VICI Properties (VICI) 23 Feb 242023 Q4 Earnings call transcript

Company Profile

Participants

Samantha Gallagher	executive
Edward Pitoniak	executive
John W. Payne	executive
David Kieske	executive
Anthony Paolone	analyst
Barry Jonas	analyst
Caitlin Burrows	analyst
Ravi Vaidya	analyst
Chris Darling	analyst
Greg McGinniss	analyst
Nicholas Joseph	analyst
James Kammert	analyst
Wesley Golladay	analyst
Daniel Guglielmo	analyst
Jay Kornreich	analyst
John DeCree	analyst

Call transcript

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, February 23, 2024. I will now turn the call over to Samantha Gallagher, General Counsel with VICI Properties.

Samantha Gallagher

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

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

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

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

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

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

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

Edward Pitoniak

forward. XXXX results John morning, approach, Kieske XXXX good XXXX our accomplishments Payne start XXXX way growth and discuss our this guidance. about will words and everyone. VICI financial with our and and a Samantha, few the share I'll you, David Thank morning will

announced VICI of per we leaders report growth final the market make S&P XX.X%. share growth likely XX one night, Last AFFO representing per income VICI's representing S&P of There XXX year-end. REITs REIT $X.XX, XX XXXX growth will XXXX year-over-year among XXXX per AFFO of capitalization U.S. approximately share. at equity the REITs AFFO of that share XXX the are XX% overall,

and new work beyond. the also is continue in the both growth in per of for but growth to of gaming ] XXXX VICI XXXX AFFO investments. both of to and proud property and I'm XXXX, acquisitions investments largely did [ VICI's XXXX our relationships proud I'm did produce team share XXXX in growth new we credit non-gaming and result what forging property

XXXX in our activities geographic income. in and investment produced growth portfolio Our quality, diversity diversity, tenant

the table. comes Indeed, should guidance, into of S&P per discuss XXXX it share as XXX to moment expect XXXX AFFO we David put when our XXXX share income the top our per XXXX in will growth well AFFO projected regarding VICI REIT a growth half growth,

our gaming countries Texas, and a this far, in the pioneering It U.S. Whistler, bottle. acquisition that we produce skiing XXXX low Carolina. days X could mountain California days as and whited It days Bowlero even Columbia, including states a environment inside in new and geographies, very to so in frankly, We kept amidst team result to days in my tough coastal navigate XXXX XXXX. in in working and growth wasn't in challenging as living But in XXXX. easy and out XXXX. noncommercial VICI was days visibility, North invested such new describe through Most so most me foggy future British remind where milk of such in

with new as leading We New such recreation We invested partnerships We York's our expanded Las as our Piers like youth sports. Strip. of interest primary family through position incomparable on Cabot and brands acquired Chelsea owner real and the pilgrimage in the estate categories leasehold Vegas in Canyon Ranch. the

real We Las Vegas work VICI's entertainment most full Las is compelling strongly landscape, stop. our the position of hospitality. with one estate I Vegas' and in in investments capitalize the to period, global Vegas in continue Las leadership to current partners believe on global commercial investing investment

of As that within night, of investments capital our in early closing we figures XXXX, XXXX, billion of debt. year. and set not announced $X.X release the remaining earnings last in do Bay assumption our closed Grand venture we joint Note these $X.X billion our January the out and December MGM billion acquisitions which CMBS in Mandalay the early $X.X including we include announced of XXXX, in

A fundamental nongaming importance our gaming investing XXXX in was and accretive.

blended X.X%. unlevered yield initial capital of announced were a at Our investment investments XXXX made

of X.X debt enhancing. achieving balance was $X.X debt. of of X:X, activity to investment to adjusted investment cash that Our billion our ratio equity EBITDA. approximately leverage only and on XXXX sheet $XXX funding funded also net to an about commitment We investing million incremental with equity this X.Xx of $X.X billion long-range target to net demonstrating and of our debt

billion resources outlook within we conditions and ahead approximately XXXX the into liquidity. and the of we and despite to cash deploy and XXXX, attractive believe constrained and/or want growth. to resources accretive we $X.X to cloudy continuing our with to capital forward As can gaming conditions, macroeconomic experiential macro operators who of capital look Needless begin environment will continued be need say, grow equity

portfolio we continue XXXX, quality. a will of to build in Finally,

VICI A, real investors estate real me Class potential continue pioneer A we What will must VICI quality and quality net to is scale, estate. Class estate model. estate I within criticality great mission in before investors to Class real A the integrity and lease. understand real You've scale, mission fully is and VICI heard and say net to transparency can, lease great do the And strong By own of bringing and our mean of A existing criticality. the enable high economic enables believe that Class we the of to

end, to Properties the VICI. that book that proud we to the VICI To of style the launching we're book, today brings table magnificence photo estate digital by life announce are coffee a owned real that

