UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________

FORM 10-Q

_____________________________


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, ~~2022~~2023


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to __________

Commission file number: 001-38372 (VICI Properties Inc.)

Commission file number: 333-264352-01 (VICI Properties L.P.)

_____________________________

VICI Properties Inc.

VICI Properties L.P.

(Exact name of registrant as specified in its charter)

_____________________________


Maryland	(VICI Properties Inc.)	81-4177147
Delaware	(VICI Properties L.P.)	35-2576503
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

535 Madison Avenue, 20th Floor New York, New York 10022

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (646) 949-4631

_____________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common stock, $0.01 par value

VICI

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


VICI Properties Inc. Yes ☒ No ☐						VICI Properties L.P. Yes ☐☒ No ☒☐

* VICI Properties L.P. has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the period it has been subject to such requirements, which has been for less than 90 days.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).


VICI Properties Inc. Yes ☒ No ☐						VICI Properties L.P. Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

VICI Properties Inc.

VICI Properties L.P.

Large Accelerated Filer

☒

Accelerated filer

☐

Large Accelerated Filer

☐

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Non-accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


VICI Properties Inc. ☐						VICI Properties L.P. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


VICI Properties Inc. Yes ☐ No ☒						VICI Properties L.P. Yes ☐ No ☒

As of ~~May 3, 2022,~~April 28, 2023, VICI Properties Inc. had ~~963,002,113~~1,004,238,490 shares of common stock, $0.01 par value per share, outstanding. VICI Properties L.P. has no common stock outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the three months ended March 31, ~~2022~~2023 of VICI Properties Inc. and VICI Properties L.P. Unless stated otherwise or the context otherwise requires, references to “VICI” mean VICI Properties Inc. and its consolidated subsidiaries, including VICI Properties OP LLC (“VICI OP”), and references to “VICI LP” mean VICI Properties L.P. and its consolidated subsidiaries. Unless stated otherwise or the context otherwise requires, the terms “the Company,” “we,” “our” and “us” mean VICI and VICI LP, including, collectively, their consolidated subsidiaries.

In order to highlight the differences between VICI and VICI LP, the separate sections in this report for VICI and VICI LP described below specifically refer to VICI and VICI LP. In the sections that combine disclosure of VICI and VICI LP, this report refers to actions or holdings of VICI and VICI LP as being “our” actions or holdings. Although VICI LP is generally the entity that directly or indirectly enters into contracts and joint ventures, holds assets and incurs debt, we believe that references to “we,” “us” or “our” in this context is appropriate because the business is one enterprise and we operate substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets through VICI LP.

VICI is a real estate investment trust (“REIT”) that is the sole owner of VICI Properties GP LLC (the “General Partner”), the sole general partner of VICI LP. As of March 31, 2022, VICI beneficially owned 100% of the outstanding limited partnership units in VICI LP. Subsequent to quarter-end, on April 29, 2022, in connection with the closing of the MGP Transactions (as defined below), VICI contributed its interest in VICI LP to VICI OP, which, as of such date, serves as our new operating partnership and, therefore, is now the entity through which we operate substantially all of our business and own, either directly or through subsidiaries, substantially all of our assets. After taking into account the effects of the MGP Transactions,2023, VICI owns 100% of the limited liability company interests of VICI Properties HoldCo LLC (“HoldCo”), which in turn owns ~~98.7%~~approximately 98.8% of the limited liability company interest of VICI OP (such interests, “VICI OP Units”), our operating partnership, which in turns owns 100% of the limited partnership interest in VICI LP. The balance of the VICI OP Units not held by HoldCo are held by MGM Resorts ~~International.~~International or its affiliates.

The following diagram details VICI’s organizational structure ~~subsequent to the closing~~as of ~~the MGP Transactions on April 29, 2022.~~March 31, 2023.

We believe combining the quarterly reports on Form 10-Q of VICI and VICI LP into this single report:

•enhances investors’ understanding of VICI and VICI LP by enabling investors to view the business as a whole in the same manner as management views and operates the business;

•eliminates duplicative disclosure and provides a more streamlined and readable presentation; and

•creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.

We operate VICI and VICI LP as one business. Because VICI LP is managed by VICI, and VICI conducts substantially all of its operations and owns, either directly or through subsidiaries, substantially all of its assets indirectly through VICI LP, VICI’s executive officers are VICI LP’s executive officers, although, as a partnership, VICI LP does not have a board of directors.

We believe it is important to understand the few differences between VICI and VICI LP in the context of how VICI and VICI LP operate as a consolidated company. VICI is a REIT whose only material assets are its indirect interest in VICI LP, through which it conducts its real property business. VICI also conducts its golf course business through a taxable REIT subsidiary (a “TRS”), VICI Golf LLC, a Delaware limited liability company (“VICI Golf”). As a result, VICI does not conduct business itself other than issuing public equity from time to time and does not directly incur any material indebtedness, rather VICI LP

holds substantially all of our assets, except for those held in VICI Golf. Except for net proceeds from public equity issuances by VICI, ~~which following the closing of the MGP Transactions are contributed to VICI OP (and indirectly to VICI LP) in exchange for VICI OP Units,~~ VICI LP generates all capital required by the Company’s business, which sources include VICI LP’s operations and its direct or indirect incurrence of indebtedness.

VICI consolidates VICI LP for financial reporting purposes, and VICI does not have material assets other than its indirect investment in VICI LP. Therefore, while there are some areas of difference between the unaudited Consolidated Financial Statements of VICI and those of VICI LP, the assets and liabilities of VICI and VICI LP are materially the same on their respective financial statements. As of March 31, ~~2022,~~2023, the primary areas of difference between the unaudited Consolidated Financial Statements of VICI and those of VICI LP were cash and cash equivalents, stockholders’ equity and partners’ capital, non-controlling interests and golf operations, which include the assets and liabilities and income and ~~expense.~~expenses of VICI Golf.

To help investors understand the differences between VICI and VICI LP, this report provides:

•separate consolidated financial statements for VICI and VICI LP;

•a single set of notes to such consolidated financial statements that includes separate discussions of stockholders’ equity or partners’ equity and per share and per unit data, as applicable;

•a combined Management’s Discussion and Analysis of Financial Condition and Results of Operations section that also includes discrete information related to each entity, as applicable;

•separate Part I, Item 4. Controls and Procedures sections;

•separate Part II, Item 2. Issuer Purchases of Equity Securities sections related to each entity; and

•separate Exhibits 31 and 32 certifications for each VICI and VICI LP in order to establish that the requisite certifications have been made and that VICI and VICI LP are each compliant with Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.

The separate discussions of VICI and VICI LP in this report should be read in conjunction with each other to understand our results on a consolidated basis and how management operates our business.

Table of Contents


VICI PROPERTIES INC.
VICI PROPERTIES L.P.
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, ~~2022~~2023
TABLE OF CONTENTS

			Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements of VICI Properties Inc. (Unaudited)		5
		Consolidated Balance Sheets as of March 31, ~~2022~~2023 and December 31, ~~2021~~2022	5
		Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022	6
		Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022	7
		Consolidated Statements of Cash Flows for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022	8

	Financial Statements of VICI Properties L.P. (Unaudited)		10
		Consolidated Balance Sheets as of March 31, ~~2022~~2023 and December 31, ~~2021~~2022	10
		Consolidated Statements of Operations and Comprehensive Income for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022	11
		Consolidated Statements of Partners’ Capital for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022	12
		Consolidated Statements of Cash Flows for the Three Months Ended March 31, ~~2022~~2023 and ~~2021~~2022	13

	Notes to Consolidated Financial Statements		15
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		5150
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		6764
Item 4.	Controls and Procedures		6765

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings		6966
Item 1A.	Risk Factors		6966
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		6966
Item 3.	Defaults Upon Senior Securities		6966
Item 4.	Mine Safety Disclosures		6966
Item 5.	Other Information		7067
Item 6.	Exhibits		7067

Signatures			7168

Table of Contents

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

VICI PROPERTIES INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except share and per share data)


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Assets	Assets					Assets
Real estate portfolio:	Real estate portfolio:					Real estate portfolio:
Investments in leases - sales-type, net	Investments in leases - sales-type, net	$	17,113,699	$	13,136,664	Investments in leases - sales-type, net	$	22,579,820	$	17,172,325

Investments in leases - financing receivables, net	Investments in leases - financing receivables, net	2,650,633		2,644,824		Investments in leases - financing receivables, net	17,051,187		16,740,770
Investments in loans, net		513,128		498,002
Investments in loans and securities, net						Investments in loans and securities, net	886,524		685,793
Investment in unconsolidated affiliate						Investment in unconsolidated affiliate	—		1,460,775
Land	Land	153,576		153,576		Land	153,560		153,560
Cash and cash equivalents	Cash and cash equivalents	568,702		739,614		Cash and cash equivalents	247,673		208,933

Short-term investments						Short-term investments	—		217,342
Other assets	Other assets	741,583		424,693		Other assets	934,049		936,328
Total assets	Total assets	$	21,741,321	$	17,597,373	Total assets	$	41,852,813	$	37,575,826

Liabilities	Liabilities					Liabilities
Debt, net	Debt, net	$	5,297,014	$	4,694,523	Debt, net	$	16,606,240	$	13,739,675
Accrued expenses and deferred revenue	Accrued expenses and deferred revenue	99,062		113,530		Accrued expenses and deferred revenue	221,283		213,388
Dividends payable		269,276		226,309
Dividends and distributions payable						Dividends and distributions payable	396,212		380,178
Other liabilities	Other liabilities	592,183		375,837		Other liabilities	954,543		952,472
Total liabilities	Total liabilities	6,257,535		5,410,199		Total liabilities	18,178,278		15,285,713

Commitments and contingent liabilities (Note 10)	Commitments and contingent liabilities (Note 10)	0		0		Commitments and contingent liabilities (Note 10)

Stockholders’ equity	Stockholders’ equity					Stockholders’ equity
Common stock, $0.01 par value, 1,350,000,000 shares authorized and 748,413,311 and 628,942,092 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		7,484		6,289
Preferred stock, $0.01 par value, 50,000,000 shares authorized and no shares outstanding at March 31, 2022 and December 31, 2021		—		—
Common stock, $0.01 par value, 1,350,000,000 shares authorized and 1,004,204,918 and 963,096,563 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively						Common stock, $0.01 par value, 1,350,000,000 shares authorized and 1,004,204,918 and 963,096,563 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	10,042		9,631
Preferred stock, $0.01 par value, 50,000,000 shares authorized and no shares outstanding at March 31, 2023 and December 31, 2022						Preferred stock, $0.01 par value, 50,000,000 shares authorized and no shares outstanding at March 31, 2023 and December 31, 2022	—		—
Additional paid-in capital	Additional paid-in capital	14,971,890		11,755,069		Additional paid-in capital	22,910,509		21,645,499
Accumulated other comprehensive income	Accumulated other comprehensive income	109,495		884		Accumulated other comprehensive income	170,441		185,353
Retained earnings	Retained earnings	315,809		346,026		Retained earnings	220,254		93,154
Total VICI stockholders’ equity	Total VICI stockholders’ equity	15,404,678		12,108,268		Total VICI stockholders’ equity	23,311,246		21,933,637
Non-controlling interest		79,108		78,906
Non-controlling interests						Non-controlling interests	363,289		356,476
Total stockholders’ equity	Total stockholders’ equity	15,483,786		12,187,174		Total stockholders’ equity	23,674,535		22,290,113
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	21,741,321	$	17,597,373	Total liabilities and stockholders’ equity	$	41,852,813	$	37,575,826

Note: As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, our Investments in leases - sales-type, Investments in leases - financing receivables, Investments in loans and securities and Other assets (sales-type sub-leases) are net of ~~$504.2~~$716.6 million, ~~$92.0~~$689.5 million, ~~$1.1~~$15.7 million and ~~$8.8~~$17.0 million, respectively, and ~~$434.9~~$570.4 million, ~~$91.1~~$726.7 million, ~~$0.8~~$6.9 million and ~~$6.5~~$19.8 million of ~~Allowance~~allowance for credit losses, respectively. Refer to Note 5 - Allowance for Credit Losses for further details.

