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VICI Properties (VICI)

VICI Properties Inc. is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties' national, geographically diverse portfolio consists of 28 gaming facilities comprising over 47 million square feet and features approximately 17,800 hotel rooms and more than 200 restaurants, bars, nightclubs and sportsbooks. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos, Inc., Hard Rock International Inc., JACK Entertainment LLC and Penn National Gaming, Inc. VICI Properties also has an investment in the Chelsea Piers, New York facility and owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties' strategy is to create the nation's highest quality and most productive experiential real estate portfolio.

Company profile

Ticker
VICI
Exchange
CEO
Edward Pitoniak
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Biloxi Hammond LLC • Bluegrass Downs Property Owner LLC • Caesars Atlantic City LLC • Caesars Southern Indiana Propco LLC • Cape G LLC • Cascata LLC • Centaur Propco LLC • Chariot Run LLC • Cincinnati Propco LLC • Claudine Propco LLC ...

VICI stock data

Analyst ratings and price targets

Last 3 months

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

27 Jul 22
1 Oct 22
31 Dec 22
Quarter (USD) Dec 21 Sep 21 Jun 21 Mar 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 22 Abrahamson James R Common Stock Grant Acquire A No No 0 871 0 128,141
1 Jul 22 Macnab Craig Common Stock Grant Acquire A No No 0 510 0 49,929
1 Jul 22 Holland Elizabeth I Common Stock Grant Acquire A No No 0 223 0 36,801
1 Jul 22 Douglas Monica Howard Common Stock Grant Acquire A No No 0 52 0 20,243
1 Jul 22 Cantor Diana F Common Stock Grant Acquire A No No 0 555 0 33,697
13F holders Current Prev Q Change
Total holders 620 521 +19.0%
Opened positions 166 75 +121.3%
Closed positions 67 62 +8.1%
Increased positions 295 232 +27.2%
Reduced positions 110 157 -29.9%
13F shares Current Prev Q Change
Total value 30.44B 25.57B +19.0%
Total shares 1.02B 790.9M +29.6%
Total puts 5.47M 6.1M -10.3%
Total calls 5.73M 6.61M -13.4%
Total put/call ratio 1.0 0.9 +3.5%
Largest owners Shares Value Change
Vanguard 140.54M $4.19B +42.3%
BLK Blackrock 95.85M $2.86B +64.8%
Capital International Investors 79.79M $2.38B +33.7%
Capital Research Global Investors 57.59M $1.72B +39.6%
STT State Street 51.78M $1.56B +116.8%
Capital World Investors 48.19M $1.44B +47.9%
BAC Bank Of America 36.97M $1.1B +36.0%
Wellington Management 29.9M $890.71M -4.4%
Allianz Asset Management GmbH 28.95M $862.42M +5.5%
PFG Principal Financial Group Inc - Registered Shares 27.96M $832.82M +42.7%
Largest transactions Shares Bought/sold Change
Vanguard 140.54M +41.78M +42.3%
BLK Blackrock 95.85M +37.67M +64.8%
STT State Street 51.78M +27.89M +116.8%
Capital International Investors 79.79M +20.11M +33.7%
Capital Research Global Investors 57.59M +16.32M +39.6%
Capital World Investors 48.19M +15.61M +47.9%
PGGM Investments 0 -13.67M EXIT
Barrow Hanley Mewhinney & Strauss 16.73M +13.25M +381.7%
Geode Capital Management 21.72M +11.08M +104.2%
CNS Cohen & Steers 3.99M -10.56M -72.6%

