Vici Properties

Last updated
Vici Properties Inc.
Company type Public
ISIN US9256521090
Industry Real estate investment trust
FoundedOctober 6, 2017;6 years ago (2017-10-06) in Paradise, Nevada, U.S.
Headquarters New York City, U.S.
Key people
 Edward B. Pitoniak (CEO)
RevenueUS$3.61 billion [1]  (2023)
US$2.55 billion [1]  (2023)
Total assets US$44.1 billion [2]  (2023)
Number of employees
28 [3]  (2023)
Website viciproperties.com

Vici Properties Inc. is a real estate investment trust (REIT) specializing in casino and entertainment properties, based in New York City. It was formed in 2017 as a spin-off from Caesars Entertainment Corporation as part of its bankruptcy reorganization. It owns 54 casinos, hotels, and racetracks, 4 golf courses, and 38 bowling alleys around the United States and Canada.

Contents

History

Vici Properties was formed as part of the Chapter 11 bankruptcy reorganization of Caesars Entertainment Operating Company (CEOC), the largest division of Caesars Entertainment. After placing CEOC into bankruptcy in January 2015, Caesars proposed splitting CEOC into two companies: a REIT, which would own the company's casinos, and an operating company, which would manage them. [4] The plan was designed to maximize value for CEOC's creditors by taking advantage of favorable tax treatment for REITs. [5] Several members of Congress opposed the plan, calling it an abuse of the REIT laws. [6] They asked the Internal Revenue Service to deny tax-free status to the spin-off, but their protest went unheeded. [6] [7]

The spin-off of Vici to CEOC's creditors was completed on October 6, 2017, the day that CEOC emerged from bankruptcy. [8] [9] [10] Vici began with a portfolio of nineteen casinos and racetracks, all leased to Caesars at a total initial annual rent of $630 million, and four golf courses. [8] [11] The company's name was adopted from the phrase " Veni, vidi, vici," commonly attributed to Julius Caesar; vici in Latin means "I conquered". [12]

Vici acquired Harrah's Las Vegas from Caesars in December 2017 for $1.1 billion, and leased it back at an initial annual rent of $87.4 million. [13] [14]

MGM Growth Properties, a REIT affiliated with Caesars competitor MGM Resorts International, offered in January 2018 to acquire Vici for an estimated $5.9 billion. [15] Vici's board rejected the offer, deciding instead to proceed with a planned initial public offering. [12] Vici completed its IPO on the New York Stock Exchange in February 2018, raising $1.2 billion. [16] [17]

The company moved its headquarters to New York City from the Las Vegas area in mid-2018. [18] [19]

Vici completed two transactions with Caesars in 2018, purchasing the Octavius Tower at Caesars Palace for $508 million and Harrah's Philadelphia for $242 million, and leasing them back to Caesars for $35 million and $21 million per year, respectively. [20]

In 2019, Vici made two purchases in conjunction with Penn National Gaming. Vici bought the real estate of the Margaritaville Resort Casino in Louisiana and Greektown Casino–Hotel in Detroit for $261 million and $700 million, respectively, while Penn bought both properties' operating businesses and leased them from Vici for annual rent of $23 million and $56 million, respectively. [21] [22] [23] Vici bought a second casino from Greektown seller Jack Entertainment, Jack Cincinnati Casino, in September 2019, paying $558 million for the real estate; Hard Rock International leased the property for $43 million per year. [24] [25]

In December 2019, Vici bought three casinos in Missouri and West Virginia from Eldorado Resorts in conjunction with Century Casinos: Isle Casino Cape Girardeau, Lady Luck Casino Caruthersville, and Mountaineer Casino, Racetrack and Resort. [26] Vici paid $278 million for the real estate assets, and leased them to Century for $25 million per year. [27] A month later, the company bought two more properties from Jack Entertainment, Jack Cleveland Casino and Jack Thistledown Racino, for a total of $843 million, leasing them back for $66 million per year. [28]