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

(In thousands, except share and per share data)


		Three Months Ended March 31,				Three Months Ended March 31,
		2022		2021				2023		2022
Revenues	Revenues						Revenues
Income from sales-type leases	Income from sales-type leases	$	326,735	$	290,146		Income from sales-type leases	$	478,394	$	326,735

Income from lease financing receivables and loans		72,878		70,377
Income from lease financing receivables, loans and securities							Income from lease financing receivables, loans and securities	371,069		72,878
Other income	Other income	8,386		6,974			Other income	18,339		8,386
Golf revenues	Golf revenues	8,626		6,813			Golf revenues	9,845		8,626
Total revenues	Total revenues	416,625		374,310			Total revenues	877,647		416,625

Operating expenses	Operating expenses						Operating expenses
General and administrative	General and administrative	9,466		8,085			General and administrative	15,005		9,466
Depreciation	Depreciation	776		792			Depreciation	814		776
Other expenses	Other expenses	8,386		6,974			Other expenses	18,339		8,386
Golf expenses	Golf expenses	5,285		4,506			Golf expenses	5,952		5,285
Change in allowance for credit losses	Change in allowance for credit losses	80,820		(4,380)			Change in allowance for credit losses	111,477		80,820
Transaction and acquisition expenses	Transaction and acquisition expenses	755		8,721			Transaction and acquisition expenses	(958)		755
Total operating expenses	Total operating expenses	105,488		24,698			Total operating expenses	150,629		105,488

Income from unconsolidated affiliate							Income from unconsolidated affiliate	1,280		—
Interest expense	Interest expense	(68,142)		(77,048)			Interest expense	(204,360)		(68,142)
Interest income	Interest income	93		19			Interest income	3,047		93

Other gains (losses)							Other gains (losses)	1,963		—
Income before income taxes	Income before income taxes	243,088		272,583			Income before income taxes	528,948		243,088
Income tax expense	Income tax expense	(400)		(484)			Income tax expense	(1,087)		(400)
Net income	Net income	242,688		272,099			Net income	527,861		242,688
Less: Net income attributable to non-controlling interest		(2,305)		(2,298)
Less: Net income attributable to non-controlling interests							Less: Net income attributable to non-controlling interests	(9,121)		(2,305)
Net income attributable to common stockholders	Net income attributable to common stockholders	$	240,383	$	269,801		Net income attributable to common stockholders	$	518,740	$	240,383

Net income per common share	Net income per common share						Net income per common share
Basic	Basic	$	0.35	$	0.50		Basic	$	0.52	$	0.35
Diluted	Diluted	$	0.35	$	0.50		Diluted	$	0.52	$	0.35

Weighted average number of shares of common stock outstanding	Weighted average number of shares of common stock outstanding						Weighted average number of shares of common stock outstanding
Basic	Basic	684,341,045		536,480,505			Basic	1,001,526,645		684,341,045
Diluted	Diluted	687,914,683		544,801,802			Diluted	1,003,831,325		687,914,683

Other comprehensive income	Other comprehensive income						Other comprehensive income
Net income attributable to common stockholders		$	240,383	$	269,801
Unrealized gain on cash flow hedges		108,611		12,378

Net income							Net income	$	527,861	$	242,688
Reclassification of derivative gain to Interest expense							Reclassification of derivative gain to Interest expense	(6,037)		—
Unrealized (loss) gain on cash flow hedges							Unrealized (loss) gain on cash flow hedges	(7,393)		108,611
Foreign currency translation adjustments							Foreign currency translation adjustments	(1,664)		—
Comprehensive income							Comprehensive income	512,767		351,299
Comprehensive income attributable to non-controlling interest							Comprehensive income attributable to non-controlling interest	(8,939)		(2,305)
Comprehensive income attributable to common stockholders	Comprehensive income attributable to common stockholders	$	348,994	$	282,179		Comprehensive income attributable to common stockholders	$	503,828	$	348,994

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands, except share and per share data)


		Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total VICI Stockholders’ Equity		Non-controlling Interest		Total Stockholders’ Equity
Balance as of December 31, 2020		$	5,367	$	9,363,539	$	(92,521)	$	139,454	$	9,415,839	$	77,906	$	9,493,745
Net income		—		—		—		269,801		269,801		2,298		272,099

Distributions to non-controlling interest		—		—		—		—		—		(2,071)		(2,071)
Dividends declared ($0.3300 per common share)		—		—		—		(177,217)		(177,217)		—		(177,217)
Stock-based compensation, net of forfeitures		3		755		—		—		758		—		758
Unrealized gain on cash flow hedges		—		—		12,378		—		12,378		—		12,378
Balance as of March 31, 2021		$	5,370	$	9,364,294	$	(80,143)	$	232,038	$	9,521,559	$	78,133	$	9,599,692

																	Common Stock		Additional Paid-in Capital		Accumulated Other Comprehensive Income		Retained Earnings (Deficit)		Total VICI Stockholders’ Equity		Non-controlling Interests		Total Stockholders’ Equity
Balance as of December 31, 2021	Balance as of December 31, 2021	$	6,289	$	11,755,069	$	884	$	346,026	$	12,108,268	$	78,906	$	12,187,174	Balance as of December 31, 2021	$	6,289	$	11,755,069	$	884	$	346,026	$	12,108,268	$	78,906	$	12,187,174
Net income	Net income	—		—		—		240,383		240,383		2,305		242,688		Net income	—		—		—		240,383		240,383		2,305		242,688
Issuance of common stock, net	Issuance of common stock, net	1,190		3,216,907		—		—		3,218,097		—		3,218,097		Issuance of common stock, net	1,190		3,216,907		—		—		3,218,097		—		3,218,097
Distributions to non-controlling interest		—		—		—		—		—		(2,103)		(2,103)
Dividends declared ($0.3600 per common share)		—		—		—		(270,600)		(270,600)		—		(270,600)
Dividends and distributions declared ($0.3600 per common share)																Dividends and distributions declared ($0.3600 per common share)	—		—		—		(270,600)		(270,600)		(2,103)		(272,703)
Stock-based compensation, net of forfeitures	Stock-based compensation, net of forfeitures	5		(86)		—		—		(81)		—		(81)		Stock-based compensation, net of forfeitures	5		(86)		—		—		(81)		—		(81)
Unrealized gain on cash flow hedges	Unrealized gain on cash flow hedges	—		—		108,611		—		108,611		—		108,611		Unrealized gain on cash flow hedges	—		—		108,611		—		108,611		—		108,611
Balance as of March 31, 2022	Balance as of March 31, 2022	$	7,484	$	14,971,890	$	109,495	$	315,809	$	15,404,678	$	79,108	$	15,483,786	Balance as of March 31, 2022	$	7,484	$	14,971,890	$	109,495	$	315,809	$	15,404,678	$	79,108	$	15,483,786

Balance as of December 31, 2022																Balance as of December 31, 2022	$	9,631	$	21,645,499	$	185,353	$	93,154	$	21,933,637	$	356,476	$	22,290,113
Net income																Net income	—		—		—		518,740		518,740		9,121		527,861
Issuance of common stock, net																Issuance of common stock, net	406		1,271,066		—		—		1,271,472		—		1,271,472
Reallocation of equity																Reallocation of equity	—		(4,936)		—		—		(4,936)		4,936		—
Dividends and distributions declared ($0.3900 per common share)																Dividends and distributions declared ($0.3900 per common share)	—		—		—		(391,640)		(391,640)		(7,048)		(398,688)
Stock-based compensation, net of forfeitures																Stock-based compensation, net of forfeitures	5		(1,120)		—		—		(1,115)		(14)		(1,129)
Reclassification of derivative gain to Interest expense																Reclassification of derivative gain to Interest expense	—		—		(5,964)		—		(5,964)		(73)		(6,037)
Unrealized loss on cash flow hedges																Unrealized loss on cash flow hedges	—		—		(7,304)		—		(7,304)		(89)		(7,393)
Foreign currency translation adjustments																Foreign currency translation adjustments	—		—		(1,644)		—		(1,644)		(20)		(1,664)
Balance as of March 31, 2023																Balance as of March 31, 2023	$	10,042	$	22,910,509	$	170,441	$	220,254	$	23,311,246	$	363,289	$	23,674,535

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)


		Three Months Ended March 31,					Three Months Ended March 31,
		2022		2021			2023		2022
Cash flows from operating activities	Cash flows from operating activities					Cash flows from operating activities
Net income	Net income	$	242,688	$	272,099	Net income	$	527,861	$	242,688
Adjustments to reconcile net income to cash flows provided by operating activities:	Adjustments to reconcile net income to cash flows provided by operating activities:					Adjustments to reconcile net income to cash flows provided by operating activities:
Non-cash leasing and financing adjustments	Non-cash leasing and financing adjustments	(35,564)		(28,134)		Non-cash leasing and financing adjustments	(122,834)		(35,564)
Stock-based compensation	Stock-based compensation	2,630		2,277		Stock-based compensation	3,467		2,630

Depreciation	Depreciation	776		792		Depreciation	814		776
Amortization of debt issuance costs and original issue discount	Amortization of debt issuance costs and original issue discount	15,977		6,691		Amortization of debt issuance costs and original issue discount	13,641		15,977
Change in allowance for credit losses	Change in allowance for credit losses	80,820		(4,380)		Change in allowance for credit losses	111,477		80,820
Income from unconsolidated affiliate						Income from unconsolidated affiliate	(1,280)		—
Distributions from unconsolidated affiliate						Distributions from unconsolidated affiliate	3,273		—

Foreign currency remeasurement gain						Foreign currency remeasurement gain	(1,963)		—
Change in operating assets and liabilities:	Change in operating assets and liabilities:					Change in operating assets and liabilities:
Other assets	Other assets	(2,057)		(1,539)		Other assets	1,380		(2,057)
Accrued expenses and deferred revenue	Accrued expenses and deferred revenue	(7,170)		(92,513)		Accrued expenses and deferred revenue	(12,282)		(7,170)
Other liabilities	Other liabilities	73		433		Other liabilities	(1,521)		73
Net cash provided by operating activities	Net cash provided by operating activities	298,173		155,726		Net cash provided by operating activities	522,033		298,173

Cash flows from investing activities	Cash flows from investing activities					Cash flows from investing activities
Net cash paid in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition						Net cash paid in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition	(1,266,905)		—
Investments in leases - sales-type	Investments in leases - sales-type	(4,012,096)		—		Investments in leases - sales-type	(6,100)		(4,012,096)
Investments in leases - financing receivables	Investments in leases - financing receivables	—		(6,000)		Investments in leases - financing receivables	(202,683)		—
Investments in loans		(15,559)		—
Principal repayments of lease financing receivables		—		282
Principal repayments of loans and receipts of deferred fees		—		20,000
Investments in loans and securities						Investments in loans and securities	(209,302)		(15,559)

Capitalized transaction costs	Capitalized transaction costs	(136)		(599)		Capitalized transaction costs	(220)		(136)

Maturities of short-term investments	Maturities of short-term investments	—		19,973		Maturities of short-term investments	217,342		—

Acquisition of property and equipment	Acquisition of property and equipment	(454)		(1,247)		Acquisition of property and equipment	(988)		(454)
Net cash (used in) provided by investing activities		(4,028,245)		32,409
Net cash used in investing activities						Net cash used in investing activities	(1,468,856)		(4,028,245)

Cash flows from financing activities	Cash flows from financing activities					Cash flows from financing activities
Proceeds from offering of common stock, net	Proceeds from offering of common stock, net	3,219,123		—		Proceeds from offering of common stock, net	1,272,270		3,219,123

Proceeds from Revolving Credit Facility	Proceeds from Revolving Credit Facility	600,000		—		Proceeds from Revolving Credit Facility	352,704		600,000

Repayment of Revolving Credit Facility						Repayment of Revolving Credit Facility	(250,000)		—
Debt issuance costs	Debt issuance costs	(27,285)		—		Debt issuance costs	—		(27,285)
Repurchase of stock for tax withholding	Repurchase of stock for tax withholding	(2,712)		(1,519)		Repurchase of stock for tax withholding	(4,595)		(2,712)
Distributions to non-controlling interest		(2,103)		(2,071)
Distributions to non-controlling interests						Distributions to non-controlling interests	(2,278)		(2,103)
Dividends paid	Dividends paid	(227,863)		(178,008)		Dividends paid	(382,612)		(227,863)
Net cash provided by (used in) financing activities		3,559,160		(181,598)
Net cash provided by financing activities						Net cash provided by financing activities	985,489		3,559,160

