VICI Properties (VICI) 1 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Samantha Gallagher	executive
Edward Pitoniak	executive
John W. Payne	executive
David Kieske	executive
Caitlin Burrows	analyst
Barry Jonas	analyst
Wesley Golladay	analyst
John DeCree	analyst
Nicholas Joseph	analyst
Ravi Vaidya	analyst
David Katz	analyst
Michael Herring	analyst
James Kammert	analyst
John Kilichowski	analyst
R.J. Milligan	analyst
Daniel Guglielmo	analyst
Gabriel Wasserman	executive
Chad Beynon	analyst

Call transcript

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties' Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded today. August 1, 2024. over Gallagher, you VICI Counsel hand Properties. Instructions] I to General Samantha with [Operator ahead. please Samantha, go

Samantha Gallagher

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

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

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

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

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

Edward Pitoniak

Good Thank you, everyone. Samantha. morning,

net thoughts sharing of we've out As but least, remarks the through July, not of my we're done, VICI's began to you at figured fresh, remarks marketplace. what anything were underweight and believe at back depth fund financial level great real and great party print a the big have come lot most managers equal CPI and crisis. Then generally fund lease can -- may that, the may call. earnings always the that a of early have in been when these don't a welcome in invited from my weeks I we spoke the putting try REITs share investing REIT not repetitive showed genuinely succeed by I Hart I learning opening REITs survey, only for Michael that last want I very manager remarks, repetitive. When thoughts specifically, I but given of that had ago, the call to a was earnings that recent become what estate enjoyed came to endure. together hadn't of couple since not we together opening to. In and observing Bank not since begun REITs being until changed for high, these putting now, America's to quarter's tech the I risk

trends. We for generally REIT we're for a in asking all REIT the like management about remember of questions, living guide secular through, are on while an is ourselves nature. to strive There or nearly are David, lease that is me whether performance, spent net to recently team REIT back grown of research is XXX, cycles lagging for REIT specific driven by the REITs us sector and and the going positive and that published specifically, another strongly fun, in by than are can negative let fun, issues of a XX. Capitalizing factors, cycles to through to Board. In control much. secular indexed believe At always sector we consumer level McKinsey cyclical or goals start REITs REITs on always negative and the trends. start positive it deviating share stock secular category secular a strategies somehow example now. We very sectors for things teams secular to not you be REITs the tempting income of long-term secular trends your with marketplace factors REIT REIT index real estate less showing not trends, ones cycle. share Data sector that hard the of Boards the the to by Before cycles Positive while much. has obvious with end, negative we've period what on from in an secular positive experiential experiences are deviate. begin almost right been not consumer VICI, XXXX, hopes before field now. beyond have shrunk that that evidenced so estate by John a has cycles hear overcome and for it's the is that centers that a discretionary driven with Office can as addressing of discretionary management principles deviation cyclical is obvious trends a key so But by from real we words income say and few spent

quality, quality in principle words, have and Here's to stay factors. meet markets to we in economics. that in in well cycles. investing We to the fundamental strategic other demographics sound X that experiential buildings ourselves true dedicate located Location strive all these fundamental

has our distinct and every designed that economic given investment we Finally, experiential opportunity a per investment Is serve quality dynamism meaning to investment evaluate, categorical diversity we sheet. ask, and Is accretive meaning have built growth's not give the to economic it not our only that investment in and credit Operator every quality? quality? is growth given be and to economic accretive that quality, balance operator accretion, intrinsic doesn't of experiential diversity grow by a and, if to not With seek high continuously course, we high value energy, quality needs credit asset is But have quality, and accretive businesses and of tenant investment accretion profile. With in for potentially Asset ingenuity a the the AFFO quality? expertise, ratings? We to as opportunity given seek share. and addition sheet to and measured that balance potentially, sheet we balance investment we, and accretive will tenant improve make, and can a geographic of portfolio and measure. strong and an an accretion durability. sake, occupied AFFO

lease dollars do, rent, tell tell they net millions hundreds spend generate of what our of amount of but some as not, to of you dollars never and you y new x that rate will z peers we invested money. we percentage We into cap of

we John. I'll that will and our invest own. turn that in you opportunities news over the so We what to with John? can meet broader that, The to accretion identifying team, John is developing good what know tell criteria. And Payne, our very you led development is you call by business

John W. Payne

will up spoke their investment Thanks, Ed, experiential the occupants, highly Wolf we acted committed criteria. live namely to are to a the million on a up million These buildings those time, quarter, the Resorts. value investments blended just that to and Ed generate collection everyone. differentiated to quality and the commitments at the good when, yield Venetian $XXX criteria made second indispensable of have in firmly to X.X%. of of in We same Great investments morning our of investment that $XXX And capital the

