Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (November 2020)
31 slides from Vici Properties's investor presentation, Nov 9, 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) VICI Properties Inc. (NYSE: VICI) is an experiential, triple net REIT that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations PORTFOLIO DATA INVESTMENT & CAPITAL RAISING ACTIVITY SINCE FORMATION Investment Volum
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 Historical Cycles ✓ Long-Term Leases Backed by Corporate ✓ In-Place Acquisition Rent Coverage Opportunities ✓ Potential & Credibility for Substantial Non- Gaming Growth ✓ $22.7bn of Activity Since Emergence(1) ✓ Fully In
Slide 6: Portfolio Income: Character and Quality
CAESARS PALACE LAS VEGAS, NV PORTFOLIO INCOME: CHARACTER AND QUALITY HORSESHOE BOSSIER CITY BOSSIER CITY, LA 6 HARRAH’S & HARVEY’S LAKE TAHOE STATELINE, NV
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 1 Triple Net REIT 2 Revenue Streams 3 Entry Given 4 Weighted Average with 100% from Gaming, Legislative & Lease Term of Occupancy F&B, Retail and Regulatory 34.7 Years Entertainment Controls Regi
Slide 8: Income Foundation: Strength of Our Partners
INCOME FOUNDATION: STRENGTH OF OUR PARTNERS Caesar Entertainment Penn National Gaming Hard Rock has Century Casinos JACK Entertainment is a Chelsea Piers is a 28-acre (NASDAQ: CZR) is the (NASDAQ: PENN) is the developed a leading (NASDAQ: CNTY) is an Cleveland-based urban waterfront sports village l
Slide 9: Income Portfolio Diversification
INCOME PORTFOLIO DIVERSIFICATION VICI CONTINUES TO DIVERSIFY ITS RENT BASE GEOGRAPHIC RENT DIVERSIFICATION Detroit At Formation (2017) Current Lake Tahoe / Reno Joliet / Hammond Cleveland Philadelphia Council Bluffs Cincinnati Atlantic City 26% 31% Las Vegas North Kansas City Louisville Las Vegas La
Slide 10: Innovative Financing Solutions to Create Current & Potential Future Value
INNOVATIVE FINANCING SOLUTIONS TO CREATE CURRENT & POTENTIAL FUTURE VALUE STRATEGIC, SECURED CAPITAL ALLOCATION CAN PROVIDE VICI A PATH TO FUTURE REAL ESTATE OWNERSHIP Principal Future Funding Interest Final Investment Borrower Balance Commitments Rate Maturity Forum Convention Caesars $400,000,000
Slide 11: Income Durability Throughout Historical Economic Cycles
INCOME DURABILITY THROUGHOUT HISTORICAL ECONOMIC CYCLES GAMING REVENUE: 50% LESS VOLATILE THAN S&P 500 REVENUE… 300% Peak-to-Trough: 250% Gambling -9% Retail -11% S&P 500 -18% 200% 150% 100% Casino Gambling PCE (1) Retail & Food Service Sales S&P 500 Revenue/Share 50% Q498 Q400 Q402 Q404 Q406 Q408 Q
Slide 12: Income Magnitude and Value
INCOME MAGNITUDE AND VALUE 2015 –2020 YTD SINGLE-ASSET REAL ESTATE TRANSACTIONS WITH NOI > $70 MILLION NOI ($MM) Select Las Vegas Strip Sales & Financings 250.0 • The Shops at Crystals sold in 2016 at a 4.5% cap rate Bellagio • Town Square Las Vegas sold in 2017 at a 5.3% cap rate • The Grand Canal
Slide 13: Growth Opportunities
GREEKTOWN CASINO -HOTEL DETROIT, MI GROWTH OPPORTUNITIES HARRAH’S LAS VEGAS LAS VEGAS, NV 13 HARRAH’S NEW ORLEANS NEW ORLEANS, LA
Slide 14: Substantial Embedded Rent Growth
SUBSTANTIAL EMBEDDED RENT GROWTH IDENTIFIED ACQUISITION PIPELINE PROVIDES SIGNIFICANT RENT GROWTH ($ in millions) Subject to Caesars Portfolio Strategy $1,289 Current Annual Illustrative Rent Illustrative Rent Illustrative Rent Total Identified Potential Other Gaming, Leisure, Cash Rent from ROFRs (
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-owned 27 acres of land that is currently under The Palazzo the Regional Master Lease strategically located The Mirage adjacent to The LINQ and behind Planet Hollyw
Slide 16: 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 LOW • Strong CRM capability, enabling cost-ef