Net (decrease) increase in cash, cash equivalents and restricted cash		(170,912)		6,537
Cash, cash equivalents and restricted cash, beginning of period		739,614		315,993
Cash, cash equivalents and restricted cash, end of period		$	568,702	$	322,530

Table of Contents

VICI PROPERTIES INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)


Effect of exchange rate changes on cash, cash equivalents and restricted cash						Effect of exchange rate changes on cash, cash equivalents and restricted cash	74		—

Net increase (decrease) in cash, cash equivalents and restricted cash						Net increase (decrease) in cash, cash equivalents and restricted cash	38,740		(170,912)
Cash, cash equivalents and restricted cash, beginning of period						Cash, cash equivalents and restricted cash, beginning of period	208,933		739,614
Cash, cash equivalents and restricted cash, end of period						Cash, cash equivalents and restricted cash, end of period	$	247,673	$	568,702

Supplemental cash flow information:	Supplemental cash flow information:					Supplemental cash flow information:
Cash paid for interest	Cash paid for interest	$	48,921	$	69,704	Cash paid for interest	$	178,047	$	48,921
Cash paid for income taxes	Cash paid for income taxes	$	2	$	—	Cash paid for income taxes	$	—	$	2
Supplemental non-cash investing and financing activity:	Supplemental non-cash investing and financing activity:					Supplemental non-cash investing and financing activity:
Dividends declared, not paid		$	269,429	$	177,217
Dividends and distributions declared, not paid						Dividends and distributions declared, not paid	$	396,410	$	269,429
Debt issuance costs payable	Debt issuance costs payable	$	465	$	17,341	Debt issuance costs payable	$	—	$	465
Deferred transaction costs payable	Deferred transaction costs payable	$	2,219	$	3,595	Deferred transaction costs payable	$	1,622	$	2,219

Non-cash change in Investments in leases - financing receivables	Non-cash change in Investments in leases - financing receivables	$	6,696	$	4,673	Non-cash change in Investments in leases - financing receivables	$	69,621	$	6,696
Lease liabilities arising from obtaining right-of-use assets		$	208,949	$	—
Obtaining right-of-use assets in exchange for lease liabilities						Obtaining right-of-use assets in exchange for lease liabilities	$	—	$	208,949

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES L.P.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In thousands, except unit and per unit data)


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Assets	Assets					Assets
Real estate portfolio:	Real estate portfolio:					Real estate portfolio:
Investments in leases - sales-type, net	Investments in leases - sales-type, net	$	17,113,699	$	13,136,664	Investments in leases - sales-type, net	$	22,579,820	$	17,172,325

Investments in leases - financing receivables, net	Investments in leases - financing receivables, net	2,650,633		2,644,824		Investments in leases - financing receivables, net	17,051,187		16,740,770
Investments in loans, net		513,128		498,002
Investments in loans and securities, net						Investments in loans and securities, net	886,524		685,793
Investment in unconsolidated affiliate						Investment in unconsolidated affiliate	—		1,460,775
Land	Land	153,576		153,576		Land	153,560		153,560
Cash and cash equivalents	Cash and cash equivalents	533,807		705,566		Cash and cash equivalents	201,002		142,600

Short-term investments						Short-term investments	—		217,342
Other assets	Other assets	661,678		344,014		Other assets	852,072		856,605
Total assets	Total assets	$	21,626,521	$	17,482,646	Total assets	$	41,724,165	$	37,429,770

Liabilities	Liabilities					Liabilities
Debt, net	Debt, net	$	5,297,014	$	4,694,523	Debt, net	$	16,606,240	$	13,739,675
Accrued expenses and deferred revenue	Accrued expenses and deferred revenue	95,258		110,056		Accrued expenses and deferred revenue	214,966		206,643
Distributions payable	Distributions payable	269,276		226,309		Distributions payable	396,813		380,581
Other liabilities	Other liabilities	577,547		361,270		Other liabilities	939,792		937,655
Total liabilities	Total liabilities	6,239,095		5,392,158		Total liabilities	18,157,811		15,264,554

Commitments and contingent liabilities (Note 10)	Commitments and contingent liabilities (Note 10)	0		0		Commitments and contingent liabilities (Note 10)

Partners’ Capital	Partners’ Capital					Partners’ Capital
Partners’ capital, 748,413,311 and 628,942,092 operating partnership units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		15,198,823		12,010,698
Partners’ capital, 1,016,436,291 and 975,327,936 operating partnership units issued and outstanding as of March 31, 2023 and December 31, 2022, respectively						Partners’ capital, 1,016,436,291 and 975,327,936 operating partnership units issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	23,316,182		21,900,511
Accumulated other comprehensive income	Accumulated other comprehensive income	109,495		884		Accumulated other comprehensive income	170,107		185,201
Total VICI LP’s capital	Total VICI LP’s capital	15,308,318		12,011,582		Total VICI LP’s capital	23,486,289		22,085,712
Non-controlling interest	Non-controlling interest	79,108		78,906		Non-controlling interest	80,065		79,504
Total capital attributable to partners	Total capital attributable to partners	15,387,426		12,090,488		Total capital attributable to partners	23,566,354		22,165,216
Total liabilities and partners’ capital	Total liabilities and partners’ capital	$	21,626,521	$	17,482,646	Total liabilities and partners’ capital	$	41,724,165	$	37,429,770

Table of Contents

VICI PROPERTIES L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(UNAUDITED)

(In thousands, except unit and per unit data)


		Three Months Ended March 31,					Three Months Ended March 31,
		2022		2021			2023		2022
Revenues	Revenues					Revenues
Income from sales-type leases	Income from sales-type leases	$	326,735	$	290,146	Income from sales-type leases	$	478,394	$	326,735

Income from lease financing receivables and loans		72,878		70,377
Income from lease financing receivables, loans and securities						Income from lease financing receivables, loans and securities	371,069		72,878
Other income	Other income	8,386		6,974		Other income	18,339		8,386
Total revenues	Total revenues	407,999		367,497		Total revenues	867,802		407,999

Operating expenses	Operating expenses					Operating expenses
General and administrative	General and administrative	9,466		8,085		General and administrative	15,005		9,466
Depreciation	Depreciation	30		32		Depreciation	31		30
Other expenses	Other expenses	8,386		6,974		Other expenses	18,339		8,386
Change in allowance for credit losses	Change in allowance for credit losses	80,820		(4,380)		Change in allowance for credit losses	111,477		80,820
Transaction and acquisition expenses	Transaction and acquisition expenses	755		8,721		Transaction and acquisition expenses	(958)		755
Total operating expenses	Total operating expenses	99,457		19,432		Total operating expenses	143,894		99,457

Income from unconsolidated affiliate						Income from unconsolidated affiliate	1,280		—
Interest expense	Interest expense	(68,142)		(77,048)		Interest expense	(204,360)		(68,142)
Interest income	Interest income	90		16		Interest income	2,490		90

Other gains (losses)						Other gains (losses)	1,963		—
Income before income taxes	Income before income taxes	240,490		271,033		Income before income taxes	525,281		240,490
Income tax expense	Income tax expense	162		(142)		Income tax expense	(366)		162
Net income	Net income	240,652		270,891		Net income	524,915		240,652
Less: Net income attributable to non-controlling interest	Less: Net income attributable to non-controlling interest	(2,305)		(2,298)		Less: Net income attributable to non-controlling interest	(2,839)		(2,305)
Net income attributable to partners	Net income attributable to partners	$	238,347	$	268,593	Net income attributable to partners	$	522,076	$	238,347

Net income per Partnership unit	Net income per Partnership unit					Net income per Partnership unit
Basic	Basic	$	0.35	$	0.50	Basic	$	0.51	$	0.35
Diluted	Diluted	$	0.35	$	0.49	Diluted	$	0.51	$	0.35

Weighted average number of Partnership units outstanding	Weighted average number of Partnership units outstanding					Weighted average number of Partnership units outstanding
Basic	Basic	684,341,045		536,480,505		Basic	1,013,758,018		684,341,045
Diluted	Diluted	687,914,683		544,801,802		Diluted	1,016,062,698		687,914,683

Other comprehensive income	Other comprehensive income					Other comprehensive income
Net income attributable to partners	Net income attributable to partners	$	238,347	$	268,593	Net income attributable to partners	$	522,076	$	238,347
Unrealized gain on cash flow hedges		108,611		12,378

Reclassification of derivative gain to Interest expense						Reclassification of derivative gain to Interest expense	(6,037)		—
Unrealized (loss) gain on cash flow hedges						Unrealized (loss) gain on cash flow hedges	(7,393)		108,611
Foreign currency translation adjustments						Foreign currency translation adjustments	(1,664)		—
Comprehensive income attributable to partners	Comprehensive income attributable to partners	$	346,958	$	280,971	Comprehensive income attributable to partners	$	506,982	$	346,958

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES L.P.

CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL

(UNAUDITED)

(In thousands, except unit and per unit data)


		Partners’ Capital		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interest		Total			Partners’ Capital		Accumulated Other Comprehensive Income		Non-Controlling Interest		Total
Balance as of December 31, 2020		$	9,417,794	$	(92,521)	$	77,906	$	9,403,179
Balance as of December 31, 2021										Balance as of December 31, 2021	$	12,010,698	$	884	$	78,906	$	12,090,488
Net income	Net income	268,593		—		2,298.000		270,891		Net income	238,348		—		2,305		240,653

Contributions from parent		13,173		—		—		13,173
Distributions to parent		(189,915)		—		—		(189,915)
Contributions from Parent										Contributions from Parent	3,229,165		—		—		3,229,165
Distributions to Parent										Distributions to Parent	(281,990)		—		—		(281,990)
Distributions to non-controlling interest	Distributions to non-controlling interest	—		—		(2,071)		(2,071)		Distributions to non-controlling interest	—		—		(2,103)		(2,103)
Stock-based compensation, net of forfeitures	Stock-based compensation, net of forfeitures	2,252		—		—		2,252		Stock-based compensation, net of forfeitures	2,602		—		—		2,602
Unrealized gain on cash flow hedges	Unrealized gain on cash flow hedges	—		12,378		—		12,378		Unrealized gain on cash flow hedges	—		108,611		—		108,611

Balance as of March 31, 2021		$	9,511,897	$	(80,143)	$	78,133	$	9,509,887
Balance as of March 31, 2022										Balance as of March 31, 2022	$	15,198,823	$	109,495	$	79,108	$	15,387,426

Balance as of December 31, 2021		$	12,010,698	$	884	$	78,906	$	12,090,488

Balance as of December 31, 2022										Balance as of December 31, 2022	$	21,900,511	$	185,201	$	79,504	$	22,165,216
Net income	Net income	238,348		—		2,305		240,653		Net income	522,076		—		2,839		524,915

Contributions from parent		3,229,165		—		—		3,229,165
Distributions to parent		(281,990)		—		—		(281,990)
Contributions from Parent										Contributions from Parent	1,303,243		—		—		1,303,243
Distributions to Parent										Distributions to Parent	(408,519)		—		—		(408,519)
Distributions to non-controlling interest	Distributions to non-controlling interest	—		—		(2,103)		(2,103)		Distributions to non-controlling interest	—		—		(2,278)		(2,278)
Stock-based compensation, net of forfeitures	Stock-based compensation, net of forfeitures	2,602		—		—		2,602		Stock-based compensation, net of forfeitures	(1,129)		—		—		(1,129)
Unrealized gain on cash flow hedges		—		108,611		—		108,611
Reclassification of derivative gain to Interest expense										Reclassification of derivative gain to Interest expense	—		(6,037)		—		(6,037)
Unrealized loss on cash flow hedges										Unrealized loss on cash flow hedges	—		(7,393)		—		(7,393)
Foreign currency translation adjustments										Foreign currency translation adjustments	—		(1,664)		—		(1,664)
Balance as of March 31, 2023										Balance as of March 31, 2023	$	23,316,182	$	170,107	$	80,065	$	23,566,354

