Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (November 2019)
31 slides from Vici Properties's investor presentation, Nov 4, 2019
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 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 4: 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 ✓ $16.5bn of Activity Since Emergence1 ✓ Fully Internalized Gov
Slide 5: Portfolio Income: Character & Quality
1Portfolio Income: Character & Quality 5
Slide 6: Fundamental Advantages of Our Experiential and Gaming Real Estate Portfolio
FUNDAMENTAL ADVANTAGES OF OUR EXPERIENTIAL AND GAMING REAL ESTATE PORTFOLIO Diversified High Barriers to State & Local 1 Triple Net REIT 2 Revenue Streams 3 Entry Given 4 Incentives to with 100% from Gaming, Legislative & Ensure Casinos Occupancy F&B, Retail and Regulatory Thrive Entertainment Contr
Slide 7: Income Foundation: Strength of Our Tenants – Combined Caesars and Eldorado
INCOME FOUNDATION: STRENGTH OF OUR TENANTS – COMBINED CAESARS AND ELDORADO1 Caesars and Eldorado Strategic Combination Combined Portfolio Highlights • On June 24, 2019, Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado”) announced the acquisition of Caesars Entertainment Corporation (NASDAQ: CZR) (“Ca
Slide 8: Income Foundation: Strength of Our Tenants – Penn, Hard Rock, Century, JACK
INCOME FOUNDATION: STRENGTH OF OUR TENANTS – PENN, HARD ROCK, CENTURY CASINOS1 & JACK ENTERTAINMENT2 Penn National Hard Rock Century Casinos 1 JACK Entertainment 2 Penn National Gaming (NASDAQ: Founded in 1971, Hard Rock has Founded in 1992, Century is an JACK Entertainment is a regional PENN) is th
Slide 9: 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 Q4
Slide 10: Income Magnitude and Value
INCOME MAGNITUDE AND VALUE 2015 – 2018 Single-Asset Real Estate Transactions with NOI > $70 Million NOI ($MM) 120 245 Park Ave, NYC 100 Fashion Show, LV 1 1095 Sixth Ave, NYC MGM National Harbor, MD 787 Seventh Ave, NYC Worldwide Plaza, NYC1 1 Harrah’s Las Vegas 80 10 Hudson Yards, NYC 1285 Sixth Av
Slide 11: Triple Net Income Flow Through & Transparency
TRIPLE NET INCOME FLOW THROUGH & TRANSPARENCY Transparency & Integrity of Triple Net AFFO Multiple & Payout Ratio1 18E AFFOx 18E Payout 18E Payout 18E AFFOx Delta Delta Incl. Redev. Ratio Ratio Incl. Redev. Subsector Triple Net 16.2x 16.3x 0% 83% 83% 0% Single Family 29.0x 30.0x 4% 43% 45% 2% Apartm
Slide 12: Growth Opportunities
2Growth Opportunities
Slide 13: Clearly Identified and Actionable Growth
CLEARLY IDENTIFIED AND ACTIONABLE GROWTH Broad Opportunities Across Identified and Other Experiential Real Estate Assets # of Properties +68% Increase in Number of Properties 6 38 8 32 5 19 Octavius Tower at Caesars Palace Las Vegas Initial Portfolio Completed Pending Acquisitions1 Pro Forma Put/Cal
Slide 14: Substantial Embedded Rent & AFFO Growth
SUBSTANTIAL EMBEDDED RENT & AFFO GROWTH Identified Acquisition Pipeline Provides Significant Rent Growth ($ in millions) Subject to the Closing of Contingent and the Eldorado/Caesars Contingent on Combined Conditional Upon Closing Combination Eldorado/Caesars Portfolio Strategy $253 $25 $66 $1,251 $
Slide 15: 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 16: Potential Non-Gaming External Growth Opportunities
POTENTIAL NON-GAMING EXTERNAL GROWTH OPPORTUNITIES Evaluating Growth Opportunities Recreation / Hospitality ($78bn)1 Other Fitness Centers ($34bn) Non-Gaming Resorts Concert Venues ($32bn) International Gaming Opportunities Theme Parks ($18bn) Casino Acquisitions with Other Gaming Companies Movie Th
Slide 17: Capability & Governance
3Capability & Governance
Slide 18: Results Driven Management with $16.5bn of Activity
RESULTS DRIVEN MANAGEMENT WITH $16.5BN OF ACTIVITY VICI Has Accomplished A Meaningful Amount Since Emergence. . . October 6, 2017 Q1 2018 YTD 2019 VICI formed after successful ~$1.4bn upsized IPO with Announced and closed ~$558mm Pro Forma for VICI at Formation1 th completion of its spin-off from ov
Slide 19: 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 20: Independent and Experienced Board of Directors
INDEPENDENT AND EXPERIENCED BOARD OF DIRECTORS 1 ✓ 0% PARENT/ TENANT COMPANY OWNERSHIP ✓ SEPARATION OF CHAIRMAN & CEO ROLE ✓ INDEPENDENT CHAIRMAN ✓ ANNUALLY ELECTED BOARD 2 James Abrahamson* Diana Cantor Eric Hausler Elizabeth Holland AFFILIATIONS AFFILIATIONS AFFILIATIONS AFFILIATIONS BIOGRAPHY BIO
Slide 21: Strong Corporate Governance Highlighted by Independence from Tenants
STRONG CORPORATE GOVERNANCE HIGHLIGHTED BY INDEPENDENCE FROM TENANTS Overlapping P P Directors with Te n a n t 0 4 0 Parent / Tenant P C o m p a n y 1 2 O w n e r s h i p 0% 69% 5% Independent P C h a i r m a n Yes No No Separation of P P Chairman & CEO R o l e Yes Yes No P P P Staggered Board? No3
Slide 22: Appendix
Appendix
Slide 23: High Quality Real Estate Anchored by Iconic Assets
HIGH QUALITY REAL ESTATE ANCHORED BY ICONIC ASSETS CURRENT PORTFOLIO Caesars Palace Las Vegas Harrah’s Las Vegas PENDING ACQUISITIONS OWNED GOLF COURSES Detroit Cascata, Boulder City, NV Rio Secco, Henderson, NV Lake Tahoe / Reno Joliet / Hammond Horseshoe Council Bluffs Philadelphia Grand Bear, Har
Slide 24: 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 25: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH Capitalization Summary Disciplined Balance Sheet Management2 (Data as of September 30, 2019 unless otherwise indicated) Net Leverage Ratio progression Leverage Target: $ and shares in millions 3Q’19 8.4x 5.0x – 5.5x Revolving Credit Facility ($1,000 million capaci
Slide 26: Master Lease Agreements: Triple Net Structure Provides Security & Earnings Predictability
MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY Non-CPLV & Joliet Pro Forma Non-CPLV Master Caesars Palace Pro Forma Las Vegas Harrah’s Las Vegas (2 Leases)1 Lease & Joliet Lease2 Las Vegas3 Master Lease2 Properties 18 Non-CPLV Properties & 18 Non-CPLV Prope
Slide 27: 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 JACK Cincinnati Century Master Lease1 Master Lease2 Initial Cash $23.2 Million $55.6 Million $42.8 Million $25.0 Million $65.9 Million R
Slide 28: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA, and Net Debt to Adjusted EBITDA less incremental G&A for the periods presented. At Formation1 – YE Post-HLV – YE Post-IPO – YE Twelve Months Ended ($ in millions) Decem
Slide 29: 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) September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2019 Net income attributable to c
Slide 30: 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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