VICI Properties (VICI) 26 Oct 232023 Q3 Earnings call transcript

Company Profile

Participants

Samantha Gallagher	executive
Edward Pitoniak	executive
John W. Payne	executive
David Kieske	executive
Anthony Paolone	analyst
John DeCree	analyst
Haendel St. Juste	analyst
Ronald Kamdem	analyst
David Katz	analyst
Todd Thomas	analyst
Greg McGinniss	analyst
Bennett Rose	analyst
Chris Darling	analyst
Nathan Daniel Crossett	analyst
Chad Beynon	analyst

Call transcript

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the VICI Properties Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, October 26, 2023.

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

Samantha Gallagher

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

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

are differ by and are phrases to Forward-looking actual from believe, numerous words risks will, that expect. use subject such could results similar statements, which should, or guidance, other of what we as uncertainties cause expect, materially intend, usually identified outlook, projects to

you interpreting operating Therefore, future the and on them. the a should filings more of impact SEC could results to you and relying risks exercise caution that discussion detailed financial in I conditions. company's for refer

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

call and and Payne, will to respect I'll is measures John opening call remarks, to Vice to the additional Kieske, please will For some with Ed and of then Ed. Ed information Chief discussed Officer; the of or certain Officer; Pitoniak, we Operating Capital Executive team President David on to Accounting and respective today Louie non-GAAP Officer; the Financial company's President turn Hosting open McCluskey, questions. With Senior Officer; Chief over with SEC. Wasserman, tenants call Gabe provide the counterparties that, the Chief and refer Markets. call, this Chief public filings

Edward Pitoniak

Thank you, good morning, and Samantha, everyone.

while negative for was are most continued swinging last the be and year only REIT The not a of quarter QX improve third in QX stock trend. in XXXX quarter to a didn't quarter a REIT in now future. is October after business is negative question the down happy REIT great and what index The have for But given marketplace REITs to QX year, a its XXXX has the X%, did XXXX, key with. done October ask in to the a year great

number solidly for largest At growing future VICI, prepared to it. QX since with a a the This exceeds and our and is there effective an conditions. it. has We played and current continued dividend XXXX value expectations we is has defense. lease to in rate greater offense same rate which ever certain of We of answer exceeds that period inflation We XX-year dividend, potential capitalized our over X We question dividend than this Xx annualized played should period. the currently that on well selectively. And net elements conditions increased that a growth if XXXX been solidly the REIT covered rate. forward

per AFFO REIT new year to commitments. and VICI's XX.X% capital VICI within in QX year-over-year. earnings which quarter announced been growth to generally come earnings about share Finally, difficult in has by, of billion end, in $X.X a grew subsequent

in know a should have you economic of we that that strategic of you stockpile. seen merits these some we most have the of While feel and investments, are who left there capital

here could for the of long, too is knows. we capital market what volatility visibility for the low. too is from be high We understandably the how are of sober last visibility cautious is high no movements low. is especially and And market you and weeks, few that Some about volatility feel one with agree conditions allocation and

COVID. VICI. positive how that market invest will Ranch values Canyon and okay, that investments the represent normal, estate we on sound, did with earnings. These things should we've future commitments know commitments the are will best at are you but that in investments resume can will we'll years commitments out XXXX VICI what But back that represented and also high be Century, going to, to have have to of be to to can continue none now you impacts recently the in relationships we conviction that relationships the Again, and stabilized. real answer way some to recovery in with it about Valero. immediately accretive now conditions tell and in grow, made signal all-clear These That's us continue when I in positioned have growing REITs of in with when

Our situational been fully investments readying that themselves position acquire of are we [indiscernible] XXXX and to made readiness investments MGP, other made put and earnings driver us key many recovery. would growth, hadn't Venetian the these a and be in our the for

agile work Markets of Capital VICI We our and the McCluskey of have to because been team. able [indiscernible] and recent undertake astute the investments

Going equity opportunistically our back to raise of has in approximately billion funds to accretion investments recent forward early drive a of January of VICI which $X XXXX, XXXX, spoken. our overnight in $X.X equity VICI giving for nearly we've the total cost billion immediate of raised a

also quarter. We this defense made past

to giving our what a X the quarter and X/X of tenants G&A $XXX backdrop, of will XXX John did VICI REIT to fund leverage loads team within end, continue culture debt for our while [ S&P Kieske, this million of the equity John well commitment the demonstrating this, to proud all update, continue pass new to come quarter bring. With vitality $XX our about ] years also QX swap for legacy to confident defense by excellence During their I'm and of stakeholders the any of of we the a as $XXX of will VICI's I'll of serve difficult team our cash and anticipation the turn who resilience by guidance of those notes further over against momentarily. David QX XXXX our defense demonstrate and Finance and targets. only the volatile that, marketplace mic to billion in billion team speak Payne of transaction give will no VICI commitments lightest entire create protection. David $X.XX a John of adding matter John? And total VICI and update. will million the that an protection financial then capital to operating played since call in did close years very I'm played our work and Kieske subsequent $X we working and to a of MGP refinancing the us businesses of million to using long-range swap X of

