VICI - Earnings call transcript Q1 2024

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Operator

Good day, everyone, and thank you for standing by. Welcome to the VICI Properties First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today, May 2, 2024. I will now turn the call over to Samantha Gallagher, General Counsel with VICI Properties.

Samantha Gallagher

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

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

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

Edward Pitoniak

good morning, everyone. Samantha, you, and Thank

into say, we ambulances cops magnificent who the One a say XXXX or outside that A be house. held rule School. From work invited Street being the out down on first kind perpetual with wonder curb and/or of equity was, marketplace. shop outside, Ferrell went part which The to an this REITs Will were for monarchs that house us the partygoers ends shall fair and rarified Wall few so in American packed being of in a interesting minds of reached clear, called quarter one a XXX were But the and quarter S&P party. fleeing REITs sounds as of were of within naked this a was Euphoria, of coronated the American of out kind if far party party. Those fun. of not state euphoria. Old to the the could party party to new in eventually that street their like the party the

resources which MOVE lot party Index, seems curbs The started of the marketplace was income recently VIX quarter fell relatively the much about start U.S. can this. high of spiked VICI, XX% time REITs. the to The early and that's what much haven't house with in having with we appreciation a volatility running of same is cops volatility, is in within the which we're showed over. focusing standing deal again. At of all having or since on market through the ambulances to. measures do that up before The we noise, first the just XXXX stakeholders. relatively the a we hard down. Amidst our magnificent on magnificent spend good in keep of flight out be our even dynamics doing yet, the but time to invited the of through not March acting now bit of improving year this benefit settling capital all investment much safety, steady and first inside necessarily late long-term of in XXXX. what back of treasury We steam. a don't but for keep party, working slept at it's VICI, or but capabilities a quarter wondering and And April, equity growing to company did That's index, almost and our QX the complaining parties We and general rowdy

QX our AFFO among of quarter line in and believe first growth a produced what the flow share at continued S&P XXX to was over XXXX to of rates XXXX EBITDA we through in is per revenue quarter X.X% higher REITs. growth The one which we the

that May XXXX number our debt XXXX on quarter imperatives: key words. a this builds interest resort. Margaritaville maturing entertainment number into on of Chelsea and initial late time, a investment an sports two, investment validates a investment first focused feet is market-leading also of an of quarter recreational acquisition other ultimately recreation case, come Hudson complex York yesterday, X with a feature that XXX,XXX The have ready with Piers, X; that we soon on imperative the an space in debt the investment to Kansas City, was our which Homefield in being in opportune platform our This the will acquire a estate River. Imperative in due that sports sector lending expanding to TAM real would our our interest, and one, New refinance XXXX at and magnificent leasehold use strategic in the entry training on primary also of scope in square

and want March capital May volatility way asset. In on the wait of for to gives conditions, imperatives. I'll which Xst didn't seemed turned but assets market existing will fair Las $XXX we out working to these into our given you VICI to property of market to long. we've our scale go. Imperative announced, color what went magnificent the with by a March XXXX out opportunity partners the XX-year but saying to give ready Venetian, for each Vegas X During so and X throughout just Apollo QX We which relied at in The did more million rarity on being our too Yes, was enhancement #X, invest QX up fortunate, develop off, fortune Strip John a the of second opening QX, of remarks David a our and yields. U.S. my on us timing lowest point capitalizing close obvious. this moment, good on to the by on plan

not can money REIT over at the following XXXX can power total this all, which that this a return rates. point IPO. We've dividends, REITs of offer VICI's are not XXXX but the clear value the CAGR time, do most or currently And of a dividend posting in weeks of be payments, yields with point. as REIT ignored The has we in categories investors. REIT interest forgotten. materially X.X% equity somewhat It's bond compounding in the current so tools. powerful marketplace REITs potential period has, that unlike quarter through marketplace of represent compounding Most, dividend at growth first a to living or or excess XX been our been since first inflation for VICI market grow have the be of lot recognize and of to when what haven't will been fun believe the

I As that to or first, a and answering few John ignored VICI shareholder, I your benefit. John? but haven't words look dynamic forgotten David. from compounding questions, forward a and

John W. Payne

sets what core everyone. good morning are to Ed, of of apart. us quality the and the we Relationships Thanks, have we relationships at at VICI and do the