I can work at You good Hayes this team encourage our thank for and online of publishing book in a to her www.viciproperties.com. viewing. this view give our And I this book. website, book you great Honea strongly producing

in you If you're a VICI pride shareholder, what great own. the book will give you I believe

over that, And with to the I'll now call John. turn

John W. Payne

XXXX, broader market to navigate able everyone. REITs capital volatile particularly and the for manners morning deployed a Good to accretive VICI year. Ed. In in was throughout backdrop, Thanks, consistently

deployed gaming, entertainment at a X.X% investments our $X.X to hospitality of we that Over family the credit our course ability across blended investable expanded our and creatively geographic universe of broadened approximately internationally, billion yield and and across investments. reach XXXX, invest domestically property-related deepened through

in Our and maintaining Every successfully to growth-oriented our year before I've was work operators. mentioned effort team and with multiyear VICI, up on due ability transact the best-in-class for part to shows our focuses calls. day developing last on relationships at earnings

and a landlord create their view While as our tenants. some capital a as extract tenants partner REITs We long-term describe value. themselves with value position ourselves simply themselves to collaborating from to

our have operators about the in end, you pursue who a environment important as serving of heard pursue and growth partner to years that our focus as visibility low as numerous over been which we with prioritizing me speak not have underwrite To that characterized in current capital. and And there it's we environment. opportunities. also that understand situations and of many relationships philosophy on compass growth. of fluctuating elect serves to An capital is the energetically This assess opportunities by cost

VICI to have over is significant position the years. in the shareholder very created value fortunate

XXXX, an of For example, AFFO high the do at share while purely comparable at per from we've CAGR sake to our rate, has growing. a need our single-digit we X.X% grown for not believe pursue growth through dividend grown we and XXXX

few transaction with high over would S&P projects derived new collaboratively Las visiting pillars and of is opportunities ROI growth travels touch you newer in our years. in order elements international REIT operators to that predominantly operating the given complete For little work two, Number who only in locations. assessing meeting markets, with Number investing I even $XX accretive volume investments, growth XXX one, roll Vegas invested XX% successfully regional, capital studying our the X partners our have and us and achieve far those be gaming of of industry, the landscape mutually wide, as beneficial properties, rent outcomes. across our from story, in to and of team on may funding gaming to like we a a billion to allowed

believe MGM as where acquisition growth, and Number Vegas, sectors are demonstrated opportunities added transactions in with through for our number getting last three, our themselves a a expanded four, by we improved in constantly and market-leading of who our to for us transactions much opportunities roll-up announced our regional XXXX, from are portfolio, MGM with supplementing sourcing for Bowlero balance leisure VICI Class with get with Cabot position our the saw in operator. Growth we open our And world-class an footprint assets keep including on positioned significantly hospitality Resorts, sheet and investment-grade benefit investments A October to tailwinds. secular gaming, better experiential positioned we through to operators gaming year. We which as bigger in focus finally, has can in partnership of you eyes that Las Properties long-term industry,

adhering different particular, dive record underwriting pillars. markets criteria much while is further has our we your into with that are compensated hold we properties, In classes. firm and as assess across asset capital track ensuring date prudent appropriately strategic executing we our driven risk pursue of across opportunities As XXXX, and standards, we to to the

which a opportunities, a I said earlier, transaction. feeds collaboration. right of We the with as their team for intentions pursuing partnerships behind entire maintain we evaluating to flywheel the the ultimately explains our operators partner's proceeds, use growth-focused preference which believe lead record creation track value of through and right importantly, typically the And

to during may to with balance sheet combined believe and of position deals strong afford inside ability time a to shapes sizes, with the "skiing us executing commitment other our relationship accretive developing We be our bottle." and and great milk REITs all when stuck deepening will continue liquidity operators

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

David Kieske

speak your with you, Thank the capital provide weather of all our our to ensuring to balance exemplifies and to XXXX liquidity designed want years a and start by X-plus existence maintained credit continued partners and have our that deserve. accretively, protection allocate and sheet. It's cycles have we profile safety of we appreciate and sheet discipline great balance we everyone the equity John. today, I with time.

$X.X our transactions. gross forward remains we billion in the fund During outstanding price approximately shares program In year, raised million million the via per through we at a $XXX in in throughout to includes year the January ATM over was today. equity Those of proceeds forward were That equity. proceeds. gross sale our million, throughout proceeds We XXXX, share. $XX raised $X of used billion and raised XX.X which accretively raising utilized XXXX, QX amount $XXX the forward in forward

our under we availability And This $X.X credit just and million million $XXX our the and comprised our of brings gross in via liquidity. $XXX liquidity short-term ATM outstanding outstanding revolving million, X.X have forward. sold December forwards cash, $X.X raising investments our in XXXX, subsequent the XX, million shares total under approximately equivalents to equity proceeds facility. in bolstering Currently, cash QX under in we proceeds year-end, to $XXX as $XXX overall of forward of under of XXXX, billion billion total million

option, additional our allowing $X has lender commitments to up request addition, revolving credit of In accordion an billion. to facility us

today. capital environment As the positioned we we believe we here and raise well any not navigate we XXXX, sit to as to incremental do are begin extremely current need

of debt is terms total $XX.X In our currently leverage, billion.