John W. Payne

Ed. Thanks,

bowling in VICI's show relationship $XXX with Tom VICI almost a value X and While Valero partners sector, we also invest international by growth-minded a asset estate tenants the year to enhance quarter but The grow has to Resort team position VICI sale Casinos Parker, Casino Harrah's footprint. Subsequent Ed new trends to just our and their perfect relationships a are and a at sector, family million been into excited just new highlighted, billion convention and expand and our geographies. capital capital continued strategies. center basis in it to bring growth entertainment the Gap through the into understanding of of plan is volatile acquisition XXXX a just led growing our our Alberta, gaming our Maryland, in has operating continuing our centers end, asset, entry to Shannon into to continuing New Rocky operator only improvements a to a with but XX by that Orleans. In to example sectors, over results, were over third at strong Valero, can just further relationship are entertainment announce Brett million new talented leaseback all Canada, very put not at that our in the closing ourselves in the we acquisition assets investing X of Caesars Century our the our in of have States. partners recreational on both deep is $XXX the and not space. Venetian real including consumer, new our United only business we as announced to continue quarter, $X capital their

year tough play the conference items Strategically, other smallest potential operators in domestic our businesses. diverse or States, tuck-in that respective I hundreds dialogue new Vegas. highlights help real thereby of Las by run largest international enhancing our In each in Vegas, analyst throughout the best seek focused than Danny commitments comps, spends meeting by we the tenants through millions of with is tenants a utilizing customer in showcase continued conference Even events additional even with productivity such potentially related reinvestment of continue we operators to open very these and estate the have while add sector. These to October regional in venue, to internationally, as dollars growth just Valoy from no against better we their After of with of CEO, Las place and our year to nongaming, projects, and grow discussions operations the classification partner has performing almost on there's in any and grow has while which must-see against and gaming, of current one Tom Las for assets operating become diversifying the to investing of dollars gaming, domestically our productivity and property famous is to the health regional the our sphere a that each all or is assets Las fronts: entertainment to we XXXX are which strong tenants world-class on Caesar's millions Vegas capital Bowl our the come CapEx convention MGM at estate are be base. the the this be robust fund VICI's And entertainment and are of tough of and Caesars not can revenue by opening unrated and from world new has future. leisure our that with are its stream at gaming database. fund regional epicenter conviction all profit high-quality the wellness, of during itself, No and experiential acquisitions estate excited to family times, loyal of ways Formula our supported The sport, by consumers markets. many pipeline partners pace our continue as constant current of continuing insurance also uncertainty. existing connections to GXE, Reeg for recreation assets and relationships minded high-quality a to in of growth United on Meanwhile, quality normalizing productivity at our levels is construct world. Outside to as for Super macroeconomic and be comes and noted social quality portfolio real X the increased backdrop expenses that like of performance entertainment, mission resilient, continues high Las and city Vegas, ever. to cited been its productivity investors. This helped Vegas real And best outsized continue operators of clearly like attractions infrastructure the the cultivating unique invaluable these Floral on ROI sectors properties. partner opportunities the but pursuing operators our Kellen the that hard assets. only we choice assets. growth we the best-in-class the our across schedule

is grow ever During deepen networks our and to than the position important is this from for and to of position the for to most growth best it VICI come to breadth our This continue work grow to our opportunities volatility our shareholders to intended to team. of challenging come. us to for the continue team have market years everyone, deliver more to time expect

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

David Kieske

have not is results accomplishments, deal great VICI week's team to we've speak and Bowlero are in but last deal by you improving of future. Valero it Thanks, the with we as cost XXXX a to accretive to in the of we with for The pride market an XXXX, what to liquidity, and AFFO approximately also grow credit with leader beyond. team estimated today. acknowledging together of and believe we have standpoint, many equity week $X.X in will the we million spoken last is John. prepared earlier approximately Valero John benefit billion proceeds accomplished Ed to the closed we over, Highlighting about, takes immediately in billion you of cash, we an night forward availability that mentioned, business, are the we year as transaction and and economic transaction, that the many said, very and the exemplary Subsequent total VICI of attractive. revolving comprised forward to generating as $XXX given of our had the our capital. as last funding posted a available under the was $X which in everyone attractive this partnership net shareholders builds sale months facility. announcement It's $XXX those transaction should raising million From spread under the But agreements

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

for years our rate Then swap nearly we ended $XXX have in prepare September notional with share and income X.X to hedge AFFO compared have to first starting aggregate weighted the XXXX. to the bond was XX% for interest for XXXX, date. interest on weighted an a million of rate XX, entered forward $X.XX agreements We maturity. of increase for X.XX% accounting we average the of a our an per amount quarter, quarter statement, refinancing into as early portfolio $X.XX average Touching of

