Slide 1: Transaction Overview: Octavius Tower, Harrah's Philadelphia, and Lease Modifications
TRANSACTION OVERVIEW: OCTAVIUS TOWER, HARRAH’S PHILADELPHIA, AND LEASE MODIFICATIONS MAY 9, 2018 INVEST IN THE EXPERIENCE VICI
Slide 2: Disclaimers
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, expectations and projections about future events and are not guarantees of future perfo
Slide 3: Disclaimers (Continued)
DISCLAIMERS (CONTINUED) Non-GAAP Financial Measures This presentation includes reference to Funds From Operations (“FFO”), Adjusted Funds From Operations (“AFFO”) and Adjusted EBITDA, which are not required by, or presented in accordance with, generally accepted accounting principles in the United S
Slide 4: Acquisition Highlights and Rationale
ACQUISITION HIGHLIGHTS AND RATIONALE $56MM of incremental NOI on a net purchase L L Meaningfully price of $590MM A R Accretive 9.5% net capitalization rate delivers meaningful E V to AFFO Per Share accretion O Funded with cash on balance sheet Octavius Tower at Caesars Palace - 668 hotel rooms Enhan
Slide 5: Transaction Financial Overview
TRANSACTION FINANCIAL OVERVIEW $MM Rent Multiple Value Conditions Precedent Octavius Tower at 35 14.5x / 6.9% 508 Caesars cap rate Palace Harrah’s Philadelphia 21 11.5x / 8.7% 242 Subject to Pennsylvania Casino & cap rate regulatory approvals Racetrack Subtotal $56 13.4x $749(1) CPLV & Non- CPLV Lea
Slide 6: Transaction Pro Forma Portfolio
TRANSACTION PRO FORMA PORTFOLIO Harrah’s Reno Harrah’s Horseshoe Harrah’s Harrah’s Horseshoe Harrah’s Council Bluffs Council Bluffs N. Kansas City Metropolis Hammond Joliet Harrah’s Philadelphia Harvey’s Lake Tahoe Bally’s Atlantic City Harrah’s Lake Tahoe Hammond / Joliet Philadelphia Caesars Atlan
Slide 7: Caesars Palace Octavius Tower
CAESARS PALACE OCTAVIUS TOWER Acquisition of Irreplaceable Las Vegas Real Estate Augus Palace Octavius Forum 668 23 Nobu Julius Colosseum Guestrooms Stories 40 / 26 1.2MM Suites / Sq. Ft. Premium Villas Caesars Palace Las Vegas Standalone hotel tower within Asset CPLV Increases Las Vegas center Rent
Slide 8: Harrah's Philadelphia
HARRAH’S PHILADELPHIA Bolsters East Coast Footprint and Entering 7th Largest Gaming Market 2,448 110 Slots Tables 112.6k 2.0MM Sq. Ft. of Sq. Ft. gaming 2,600 Space Covered Garage • Casino and racetrack located Asset in Chester, PA Increases Philadelphia exposure – 7th largest gaming market Rental I
Slide 9: Strong Philadelphia Market Fundamentals
STRONG PHILADELPHIA MARKET FUNDAMENTALS Philadelphia Gaming Revenue(1) $MM 1,300 4% 4% 4% 1,236 1,245 3% 1,250 2% 1,192 1,200 1% 1% 1,149 1,150 0% 1,100 (1%) 1,050 (2%) 2014 2015 2016 2017 Philadelphia Gaming Revenue YoY Growth Top U.S. Casino / Racino MSAs(1) Market 2017 Gaming Revenue ($MM) 1 LV S
Slide 10: Master Lease Modifications
MASTER LEASE MODIFIATIONS Anticipated Term Strategic Rationale Non-CPLV Master Lease Annual • 1.5% rent escalators beginning in year 2 Annual escalators enhance VICI’s current same store growth profile Escalators • Variable rent resets in years 8 and 11 adjusted to Previous magnitude of the rent res