Balance as of March 31, 2022		$	15,198,823	$	109,495	$	79,108	$	15,387,426

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)


		Three Months Ended March 31,					Three Months Ended March 31,
		2022		2021			2023		2022
Cash flows from operating activities	Cash flows from operating activities					Cash flows from operating activities
Net income	Net income	$	240,652	$	270,891	Net income	$	524,915	$	240,652
Adjustments to reconcile net income to cash flows provided by operating activities:	Adjustments to reconcile net income to cash flows provided by operating activities:					Adjustments to reconcile net income to cash flows provided by operating activities:
Non-cash leasing and financing adjustments	Non-cash leasing and financing adjustments	(35,564)		(28,134)		Non-cash leasing and financing adjustments	(122,834)		(35,564)
Stock-based compensation	Stock-based compensation	2,602		2,252		Stock-based compensation	3,467		2,602
Depreciation	Depreciation	30		32		Depreciation	31		30
Amortization of debt issuance costs and original issue discount	Amortization of debt issuance costs and original issue discount	15,977		6,692		Amortization of debt issuance costs and original issue discount	13,641		15,977
Change in allowance for credit losses	Change in allowance for credit losses	80,820		(4,380)		Change in allowance for credit losses	111,477		80,820
Income from unconsolidated affiliate						Income from unconsolidated affiliate	(1,280)		—
Distributions from unconsolidated affiliate						Distributions from unconsolidated affiliate	3,273		—

Foreign currency remeasurement gain						Foreign currency remeasurement gain	(1,963)		—
Change in operating assets and liabilities:	Change in operating assets and liabilities:					Change in operating assets and liabilities:
Other assets	Other assets	(1,513)		(1,095)		Other assets	4,227		(1,513)
Accrued expenses and deferred revenue	Accrued expenses and deferred revenue	(9,790)		(89,781)		Accrued expenses and deferred revenue	(19,225)		(9,790)
Other liabilities	Other liabilities	4		(127)		Other liabilities	(1,456)		4
Net cash provided by operating activities	Net cash provided by operating activities	293,218		156,350		Net cash provided by operating activities	514,273		293,218

Cash flows from investing activities	Cash flows from investing activities					Cash flows from investing activities
Net cash paid in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition						Net cash paid in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition	(1,266,905)		—
Investments in leases - sales-type	Investments in leases - sales-type	(4,012,096)		—		Investments in leases - sales-type	(6,100)		(4,012,096)
Investments in leases - financing receivables	Investments in leases - financing receivables	—		(6,000)		Investments in leases - financing receivables	(202,683)		—
Investments in loans		(15,559)		—
Principal repayments of lease financing receivables		—		282
Principal repayments of loans and receipts of deferred fees		—		20,000
Investments in loans and securities						Investments in loans and securities	(209,302)		(15,559)

Capitalized transaction costs	Capitalized transaction costs	(136)		(599)		Capitalized transaction costs	(220)		(136)

Maturities of short-term investments	Maturities of short-term investments	—		19,973		Maturities of short-term investments	217,342		—

Acquisition of property and equipment		—		(13)
Net cash (used in) provided by investing activities		(4,027,791)		33,643

Net cash used in investing activities						Net cash used in investing activities	(1,467,868)		(4,027,791)

Cash flows from financing activities	Cash flows from financing activities					Cash flows from financing activities
Contributions from Parent						Contributions from Parent	1,296,270		3,219,202
Distributions to Parent						Distributions to Parent	(380,178)		(227,000)

Proceeds from Revolving Credit Facility	Proceeds from Revolving Credit Facility	600,000		—		Proceeds from Revolving Credit Facility	352,704		600,000

Contributions from Parent		3,219,202		—
Distribution to Parent		(227,000)		(177,000)
Repayment of Revolving Credit Facility						Repayment of Revolving Credit Facility	(250,000)		—
Debt issuance costs	Debt issuance costs	(27,285)		—		Debt issuance costs	—		(27,285)
Distributions to non-controlling interests		(2,103)		(2,071)
Net cash provided by (used in) financing activities		3,562,814		(179,071)
Repurchase of stock for tax withholding						Repurchase of stock for tax withholding	(4,595)		—
Distributions to non-controlling interest						Distributions to non-controlling interest	(2,278)		(2,103)
Net cash provided by financing activities						Net cash provided by financing activities	1,011,923		3,562,814

Net (decrease) increase in cash, cash equivalents and restricted cash		(171,759)		10,922
Effect of exchange rate changes on cash, cash equivalents and restricted cash						Effect of exchange rate changes on cash, cash equivalents and restricted cash	74		—

Net increase (decrease) in cash, cash equivalents and restricted cash						Net increase (decrease) in cash, cash equivalents and restricted cash	58,402		(171,759)
Cash, cash equivalents and restricted cash, beginning of period	Cash, cash equivalents and restricted cash, beginning of period	705,566		286,245		Cash, cash equivalents and restricted cash, beginning of period	142,600		705,566
Cash, cash equivalents and restricted cash, end of period	Cash, cash equivalents and restricted cash, end of period	$	533,807	$	297,167	Cash, cash equivalents and restricted cash, end of period	$	201,002	$	533,807

Table of Contents

VICI PROPERTIES L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)


Supplemental cash flow information:	Supplemental cash flow information:					Supplemental cash flow information:
Cash paid for interest	Cash paid for interest	$	48,921	$	69,704	Cash paid for interest	$	178,047	$	48,921
Cash paid for income taxes	Cash paid for income taxes	$	2	$	—	Cash paid for income taxes	$	—	$	2
Supplemental non-cash investing and financing activity:	Supplemental non-cash investing and financing activity:					Supplemental non-cash investing and financing activity:
Distributions payable	Distributions payable	$	269,276	$	177,089	Distributions payable	$	396,410	$	269,276
Debt issuance costs payable	Debt issuance costs payable	$	465	$	17,341	Debt issuance costs payable	$	—	$	465
Deferred transaction costs payable	Deferred transaction costs payable	$	2,219	$	3,595	Deferred transaction costs payable	$	1,622	$	2,219
Non-cash change in Investments in leases - financing receivables	Non-cash change in Investments in leases - financing receivables	$	6,696	$	4,673	Non-cash change in Investments in leases - financing receivables	$	69,621	$	6,696
Lease liabilities arising from obtaining right-of-use assets		$	208,949	$	—
Obtaining right-of-use assets in exchange for lease liabilities						Obtaining right-of-use assets in exchange for lease liabilities	$	—	$	208,949

See accompanying Notes to Consolidated Financial Statements.

Table of Contents

VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

In these notes, the words the “Company,” “VICI,” “we,” “our,” and “us” refer to VICI Properties Inc. and its subsidiaries, including VICI LP, on a consolidated basis, unless otherwise stated or the context requires otherwise.

We refer to (i) our Condensed Consolidated Financial Statements as our “Financial Statements,” (ii) our Consolidated Balance Sheets as our “Balance Sheet,” (iii) our Consolidated Statements of Operations and Comprehensive Income as our “Statement of Operations,” and (iv) our Consolidated Statement of Cash Flows as our “Statement of Cash Flows.” References to numbered “Notes” refer to the Notes to our Consolidated Financial Statements.

“Apollo” refers to Apollo Global Management, Inc., a Delaware corporation, and, as the context requires, certain of its subsidiaries and affiliates.

“April 2022 Notes” refer collectively to (i) the $500.0 million aggregate principal amount of 4.375% senior unsecured notes due 2025, (ii) the $1,250.0 million aggregate principal amount of 4.750% senior unsecured notes due 2028, (iii) the $1,000.0 million aggregate principal amount of 4.950% senior unsecured notes due 2030, (iv) the $1,500.0 million aggregate principal amount of 5.125% senior unsecured notes due 2032, and (v) the $750.0 million aggregate principal amount of 5.625% senior unsecured notes due 2052, in each case issued by VICI LP in April 2022.

“~~BREIT JV” refers to the joint venture between MGP and Blackstone Real Estate Income Trust, Inc. in which the Company retained MGP’s 50.1% ownership stake pursuant to the MGP Transactions.~~

~~“BREIT JV Lease” refers to the lease agreement for MGM Grand Las Vegas and Mandalay Bay.~~

“Caesars” refers to Caesars Entertainment, Inc., a Delaware corporation and, as the context requires, its subsidiaries.

“Caesars Las Vegas Master Lease” refers to the lease agreement for Caesars Palace Las Vegas and the Harrah’s Las Vegas facilities, as amended from time to time.

“Caesars Leases” refer collectively to the Caesars Las Vegas Master Lease, the Caesars Regional Master Lease and the Joliet Lease, in each case, unless the context otherwise requires.

“Caesars Regional Master Lease” refers to the lease agreement for the regional properties (other than the facility in Joliet, Illinois) leased to Caesars, as amended from time to time.

“Caesars Southern Indiana” refers to the real estate assets associated with the Caesars Southern Indiana Casino and Hotel, located in Elizabeth, Indiana, the operations of which were purchased by EBCI from Caesars on September 3, 2021, and which retained the Caesars brand name in accordance with the terms of a licensing agreement negotiated between EBCI and Caesars.

“Century Casinos” refers to Century Casinos, Inc., a Delaware corporation, and, as the context requires, its subsidiaries.

“Century ~~Portfolio”~~Master Lease” refers to the ~~real estate assets associated with~~lease agreement for the (i) Mountaineer Casino, Racetrack & Resort located in New Cumberland, West Virginia, (ii) Century Casino Caruthersville located in Caruthersville, Missouri and (iii) Century Casino Cape Girardeau located in Cape Girardeau, Missouri, ~~which we purchased on December 6, 2019.~~

~~“Century Portfolio Lease” refers to the lease agreement for the Century Portfolio,~~ as amended from time to time.

“~~Chelsea Piers Mortgage Loan”~~CNB” refers to ~~an $80.0 million mortgage loan agreement entered into on August 31, 2020 with Chelsea Piers New York with a term of seven years~~Cherokee Nation Businesses, L.L.C., and, ~~secured by~~as the ~~Chelsea Piers complex in New York City.~~context requires, its subsidiaries.

“Co-Issuer” refers to VICI Note Co. Inc., a Delaware corporation, and co-issuer of the November 2019 Notes, February 2020 Notes and Exchange Notes.

“Credit Agreement” refers to the Credit Agreement, dated as of February 8, 2022, by and among VICI LP, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, as amended from time to time.

“Credit Facilities” ~~refers~~refer collectively to the Delayed Draw Term Loan and the Revolving Credit Facility.

~~“CSI Lease” refers to the lease agreement for Caesars Southern Indiana, as amended from time to time.~~

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~~(UNAUDITED)~~

“Delayed Draw Term Loan” refers to the three-year unsecured delayed draw term loan facility of VICI LP provided under the Credit ~~Agreement.~~Agreement entered into in February 2022, which expired undrawn in accordance with its terms on February 8, 2023.

“EBCI” refers to the Eastern Band of Cherokee Indians, a federally recognized Tribe located in western North Carolina, and, as the context requires, its subsidiary and affiliate entities.

“Exchange Notes” refer collectively to (i) the $1,024.2 million aggregate principal amount of 5.625% senior unsecured notes due 2024, (ii) the $799.4 million aggregate principal amount of 4.625% senior unsecured notes due 2025, (iii) the $480.5 million aggregate principal amount of 4.500% senior unsecured notes due 2026, (iv) the $729.5 million aggregate principal amount of 5.750% senior unsecured notes due 2027, (v) the $349.3 million aggregate principal amount of 4.500% senior unsecured notes due 2028, and (vi) the $727.1 million aggregate principal amount of 3.875% senior unsecured notes due 2029, in each case issued by VICI LP and Co-Issuer, in April 2022 pursuant to the Exchange Offers and Consent Solicitations (as defined herein).

“February 2020 Notes” refer collectively to (i) the $750.0 million aggregate principal amount of 3.500% senior unsecured notes due 2025, (ii) the $750.0 million aggregate principal amount of 3.750% senior unsecured notes due 2027, and (iii) the $1.0 billion aggregate principal amount of 4.125% senior unsecured notes due 2030, in each case issued by VICI LP and ~~Co-Issuer~~Co-

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Issuer in February 2020.