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

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

Based per we for dividend the cash as and growth AFFO expected of highest of quarter, annualized across now be growth $X.XXX updating guidance, and midpoint increasing common between an VICI is per per absolute guidance. of During basis. updated well deliver our XXXX, to AFFO $X.XX on are XX, X.X% $X.XX share billion diluted $X.XX on year-over-year representing a guidance increased our December share increase. year-over-year between expected share. a quarterly we one turning REITs. ending the dollars and XXXX as or all or billion AFFO per in basis, $X.XX the on Then year for XX%, $X.XX to rates both share of expects to the

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

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

Operator

question from with Anthony Instructions] First comes JPMorgan. Paolone today [Operator

Anthony Paolone

changed to see see can all us capital the you your My kind or costs few how not has your costs give But the you months. whether is have changing months. over of how competitive few sale-leaseback and last maybe over less first become we or operators, sense more a question last as capital could

Edward Pitoniak

it Tony, I'd more become say competitive. generally, has

But let spreads the of projecting the cost [ can our is operators, has their to a XXXX. what now course, capital that you or confidence in cost capital level be from look XXXX, compelling trading against on ] place assumes to in yield projections, capital and us And of If much generate know year my or accretion that. worst call a of of the not and missing. have please we we're predicting in at, our but if obviously, stock that, potential very values think is our the does our in I anyone high. positive where their confidence also of XXXX, us credit immediately

Anthony Paolone

just Okay. And then follow-up. a

all putting choose of But so to they it the yourselves wanted reinvest just as they your lot they're pull with fund I Or do And operators participate. help of capital they if the to some capital property the mentioned a their to projects limiting decided if you know see post being you would into growth involved happening. that You'd have to out? this in you assets.

Edward Pitoniak

John?

John W. Payne

to not Yes. here, being and went Tony, were just asking. just by this to time, opening set level capital I Tony, in the by think that at my tenant, what that's the is through in I put -- remarks VICI you

time opportunity our opportunities do how to of projects that be there's the And all growth if for there larger in on we an they're fund other And behind capital in help is deploy their property talk We thoughtful incremental basis. with partners point we an thinking this rent. The them growing investment, for is would us to businesses? analytics to our do for us question about that? ongoing an the about incremental and we would

Edward Pitoniak

if they to buying asking the through on correctly, sure into value us operators' all opportunity of could the an want making the because capital down I question course, that went be created predicated, to real audio good of creation the we're creation capital real the income should incremental REIT understand the think incremental ] And investments it's property. Tony, their of is tied real monetize yes, property of your property. they I you're road gap [ that

Anthony Paolone

that's Got asking. it. what Yes, I was

capital already. by that you operators John, listing funded items were those I costs So those the understood, were being

may Would want us of help it in, yes, that? go they some question put look, hey, if of later with if we a decided, you you so back. would that in was and And this we

Edward Pitoniak

right, Exactly Tony.

Operator

John comes question CBRE. from with DeCree next Our

John DeCree

wondering a if regional bit about that you've well. little at that. up of some you rates that looking show and at more than tighter how caps is little versus looking real cap It's the maybe a of and seen you're I'm the Vegas Vegas transaction could last rate in gaming and Ed as you're kind regional there. for family could of cap you've gaming what a different we or experiential estate that speak maybe talk Bowlero John, got to entertainment to bit animal we've other than a gaming realizing the

Edward Pitoniak

I'll Yes. turn to and start, John it Payne. John, then over

it represent represents our category, new highly superior as have also strategic by already So business invested that TAM, to have significantly transaction, a in. behind a is is and very fragmented they obviously that obviously initiation opportunity other into created our when model we investing to a you said, category, different of that the consolidate into very so look at a have do number initiatives. you've REITs does, our continue Bowlero and in expand we and to team It new growth Tom us. a sector Shannon and Bowlero It the sector compelling invest

a more marketplace on is see cap regional gaming. in a it somewhat So with impact rates might than competitive you consequent

capital. very are cost growth excited very you investments And we're you accretive cap if John, have team and a think anything apple of to raised -- positive be rate point over when given and will, a opportunity emphasis orange there that add? the different X.X% about ish, the to it can and going forward. was needs the characteristics. David do of spread XXXX. to bit do investments course I So do Moore be the of times immediately marketplaces and represent have different the gaming nongaming that they with the

John W. Payne

Bowlero. now capacity what not think at. Pilgrimage you're indoor Ed in place mentioned -- not Ranch, you well. that asked either you've just I The that's wellness these investment we categories placed in on. opening we've Canyon an We've I parks, family investments a at on. leisure, sectors it's opportunities spend thing other made just looking focused Golf, investments John, we're develop looking over add I'll an And or we're Yes, final got entertainment continue some constantly gaming, said, water for long-term important. wellness, and and we in it's as opportunities Obviously, looking the to as about some it's And partnerships already to But mentioned wellness and entertainment with recreation, some sectors as looking at just look you're time, center, in to to with remarks. that's for you what time spoken unique his is sports