year full forward quarter equity recent Our X.Xx excluding of leverage EBITDA a unsettled within to is acquisitions fourth debt our the range. impact annualized activity from approximately net our of target adjusted for and

our offering a average account with We a we into utilized in X.X investment-grade April portfolio connection weighted rate taking inaugural of that years have average interest weighted X.XX%, to maturity. and of our XXXX hedge

X aggregate portfolio we've entered an forward starting maturity, treasury swap of December a XX, notional of $X.XX ahead This effective of series rate rate which our As amount May has interest agreements X.XX%. bond an into of $XXX billion of million. has

of increase per AFFO share the quarter, compared the X.X% quarter XXXX. the statement, for December Just was income touching $X.XX ended to on an for $X.XX XX,

per and Ed XX.X% one XXX increase full the was $X.XX, across to the the an mentioned, XXXX REITs. of AFFO for of share S&P year For the VICI $X.XX compared XXXX, leaders full year making as

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

the was be X.X%. million across one of only sector quarter lowest $XX.X only and in not continues a total for triple-net was percentage to revenues G&A of Our but This the ratios the all REITs. as

or XXXX, dollars Based expected guidance. share you last both deliver share in for XXXX as AFFO release between of are the VICI our night, 'XX XX, on be expects as share is And per per basis. midpoint XXXX. AFFO well we year-over-year initiating in per ending $X.XXX a the begin Turning a AFFO our saw to our point between to absolute very for we December X%, attractive guidance $X.XX year per as $X.XX billion on $X.XX and growth of to share. starting and guidance, billion as

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

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

Operator

JPMorgan. Instructions] The comes first [Operator question Paolone from with Anthony

Anthony Paolone

size or my put pipeline not deal is I geographically, around whether right whether maybe skewed some yields? and just question it's first your guess you now, either dimensions somewhere could

Edward Pitoniak

obviously and from be And conversations John we're that in talk about and pretty start, I'll and the sober remarks, sober with us John can recent to about and moment. that, say of REITs nongaming the like I yet Tony, we have continue to have about marketplace. opening [ available Agri kick Realty team on, in having you, and us. what work kind we're capital We're of and sober, our the ] number John spirit in said that and weeks then of in. We're a as about would heard trap good excited activity the to both other speak sober in and David Income. in may you've the very lines gaming going way such that can markets, a that a

in wouldn't Vegas, John, is The other what at emphasize, necessarily it that we the I got, you I with find where opportunities the nature of Especially when of thousand Tony, property the look brings own. own REITs, rooms. other Las they we've to XX-odd think, we hotel want point magnitude given

of Venetian, at the like Nicole to that If asset you is given given asset of on just Sphere, so, opportunity look continue maximize the square including which is impact productivity going an XX team strong. and of manage, Patrick million feet, the to the so parking and there, what's the asset

REITs of building, the with going the not doing, the unfinished square especially of feet. of you the XXX,XXX again, square that incremental gone building maximize opportunity concrete the the continue us have million square and XX triple-net that represents have million job asset, investment opening square understand the And to past concrete generally, That square help to magnitude likely of inside remarks in is marketplace that feet concrete XXX,XXX walls, or not the and to it's opportunity advantage find the stage, to that wouldn't mean certainly generally concrete feet, are REITs I most team lease investment Venetian ceiling, growth Sphere. back at tend we goes to which taking for to floors, never such in XX,XXX other feet this feet. my are that assets that there magnitude XX

But this? to John, you to want add

John W. Payne

comments, in hear can Ed's some Vegas have you Las well. I recently, spent as from he Tony, time which

question my golf, we our whether mixed what the we as we and there, partners' remarks, indoor You what like is asked like year sectors, pilgrimage, our And been youth proud water 'XX as very in I in a heard at about sectors of also a looks and and think well. made entertainment target it continue great Las spending of locations. have a We're wellness different obviously sports youth lot to center, investment We sports. look first to be in from going success Vegas. you use family of which time parks,

time to of checking of more time. that our one says are at this that that we that we what of talk 'XX. my the could So done with real shouldn't company variety proud and in for just focus list 'XX about confuse the and these we that ones is off see a whole we continues casino to our checked not investments. really I at boxes long-term continue operators looking company And this and right a sectors which team be capital business in for make of they've what can't the But the kind the don't spend we've some and there and of my be

Anthony Paolone

one just of follow-up because couple asked Okay. was David, for of then I have a I detailed overnight. maybe And kind times this

the remind in guidance just what -- share us goes like or equity you do not? how like treating guidance, how like the count there your and in forward Just you're

David Kieske

bit treasury the of from impact There's a proceeds dilution implied the drawdown. little that's no there's count, but stock impact. use or of share ultimate Tony, Yes. in only

Edward Pitoniak

Tony, of funding, given taking we're we're of we having horsepower way a Another in the our treasury have it it, sheet, balance not the actually marginal or and putting it credit any but technically, method. our from -- by don't virtue on is assuming stock penalty

