Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (September 2018)
31 slides from Vici Properties's investor presentation, Sep 25, 2018
Slide 1: Investor Presentation
Exhibit 99.1 INVESTOR PRESENTATION
Slide 2: Disclaimers: Forward Looking Statements
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx 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 the Company’s current plans, expectation
Slide 3: VICI is the Next Generation Experiential Real Estate Company
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx 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
Slide 4: VICI Provides the Optimal Combination Of
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx VICI PROVIDES THE OPTIMAL COMBINATION OF: ✓ Sector Revenue Stability Across All Cycles ✓ Long-term Leases Backed by 3.6x Rent Coverage ✓ In-Place Acquisition Opportunities ✓ Potential & Credibility for Substantial Non-gaming
Slide 5: Portfolio Income: Character & Quality
1Portfolio Income: Character & Quality 5
Slide 6: Fundamental Advantages of Our Experiential and Gaming Real Estate Portfolio
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx 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 & En
Slide 7: Income Foundation: Strength of Our Tenant
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx INCOME FOUNDATION: STRENGTH OF OUR TENANT Tenant’s Underlying Revenue Diversity 1 Broad Array of Revenue Streams Other2 12% 1.3MM Casino Sq.Ft. 120+ Restaurants ~14,500 Hotel Food and Rooms Beverage Gaming 19% 51% Rooms 18%
Slide 8: Income Durability Throughout Economic Cycles
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx 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 PCE1 Retail & Food Service
Slide 9: Income Magnitude and Value
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx INCOME MAGNITUDE AND VALUE 2015 – 2018 Single-Asset Real Estate Transactions with NOI > $70 Million NOI ($MM) 120 245 Park Ave, NYC 1 100 Fashion Show, LV 1095 Sixth Ave, NYC 1 MGM National Harbor, MD 787 Seventh Ave, NYC Wo
Slide 10: Income Flow Through & Transparency
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx INCOME FLOW THROUGH & TRANSPARENCY Q2 2018 LTM Unlevered Cash Flow1 as % of Revenues 93% 90% Other REIT Sections Median = 53% 64% 63% 62% 62% 58% 53% 50% 48% 47% 45% 28% Mall VICI² Hotel Office Single Home Family Manuf Stora
Slide 11: Growth Opportunities
2Growth Opportunities
Slide 12: Clearly Identified and Actionable Growth
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx CLEARLY IDENTIFIED AND ACTIONABLE GROWTH Broad Opportunities Across Identified and Other Experiential Real Estate Assets # of Properties As Well as ROFR on Any +84% Increase in Caesars Real Estate Number of Purchased Outside
Slide 13: Substantial Organic Rent & AFFO Growth
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx SUBSTANTIAL ORGANIC RENT & AFFO GROWTH 5-Year Call Option From Emergence1 to Acquire Three Properties at a 10% Cap Rate2 with $130 Million of Total Rent as of June 20163 H A R R A H ’ S AT L A N T I C C I T Y H A R R A H ’ S
Slide 14: Las Vegas Land Provides Opportunity for Further Growth
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx LAS VEGAS LAND PROVIDES OPPORTUNITY FOR FURTHER GROWTH Unrivaled Opportunity to Deepen the Strip at its Center VICI has a Put-Call Rights Agreement on 18 acres for Caesars’ The Mirage expected Caesars Forum Venetian Conventi
Slide 15: Potential Non-Gaming External Growth Opportunities
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx POTENTIAL NON-GAMING EXTERNAL GROWTH OPPORTUNITIES Recreation / Hospitality ($78Bn)1 Fitness Centers ($34Bn) Concert Venues ($32Bn) Theme Parks ($18Bn) Movie Theatres ($17Bn) Spa / Wellness ($17bn) Cultural ($15Bn) Size of M
Slide 16: The Advantage of Experiential Real Estate