John DeCree

That's helpful.

about this previously that for capital think I point the transaction. a good made raised

entertainment, the of Maybe So of of kind for looks the and us. I follow-up, of Sphere reviews I like in on experiential certainly appreciate of the opening color. epitome John, kind alluded a additional in rave sports the and you've other has and Vegas Las MSG to guess, categories entertainment context

stadium, ticket kind that if changes than thinking I'm So rely sales that entertainment, or sure the maybe bigger thoughts about in perhaps is at the curious your mixed-use category, business your category if and not models model all? thinking anything has that else. on of changed more

John W. Payne

not Vegas no It in venue but looked what the United on but Las there's you -- only added category is at. this probably to like we But changed, has venue entertainment hit was land. world. sphere on an It States, a the not that truly but is the it, have our entertainment and that amazing sits

viability boy, should understand continue the of get sphere John, study. if We to investment, made long-term But and event certain and to better you the not an trying We economics you . is opportunity, projects. have an there. the go we're to clearly amazing,

Operator

Haendel We turn St. now to

with Juste Mizuho.

Haendel St. Juste

thinking more current past, to wanted want about a more? to about hurdle. an in risk curious case capital basis XXX, value would if on as seek up environment, points the Bowlero, and or today's investment the I'm follow guess environment. you seeking I I the talked in creation on minimum that's you're still a spread XXX you but allocation from the how and questions holistically In perhaps

David Kieske

-- the in sit where If our the then obviously take those cost not the at for not is we come as to we're to fact, Bowlero our still talk of was are the No, in things you. capital. absolutely is back specifically talked this environment. on We Bowlero earlier year today. the together. it's pipeline in transaction, Haendel, And obviously, time months point about, generating David. case to But to Good is. when, weeks, that types the of look sand fortunate raise capital in and in we basis were stock to XXX the price and tenure XXX as where here we the is our see we spreads screen, still see to

As need where the we to we market about that of time dollar to of we it about capital think and are that it, think do we something next available at make price cost the and that capital, have underwriting accretive we in based the us. on

Edward Pitoniak

right could I'll Haendel. that today very, along during not just were caps we at in has could Bowlero to cost is to good the well, operators period The see, day money on be real deals deal, here a in with capital had don't they the XX estate [gestating] which that long be any and And that trading see have that volatility you is And recognizing careful especially for cap by meantime, any this right capital that that gestation implications will XX but would day-by-day of periods. really and the not really very the volatile used questions basis, we that have only the X when we occupied day add, good of, do, We've in now. assets? come and you buy now. lines our a few X geez, answer

take which fact requires deal a gestation to that decide and to care will periods conditions. deal, deciding cost longer have do account kind have in against any day of will to we it necessarily for these do care particularly not any do the we take making won't until we market means means, we to have capital by the anything certainty great So

Haendel St. Juste

part. small Got was first if your it. in the else X about Bowlero. real understood. that's ABR, marked that is equity something direct X%, years. but relatively It I about guess Got nongaming unique curious know And And do more have for estate ownership I'm it something X going more deal still ROFO on of expect a can you I of a that forward? piece you

partner space curious with see within there do So how and/or forward. either that you that going

Edward Pitoniak

Yes.

So through a represent these first do Canyon direct ownership and estate course, us have direct immediate our Ranch, path you're ventures to the that of call that our -- for out, Technically, in should estate. point we real rights of we nongaming future. ownership that right. What is with contracted real Cabot give investments,

very So difference it between Cabot the and estate of a our certainly, Ranch of a real grow, in be with to itself. acquisition you case, had very which operator work, the just of with compelling an sale-leaseback to happens to Bowlero. our this opportunity real estate led opportunity immediate nature acquisition potential And acquisition to a versus compelling real with the put acquisition to capital estate immediate Canyon's of

Operator

Our next question comes from Ron Kamdem Stanley. with Morgan

Ronald Kamdem

me. for X ones quick Just

family the space, and entertainment little the more in so all sort of you're of family you interesting what that going But bit in Bowlero there deal details a how one. of or Maybe entertainment sort about other sort thinking the an is partnership that and transaction, and entertain? Bowling appreciate provided sort of color the back you verticals forth. Just came the sort I on avenues as to about of

Edward Pitoniak

get sector, people if a I'll within Ron, it key need pretty to it John barrier to target. say, when heart get recreation. to very strike target that you energy the and can Yes. and low to turn and It's is in from And think urges goes experience, over do of I And entry at it that bowling done do bowling. to moment, within And to most characteristics one get And but human of strike place a that. good exists is can passive entertainment targets. Boeing at or I've aim is do energy. the you. recreational ancient hear experience a again. people okay, that other once its that's to excited our a twice, tend experiences a can some and a about to family they fine. you energy where want back they not go, in that it might it better philosophical at. take don't it, an contrast is it And you to I

heart that buildings. So bowling and give that, we it to relationship. at over we the literally are But indoors resiliency can in John? in more John, it whether who lawns why outdoor various think hundreds of years, that how color aspects hundreds of has I'll that now develop on on or turn to you warrants has for endured