Financial report summary

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Risks
  • We are and will always be significantly dependent on our tenants for our revenues. An event that has a material adverse effect on any of our significant tenants’ businesses, financial condition, liquidity, results of operations or prospects could have a material adverse effect on our business, financial condition, liquidity, results of operations and prospects.
  • The COVID-19 pandemic has adversely impacted our tenants’ operations and financial performance, as well as global and U.S. economic activity and market performance, which could have a material adverse impact on our business, financial condition, liquidity, results of operations and prospects.
  • Because a concentrated portion of our revenues are generated from the Las Vegas Strip, we are subject to greater risks than a company that is more geographically diversified.
  • Our significant tenants and their subsidiaries are required to pay a significant portion of their cash flow from operations to us pursuant to, and subject to the terms and conditions of, our respective Lease Agreements and loan and other agreements with them, as well as interest payments on their outstanding indebtedness, which could adversely affect our significant tenants’ business and operating condition, as well as their ability to satisfy their contractual payment obligations to us.
  • We are dependent on the gaming industry and may be susceptible to the risks associated with it, including due to the impact of the COVID-19 pandemic, which could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects.
  • We and our tenants face extensive regulation from gaming and other regulatory authorities, and our charter provides that any of our shares held by investors who are found to be unsuitable by state gaming regulatory authorities are subject to redemption.
  • Required regulatory approvals can delay or prohibit transfers of our gaming properties or the consummation of other pending transactions, including consummation of the Mergers, which could result in periods in which we are unable to receive rent for such properties or otherwise realize the benefits of such transactions, which may have a material adverse effect on our business, financial condition, liquidity, results of operations and prospects.
  • Our long-term, triple-net leases may not result in fair market lease rates over time, which could negatively impact our results of operations and cash flows and reduce the amount of funds available to make distributions to stockholders.
  • Tenants may choose not to renew the Lease Agreements.
  • Our ability to sell or dispose of our properties may be limited by the contractual terms of our Lease Agreements or other agreements with our tenants, or otherwise impacted by matters relating to our real estate ownership.
  • If Caesars declares bankruptcy and such action results in a lease being re-characterized as a disguised financing transaction in its bankruptcy proceeding, our business, results of operations, financial condition and cash flows could be materially and adversely affected.
  • Properties within our portfolio are, and properties that we may acquire in the future are likely to be, operated and promoted under certain trademarks and brand names that we do not own.
  • We may not be able to purchase properties pursuant to our rights under certain agreements, including put-call and right of first refusal agreements, if we are unable to obtain additional financing. In addition, pursuant to one such agreement, we may be forced to dispose of Harrah’s Las Vegas to Caesars, possibly on disadvantageous terms.
  • The bankruptcy or insolvency of any tenant, borrower or guarantor could result in the termination of the Lease Agreements, the related guarantees or loan agreements and material losses to us.
  • Our pursuit of investments in, and acquisitions of, additional properties and other strategic opportunities may be unsuccessful or fail to meet our expectations.
  • We may sell or divest different properties or assets after an evaluation of our portfolio of businesses. Such sales or divestitures could affect our costs, revenues, results of operations, financial condition and liquidity.
  • Our properties and the properties securing our loans are subject to risks from climate change, natural disasters, such as earthquakes, hurricanes and other extreme weather conditions, and terrorist attacks or other acts of violence, the occurrence of which may adversely affect our results of operations, financial condition and liquidity.
  • Climate change may adversely affect our business.
  • Certain properties are subject to restrictions pursuant to reciprocal easement agreements, operating agreements or similar agreements.
  • The loss of the services of key personnel could have a material adverse effect on our business.
  • Environmental compliance costs and liabilities associated with real estate properties owned by us may materially impair the value of those investments.
  • If our separation from CEOC, together with certain related transactions, does not qualify as a transaction that is generally tax-free for U.S. federal income tax purposes, CEOC could be subject to significant tax liabilities and, in certain circumstances, we could be required to indemnify CEOC for material taxes pursuant to indemnification obligations under the Tax Matters Agreement.
  • We have a substantial amount of indebtedness, and expect to incur additional indebtedness in the future (including in connection with the consummation of the MGP Transactions). Our substantial indebtedness exposes us to the risk of default under our debt obligations, limits our operating flexibility, increases the risks associated with a downturn in our business or in the businesses of our tenants, and requires us to use a substantial portion of our cash to service our debt obligations.
  • Adverse changes in our credit rating may affect our borrowing capacity and borrowing terms.
  • We will have future capital needs and may not be able to obtain additional financing on favorable terms, if at all.
  • Covenants in our debt agreements limit our operational flexibility, and a covenant breach or default could materially and adversely affect our business, financial condition, liquidity, results of operations and prospects.
  • A rise in interest rates may increase our overall interest rate expense and could adversely affect our stock price.
