VICI Properties has more than doubled its Q4 2022 revenues from the previous year with key acquisitions and leasebacks providing a platform for growth.
Publishing its annual financial report, the real estate investment trust (REIT) revealed that fourth-quarter revenue was up 100.9% year-over-year, totaling $769.9m.
Moreover, the net income attributable to common shareholders increased by 114.6% as the REIT enjoyed a quarter boosted by an increase in its property portfolio.
This was driven by the acquisitions of the MGM Grand/Mandalay Bay joint venture, in which it bought out MGM Resorts’ 49.9% stake. Furthermore, VICI closed the purchase of two regional gaming assets by activating sale-and-leaseback deals to increase rental revenues from operators.
Throughout 2022, VICI completed $22.8bn worth of acquisitions and total investment volume of $4.5bn with a weighted average initial yield of 6.6% which, whilst costly in terms of cash flow, is catapulting the casino landlord’s topline.
Key acquisitions in 2022 included the $4bn strategic acquisition of the Venetian Resort Las Vegas and the $17.2bn acquisition of MGM Growth Properties.
Full-year 2022 revenue stood at $2.6bn, up $72.3% YoY, whilst net income for shareholders increased 10.2% YoY to $1.1bn. This yearly uptick was boosted by incremental revenue from the MGP and Venetian acquisitions. Total revenues for the year included $337.6m of non-cash leasing and financing adjustments and $59.6m of other income.
VICI required additional cash during 2022, which came through the $2.5bn credit facility taken out last February, scheduled to mature in Mar. 2026, as well as a $1bn delayed draw term loan facility.
However, 2022 will go down as a monumental year for the firm as it added to its portfolio, grew its business and entered a series of indexes owing to its growth.
2023 also holds more additions to its portfolio, as it announced the acquisition of four gaming venues from PURE, which also marks its international debut as it enters the Canadian gaming business for the first time.
Commenting on 2022 performance, Edward Pitoniak, CEO of VICI, said: “In 2022, less than five years from our IPO, VICI became a Top 10 REIT in the RMZ REIT Index, a member of the S&P 500 and an investment grade issuer of credit. In the first half of the year, we completed our transformational acquisitions of MGM Growth Properties and the Venetian Resort Las Vegas, thereby becoming the leading real estate owner on America’s most dynamic commercial street, The Las Vegas Strip.
“In the second half of the year and into 2023, we demonstrated the advantage and flexibility provided by VICI’s scale and liquidity as we announced and originated approximately $4.5bn of investments across a variety of gaming and non-gaming opportunities, diversifying our relationships and expanding internationally into Canada with our PURE Canadian Gaming announcement in January 2023.”
Pitoniak concluded: “Finally, we are proud that VICI generated the highest – and only positive – total shareholder return of all S&P 500 REITs in 2022. We are confident that our 2022 activities and achievements will continue to put VICI in a position for sustainable accretive growth and value creation for our shareholders into 2023 and beyond.”