Our invited has ones positioned future the to we existing what Ed not hard strengthen called so party. team growth ones are and develop whether for to opportunities, or we works are new that best

trust and groundwork beneficial beneficial of partners finding good Our with solutions in future on both the through multiplies our and we focus bad growth relationship environments. believe impact each for market mutually the lays

center of team of best Venetian the at outperformed and the The backdrop. Since The uncertainty with has all at of Venetian. has relationship One challenging entertainment expectations acquire time, continued solidify a period the Apollo Las The pandemic, as is the The to of market that another Vegas examples as to itself world. originated the this Venetian COVID opportunity team during the our with

emerged and their from of of perspective. in of to XX from Fund. celebrate its given XX% enjoy GGR that the Sphere, the This that, Growth active from the the in Apollo of our we're with up announced rent million and with repeat The Apollo gaming opportunity following is GGR will $XXX Vegas. XXXX with to are pandemic, the straight quarters, to continued coming VICI's asset. Gaming accrue Apollo we in Partner low Vegas potential dynamic efforts anniversary since the benefit I'm remains our Las of thrilled to Saturday, once and the maximize has growth up investment VICI's to overall expand in again thrilled sector this the schedule. with increased enhance to healthy growth there invest amazing quarter, baseline, has particularly property. The several iconic quarter relationship Property healthy revenue been Super already impressive first and acquired further to Super to through continues top XXXX. Since capital property gaming an experience core our events increasingly projects improve over credit this together set with close value of economic quarters Vegas impact of broadly Bowl the and XX% this to at We to remains seek at Venetian straight digits Venetian market fund The is Venetian been like there that on our the the to FX convention of a an The Strip XXXX, Las single with XX partners, neighboring Bowl and over and XXth the tenant partner Las has going guest

the city. visitation streams Las up diversity amazing consumers revenue were Vegas enjoying quarter, numbers X.X% continued and the demonstrating in vast this first the of array the of Additionally,

a discretionary weather middle regional post the cities we only steady has surpassed and consumers recent this recognize idiosyncratic the city unique winter, evaluated the gaming by North we remain on we see headwinds driven floor. high-end numbers. In markets, Toronto the spend while fundamentals In American casino that pandemic, Vegas sound, consumer Las and visitation the believe and University from of study pre-pandemic is that fact, based on pre

pipeline, volatility when invest market, in estate gaming rate impacted our arise. position properties embedded the growth our transactions interest Outside in gaming around strong dialogue opportunities to a focus Although existing sector. we or of volume and gaming in us in transaction are has active in relationships real put our opportunities the

right and Harrah's the call the right of XXXX gaming of end monitor we continue the and we a which to the have and unique to continue through gain at assets. the agencies This appropriate acquire to with Park option. the call Indiana execute Hoosier buildings should elect of to we estate expires We to performance regulatory work process necessary for this Indianapolis, Horseshoe real these approvals

VICI incremental is of gaming expand investments. space for we've our also scope opportunities outside and to our TAM well continued the positioned as

as committed experiential January XXX to sports of of growth ensuring meets the and sports up within investment will training low its the potential investment youth that threat, of of Homefield's cyclicality, record Homefield development construction this sports York our broader hosted VICI interest million the sports into in affiliates XXXX converted sector initial loan initiated the are said, Chelsea resort loan and adds open estate with demand youth in and can embedded end each completed dynamics. In is with expected low acquired facility year, the our track fund the all We favorable you basketball leasehold for Margaritaville Kansas youth center to that to City the of last truly weekend criteria and ownership. loan in the Piers with Ed of a is we in sector And to this a few our City. improving to expanded XXXX. New be partner and baseball secular complex. The agreement announcement and facilities area of in which teams Homefield investment, ago, The we tournament $XXX real partnership the supply amazing. The I resort a are be Margaritaville Having use. weeks visited tell property the at the youth mortgage to XXXX,

the Ed quarter the relationships the broadly end first the excluded transactions from, party at took put in of and year X.X% While as beginning place effects that last it, the this year in of the of and AFFO XXXX, REITs contributed our per to of share. announced growth were

our of our drive our growth. the foundation As I stated earlier, are business at relationships and

us gives look continue new portfolio. believe opportunities. that so we We to quality partners many operators forward underwriting to with relationships VICI in Our have roster whom standard for confidence its prudent best-in-class developing with our experiential estate of growth existing grow we real can

