Vici Properties maintaining pursuit of US & international purchases

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Vici Properties is feeling the impact of a “consistent commitment to accretive acquisitions and strategic financings” after reflecting on the company’s performance through the second quarter of the year.

With a number of purchases having been detailed by the group, the real estate investment trust is eager to maintain a pursuit of “attractive” growth opportunities both in the US and on an international basis. 

Earlier in the week, Century Casinos and Vici finalised the joint purchase of Maryland’s Rocky Gap Casino Resort for a combined price of $260m.

This saw the former acquire the operations of the gaming property for approximately $56.1m, while the real estate investment trust has gained the land and buildings associated with the venue for $203.9m.

This followed the REIT disclosing a third international investment earlier in the year after entering into definitive agreements to purchase the real estate assets of a quartet of gaming establishments in a sale and leaseback arrangement.

This saw the company acquire Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino from Century for C$221.7m (US$164.7m) in cash.

The second quarter saw Vici Properties disclose revenue of $898.2m, up 35.5 per cent from $662.6m year-on-year, while net loss swung from $57.7m to an income of $690.7m through 2023.

“Approximately 80 per cent of the total allowance increase in Q2 2022 was driven by the CECL charge in relation to our entry into the MGM master lease in connection with the acquisition of MGM Growth Properties, which closed on April 29, 2022,” the company said.

Adjusted funds from operations was highlighted as increasing 25.7 per cent per cent to $540.4m (2022: $430.1m).

For the year-to-date, revenue increased 64.54 per cent to $1.77bn (2022: $1.07bn), net income surged to $1.2bn (2022: $182.67) and AFFO reached $1.06bn, up 45.33 per cent from the previous year’s $735.54m.

“Vici’s strong second quarter financial performance, exemplified by approximately 36 per cent revenue growth and nearly 12 per cent growth in AFFO per share year-over-year, reflects the impact of our consistent commitment to accretive acquisitions and strategic financings,” explained Edward Pitoniak, Chief Executive Officer of Vici Properties.

“We also ended the quarter with ample liquidity, including $739m in cash and cash equivalents, $868m of estimated equity proceeds available upon settlement of forward sale agreements, and $2.4bn of availability under the revolving credit facility. 

“The quarter’s results and current liquidity enable Vici to continue in our pursuit of attractive domestic and international growth opportunities across the experiential landscape.

“In the second quarter, we continued to expand our international presence through the announced acquisition of four casino properties in Alberta, Canada with our existing tenant and partner, Century Casinos. 

“Subsequent to quarter end, we also closed the previously announced acquisition with Century of Rocky Gap, proving the value of our enduring partnerships with growth-minded operators.”