Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (February 2020)
29 slides from Vici Properties's investor presentation, Feb 24, 2020
Slide 1: Investor Presentation
Exhibit 99.1 INVESTOR PRESENTATION
Slide 2: Disclaimers: Forward Looking Statements
DISCLAIMERS Forward Looking Statements Certain statements in this presentation and that may be made in meetings are forward‐looking statements. Forward‐looking statements are based on VICI Properties Inc.’s (“VICI or the “Company”) current plans, expectations and projections about future events and
Slide 3: VICI Properties Company Snapshot
VICI PROPERTIES COMPANY SNAPSHOT(1) 4 New Tenants 30 17 Since Formation 83% 6% Properties Markets $200mm+ Non-CZR Rent Acquired 5% 3% 2% Percentages reflect % of total initial base rent(2). 20k+ 1.9mm+ Acquisition Volume Equity Raised Rent Acquired Hotel Rooms Casino Sq. Ft. ~$7.6bn ~$5.9bn ~$600mm
Slide 4: VICI is the Next Generation Experiential Real Estate Company
VICI IS THE NEXT GENERATION EXPERIENTIAL REAL ESTATE COMPANY MISSION TO BE AMERICA’S MOST DYNAMIC LEISURE & HOSPITALITY EXPERIENTIAL REAL ESTATE COMPANY VISION WE SEEK TO BE THE REAL ESTATE PARTNER OF CHOICE FOR THE LEADING CREATORS & OPERATORS OF PLACE -BASED, SCALED LEISURE & HOSPITALITY EXPERIENC
Slide 5: VICI Provides the Optimal Combination Of
VICI PROVIDES THE OPTIMAL COMBINATION OF: ✓ Sector Revenue Stability Across All Cycles ✓ Long-Term Leases Backed by ✓ In-Place Corporate Rent Acquisition Coverage Opportunities ✓ Potential & Credibility for Substantial Non-Gaming Growth ✓ $21.5bn of Activity Since Emergence(1) ✓ Fully Internalized G
Slide 6: Portfolio Income: Character & Quality
1Portfolio Income: Character & Quality 6
Slide 7: Fundamental Advantages of Our Experiential and Gaming Real Estate Portfolio
FUNDAMENTAL ADVANTAGES OF OUR EXPERIENTIAL AND GAMING REAL ESTATE PORTFOLIO Diversified High Barriers to Weighted Average Triple Net REIT Revenue Streams Entry Given 1 2 3 4 Lease Term of with 100% from Gaming, Legislative & 33.0 Years as of Occupancy F&B, Retail and Regulatory 12/31/2019 Entertainm
Slide 8: Income Foundation: Strength of Our Tenants (Eldorado/Caesars)
INCOME FOUNDATION: STRENGTH OF OUR TENANTS COMBINED ELDORADO/CAESARS(1) Leading U.S. Gaming Operator Pro Forma Geographic Exposure and Asset Mix Eldorado Caesars ~60 ~300 ~51,000 Properties F&B Outlets Hotel Rooms ~4mm ~4,000 ~71,000 Gaming Sq. Ft. Table Games Slot Machines ✓ New Entrepreneurial Vig
Slide 9: Income Foundation: Strength of Our Tenants (Penn, Hard Rock, Century, JACK)
INCOME FOUNDATION: STRENGTH OF OUR TENANTS PENN, HARD ROCK, CENTURY CASINOS & JACK ENTERTAINMENT Penn National Gaming Hard Rock has developed a Century Casinos (NASDAQ: CNTY) JACK Entertainment is a regional (NASDAQ: PENN) is the largest leading global presence as one is an international gaming gami
Slide 10: Income Durability Throughout Economic Cycles
INCOME DURABILITY THROUGHOUT ECONOMIC CYCLES Gaming Revenue: 50% Less Volatile than S&P 500 Revenue… 300% Peak-to-Trough: 250% Gambling -9% Retail -11% S&P Sales -18% 200% 150% 100% Casino Gambling PCE (1) Retail & Food Service Sales S&P 500 Revenue/Share 50% Q498 Q400 Q402 Q404 Q406 Q408 Q410 Q412
Slide 11: Income Magnitude and Value
INCOME MAGNITUDE AND VALUE 2015 –2020 YTD Single-Asset Real Estate Transactions with NOI > $70 Million NOI ($MM) 260 Select Las Vegas Strip Sales & Financings • The Shops at Crystals sold in 2016 at a 4.5% cap rate Bellagio 240 • Town Square Las Vegas sold in 2017 at a 5.3% cap rate • The Grand Cana
Slide 12: Growth Opportunities
2Growth Opportunities
Slide 13: Substantial Embedded Rent Growth
SUBSTANTIAL EMBEDDED RENT GROWTH Identified Acquisition Pipeline Provides Significant Rent Growth ($ in millions) Subject to the Closing of the Subject to the Closing of the Eldorado/Caesars Eldorado/Caesars Combination and Combination Eldorado/Caesars Portfolio Strategy $253 $1,263 $1,010 CPLV and
Slide 14: Las Vegas Land Provides Opportunity for Further Growth
LAS VEGAS LAND PROVIDES OPPORTUNITY FOR FURTHER GROWTH Unrivaled Opportunity to Deepen the Strip at its Center Treasure Island Wynn VICI has a Put-Call Right Agreement The Mirage The Palazzo on 18 acres for the Caesars Forum Convention Center The Venetian MSG Sphere Caesars Harrah’s Caesars-owned 41