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx THE ADVANTAGE OF EXPERIENTIAL REAL ESTATE Consumer Spending on “Experiences” Has Greatly Outpaced “Things” During the Past 15 Years 2,000 5.3% 1,500 Shift in Spending 2.8% Behavior 1,000 2.3% Indexed PCE Performance PCE Inde
Slide 17: Capability & Governance
3Capability & Governance
Slide 18: Results Driven Management with Over $7Bn of Activity
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx RESULTS DRIVEN MANAGEMENT WITH OVER $7BN OF ACTIVITY VICI Has Accomplished More Since Emergence Than Many REITs Do in Their Entire History… DEBT CAPITAL EQUITY CAPITAL ACQUISITIONS / GROWTH ✓ Refinanced and Eliminated Purcha
Slide 19: Proven and Independent Management Team
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx 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-eq
Slide 20: Independent and Experienced Board of Directors
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx INDEPENDENT AND EXPERIENCED BOARD OF DIRECTORS ✓ N O T E N A N T / D I R E C T O R O V E R L A P ✓ S E P A R A T I O N O F C H A I R M A N & C E O R O L E ✓ 0 % P A R E N T / T E N A N T C O M P A N Y O W N E R S H I P ✓ A N
Slide 21: Strong Corporate Governance Highlighted by Independence from Tenant
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx STRONG CORPORATE GOVERNANCE HIGHLIGHTED BY INDEPENDENCE FROM TENANT O v e r l a p p i n g P D i r e c t o r s w i t h Te n a n t 0 4 2 P a r e n t / Te n a n t P C o m p a n y 1 2 O w n e r s h i p 0% 75% 10% P I n d e p e n
Slide 22: Appendix
Appendix
Slide 23: High Quality Real Estate Anchored by Iconic Assets
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx HIGH QUALITY REAL ESTATE ANCHORED BY ICONIC ASSETS N. KANSAS CITY COUNCIL BLUFFS METROPOLIS HAMMOND /JOLIET PHILADELPHIA Harrah’s Harrah’s Horseshoe Harrah’s Horseshoe Harrah’s Harrah’s N. Kansas Council Council Metropolis H
Slide 24: Balance Sheet Positioned for Growth
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx BALANCE SHEET POSITIONED FOR GROWTH Capitalization Summary Disciplined Balance Sheet Management2 (Data as of June 30, 2018) Net Leverage Ratio progression $ and shares in millions 2Q’18 8.4x Revolving Credit Facility ($400 m
Slide 25: Master Lease Agreements: Triple Net Structure
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY Non-CPLV & Joliet (2 Leases)1 Caesars Palace Las Vegas2 Harrah’s Las Vegas Initial Rent $465 Million $165 Million $87 Million Annual >
Slide 26: Lease Modifications Provide Stability and Near Term Growth
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx LEASE MODIFICATIONS PROVIDE STABILITY AND NEAR TERM GROWTH Lease Modifications Entered Into With Caesars In Connection With Octavius Tower and Pending Harrah’s Philadelphia1 Acquisitions Provide Long-Term Stability Anticipat
Slide 27: Reconciliation from GAAP to Non-GAAP Financial Measures
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA, and Net Debt to Adjusted EBITDA less incremental G&A for the periods presented. At Formation
Slide 28: Calculation of Historical Corporate Level Rent Coverage of Caesars
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES: CALCULATION OF HISTORICAL CORPORATE LEVEL RENT COVERAGE OF CAESARS 1 2 Caesars Year Ended CEOC Year Ended ($ in millions) December 31, 20153 December 31, 20153 Net inc
Slide 29: Calculation of Historical Corporate Level Rent Coverage of Caesars (Cont'd)
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES: CALCULATION OF HISTORICAL CORPORATE LEVEL RENT COVERAGE OF CAESARS (CONT’D) Caesars adopted ASU 2014-09 effective January 1, 2018, using the full retrospective method,
Slide 30: Definitions of Non-GAAP Financial Measures
hetcs\Discussion Materials\2017-09 VICI Refi RFP\07. RAP\VICI RAP v126.pptx 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
Slide 31: Slide 31
VICI Properties — Investor Presentation (September 2018) on 6ix