Vici Properties Inc. · NYSE:VICI
Vici Properties — Investor Presentation (August 2018)
31 slides from Vici Properties's investor presentation, Aug 20, 2018
Slide 1: Investor Presentation
INVESTOR Presentation Exhibit 99.1
Slide 2: Forward Looking Statements
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 performance. Thes
Slide 3: Caesars Information, Market Data and Non-GAAP Measures
Caesars Information The Company makes no representation as to the accuracy or completeness of the information regarding Caesars included in this presentation. The historical audited and unaudited financial statements of Caesars, as the parent and guarantor of CEOC, the Company's significant lessee,
Slide 4: Certain Non-GAAP Financial Measures of Caesars and CEOC
Certain Non-GAAP Financial Measures of Caesars and CEOC In this presentation, we include Adjusted EBITDA of Caesars (which is the guarantor of the lease payment obligations under the Formation Lease Agreements) and CEOC (subsidiaries of which are tenants under the Formation Lease Agreements) and Adj
Slide 5: Who We Are
1 WHO WE ARE
Slide 6: Mission and Vision
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 experiences We seek to lease properties to tenants with market-leading
Slide 7: Our Four Key Pillars of Value
Our four key pillars of value Gaming Markets LV Reno/Tahoe AC Chicagoland Bossier City KC Tunica Council Bluffs Metropolis Gulf Coast Louisville TBU: Price update VICI Market cap, Caesars market cap Portfolio Quality and Diversity 20 Market-Leading Gaming Facilities and 4 Golf Courses Across: 9 Stat
Slide 8: The Advantage of Experiential Real Estate
Experiences Things Experiences Things Source: Evercore ISI Equity Research. Represents the comparison of 166 Companies that sell “things”, including retailers (online such as Amazon and in-store), manufacturers of consumer staples and durables as well as consumer discretionary items (such as Apple)
Slide 9: Fundamental Advantages of our Experiential and Gaming Real Estate Portfolio
2 Diversified Revenue Streams from Gaming, F&B, Retail and Entertainment 7 Lack of Near Term Supply Growth in Highly Desirable Las Vegas Market 6 Transparent Growth Pipeline 1 Triple Net REIT with 100% Occupancy 5 Tenant Financial Transparency & Strength 3 High Barriers to Entry Given Legislative &
Slide 10: Investment Highlights
INVESTMENT HIGHLIGHTS 2
Slide 11: Key Investment Highlights
Key Investment highlights Geographically Diverse Revenue Sources Supported by Well-Structured Leases Stable Cash Flows 3 Parent Guarantee From a Leading Global Operator with Industry-Leading Brands1 Leading Tenant 2 Experiential Real Estate Diversification Across Markets and MSAs Diverse, High Quali
Slide 12: High Quality Real Estate Anchored by Iconic Assets
High quality real estate anchored by iconic assets 1 « Current Portfolio OT closed and PSA Signed on 7/11 AGMT TO AcqUiRE SIGNED ON 6/18 North Kansas City Tunica Resorts / Robinsonville Bossier City Las Vegas Lake Tahoe / Reno / Stateline Council Bluffs Hammond /Joliet Metropolis Elizabeth Paducah N
Slide 13: Caesars Palace: Iconic Asset in Prime Location on Las Vegas Strip
Caesars palace: iconic asset in PRIME location on las Vegas strip Over 27,000 daily visitors Home to The Forum Shops, a 680,000 sq. ft. shopping mall and 4th largest grossing retail shopping mall per sq. ft. Located on ~86 acres of land at the heart of the Las Vegas Strip 3,970 hotel rooms across 6
Slide 14: Caesars Entertainment: Leading Operator as Tenant
Caesars Entertainment: Leading operator as tenant Source: Caesars public filings, Caesars Form 10-K for the year ended December 31, 2017 and Form 10-Q for the quarter ended June 30, 2018 See Appendix to this presentation for additional information, including the definition and reconciliation to the
Slide 15: Broad Array of Tenant Revenue Streams
Broad array of Tenant Revenue Streams VICI IS A REAL ESTATE COMPANY FOCUSED ON OWNING EXPERIENTIAL PROPERTIES IN DYNAMIC MARKETS WHERE HOSPITALITY, GAMING, ENTERTAINMENT, AND LEISURE INTERSECT Per HLV bifold Per HLV bifold Per HLV bifold Had been 113 prior to HLV Adding Ruth’s Chris Toby Keith’s I l
Slide 16: Disciplined Capital Management
Disciplined Capital Management VICI Has Accomplished More Since Emergence Than Many REITs Do in Their Entire History… …And With a Defined, In-Place Growth Plan, We are Just Beginning 4 Refinanced and Retired a Substantial Amount of Debt, Greatly Reducing Interest Expense -- Leverage Reduced Dramatic
Slide 17: Balance Sheet Positioned for Growth
BALANCE SHEET POSITIONED FOR GROWTH (Data as of June 30, 2018) $ and shares in millions 2Q’18 Revolving Credit Facility ($400 million capacity) $0 Term Loan B Facility 2,100 Second Lien Notes 498 Total Non-CPLV 2,598 CPLV CMBS Debt 1,550 Total Debt 4,148 Cash (941) Net Debt $3,207 Total Common Share