“Forum Convention Center Mortgage Loan” refers to a $400.0 million mortgage loan agreement entered into on September 18, 2020 with ~~a subsidiary of~~ Caesars ~~with~~for a term of five years and secured by, among other things, the Caesars Forum Convention Center in Las ~~Vegas.~~Vegas which was repaid in full on May 1, 2023. In connection therewith, the Company’s call right under the put-call agreement relating to the Caesars Forum Convention Center was extended from December 31, 2026 to December 31, 2028.

“~~Greektown”~~Foundation Gaming” refers to Foundation Gaming & Entertainment, LLC and, as the context requires, its subsidiaries.

“Foundation Master Lease” refers to the ~~real estate assets associated with~~lease agreement for the ~~Greektown Casino-Hotel,~~Fitz Casino & Hotel, located in ~~Detroit, Michigan, which we purchased on May 23, 2019.~~Tunica, Mississippi, and the WaterView Casino & Hotel, located in Vicksburg, Mississippi, as amended from time to time.

“Gold Strike Lease” refers to the lease agreement with CNB for the Gold Strike Casino Resort, located in Tunica, Mississippi (“Gold Strike”), as amended from time to time.

“Greektown Lease” refers to the lease agreement for the Greektown Casino-Hotel, located in Detroit, Michigan, as amended from time to time.

“Hard Rock” means Hard Rock International, and, as the context requires, its subsidiary and affiliate entities.

“Hard Rock ~~Cincinnati”~~Cincinnati Lease” refers to the ~~casino-entitled land and real estate and related assets associated with~~lease agreement for the Hard Rock Cincinnati Casino, located in Cincinnati, Ohio, ~~which we purchased on September 20, 2019.~~

~~“Hard Rock Cincinnati Lease” refers to the lease agreement for Hard Rock Cincinnati, as amended from time to time.~~

“Harrah’s Original Call Properties” refers to the land and real estate assets associated with Harrah’s New Orleans, Harrah’s Laughlin and Harrah’s Atlantic City, which we purchased on July 20, 2020.

“JACK Cleveland/Thistledown” refers to the casino-entitled land and real estate and related assets associated with the JACK Cleveland Casino located in Cleveland, Ohio, and the video lottery gaming and pari-mutuel wagering authorized land and real estate and related assets of JACK Thistledown Racino located in North Randall, Ohio, which we purchased on January 24, 2020.

~~“JACK Cleveland/Thistledown Lease” refers to the lease agreement for JACK Cleveland/Thistledown,~~ as amended from time to time.

“JACK Entertainment” refers to JACK Ohio LLC, and, as the context requires, its subsidiary and affiliate entities.

“JACK Master Lease” refers to the lease agreement for the JACK Cleveland Casino located in Cleveland, Ohio, and the JACK Thistledown Racino facility located in North Randall, Ohio, as amended from time to time.

“Joliet Lease” refers to the lease agreement for the facility in Joliet, Illinois, as amended from time to time.

“Lease Agreements” refer collectively to the BREIT JV Lease, the Caesars Leases, the Century Portfolio Lease, the CSI Lease, the Hard Rock Cincinnati Lease, the JACK Cleveland/Thistledown Lease, the MGM Master Lease, the Penn National Leases, and the Venetian Lease,our leases with our respective tenants, unless the context otherwise requires.

~~“Margaritaville” refers to the real estate of Margaritaville Resort Casino, located in Bossier City, Louisiana, which we purchased on January 2, 2019.~~

“Margaritaville Lease” refers to the lease agreement for Margaritaville Resort Casino, located in Bossier City, Louisiana, as amended from time to time.

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~~(UNAUDITED)~~

“Mergers” refer to a series of transactions governed by the MGP Master Transaction Agreement that occurred on April 29, 2022, consisting of (i) the contribution of our interest in VICI LP to VICI OP, which subsequent to the MGP Transactions serves as our new operating partnership, followed by (ii) the merger of MGP with and into Venus Sub LLC, a Delaware limited liability company and wholly owned subsidiary of VICI LP (“REIT Merger Sub”), with REIT Merger Sub surviving the merger, followed by (iii) the distribution by REIT Merger Sub of the interests of the general partner of MGP OP to VICI LP and (iv) the merger of REIT Merger Sub with and into MGP OP, with MGP OP surviving such merger.

“MGM” refers to MGM Resorts International, a Delaware corporation, and, as the context requires, its subsidiaries.

“MGM Grand/Mandalay Bay JV” refers to a joint venture that holds the real estate assets of MGM Grand Las Vegas and Mandalay Bay, in which we hold a 100% ownership stake following our acquisition of the remaining 49.9% ownership stake from our former joint venture partner on January 9, 2023, as further described herein.

“MGM Grand/Mandalay Bay Lease” refers to the lease agreement for MGM Grand Las Vegas and Mandalay Bay, as amended from time to time.

“MGM Leases” refer collectively to the MGM Master Lease and the MGM Grand/Mandalay Bay Lease, in each case, unless the context otherwise requires.

“MGM Master Lease” refers to the lease agreement for the ~~wholly-owned~~ properties leased to ~~MGM.~~

“MGM, ~~Tax Protection Agreement” refers~~excluding those leased under the MGM Grand/Mandalay Bay Lease, as amended from time to ~~the form of tax protection agreement entered into with MGM upon consummation of the MGP Transactions.~~time.

“MGP” refers to MGM Growth Properties LLC, a Delaware limited liability company, which was acquired by the Company on April 29, 2022, and, as the context requires, its subsidiaries.

“MGP Master Transaction Agreement” refers to that certain Master Transaction Agreement between the Company, MGP, MGP OP, VICI LP, REIT Merger Sub, VICI OP, and MGM entered into on August 4, 2021.

“MGP OP” refers to MGM Growth Properties Operating Partnership LP, a Delaware limited partnership, which was acquired by the Company on April 29, 2022, and, as the context requires, its subsidiaries.

“MGP OP Notes” refer collectively to the notes issued by MGP OP and MGP Finance Co-Issuer, Inc. (“MGP Co-Issuer” and, together with MGP OP, the “MGP Issuers”), consisting of (i) the 5.625% Senior Notes due 2024 issued pursuant to the indenture, dated as of April 20, 2016, (ii) the 4.625% Senior Notes due 2025 issued pursuant to the indenture, dated as of June 5, 2020, (iii) the 4.500% Senior Notes due 2026 issued pursuant to the indenture, dated as of August 12, 2016, (iv) the 5.750% Senior Notes due 2027 issued pursuant to the indenture, dated as of January 25, 2019, (v) the 4.500% Senior Notes due 2028 issued pursuant to the indenture, dated as of September 21, 2017, and (vi) the 3.875% Senior Notes due 2029 issued pursuant

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to the indenture, dated as of November 19, 2020, in each case, as amended or supplemented as of the date hereof, among the MGP Issuers and U.S. Bank National Association, as trustee (the “MGP Trustee”).

“MGP Transactions” refer collectively to a series of transactions pursuant to the MGP Master Transaction Agreement ~~between us, MGP and MGM and the other parties thereto~~ in connection with our acquisition of MGP on April 29, 2022, as contemplated by the MGP Master Transaction Agreement, including the tax protection agreement with MGM ~~Tax Protection Agreement~~ and the MGM Master Lease.

“Mirage Lease” refers to the lease agreement with Hard Rock for the Mirage, located in Las Vegas, Nevada, as amended from time to time.

“November 2019 Notes” refer collectively to (i) the $1.25 billion aggregate principal amount of 4.250% senior unsecured notes due 2026, and (ii) the $1.0 billion aggregate principal amount of 4.625% senior unsecured notes due 2029, in each case issued by the VICI ~~LP and VICI Note Co. Inc., as Co-Issuer,~~Issuers in November 2019.

“Partner Property Growth Fund” refers to certain arrangements with certain tenants relating to our funding of “same-store” capital improvements, including redevelopment, new construction projects and other property improvements, in exchange for increased rent pursuant to the terms of our existing Lease Agreements with such tenants.

“~~Penn National”~~PENN Entertainment” refers to ~~Penn National Gaming,~~PENN Entertainment, Inc., a Pennsylvania corporation, and, as the context requires, its subsidiaries.

“~~Penn National~~PENN Entertainment Leases” refer collectively to the Margaritaville Lease and the Greektown Lease, unless the context otherwise requires.

“PURE Canadian Gaming” refers to PURE Canadian Gaming, Corp., an Alberta corporation, and, as the context requires, its subsidiaries.

“PURE Master Lease” refers to the lease agreement for the (i) PURE Casino Edmonton located in Edmonton, Alberta, (ii) PURE Casino Yellowhead located in Edmonton, Alberta, (iii) PURE Casino Calgary located in Calgary, Alberta and (iv) PURE Casino Lethbridge located in Lethbridge, Alberta (collectively, the “PURE Portfolio”), as amended from time to time.

“Revolving Credit Facility” refers to the four-year unsecured revolving credit facility of VICI LP provided under the Credit Agreement entered into ~~by VICI PropCo,~~in February 2022, as amended from time to time.

~~“Secured Revolving Credit Facility” refers to the five-year first lien revolving credit facility entered into by VICI PropCo in December 2017, as amended, which was terminated on February 8, 2022.~~

“Seminole Hard Rock” refers to Seminole Hard Rock Entertainment, Inc.

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~~(UNAUDITED)~~

“Senior Unsecured Notes” refer collectively to the November 2019 Notes, the February 2020 Notes, the April 2022 Notes, ~~and~~ the Exchange Notes and the MGP OP Notes.

“~~Term Loan B Facility”~~Southern Indiana Lease” refers to the ~~seven-year senior secured first lien term loan B facility entered into by VICI PropCo~~lease agreement with EBCI for the Caesars Southern Indiana Casino and Hotel, located in ~~December 2017,~~Elizabeth, Indiana (“Caesars Southern Indiana”), as amended from time to ~~time, which was repaid in full on September 15, 2021.~~time.

“Venetian Acquisition” refers to our acquisition of the Venetian Resort, with Apollo, which closed on February 23, 2022.

“Venetian Lease” refers to the lease agreement for the Venetian ~~Resort.~~

~~“Venetian Resort” refers to the land and real estate assets associated with the Venetian~~ Resort Las Vegas and Venetian Convention & Expo Center, located in Las Vegas, Nevada ~~which we purchased on February 23, 2022.~~(the “Venetian Resort”), as amended from time to time.

“Venetian Tenant” refers to an affiliate of certain funds managed by affiliates of Apollo.

“VICI Golf” refers to VICI Golf LLC, a Delaware limited liability company that is the owner ~~and operator~~ of our golf ~~segment~~ business.

“VICI Issuers” ~~refers~~refer to VICI ~~Properties L.P., a Delaware limited partnership~~LP and VICI Note Co. Inc., a Delaware corporation.

“VICI LP” ~~or the “Partnership”~~ refers to VICI Properties L.P., a Delaware limited partnership and a wholly owned subsidiary of ~~VICI.~~VICI OP.

“VICI OP” refers to VICI Properties OP LLC, a Delaware limited liability company and ~~an indirect wholly owned~~a consolidated subsidiary of VICI, which serves as our operating ~~partnership following the closing of the MGP Transactions.~~partnership.

“VICI OP Units” refer to limited liability company interests in VICI OP.

“VICI PropCo” refers to VICI Properties 1 LLC, a Delaware limited liability company and an indirect wholly owned subsidiary of VICI.

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Note 1 — Business and Organization

Business

We are primarily engaged in the business of owning and acquiring gaming, hospitality and entertainment destinations, subject to long-term triple-net leases. As of March 31, ~~2022,~~2023, our ~~national,~~ geographically diverse real estate portfolio consisted of ~~28 market-leading properties,~~49 gaming facilities in the United States and Canada, including Caesars Palace Las Vegas, MGM Grand and the Venetian ~~Resort (and following the closing of the MGP Transactions on April 29, 2022, our portfolio consists of 43 properties, including MGM Grand, Mandalay Bay and MGM National Harbor).~~Resort. Our properties are leased to, and our tenants are, subsidiaries of, or entities managed by, Apollo, Caesars, ~~Penn National,~~Century Casinos, CNB, EBCI, Foundation Gaming, JACK Entertainment, MGM, PENN Entertainment, PURE Canadian Gaming and Seminole Hard Rock, ~~Century Casinos, JACK Entertainment, EBCI~~with Caesars and ~~Apollo (and following the closing of the MGP Transactions, MGM).~~MGM being our largest tenants. VICI also owns ~~and operates 4~~four championship golf courses located near certain of our properties.

