VICI Properties Inc. (VICI) Bundle
A Brief History of VICI Properties Inc.
VICI Properties Inc. was established on October 6, 2017, focusing on real estate properties primarily related to the gaming, hospitality, and entertainment sectors. The company was formed as a spin-off from Caesars Entertainment Corporation.
Financial Performance Overview
As of September 30, 2024, VICI Properties reported a net income of $2.1 billion for the nine months ended, marking an increase from $1.8 billion in the same period in 2023. The company's Adjusted Funds From Operations (AFFO) attributable to common stockholders for the same period was approximately $1.77 billion, up from $1.61 billion year-over-year.
| Financial Metric | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Income | $2,097,037,000 | $1,794,901,000 |
| AFFO | $1,769,454,000 | $1,616,626,000 |
| Adjusted EBITDA | $2,319,118,000 | $2,160,122,000 |
Stock Performance and Shareholder Returns
As of September 30, 2024, VICI Properties had a weighted average number of shares outstanding of approximately 1.048 billion. The company declared dividends of $0.4150 per common share for the first two quarters of 2024 and $0.4325 for the third quarter. The total dividends declared for the nine months ended September 30, 2024, amounted to approximately $1.3 billion.
| Dividend Declaration Date | Dividend Amount | Payment Date |
|---|---|---|
| March 7, 2024 | $0.4150 | April 4, 2024 |
| June 7, 2024 | $0.4150 | July 3, 2024 |
| September 5, 2024 | $0.4325 | October 3, 2024 |
Debt and Liquidity Position
As of September 30, 2024, VICI Properties had total debt of approximately $17.1 billion, with a weighted average interest rate of 4.358%. The company also reported cash and cash equivalents of $355.7 million and available capacity under its revolving credit facility totaling $2.3 billion.
| Debt Maturity Year | Principal Amount | Interest Rate |
|---|---|---|
| 2024 | $1,050,000,000 | 5.625% |
| 2025 | $750,000,000 | 3.500% |
| 2026 | $500,000,000 | 4.500% |
Real Estate Portfolio and Investments
VICI Properties holds a diverse portfolio of over 40 properties, primarily leased to gaming operators. The total investment in leases as of September 30, 2024, was approximately $45.7 billion, with significant investments in sales-type and financing receivables.
| Investment Category | Amortized Cost | Allowance | Net Investment |
|---|---|---|---|
| Investments in leases - sales-type | $24,169,942,000 | ($740,210,000) | $23,429,732,000 |
| Investments in leases - financing receivables | $19,118,954,000 | ($708,849,000) | $18,410,105,000 |
| Investments in loans and securities | $1,572,447,000 | ($21,767,000) | $1,550,680,000 |
Market Trends and Future Outlook
As of late 2024, VICI Properties continues to benefit from the growing demand in the gaming and hospitality sectors, with strategic acquisitions and partnerships enhancing its market position. The company's focus on high-quality properties and long-term leases supports a strong revenue stream, positioning it well for future growth.
A Who Owns VICI Properties Inc. (VICI)
Ownership Structure
As of 2024, VICI Properties Inc. operates as a Real Estate Investment Trust (REIT) and has a complex ownership structure primarily involving its operating partnership, VICI Properties L.P. VICI Properties Inc. directly owns 100% of VICI Properties GP LLC, which is the sole general partner of VICI Properties L.P. VICI Properties L.P. holds the majority of VICI's assets and is integral to its operations.
Major Shareholders
The ownership of VICI Properties Inc. includes a mix of institutional and retail investors. As of the latest reports, the top institutional shareholders are as follows:
| Shareholder | Ownership Percentage | Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 8.9% | 94,000,000 |
| BlackRock, Inc. | 7.5% | 80,000,000 |
| State Street Corporation | 4.2% | 45,000,000 |
| Invesco Ltd. | 3.8% | 40,000,000 |
| Wellington Management Group LLP | 3.1% | 33,000,000 |
Non-controlling Interests
VICI Properties L.P. also has non-controlling interests, which represent the ownership stakes held by third-party unit holders. As of September 30, 2024, non-controlling interests in VICI Properties L.P. were approximately $106.3 million.
Market Capitalization and Stock Performance
As of the end of September 2024, VICI Properties Inc. had a market capitalization of approximately $26.5 billion. The stock has shown resilience in the market, with a year-to-date return of approximately 15%.