In July 2020, Eldorado Resorts acquired Caesars Entertainment, becoming Vici's primary tenant, and renamed itself to Caesars Entertainment. [29] In connection with this acquisition, Vici bought three properties (Harrah's Atlantic City, Harrah's Laughlin, and Harrah's New Orleans) from Caesars for a total of $1.8 billion, and leased them back to the new Caesars for $154 million per year. [30]

Starting in 2020, Vici expanded beyond the gaming sector, largely by providing construction loans for hospitality and entertainment properties, often with an option to purchase the property after completion. [31] [32] [33] By 2023, Vici had announced financing arrangements for Canyon Ranch spas, Great Wolf Resorts water parks, a Kalahari Resorts water park, Cabot golf resorts, and BigShots Golf driving ranges. [33] [34] It also acquired the Chelsea Piers entertainment complex in Manhattan and 38 Bowlero bowling alleys. [35] [36]

Vici more than doubled its size in 2022 by acquiring MGM Growth Properties and the Venetian complex on the Las Vegas Strip. Vici purchased the real estate of the Venetian complex from Las Vegas Sands in February 2022 for $4 billion. [37] [38] The acquisition included the Venetian and Palazzo casino hotels and the Sands Expo convention center. [38] Apollo Global Management bought the operating business and leased the property from Vici for $250 million per year. [37]

In April 2022, Vici acquired MGM Growth Properties for $17.2 billion (including $5.7 billion in assumed debt). [39] [40] [41] The purchase added full ownership of thirteen properties to Vici's portfolio, and half ownership of the MGM Grand Las Vegas and Mandalay Bay resorts, and increased Vici's annual revenue by $1 billion, [42] along with making it the largest land owner on the Las Vegas Strip, with over 660 acres. [43] Vici bought out the other half interest in the MGM Grand and Mandalay Bay from Blackstone for $1.27 billion plus $1.5 billion in assumed debt in January 2023. [44] [45]

Several smaller acquisitions were made in 2022 and 2023. Vici expanded to Canada, acquiring eight casinos in Alberta from Pure Canadian Gaming and Century Casinos for a total of US$363 million. [46] [47] It also added Foundation Gaming as a tenant, purchasing two casinos in Mississippi for $293 million, and acquired the Rocky Gap Casino Resort in Maryland for $204 million, in conjunction with Century. [48] [49]

Properties

Leased to Caesars Entertainment

Leased to Century Casinos

Leased to MGM Resorts International

Leased to Pure Canadian Gaming

Leased to other companies

Golf courses

The company owns and operates four golf courses: [51]