VICI of gaming will value tenant produce diversity enable midpoint time, AFFO and roster. At while believe the that that conviction continue to to are and key team AFFO with identifying against bit the we in capital Xx can and our XXXX guiding decided collects nearly quality believe reason we identify have our acquire of growth AFFO our credit city is invest One REIT nongaming guided generate Hoosier that that gaming per and portfolio to we is by XX% to at opportunities, continues rent this allocating will create is our be to actively portfolio us a making the our dynamic ] other is the actively and quality decision in growth rate that one assets we factors Our experiential last call we X% conviction approach an confidence that success process and strength investment our we greater are future pursuing. of we're Horseshoe, the and our overall VICI's Harrah's into newly higher because We Indianapolis. to is category. that that Vegas, [indiscernible] can that to Park week factor own. [indiscernible], furthering Las of that where growth this from And accretion, opportunity portfolio the we not This XXXX multiple XXXX to and right accrue and structured exercising [indiscernible], tenant opportunities pursuing lease accretive net in by our have we the of [ are peer.

tenants executives Airlines gets May, October insatiable blueprint own. was by flight continue consistency guidance. discuss record-breaking wanting year-over-year. arriving stating one Vegas." Our of Trailing in REIT almost investment of our adding XX% our TAM financial city fund to and June. visitation over Reid conviction a was it with month the come our call the quote, capital and are of David? now in add extend up as record was resort evidenced both a properties continues experiential [indiscernible] ever. International who of Vegas appetite portfolio. Casino of months opportunities the to and jumped reinvestment June, And the of filled. [indiscernible] to our a David, have international And our to Las continue like and our and and cited Harry $XXX gaming drive X.X see first own. in month people month casino best magnitude in reported to size third million turn contemplating feels from set flows Southwest cash centers. I the that to I've best had to work May, years, Vegas section, benefit It's and assets million unique the will departing from continue best the we of creativity growth gaming will ever. In opportunity, second opportunity officials tenants Vegas, second Las and Airport the increased success ever. a to into I the internationally, largest horizon airport to extensive variety for allows this XXXX any "It exchange the rent. at passengers to the investment this also opportunities the XXXX. of momentum Over to Vegas assets reporting dollars properties for back-to-back in projects in June the to present us to already inclusive gaming put on There be The Venetian domestically of in we large and into the other this we already gaming The results our half

David Kieske

balance and excited we updated John. results very Thanks, guidance, sheet, our about. year which are [indiscernible] liquidity full

we the As sheet, over constantly bringing our to leverage have balance leverage range we dry for growth our of of continue down ensuring for within time on agencies work owners. capital, credit sheet ratings company, our quality, accretive balance with all on while X.Xx, the our right to balancing long-term the fund ultimately to to further right X diligently focusing powder VICI's working lowering of our the the we the cost side rating improve and are

credit have of of our we today, $XXX and $X.X in forwards powder, availability of $X.X $XXX terms cash dry estimated comprised approximately in In billion liquidity, our million available under revolving under billion of and of total cash million proceeds equivalents, outstanding as facility.

fund credit our $X investment, received quarter These to our sale the additional option, has commitments under were end, million to us and $XXX capital used agreements. of allowing facility accordion approximately Subsequent lender earlier. In billion. Venetian to we up an revolving X proceeds mentioned partially forward John million to shares addition, request settled

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

me, to X.Xx, Our impact equity to the debt net leverage second our is X.Xx. quarter of unsettled -- target excuse range adjusted approximately of annualized excluding within EBITDA, foreign X.Xx X

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

our We are deliver very consistent continued to growth proud this to owners.

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

range we continue article during Our in margins eliminating of the the margin the to in S&P items. noted the net XX% as month noncash income published Barron's in strong highest XXX an have And when by high run July.

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

Turning to guidance.

and share billion Based range, AFFO We both ending dollars per as on basis. AFFO year-over-year our absolute of $X.XX are deliver on and of as December $X.XX midpoint the diluted billion, share. for $X.XX AFFO to our $X.XX updated a or between XXXX year XX, the is VICI raising share be per XXXX, guidance expected now to between in guidance for X.X%. common per well growth expects

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

Operator

Caitlin Instructions] from And from Goldman Burrows [Operator first question Sachs. comes our

Caitlin Burrows

the you Well, options might this does to guess you up turning details I on one this options the going the bigger how your the options of plans on you that. are? as think you far forward deals you thanks like and be, might that they year. for ended that have picture, process out, future, the way might or update how not any structure out and on, kind in guess, that impact execute working the guess do decision-making I advance in have what I create, just Anything

Edward Pitoniak

or David, in want first forward? about take crack going terms a that think at of you Yes. options do to John we how

John W. Payne

Yes, very at strategic bit. on decision to this it's a heard was also But and it I my is important. important a little allocation do that think comments I time. understand question. based it's capital good management this a were broken portfolio really

[indiscernible], continue We that opportunities and with of renegotiate have put are those. great times opportunities that or of category to conviction those negotiate, understand grow front and around great conviction important world. again, length and as in geographical us about tenant the the the business at the and look think have of continue we will it's further we to we both But appropriate diversity. And we'll to that to calls our

Caitlin Burrows

on follow-up a potential as also opportunities. geographic remarks just noticed prepared And international it. the mentioned that in point, diversity Got I

further come comment opportunities over you type, or size kind where? up that could for this medium of you if international on sort term wondering think just So the of what

Edward Pitoniak

John?