Slide 17: Capability & Governance
CASCATA GOLF COURSE BOULDER CITY, NV CAPABILITY & GOVERNANCE MARGARITAVILLE BOSSIER CITY BOSSIER CITY, LA 17 HARD ROCK CINCINNATI CINCINNATI, OH
Slide 18: Proven and Independent Management Team
PROVEN AND INDEPENDENT MANAGEMENT TEAM 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 of C
Slide 19: 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
Slide 20: Strong Corporate Governance Highlighted by Board Diversity and Independence
STRONG CORPORATE GOVERNANCE HIGHLIGHTED BY BOARD DIVERSITY AND INDEPENDENCE FROM TENANTS Overlapping P P Directors with Tenant Management 0 2 of 7 0 Management P P Representation on B o a r d Yes No Yes Parent / Tenant P Company Ownership 0% 57%(1) 5%(2) Independent P C h a i r m a n Yes No No(3) Se
Slide 21: Appendix
HORSESHOE COUNCIL BLUFFS COUNCIL BLUFFS, IA APPENDIX JACK CLEVELAND CASINO CLEVELAND, OH 21 CENTURY CASINO CAPE GIRARDEAU CAPE GIRARDEAU, MO
Slide 22: Shareholder Base Transformation
SHAREHOLDER BASE TRANSFORMATION VICI CONTINUES TO BUILD A DEDICATED LONG-TERM OWNERSHIP BASE THROUGH INSTITUTIONAL REIT, INDEX AND OTHER LONG-TERM SHAREHOLDERS 22% 26% 32% 44% 8% 52% 59% 57% 58% 62% 16% 18% 64% 100% 22% 22% 70% 18% 21% 58% 24% 49% 24% 22% 35% 26% 24% 21% 18% 14% 14% 10/6/2017 3/31/2
Slide 23: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH CAPITALIZATION SUMMARY WELL-LADDERED MATURITY SCHEDULE ($ and shares in millions) As of 9/30/2020 Revolving Credit Facility ($1,000 million capacity) $0 $1,000 Term Loan B Facility 2,100 Total Secured Debt 2,100 $2,100 Senior Unsecured Notes 4,750 $1,250 $1,000 $1
Slide 24: Durability of Dividend Since Emergence
DURABILITY OF DIVIDEND SINCE EMERGENCE VICI HAS CONSISTENTLY RAISED ITS 100% CASH DIVIDEND WHILE TARGETING A 75% AFFO PAYOUT RATIO, SUPPORTED BY 100% CASH RENT COLLECTION TO DATE Q3’18 Dividend Q3’19 Dividend Q3’20 Dividend Increase: 9.5% Increase: 3.5% Increase: 10.9% $1.3200 $1.1900 $1.1500 Q3'18
Slide 25: Favorable Debt and Lease Maturities Relative to Triple Net Lease Peers
FAVORABLE DEBT AND LEASE MATURITIES RELATIVE TO TRIPLE NET LEASE PEERS DEBT MATURITY SCHEDULE Company 2020 2021 2022 2023 2024 Thereafter VICI Properties 0% 0% 0% 0% 31% 69% Agree Realty 0% 0% 0% 6% 10% 83% Essential Property Realty Trust 0% 1% 1% 1% 45% 53% Four Corners Property Trust 0% 0% 20% 20%
Slide 26: Master Lease Agreements
MASTER LEASE AGREEMENTS TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY Regional Master Lease and Las Vegas Master Lease (1) Margaritaville Bossier City Lease Greektown Lease Joliet Lease (1) Tenant Caesars Entertainment Caesars Entertainment Penn National Gaming Penn National Gamin
Slide 27: Master Lease Agreements (Continued)
MASTER LEASE AGREEMENTS (CONTINUED) TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY Hard Rock Cincinnati Lease Century Master Lease JACK Cleveland/Thistledown Master Lease (1) Tenant Hard Rock Entertainment Century Casinos JACK Entertainment Current Annual Cash $43.4 Million $25.0 M
Slide 28: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA. Three Months Ended Last Twelve Months Ended ($ in millions) September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2020 Net income (loss) attri
Slide 29: Summary of Terms of Put/Call and ROFR Agreements
SUMMARY OF TERMS OF PUT/CALL AND ROFR AGREEMENTS PUT/CALL AGREEMENTS RIGHT OF FIRST REFUSAL (“ROFR”) AGREEMENTS Harrah’s Hoosier Park and Caesars Forum Convention Center Las Vegas Strip Assets Horseshoe Casino Baltimore Indiana Grand Racing & Casino • VICI has the right to call the • VICI has a ROFR
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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