Vici Properties: Q3 success reflects ‘commitment to capital deployment’

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Expansions into new experiential sectors and “strategic financing activity” were cited as contributors to Vici Properties “accretive growth” in Q3 2023, having revealed a 20.3 per cent uptick in total revenues. 

Publishing its quarterly financial results for the three-month period ending September 30, 2023, the NYC-based REIT’s total revenues increased to $904.3m (2022: $751.5m), while net income attributable to common stockholders rose 68 per cent to $556.3m (2022: $330.9m). 

Coinciding with this growth, AFFO attributable to common stockholders reached $547.6m, an increase of 16 per cent when compared to Q3 2022’s $470.7m, alongside a per-share increase of 11 per cent to $0.54 (2022: $0.39). 

Commenting on the company’s robust performance, Edward Pitoniak, CEO of VICI Properties, said: “Vici’s third quarter financial performance reflects our sustained, sustainable commitment to accretive growth and capital deployment through acquisitions and strategic financing activity, exemplified by approximately 20 per cent revenue growth and nearly 11 per cent growth in AFFO per share year-over-year.” 

Through the quarter, Vici closed its move to acquire the Rocky Gap Casino Resort from Century Casinos, as well as the real estate for Century’s four gaming properties in Alberta, Canada, securing further North American expansion for Vici. 

The firm’s performance was also supported by the decision to extend its partnership with Canyon Ranch, forming a preferred equity investment, a mortgage loan and call rights to acquire Canyon Ranch Tucson and Canyon Ranch Lenox

Pitoniak continued: “During the quarter, in addition to closing Rocky Gap and announcing the expansion of our Canyon Ranch growth partnership, we expanded our international presence through closing the acquisition of four casino properties in Alberta, Canada with our existing tenant and partner, Century Casinos.”

Vici also spent the quarter focusing on new experiential sectors, having entered the family entertainment industry through the purchase of 38 bowling entertainment centres in a sale-leaseback transaction with Bowlero

“Subsequent to quarter end, we entered into a new experiential sector with Bowlero, the market leader in reinvigorating the programming and economics of the bowling experience through their innovative consolidation and growth model,” Pitoniak added. 

“In this partnership, we acquired 38 Bowlero properties and concurrently bolstered our embedded growth pipeline by obtaining a right of first offer to acquire current or future Bowlero real estate in the coming years through sale-leaseback transactions.

“We also expanded our presence in 11 new states and added another publicly traded tenant to our roster. VICI’s differentiation stems from our commitment to partnering with operators who define their respective experiential categories, as Bowlero has done with the bowling experience.”

Other statistics highlighted by Vici Properties included a quarterly cash dividend of $0.415 per share, representing a six per cent increase compared to Q3 2022. The company ended the quarter with $510.9m in cash and cash equivalents and $807.2m of estimated available forward sale equity proceeds. 

Witnessing a strong performance for the period, Vici Properties updated its full-year AFFO guidance, expecting it to fall between $2.170bn and $2.180bn.