VICI reports 35% revenue hike in Q2, driven by “accretive acquisitions” and strategic financings

Industry

Casino landlord VICI Properties has reported 35.5% revenue growth in the second quarter of the year, reaching $898.2 million. The real estate investment trust said the quarter’s results and current liquidity enable it to continue its pursuit “of attractive domestic and international growth opportunities across the experiential landscape.”

Net income attributable to common stockholders increased year-over-year to $690.7 million in Q2, up from a loss of $57.7 million the same period last year; while AFFO hiked by 25.7% on a yearly basis to $540.4 million and, on a per share basis, increased 11.9% to $0.54. The successful quarter helped bring H1 revenue to $1.7 billion, up 65.4% from H1 2022.

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

We also ended the quarter with ample liquidity, including $739 million in cash and cash equivalents, $868 million of estimated equity proceeds available upon settlement of forward sale agreements, and $2.4 billion of availability under the Revolving Credit Facility.”

Revenue mostly consisted of income from sales-type leases, amounting to $495.3 million; while income from lease financing receivables, loans and other securities was $373.1 million. For its part, other income totalled $18.5 million, while golf revenues amounted to $11.1 million.

VICI targets further expansion

The quarter saw VICI expand in Canada by announcing the acquisition of the real estate of Century Casinos’ four gaming properties in Alberta – Century Casino & Hotel Edmonton, Century Casino St. Albert and Century Mile Racetrack and Casino, each in Edmonton; and Century Downs Racetrack and Casino in Calgary – for C$221.7 million ($164.7 million) in cash.

Century Casino Calgary

Subsequent to the quarter’s end, just earlier this week, the trust also extended its position in its home market by closing the previously announced acquisition with Century of Rocky Gap Casino Resort, in Maryland. VICI paid $203.9 million in cash, while Century acquired the operating assets of Rocky Gap for $56.1 million.

However, Q2’s report came with another update. “We are excited to announce that subsequent to quarter end, we broadened and deepened our relationship with Canyon Ranch through the establishment of our VICI-Canyon Ranch Growth Partnership, a multi-faceted investment relationship,” added Pitoniak.

The initiative includes VICI investing up to $150 million in preferred equity into the controlling entity of Canyon Ranch, a provider of holistic, integrative health and wellness guest experiences. VICI calls it “an investment that will contribute to enabling the Canyon Ranch operating platform to resource the growth of the Canyon Ranch resort network and other brand extensions.”

Additionally, the investment is set to further enhance the company’s embedded growth pipeline with call rights on Canyon Ranch Tucson and Canyon Ranch Lenox, as well as solidify “the partnership as the capital partner for Canyon Ranch as they look to expand their wellness resort ecosystem.”

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