Operator

to Securities. We now Truist turn Barry Jonas with

Barry Jonas

the that? start you're about just wanted option. Can Guys, it you timing walk different Center specifically to exercising considerations of with through as call Caesars maybe and thinking

Edward Pitoniak

option. nature don't Well, of the cost our clearly, will can as we the Barry, surprise I would that to not nature within And what a predicated of call come want call doing if funding we is. as be be choose it our inherent do. timing, were dilution, certainly think option which obviously, opportunistic would we anybody as on given so, our creating any to that to don't be to -- timing want And we in exercise ever we

with going visibility any bottle, kind through back be. would time inside theme of state milk its skiing XXXX, right exactitude the when to so exactly it's that given the of such a the to current predict hard is And

Barry Jonas

Got it. then, And higher Ed, a more Got it. level maybe question. just

I tribes I some doing But have but puts you to been financing could There's clear and You've done commercial market before. and about of sizable with and with more land American the talk a type banks takes it's deals tribal there, clear land. was investors debt tribes, risks on with it's needs. structure able native something hoping think overcome in deal

Edward Pitoniak

we that may tell sounded seemed I complete recent of one that you read but were there to it candor, will really the participants had, means notes work rather, Barry. to won't interesting figured I yet, do I'll with that to the know I'll your it. John, right? how I haven't from which would session in out say Yes. And you to exactly say session I John, bullish, start, over read. and turn be

John W. Payne

that to tribes on the build that excited X the partners you commercial And touched continue Barry, to been them in report the there we've talk that because other opportunity and have we'll But we've been relationships really to opportunity to help see primarily -- that as we could on in something said, gotten sector, our can them -- as study study but with travel came to well. focused land, sector. with the to commercial -- continue know commercial grow on with the their saw it's an Ed be we nation's partners we out and

Operator

comes question Caitlin from Goldman next Our Sachs. with Burrows

Caitlin Burrows

guys part I repeat business. have guess that made be significant of clear a could your it you business

and pop So and/or to we XXXX if maybe business you up? in operator should repeat can talk some partners see see about the new continue pipeline

John W. Payne

partners Yes, and to and boxes Caitlin. the Ed No grow Very good meet I relatively coming coming Vegas resorts gaming alluded future in over question them of that years. capital boxes with can attractions. And as even whether the amazing Las new asked. near talk a in question Las that opportunity we partners restaurants, you currently grow, hotel them and to, how XX those continue our in our with Vegas. new about help are in, we owned shouldn't years that's call with to look in The provide as partners in could lot in the the rooms, nongaming

only we weren't Ed Detroit, National the regional sits there well. our we necessarily Harbor land, But Sphere are that's in a obviously, regional of MGM in the Las growth assets the there grow or building coming because over are as or that not large pillar that the not direct they're our in opportunities assets, but see tenant. mentioned, company as in assets for whether in on involved our Vegas, our to years, where

can continue to forging Sam, our I roster? is, grow. them to else in use to company our answer team, new to expand think anyone me, of question is or we my is then new help relationships out And see there's that companies are your looking the second capital absolutely new David, part if sectors we And the the tenant Ed,

the be year. if new or you roster coming wouldn't new over see our in I operators some surprised So tenants

Edward Pitoniak

of -- to questions what only offer have occasions, as many little Caitlin, on is there that gaming of still have for in very remaining own we to the we emphasized just estate it's And we why rich focused don't are real do gaming, on don't me the you profitable all to as many, add experiences you of a just end real given just gaming. on been great be estate. going who time and Obviously, just intensely it that great business let And bit. benefits real comes understandably with fundamentally investing to categories experiential first within which is, well, and fact a by the their other occupied customers. But one all, operators why

So invest that's in experiential. other It's fundamental to good fundamentally the reason real estate.

The Canyon regulatory growth a are that readily experiential second back available dimension strict is to related stores operators. that see is in your that test The And Caitlin, available advantages subject very gaming? nature like opportunities have Bowlero new operators that, when is network is not this of Cabot, they our that Wolf, initial to it it to like gives for to a us of the grow as and be control. always we Great like to not growth a may a goes in like Ranch one to a gaming growth gaming and such question,

they their a than For the or as energy to operators not have to down opportunity that restrictions hand, suffer the great can slowing a other with apply network of that tends on and through growth an M&A. grow the be to seized Cabot, does global cadence other attempting gaming example,

Caitlin Burrows

of No, maybe bit. then makes Got a it. sense. a to just And the that lot back pipeline

know leasebacks 'XX. the guys I over XX mentioned transaction continue but you past And so you quiet both to in sale situation, current how and CRE a you're with despite active market. the You sober months invest lending to guys were or

pipeline makes think the half XX I wondering what you So activity that like or like? size, end more of being could maybe on mix specifically, some if be that more maybe how give was could you today, up first the and detail could

David Kieske

side. active of you. of mentioned, John Caitlin, been relationship hear for talked today. and a it's the comments, capital. sale-leaseback capital as that's us being about as solving from is David. nature it's, in Great both as The and as on our just partners' where side the capital joining loan source you well Thanks And to objectives our his growth we've

X, they're sports with hotel attractive sometimes the sale a experiential where assets building comes facility leaseback. will you in going growth And and that like and a Homefield very very, door saw which capital to at opportunity both construct day lead very, to our

amount of talking look sale that a or loans partners and to it's in kind we That's just our about out So percentage call. leasebacks. about at -- help grow we're x ways partners put finding we and kind basket of it of we parse not can x that of amount always of we've about this on great how It's talked how pipeline. the it our

Operator

We to now Haendel St. turn

with Juste Mizuho.