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

David Kieske

coupon It's X.X% the yield John. everyone $X.XX million forward balance that rate our great came XX-year $XXX XXx a in notes issued X, Thanks, million of coupon at the due of of impact -- we XX-year duration with to we of our we of Starting notes of -- we our blended we were XXXX that of Ed the we that at with X.XXX%, to and refinanced, have the and very and extend swaps. offering at greatly today, really mentioned, X.XX% all-in $XXX time. a When achieve say, interest the coupon would profile. March able first of refinancing first at peak, to maturity same speak notes feel the a quarter, billion yesterday. On we of X.XXX% May executed a about our before for coupon ultimately are sheet, your launched compared appreciate bond its oversubscribed. the time, We and come successfully successfully good as I'll

under we sold ATM in $XXX gross raising approximately of forwards, comprised and in of in we the also $X.X our and proceeds facility. X.X short-term billion total under shares, During our $XXX as of million billion cash our $X.X liquidity million $XXX million of proceeds liquidity availability our via Currently, outstanding and XX, available under forward. million revolving credit estimated the cash, have equivalents quarter, investments March bolstered

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

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

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

X.Xx, annualized leverage forward to equity, target unsettled to debt is adjusted within excluding EBITDA, net Our X range of quarter approximately first of impact the our X.Xx.

hedge X.X% We share X.XX%, for our have interest an compared for weighted on average the rate portfolio, of the a to AFFO statement, increase and account income years XX, $X.XX quarter to per the X.X a XXXX. was of quarter, weighted into $X.XX maturity. Touching ended March taking average the

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

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

guidance. to Turning

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

common be between XXXX QX As earnings ending and our AFFO to diluted the call, we originally XX, billion for December on year per billion, is expected or and $X.XX $X.XXX between share. highlighted $X.XX $X.XX

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

Operator

Caitlin comes Burrows from question first The Sachs. Goldman at Instructions] [Operator

Caitlin Burrows

of complete VICI your partners guess identify for are ways growing when is to the I one expanding. deals and and

what So we in your can to opportunity are we I they're be guess but you partners and see now? how give else doing some to position Venetian, expanding The color should extent the can right on with consider? the what

Edward Pitoniak

start? John, want do to you

John W. Payne

have I believe, of our there. We operators Vegas announced start great been think and grown in Venetian in today, a Las portfolio where center will The because and start, that's I our we've I'll company, we obviously and you bit real little that first best the it opening world fastest-growing I heard or hospitality consumers. the attract a the I'm this in city my maybe of is and continues wide to in remarks variety as but a in biased,

have opportunities So in assets all to are that MGM, the provides they a at have they is assets brought Venetian. that or but footage have Vegas amazing we in We've to Rock that Mirage back continue unused their reinvent in that could opportunities that Hard ways these studying never new the large magnitude owns are to life assets. The partner to continue for that additional assets there our magnitude parts with are Caesars, whether beauty of in be remodel, partners, square to announced time of that amenities of the to Las and this concepts. these only that's add the of and with these business been got not either life

capital some opportunities talk and to of be there'll give opportunities operators think can't how are out to I announced Vegas, Las smaller there, and grow. operators. our best announced, to our about that regional have own talked we all their any Las our markets development Century, but I we've we the assets haven't our continue some of our that to some and So some assets. Outside We businesses. about we continue larger And some with partners potentially could of with there you their Vegas the grow use details previously

start anything So that want if that Ed, you with add answer. to I'll to

Edward Pitoniak

obviously, in that MGM the asset which of, you, real outcome from be opportunity one licensing depending asset. that process, us hear gain to Yonkers, to good Caitlin, capital of and the to licenses, own in York obviously gaming the estate invest John, full on the we recreation that would of New add, for an only the of were would the I substantial

Caitlin Burrows

it. there, And the which about the I scope it of you partnership. think the us we I of was could what loan maybe exposure don't then construction your growth could Homefield for status but is that Got guys potential if relationship, wondering talking like? as just think huge VICI, were be remind you about itself a current and

Edward Pitoniak

David?

David Kieske

an started we Caitlin, announcement. that funding upon Yes,

to into going that And really so that's Margaritaville builds, Hotel, the XX-odd-month me. the development Hotel it's excuse but an to are Margaritaville the build proceeds use

But team so ago running a that the was everything and and there youth the opportunities and what immediate sports part may benefits the building week Kansas the they mentioned, the real creating successfully is and call stabilized. a of up our City. sports saw ultimately they're do realizing are out grow, are have what to in in there's operator, that to or John future to and are future no have option they best-in-class facilities while intentions once of in the they expand are As we estate

Operator

question from comes The from Anthony JPMorgan. next Paolone

Anthony Paolone

you you're got also and a of talked spread? more CapEx a of how capital relationship, term return for requirements new a that. as assets. flip investment and it's I I guess you Then you guess the importance a about cost some I strong a is, and sort to opposed bit, little your bit of can of the flat and When any my it's and tremendous obviously thinking question asset talk first at is, about Venetian, look about

about how So with cost the right of return capital. thinking levels your you're putting own maybe dimensions in around just some of help us