VICI, the parent company, is a Maryland corporation and internally managed real estate investment trust (“REIT”) for U.S. federal income tax purposes. Our real property business, which represents the substantial majority of our assets, is conducted through VICI OP and indirectly through VICI LP and our golf course business, VICI Golf, is conducted through a direct ~~wholly-owned~~wholly owned taxable REIT subsidiary ~~(a “TRS”~~(“TRS”) of VICI. As a REIT, we generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

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~~(UNAUDITED)~~

~~Impact of the COVID-19 Pandemic on our Business~~

Since the emergence of the COVID-19 pandemic in early 2020, among the broader public health, societal and global impacts, the pandemic has resulted in governmental and/or regulatory actions imposing, among other things, temporary closures or restrictions from time to time on our tenants’ operations at our properties and our golf course operations. Although all of our leased properties and our golf courses are currently open and operating, without restriction in some jurisdictions, they remain subject to any current or future operating limitations, restrictions or closures imposed by governmental and/or regulatory authorities. While our tenants’ recent performance at many of our leased properties has been at or above pre-pandemic levels, our tenants may continue to face additional challenges and uncertainty due to the impact of the COVID-19 pandemic, such as complying with operational and capacity restrictions and ensuring sufficient employee staffing and service levels, and the sustainability of maintaining improved operating margins and financial performance. Due to prior closures, operating restrictions and other factors, our tenants’ operations, liquidity and financial performance have been adversely affected, and the ongoing nature of the pandemic, including emerging variants, may further adversely affect our tenants’ businesses and, accordingly, our business and financial performance could be adversely affected in the future.

All of our tenants have fulfilled their rent obligations through April 2022 and we regularly engage with our tenants in connection with their business performance, operations, liquidity and financial results. As a triple-net lessor, we believe we are generally in a strong creditor position and structurally insulated from operational and performance impacts of our tenants, both positive and negative. However, the full extent to which the COVID-19 pandemic continues to adversely affect our tenants, and ultimately impacts us, depends on future developments which cannot be predicted with confidence, including the actions taken to contain the pandemic or mitigate its impact, including the availability, distribution, public acceptance and efficacy of approved vaccines, new or mutated variants of COVID-19 (including vaccine-resistant variants) or a similar virus, the direct and indirect economic effects of the pandemic and containment measures on our tenants, our tenants’ financial performance and any future operating limitations or closures.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information set forth in the Accounting Standards Codification (“ASC”), as published by the Financial Accounting Standards Board (“FASB”), and with the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements, including the notes thereto, are unaudited and condense or exclude some of the disclosures and information normally required in audited financial statements.

We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the accompanying unaudited ~~consolidated financial statements~~Financial Statements and related notes should be read in conjunction with ~~VICI’s~~our audited financial statements and notes thereto included in ~~VICI’s~~our most recent Annual Report on Form 10-K ~~and VICI LP’s audited financial statements and notes thereto included as an~~ ~~exhibit~~ to ~~the Current Report on~~ ~~Form 8-K filed onApri~~l 18 ~~, 2022~~, as updated from time to time in our other filings with the SEC.

All adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. Certain prior period amounts have been reclassified to conform to the current period presentation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates.

Operating results for the three months ended March 31, ~~2022~~2023 are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2022.~~

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2023.

Principles of Consolidation ~~and Non-controlling Interest~~

The accompanying consolidated financial statements include our accounts and the accounts of VICI LP, and the subsidiaries in which we or VICI LP has a controlling interest. All intercompany account balances and transactions have been eliminated in consolidation. We consolidate all subsidiaries in which we have a controlling financial interest and ~~VIEs~~variable interest entities for which we or one of our consolidated subsidiaries is the primary beneficiary.

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Non-controlling Interests

We present non-controlling ~~interest~~interests and classify such ~~interest~~interests as a component of consolidated stockholders’ equity or partners’ capital, separate from VICI stockholders’ equity and VICI LP ~~partner’s~~partners’ capital. ~~Our~~As of March 31, 2023, VICI’s non-controlling ~~interest represents~~interests represent an approximate 1.2% third-party ownership of VICI OP in the form of VICI OP Units and a 20% third-party ownership of Harrah’s Joliet LandCo LLC, the entity that owns the Harrah’s Joliet facility and is the lessor under the related Joliet Lease. As VICI OP is a parent entity of VICI LP, VICI LP’s only non-controlling interest is that of third-party ownership of Harrah’s Joliet LandCo LLC.

Cash, Cash Equivalents and Restricted Cash

Cash consists of cash-on-hand and cash-in-bank. Any investments with an original maturity of three months or less from the date of purchase are considered cash equivalents and are carried at cost, which approximates fair value. As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, we did not have any restricted cash.

Short-Term Investments

Investments with an original maturity of greater than three months and less than one year from the date of purchase are considered short-term investments and are stated at fair value.

We may invest our excess cash in short-term investment grade commercial paper as well as discount notes issued by government-sponsored enterprises including the Federal Home Loan Mortgage Corporation and certain of the Federal Home Loan Banks. These investments generally have original maturities between 91 and 180 days and are accounted for as available for sale securities. Interest on our short-term investments is recognized as interest income in our Statement of Operations. We had $217.3 million of short-term investments as of December 31, 2022. We did not have any short-term investments as of March 31, 2023.

Purchase Price Accounting

We assess all of our property acquisitions under ASC 805 - Business Combinations (“ASC 805”) to determine if such acquisitions should be accounted for as a business combination or an asset acquisition. Under ASC 805, an acquisition does not qualify as a business combination when (i) substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets, (ii) the acquisition does not include a substantive process in the form of an acquired workforce, or (iii) an acquired contract that cannot be replaced without significant cost, effort or delay. Generally, and to date, all of our acquisitions have been determined to be asset acquisitions and, in accordance with ASC 805-50, all applicable transaction costs are capitalized as part of the purchase price of the acquisition.

We allocate the purchase price to the identifiable assets acquired and liabilities assumed, as applicable, using their relative fair value. Generally, with the exception of the MGP Transactions and the MGM Grand/Mandalay Bay JV Interest Acquisition (each as further described in Note 3 - P roperty Transactions), our acquisitions consist of properties without existing leases or debt and, accordingly, the assets acquired are comprised of land, building and site improvements. Further, since all the components of our leases are classified as sales-type leases or financing receivables, as further described below, the assets acquired are transferred into the net investment in lease or financing receivable, as applicable.

Investments in Leases - Sales-type, Net

We account for our investments in leases under ASC 842 “Leases” (“ASC 842”). Upon lease inception or lease modification, we assess lease classification to determine whether the lease should be classified as a direct financing, sales-type or operating lease. As required by ASC 842, we separately assess the land and building components of the property to determine the classification of each component. If the lease component is determined to be a direct financing or sales-type lease, we record a net investment in the lease, which is equal to the sum of the lease receivable and the unguaranteed residual asset, discounted at the rate implicit in the lease. Any difference between the fair value of the asset and the net investment in the lease is considered selling profit or loss and is either recognized upon execution of the lease or deferred and recognized over the life of the lease, depending on the classification of the lease. Since we purchase properties and simultaneously enter into new leases directly with the tenants, the net investment in the lease is generally equal to the purchase price of the asset, and, due to the long-term nature of our leases, the land and building components of an investment generally have the same lease classification.

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We have determined that the land and building components of all of ~~our Lease Agreements, excluding~~ the ~~JACK Cleveland/Thistledown Lease and~~Caesars Leases (excluding the Harrah’s ~~Original~~New Orleans, Harrah’s Laughlin and Harrah’s Atlantic City components (the “Harrah’s Call ~~Properties asset components~~Properties”) of the Caesars Regional Master Lease), Century Master Lease, Gold Strike Lease, Hard Rock Cincinnati Lease, MGM Grand/Mandalay Bay Lease, PENN Entertainment Leases, Southern Indiana Lease and Venetian Lease meet the definition of a sales-type lease under ASC 842.

Investments in Leases - Financing Receivables, Net

In accordance with ASC 842, for transactions in which we enter into a contract to acquire an asset and lease it back to the seller under a lease classified as a sales-type lease (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred to us. As a result, we do not recognize the net investment in the lease but instead recognize a financial asset in accordance with ASC 310 “Receivables” (“ASC 310”); however, the accounting for the financing receivable under ASC 310 is materially consistent with the accounting for our investments in leases - sales-type under ASC 842.

We determined that the land and building components of the ~~JACK Cleveland/Thistledown~~Foundation Master Lease, ~~and the~~ Harrah’s ~~Original~~ Call Properties ~~asset~~ components of the Caesars Regional Master Lease, JACK Master Lease, MGM Master Lease and PURE Master Lease meet the definition of a sales-type lease and, since we purchased and leased the assets back to the sellers under sale leaseback transactions, control is not considered to have transferred to us under GAAP. Accordingly, ~~the JACK Cleveland/Thistledown Lease and~~ ~~the Harrah’s Original Call Properties component of the Caesars Regional Master Lease~~such leases are accounted for as Investments in leases - financing receivables on our Balance Sheet, net of allowance for credit losses, in accordance with ASC 310.

Lease Term

We assess the noncancelable lease term under ASC 842, which includes any reasonably assured renewal periods. All of our Lease Agreements provide for an initial term, with multiple tenant renewal options. We have individually assessed all of our Lease Agreements and concluded that the lease term includes all of the periods covered by extension options as it is reasonably certain our tenants will renew the Lease Agreements. We believe our tenants are economically compelled to renew the Lease Agreements due to the importance of our real estate to the operation of their business, the significant capital they have invested and are required to invest in our properties under the terms of the Lease Agreements and the lack of suitable replacement assets.

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~~(UNAUDITED)~~

Income from Leases and Lease Financing Receivables

We recognize the related income from our sales-type leases and lease financing receivables on an effective interest basis at a constant rate of return over the terms of the applicable leases. As a result, the cash payments accounted for under sales-type leases and lease financing receivables will not equal income from our Lease Agreements. Rather, a portion of the cash rent we receive is recorded as Income from sales-type leases or Income from lease financing receivables and loans, as applicable, in our Statement of Operations and a portion is recorded as a change to Investments in leases - sales-type, net or Investments in leases - financing receivables, net, as applicable.

Initial direct costs incurred in connection with entering into investments classified as sales-type leases are included in the balance of the net investment in lease. Such amounts will be recognized as a reduction to Income from investments in leases over the life of the lease using the effective interest method. Costs that would have been incurred regardless of whether the lease was signed, such as legal fees and certain other third-party fees, are expensed as incurred to Transaction and acquisition expenses in our Statement of Operations.

Loan origination fees and costs incurred in connection with entering into investments classified as lease financing receivables are included in the balance of the net investment and such amounts will be recognized as a reduction to Income from investments in loans and lease financing receivables over the life of the lease using the effective interest method.

Investments in Loans and Securities, net

Investments in loans are held-for-investment and are carried at historical cost, inclusive of unamortized loan origination costs and fees and allowances for credit losses. Income is recognized on an effective interest basis at a constant rate of return over the life of the related loan.

We classify our investments in securities on the date of acquisition of the investment as either trading, available-for-sale or held-to-maturity. We classify our debt securities as held-to-maturity, as we have the intent and ability to hold this security until maturity, the accounting of which is materially consistent with that of our Investments in loans.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Allowance for Credit Losses

ASC 326 “Financial Instruments-Credit Losses” (“ASC 326”) requires that we measure and record current expected credit losses (“CECL”) for the majority of our investments, the scope of which includes our Investments in leases - sales-type, Investments in leases - financing receivables and Investments in ~~loans.~~loans and securities.

We have elected to use a discounted cash flow model to estimate the Allowance for credit losses, or CECL allowance for our Investments in leases - sales-type, Investments in leases - financing receivables and certain of our loans and securities, which comprise the substantial majority of our CECL allowance. This model requires us to develop cash flows which project estimated credit losses over the life of the lease, loan or ~~loan~~security and discount these cash flows at the asset’s effective interest rate. We then record a CECL allowance equal to the difference between the amortized cost basis of the asset and the present value of the expected credit loss cash flows.