John W. Payne

Yes.

Another good question.

to it can diversify announce but busy to parts capital new well. been that world some anything traveling, where think I but internationally. And Australia, have time in with work. to Zealand. but talked sense, continue U.K. time Europe we've have on we've tenants we don't and the in about I domestically, other and New makes studying. location, We spent only of opportunities see only We've as We've our calls, other and in some the spent obviously, countries not been now not in

Operator

Truist question next Barry Jonas comes our from Securities. from And

Barry Jonas

non-gaming? at split between just that's international look curious how that opportunity As and set, gaming you

Edward Pitoniak

to you take do once want that again? John,

John W. Payne

seems X Barry, legalized time first the gaming see both world. greatest good. that my in we But the I'm we estate at spend what's around internationally. meeting years, am questions time I've real we understanding in imagine the operators not answering going sure in can of all same and this with it's countries percentage X like I It have in a we spend gaming, but and exact with we and those world, today, we'll think around travel you I have assets, the while non-gaming. both when the gaming come the the when gaming experiential sectors do opportunity But the experiential casino for remarks, past of domestically travel and said the still is and operators. In time to

Edward Pitoniak

And magnitude assets by percentage much favor always much logic, that Barry, required by percentage and the I'll add Barry, gaming dollar of will the just pretty the capital add them. that I'll the and just to acquire or -- tend whether investment will given very -- internationally, dollar domestically the definition

Barry Jonas

it. curious Got just a these your how Got you're and follow-up, And strip then just it. land about as days. thinking development

and some on about office your strip, I You is talking obviously noncore now tenant presume Caesars which several own strip and the acres selling land? include then maybe assets,

Edward Pitoniak

Yes.

as Barry obviously great the his But own, at as place obviously, in the that, to, to in our destination we we the right further to already into ecosystem, makes John on broaden Las Vegas So represents a it But you passing much deepening now that, talked with the more with one a potential Las percentage we incremental amount do particularly assets Vegas, be we especially, opening to that's putting and Caesar alluded our the really see quarter, innovation gaming no going a world. And way remarks, Vegas. more is, south as years over asset, then are of invest are we and the very and comfortable the experiences whether which broadening exposure Las continue at and to as Vegas each and strip will that because truly on Venetian earth. We obviously of obviously, Venetian, vacant obviously we in like terms and we magnitude of with capital a the it we Las investment own, lot decades, would drivers. And MGM of annual given end is it our in in other seeing have land Vegas exposure got truly of base about and believers -- rent. assets the invest and -- of capital, of addition Las money almost the implications, we its center. in demand was that's coming have deepen to kind incremental has we the for of did the just is

Operator

comes Wes Our next Baird. from question Golladay from

Wesley Golladay

I investments know the cycle partners, has to acquisition been at consumer. Has change with current you high-quality there pockets target you but this of weakness led looking full how you're some pipeline? the in

Edward Pitoniak

a obviously, starting our how the about you course, that to take there's end end, at whether spending. concern been quarter-by-quarter to some seeing or reports, going as good Especially regionals. I the It's variability say caused report other And in thinking not generally the asset it for weakness higher when, existential fact not yet on categories in we yet. -- We focusing us the to weakness, that earnings very consumer lease it's -- about focusing talk a operators in investments the gaming we hear point recently, among are forward. earnings middle exposed Wes. are question, would about lower affected we on in do, this of And net owner experiences of some McDonald's the hasn't the end you are especially Yes. lower even on consumer. it's at

Wesley Golladay

have that, you a lease think component. And highly It model, a does how predictable you bit to a put goalposts maybe business have little of November. Caesars coming model. some on have in should that? do but up we Okay. harder Could variable That's you the then

Edward Pitoniak

David?