Edward Pitoniak

for into the to accretive we're can substantial spread, acquisitions yield we good basis, obviously The targeted investments we vast yields, accretive feel, of blended of lending our for to Tony, of as spreads, we not asset time, or point substantial more the a When investments. Yes. point spread have rarefied note, you. net-net on creating whether blended us return. still more that capital is match an investment as to The over an property Venetian a we and an rate and like value a maintain But with our are if shareholders. give put that, on solving opportunity lot investments, not your Venetian from starting or The hear

Anthony Paolone

Or now. then just wondering the what be on mean And pretty immediate? regulatory mentioned one, that Does second meant. the you close right the if Okay. through to John, just that what some Is assets do would that my you that exercise option, read process Centaur going there?

John W. Payne

don't think It's funny. Tony, necessary. I that's

it's on same the assets. the with agencies. all, should sure But to of the But regulations. through make regulatory this agencies. them through Centaur appropriate thing. we Indianapolis. execute Park funny no we about to I the call Harrah's elect Hoosier than the with First appropriate we're It same question Horseshoe no, that Indiana going process And Tony, and we mean rules going we all really the still position timing, we're is the will and do option, follow the other your time and spending that We those

Operator

Our question next from is Truist. from Barry Jonas

Barry Jonas

how I then curious, growth investments about should Venetian, as deep the to the pipeline about some And at think how partner for those point? investments? improvements like for think property we was I potential ROI leaseback sale converting we additional is those guess,

Edward Pitoniak

Yes.

we largest largest I of are right as Barry, owner hotel entertainment a real of the room David, valuable America. owner point, determine, in largest feet? to of estate So remember America, what we of XXX sector the We're in one it's kinds can about that are convention think we private theaters, the owners now, spaces. million space square other from What restaurants, starting of

David Kieske

that. right. Just That's under

Edward Pitoniak

Yes.

opportunity So think number Barry, that pretty compelling square itself. X% reinvestment million as XXX property, having X% potential when is unto and opportunities you existing of about feet of a

And before. The the a potentially T-Mobile the stadium definitely at MGM. it and vitality. end believe The The add with end Strip, the Strip. that, is. end mentioned, taken obviously an assets, that Barry, on a partnership excited of it could lot We're represents could added obviously vitality As We're a vitality John in know, a of We Strip of that Allegiant own added lot compelling that the very about is The particularly X of south didn't as A's has opportunities opportunity. be in recent Strip The you have at years to that I

at And excited partners, who be assets about MGM opportunities we, reported what quarter MGM, very densification obviously last MGM, over could the you York, Bay and Mandalay York so look Excalibur, coming New New good with a the like are our Luxor, when Grand, years. night, Park

John W. Payne

Barry, do can I that. are with to on more the just add XXX% one the Not these thing they only are it's -- agree to assets, run operators I business. to generate that that assets, ways attract Ed more and also constantly looking at consumers

So doesn't looking best but the constantly to operators, particularly you a to at ways can business. it Vegas, on the space, the the in if change the have are gaming build, hands, great their in and hospitality Las asset, operator wants to want world their in reinvent they sit are and

for so having a Property things the not want to innovate able continue formula to is assets be the with only Growth those And to to X and combined, and grow operators Fund. are us change incredible, grow but that

Edward Pitoniak

Barry, we that, wants fact, Samantha quite before that made an second assumption question your question, in isn't And in to you clarify right. move to your

Samantha Gallagher

Yes. Thanks, Barry.

asked if rent. us And that to we own we to improvement have because the via leaseback. and don't that need sale do will actually to So reverts capital that the opportunity via convert you we

Growth Property need leaseback. we That's of Fund. that via then, not the So sale convert one it's of something in the benefits we future, the think to

Barry Jonas

a to and so instances at Does predecessor look additional sure where think are you guess, I -- that rent. increased MGP, like the if they do have there exist, I improvement understand? you I drove acquired But I'm that just opportunity chance, an

Edward Pitoniak

We're what incremental doing, incremental exactly. we get for in and incremental Yes. I return we're essence yes, mean it's capital in investing rent. capital,

Barry Jonas

as And quickly you're new Okay, spaces seeing as if then parties, of at at called? as kind those looking a any just same competitive deals follow-up, it's curious the the if or Understood. is okay. you're environment

John W. Payne

It Barry. the continues to same, remain -- it's

Operator

question next John comes from DeCree from Our CBRE.