Ravi Vaidya

broader you deployment is requirements This mezz I your Haendel. line just the changed hope about XX I And strategy. for how sizing capital doing are construction acquisition months? last the over are underwriting the those pipeline? that of in return Vaidya well. Ravi that financing lending our to a and how to How and should the think all relative noticed you is becoming that's larger of we X proportion

David Kieske

of development. our of about little the Good your Obviously, those of our kind you. that at, what capital. what's what's we standpoint Ravi, it. is couple funding we Then transaction the lender on how but credit spread duration it's the the what's ways spread are good about in lender we risk-adjusted senior and art at the most of ensuring cadence us. the at bit protected is And hear of the how from science equity we to loans, ultimately, right of looks a that especially what's achieving around -- and capital, look I day, think it's day, -- Are senior mezz Look, of a much sponsor end there's our the to ahead the equity of senior. -- a feel David. caught the the the project. question, cost it's more from we the at than the always every end

Edward Pitoniak

assets forge our will your management. then will part use first to to under the a it And be back question, go of of it percentage relationships. always we to And minor

We establish Piers or front interest of have a in in example, lending using obviously, primary to of leasehold the to December. the Chelsea relationship us an acquisition with led right that

it allocation. fact a our XXXX. strategic a every to door use tool both steadier the relationships in strategic single will we month So to of tool we got capital We're proud out as the create and to capital develop cadence very a

was And the I and in the true by door you, of acquisitions. get we to that quarters lumpy big lumpy nature out what then, not can were years, early gaming whole our given capital did allocation was our was where there that tied tell capital which big went back

growth growth a generate is forge is accretive that years, a again, driving spreads we've strategic very some And able on is it in basis. very It tool achieve a to in lucrative, it So very been and of steady to return earnings about our given recent tool in the can relationships. growth. energetic we others of have to through earnings the not terms sheet. be balance pioneering not able grow the as use how asset they're we're and of again, business creating classes of terms achieve may as if and that And both we in been,

Ravi Vaidya

very That's helpful. it. Got

Call attractive theoretically opportunity XX the market? the the your you view, would one like Just And is please current with discuss [ ] Can something Indiana how in here. more In how assets? you that? fund the

Edward Pitoniak

call a and as will [ in executing be it. said when do years is would if at XX opportunity as a fact, back we Well, XX [ dilutive accretive a was be opportunity, I excited will not few Yes. not call to was it's ] opportunity. about it an would agreement few it back. it is not accretive there be Barry, ], when obviously, we It's the opportunity And an struck as in struck a years attractive response

Operator

Street. comes with Green question next from Chris Our Darling

Chris Darling

on call standpoint? back let's Just from master within options, going to for I'm deal you I'm that exercise the assume just lease? made those it argument's you rent structure kind a Caesars think So again, sake, do the larger curious, tighter if sense would rent possibly how stand-alone options. wondering, the coverage a of would just basis about structure you

Edward Pitoniak

Well, yes, Chris.

we coverages but we decades we call explore virtue like -- Caesars, by good to to come. a basis, and it about rent overall to is with current for an So such agreement of discussion and set the would subject on feels the at rent of is everybody that are and have coverage that continue they really one

Chris Darling

more right. the Homefield for agreement. just touching on Fair enough. One All you,

the can hoping Just scope of elaborate on the expansion. you future project, potential

VICI So my the the over team wondering of how is look over what total investment to just time. I'm trying time? what development, the scaling is like thinking additional the scope locations for to arms wrap about current for investment might And around estimated

John W. Payne

operator spending Homefield. that found see to X it's investments rooms to Kansas we our having a in continue I the and the fields. youth into also having but things the Yes, youth to the announcement that lot area the months rent, a controls partner ago, a restaurants you'll the not in with the And also couple connected facility in of rent sports sports the youth When the but studying we City fields That's Chris, one process. controls talked a business. we learned who an sports few We've numerous about them John. sports Margaritaville think other not hotel we the to they're building having amazing is place cash opportunity made We connected if controls just who announced first the or registers, and spaces, to resorts. of only years stadiums

investment and that on have casino million-ish Ranch as business which the our announced or States. the around purposely right just not this over with initial time, we've only Midwest opportunity Homefield, we it's to But sites other them, Homefield. find much So expand also United any partner so that that or but study with partners We've with not Cabot we does that's now Canyon is $XXX a partner hope with any not development, whether investment only or site, further the talked with to the took time about, to grow. and to