John W. Payne

bowling, first many times add my cash business with And X add the registers streams. this in gets Ed's revenues great get continue food has from top into to at you've of healthy studied I the Yes, business Ron, I'll X business has meeting I growth The for that my as credit percentage and It gets It revenues a -- about think how got got looked we gets large the ago from it business the from beverage. margin the study that It amusement. that a consumer's was take can the executives wallet. And that scale. me this other Bowlero speak was of diversification heard is revenue potential. years notes with I to of X thing business to remarks, It's its we was just going just long. relationships time. It's it's at Bowlero.

as diversification that the into like we team. So the into business dug dug we and

one we going family center continue study entertainment good best. that think estate operators So many this think of to case we the are we in then buy time family to part center business. And final the there They're over in entertainment time could your we space. to we're really partners and understand journey And I the started was our operators, but years be the other with with. took real

Ronald Kamdem

then And just on forth. was so deals my staying Great. the and one pipeline -- of just second

higher anticipated. obviously, conversations wondering, happens, you're I than much pick is that they how conversations as the I'm sort understand capital? trying evolve? Like like how that do stop? So pipeline that tenure like just Do up? pipeline and that -- repricing is to of PPR what most think having when Just And does like evolving

Edward Pitoniak

of ever opening actual to not quarters, value it call "Hey, coming have to want there about remarks, all we to against put pens recover, probably down John when volatility this all in attention. come John any will we stop don't anybody what to and backdrop in you." and but but don't capital, weigh all because slow said can forgot out, doesn't that. of Ron, will my and but pens us we definitely -- a in given the day, do conversations haven't a to start want months, I not over paying day right? clearly kind slowdown what as come begin want and terms do down And volatility then I I'll because is because talked slow David to who price of to is they to down, don't we A and conversations fixing Yes, have in, of of want years, we you people say, there turn

terms in slow the a down of So they in John, make talk we which to if to about sure conversations even have value. bit want you our continue if fixing way

John W. Payne

this company go that defense when it well. long-term moment partnerships. on of from hopefully But the opportunities we're uncertainty. relationship. we and look we're very they we that Yes. preparing described opportunities certain learn at time the businesses have doesn't that sector understand that not today, of about at We're to for we experts for mean and develop that conversations, It and to sectors more offense means looking develop transact the you constantly Ed,

find term. the than So a to little opportunities still but couple we for bit years, long a of the time of working past are different

Operator

next with question David Our comes Jefferies. Katz from

David Katz

more a could the of far? I if and what but that requires any in you I and business relative estate. wonder the one a of please? be sort know talk And way, about long-term picture intended Bowlero do the that underlying of real on of the value, real a lot just not estate kind durability other us acquired so CapEx stuff give that leading value is homework you've of durability, it around you Just to this question to just

David Kieske

David. their $X gray dark love talk. in. assets something the bit and this Yes, go is dated David, multiple the from Ed see I where out years Bowlero and across XXX of done have white draw grow since assets of about to now was centers Good talked years these reposition outside John, experience late they around time. of to business things million some model local fragmented see the portfolio fact to in they've ownership are old a that that of start, continue and X,XXX is transform mom-and-pop very XX-plus lively but it's and they about, and for a reposition for into with $X bowling buy not and And XXX space very and XX- into anywhere opportunity million registers for the a I in cash the we that they country that, 'XXs, have industry, mean alleys to can a been the X like a portfolio they talked as they and John community. over has U.S., about, that hundreds there, the to little capital of to opportunities and chime another

Gap] we like recreation box very better John make about love But and [Audio of that flows out even that's about And a it. that that's question, And cash business is it what And very come we solid and it new. to have that's high business, your flows. take model. the said, essentially brand they make to and margins cash as the sticky very aspect the then David, what

Edward Pitoniak

this. to add just I'll David,

operate investment between you to it's capital. of make very or investment doesn't this is And investment I back And in with ski in days, about they and back and and and quickly this to of and talk fall way the they resort responsive intensity. in great about love And ]. a the the is learned and focus can indiscernible management business resort my capital the the old snow [ a I mean business. love intensively what ski out to You that heck capital difference you respond lot ski operations. I it businesses is I business respond what

get and invest pretty are it's you Tom well really to of Bowlero management how really every use bottom You the very at drive Shannon that -- capital responds and And lines also know team to much business an top, trued to intensity management manage results again, middle very, immediate to and single investing a response that intensity. the P&L experience. transform and the to line, and transformation through the capital consumer

John W. Payne

the David, to We the got team, but only these so not ground other makes people thing business understand team I the only the our and would our meet as productive. assets to And it that We the to mention the the went to in of I management about, is the in XX of states. all XX assets just the on meet senior got underwriting. us talked helped continuing detail durability asset.