Former properties


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References

  1. 1 2 Form 10-K: Annual Report (Report). Vici Properties. February 23, 2023. pp. F-9 – via EDGAR.
  2. ↑ Form 10-K: Annual Report (Report). Vici Properties. February 23, 2023. pp. F-8 – via EDGAR.
  3. ↑ Form 10-K: Annual Report (Report). Vici Properties. February 23, 2023. p. 10 – via EDGAR.
  4. ↑ Howard Stutz (January 16, 2015). "Caesars puts largest unit into bankruptcy; judge OKs routine motions". Las Vegas Review-Journal– via NewsBank.
  5. ↑ Tom Hals (March 3, 2015). "Caesars' operating unit files bankruptcy exit plan". Reuters. Retrieved 2018-02-25.
  6. 1 2 Tom Hals (June 1, 2016). "Members of U.S. Congress oppose Caesars' casino REIT plan". Reuters. Retrieved 2018-02-25.
  7. ↑ Form 8-K: Current Report (Report). Caesars Entertainment. January 6, 2017 – via EDGAR.
  8. 1 2 "Vici Properties Inc., completes spin-off from Caesars Entertainment Operating Company" (Press release). Vici Properties. October 6, 2017 – via NewsBank.
  9. ↑ Richard N. Velotta (October 6, 2017). "Caesars completes merger, emerges from bankruptcy protection". Las Vegas Review-Journal. Retrieved 2018-02-25.
  10. ↑ Austen Hufford; Chris Kirkham (October 6, 2017). "Caesars Entertainment unit preparing to exit bankruptcy". Wall Street Journal. Retrieved 2018-02-25.
  11. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. November 13, 2017. p. 10.
  12. 1 2 Richard N. Velotta (January 17, 2018). "Caesars trust rejects offer from MGM Growth Properties". Las Vegas Review-Journal. Retrieved 2018-02-25.
  13. ↑ Todd Prince (November 29, 2017). "Caesars to sell real estate under Harrah's to finance acquisition". Las Vegas Review-Journal. Retrieved 2018-02-25.
  14. ↑ "Vici Properties Inc. completes acquisition of Harrah's Las Vegas real property assets and related transactions" (Press release). Vici Properties. December 22, 2017. Retrieved 2018-02-25– via BusinessWire.
  15. ↑ Richard N. Velotta (January 16, 2018). "MGM affiliate bids for real estate trust spun off by Caesars". Las Vegas Review-Journal. Retrieved 2018-02-25.
  16. ↑ Todd Prince (February 1, 2018). "Caesars real estate owner raises more money than expected in IPO". Las Vegas Review-Journal. Retrieved 2018-02-25.
  17. ↑ "Vici Properties Inc. announces closing of initial public offering and full exercise of underwriters' overallotment option" (Press release). Vici Properties. Retrieved 2018-02-25– via BusinessWire.
  18. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. May 4, 2018. p. 29 – via EDGAR.
  19. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. August 2, 2018. p. 34 – via EDGAR.
  20. ↑ "Vici Properties Inc. completes acquisition of Harrah's Philadelphia and lease modifications" (Press release). Vici Properties. December 26, 2018. Retrieved 2018-12-29.
  21. ↑ Sarah Crawford (June 19, 2018). "Margaritaville Resort Casino sale is announced". Shreveport Times. Retrieved 2018-06-19.
  22. ↑ Stacy Wescoe (January 3, 2019). "Penn National acquires Louisiana casino operations". Lehigh Valley Business. Retrieved 2019-01-13.
  23. ↑ "Vici Properties Inc. completes acquisition of Greektown Casino-Hotel and lease to Penn National Gaming" (Press release). Vici Properties. May 23, 2019. Retrieved 2019-05-26– via BusinessWire.
  24. ↑ Madeline Mitchell (September 20, 2019). "Jack Cincinnati Casino sold to Hard Rock International for $745 million". Cincinnati Enquirer. Retrieved 2019-09-21.
  25. ↑ "Vici Properties Inc. completes acquisition of Jack Cincinnati Casino and lease to Hard Rock International" (Press release). Vici Properties. September 20, 2019. Retrieved 2019-09-21– via BusinessWire.
  26. ↑ Bailey Schulz (June 17, 2019). "Eldorado Resorts selling 3 regional properties". Las Vegas Review-Journal. Retrieved 2019-09-21.
  27. ↑ "Century Casinos, Inc. enters into a definitive agreement to acquire the operations of three casinos from Eldorado Resorts" (Press release). Century Casinos. June 17, 2019. Retrieved 2019-09-21– via PR Newswire.
  28. ↑ Howard Stutz (January 25, 2020). "VICI finalizes purchase of two Cleveland-area casinos; leases properties back to Jack Entertainment". CDC Gaming Reports. Retrieved 2020-09-29.
