Las in -- we mean I just going Vegas, Ed, Las growth and Vegas. of buildings Every saw Ron at a in to know about rent Ronald, continue add the of in up percentage coming Vegas. international open get business. out June I seem No, large operators morning. in all-time day, record XX% I the this article don't read if airport this, you an but our

the and growth Vegas in regional Las in to locations. solid acceptance see these industry the consumer many So continues and of

Operator

Our next with DeCree from CBRE. comes question John

John DeCree

as challenges this into early operators the some in your of you day a that casino just face the are of are and that I verticals or of facing earlier recently. challenges source ask addressed grow tenant of categories, in using hired of space base, the John, financing. in talent even or into kind in some push of as some the direction. new you Maybe the big expand you kind Ed or part context you've what But picture, had educating you've of educating little of your you with investors this new

kind you facing So as of you're what keep curious pushing. now

Edward Pitoniak

John?

John Payne

traveling wouldn't John, the nice whether like lot of quite or world the as health gratifying experiential and explore, me companies it how events companies these folks to them has to very explain and capital them in of that around having really spending help I talk explain me, to our grow. capital we're that's company out can that's And to unique business I'd other many in with these experiential particularly and in the sector how continue operators, describe you. Yes, it the time for and as been where taking there time resources and the whether help ours, we being and challenges. our a been hasn't the things again, fun, grow. our interesting actually that them describe to fitness, is,

the as of ways them understand So it I I way just challenge. wouldn't as can I different as we're partners. describe a become describe we helping it a

John DeCree

of And enough. maybe question. a little easier Fair a

that stake. -- of that in how as factor think only potential future? that me the a a just make decision discussion how Do an it's you do Is from or consider partial there some was opportunity to investment back or a whether to would be VICI, consideration I an owning asset maybe that into asset? sale or or for whole Going be example. the minority you any that it a part would Bellagio, -- the Bellagio you

Edward Pitoniak

did of one the early Mandalay in been November, joint deal we John, Grand back the what for had venture doing MGM with late motivators a Well, strategic December, consolidate Bay. was to

most do speaking, think absolutely dogmatic, out our preference, it both meaning So speaking, the a consolidation rule we're but to and Vegas ventures, obviously is not the going that our of been of generally new had our generally recent there complete Again, joint deal joint joint significance assets, what and not a I and was venture. is we of in in gaming ownership are venture, creation prefer we in Las fact not non-gaming. while the

Operator

McGinnis Our with Scotiabank. Greg comes next question from

Greg McGinniss

you're certain the Are global here to your provide terms to gaming opportunities. appreciate globetrotting of in the is, number market that kind talked total dollars. new the because about commentary of globally educate and even of find be context like investable meaning that I of to maybe on willing you've just John, in. terms you're But trying able fact you I invest to investment any willing investable you'd assets specifically with buy potential know so curious countries in

Edward Pitoniak

John?

John Payne

I don't numbers now, Greg. Yes. the right have specific

you specific and We continue right don't have a potentially to where across, could we But now. countries different for I the work you on number mentioned, investments. look that as all place

Edward Pitoniak

meaningful Canadian not of Greg, ask cap as a important that is data, Scotiabank, as given you I'll I'll size that is representatives per always the size. little and absolute and just your give

GGR million. U.S., about and compares so Canada GGR $XX that I in as in regional the an GGR in commercial million to Vegas believe, to And billion Las year, Canada, if and is commercial $XX the combined a example, $XX the

a propensity X/XX higher the having on Canadian basis, game. show So population U.S., Canada per of to obviously, a about of the capita with

in real countries. And which the into so only we look those woven but is of the game absolute evaluate the we as size X market, characteristics propensity the and at not degree the gaming of the the of X globally. that's It's gaming to consumer economy

Greg McGinniss

guess on thus far owners just there thoughts Are Vegas? financing? Las no there Downtown are Or on domestically, what then just And sale-leaseback I need there? Okay. is to your resistant just

John Payne

I a wouldn't to we're that, would capital of how say call, couple build continuing we're continuing say you've our as that, to say Greg. me I times relationships, this heard work. can on educate

currently assets time. they estate. Downtown think Las way we to over the world. that are is Vegas, even not also partners not operators that we United in the asking the some downtown the would grow them I that that also real Las of a There's in is with all about on we'd where or be We're States market over real could not market owning only the Vegas, that have own have fabulous of there like love we estate we'd interest but with a you're partners regional market to with Vegas in Las in

in of our X happen some these, of you've quickly. some seen years, So as these first

come deals hopefully, move -- know get we to We here. game these way. of We others. time, a will and know get Some over owners. and to It's the long deal fast take the the our operators

Greg McGinniss

just for final one And a me.

health the expect Just see operators given the Ranch? other house wellness on view sector, we outside to should of and Canyon investments with

Edward Pitoniak

along -- the given focused kids. wellness Greg. market other broader Ranch leadership as it. mean out rule I John, spectrum. kind I we're of is investments their think, wouldn't Canyon Wolf and obviously Wolf like very I on mean, growth that would you've for somewhat Great with Great put their in much a we opportunity, Ranch say already Canyon that I way, see

Operator

Crossett with Nate BNP to turn now Paribas. We

Nathan Crossett

have showed that deck CMBS already? Have with to Ranch The that gone potential in few the a are trying of next years, to this? that kind the over your guys reposition. the for slide of through Canyon How you identified you real to locations the Just maturities sizing. get partner sense many process candidates

Edward Pitoniak

Yes.