you gives went a how flavor we investment. just this that about So of

Operator

turn with KeyBanc now Thomas We to Markets. Capital Todd

Todd Thomas

Ed, sort commensurate capital open, to So relationships it the increase sounds the the on see improves, may with new John, down you look investments would you to Do opportunities. with But in conversations near like on you keep in the lines first existing costs ongoing sense. to industries? the maybe, increases as question, make which expect across term until of potential yields and investment having that company slow are visibility

Edward Pitoniak

tighter that they tend to more And we've very buyers would time. will, than in always it telling be come sellers, seen take believe And grips always buyers. Todd, takes to I'm the confident Sellers a expansion but rate to cap obviously, year. over some time reality would with ago, you year be I last not assets. rate. buy These they cap Bowlero have tighter of years large that able when couple assets bought ago XX would Carlyle we Very a would a Bowlero of have year assets ago that. could have done traded considerably at portfolio not as been traded confident a to a X.X% we

take to and can to tend to years same-store lease the REIT we'll as expect growth accept think component a escalation and realities, realities, that year and markets patient lease but that that degree of acceptance be to time to thanks we, eventually the markets those the enjoy over you a rare look we for take come I to escalation. to maybe CPI come, as especially very place enjoy to accept benefits and So of our net

lease over space net net if is growth from way year And cite the slow in growth Same-store same-store they Street going might. REIT. mean Xx that something report lease next in Green VICI that NOI that both we'll showed about GLPI is and standard the friends at down to things our enjoy a the the

Todd Thomas

you're agreements potential the update Okay. be investments, Indianapolis, That's potential timing right were the that might provide how something capital within And sort then [Hoosier and on of an to there can and required thinking thinking of helpful. I you guess Horseshoe], the Park current to happen sort context at extent looking about that on potential and there? call of raising

Edward Pitoniak

can that first. take then last David half. that The half take first and the of first John

David Kieske

in year, days, about just we'd of and the in since those end rights of runs XX the opportunities to call less had same those the be growth next we there slower call the Indiana. the the may use or we end by end in And That call of Yes, to talked a into have we when said with be marketplace. Todd. cap. XXXX, our we been may approach take the layer early till XXXX. it And And then, who us we the pipeline have with as at beginning, rights

look we'll . is, into as very So capital AFFO disciplined be kind cost also into in of we future about but layer where growth. how very the with our methodical future, our of we

John W. Payne

side, we Indianapolis. our And then on that the We're we assets operating just how in do is own. current -- to like business the we monitor with continuing performing

improvements. rewarded on assets and on those both based Caesars to put has those to the mentioned capital I've significant in other capital As businesses be continue calls,

we'll So monitor to continue that.

Operator

from comes Greg with Scotiabank. next Our McGinniss question

Greg McGinniss

And opportunities Looking also to at then rates with them help real will any with Bowlero, working cap incremental opportunities. Canyon potential contingent finding or the all ROFOs in the team investment the is negotiated your those some Ranch Or be for investments, is operator? upon time. find future or

higher we can XX, XXX be assume points maybe you've So where than would those invested basis previously?

Edward Pitoniak

Goff partnership early to but I I distress, the where in days those when our criteria what in I out back conviction out much born Greg, XXs. are could 'XX, of criteria Yes, financing applying our necessarily Canyon and question. that that saw we the opportunity Canyon coming like represent developing share in a that investment be. compelling could the years, expansion a Goff our opportunities figure of the of kind the may Trust best John be that onward, take first Richard question, element good be opportunities John Ranch stress. your a not very Rainwater operating to to some Resolution back marketplace of mentioned and with and part the of And -- certain July, think 'XX could acquisition There 'XX, the late Ranch partner announced at we And it's partners very

about So We're we're excited that. patient.

figuring opportunities We're resulting for the willing to on degree unpredictability buyer values. rights, wait increasingly which to may and pricing comes certain would-be need come for is we're the us we I to and what that right of think as in focused it to cost along out And of ROFOs the seller account call and and when between a amount flexibility any capital vein.

that we're rate at time may So lock in a out that cap be dilutive. to we that turn for to a careful future to going don't acquisition be

Greg McGinniss

investments? guess size and looking expect looking size to those Ranch around at looking they're of assets in a understand a based the is just terms that of the potential -- making there but trying Canyon Obviously, change capital of balance on that cost opportunities, the at per asset I on basis will And they're at. in

David Kieske

Greg, call. to good joining David, Thanks for it's talk the again.