John DeCree

if Vegas hospitality start and to have your mentioned Mirage about we number there. a And in remarks, space. market And Las if one Venetian of following agree. think Las guys Curious a considering think what to -- possibly us to yet. market I you could remind a you've Rock net at Obviously, is, of is great rebrand Vegas. investment. your certainly pretty John, prepared anything the partners the you context how mentioned committed you've you Maybe officially exposure considering in big The activating on Hard the

about exposure kind think that? about comfortable potential in like Vegas, you which you and to opportunities, all much medium have the to how when that Do So you with kind of do are go to think kind you you to of term? you'd Las market the capital deploy to ceiling of a how your over near

John W. Payne

you to want me that? take do Ed,

Edward Pitoniak

Yes. Yes, he John. was asking you,

John W. Payne

Las bit talk let's all of so the John, Yes. areas different about a Vegas. little

today, So have an assets of The we incredible amount on in -- Strip.

investments for regional yet, and Vegas Las very in in excited we market do market of any We potential see growth Vegas. where the downtown not have XX that we about. assets on Las the of Strip have we're Where Las the Vegas is

could we partners or grow And Las don't those Strip, yet other could estate in the Vegas the great continue you of it VICI could in areas. see segments simply that real business it also but be to So on along and these The are the be way. have market,

yet, and -- that help I them the made then running with So -- you Mirage work we can grow, team think John. to about asked we who's Hard Rock not speak the have continue announcement ways and on the on any our we but that also with Mirage

John DeCree

all The preference part volatility of take that see relative you assuming be wants follow-up or and logical Venetian. think Maybe but think developments. for of new we've still lot yet it. of with question, it. the capital answer more participants source whoever a partners a development M&A, the first your financing your of a probably We deployed development high-level project a for cost to that existing is we've as kind pretty It's we CapEx of M&A capital Got an a to competitive? casino of why right for seen would observation properties to the do others' could option industry, Interest kind now. seen So still rate kind in industry or casino is

So why guys view than just might be curious have rates. just maybe interest if you other that a

Edward Pitoniak

And trading John about clear, themselves? narrowly DeCree, you about operators Are among just so speaking of we're the here's M&A being the more assets? gaming

John DeCree

as it's strategic Yes. buyers selling, amongst of maybe and in source. more your would which financing pull I probably partners, the guess buying you a

if So create the well. your than rather that we developing partners, properties of we're as opportunities the and Presumably, for more amongst more you a would seems industry like in acquiring. in cycle. part different casino investing It saw M&A

Edward Pitoniak

Yes, you're the why you probably could right to to operators believe Yes. And right. have you'd now. M&A speculate, there -- I and have honestly, more that's they isn't as ask Obviously, them so cash so, measure now, bafflingly trading the valuation, so you to obviously, doing. of flow I'm free cheaply including however all the bafflingly, right want many are yield. operators,

time could people to a I'm not this going at And it be sell, say, point. not when so

really operators strong to also fact so the coming could ask of you COVID. been performance out again, them. of economic have But the that And it be has the

be want I one performance to normalize wears okay, continue, of guy effect sustain at believe these open to economic we the one could peak only out could a Are our earnings? who that be is to are what them? buys COVID earnings away. don't think We question partners power the obviously turned going reasonably to I but operating okay, going be peak the to ask, as see

Operator

from Katz David from comes question Jefferies. next Our

David Katz

cetera, I wanted you Bowlero of just those some take long-term pursuits. initiatives talk the in asset with the TAM. just Canyon such view et core in your But terms as Ranch, durability, you to and non-gaming exciting they're of that or Obviously, can -- how and initial about Vegas? how compares Las the your the classes And on of durability get

Edward Pitoniak

or it's criteria register be of be open that been operator experience And low very call to a it lower-than-average It popular economic a to one revenue the itself the of to with dynamism you through would don't about. And the they're And a all for most economic good to question. public the come astute a name that, I sport businesses asset which now cycle want knows not we guess parking balance, we're secular, just and to hasn't no and one It's you, the every idea have the long. right that which balance they're healthy a an I as pickleball parks, racketball, it's No, know into the to want criteria a would category right? category courts essential we're a cycles? that we lot a itself, And of will and anymore. They're And them, be different because it certain that has to much durability lots, if is of incredibly it the is an amount tends around demographic economic supply/demand 'XXs. cyclicality. I and energetic I to make an of sport question key around, was as -- cash Is have it. And threat intensity. racketball really David. center add to proven am for coupled end-user it who our now. looking ourselves you nervous we've say, among around on don't about through would to how operators. And pickleball, is question dynamism. in supply/demand operators that enough durability very And And of heard 'XXs right that key us give remember economically anywhere, continually that old example an see an an the investigate fun talk game. about complexity, the I Yes. categories. would to that question, that in David. I the past about been X why class you've like hard was Has around popular experiential an no sport I very you put I asking courts of very called it's new we those say not decades?

