New York based real estate investment trust Vici Properties celebrated the growth of its portfolio in 2019 as the company looks forward to further expansion throughout the year.
The new properties to join the company’s stable came after Vici acquired the land and real estate assets from Century Casino Cape Girardeau and Century Casino Caruthersville in Missouri, as well as from Eldorado Resorts ‘ Mountaineer Casino, Racetrack and Resort in West Virginia for an aggregate purchase price of around $277.8 million in cash.
Total revenue for the quarter increased slightly more than five cents from $226 million to $237.5 million, including $19.9 million associated with tenant reimbursement of property taxes that are no longer reported as income. Excluding this, revenue rose 15.2 percent for the year.
Income dropped slightly from $898 m to $894.8 m on a full-year basis, including $81.2 m associated with tenant reimbursement of property taxes, without which a 9.6% rise would have been felt.
Vici CEO Edward Pitoniak has explained: “In 2019, through the great work of our team and through the unstinting support of our stockholders, Vici continued to transform itself and its sector. We announced $4.9bn of acquisitions, representing all arms-length gaming net-lease transactions among publicly-traded companies, and we raised $2.6bn of equity, including the largest-ever REIT follow-on offering of primary shares.
“Vici completed its inaugural unsecured notes issuance in November 2019, enhancing our balance sheet and laddering our maturities while replacing the Caesars Palace CMBS secured debt with unsecured debt, marking a key step on our path to an investment grade rating.
“We increased adjusted EBITDA by over 17 per cent, or $124m, to $847m, yielding 100 per cent flow-through on our 2019 adjusted revenue growth of approximately $124m. We also raised our dividend for the second consecutive year, maintained a solid, low-levered balance sheet and doubled our roster of best-in-class gaming operators by adding Hard Rock International and Century Casinos as tenants.
“Our 2019 total return performance of 43.2 per cent puts VICI in the top position amongst gaming net lease REITs and top three amongst all triple net lease REITs for 2019 total return. We increased our total enterprise value by over 45 per cent, to $15.5bn on December 31, 2019, meaning that in just over two years we have become the third largest American triple net REIT by enterprise value.”
At the end of the reporting period, Vici approved its previously announced acquisition of $843.3 m for Jack Entertainment that sees the company purchasing two Ohio-based entities.
The company has acquired 100 percent of the membership interest of Jack Ohio’s two subsidiaries, which operates Jack Cleveland Casino’s casino-entitled land and real estate and related properties, and Jack Thistledown Racino’s racing and video lottery-entitled land and real estate and related assets, located about 10 miles southeast of downtown Cleveland in North Randal.