Expected losses within our cash flows are determined by estimating the probability of default (“PD”) and loss given default (“LGD”) of our tenants and borrowers and their parent guarantors, as applicable, over the life of each individual lease or financial asset. We have engaged a nationally recognized data analytics firm to assist us with estimating both the PD and LGD of our tenants and borrowers and their parent guarantors, as applicable. The PD and LGD are estimated during a reasonable and supportable period for which we believe we are able to estimate future economic conditions (the “R&S Period”) and a long-term period for which we revert to long-term historical averages (the “Long-Term Period”). The PD and LGD estimates for the R&S Period are developed using the current financial condition of the tenant or borrower and parent guarantor, as applicable, and applied to a projection of economic conditions over a two-year term. The PD and LGD for the Long-Term Period are estimated using the average historical default rates and historical loss rates, respectively, of public companies over approximately the past 40 years that have similar credit profiles or characteristics to our tenants, borrowers and their parent guarantors, as applicable. We are unable to use our historical data to estimate losses as we have no loss history to date.

The CECL allowance is recorded as a reduction to our net Investments in leases - sales-type, Investments in leases - financing receivables, Investments in loans and securities and Sales-type sub-leases ~~included~~(included in Other ~~assets~~assets) on our Balance Sheet. We are required to update our CECL allowance on a quarterly basis with the resulting change being recorded in the Statement of Operations for the relevant period. Finally, each time we make a new investment in an asset subject to ASC 326, we are required to record an initial CECL allowance for such asset, which will result in a non-cash charge to the Statement of Operations for the relevant period.

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~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

We are required to estimate a CECL allowance related to contractual commitments to extend credit, such as future funding commitments under a revolving credit facility, delayed draw term loan, construction loan or through commitments made to our tenants to fund the development and construction of improvements at our properties through the Partner Property Growth Fund. We estimate the amount that we will fund for each contractual commitment based on (i) discussions with our borrowers and tenants, (ii) our ~~borrowers'~~borrowers’ and tenants’ business plans and financial condition and (iii) other relevant factors. Based on these considerations, we apply a CECL allowance to the estimated amount of credit we expect to extend. The CECL allowance for unfunded commitments is calculated using the same methodology as the allowance for all of our other investments subject to the CECL model. The CECL allowance related to these future commitments is recorded as a component of Other liabilities on our Balance Sheet.

Charge-offs are deducted from the allowance in the period in which they are deemed uncollectible. Recoveries previously written off are recorded when received. There were no charge-offs or recoveries for the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.

Refer to Note 5 - Allowance for Credit Losses for further information.

Foreign Currency Translation and Remeasurement

Our investment in the PURE Portfolio is denominated in Canadian Dollars (“CAD” or “C$”), and accordingly, we translate the financial statements of the subsidiaries that own the PURE Portfolio into U.S. Dollars (“USD” or “US$”) when we consolidate their financial results and position. Generally, assets and liabilities are translated at the exchange rate in effect at the date of the Balance Sheet and the resulting translation adjustments are included in Accumulated other comprehensive income in the Balance Sheets. Certain balance sheet items, primarily equity and capital-related accounts, are reflected at the historical exchange rate. Income Statement accounts are translated using the average exchange rate for the period.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

We and certain of our consolidated subsidiaries have intercompany and third-party debt that is denominated CAD, which is not our and our consolidated subsidiaries functional currency of USD. When the debt and related operating receivables and/or payables are remeasured to the functional currency of the entity, a gain or loss can result. The resulting adjustment is reflected in Other ~~income~~gains (losses), net in the Statement of Operations.

Other Income and Other ~~expenses~~Expenses

Other income primarily represents sub-lease income related to certain ground and use leases. Under the Lease Agreements, the tenants are required to pay all costs associated with such ground and use leases and provides for their direct payment to the landlord. This income and the related expense are recorded on a gross basis in our Statement of Operations as required under GAAP as we are the primary obligor under these certain ground and use leases.

Fair Value Measurements

We measure the fair value of financial instruments based on assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs.

Refer to Note 9 - Fair Value for further information.

Derivative Financial Instruments

We record our derivative financial instruments as either Other assets or Other liabilities on our Balance Sheet at fair value.

The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. We formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction.

On a quarterly basis, we also assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged transactions. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in Net income prospectively. If the hedge relationship is terminated, then the value of the derivative previously recorded in Accumulated other comprehensive income (loss) is recognized in earnings when the hedged transactions affect earnings. Changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of Accumulated other comprehensive income (loss) onin our Balance Sheet with a corresponding change in Unrealized gain (loss) onin cash flows hedges within Other comprehensive income on our Statement of Operations.

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~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

We use derivative instruments to mitigate the effects of interest rate volatility, whether from variable rate debt or future forecasted transactions, which could unfavorably impact our future earnings and forecasted cash flows. We do not use derivative instruments for speculative or trading purposes.

Concentrations of Credit Risk

Caesars isand MGM are the ~~guarantor~~guarantors of all the lease payment obligations of the tenants under the ~~respective~~applicable leases of the properties that ~~it leases~~they each respectively lease from us. Revenue from the Caesars Leases represented ~~76% and 86%~~38% of our lease revenues for the three months ended March 31, ~~2022~~2023 and ~~2021, respectively. Additionally, our properties on the Las Vegas Strip generated approximately 38% and 32%~~76% of our lease revenues for the three months ended March 31, 2022. Revenue from the MGM Leases represented 39% of our lease revenues for the three months ended March 31, 2023. We did not have any revenue from the MGM Leases for the three months ended March 31, 2022 as the MGP Transactions closed on April 29, 2022. Additionally, our properties on the Las Vegas Strip generated approximately 48% and ~~2021,~~38% of our lease revenues for

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

the three months ended March 31, 2023 and 2022, respectively. Other than having ~~a single tenant~~two tenants from which we derive and will continue to derive a substantial portion of our revenue and our concentration in the Las Vegas market, we do not believe there are any other significant concentrations of credit risk. ~~Following~~

Note 3 — Real Estate Transactions

2023 Property Acquisitions

PURE Canadian Gaming Transaction

On January 6, 2023, we acquired the ~~completion~~real estate assets of PURE Casino Edmonton, PURE Casino Yellowhead, PURE Casino Calgary, and PURE Casino Lethbridge, all of which are located in Alberta, Canada, from PURE Canadian Gaming for an aggregate purchase price of approximately C$271.9 million (approximately US$200.8 million based on the exchange rate at the time of the acquisition) (the “PURE Canadian Gaming Transaction”). We financed the PURE Canadian Gaming Transaction with a combination of cash on hand and a C$140.0 million (approximately US$103.4 million based on the exchange rate at the time of the acquisition) draw under our Revolving Credit Facility. Simultaneous with the acquisition, we entered into the PURE Master Lease. The PURE Master Lease has an initial total annual rent of approximately C$21.8 million (approximately US$16.1 million based on the exchange rate at the time of the acquisition), an initial term of 25 years, with four 5-year tenant renewal options, escalation of 1.25% per annum in lease years two and three (and thereafter at the greater of 1.5% and the Canadian Consumer Price Index, capped at 2.5%) and minimum capital expenditure requirements of 1.0% of annual net revenue (excluding gaming equipment). The tenant’s obligations under the PURE Master Lease are guaranteed by the parent entity of PURE Canadian Gaming. We determined that the PURE Canadian Gaming Transaction should be accounted for as an asset acquisition under ASC 805-50 and further, that the land and building components of the PURE Master Lease meet the definition of a sales-type lease. Since we purchased and leased the assets back to the seller under a sale leaseback transaction, control is not considered to have transferred to us under GAAP. Accordingly, the PURE Master Lease is accounted for as Investments in leases - financing receivables on our Balance Sheet, net of an initial allowance for estimated credit losses in the amount of $19.6 million.

MGM Grand/Mandalay Bay JV Interest Acquisition

On January 9, 2023, we closed on the previously announced acquisition of the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV (previously referred to as the “BREIT JV”) from Blackstone Real Estate Income Trust, Inc. (“BREIT”) (the “MGM Grand/Mandalay Bay JV Interest Acquisition”) for cash consideration of $1,261.9 million. We also assumed BREIT’s $1,497.0 million pro rata share of an aggregate $3.0 billion of property-level debt, which matures in 2032 and bears interest at a fixed rate of 3.558% per annum through March 2030. The cash consideration was funded through a combination of cash on hand and proceeds from the settlement of the November 2022 Forward Sale Agreements and ATM Forward Sale Agreements (each as described in Note 11 - Stockholders Equity). The MGM Grand/Mandalay Bay Lease currently has an annual rent of $309.9 million, all of which we are entitled to following the closing of the MGM Grand/Mandalay Bay JV Interest Acquisition. The MGM Grand/Mandalay Bay Lease has a remaining initial lease term of approximately 27 years (expiring in 2050), with two ten-year tenant renewal options. Rent under the MGM Grand/Mandalay Bay Lease escalates annually at 2.0% through 2035 (year 15 of the initial lease term) and thereafter at the greater of 2.0% or the Consumer Price Index (“CPI”) (subject to a 3.0% ceiling). As of December 31, 2022, the MGM Grand/Mandalay Bay JV was accounted for as an equity method investment under the voting interest model within Investment in unconsolidated affiliate on our Balance Sheets.

Simultaneously with closing of the MGM Grand/Mandalay Bay JV, as a result of acquiring full ownership, we consolidated the joint venture and determined that the consolidation should be accounted for as an asset acquisition under ASC 805-50. In application of the asset acquisition guidance we retained the prior cost basis of our 50.1% interest, which we previously acquired in connection with the MGP ~~Transactions,~~Transaction, and combined such basis to the purchase price of the MGM Grand/Mandalay Bay JV Interest Acquisition. The following is a summary of our net assets acquired upon consolidation of the ~~guarantor~~MGM Grand/Mandalay Bay JV:


(In thousands)	Amount
Carrying value of prior 50.1% interest acquired in connection with the MGP Transactions	$	1,458,782
Consideration paid for MGM Grand/Mandalay Bay JV Interest Acquisition	1,261,882
Transaction costs	14,630
Total net assets acquired	$	2,735,294

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Under ASC 805-50, we allocated the net assets acquired by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the consolidation of the MGM Grand/Mandalay Bay JV:


(In thousands)	Amount
Investments in leases - sales-type	$	5,494,351
Cash and cash equivalents (1)	9,607
Debt, net (3)	(2,747,877)
Accrued expenses and deferred revenue (1)	(20,787)
Total net assets acquired	$	2,735,294

____________________

(1) Amount represents their current carrying value, which is equal to fair value.

(2) Amount represents the fair value of the $3.0 billion principal amount of CMBS debt as of January 9, 2023, which was estimated as a $252.1 million discount to principal value. The fair value of the debt was estimated by modeling the contractual cash flows and discounting them back to the present value using an estimated market yield. Additionally, we considered current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value measurement are considered Level 3 of the fair value hierarchy.

Concurrent with the closing of the MGM Grand/Mandalay Bay JV Interest Acquisition and consolidation of the MGM Grand/Mandalay Bay Lease, we assessed the lease ~~payment obligations~~classification of the ~~tenants~~MGM Grand/Mandalay Bay Lease and determined that it met the definition of a sales-type lease. Accordingly, the relative fair value of the MGM Grand/Mandalay Bay Lease of $5.5 billion was recorded as an Investment in leases - sales-type on our Balance Sheet, net of an initial allowance for estimated credit losses in the amount of $210.0 million.

Gold Strike Severance Lease

On February 15, 2023, in connection with MGM’s sale of the operations of Gold Strike, we entered into the Gold Strike Lease with CNB related to the land and real estate assets of Gold Strike, and entered into an amendment to the MGM Master Lease in order to account for the divestiture of the operations of Gold Strike. The Gold Strike Lease has initial annual base rent of $40.0 million with other economic terms substantially similar to the MGM Master Lease, including a base term of 25 years with three 10-year tenant renewal options, escalation of 2.0% per annum (with escalation of the greater of 2.0% and CPI, capped at 3.0%, beginning in lease year 11) and minimum capital expenditure requirements of 1.0% of annual net revenue. The Gold Strike Lease is guaranteed by CNB. Upon the closing of the sale of Gold Strike, the MGM Master Lease was amended to account for MGM’s divestiture of the Gold Strike operations and resulted in a reduction of the annual base rent under the MGM Master Lease by $40.0 million.