be have You skilled fun, terribly to didn't gone. kind but have to of it highly play it's and

around very the of there evidence that succeeded all has durability. and And seriously than durability very, question it through take has cycles. it of better a is no So we been while really durability,

Operator

Our from Citi. Smedes next question from Rose comes

Bennett Rose

Or starting of guess, do your some about you are operators said the that I of market, and in And see said opening any of And the John, kind the I with the I John by lower-end your that, with that you case? being concerns always think to the middle overall? is you revenues weakness high in up consumer? follow is, something remarks my a sort think to -- question are you have as the regional and end about driven wanted market. portfolio

John W. Payne

Probably on bit. like frequency but we're side my the you. markets, a here business our coming high-end about good said, regional in the based in are information operators, go Yes, to give consumers question the In talk or the better operating from our middle the little and comments, the still Smedes, a their tenants. of it a for I'll you to

you're think believe come we do lower will segments asking or those I that back.

more Smedes, more on spend pulling consumers come elected in operator and more I again, again, As time the know collected incentives the So that world of that operator. they like those does our rent really well, the Is every say, in way? operator they've always their to a to to I think affect you cash. during dollars even an and ways depends VICI? closed casino back not find the efficient you're on conversation. But VICI pandemic, asking XXX% to and because how marketing in this with

our to even see a going has if a collected not or collect bit historically VICI our of So is the of segments business negative, little rent. downturn, rent

picture, upturns out. do, big look sense, because We these don't in I'm our it monitor on things. core So change longer-term, of recovering I a those operator, look stay downturns, what at but we Smedes? have huge years a make that in Does of much top the business business. more we the

Bennett Rose

it of sense just Yes. a in There's a No, just pull starting -- other maybe some more bit. little there from And on like side. that sounds weakness just to to we're hearing I it's be seems are maybe calls, absolutely. back -- a strategic consumers the operator goal just different segments. leisure

just could probably curious they what do operating you you looking their your I or and rights talk wanted would that, there's insight don't role it about of guys Resorts on process Springfield. be that well, perspective, know move about the MGM I'm I VICI's press had been were -- to from if to how you if comment or in thinking forward? kind sort can't you at is that So you of -- that not not, but guess, just guys are sell I'm to whether ask reports MGM there. I if And as

Edward Pitoniak

Or want want that? take that? you do do you Samantha to John, take to

John W. Payne

Samantha.

Samantha Gallagher

Yes.

obviously asset on As you know, to asset. operating comment the that with we enter would obviously, we lease a operators' to and sale extent were of of wouldn't any our an into business, any retain the they transactions. But transferring sell

Edward Pitoniak

that one, in few with I'll add seen -- just And few a assets, Southern being our that you've happen instances a another. Smedes, seen being and Strike Indiana yes, in you've Gold that

to new. So have definitely existing through with we out work figured those processes how tenants and

Operator

Our question Guglielmo One. next Daniel is Capital from from

Daniel Guglielmo

but and earnings You the this have environment? understand group more some there been This lease that perspective. Canadian the And portfolio from areas level, in health season, partners certain consumers risk are tenants, and you're trying around a you small. and diverse about all questions fortified thinking of the the well have both to there all just are better large a of of at U.S. acknowledging

Edward Pitoniak

seeing -- to or stress degree consumers for degree of income cognitive might behaviors the I a it least their think we benefits But is the elements question moment came now out of liquidity goes of stimulus consumers of of say, segment to for right their when disparity which a spending the do and is one and you're or what plans the higher-end less think kind lower-end and/or geographies. seeing wouldn't at lower-income of X year so I power. of ago this than and seeing dissonance consumers even COVID. of consumer particular much you more And many it's Daniel, about these I are between that have and were Smedes the ago, one do the some back which you asked particular assets so

we our measures So we Powell economy Jerome to have We very can at and obviously monitoring now. recognition the monitor to a But appearing made in tensions the for of -- the as it remarks our scary we overall was on as obviously Fed that a macro it the And markets. right are of of monitor of robust, kind even be opposed Jerome, some degree to also partners. the closely. monitor yesterday which economy despite the Jerome credit the lot that impact it nice I he when it there part there's think our

Daniel Guglielmo

you tailwinds And response, headwinds the if just regular quick Great. talk them? with you're the or us from any that sense. Yes. then some idea around detailed that development recent been all you and loans hearing makes give about real I those a I'm and appreciate the of securities basis. financing in Can have just bucket. there teams sure on an

