Realty Income Corporation · NYSE:O
Realty Income — Merger or Acquisition (February 2022)
10 slides from Realty Income's merger presentation, Feb 15, 2022
Slide 1: Encore Boston Harbor Sale-Leaseback Transaction Overview
ENCORE BOSTON HARBOR A WYNN RESORT SALE-LEASEBACK TRANSACTION OVERVIEW February 15, 2022
Slide 2: Safe Harbor For Forward-Looking Statements
Safe Harbor For Forward-Looking Statements Statements in this investor presentation that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause our actual future results to differ materially from expected results. The
Slide 3: Investment Rationale and Implications
Investment Rationale and Implications Encore Boston Harbor Resort & Casino ● Attractive risk-adjusted returns. Realty Income is purchasing the Encore Boston Harbor (Encore) Resort and Casino for $1.7 billion at a 5.9% cash cap rate. The transaction is consummated under a 30-year triple net lease wit
Slide 4: Transaction Overview: Irreplaceable Real Estate, Favorable Risk-Adjusted Return Profile
Transaction Overview: Irreplaceable Real Estate, Favorable Risk-Adjusted Return Profile LONG-TERM TRIPLE NET LEASE WITH ATTRACTIVE ORGANIC GROWTH PROFILE Purchase Price $1.7 billion Cap Rate 5.9% Lease Term 30 years Contractual Rent Escalators 1.75% for 10 years / Then Greater of 1.75% or CPI (cappe
Slide 5: Property Overview: The East Coast's Leading Integrated Resort
Property Overview: The East Coast’s Leading Integrated Resort Property-Level Attributes • 3.1 million total square feet • 671 luxury resort accommodations • 71,000 SF meeting and convention space • 210,000 SF casino • 2,700+ slot machines • 185 gaming tables • 15 F&B outlets, including five-star din
Slide 6: Property Overview: Situated Within Close Proximity to Major Boston Landmarks
Property Overview: Situated Within Close Proximity to Major Boston Landmarks Encore is the only casino property in the Boston metro area • 2 miles from Assembly Row • 3 miles from Harvard University • 3 miles from TD Garden (Home of Boston Celtics and Boston Bruins) • 4 miles from Boston city center
Slide 7: Best-in-Class Sports Bar Opened in 2021 | Massachusetts Sports Betting Legalization a Potential Upside Catalyst
Best-in-Class Sports Bar Opened in 2021 | Massachusetts Sports Betting Legalization a Potential Upside Catalyst • Encore is Boston’s only resort casino and Boston is widely recognized as a leading sports city(1) • Wynn brand, customer database, location and omnichannel capabilities expected to drive
Slide 8: Expansion Project to Begin in 2022
Expansion Project to Begin in 2022 Phase 1 expected to include: • ~1,000 seat event center • ~2,200 space parking garage • Incremental revenue driver through F&B and nightlife • Climate controlled pedestrian bridge to Encore • Expected to open in 2024(1) (1) Wynn has option to sell the related land
Slide 9: Wynn Resorts Overview: Strong Liquidity Position Supported by Operational Runway
Wynn Resorts Overview: Strong Liquidity Position Supported by Operational Runway WYNN RESORTS WILL BECOME ONE OF REALTY INCOME’S TOP 10 CLIENTS $20B $3.7B $1.9B ~4.5x <3.5% enterprise 2021E net revenue(2) liquidity for the US pro forma US of total portfolio annualized value(1) segment lease-adjusted
Slide 10: Healthy Industry Fundamentals and Regional Market Tailwinds
Healthy Industry Fundamentals and Regional Market Tailwinds GROSS GAMING REVENUES HAVE OUTPACED PRE-PANDEMIC LEVELS(1)(2) Q4 2021 vs Q4 2019 Growth MASSACHUSETS MARKET HAS RECOVERED FASTER THAN THE OVERALL REGIONAL GAMING INDUSTRY: Encore has outperformed the overall industry and its nearest Class I
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