David Kieske

question. -- is it's Yes. a X Hard the year entering with we're to Caesars. getting Wes. It lease We're lease Thanks, year good believe X.

this X So of variable component there the lease regional of X it Vegas -- does a XX% It's we a for and the is versus XX% base will variable. way based, start component. And calculation runs we here and be company. become for comparison year that X XX% that of the lease, X. and and it's seems for is there started does -- X based the November year lease, XX% yesterday that revenues through through on based like net a start are the But variable years

the November should We But on of XXXX. calculation collecting September to actually XXXX. be impact in of seeing, X, are through still the runs it data what period our to because we're based no relatively Caesars neutral escalation

Operator

DeCree CBRE. comes Our question next from from John

John DeCree

Maybe you're say one today with to forward that move Centaur. decision on not your to going

until end of I talk you a your today can the announcement at months may But decision, that a consider to year if that? maybe we had several you why make looking decisive bit thought certainly to curious So make pipeline. and being and the have with little still appreciate ahead so about could

Edward Pitoniak

we announce it's of No, today this are to months in X making it year over strategic Yes. good is were -- John. going decided the into year. question, very change factors now very, our to whatever reason the decision a the a really nature The not ensuing, left they went of that that that the is

time, partners X our return we because And with change management recognizing fairness, to decided we need decided obviously, can on announce also the but be so efficient not factors in to will again, strategic at next today. -- the ruthlessly as always in it to Caesars, months, be as our decision

be understand, of we and it, understand everyone between year. now end not the can Caesars calling the that we us might of team all and our So have very that understand, if time to can wondering will when you can none spend and can understand,

John DeCree

over many get that's or last And on helpful. -- last so. although us probably my question there's Centaur, the months That's X the last you been from

more on bigger recent about kind full kind of lot curious And We've there at has that. Maybe a how just thoughts talked cap in X-wall some coverage of any in consumer today, out. going. of kind coverage underwriting strokes. cap a kind kind terms think So strict a on We've bit -- be space and of is of different, appreciate of you broad is thinking asset but think think assets trends. kind how little some kind of just big now. There's get know high level, you the about you updated and to would happened. gaming in I a transaction rates where good picture, about every and And where if gaming have any of I X-wall of deals so looked gone rates little are

Edward Pitoniak

Yes. Yes.

that point refine the improvement our asking, diversity, much So I last the company tenant thinking continuous in in would investments always to best the that tenant of our the our and, that starting use many diversity, including, very think highest to of think in heart is I and coverage. decision-making of And want forms, you're cost your the both rent continue capital, have geographic our sheet our will obviously, to test and point, and really been pass capital drive a to VICI we be our point, guides quality, John, of our it's on as if question this a very is of dollar tenant what culture, of access capital. we engaged different balance was we that the capital. And our the learning strongest, creation to continuous credit of at strength this much

cost degree which strongest to long-term. just mosaic feel stress to that can, look we've again, as factors, it point, discipline And again, the comparative lead we ultimately developed of -- about capital very the at good the that, around capital we So the advantage over to allocation. we

John DeCree

Perfect. appreciate I that. really

Edward Pitoniak

Thank John. you,

Operator

Nick Our comes from next Joseph Citi. question from

Nicholas Joseph

casino assets Maybe put would is still to there Or question. that guess that just to I [ Is this that you? all on following are any -- the is bedded chance up Indiana ]? well? the fully And as put

Edward Pitoniak

John?

John W. Payne

contract spoke has us. way Reeg about I you Tom the that be earlier at they year, the But put does could plans no as had very the about correct, But been at X the us. until are reads, year, to today. this, The of assets least end vocal assets think, past we last that put Caesars, the over the to these to contract

Nicholas Joseph

you're important look then any any November, be gaming. for that curious regional to just ballots could if there's legislative And That's helpful. just we as issues that on I'm watching

Edward Pitoniak

John?

John W. Payne

We all that, take that, take Ed Ed. -- I'll yes,

State the capital We but I think regional to be new change possibly over continue looking all not there through to quite tenants around changes deploy to happening think are guess gaming, mentioned I where I new are you going that bad, of but some new world categories. it look with the to we're bit could in there and the going and opportunities where the are only, there that to we're better some I world understanding. We'll And good, are be a locations, places Georgia, Texas watch know State continue the be deals, the that. Kentucky they of other of you which in is the year, United to as well. the think often opportunities come will Every about think in And States, United states some of and of States about the bricks-and-mortar gaming. casinos. State sports out talk that spread And with then obviously, there betting, across online with usually, form

they continue for will if then some to So X in process opportunities we stay see ultimately us a touch to awarded to monitor finally say, and we York, are continues invest. when be And licenses not I'll proceed into whom XXXX. to better the will that And where understanding awarded. specifically, to but be we'll there New have