David Kieske

asset thorough borrowers, to, we development do operators have investments Yes, talk we closely. any a both Dan, management John seeing we and to talk headwinds you. not asset loan administration we very also very tenants where and And our as of No, hear have it's our from monitor mentioned, David. completion or the we to Good loan and we and in talk loan terms performance investments. our to these are they process

Operator

from question is from Street. The Michael Herring next Green

Michael Herring

at that with that negotiations those sides? the that partners it it how I kind guys walk might just and looks looking look The similar you number the a and for gets guys you perspective, how Venetian least wondering, The Vegas. win-win like to looks or was yield Apollo's the on other Just both through is given that deal, how Strip from favorable our on of maybe And yield final have? investments obviously could then favorable came finance it transpired at future to cost you of that of invest on sense in VICI Strip in

Edward Pitoniak

good Michael, John? Yes, Sure. question.

John W. Payne

this is Michael, it's for we to win-win agree a And this nice talk morning. you both to companies. that

very, or with didn't we be during business. Apollo where successful very proud back so been You the real they operation initially they Growth estate these And fast pandemic. bought they knew and bought bought us were the asked we we They started the to did were did when going grow. that talked real of we're initially the grow it started. of -- when the estate actually grow in we Fund we the know Venetian, discussions as them. going opportunities could to there and and We they about when to But the as there, hadn't for Property lease

comes think So there the do when like opportunities of to it company, we're side -- deals started, for great The not for as assets the anything, this long-term are started we we that's create one us, not with both we for since only the we to deal tried particularly where to grow, discussion to deals like front us beneficial of about If relationship. and then great pricing, but doing a often the Venetian. And wins, it's kind in sides.

when is this So And may can look get is relationships, about it I table someone have about -- eyes opened up my and to remarks a I happens. today we it's that really add feel And win-win, about just excited help about, you they new good that across feel their as about rolled from you the been relationships. that transaction partner, a amenities but good great said, you and these have. them to and good we're upgrade price they a and amenities the the

Michael Herring

of that the Apollo just they you not initial it. that need want entire be disbursements on, eventually, $XXX the take whether they laid million to and project the can that the or million. included looking $XXX to tallied Obviously, use million? Or out eventually that option? will it's in the is Is million is And Venetian up deal. [ the $XXX just scope sticking the with ] Got of initial terms to $XXX

David Kieske

it's Michael, David.

Saturday, the of enhancement they have this laid at One where million of out is of out where yesterday that excess press in value release a XXth put Venetian of look should the ahead asset you actually, the well $XXX extensive they things plans actually. they, anniversary

they've use the So the initial it's little already this of as year. in that then things they how together, a what just $XXX done. pace bit a of And on million, million bit their got where of capital lot things of falls work that in that comes through all a side that $XXX that hopper potentially and just and They've forward. timing going drawing incremental their they as

Edward Pitoniak

I talks of just end release total the investment believe you'll billion of to that, which of add about into press to may Venetian, total The $X.X see And Michael, a about we asset But I put that. more category stress of capital about being tenants point that REIT half I than want the up to of REIT's know into don't the where another ours.

portfolio, you dollars tell investment our That our both tenant tenants exact obviously, that can we are and not of tenants each necessarily dollars, billions If into REIT know activities, portfolio, that our our that their assets of given transparency obviously se, around into given of on making per look one no in assets But across the putting regional other our we what our greater get any year, based not models portfolio our Vegas there. that the of properties. is benefit know enjoys from our put if we reinvestment you, into our valuable. hundreds more Las assets, of millions the doesn't captured capital

Operator

McGinniss comes question from Scotiabank. from next The Greg

Greg McGinniss

of case more of time as in opposed again, to, Venetian situations have The there south actual terms an just of Fund, Partner more Or the general, agreements Property down deal in billion, be that be given there had ahead the is this does mean potentially to -- up potential exhaust one? Is potential to side for the there $XXX agreement? And line? The there So the or Venetian to where might something? originally $X investment remains and Strip another million for initial the does MGM it like could you're here that likely concrete for that be talking Growth like in the be announced about of

Edward Pitoniak

Yes. David or John?