Operator

McGinniss Greg to turn with now Scotiabank. We

Greg McGinniss

what gaming continue invest you receiving in we investment of compares are get a to there? sort as how it more from opaque of an comfortable investment? yield premium potential nongaming to financials with as assets, should So standpoint investors And kind

Edward Pitoniak

Yes.

they fundamental possible not right, balance they're financials not a public, meet So our an are fiduciary that partnering across we obviously positions their won't exercise also the the the responsibility manage is operating to experiential which the portfolios. that that strength sheets at the crystal of lease we're end the ensuring rent that's where ensures the in operator degree greatest if the And a if very with we're supportive in same to clear of business be day, of liquidity unable to they're is Greg, way, you have net very, partners tenant in lot in crystal not the and and are clear rent. whole way our

can got our in thin. a that's should weather But that can take I be in that gaming emphasize forth in. categories, very at come categories risk enable of end mitigant the first evaluating to make day, lower-than-average another that versus way. We experiential investing us they we the sure We've businesses and it's to obviously to discretionary through all And the advantage up are criteria we're also cyclicality the it going ensuring rent our underwriting them history at is many comes is widely large, when experiential a to think whatever which again, of of of criteria, that consumer of they thick rigorous cover that will the and and key strength to practice. their investments

Greg McGinniss

case there's on underwriting cases up to look evaluating, were lending not to Just don't construction that money be kind providing what's the in that the you're targets flows in comfortable get cash to maybe like recollect the ability -- of follow hit expected? to loans cash that. the where In and of trying in-place there you're the flows or process quite that terms when

Edward Pitoniak

asset, is last one at is the that we're level that good operating still obviously we exposure last dollar up the dollar if a in end such exposure at level last ensuring exposure Well, are that did we whereby at, our that of criteria owning key the dollar economics the and shape. would be lending

John W. Payne

of down it to, and then the sponsor, the Greg, mentioned, Yes, equity. of kind I comes as quality

are studied So our the of obviously that for in like went sectors did led sale-leaseback before value ultimately the investments, But cost, loan and and our by our sector Indoor team agreements. protections we documented to to certain then of XX-odd sectors. members the lot we overall, study anything. water that we a parks, months loan deep into

And the or then have durability who be we put that sector and of the platform place. so can operator protections whether it's through ultimate we the it gaining direct real that lending the is, the of estate conviction in ownership

Greg McGinniss

so team Okay. some this me. the by And just a that added your source team in balance acquisitions investment shareholder-friendly help to question you've done John and I'd final his from acknowledging far. well. that a how But versus the know preface team great expense one G&A, like do And given as we opportunities? investment could low members you that more has to great larger work underwrite that sector investing and maybe line

Edward Pitoniak

the we them. opportunity. the deal in of intensely. one advisory parties, a No, underinvestment think, with, the some there's possibly reward force first they compelling great us. think risk have such ways best partnership relationships question other of Greg. From engage as work regularly of out when them treated X, by, we the We they we it's strongest our if are means us. call when multiplier advisers They anybody And day they investment G&A real very forged for with. for with the I This it's having we we We there. respect do banks, wrestle And estate say as in firms which great is will, for them a we a you strategic would I the question, have the are that can. always a

added inflationary end saving G&A which ever shortchanging we've on of impact event in we G&A, certainly an and on the our And too shareholders X in less we low in by will years. benefits. to has really point where couple running with If the the thin, period in gets G&A obviously load. add Overall, last feel inflationary begin the resources to here it way we're up we resources

Operator

from Our next Citi. Nick comes question with Joseph

Nicholas Joseph

[indiscernible]. far performance mainstream I on some it, also like local thoughts has wanted to but or there's your get on thus seems of good favorable It commentary changes there. been kind media management articles on

performance Just is wondering there? how

John W. Payne

a say, team think It there, haven't we what that I spent will operating think Nick, walk the Las there time us sure "Oh, they proud necessarily the sure who is what that about "Wow, everyone the that asset I I takes comment of people and and place team have place was is it time. that to up is financial proud Fontainebleau says, time Vegas years, over do takes place." amazing of. talk the and and beautiful team, a the I won't what the through through a Koch Industries, operating facility met but make this have performance, walks it a the And miss." about of are build an a for think those in by time, database takes but most I I built anyone the

Edward Pitoniak

people And bit The wasn't. Sphere our of God, The utterly negative. negativity teams to overly coverage, it. weekend of week. for to the many it. in gets wanted which they've my to be of And regularly or little amazing to determined way drivers business around partners. was Well, how the it I the either a be Nick, disaster. about my because given Sphere opportunity this much struck The weary the vent was coverage an so "oh, was how a loved I talk me you've already operating been FX The love to to God. Oh am about they're It be going around media is that? a I disaster." again, what, proven U.K. Oh by is going media guess go. earlier

Las event the for So for Vegas Super a just and phenomenal Bowl. again, NFL.

absolutely I agree So with you.

it Some have over it of business the in over sure right how make negative. yet doing time. with can know to unaffiliated how strong they've But know patience you firepower for the we the the challenging open strip. We working. hard to of property the And be coverage course. they're is asset again, been the work And that enough know that the that is they're an bring more backing themselves and Koch, is on but magnificent forth the things backing due this to they set We utterly that to quite people has what involved. press

Nicholas Joseph

pipeline others helpful. stickier? think about at very sense just And pricing lot most a the I I some in a rates, talked environment makes and mean, know it's kind I of cap I imagine expansion a the you That's then power environment just the today's sober more of bit out -- where on opportunities, seeing if the versus probably least are where there. little kind of where more we've would But investment stickiness

Edward Pitoniak

Are asset you talking about cap rate variability classes? across various experiential

Nicholas Joseph

Exactly.

