Vici Properties Inc. · NYSE:VICI
Vici Properties — Merger or Acquisition (June 2018)
13 slides from Vici Properties's merger presentation, Jun 19, 2018
Slide 1: Margaritaville Resort Casino Transaction Overview
Margaritaville Resort Casino transaction OVERVIEW June 19, 2018 Exhibit 99.2
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and sim
Slide 3: Premier Property in Attractive Market
Premier Property in Attractive Market Only new property to open in the Bossier City / Shreveport market in over a decade #2 performing property in the market by gross gaming revenue (“GGR”)2 Steady market fundamentals with GGR of $679 million in 2017 Complements VICI existing footprint of the #1 (Ho
Slide 4: Transaction overview – Tenant Diversification
Transaction overview – Tenant Diversification PropCo Multiple Implied PropCo Cap Rate 11.27x 8.9% LTM Adj. EBITDARM1 $44 million 1.9x $23.2 million Tenant Subsidiary of Penn National Gaming Escalator Summary Building component up to 2% annually; Land component is fixed; Variable component based on p
Slide 5: Margaritaville Resort Casino – Premier Venue for Overall Casino Experience
#2 performing property in the market based on gross gaming revenues2 Option to purchase 30 acres of adjacent land currently leased from Bossier City and primarily used for parking for $2.8 million (~$92K per acre) until December 31, 2018 MARGARITAVILLE Resort Casino – PREMIER VENUE FOR OVERALL CASIN
Slide 6: Bossier City Market Fundamentals Are Resilient
BOSSIER CITY MARKET FUNDAMENTALS are resilient STEADILY GROWING SHARE OF MARKET IN NORTHERN LOUISIANA Market Highlights Bossier City / Shreveport GGR ~4 hours and ~3 hours driving distance from Houston and Dallas, respectively, and within 1 hour direct flight from either city Stable economic environ
Slide 7: Bossier City / Shreveport Competitive Landscape
BOSSIER CITY / Shreveport competitive landscape Source: Company filings and websites, Louisiana Gaming Control Board, Louisiana State Police As of September 30, 2017. As of March 31, 2018, per Louisiana Gaming Control Board. Harrah’s Louisiana Downs is a racino and not permitted to offer table games
Slide 8: Tenant Overview – Penn National
Penn National Gaming, Inc. (NASDAQ: PENN) owns, operates, or has ownership interests in gaming and racing facilities across the U.S. and Canada with a focus on casino entertainment Largest US regional gaming operator with 40 properties in 18 jurisdictions2 53,500 slots, 1,300 tables, 8,300 rooms, an
Slide 9: Lease Agreement Structure
Lease agreement structure Corporate Rent Coverage Ratio expected to be [13.X]x2 Components of Rent Annual Rent ($mm) Escalators and Resets Land Base Rent $3.0 Set at 2% of LTM net revenues Fixed for the entire duration of the lease term Building Base Rent $17.2 Subject to annual escalator of up to 2
Slide 10: Appendix
Appendix
Slide 11: Reconciliation from GAAP to Non-GAAP Financial Measures: Penn National Adjusted EBITDA
Corporate Rent Coverage Ratio expected to be [13.X]x2 Reconciliation from GAAP to non-gaap FINANCIAL measures: CALCULATION of HISTORICAL Adjusted EBITDA of Penn National Penn National Gaming Year Ended December 31, ($ in millions) 2013 2014 2015 2016 2017 Net income/(loss) $(581.3) $(183.8) $0.7 $10
Slide 12: Reconciliation from GAAP to Non-GAAP Financial Measures: Margaritaville EBITDARM
Source: Bossier Casino Venture, Inc. Payment of $1,000,000 annual fee began in April 2018. Corporate Rent Coverage Ratio expected to be [13.X]x2 Margaritaville Resort Casino Twelve Months Ended March 31, 2018 ($ in millions) Net income/(loss) $21.2 Interest expense, net 5.9 Loss on early extinguishm
Slide 13: Margaritaville – Premier Property Addition
Corporate Rent Coverage Ratio expected to be [13.X]x2 Margaritaville – Premier Property Addition