For range, rooms, somewhere XXX rooms maybe XXX it's sweet a our spot. of are to kind canyon XXX, XXX but

to want the they insure of things One utilization. asset is

and around you in right that right and if developing what counts room the Lenox Austin size. be So working they're around at will on in Tucson look there,

so be potential focus of And can much vitality greater international out the that was or conventional you economics of even it ski about magnitude -- a X what dots so a think and how or that day, potentially do that do traditional you much economic size? business, better you room comes that and make has whether than of on or assets map, hotel given similar out other the we as so how it's beach room. And take on sizes the find hotel

opportunity part in we of together potentially that's the so of future. And the excitement part the that see

And be or from some the of sector. [malaise] may that coming that distress

Greg McGinniss

Okay. have the X of in this talks Any potential an for with guys but your Empire you receiving license a may have final investment been me. And answer likelihood City their updates? there? one, on about MGM just at perceived not and

Edward Pitoniak

John?

John W. Payne

be obviously, well, the -- see our as talk of We'll believe, that. were said, an X and build those, MGP incremental And to use casinos has New will should the all, rent. they're We business, partner absolutely get you and opportunity capital to of get that first process great able we And about and acquire build of on MGM that and MGM the who Yes. There's X been a we partner to right those looking some since X licenses. X assets. to is York to our now. going current

have just over see, the coming plays years. to process how this out we'll Greg, So

Operator

next question comes Rose with from Smedes Our Citi.

Bennett Rose

X.Xx of to about opportunity the you little guess, just you levels, how coverage. about coverage ask Bowlero think said I bit you over against wanted about I I with the scope time, a think

rent be converting into their lot their cushion So you of in where it there, of of but sort kind guess, I buy relative to up levels. would a EBITDA to comfortable, and continuing coverage

David Kieske

very a in to into business into conviction high asset that us you as with studied the an very -- us and and the obviously, say, business. now. the years get -- lot with the in the of incremental transformed guarantee then their X-wall studied corporate we We lease X-wall the couple the of a master low ability coverage for heard we And out lot get coverage, we comfort. of gives And of a us gives protection that go asset company

they model available the understands obviously, of corporate area high they're Xs, a how way sale-leaseback that's X-wall that creating operator Xs merits business make capital to the So sure that the and the then the model the their a and business shapes the in way given coverage, rent economics or guarantee. that grow kind benefiting to them do ensures And that who have growth-minded forms and upside they all low that from gives and to the of and they want they're we protection produce. they a to size their do generate, and that they that want target,

Bennett Rose

ask want Leverage to leverage What think -- Or Okay. up I have move kind between do kind would with that continued diversification investment see did are the wanted I the slightly you sort the away and split path, of they Moody's. -- think about then diverse and to kind into of guess, And I you still what's the in order balance I gaming? rating to just ticked what's just of X.X. metric that of S&P Moody's? you from And see sheet. to X.X to grade? need from guess, they the mean

David Kieske

debt good asset first Yes, fund Canada was and really cash on That I went supplement down, to the your quarter-over-quarter hit $XX million. at point. down Smedes, just Century leverage cash only mean look ticked the right? went up went $XXX our If up of you quarter-over-quarter million.

cash Ed the fund the out during we the quarter. As equity the closed about that the talked door acquisitions and to

gaming educating just the on on move really years. continual lease and terms educating -- it Look, gaming all it's tenants. in So We're minimis Moody's de agencies in leverage net of it's X around in education been a right? time, particular, takes Moody's, the model We've a for

many we we've takes them with agency it and consistently, an April to -- inaugural rating the XXXX, X did often investment back been notches touch in make in we in as with of offering move, for up event. of I think you And took talked when we've our they will grade an a about, our past,

just white and hard what business little say very, continue bit merits your and or you -- time, hopeful sanctity cash really kind of we're to and period you no and diligent of there's coming flows upgrade the will the say, been coming. And be an do a months what a it's have trigger. we of real our an the of in It's acknowledgment at. very do of of model, prove working So which black there

Operator

from Green with Street. question Darling next Chris Our comes

Chris Darling

been the real estate, like playing relative to estate you traditional your traditional maybe where been back I It in think positively but Going seems still in more commercial out environment, mind? real specifically. moving there's now? or dynamic if over thinking are past, commensurate to gaming pricing right gaming repriced a estate. months this has call the Or it, about dynamic XX-year XX is if wonder And real cap rates fashion that so,

Edward Pitoniak

to Yes, Chris, talk to you. good

took we honest obviously, the trade don't where Bellagio, would The investment at. in think box I be, place answer know. believe I a most recent it big was realty in gaming, income

John W. Payne

X.X%.