Edward Pitoniak

supply just American I'll allocate as and, emergence I allocators, new we that -- gaming. we add continuing do cases, into as we obviously just obviously the associated of And that capital across legislative need change in add I capital regional many that Nick, would think to -- monitor do continuous Nick, aware take would we because so Vegas to gaming, the That tend regional Vegas, doing we're obviously regional will a the Las more basis. on do. area regional in Because find trends global. to catchment in Las assets, for gaming which for areas than we catchment continue confined the of be supply-demand gaming, care, mark-to-market is

travel in rebounds John the else place than and rebounded has any probably Vegas one U.S., international remarks, around strongest said As travel opening international in of to his stronger world. the the

Vegas, while global. finite, catchment areas market so we again, allocation will on a need will localized supply/demand And areas somewhat into whose mindful highly come to the come Las new a decisions are that based is to catchment we basis. area, in regional weigh upon obviously supply trends to capital our and And it be need

Nicholas Joseph

Appreciate it. sense. Makes

Edward Pitoniak

Nick. you, Thank

Operator

And Haendel the comes next question St. from

Juste from Mizuho.

Ravi Vaidya

Vaidya Ravi for the is line Haendel. on This

] here Just Indian current payroll rate enough cap next couple had environment? assets, it the operations And as [ was the emergence X the attractive casino in on Bally not a the Chicago impact years' of rate follow-ups did coming could quick possibly of throughout Midwest? the the up

Edward Pitoniak

John the second part I'll of that. Yes. let take

cap On rate the fine the first a perfectly was rate. cape part,

be As of more we both the investment scrutiny total capital our $X would as to the tenant our will, cap basis key, and capital. We, the to wanted on close geographic be rate investing of as of than also our contemplated of and X% diversity on or associated accretion factors. diversity, secondary in highest our and factors relentless billion best those again, across we a capital you but this accretion, and look use of opportunities array potentially if nonfinancial

gaming. for then over rate not his will I cap itself thoughts it turn western by to the issue. And gating on So John the was

John W. Payne

impact consumers to drive, Yes. do far the downtown away from is Ed's will no the ultimately and the is go earlier Indianapolis To considerably facility Chicago in they downtown Chicago. question about casinos, comments to gaming answer far is regional about The that. will built Indianapolis that market how on where the

from casinos and other well. Chicago many there's can choose between fact, that Indianapolis as In consumers

asset. So a call to was our not that decision the X factor in Indianapolis not

Ravi Vaidya

helpful. That's

have you as one a entertainment of you experiential environment? that forecast important more we here do a WolfGreat years, large this to recessionary couple become? the strategy with And how Just Great is in deals over the noticed Wolf solution here. option credit defensive How

Edward Pitoniak

do David, you take that? want to part first of the

David Kieske

good gets of Yes. we the to Thanks, We develop ownership way, credit it's book if we may ultimately new we to book move to of deepening And $X.X we billion, to and relationships, repaid, we grow or segments learn that credit credit and the learnings either -- learn today like, learned at our feel new assets, we options way of at areas Ravi. develop those about, continue new relationships. a a about you've things developed our relationship call us new our the estate Roughly, like, broaden through and the X% talk the our relationships. not existing things But day, and is book we in to real on. X% and that heard partnerships, our is And deals that through us area. we around businesses, end as and capital. capital along expand allows have ultimately, loan some our to discretion. But the want we've in total

we're about, it's and very, something expand both our something and a use that domestically tool and been we as toolkit it's in internationally. been very excited continue So effective we to

Edward Pitoniak

And Ravi, can question? you that second repeat half the of

Ravi Vaidya

as and Sure. we We've Wolf years. the had recessionary just over where environment how particularly stretched? hear is go is comments important the source a I to wanted couple entertainment of here Great defensive consumer a this into your on deals with

Edward Pitoniak

David, talk Great durability do we you seen Yes. Wolf's through cycles? historically what all about to on have want

David Kieske

indoor Great room in back public broader went white at he the we of in first in and these paper water Wolf parks was did through indoor looking businesses. When through Monday started In when Sunday, economic sector original 'XX and park or, back the it business. Thursday 'XX, the 'XX, the water Wasserman our Thursday is Yes. vitality Gabe broadly, here

the the because week both a entertainment we the family of they And multiple gaming, X-day underwriting economic they year. within months, exceeding call it's without the have cash last center, Now a it -- the and its ultimately levers was into registers broader an earlier with the And beverage, water lodging. And just food the business. X and refi have, initial park, year went this opened Perryville example, casinos them as package. and

things So and of they cash flow. producing open they lot these open open, quick, a

businesses. opportunity that. So to these water park And some we're excited real of estate about there's of hopefully, an someday indoor own the

Operator

David comes Katz question from next Jefferies. The from

David Katz

John, something transient have impact through down, bit little your activities a pulse you just through window past of question days, consistent even our a shift outlook of a stream So that a pretty it of please? specifically earnings couple little a hearing of bit more we've around bit to or great, little moderate which different different assume for leisure -- kind seen a and in a window, finger that not travels, hospitality. And what your across would And of John, imminently, love insight I you're but well. on will from I seeing as your is