Slide 15: Framework for Exploring Experiential Real Estate Sectors
FRAMEWORK FOR EXPLORING EXPERIENTIAL REAL ESTATE SECTORS LOW CYCLICALITY • Relatively lower cyclicality than other consumer discretionary sectors • Balance between drive-to and fly-to destinations, with drive-to destinations generally being less cyclical • Strong CRM capability, enabling cost-effect
Slide 16: Capability & Governance
3Capability & Governance
Slide 17: Proven and Independent Management Team
PROVEN AND INDEPENDENT MANAGEMENT TEAM WITH EXPERTISE IN REAL ESTATE, GAMING & HOSPITALITY EDWARD PITONIAK JOHN PAYNE Chief Executive Officer President and Chief Operating Officer • Former Vice Chairman, Realterm, private-equity leader in institutionalizing industrial real • Previously served as CEO
Slide 18: Independent and Experienced Board of Directors
INDEPENDENT AND EXPERIENCED BOARD OF DIRECTORS ✓ 0% PARENT/ TENANT COMPANY OWNERSHIP ✓ SEPARATION OF CHAIRMAN & CEO ROLE ✓ INDEPENDENT CHAIRMAN ✓ ANNUALLY ELECTED BOARD (1) James Abrahamson* Diana Cantor Monica Douglas Elizabeth Holland AFFILIATIONS AFFILIATIONS AFFILIATIONS AFFILIATIONS BIOGRAPHY B
Slide 19: Strong Corporate Governance Highlighted by Independence from Tenants
STRONG CORPORATE GOVERNANCE HIGHLIGHTED BY INDEPENDENCE FROM TENANTS Overlapping Directors with P P T e n a n t M a n a g e m e n t 0 3 of 7 0 Management P P Representation on B o a r d Yes No Yes Parent / Tenant P C o m p a n y O w n e r s h i p 0% 64%(1) 5%(2) Independent P C h a i r m a n Yes No
Slide 20: Appendix
Appendix
Slide 21: High Quality Real Estate Anchored by Iconic Assets
HIGH QUALITY REAL ESTATE ANCHORED BY ICONIC ASSETS Caesars Palace Las Vegas Harrah’s Lake Tahoe Detroit Lake Tahoe / Reno Joliet / Hammond Cleveland Council Bluffs Philadelphia Cincinnati Atlantic City Las Vegas North Kansas City Louisville Caesars Metropolis Caesars Laughlin Tunica Resorts / Robins
Slide 22: Shareholder Base Transformation
SHAREHOLDER BASE TRANSFORMATION VICI is Successfully Transforming its Shareholder Base From Foundational Ownership to Institutional REIT, Index & Other Long-Term Holders Leading to a Dedicated Long Term Shareholder Ownership Base Steadily eliminated a sizable equity overhang by successfully reducing
Slide 23: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH Capitalization Summary Disciplined Balance Sheet Management(3) (Data as of December 31, 2019 unless otherwise indicated) Net Leverage Ratio Progression $ and shares in millions FY’19 8.4x Leverage Target: 5.0x – 5.5x Revolving Credit Facility ($1,000 million capac
Slide 24: Master Lease Agreements: Triple Net Structure
MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY Non-CPLV & Joliet Regional Master Lease & Caesars Palace Las Vegas Harrah’s Las Vegas(2) (2 Leases)(1)(2) Joliet Lease(3) Las Vegas(2) Master Lease(3) Properties 18 Non-CPLV Properties & 18 Non-CPLV Properties,
Slide 25: Master Lease Agreements: Triple Net Structure (Cont'd)
MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY (CONT’D) JACK Cleveland/Thistledown Margaritaville Bossier City Greektown Hard Rock Cincinnati Century Master Lease Master Lease Current Cash $23.5 Million $55.6 Million $42.8 Million $25.0 Million $65.9 Millio
Slide 26: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA, and Net Debt to Adjusted EBITDA less incremental G&A for the periods presented. At Formation(1) – YE Post-HLV – YE Post-IPO – YE Twelve Months Ended ($ in millions) Dec
Slide 27: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA. Three Months Ended Twelve Months Ended ($ in millions) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2019 Net income attributable to co
Slide 28: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES FFO is a non-GAAP financial measure that is considered a supplemental measure for the real estate industry and a supplement to GAAP measures. Consistent with the definition used by The National Association of Real Estate Investment Trusts (“NAREIT”), we def
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