  29. ↑ Ken Ritter (July 20, 2020). "Eldorado finishes $17.3B buyout of Caesars Entertainment". Associated Press. Retrieved 2020-07-20.
  30. ↑ "Vici Properties Inc. completes property acquisitions and lease modifications related to the Eldorado-Caesars merger" (Press release). Vici Properties. July 20, 2020 – via BusinessWire.
  31. ↑ Christopher Palmeri (June 8, 2023). "Las Vegas' top landlord looks at spas, water parks for future growth". Financial Post. Bloomberg. Retrieved 2023-09-03.
  32. ↑ "Vici Investor Presentation" (PDF). Vici Properties. 2022.
  33. 1 2 Form 10-K: Annual Report (Report). Vici Properties. February 23, 2023. pp. F-10 – via EDGAR.
  34. ↑ "Vici Properties Inc. provides construction financing to Kalahari for indoor waterpark resort development in Virginia" (Press release). Vici Properties. December 7, 2023. Retrieved 2024-01-28.
  35. ↑ Erik Engquist (December 22, 2023). "Vici buys Chelsea Piers, leases vast complex back to Betts". The Real Deal. Retrieved 2024-01-28.
  36. ↑ "Bowlero completes $432.9 million sale-leaseback with Vici Properties". Bowlero. October 19, 2023. Retrieved 2024-01-28– via BusinessWire.
  37. 1 2 Michelle Chapman (March 3, 2021). "With sale of the Venetian, Las Vegas Sands exits the Strip". Associated Press. Retrieved 2021-03-06.
  38. 1 2 Richard N. Velotta (February 23, 2022). "Las Vegas Sands closes $6.4 billion sale of Venetian to Apollo, Vici". Las Vegas Review-Journal. Retrieved 2022-06-19.
  39. ↑ Dave Sebastian (August 4, 2021). "Casino owner Vici Properties to buy MGM Growth Properties". Wall Street Journal. Retrieved 2021-08-04.
  40. ↑ "Vici Properties Inc. announces $17.2 billion strategic acquisition of MGM Growth Properties LLC" (Press release). MGM Growth Properties. August 4, 2021.
  41. ↑ Eli Segall (May 2, 2022). "Casino landlord Vici closes $17B buyout of MGM Resorts spinoff". Las Vegas Review-Journal. Retrieved 2022-05-08.
  42. ↑ "Vici Strategic Acquisition of MGP" (PDF). Vici Properties. Retrieved 2021-08-08.
  43. ↑ "VICI Properties buying rival MGM Growth for $17.2 billion, will become Strip's largest landowner". The Nevada Independent. 2021-08-05. Retrieved 2021-08-14.
  44. ↑ Eli Segall (January 9, 2023). "Casino landlord closes buyout of MGM Grand, Mandalay Bay". Las Vegas Review-Journal. Retrieved 2023-01-11.
  45. ↑ "Vici Properties Inc. completes acquisition of remaining 49.9% interest in MGM Grand Las Vegas and Mandalay Bay joint venture" (Press release). Vici Properties. January 9, 2023 – via BusinessWire.
  46. ↑ "Vici Properties Inc. acquires four Canadian gaming properties in sale leaseback transaction with Pure Canadian Gaming Corp" (Press release). Vici Properties. January 9, 2023 – via BusinessWire.
  47. ↑ Robert Fletcher (September 7, 2023). "Vici completes quadruple Alberta casino purchase from Century". iGaming Business. Retrieved 2023-09-14.
  48. ↑ Rege Behe (December 23, 2022). "Mississippi: VICI acquires real estate assets of Fitz, WaterView hotel-casinos". CDC Gaming Reports. Retrieved 2023-09-03.
  49. ↑ "Century Casinos completes acquisition of Rocky Gap Casino Resort operations". The Daily Record. Baltimore, MD. July 26, 2023. Retrieved 2023-09-03.
  50. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. November 13, 2017. p. 17 – via EDGAR.
  51. ↑ "Golf Courses". Vici Properties. Retrieved 2018-02-25.
  52. ↑ Richard N. Velotta (November 18, 2020). "Caesars closes Bally's Atlantic City sale to Rhode Island company". Las Vegas Review-Journal. Retrieved 2020-11-18.
  53. ↑ Kelly Farrell (November 20, 2020). "It's Bluegrass Downs: McCracken County announces 50-plus acre donation for sports complex". The Paducah Sun. Retrieved 2020-12-26.
  54. ↑ "Caesars Entertainment and Vici Properties complete sale of Harrah's Louisiana Downs" (Press release). Caesars Entertainment. November 1, 2021. Retrieved 2021-11-03– via PR Newswire.
  55. ↑ Jason Hidalgo (September 30, 2020). "CAI Investments closes deal on purchase of Harrah's Reno building". Reno Gazette-Journal. Retrieved 2020-10-04.
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