  • We have engaged and may engage in hedging or other derivative transactions that may limit gains or result in losses.
  • Future incurrences of debt, which would be senior to our shares of common stock upon liquidation, and/or issuance of preferred equity securities, which may be senior to our shares of common stock for purposes of distributions or upon liquidation, could adversely affect the market price of our common stock.
  • Our anticipated level of indebtedness will increase upon completion of the MGP Transactions and will increase the related risks we now face.
  • Following the Mergers, we may be unable to realize the anticipated benefits of the MGP Transactions or do so within the anticipated timeframe.
  • Counterparties to certain significant agreements with MGP may exercise contractual rights under such agreements in connection with the Mergers.
  • Following the MGP Transactions, we may not continue to pay dividends at or above the rate we currently pay.
  • The MGM Tax Protection Agreement, during its term, imposes certain limits on our operations and could require New VICI Operating Company to indemnify MGM for certain tax liabilities.
  • Failure to complete the Mergers in a timely manner or at all could adversely affect our business and operations and negatively affect our stock price.
  • The Exchange Ratio is fixed and will not be adjusted in the event of any change in the stock price of either us or MGP.
  • There may be unexpected delays in the completion of the Mergers or the Mergers may not be completed at all.
  • Our stockholders will have a substantially smaller ownership and voting interest in VICI upon completion of the Mergers, compared to their ownership and voting interest in VICI prior to the Mergers.
  • There can be no assurance that we will be able to secure the financing in connection with the Redemption on acceptable terms, in a timely manner, or at all, and therefore may be compelled to consummate the MGP Transactions without obtaining financing on attractive terms.
  • The MGP Master Transaction Agreement contains provisions that could discourage a potential acquirer of the Company from making a favorable proposal, could result in any such proposal being at a lower price than it might otherwise be and, in specified circumstances, could require us to make a substantial termination payment to MGP.
  • If the Mergers are not consummated by the Outside Date, either we or MGP may terminate the MGP Master Transaction Agreement.
  • An adverse judgment in any litigation challenging the Mergers may prevent the Mergers from becoming effective or from becoming effective within the expected timeframe.
  • If the REIT Merger does not qualify as a reorganization there may be adverse tax consequences.
  • We may incur adverse tax consequences if we have failed or fail (or, after consummation of the MGP Transactions, MGP has failed), to qualify as a REIT for U.S. federal income tax purposes.
  • Qualification to be taxed as a REIT involves highly technical and complex provisions of the Code, and violations of these provisions could jeopardize our REIT qualification.
  • We may in the future choose to pay dividends in the form of our own common stock, in which case stockholders may be required to pay income taxes in excess of the cash dividends they receive.
  • Changes to the U.S. federal income tax laws, including the enactment of certain tax reform measures, could have a material and adverse effect on us.
  • We could fail to qualify to be taxed as a REIT if income we receive from our tenants is not treated as qualifying income.
  • REIT distribution requirements could adversely affect our ability to execute our business plan.
  • Even if we qualify as a REIT, we may face other tax liabilities that reduce our cash flow.
  • Complying with REIT requirements may cause us to liquidate or forgo otherwise attractive opportunities and limit our expansion opportunities.
  • We may be subject to built-in gains tax on the disposition of certain of our properties.
  • Complying with REIT requirements may limit our ability to hedge effectively and may cause us to incur tax liabilities.
  • If we are required to make a purging distribution, we may pay such purging distribution in a combination of common stock and cash.
  • The cash available for distribution to stockholders may not be sufficient to pay dividends at expected levels, nor can we make assurances of our ability to make distributions in the future. We may use borrowed funds to make distributions.
  • The U.S. federal income tax treatment of the cash that we might receive from cash settlement of a forward sale agreement is unclear and could jeopardize our ability to meet the REIT qualification requirements.
  • VICI is a holding company with no direct operations and relies on distributions received from the Operating Partnership to make distributions to its stockholders.
  • Our rights and the rights of our stockholders to take action against our directors and officers are limited.
  • Our charter and bylaws contain provisions that may delay, defer or prevent an acquisition of our common stock or a change in control.
  • Certain provisions of Maryland law may limit the ability of a third party to acquire control of us.
  • We face risks associated with security breaches through cyber-attacks, cyber-intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems.
  • Our board of directors may change our major corporate policies without stockholder approval and those changes may materially and adversely affect us.
  • The market price and trading volume of shares of our common stock may be volatile.
Management Discussion
  • The results of operations discussion of VICI and VICI LP are presented combined as there are no material differences between the two reporting entities. Further, Golf revenues and Golf expenses, which are wholly attributable to VICI, are shown as separate line items in the Statement of Operations of VICI.
  • Our real property business and our golf course business represent our two reportable segments. The real property business segment consists of leased real property and loan investments and represents the substantial majority of our business. The golf course business segment, which is a wholly-owned subsidiary of VICI, consists of four golf courses, with each being operating segments that are aggregated into one reportable segment. The results of each reportable segment presented below are consistent with the way our management assesses these results and allocates resources.

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