David Kieske

XXXX, they so what want and of got or than announcement original Greg, modified that I what we in more team as of our in $XXX potentially, maybe here. realize worked chime can the that billion undertake. to they speak, the $X in. can under start, comes million out agreement The back there asset through could John and to and the Yes, hood, do wanted be to

laid the there's as invest out or to our the that the to The on to Ed billion is assets. has billion So agreement out, just put plan tweaks Venetian some yesterday into their announcement $X.X original And side. up $X.X

of could be question, our today. And there documented your It second out at The uniqueness incremental the there capital. Apollo we was is our what could put investment of incremental because million we've Rob be REITs into assets to in dollars part So and this any partners the that versus announced across great portfolio. team $XXX there. incremental and the other of and with But Patrick and Venetian

John W. Payne

this into some opportunities. going that XX that grow. of are "Hey, one a put $XXX minutes can't Yes, to million Greg, to we're many There pointed say, We're pull aren't talking to to mean Ed unique are I there few out REITs as we going think you should into aren't REITs my like to REITs $XXX want many an our even whole asset." that there put say have these lever portfolio. just that hear And assets. I I million ago,

assets, that been grow, earlier, talking one we lever with this The So and we can today for life years but we buy the were to this VICI to we can partners and uniqueness have of help is about we've that go -- our that that's We that to also has we the have other M&A. Venetian. talking like help opportunity coming

Greg McGinniss

there no the And guide? to level is no full have on additional year quick. loans in the QX? it drawdown Or Okay. David, just without at real guidance immaterial structure on an draw on maintained final just Was impact

David Kieske

Greg? sorry, guidance the first -- still about the really we feel schedules, good around No part our draw your go sorry, -- mean ahead. of -- I

Greg McGinniss

Yes.

future So draw was exactly loans what included guidance. without not I schedules, if anything. that's sure And for I'm not that drawn, understand in

Assumption would be that there was.

David Kieske

Yes, if our feel guidance where there sit were here any, really we so good range immaterial about we it's today.

Operator

Kamdem from Stanley. is question Our Morgan from next Ronald

Ronald Kamdem

quick X Just ones.

recent spate first, just of Just higher sort the of and seen this qualitative activity, letter just some rates with sort starting you've about comments looking for annual as of impact the of just the on comments front, movements that's so forth, are taking if and where the doing longer the on falling decisions qualitative or anything's to rate and pipeline, what out? on so

Edward Pitoniak

Yes, -- again, Venetian property able our non-gaming Homefield, partner Ranch example, difficult, of chilling I or when trading otherwise do toolbox And where having that's difficult a activity. growth why definitely in periods effect generate it's levers can things Canyon And across otherwise growth the trading all like tools do difficult to relationships. Piers, having when, include during and really a an obviously we timely with classes. having is on be mean asset would asset of partners our tool really be question, value it's existing the toolbox assets fairly to it in like too, fund, to Chelsea expansion pull and trading our The of book, then being Those conventional and activity through our Ron. being through through would most we Cabot the things credit frankly. again,

Ronald Kamdem

question, the second non-gaming color of pipeline, there any then of just Just the Great. the side, on of staying just more activity be helpful. gaming all side, And is would above? sort on sort there the

John W. Payne

spend continue to We time...

Edward Pitoniak

John?

John W. Payne

our indoor get I same gaming grow. you've we continue time, non-gaming of Yes, with a assets, our we to let's from our make water different rent But my in at the side, as of we investment. sectors to spend partners parks, time wellness, us spend youth and lot time others and said opening that's pilgrimage XX% remember, remarks, on continue current whether in to an sports, the golf, heard

gaming. our I also that a it we forgotten shouldn't non So we're lot spending but know of for fair amount us, gaming, about get asked in a time be

spending So the answer in both. is both, time

Operator

Okay.

further no have on We questions call. the

hand floor the for final Ed I'll closing back remarks. the So to

Edward Pitoniak

All right. Thanks, everybody.

this sellers believe in today's again, note, better call today $XXX myself. And continues VICI that out partner, in our want with else we much just the see you time noisy yesterday you that irreplaceable reemphasize just investment And at this Venetian I'm actually going team it the expresses afternoon could to and have parenthesis, somebody's creating we close of in it reiterating with net to money, sub-X triple made we're million Apollo. rates X.XX% there note your read to kind than I are their quarter. Red by because, is could. And how want amount out announcement I how says cap the good on your to, to close marketplace, ever down it cap we'll and note again things done. poorly-located Again, better as frankly, to rate I still rates, view market in attractive, you Venetian at rate. VICI times elsewhere author time from value as thank we VICI's put So the for that lease can the our the acquisition capitalizing lease. net to In for and double get real we that especially is next thanks best Bigger in nowhere in there's team cap date, may to spread a on today, Venetian picture, just considering confusing for estate of looking hand. where be in spreads we Then up tight not its view delusional a parenthesis. Despite as of higher work this said interest Lobsters. The are into parenthesis, on relationships winning as the The a

Operator

all conference joining. much This concludes Thank today's for call. very you

VICI Properties (VICI) 2 May 242024 Q1 Earnings call transcript