Vici Properties Inc. · NYSE:VICI
Vici Properties — Merger or Acquisition (March 2021)
14 slides from Vici Properties's merger presentation, Mar 3, 2021
Slide 1: The Venetian Resort Transaction Overview
T HE VEN ET I A N RES O RT T R A N S A C T I O N O V E R V I E W M A R C H 3 , 2 0 2 1 E x h i b i t 9 9 . 2
Slide 2: Disclaimers
2 DISCLAIMERS Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and s
Slide 3: Investing in Experiential: One of the Largest Single Assets on the Las Vegas Strip
3 INVESTING IN EXPERIENTIAL: ONE OF THE LARGEST SINGLE ASSETS ON THE LAS VEGAS STRIP…
Slide 4: And the Largest Single Hotel Complex in America
4 …AND THE LARGEST SINGLE HOTEL COMPLEX IN AMERICA… Note: By hotel rooms.
Slide 5: As Well as One of the Largest Gaming Assets in America
5 …AS WELL AS ONE OF THE LARGEST GAMING ASSETS IN AMERICA…
Slide 6: And the Largest Privately-Owned Meeting, Convention & Event Space in America
6 …AND THE LARGEST PRIVATELY-OWNED MEETING, CONVENTION & EVENT SPACE IN AMERICA Note: By square footage.
Slide 7: Experiential Apex: One-of-a-Kind Commercial Real Estate Asset
7 EXPERIENTIAL APEX: THE VENETIAN RESORT & SANDS EXPO IS A ONE- OF-A-KIND COMMERCIAL REAL ESTATE ASSET The Venetian Resort (Las Vegas, NV) The GM Building (New York City, NY) Owner: Boston Properties, Safra, Zhang Xin Ala Moana Mall (Honolulu, HI) Owner: Brookfield Owners: Blackstone and Ivanhoe Stu
Slide 8: Transaction Summary
8 TRANSACTION SUMMARY THE VENETIAN RESORT REAL ESTATE ACQUISITION TRIPLE NET LEASE SUMMARY 1.95x(1) 16.00x 6.25% $487 million $4.0 billion PropCo Multiple Implied Cap Rate Underwritten 2019A Adjusted EBITDAR Underwritten Rent Coverage PropCo Purchase Price Initial term of 30 years, with two 10- year
Slide 9: Highlights: A Marquee, Irreplaceable Asset on the Las Vegas Strip
9 THE VENETIAN RESORT HIGHLIGHTS A MARQUEE, IRREPLACEABLE ASSET ON THE LAS VEGAS STRIP ASSET OVERVIEW Hotel Rooms Gaming Platform MICE Platform Food & Beverage Entertainment Retail 3 Towers ~7,100 keys ~225K SF ~200 tables ~2,000 slots ~2.3MM SF 14 ballrooms 5 exposition halls 333 meeting rooms 35 r
Slide 10: Positioning: Largest, High-End Asset on the Las Vegas Strip
10 THE VENETIAN RESORT POSITIONING LARGEST, HIGH-END ASSET ON THE LAS VEGAS STRIP 225 192 169 155 152 150 124 Venetian Wynn MGM Bellagio Mandalay Bay Aria Caesars Palace 2,300 2,044 850 630 500 300 200 Venetian Mandalay Bay MGM Wynn Aria Caesars Palace Bellagio 236 212 160 147 128 93 71 Wynn Venetia
Slide 11: Acquisition: Attractive Opportunity at a Significant Discount to Replacement Cost
11 THE VENETIAN RESORT ACQUISITION ATTRACTIVE OPPORTUNITY TO ACQUIRE A WORLD-RENOWNED REAL ESTATE ASSET AT A SIGNIFICANT DISCOUNT TO ESTIMATED REPLACEMENT COST Note: 1. Based on annualized adjusted EBITDA for the quarter ended December 31, 2020 and, in the case of VICI, as further adjusted for the $
Slide 12: Landmark Location on the Las Vegas Strip
12 LANDMARK LOCATION ON THE LAS VEGAS STRIP Note: 1. VICI has the right to call the Caesars Forum Convention Center from Caesars at a 13.0x multiple (7.7% cap rate) of the initial annual rent in a sale leaseback transaction between September 18, 2025 and December 31, 2026. Caesars has the right to p
Slide 13: Strength of Las Vegas Sands Guarantee
13 STRENGTH OF LAS VEGAS SANDS GUARANTEE (1) LAS VEGAS SANDS OVERVIEW (NYSE: LVS) Baa3 / BBB- Moody’s / S&P $48Bn Equity Market Cap(2) $13.7Bn 2019 Net Revenue(3) 1988 Year Founded $2.1Bn+ Cash on Balance Sheet 2019 Pro Forma Property EBITDAR: $3.9Bn(3)(4) • Owner and operator of The Venetian Resort
Slide 14: Reconciliation from GAAP to Non-GAAP Financial Measures
14 RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES CALCULATION OF THE VENETIAN RESORT ADJUSTED EBITDAR ($ in millions) Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Net Loss ($248) ($119) Interest Income (6) (25) Interest Expense, Net of Amounts Capitalized 13 1