Edward Pitoniak

X.X% cap rate.

exactly not by covered real data of point. right where kinds to of categories industrial a Green outside So Street, rates maybe perhaps of seeing now, cap the estate centers. lot you're There's your those and

of now want a where themselves now growing it John global I'll but a is to point the Vegas, so a we that But week has about I performed the place there have So of investment, Las trivial, other resilience sound global and last much is bit Las Vegas Vegas, do lot data earth especially she's And PINK, instance, artists I right there. our Allegion power just think But residency it in place on at because of recognizing Las Bellagio Las is been saying, the no don't at. may going to, really basis. announcing, want that having a because artist as Vegas global for it. like I situate on a to beyond for point capital to I vitality, of think, back invested. has what There's that

in some secular seeing to headwinds So value lot facing should obviously you resiliency a are constitute activity supply-demand resilience you're or degree imbalance. of of that going where not of other see sectors economic that you're of either a

John W. Payne

the unique is performing markets, performance incredibly these well. their quite in of Yes. there's but lot Ed, the particularly right? in yes, the you a lot a city Las core So the is other that's thing operating of gaming other casinos, Vegas called volatility than now businesses, business that in well. out right, are business really the doing right of

how this out. plays see we'll So

Operator

We to now Crossett BNP. turn with Nate

Nathan Daniel Crossett

quick X sheet. balance just Maybe on X the

your maturity? the addressing the you If and but us address just how where price maybe guidance the swaps then term us mentioned maybe that you maturities you're be? band thinking money next tell could talking would And think for about I leverage year, could you just for you know can like you What just about remind -- debt today?

David Kieske

May legging of of $XXX X, a we originally our and policy agencies we mean David. back opens Yes, we XXXX. ticked we a on vocal have get forward been been X and X collectively, 'XX. our Nate, a ahead to hedge bit as up MGP net about, mentioned told XX-year into the And agencies between pace understood yes. little the of work We X, It's getting then money, to the refinancing. very XXXX, the I notional back that that kind We've that the that terms X.Xx in acknowledged of very exceeded it's EBITDA down summer leverage and hard would due there. leverage talked maturity and to to Obviously, debt the in to swaps we've and we've million out February with do starting we get that committed of a acquisition window have that comes we've

That or XX XX-year somewhere basis the give X [ [ over points money take, XX today or X ], XX XX-year. XX spread ],

a have kind a we'll here that's access X market lot to. to to today, And a so But capital. that low REITs mid-Xs all that X, is have it or access is tens X, not do the XX-year the term assess of we with loan of XX, sit -- as mix we of do market

as focused tenor, take our advantage but very the possible. laddering be the also we kind extend the of best ensuring maturities we'll that So of and best of pricing the on

Edward Pitoniak

debt reiterate, it just a forward will trailing capital numbers obviously of accretive effect. only it recent on up not equity when million that Nate, invest does have against our we in I'll And while billion $X $XX investments, show obviously deleveraging leverage of

Nathan Daniel Crossett

X helpful. Maybe just on That's the Okay. Bowlero. more

time, their of how potential given they about maybe size portfolio. it's willing here? over they think Have like I much opportunity indication XX% just trying be to to the you would any do

David Kieske

we as of today, all are sale-leaseback here Nate, a sit assets Well, format. their in almost

our X So VICI's desire access marketplace. it grow. opportunities you of commentary. a find growth reason able And to time grow, materials were relationship we in as as to the And and this opportunities obviously, to transaction And be would potential develop over desire saw and the they future build is in VICI's to Bowlero's the capital.

they're they're -- nothing Bowlero with come directly deal together, VICI look you very balance here that If be the optimistic off with the at throw Bowlero we're to and the announcements, thrilled partner today. sit the sheet we there there's as but the more will

Edward Pitoniak

exact Yes. I numbers. And can't the remember

Nate. they hopefully, might, leader is a is the or even own category with remarkably in Bowlero think the Bowlero they the do keep I mind unconsolidated in own David market So thing that XX% But John owning XX%. to of -- category,

the assets, to enjoy to And a What years. growth their with will between partnership, future partner first the that exclusive So VICI where and opportunity to continue transform place. restate next up the X is financing of for the and right financing thanks transform a them to transform again, roll economics offer. the Bowlero an we'll amounts take can experiences basically assets

Operator

to We Macquarie. Beynon now Chad turn with

Chad Beynon

time multiples rates, one know me I U.S., non-U.S. the the for changed opportunities talked understanding -- past, U.S. in countries you're anything about relationships? cap phases outside through respect in of to markets current going cycles. growing relationships Just terms how take thinking this Different morning. that and with of these of are obviously And different versus you've economic has about

Edward Pitoniak

investments and we're someone need then continue ever And invested John experiential country the markets. development make the Yes. given are those care and we as before to we categories And well Canada another Passport be passport, take categories expanded U.S. estate research And sure very to to Kelyn take be they based to carries team knowledge we will and business have is real market time markets the internationally. as commit there. on I again, proud of the interest international both Canadian as the and will out to interest who those that marketplaces capital. within as point where wise the great of make of situations deep and overall

Elliot, things think, I wrap correct? up, will that

Operator

to Q&A. [ToniorCEO] our now concludes Pitoniak Edward I'll hand Yes, back this closing remarks.

Edward Pitoniak

Yes. really today. wish and of all appreciate very, us, with Thank the we you you, you being time It time. through. on best time Elliot. we call Thanks, Again, the for thank everybody, today. We we And this your during will you get volatile very is a

Operator

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

now You lines. disconnect may your

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