Vici Properties Inc. · NYSE:VICI
Vici Properties — Merger or Acquisition (November 2018)
8 slides from Vici Properties's merger presentation, Nov 14, 2018
Slide 1: Greektown Casino-Hotel Transaction Overview
GREEKTOWN CASINO-HOTEL TRANSACTION OVERVIEW NOVEMBER 14, 2018
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 the use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and sim
Slide 3: Greektown Casino-Hotel: Acquisition Strategic Rationale
GREEKTOWN CASINO-HOTEL: ACQUISITION STRATEGIC RATIONALE ✓ High quality urban asset with significant capital investments in recent years ✓ Potential upside from embedded organic growth opportunities Key Asset Strong Asset and diversified national operator Well-Positioned for Growth ✓ Located in downt
Slide 4: Greektown Casino-Hotel: Transaction Overview
GREEKTOWN CASINO-HOTEL: TRANSACTION OVERVIEW Greektown Acquisition Penn National Partnership Real Estate Purchase Price $700.0 million Certain subsidiaries of Tenant Penn National LTM 9/30/2018 EBITDAM1 $96.6 million Guarantor Penn National Initial term of 15 years; Pre-Synergy Rent Coverage1 1.7x T
Slide 5: Urban Asset with Growth Potential
GREEKTOWN CASINO-HOTEL: URBAN ASSET WITH GROWTH POTENTIAL Property Overview Greektown Casino-Hotel 1• Opened in November 2000 in downtown Detroit’s historic entertainment district ~100,000 Sq. ft. of 2• $134 million of capital invested since 2014 gaming floor 3• Full-service casino, hotel and entert
Slide 6: Detroit: Stable Market with Room for Growth
DETROIT: STABLE MARKET WITH ROOM FOR GROWTH Detroit Market Highlights Stable Detroit GGR Through Market Cycles ✓ Limited competition with no additional commercial casinos ($ in billions) permitted¹ Detroit GGR Remains Consistent Through Economic ✓ The Central Business District offers many nearby att
Slide 7: Lease Agreement Structure
GREEKTOWN CASINO-HOTEL: LEASE AGREEMENT STRUCTURE Greektown Rent Structure Other Key Terms Year 1 Annual ◼ Penn National will provide a parent Components of Rent Escalators and Resets guarantee Rent ($mm) ◼ Set at 2% of LTM net revenues1 ◼ Lease will be triple-net with initial Land Base Rent $6.4 15
Slide 8: Reconciliation from GAAP to Non-GAAP Financial Measures
RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES CALCULATION OF GREEKTOWN ADJUSTED EBITDAM Twelve Months Ended ($ in millions) September 30, 2018 Net Income $17.5 Interest Expense, Net of Interest Capitalized 20.5 Amortization of Finance Fees and Accretion of Discount 0.4 Management Fees 10.2
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