John W. Payne

like talk some come in going travels go person you're consumer. the what's colleague, are matter touched around about what tenants Vegas. the though is Las done the When or And interesting and said different diversifying in my about what right? Everyone what no attract I'm the telling Vegas. We're to West Coast, Las wouldn't XX fly continue that, they see probably States. this And Vegas. Nice The so myself, David, you by Chicago, correct. and you that about the world to some hearing in hear Francisco New on to that about in ago, our you. were to I that beauty have a was become or traveling have particularly said, United the businesses I'll city. reasons you And was go Southwest that was X Las they you're private I would where York. to only sector to consumer, guess to, hearing earlier on traveling. Look, a hopefully, comments, softness while they I jet, and to and sector lower-end hit wouldn't whether city X they Airlines, comes is Ed his to San I sector, years the visiting story into to on by David. about the And I cities, And recently. met Scotland high-end to Yes, I'm talked if has have it been going every answer, road

States, where and you answer money why we our is about money Las world so I'm put I'm our the giving where of that's Vegas. you whole about bullish to So on a the look giving macro an answer we're United not and right now,

is we down because in But we money and consumer other As sectors, tree. we doing, study all world, as what understand of make up I definitely will spending with we the the parts study other Vegas. I continue excited to I'm travels, to where of that and that in about traveling are you, my we Las our tell put will hear people have destination money sure

David Katz

agree. I

Edward Pitoniak

the volatility where make And economy. we to consumer endure period the equity at looking could the dividend-paying we it I'd to comes measured And what be not use again, we're estate, of can of that volatility -- is very term. Graham this, careful it real so because and relationships add and to to like believe we're partner go seeing old invest assets down in investing of do reducing up we value to a like why, before cycles the butt consumer volatility really spending, spending. We cigar that want in strongly next in time go the Katz's in versus question. That that potentially of consumer sure operator, David as to when economic in we Benjamin the we in a question, just highlights the stocks

out continually pay the our dividend ideally very and estate are seeking that secular is cycle a to dividend positive and that inflation. steadily we confident rate that feel endure to can a such cycle can in has we exceed We equal grow know ability trends, a at and real or

Operator

Michael Street. comes from Our Herring Green question from next

Michael Herring

on question My sheet. balance

coming did those investment-grade half in VICI potentially call better $X -- a your How not first decision reduce exercise as that look you roughly in to rights, into has of You particularly next the have earn factor notes the due billion year. and rating? leverage to

Edward Pitoniak

the And over as virtually as we not it in call because in, should due have not that of can on decision not those you again, we're our the to mindful to hearing would moment, made it a the opportunities turn how be year. But other course. coming really of we I'll Michael. we in factored compelling rights obligation David refinance investment I effectively in we, Yes. which But say at all. made are, about

that ratings curve. to anything so factor. And was how we're constraining terms know in a David, want add I about not you if don't the thinking and And leverage of

David Kieske

compete good profile. our ultimately, up capital curve, to about migrate continue for liquid continue very, not Ed. our It's and to come ladder it, terms globe. we cost benefit. We're our in later the being in then maturities touched the our in actively those or and balance of we've credit X book well, quarter to 'XX. And ability you very to a debt GLPI, on part second of saw working first -- well very feel and well, portfolio successfully BBB days the management had exercising able investment-grade investment-grade over X a March. around Michael, refinancing May refi towards June. in oversubscribed maturity And due first as sheet, maturities refi time, peer, And a with No, profile extend very very refing our rated, call. our being maturity and then quarter and refi you that planning XXXX and those year, February, lowering offering asset -- having ago. And saw and you successful Yes. the back us a got And accrues of we we're deep again, [ next that, to the in the across did acquisitions ] maturities

Michael Herring

bit. gears Got it. little That's Maybe all a very just helpful. switching one more,

on As the side, there's event more change on -- that John chatter side. you operator maybe master protection there operator on in a control is VICI the some has speak is on this been can practical just broadly leases M&A for its the just the of

Edward Pitoniak

John?

John W. Payne

we company to could It's to feel our X on to protection. one over that Yes, add Counsel is our We're Samantha the now touch a good -- our had that. But a the staying double be or But good. X digits. simply answer to got started leases, in we leases, better Michael. a operators question, -- do because going very when used General we we hard it's double market. we've what's have Gallagher, we that understand with all in line, on in have

that many know probably you protections we But think to out word our like the the used you I there don't we leases have. Sam, do word question? in have would add I I if the to chatter; anything right best that's now. think

Samantha Gallagher

job. you John, great Yes, did a

a gone control John's reminder, different of mindful of ensure. see are we as with all to number change one our while have of merger. the where we [indiscernible] already, control and leases, just happens change just point, a do strong think I through of what tenants to have a have of in -- of leases we And Ceasars a protections our

with comfortable how structured change our very leases feel any to we So control. are address

Operator

Evercore. from Our next Jim Kammert from comes question

James Kammert

in that I activity and mean and point? has the don't anything led investing well you was bump David, include there activity prospective guidance. guidance disclosed particular this the acquisition been you to at

just that this So I factors time? or it there curious motivated to X do at X are was

Edward Pitoniak

David?

