Vici Properties celebrated “exceptional financial results” for the second quarter of the year, with the real estate investment trust announcing that June preceded May’s lead with 100 percent rent payment collection.
Publishing the update in the latest financial report, the company’s sales rose 16.8 percent to $257.9 m (2019: $220.7 m) with operating profit hitting $308.6 m, reflecting a 50.1 percent growth of $205.4 m.
For six months to June 30, Vici posted revenue of $512.9 m, 17.9 percent up from $434.7 m and operating profit fell 2.6 percentfrom $407.3 m to $396.6 m.
Vici’s US portfolio consists of 31 casino facilities licenced to a range of casino and hospitality companies including Caesars Entertainment Corporation, Century Casinos, Hard Rock International, Jack Entertainment and Penn National Gaming. The group also owns four golf courses and 34 acres of undeveloped land adjacent to Las Vegas Strip
Edward Pitoniak, Vici ‘s CEO, explained: “In the second quarter of 2020, we posted exceptional financial results with adjusted EBITDA growth of over 20 per cent per cent year-over-year. We worked closely and collaboratively with our tenant partners to provide flexible short-term solutions during unprecedented uncertainty while, we believe, preserving and, ultimately, enhancing long-term stockholder value.
“During the second quarter, and in July, we collected 100 per cent of our rent, proving the strength and resilience of our business model. We announced $503.5m of acquisition and investment activity, including the planned purchase of highly strategic land parcels adjacent to the Las Vegas Strip, which we believe provide Vici the opportunity to continue our industry-leading growth for years to come.
“We also continued to fortify our balance sheet by accessing the equity capital markets, raising an aggregate $662.3m of gross proceeds through a forward sale agreement. While we are extremely encouraged by early re-opening data across the gaming industry, we will continue to monitor the landscape during this uncertain time and manage our portfolio and relationships to preserve long-term value.”
Earlier this month, in events after the fifth, Vici completed a trio of property acquisitions and made lease improvements, buying £253 m on annual rent, in conjunction with the long awaited completion of the Eldorado and Caesars merger.
As previously announced in a ‘Master Deal Agreement’ on 24 June 2019 with Caesars in conjunction with the Eldorado purchase, Vici has received $3.2bn in cash from Harrah’s New Orleans, Laughlin, and Atlantic City land and real estate properties.