Edward Pitoniak

acquire income XXXX that have want I we to higher the obviously tremendous $X.X know, if amount add. yield and don't a generalizing, I billion a of you would John, variability the able put I we've yet in X.X% tough not you don't across David, Yes. John door David of know obviously we obviously seen have for yields. trading out and classes. saw know amount seeing a and tremendous don't asset with unlevered We're our I to but been at that time

David Kieske

the Yes. I terms broader it of well, asset -- think covered you're than it's lease. Nick, I that mean, different you but in no any would other class net --

variability sorry, you -- a around spreads we've sellers' willingness obviously willing volatility to out that just there's in bid backdrop where and the or -- about. -- transact buyers, and talked You

it's tenure there's It's caution both is the we're going. a but somewhat an is going of so broader And sides market. air broader environment the and of in just where until cautious difference the out quieter economy figure where opportunity a out on a -- there, going, of bit to CRE

Operator

ISI. We turn with now Jim Evercore to Kammert

James Kammert

of overall market out think going to if all could verticals, out, company. winnowing tying didn't of other opportunity to which verticals pan expand, is potential sort figure widening? addressable quantify just catch vetted in investment VICI continue basin do your operating a you remain is investing sort much gaming-focused logical. very that to mentioned you've you're thoroughly that you total or is you new or some for Obviously, But set But

John W. Payne

widening. it definitely is Yes,

time not that us we there for other a learn are, right locations them. that we learn hey, we come we ultimately about As the There's opportunities are were today. with that where operators spend are, study who their and -- few saying,

is the wider. So question, funnel no getting

Edward Pitoniak

Yes. And an you know to I'll give of. begin really of example Jim. as When you a category, David that, has spoken

at on within it them, years growth and and you to an in get minds not over Great across taking of you And continuing what's the been which money parents' category, that operators really geographies. water the if spending are we the water opportunities because experience witness adult really multiple know will, their losing simply and remarkable their category is really for Wolf, to more but the creative are water Great -- way experiences few As first invested focused last the represents experiences in through Wolf, kids to innovate also exciting innovative crowd. the which that's around

James Kammert

it VICI. any been Great. underway for It's have as at details item. would landlord? for there asset dispute is an the that implications And important National small that would in Harbor. around -- MGM press that? some you have any one It's And But tax a obviously

Edward Pitoniak

tenant be we Yes, wouldn't would that. a that matter, so comment on

Operator

comes Baird. question next with Our Wes from Golladay

Wesley Golladay

going that's over we've more Vegas. Just to been looking looking asset? next and book if the build? be specifically to on to And the Is everyone, would Las time at so, out year anything in at the scope order Mirage what this on the there go

John W. Payne

question to probably change Mirage little as partner Vegas. over the nice and operations a Yes. the ago But for to Hard designing have from timing. Mirage Wes, to from been on been year And the they've, it's the Las the approvals think has to the probably that talk story, following out operating, getting been Rock John. you've also but great the a our Hard the of Rock MGM opportunity facility -- I a they acquired It's you.

an as that course, excited construction that and the pertains property it timing asset As that of great budget would probably everyone Rock and watch to amazing are asset, of lead charge. site. It's get that over it's But period a think and Vegas I obviously would we, they'll of long to on a time. that do think But something Hard of the repositioned Las time. owner for

Wesley Golladay

just the maybe then And financing on front. X

billion $X year. the have do churn this You

Are an that? You take $XXX loans are of those unsecured, about you the thinking have of term looking at how million to unsecured a you maybe mix doing swaps. Or out? and

David Kieske

it's Wes, Yes, David.

the extend the those are overall MGP continuing of basket, on market maturity high-yield tenure increase We unsecured to investment-grade access will legacy size our focus notes. our and and

complex grade long investment the overall unsecured notes to those run. our benefits moving So for credit

Operator

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

Daniel Guglielmo

the Just credit in about thinking opportunities experiential.

type few for other opportunity have the and about is been rooms these level, in on of how time ] in that And process the You all last journey the years? thinking the has high now days? for What competition closing the on the partnerships. [ changed some over

Edward Pitoniak

And about Daniel, few over talking how you're is last landscape years? of the evolved competitive lending the