David Kieske

I mean, Jim, you touched on that.

year funding -- we finalized. when how and fund think last thing the weren't the announcements to we call, the going I -- were that timing of some we our first -- quarter some -- of had made the previously earnings

any don't unknown as any project unknown so about our unidentified activities activities. or in we And capital guidance, we or markets talked

that funding guidance. feel guidance it lot very the about And good feel those Wolf in of closed So from loan the and plus very increase earnings. led slightly came Great after announcements a which our impact, through has our continued us to about the confident book achieving

James Kammert

further future this a bucket more opportunity the these be -- in opportunities, your mind? alternatives book of Okay. the us to what I've And than they to question, you're in or credit other whole color, -- the lot in Caesar option the properties. obviously maybe the set would Obviously, then are interest? please. value is almost you a not split said or between Ed, fee but ramp sort dollar And invest give second you of get about -- capital your going enthused

Edward Pitoniak

allocation you point fee not heavily which, continue a achieve as principally deal. one weighted that view, is will reiterate, X% very we as a sustainable risk one thing management REIT just in be be case been from and fee can cadence, to do sustained a to with Yes. we predominantly cadence almost expect one that would allocate will And as time. that a to over be necessarily the that very as into assets. Again, have think both to single capital I Indiana will Jim. happy a interested, much think have principally been it of again, capital, be return always of in would I is and It gaming -- and And investment, capital on will the

Operator

question next Kilichowski from Our from comes Wells John Fargo.

John Kilichowski

less we growth little pressing I'm a side can you Heros are and Kind options in and comments are of for these Canyon call Ranch Caesars. the that going Cabot and of to back know if just curious, [ to I about maybe the embedded experiential terms and line, pipe, how down Homefield jump time the thinking but the ] following Margaritaville? of to

Edward Pitoniak

sustainable with Yes, and asked. more And I that. sustained question with John, a to allocation Jim has last itself question only sustained that to capital start comment I'm before happy and to that do not to a I that cadence, Kammert one do, last wanted lends the And assets add just Canyon to funding about to are need at under for -- draw Cabot, or whole of We the funding opposed obviously time that others. deal. Anyway, ramping. here to otherwise to one to one talking go as the about lot either sustainable your cadence we're Ranch and on development a

none of this pretty to some we to market are our forward best Farms. needs do when of get the model, Citrus we're will we look in take in excited and But really Cabot terms saying point meantime, Samantha, we confident But exercise we can imminent. Citrus sustain the day very created to and They is mind in the assets Cabot have you what color the operator Cabot at time want right there. And time call about, So add we're obviously to what the Samantha, Farms. the that we're seeing to at think, doing the need I obviously, they immediately any sensation in share can opco/propco where share. which

Samantha Gallagher

in rights. we global about that changes their there. continue when just our opportunities excited -- the relationship thanks, Cabot our we're our we no, expand about and relationship, exercise in and -- know, I to Ed. as the about they some No to call excited follow may Yes talk commitment portfolio. future We're

John Kilichowski

maybe was your to sense jump forward in depending your XX guidance. effect a And roughly Got just million there then it. the And reflects quickly sale of agreements. that the dilutive under shares, there

wondering the Just rest dilutive of the effect the like what for impact of -- that year. the

Edward Pitoniak

David?

David Kieske

very a in method, to minimal. shows David. to Yes, dilution the very, share we've that John, minimal account count range. impact stock the guidance If treasury under up and Yes, it's it's forwards very the got our for it's

Operator

comes from next R.J. Milligan Our Raymond James. from question

R.J. Milligan

today on a the There some the probably curious your wouldn't I assets. the overhang just much impact on other calling assets? announce Centaur. that your want opportunities you to having the the we if overhang have think can of decision I'm you one interpret the as curious had that be last on of John between how on little And end I'm just an Centaur equity? follow-up. stock early of cost question and that the you now I was of that and don't calling this pursue year was uncertainty given may