Slide 18: Clear Path of Identifiable and Actionable Growth
Clear Path of Identifiable and Actionable Growth Broad Opportunities Across Identified and Other Experiential Real Estate Assets Clear Pipeline for Growth + Other Gaming Assets + other Leisure, Hospitality, and entertainment Assets The Company announced on July 12, 2018 that it completed the acquisi
Slide 19: Attractive Gaming Real Estate Valuation – Harrah's Las Vegas
NOI ($MM) Attractive Gaming Real Estate Valuation – Harrah’s Las Vegas Cap Rate (%) Source: Real Capital Analytics (RCA). Transaction was for a stake in the property; bubble represents the implied price of 100% interest. 5 Circle sizes represent relative asset value 1 1 1 1 1 1 2016 – 2017 Single-As
Slide 20: Organic Growth from Three Caesars Option Properties
Organic growth from three Caesars option properties http://investor.caesars.com/releasedetail.cfm?releaseid=932263 “ATLANTIC CITY, N.J., Sept. 18, 2015 /PRNewswire/ -- Caesars Entertainment Corporation officially opened on Thursday, September 17th its Waterfront Conference Center at Harrah's Resort
Slide 21: Right of First Refusal / Put-Call Assets Provide Incremental Acquisitions Pipeline
Right of first refusal / PUT-CALL assets provide Incremental built in Acquisitions pipeline On July 16, 2018 Caesars completed the acquisition of Centaur Holdings for $1.7bn (12.1x LTM EBITDA1) Centaur owns and operates two gaming assets Caesars is expected to build a $375mm center with ~300K sq.ft.
Slide 22: Additional Las Vegas Land Provides Opportunity for Further Growth
Caesars Palace Harrah’s Paris Planet Hollywood Venetian The Mirage Bellagio The Cosmopolitan Additional las vegas land provides opportunity for further growth 5 DEMONSTRATED ABILITY TO CAPITALIZE ON STRATEGIC OPPORTUNITIES & MONETIZE EXISTING ASSETS Caesars-owned 41 acres VICI has a Put-Call Rights
Slide 23: Multiple Avenues for Growth
Multiple Avenues For growth M&A Framework: Clear Acquisition Criteria Market Quality Asset Real Estate Quality Asset Income Quality Accretion Necessary Return Thresholds Core Portfolio Caesars Call Option Properties Caesars LV & non-LV Properties/Lands Acquisition & Development Partnerships with Cae
Slide 24: Proven and Independent Management Team
Proven and independent Management Team with expertise in real estate, gaming & hospitality BIOGRAPHY Previously served as the Vice Chairman of Realterm and currently serves as an independent director on the Board of Ritchie Brothers Served as Managing Director, Acting CEO and Trustee of InnVest, Can
Slide 25: Board of Directors
Elizabeth Holland AFFILIATIONS BIOGRAPHY CEO of Abbell Associates, LLC Currently serves as an independent director of Federal Realty Investment Trust Serves the Executive Board and the Board of Trustees of International Council of Shopping Centers Craig Macnab AFFILIATIONS BIOGRAPHY Held the positio
Slide 26: Appendix
3 Appendix
Slide 27: Gaming Revenues Resilient Through All Cycles
Gaming Revenues Resilient Through All Cycles Source: Haver Analytics, Goldman Sachs Global Investment Research, Published February 26, 2018. Refers to the Personal Consumption Expenditures as defined and reported by the U.S. Bureau of Economic Analysis. Peak-to-trough, casino gambling has held bette
Slide 28: Master Lease Agreements: Triple Net Structure
MASTER LEASE AGREEMENTS: triple net structure provides Security & EARNINGS Predictability Contemplated lease modifications, which are not reflected in the chart above, will modify annual escalators to start in year 2 and variable rent resets are reduced from 19.5% and 13% to 4% and based on a three‐
Slide 29: Reconciliation from GAAP to Non-GAAP Financial Measures
Reconciliation from GAAP to non-gaap FINANCIAL measures ($ in millions) At Formation1 – YE December 31, 2016 Post-HLV – YE December 31, 20171 Post-IPO – YE December 31, 20171 Three Months Ended June 30, 2018 Net Income $421 $583 $583 $139 Real Estate Depreciation – – – – FFO $421 $583 $583 $139 Dire
Slide 30: Caesars and CEOC Adjusted EBITDA Reconciliation
Caesars1 Year Ended CEOC2 Year Ended December 31, 20153 ($ in millions) December 31, 20153 Net income/(loss) $5,920 ($2,434) Net income/(loss) attributable to non-controlling interests 132 – Loss from discontinued operations, net of income taxes (155) 13 Income tax provision/(benefit) (119) (26) Dec
Slide 31: Caesars Property EBITDAR Reconciliation
Three Months Ended Twelve Months Ended June 30, 2018 Year-Ended December 31, March 31, June 30, March 31, June 30, ($ in millions) 2016 2017 2017 2017 2018 2018 Net income/(loss) attributable to company $(2,681) $9,842 $(403) $(1,291) $(34) $29 $11,531 Net income/(loss) attributable to non-controlli
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