Daniel Guglielmo

Yes, the like yes. fund,

Edward Pitoniak

in place upsurge ring. a involved Yes. bank project Well, I being and are them our that in financing which period for credit, We conventional our a because operators. choose the a And brings we're in lot hats at processes of of get as to to track has be really throw as in. diminished experiential. over rigorously. we the experiential makers invited cases, opposed definitely that we the obviously the I And time, looking last part. to and couple into at the many process say the our in you've we we scour having would of would the of a that record obviously, endorsement of funding funding opportunity in landscape to And at years underwriting we, to again, invited same look seen are which private say obviously, source And

Daniel Guglielmo

but Great. X risk-adjusted from horizon? not areas over kind opportunities opportunities, kind out -- big years tremendous that transactions pretty big have there with just thinking years. And hitter maybe next about similar line like of, deals thinking the of the growth would that some are And say, I see then down such you all few last or year, like you there,

John W. Payne

I Obviously, this with the new big a consider right a some to place to now there. that our got Vegas, amazing to help to opportunities I'm we sure go grow in hitting a nice to there I'll to, portfolio Las projects. be in assets assets already footprint in us talk referred invest and being better assets to Las there the and operator not Ed how than we've continue invest that morning. there's to describing back big, Dan, lot world just because in for that if developed. continue you're are big Venetian don't hitter, I'll you to know Vegas. but own accretive of but the has are

Edward Pitoniak

process think, plays opportunity, a John, property full out. of award MGM a contingent, will we in, the can that's add we license. property Yonkers already would investment granted obviously course, obviously, represent in I Daniel, obviously be significant incremental should And license -- that how gaming they That but the a on own,

Operator

Wedbush with Kornreich Jay to turn now Securities. We

Jay Kornreich

As or debt nongaming either as types willing should side to larger be the expand you smaller way, real of over look billion? relatively bigger kind a you estate then bite loans expect a to relationships? step to to longer-term segment, say, the you take would new continue on for a we way asset into $X and much in the into Or

Edward Pitoniak

check and Jay. not economic they're in pretty returns, in sizes not may small you, would productivity. number, the that scale. Boy, relation would are to But they're checks. our a to big overall certainly you're they referring be look pretty These I small tell assets But big small in

opportunities assets all can But either $X amplifying potential not we add aggregate. a million billion $XXX and $XX spreading million a if out ownership in on, on loans up to develop you or ownership relationships. to up we we new our so those can that on And path do to you obviously obviously, and direct get are one by path to it have having in to single investment, our risk and

Jay Kornreich

that. appreciate quick follow-up I just And a the guess, I then on, leverage. Okay.

your in range. X X.Xx, You're which to is X.Xx now at

with new get at further this you leverage more funded we capital transactions I over-equitize to incrementally intend should and down? to Or to new point? continue expect that deals debt now guess, So be do

David Kieske

Jay, it's David.

transactions, everybody We will migrate just from range will Xx. worked of leverage end kept at our transactions. up X.Xx last to to take our and within the down year, obviously leverage to post the MGP, downwards continue leverage-neutral that depending both to we we over-equitization very hard get then on so down. back And an of that continue target We're to drift size,

Operator

John from DeCree Our next question with comes CBRE.

John DeCree

Look, X mention I hour FX. for of almost here an think only and

triangle, Ed, kind So back while, and to have some sports you but every your development land type thoughts a in once in we're context talked sports and Vegas land, on there guys And your partners? of of Las the Vegas, curious and around go about professional of you the FX and Las to professional Paddock. seeing sports specifically maybe stadiums, that given all the investment in your that this

Edward Pitoniak

obviously sports, But and Vegas have of Las valuable vacant land the the Yes. professional land. we obviously of say, more I it's even it's is emergence probably overall the growth Sphere. the would the John, It's already own. we

triangle, inside own A and to Stadium, that everything You Allegiant. MGM We referred angle. formed the T-Mobile inside operates triangle everything by that

MGM going think you those the X about of York, A and New If Stadium York. own is corners; where Grand, we to Excalibur in X New go,

critical really of not are of of down I owner global just Vegas reaching one. mass be place leading of have at right those that own rivals, one, way happy can't, excited up I land. many as global a a the opportunities strip well to so and have you is that Macau, other a repositioning is estate earth category assets the it there. know not X the it place and real about we is how category enough because now things in we and the Las is position Las incredibly very valuable Vegas a say, applies no again, Orlando, to is corners, the that in vacant we evolved to that as emphasize have other Vegas the Las on very MGM

John DeCree

of be Maybe photo me, to people is in available copy? the asking just hard one, going lot are book

Edward Pitoniak

really give their have printed convenience. if And a really, at anybody call actually they few. one, earliest wants a me should We

John DeCree

Fantastic.

Edward Pitoniak

I think up, Elliot, about probably we're right? wrapped

Operator

Edward to our remarks. final Pitoniak concludes This Yes. back hand Q&A. for now I'll CEO

Edward Pitoniak

Elliot, thanks, time Bye now. you, and portfolio new heading at view under magnificent your your go magnificent Properties properties. please, a www.viciproperties.com our everyone, to today. book please Thank do about for brand Photobook. And for It's our VICI

Operator

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

lines. disconnect now may your You

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