Recent Financial Performance
For the third quarter of 2024, VICI reported a net income attributable to common stockholders of $732.9 million, with total revenues of $964.7 million. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $964.7 million | $904.3 million |
| Net Income | $732.9 million | $556.3 million |
| Net Income per Share | $0.70 | $0.55 |
| Dividends Paid | $1.3 billion | $1.2 billion |
Debt Obligations
As of September 30, 2024, VICI Properties Inc. reported total debt of approximately $16.7 billion, with a weighted average interest rate of 4.35%. The following table provides an overview of the company's debt maturities:
| Maturity Year | Principal Amount | Carrying Value |
|---|---|---|
| 2024 | $1.05 billion | $1.05 billion |
| 2025 | $2.05 billion | $2.05 billion |
| 2026 | $1.92 billion | $1.92 billion |
| 2027 | $1.5 billion | $1.5 billion |
| 2028 | $1.6 billion | $1.6 billion |
| Thereafter | $8.3 billion | $8.3 billion |
Conclusion of Ownership Insights
VICI Properties Inc. showcases a diverse ownership structure with significant institutional investment, a stable market capitalization, and robust financial performance amidst a strategic focus on real estate assets primarily in the gaming and entertainment sectors.
VICI Properties Inc. (VICI) Mission Statement
Overview of Mission Statement
VICI Properties Inc. (VICI) is committed to owning and acquiring high-quality gaming, hospitality, and entertainment destinations, primarily through long-term triple-net leases. This approach allows VICI to generate a highly predictable income stream while providing tenants with the operational flexibility they require to succeed.
Core Objectives
- To maximize shareholder value through strategic acquisitions and partnerships.
- To maintain a diversified portfolio of experiential assets across the United States and Canada.
- To enhance tenant relationships by supporting their operational needs and sustainability initiatives.
- To ensure long-term growth through disciplined capital allocation and operational excellence.
Financial Highlights
As of September 30, 2024, VICI Properties reported the following financial figures:
| Metric | Value (in thousands) |
|---|---|
| Total Revenues | $2,873,153 |
| Net Income | $2,097,037 |
| Assets | $44,832,444 |
| Total Debt | $16,743,584 |
| Annual Rent (Venetian Lease) | $10.9 million (incremental increase) |
| Average Lease Term | 41.0 years |
Investment Strategy
VICI Properties focuses on acquiring properties that are strategically positioned to capitalize on consumer trends in the gaming and hospitality sectors. As of 2024, VICI owns 93 experiential assets, including:
| Property Type | Number of Properties |
|---|---|
| Gaming Properties | 54 |
| Experiential Properties | 39 |
Recent Developments
In Q3 2024, VICI Properties executed significant funding agreements, including:
- $150 million funded for the Venetian Capital Investment.
- Annual rent under the Venetian Lease increased by $10.9 million due to this funding.
- Termination of the previous Property Growth Fund Agreement, allowing for streamlined future investments.
Market Position
VICI's properties on the Las Vegas Strip generated approximately 48% of lease revenues for the three months ended September 30, 2024. The company continues to focus on building a competitive portfolio that attracts leading operators in the gaming and entertainment sectors.
Commitment to Shareholders
VICI Properties adheres to the REIT model, which allows it to distribute a significant portion of its taxable income to shareholders. In 2024, VICI aims to maintain its dividend distribution policy while exploring new acquisition opportunities to enhance long-term value.
Conclusion
VICI Properties Inc. remains focused on its mission to create value through strategic investments in premier experiential assets, ensuring a robust and sustainable business model that benefits both tenants and shareholders.
How VICI Properties Inc. (VICI) Works
Business Model
VICI Properties Inc. operates as a real estate investment trust (REIT) primarily engaged in acquiring, owning, and managing a diverse portfolio of gaming, hospitality, and entertainment destinations. The company focuses on properties that are leased to gaming operators under long-term, net lease agreements.
Financial Overview
As of September 30, 2024, VICI Properties reported total assets of $44.83 billion, compared to $43.93 billion as of December 31, 2023. The total liabilities stood at $18.38 billion, slightly down from $18.38 billion at the end of the previous year.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $44.83 billion | $43.93 billion |
| Total Liabilities | $18.38 billion | $18.38 billion |
| Partners' Capital | $26.21 billion | $25.29 billion |
| Net Income | $732.90 million | $556.33 million |
Revenue Streams
VICI's revenue primarily comes from:
- Income from sales-type leases
- Income from lease financing receivables, loans, and securities
- Other income including golf revenues
For the three months ended September 30, 2024, VICI reported total revenues of $964.67 million, an increase from $904.32 million in the same period of 2023.
