VICI Properties revenue rises 11.3% in Q1 2022 ahead of major acquisitions

| By Marese O'Hagan
Real estate investment trust VICI Properties has reported revenue of $416.6m (£332m/€393m) in Q1 2022, the final quarter before it it completed the acquisitions of MGM Growth Properties and the property of The Venetian Resort.

This was up by 11.3% from Q1 2021, when revenue was $374.3m.

Much of the revenue comprised of income from sales-type leases, which amounted to $326.7m- up by 12.6% year-on-year. Ceasars’ regional master lease, along with its Joliet lease, made up more than one third of this alone, totaling at $122.7m. Caesars’ Las Vegas master lease contributed the second-most contractual revenue, at $105.5m. The Venetian Resort’s Las Vegas lease contributed $25.8m.

Income from non-cash adjustments was $28.8m.

The remaining $44.2m was made up of the Margaritaville, Greektown, Hard Rock, Century and EBCI leases.

Income from lease financing receivables and loans totaled at $72.8m, a rise of 3.5%. Golf revenues were $8.6m, increasing by 26.6% while other revenues rose by 20.8% to $8.3m.

Operating expenses amounted to $105.4m, up by 327.1% year-on-year. Operating expenses in Q1 2021 – which came to $24.6m – were affected by the Covid-19 pandemic.

A majority of the total expenses came from generated by the change in allowance for credit losses, which amounted to $80.8m, up by $85.2m year-on-year.

General and administrative expenses were $9.4m, up by 17%. Other expenses amounted to $8.3m, up by 20.2%, while golf expenses rose by 17.2% to $5.2m.

Depreciation costs were $776,000, down by 2%. Transaction and acquisition expenses fell dramatically, coming to $755,000 for the quarter- a decrease of 91.3%.

After interest expenses of $68.1m, and interest income of $93,000, the total income before income taxes totaled at $243m, a decrease of 10.8% year-on-year.

Income tax expense of $400,000 brought the total net income for the period to $242.6m. This was a yearly decrease of 10.8%.

VICI completed two major acquisitions after the end of Q1. This included closing its acquisition of the Venetian Resort Las Vegas for $4bn, and MGM Growth Properties Inc for $17.2bn.

“At VICI, we made 2021 a year of initiating transformation through $21 billion of transaction announcements and $5.4 billion of related equity raising,” said Edward Pitoniak, CEO of Vici Properties. “We have made the beginning of 2022 a period in which we’ve completed this transformation through the final financing and closing of these transactions.”

“In February, we closed on our $4bn/6.25% cap rate acquisition of The Venetian Las Vegas, one of the largest and most dynamic real estate assets in the world. Last week, we announced the closing of our $17.2bn strategic acquisition of MGM Growth Properties, through which we added 15 class-A real estate assets to our portfolio and created a new partnership with MGM Resorts, one of the world’s foremost leisure and entertainment companies.”

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