Realty Income Corporation · NYSE:O
Realty Income — Merger or Acquisition (August 2023)
10 slides from Realty Income's merger presentation, Aug 25, 2023
Slide 1: Bellagio Las Vegas: $950 Million Cash Investment in an Iconic Asset
BELLAGIO LAS VEGAS $950 MILLION CASH INVESTMENT IN AN ICONIC ASSET EXPECTED TO CLOSE 4Q 2023 August 25, 2023
Slide 2: Safe Harbor For Forward-Looking Statements
Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. When used in th
Slide 3: Investment Thesis
Investment Thesis Bellagio Las Vegas ● Favorable risk-adjusted returns underpinned by attractive rent escalators and residual value, with potential to increase ownership interest over time. The Bellagio is subject to a triple net lease with approximately 26 years of remaining term, attractive annual
Slide 4: Size and Scale Supports Outsized Investments and Entry into New Verticals
Size and Scale Supports Outsized Investments and Entry into New Verticals REALTY INCOME ANTICIPATED INVESTMENT ● Ability to execute large investments is supported by size (amounts in millions) and scale. Realty Income’s investment in the Bellagio would Common Equity Investment ~$300(1) ~7.0%(2) repr
Slide 5: Transaction Overview: Trophy Asset with Undeniably Attractive Residual Value
Transaction Overview: Trophy Asset with Undeniably Attractive Residual Value LONG-TERM TRIPLE NET LEASE WITH FAVORABLE ORGANIC GROWTH AND CAPEX REQUIREMENTS Asset Valuation $5.1 billion(1) at 5.2% cap rate Lease Term 30-year initial term (26 years remaining) Next six years: 2.0% / Then greater of 2.
Slide 6: Property Highlights: An Iconic Asset on the Las Vegas Strip
Property Highlights: An Iconic Asset on the Las Vegas Strip Property-Level Attributes • 77 acres • 8.5 million total building square feet • 1,450 Ft of Strip frontage • 3,933 guestrooms and suites • 200,000 SF meeting and event space • 157,000 SF casino • 1,284+ slot machines • 151 gaming tables • 3
Slide 7: Enduring Destination in a Central Las Vegas Strip Location
Enduring Destination in a Central Las Vegas Strip Location THE STRIP IS POISED TO BENEFIT FROM GROWING DEMAND ~41mm ~5.7mm ~$1.3B ~$600mm Visitors (June 2023 TTM)(1) Group/Convention Estimated Las Vegas Strip Estimated Las Vegas Strip Revenue Visitors(1) Revenue Impact from Inaugural Impact from Sup
Slide 8: MGM Resorts International: Leading Balance Sheet and Liquidity Metrics
MGM Resorts International: Leading Balance Sheet and Liquidity Metrics MGM IS AN S&P 500 COMPANY AND LEADING GLOBAL ENTERTAINMENT OPERATOR >$40B $13.1B $5.5B $4.4B 31 enterprise 2022 revenue liquidity for the US 2022 US adjusted hotel and gaming value(1) segment(2) property EBITDAR destinations LAS
Slide 9: Las Vegas has Demonstrated Resiliency Through Cycles with Multiple Growth Drivers
Las Vegas has Demonstrated Resiliency Through Cycles with Multiple Growth Drivers STRUCTURAL TAILWINDS ARE ANTICIPATED TO SUPPORT CONTINUED GROWTH(1): With significant investments in modern entertainment and infrastructure, Las Vegas is Recent investments in entertainment venues include the $1.9bn A
Slide 10: Las Vegas Lodging Fundamentals Supported by Limited Supply Growth
Las Vegas Lodging Fundamentals Supported by Limited Supply Growth LIMITED PROJECTED ROOM SUPPLY SUPPORTS FUNDAMENTALS After absorbing elevated supply from 2008-2010, the Las Vegas market experienced significant decline in new construction activity to well below 2000-2010 levels(1) LAS VEGAS ROOM SUP