Vici Properties Informs Tenants May Enter Lease Mods

Vici Properties remains in in-depth discussion with all tenants regarding COVID-19 action response plans, as the real estate investment trust maintains that no updates to the guidelines for 2020 will be provided at this time.

With no lease changes or other concessions agreed with its partners, Vici claims that if the current economic climate persists, it can ultimately support tenants in the short term “in ways we believe the company will benefit in the long term.”

Vici has also received an update on the Eldorado Resorts and Caesars Entertainment merger as state governments and regulatory authorities extend required closures for an as yet unspecified period.

With all the equity and debt financing required to close its own portion of the transaction secured, Eldorado is said to continue to seek the regulatory approvals required to conclude the contract.

Providing the updates to its financial statements for the first quarter of 2020, Vici saw sales hit $255 m over the era, which marks a 19.2% rise from the $214 m of the previous year.

Operating profit dropped 56.4% from $201.8 m to $88 m, net loss hit $22 m from $152.9 m and adjusted EBITDA rose 22.9% to $244.7 m (2019: $199 m).

Vici CEO Edward Pitoniak explained: “In the first quarter of 2020, we continued to build a best-in-class REIT by building a constantly-improving balance sheet. We accessed the unsecured debt markets by issuing $2.5bn of senior unsecured notes at a blended and weighted average interest rate of 3.8 per cent and we used $500m of those proceeds to redeem the final portion of our emergence debt: our 8 per cent second lien notes.

“Our debt raising activities in February 2020 and November 2019 significantly extended and smoothed out our debt maturity ladder, with no maturities until 2024. We accessed the equity capital markets by selling 7.5 million shares under our ATM program, yielding us $200m of net cash proceeds.

“With the outbreak of the ongoing COVID-19 pandemic, we retain a strong liquidity position with over $300m of unrestricted cash on our balance sheet and full access to our undrawn $1bn revolver. The COVID-19 pandemic has resulted in significant uncertainty for our tenants and we are communicating and working closely with our tenants to monitor and manage our responses to various scenarios for reopening and restoration of business.

“As we manage our portfolio and relationships through the current crisis, we are intensely focused on preserving long-term stockholder value through our independence, proven access to capital and our partnership approach.”