Estate with Real that Crescent to at Rainwater again what the so and of So Resolution he's feels 'XXs early out begun point Estate Nate, the we've created in he an a But Real -- by in time. process. Trust whole the capitalizing John on great they wind-up getting when resort degree he's like I Crescent to Goff, do market did within really that incredibly the Richard out built portfolio compelling successfully for distress he would just that

develop So what there, meet from And of look regional we've really really geographies. resorts work then would inventories. -- to from Ranch done going that though in. beginning Ranch would already could is the really those America it we're being of David for we geographies, at the has processes, that within that to criteria I some which starts benefit in Canyon filtering not Canyon regions North with good say

Nathan Crossett

I spreads mentioned historically? you've helpful. And That's in can it's your -- line is it's capital, been know that but guidance sensitive, is of I what how say just there accretive. over average like with there? the you Okay. know I cost accretive? any I doing Like mean you it

David Kieske

bit as a talk to will that Again, down to to the little good you. Nate, funding pull We organization. funded million draw will million. that's I they in it's invest directionally, mean they that future $XXX week $XX I mean, schedule Yes. accurate. this

it's that's in So line. directionally

Edward Pitoniak

blended this I tell is quality our real of you will what that yield estate Nate, is for And very compelling.

Nathan Crossett

in... to there we mean, I and helpful. a get of kind partnership That's takes, is you that puts Like I this capital million in sense from Okay. disclosed deployment know should of year? this there's other than trying anything what's the of terms but expect just a of that lot $XXX

David Kieske

$XXX Ranch And help then the build million Canyon the with last to announced October, we Austin. them

So some as 'XX, at that's comments, mentioned I getting opened in point. in I 'XX his And going.

they the team embark night finding and extremely Canyon journey mapping this Ranch excited to and last mean these on of were so we And assets. with had dinner

at come term. nothing this So in moment, we very there's but much specific near hope more to the

Operator

with Darling Chris to Green turn now We Street.

Chris Darling

then coverage the to us resorts what of give the a maybe of your the the Canyon business? to gaming there you call assuming business options you relative overall Related can think portfolio? is exercise the rent some you or there, time, And hospitality to historic cyclicality level maybe of sense Ranch, right do traditional of relative do over maybe

Edward Pitoniak

Yes.

what luxury has that have conventional Ranch cycles been resilience than through is just a Canyon for Chris, about they all years. resorts. stronger And XX is shown operation So far in

annual just but And in with even do quarterly Canyon its Ranch so an cases, of some much to for ritual not has much of ritual. ritual, clientele necessarily so a that a being

I commitment luxury the resorts, get consumer in purely that the most part Ranch you know So discretionary you the on Canyon commitment which the of cover. than to stronger is

the very so intensity the comforting not yet rent we that high do of these of is based coverage. properties very, we very level above inordinately comfort what us is the that, headroom coverage. fact create economic great feel need on And in does And gives the economic that

Chris Darling

Rocky helpful appreciate rent then second year, maybe color. you last Gap gears time. at pretty coverage a really skinny When announced question. it. And switching was I That's for the

to lease it but look I'm right. was levels willing the assuming that share? like, coverage broader still if master property you're now, understand think be about I has would into Century I X.Xx, current recognize folded to been what curious

David Kieske

goes a Gap into these Chris, lower they Yes, phenomenal in Century from did to it's assets you. XXXX. where did on back David. and Good lease. them -- set were, on pack the coverage the it operator, which with is they because healthy coverage very we improves talk bought X that Rocky originally master did was we to And going we into a

out don't out Alberta level excited assets, we're So it's out they add coverage, well of because and assets coming asset to give give as into level that the as very we coverage those that can't master very, coverage healthy lease. asset but

Operator

Securities. Capital Guglielmo question Our final Dan from with comes One

Daniel Guglielmo

years? you the a continuing lot thought? has for that advantage few And still happened since that advantage the advantages do capital. then, see you playing that the Just greatest to one access REITs biggest to in know that debt in then you mentioned of for the me. back environment Ed, with some is out but way as an next could result the I February,

Edward Pitoniak

Yes. I so, very much think Dan.

worse yields gaming gaming years yields spreads that on to compelling in make that on a gaming think mentioned seeing to will coming that think recent Dan. it I the still on leisure come comes and true worst the look and with both on both might what other have weekly call, you're as basis the even alternative due of credits, tightening when are and very could and refinancing in sale a the I to on that We nongaming debt I non-gaming. leasebacks be in

Operator

CEO, for Q&A. our back Ed I now hand concludes Pitoniak, remarks. This to closing will

Edward Pitoniak

of on now. all to time, in you the Bye few thank to asked excited are and also the who very call talk in just analysts good We a again your to line. on today, thank questions everybody I want both for for you the we're Yes. who our months. investors

Operator

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

disconnect may You now your lines.

VICI Properties (VICI) 27 Jul 232023 Q2 Earnings call transcript