Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (May 2020)
28 slides from Vici Properties's investor presentation, May 4, 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) 4 New Tenants 29 17 Since Formation 83% 6% Properties Markets $200mm+ Non-CZR Rent Acquired 5% 3% 2% Percentages reflect % of total initial base rent(2). 17k+ 1.9mm+ Acquisition Volume Equity Raised Rent Acquired Hotel Rooms Casino Sq. Ft. ~$7.6bn ~$5.9bn ~$600mm
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 ✓ In-Place Corporate Rent Acquisition Coverage Opportunities ✓ Potential & Credibility for Substantial Non-Gaming Growth ✓ $21.5bn of Activity Since Emergence(1) ✓ Fully Int
Slide 6: Portfolio Income: Character & Quality
1Portfolio Income: Character & Quality 6
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 32.9 Years Entertainment Controls Regi
Slide 8: Income Foundation: Strength of Our Tenants - Eldorado/Caesars
INCOME FOUNDATION: STRENGTH OF OUR TENANTS COMBINED ELDORADO/CAESARS(1) Leading U.S. Gaming Operator Pro Forma Geographic Exposure and Asset Mix Eldorado Caesars ~60 ~300 ~51,000 Properties F&B Outlets Hotel Rooms ~4mm ~4,000 ~71,000 Gaming Sq. Ft. Table Games Slot Machines ✓ New Entrepreneurial Vig
Slide 9: Income Foundation: Strength of Our Tenants - Penn, Hard Rock, Century, JACK
INCOME FOUNDATION: STRENGTH OF OUR TENANTS PENN, HARD ROCK, CENTURY CASINOS & JACK ENTERTAINMENT Penn National Gaming Hard Rock has developed a Century Casinos (NASDAQ: CNTY) JACK Entertainment is a regional (NASDAQ: PENN) is the largest leading global presence as one is an international gaming gami
Slide 10: 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 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
Slide 11: 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 • The Shops at Crystals sold in 2016 at a 4.5% cap rate • 250.0 Town Square Las Vegas sold in 2017 at a 5.3% cap rate Bellagio • The Grand Canal
Slide 12: Growth Opportunities
2Growth Opportunities
Slide 13: Substantial Embedded Rent Growth
SUBSTANTIAL EMBEDDED RENT GROWTH Identified Acquisition Pipeline Provides Significant Rent Growth ($ in millions) Subject to the Closing of the Subject to the Closing of the Eldorado/Caesars Eldorado/Caesars Combination and Combination Eldorado/Caesars Portfolio Strategy $253 $1,263 $1,010 CPLV and
Slide 14: 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 has a Put/Call Option on 18 The Mirage The Palazzo acres for the Caesars Forum Convention Center The Venetian MSG Sphere Caesars Harrah’s Caesars-owned 41 acres Pa
Slide 15: 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 • Strong CRM capability, enabling cost-effect
Slide 16: Capability & Governance
3Capability & Governance
Slide 17: 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 18: 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 B
Slide 19: Strong Corporate Governance Highlighted by Independence from Tenants
STRONG CORPORATE GOVERNANCE HIGHLIGHTED BY INDEPENDENCE FROM TENANTS Overlapping Directors with P P T e n a n t M a n a g e m e n t 0 2 of 7 0 Management P P Representation on B o a r d Yes No Yes Parent / Tenant P C o m p a n y O w n e r s h i p 0% 64%(1) 5%(2) Independent P C h a i r m a n Yes No
Slide 20: Appendix
Appendix
Slide 21: High Quality Real Estate Anchored by Iconic Assets
HIGH QUALITY REAL ESTATE ANCHORED BY ICONIC ASSETS Caesars Palace Las Vegas Harrah’s Lake Tahoe Detroit Lake Tahoe / Reno Joliet / Hammond Cleveland Council Bluffs Philadelphia Cincinnati Atlantic City Las Vegas North Kansas City Louisville Metropolis Caesars Laughlin Caesars Tunica Resorts / Robins
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% 16% 18% 100% 22% 22% 70% 18% 21% 58% 24% 49% 35% 26% 24% 21% 18% 10/6/2017 3/31/2018 6/30/2018 9/30/2018
Slide 23: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH Capitalization Summary Well-Laddered Maturity Schedule ($ and shares in millions) As of 3/31/2020 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: Master Lease Agreements: Triple Net Structure
MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY Non-CPLV & Joliet Regional Master Lease & Caesars Palace Las Vegas Harrah’s Las Vegas(2) (2 Leases)(1)(2) Joliet Lease(3) Las Vegas(2) Master Lease(3) Properties 18 Non-CPLV Properties & 18 Non-CPLV Properties,
Slide 25: Master Lease Agreements (Cont'd)
MASTER LEASE AGREEMENTS: TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY (CONT’D) JACK Cleveland/Thistledown Margaritaville Bossier City Greektown Hard Rock Cincinnati Century Master Lease Master Lease Current Annual $23.5 Million $55.6 Million $42.8 Million $25.0 Million $65.9 Mill
Slide 26: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES The following table reconciles net income to FFO, AFFO and Adjusted EBITDA. Three Months Ended Twelve Months Ended ($ in millions) March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2020 Net (loss) income attributable t
Slide 27: 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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