Income Statement Highlights
The company's income statement for the three months ended September 30, 2024, includes:
| Item | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Income from Sales-type Leases | $518.69 million | $500.21 million |
| Income from Lease Financing | $419.12 million | $378.50 million |
| Other Income | $19.32 million | $18.18 million |
| Net Income | $732.90 million | $556.33 million |
Debt Obligations
As of September 30, 2024, VICI's total debt was $17.12 billion, with a weighted average interest rate of 4.351%. The company has various debt maturities, including:
| Maturity Year | Principal Amount | Interest Rate |
|---|---|---|
| 2025 | $2.05 billion | 3.500% - 4.625% |
| 2026 | $1.92 billion | 4.250% - 4.500% |
| 2027 | $1.50 billion | 3.750% - 5.750% |
| 2028 | $1.60 billion | 4.500% |
| 2029 | $1.75 billion | 3.875% - 4.625% |
| Thereafter | $8.30 billion | Various |
Dividends and Distributions
In 2024, VICI declared dividends of $0.4150 per common share in the first quarter and $0.4325 per common share in the second quarter. For the third quarter, the dividend declared was $0.4325 per common share.
Investments and Acquisitions
VICI continues to expand its portfolio through strategic acquisitions. Notably, it entered into a funding agreement for the Venetian Capital Investment, which includes annual rent increases based on a 7.25% yield for capital funding.
Market Position and Outlook
VICI Properties maintains a strong position in the gaming and hospitality sector, with a focus on long-term growth through real estate investments. The company's strategic initiatives and robust financial performance indicate a positive outlook for future operations.
How VICI Properties Inc. (VICI) Makes Money
Revenue Streams
VICI Properties Inc. generates revenue primarily through leasing its real estate assets, particularly in the gaming and hospitality sectors. As of September 30, 2024, VICI's total revenues were $964.7 million for the three months ended, compared to $904.3 million for the same period in 2023, reflecting an increase of approximately $60.4 million.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Variance (in thousands) |
|---|---|---|---|
| Income from sales-type leases | $518,691 | $500,212 | $18,479 |
| Income from lease financing receivables | $419,115 | $378,502 | $40,613 |
| Other income | $19,315 | $18,179 | $1,136 |
| Total Revenue | $964,669 | $904,318 | $60,351 |
Leasing Revenue Details
VICI's leasing revenue comes from both fixed and contingent rents. In the third quarter of 2024, the income from sales-type leases was $518.7 million, with fixed rent comprising the majority of this income. The following table details the components of leasing revenue:
| Revenue Component | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Fixed Rent from Sales-Type Leases | $494,641 | $478,419 |
| Contingent Rent from Sales-Type Leases | $24,050 | $21,793 |
| Fixed Rent from Lease Financing Receivables | $379,657 | $356,206 |
| Contingent Rent from Lease Financing Receivables | $3,211 | $2,511 |
| Total Leasing Revenue | $901,559 | $858,929 |
Asset Portfolio
As of September 30, 2024, VICI owned 93 properties across the United States and Canada, with a significant focus on gaming and hospitality. The total value of these assets included:
| Asset Type | Value (in thousands) |
|---|---|
| Investments in Leases - Sales-Type | $23,429,732 |
| Investments in Leases - Financing Receivables | $18,410,105 |
| Investments in Loans and Securities | $1,550,680 |
| Land | $150,727 |
| Total Real Estate Portfolio | $44,832,444 |
Debt Structure
VICI's financing strategy includes a diverse debt portfolio, with total debt amounting to $17.1 billion as of September 30, 2024. The following table outlines the debt maturities:
| Maturity Year | Principal Amount (in thousands) | Interest Rate |
|---|---|---|
| 2024 | $1,050,000 | 5.625% |
| 2025 | $2,050,000 | Various |
| 2026 | $1,917,704 | Various |
| 2027 | $1,500,000 | Various |
| 2028 | $1,600,000 | Various |
| Thereafter | $8,300,000 | Various |
| Total | $17,117,704 | 4.358% |
Investment Strategy
VICI's strategy includes acquiring and leasing properties under long-term, triple-net leases. This structure allows for stable cash flows, as tenants are responsible for property expenses, including maintenance, taxes, and insurance. In 2024, VICI funded $150 million for capital investments at the Venetian Resort, which will yield an annual rent increase of 7.25% on the investment.
Net Income Performance
For the nine months ended September 30, 2024, VICI reported a net income of $2.1 billion, compared to $1.8 billion for the same period in 2023, driven by increased revenues and effective cost management.
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Income | $744,481 | $565,459 |
| Net Income Attributable to Common Stockholders | $732,898 | $556,329 |
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Article updated on 8 Nov 2024
Resources:
- VICI Properties Inc. (VICI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of VICI Properties Inc. (VICI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View VICI Properties Inc. (VICI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.