Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (August 2019)
31 slides from Vici Properties's investor presentation, Aug 5, 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 ✓ $15.7bn 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 Triple Net REIT Revenue Streams Entry Given 1 2 3 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 Combination1 Combined Portfolio Highlights • On June 24, 2019, Eldorado Resorts, Inc. (NASDAQ: ERI) (“Eldorado”) announced the acquisition of Caesars Entertainment Corporation (NASDAQ: CZR) (“C
Slide 8: Income Foundation: Strength of Our Tenants – Penn, Hard Rock & Century Casinos
INCOME FOUNDATION: STRENGTH OF OUR TENANTS – PENN1, HARD ROCK2 & CENTURY CASINOS3 Penn National 1 Hard Rock 2 Century Casinos 3 Penn National Gaming (NASDAQ: PENN) is Founded in 1971, Hard Rock has Founded in 1992, Century is an the largest U.S. regional gaming operator developed a leading global pr
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 1 1 Worldwide Plaza, NYC Harrah’s Las Vegas 80 10 Hudson Yards, NYC 1285 Sixth A
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 +58% Increase in Number of 6 Properties 36 7 30 4 19 Octavius Tower at Caesars Palace Las Vegas1 Initial Portfolio Completed Pending Acquisitions 2 Pro Forma Put/C
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 Conditional the Eldorado/Caesars Contingent on Combined Upon Closing1 Combination1 Eldorado/Caesars Portfolio Strategy2 $43 $25 $253 $1,18
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 VICI has a Put-Call Rights Agreement The Mirage on 18 acres for Caesars’ expected Caesars Forum Convention Center Venetian Caesars Harrah’s Caesars-owned 41 acres Palace The LINQ VICI-owned
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 Over $15.7bn of Activity
IBDROOT\PROJECTS\IBD-NY\VIGILS2017\608254_1\Docs\44. Jack - Project Gordie\2018-11-14 Roadshow Presentation\04. Greektown Only\Archive\Project Julius Roadshow Presentation (Pages 14, 15, 18).pptx RESULTS DRIVEN MANAGEMENT WITH OVER $15.7BN OF ACTIVITY VICI Has Accomplished A Meaningful Amount Since
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 Tenant
STRONG CORPORATE GOVERNANCE HIGHLIGHTED BY INDEPENDENCE FROM TENANT 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 Staggered Board? No3 No
Slide 22: Appendix
Appendix
Slide 23: High Quality Real Estate Anchored by Iconic Assets
HIGH QUALITY REAL ESTATE ANCHORED BY ICONIC ASSETS CURRENT PORTFOLIO ANNOUNCED ACQUISITIONS Caesars Palace Las Vegas Harrah’s Las Vegas OWNED GOLF COURSES Detroit Cascata, Boulder City, NV Rio Secco, Henderson, NV Lake Tahoe / Reno Joliet / Hammond Council Bluffs Philadelphia Grand Bear, Harrison Co
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 June 30, 2019 unless otherwise indicated) Net Leverage Ratio progression Leverage Target: $ and shares in millions 2Q’19 8.4x 5.0x – 5.5x Revolving Credit Facility ($1,000 million capacity)1
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 Lease (2 Leases)1 Lease & Joliet Lease2 Las Vegas Lease3 Master Lease2 Properties 18 Non-CPLV Properties, Harrah
Slide 27: Master Lease Agreements (Cont'd)
MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY (CONT’D) Margaritaville Bossier City Greektown JACK Cincinnati1 Century Master Lease2 Initial Cash $23.2 Million $55.6 Million $42.8 Million $25.0 Million Rent Current Cash $23.2 Million $55.6 Million $42.8 Mil
Slide 28: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA, and Net Debt to Adjusted EBITDA less incremental G&A for the periods presented. At Formation1 – YE Post-HLV – YE Post-IPO – YE Twelve Months Ended ($ 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) June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2019 Net income attributable to common
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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