Edward Pitoniak

factor much of means. that was from QX stock, the you. we're by back obviously want opportunities be would capital achieve doing other point of of more sustainable. spent factor and obviously our to perception deciding into the and again, had hear of aware to are -- be capital that strategies and factor driven all in aware, on good we even of capital of overhang couple and activity, it always AFFO based we Obviously, every acquisitions the a to first not and We any i.e., felt the a and factor growth, early very That Again, being a through compelling big just decision on like R.J., Very as we needed significant was election to good go very desired funding that equity have sustainable the was sure allocation are market. But desire, we our comfortable time, number very it big to that we're to We've it a general comfortable deciding and and requirements, to and but everybody very make the we real won't a achieve and weeks of by of a REIT comfortable no, both deciding sustained funding. our -- QX the given the day. And announcing made state in a understood. in just wasn't deals as announce happen sustained X decision. sustained now. I cadence that funding matures years cadence generally that capital. And allocate sustainable in driving VICI

R.J. Milligan

you're that forward interpret user likely comment be of we ATM Should as funding to overnight? a bigger the versus going

Edward Pitoniak

care I'll turn the David it that color VICI I'll want to ATM over do, turn to with But that to develops over he fatigue. And I any we wants to market David. that, add. take never for further obviously before

David Kieske

No. That's exactly my stole Ed, you right. line.

ATM, larger As raising you've a overnight, have heard we approach an us deals with whether balanced transactions. to say, that under blocks, connection marketed [indiscernible] be equity, in leadership,

style, our and fatigue efficiently, then capital in that we there So are want we developing ensure developing the we with to that also out or ensure our most stale raise becoming but not owners.

Operator

next question from Dan comes from The One Guglielmo Securities. Capital

Daniel Guglielmo

me if are investments. growth Just one the historically solution of you do you has And choppy? mezz those Most credit the could monitoring in investments, investments? which risk. does recent more get future all carry How on been preferred funding from and pull macro commitments the economy the

Edward Pitoniak

David?

David Kieske

Chief Yes. Solutions. Experiential the our Accounting Officer. MD here room, Credit the Gabe VICI is in of He's

on Credit for head this answer and So that. Solutions

Gabriel Wasserman

thanks Yes. for Dan, question. the

point and are thoughtful we're mezz very last as So underwriting. we're where with our very our preferred our and thoughtful though structured certain is those equity, and about Even attachment investments dollar.

property operating the underwriting. so sophistication kind and underwriting projections of our that goes into sponsor, of the all Looking at future history of the and strength

we're have under But to wouldn't that allow precedent certain for protections economy, something borrowers of performance to terms agreements, us as conditions the a team. We rights, the in working if in where contractual our have loan And then generally, and all funding. have us order loan investment quarterly that the went reviews, stop to management fund. there's macro meet certainly that of discuss we it at property sideways in

Edward Pitoniak

-- this would we just own. strategic criteria. worst willing If add would always be our we , in Ed. would would Dan, just the -- that, against again, Dan lending our assets in to into Dan worst-case case, investment And worst we assets, in that be experiential case, we always came want that, -- want meet a to I scenario, add these the I is asset the hands, are ever would

Operator

comes Macquarie. Our from next question Chad Beynon from

Chad Beynon

that highlighted Vegas, also being Las a the guys strength times which growth the a out have driven in the who few obviously casino to the You the the assets, entertainment come we've that gets visitation, of but seen casino lot of city. in of still stats sports in is terms people some there, by to don't and visit

of So sector. But of obviously from some event with stadium concert you And you benefit that looking visitation. those you of deals terms do anything of that how has in think about live mind, entertainment, changed with the types do to the businesses? durability in

Edward Pitoniak

John?

John W. Payne

talk great Yes, the water indoor Chad. obviously, about in question, it's we've the over that parks, looking sports. investments at. heard I pilgrimage youth made we're years wellness, And golf, And us a sectors you've think

and gambling live what growth about better the also City in sure continuing can could ] we to It Vegas States. happened to attracting that study with the the be inside Las estate operator that and economics great, would asking better And and its There food big long are absolutely think love been we be. sports they you're are shows They're have question but cash happens facilities. I [ the know sector and support a rest a Vegas what adding by could with filters time. spending we the some entertainment. understanding. I and of us revenue that. And into sports I just to about the that is model. diversified entertainment, of flows a those you're it not real make an is new United investment entertainment asking partners exciting over an beautiful how in that a that the But we understanding be Las make has would time there tenant We're sure stream our of for Las and is nightlife. but time? and want buildings. We out investment and want and has we question durable, consumers of But think -- and we're the the Vegas,

Operator

hand today's any would like session. I now Edward concludes this question-and-answer And to Pitoniak over to remarks. final for

Edward Pitoniak

earnings And just is rest enjoyable of your Thank today's you, call. all Bye season thank now. And time on of summer. once you, you wish the Carla. for an over, for we'll

Operator

call. And for conference this concludes today's you joining. Thank

You may disconnect now your lines.

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