2023 Loan and ~~BREIT JV Lease,~~Security Investment Activity

Hard Rock Ottawa Secured Notes

On March 28, 2023, we purchased $85.0 million of senior secured notes issued by H.R. Ottawa, L.P. (“Hard Rock Ottawa Notes”), which ~~will collectively account for 15~~owns and operates the Hard Rock Ottawa Casino. H.R. Ottawa, L.P. intends to use the proceeds of ~~our 43 leased properties. We do not believe there~~the Hard Rock Ottawa Notes to fund a portion of (i) the redevelopment and rebrand of the existing Rideau Carleton Raceway Casino, located in Ottawa, Canada, (ii) the development of an integrated “Hard Rock” branded hotel with approximately 150 rooms, and (iii) the repayment of existing debt. The Hard Rock Ottawa Notes are ~~any other significant concentrations~~denominated and issued in USD.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

~~Note 3 — Property~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Pending Transactions

Rocky Gap Casino

On August 24, 2022, we and Century Casinos entered into definitive agreements to acquire Rocky Gap Casino Resort (“Rocky Gap Casino”), located in Flintstone, Maryland, from Golden Entertainment, Inc. for an aggregate purchase price of $260.0 million. Pursuant to the transaction agreements, we will acquire an interest in the land and buildings associated with Rocky Gap Casino for approximately $203.9 million, and Century Casinos will acquire the operating assets of the property for approximately $56.1 million. Simultaneous with the closing of the transaction, the Century Master Lease will be amended to include Rocky Gap Casino, and annual rent under the Century Master Lease will increase by $15.5 million. Additionally, the terms of the Century Master Lease will be extended such that, upon closing of the transaction, the lease will have a full 15-year initial base lease term remaining, with four 5-year tenant renewal options. The tenant’s obligations under the Century Master Lease will continue to be guaranteed by Century Casinos. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in mid-2023.

Significant 2022 Transactions

~~Our significant activities in 2022 are as follows:~~

MGP Transactions

On April 29, 2022, we closed on the previously announced MGP Transactions governed by the MGP Master Transaction Agreement, pursuant to which we acquired MGP for total consideration of ~~$17.2~~$11.6 billion, ~~inclusive of~~plus the assumption of approximately $5.7 billion principal amount of ~~debt.~~debt, inclusive of a 50.1% share of the MGM Grand/Mandalay Bay JV CMBS debt, at the time. Upon closing, the MGP Transactions added ~~$1,012.0~~$1,012.2 million of annualized rent to our portfolio from 15 Class A entertainment casino resort properties spread across 9nine regions and comprising 36,000 hotel rooms, 3.6 million square feet of meeting and convention space and hundreds of food, beverage and entertainment venues.

~~MGP’s portfolio, including properties owned by~~ Under the BREIT JV, includes 7 large-scale entertainment and gaming-related properties located on the Las Vegas Strip: Mandalay Bay, MGM Grand Las Vegas, The Mirage, Park MGM, New York-New York (and The Park, a dining and entertainment district located between New York-New York and Park MGM), Luxor and Excalibur. Outsideterms of Las Vegas, MGP also owns 8 high-quality casino resort properties: MGM Grand Detroit in Detroit, Michigan, Beau Rivage in Biloxi, Mississippi, Gold Strike Tunica in Tunica, Mississippi, Borgata in Atlantic City, New Jersey, MGM National Harbor in Prince George’s County, Maryland, MGM Northfield Park in Northfield, Ohio, Empire City in Yonkers, New York and MGM Springfield in Springfield, Massachusetts. MGP’s portfolio includes 2 of the five largest hotels in the United States and 2 of the three largest Las Vegas resorts by room count and convention space.

~~The following is a summary of the agreements and related activities under the MGP Transactions:~~

•~~MGP Master Transaction Agreement.~~ ~~On August 4, 2021, we entered into~~ the MGP Master Transaction Agreement, by and among the Company, MGP, MGP OP, VICI LP, REIT Merger Sub, VICI OP, and MGM. Pursuant to the terms and subject to the conditions set forth in the MGP Master Transaction Agreement, upon the closing of the REIT Merger (as defined in the MGP Master Transaction Agreement) on April 29, 2022, each outstanding MGP Class A common share ~~no par value per share, of MGP (“MGP Common Shares”) (other than MGP Common Shares then held in treasury by MGP or owned by any of MGP’s wholly owned subsidiaries)~~ was converted into 1.366 (the “Exchange Ratio”) shares of VICI common ~~stock~~stock. The fixed Exchange Ratio represented an agreed upon price of the Company (such consideration, the “REIT Merger Consideration”), plus the right, if any, to receive cash in lieu of fractional shares of our common stock into which such MGP Common Shares would have been converted. The outstanding Class B common share, no par value$43.00 per share of MGP ~~(the “Class~~Class A common shares based on VICI’s trailing 5-day volume weighted average price of $31.47 as of July 30, 2021. MGM received $43.00 per unit in cash for the redemption of the majority of its MGP OP units that it held for total cash consideration of approximately $4.404 billion and also acquired approximately 12.2 million units in VICI OP. The MGP Class B ~~Share”), which~~share that was held by MGM was cancelled ~~at the effective time of the REIT Merger.~~ and ceased to exist simultaneous with closing.

The ~~REIT Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “Code”).~~

Following the REIT Merger, pursuant to and subject to the terms set forth in the MGP Master Transaction Agreement, at the effective time of the Partnership Merger (as defined in the MGP Master Transaction Agreement), each limited partnership unit in MGP OP (other than the limited partnership units in MGP OP held by REIT Merger Sub or any subsidiarynumber of MGP ~~OP), all of which were held by MGM and certain of its subsidiaries, was~~Class A common shares converted ~~into the right~~ to

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~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

~~receive a number~~ shares of VICI ~~OP Units (the “Partnership Merger Consideration”) equal to~~common stock was determined as follows:


MGP Class A common shares outstanding as of April 29, 2022			156,757,773
Exchange Ratio			1.366
VICI common stock issued (1)			214,131,064
VICI common stock issued for MGP stock-based compensation awards			421,468
Total VICI common stock issued			214,552,532

____________________

(1) Amount excludes the ~~Exchange Ratio. The Company redeemed a majority~~cash paid in lieu of ~~the VICI OP Units received by MGM in the Partnership Merger for $4,404.0 million in cash using the proceeds of the April 2022 Notes, as further described in~~ N ~~ote 7~~ ~~- Deb~~t ~~(the “Redemption”). Following the Redemption, MGM retained~~ approximately ~~12.2 million VICI OP Units.~~54 fractional MGP Class A common shares.

•~~MGM Master Lease and BREIT JV Lease~~. Simultaneous with the closing of the ~~Mergers~~MGP Transactions on April 29, 2022, we entered into the MGM Master Lease. The MGM Master Lease has an initial term of 25 years, with 3three 10-year tenant renewal options and ~~has~~had an initial total annual rent of $860.0 million. Rent under the MGM Master Lease escalates at a rate of 2.0% per annum for the first 10 years and thereafter at the greater of 2.0% per annum or the increase in ~~the consumer price index (“CPI”),~~CPI, subject to a 3.0% cap. The ~~tenant’s obligations under the MGM Master Lease are guaranteed by MGM. The initial~~ total annual rent under the MGM Master Lease ~~will be~~was reduced by $90.0 ~~million to $770.0~~ million upon the close of MGM’s ~~pending~~ sale of the operations of the Mirage to Hard Rock and entrance into the Mirage Lease ason December 19, 2022, and further ~~described below~~reduced by $40.0 million upon the close of MGM’s sale of the operations of Gold Strike on February 15, 2023 (which results in total annual rent under “~~Mirage Severance Lease.”~~

the MGM Master Lease of $730.0 million). Additionally, we retained ~~MGP’s~~a 50.1% ownership stake in the ~~BREIT~~MGM Grand/Mandalay Bay JV, which owns the real estate assets of MGM Grand Las Vegas and Mandalay Bay. ~~The BREIT JV~~At the time of acquisition, the MGM Grand/Mandalay Bay Lease ~~remained unchanged and provides~~provided for ~~current~~ total annual base rent of approximately $303.8 million, ~~of which approximately $152.2 million is attributable to MGP’s investment in the BREIT JV,~~ and had an initial term of thirty years with 2two 10-year tenant renewal options. Rent under the ~~BREIT JV~~MGM Grand/Mandalay Bay Lease escalates at a rate of 2.0% per annum for the first ~~fifteen~~15 years and thereafter at the greater of 2.0% per annum or CPI, subject to a 3.0% cap. ~~The tenant’s obligations under~~On January 9, 2023, we closed on the ~~BREIT~~MGM Grand/Mandalay Bay JV ~~Lease are guaranteed by MGM.~~

•~~Tax Protection Agreement.~~ ~~In connection with the closing~~Interest Acquisition and accordingly own 100% of the MGP Transactions, we entered into a tax protection agreement with MGM (the “MGM Tax Protection Agreement”) pursuant to which VICI OP has agreed, subject to certain exceptions, for a period of 15 years following the closing of the Mergers (subject to early termination under certain circumstances), to indemnify MGM and certain of its subsidiaries (the “Protected Parties”) for certain tax liabilities resulting from (1) the sale, transfer, exchange or other disposition of a property owned directly or indirectly by MGP OP immediately prior to the closing date of the Mergers (each, a “Protected Property”), (2) a merger, consolidation, transfer of all assets of, or other significant transaction involving VICI OP pursuant to which the ownership interests of the Protected Parties in VICI OP are required to be exchanged in whole or in part for cash or other property, (3) the failure of VICI OP to maintain approximately $8.5 billion of nonrecourse indebtedness allocable to MGM, which amount may be reduced over time in accordance with the MGM Tax Protection Agreement, and (4) the failure of VICI OP or VICI to comply with certain tax covenants that would impact the tax liabilities of the Protected Parties. In the event that VICI OP or VICI breaches restrictionsinterest in the MGM Tax Protection Agreement, VICI OP will be liable for grossed-up tax amounts associated with the income or gain recognized as a result of such breach. In addition, the BREIT JV previously entered into a tax protection agreement with MGM with respect to built-in gain and debt maintenance related to MGM Grand Las Vegas and Grand/Mandalay Bay ~~which is effective through mid-2029, and by acquiring MGP,~~JV, including the ~~Company bears its 50.1% proportionate share in the BREIT JV of any indemnity under this existing tax protection agreement.~~

•~~Exchange Offers and Consent Solicitations~~. On September 13, 2021, we announced that the VICI Issuers commenced (i) private exchange offers to certain eligible holders (collectively, the “Exchange Offers”) for any and all of each series of the MGP OP Notes for up to an aggregate principal amount of $4.2full $3.0 billion of ~~new notes issued~~CMBS debt held by the VICI Issuers and (ii) consent solicitations with respect to each series of MGP OP Notes (collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the indentures governing the MGP OP Notes (collectively, the “MGP OP Notes Indentures”), which, among other things, eliminate or modify certain of the covenants, restrictions, provisions and events of default in each of the MGP OP Notes Indentures.

Following the receipt of the requisite consents pursuant to the Consent Solicitations, on September 23, 2021, the MGP Issuers executed supplemental indentures to each of the MGP OP Notes Indentures in order to effect the proposed amendments (the “MGP OP Supplemental Indentures”). The MGP OP Supplemental Indentures became operative upon the settlement of the Exchange Offers and the Consent Solicitations on April 29, 2022 (the “Settlement Date”).

Upon completion of the Exchange Offers and Consent Solicitations, the VICI Issuers issued $1,024.2 million in aggregate principal amount of 5.625% Senior Notes due 2024, $799.4 million in aggregate principal amount of 4.625% Senior Notes due 2025, $480.5 million in aggregate principal amount of 4.500% Senior Notes due 2026, $729.5 million in aggregate principal amount of 5.750% Senior Notes due 2027, $349.3 million in aggregate principal amount of 4.500% Senior Notes due 2028 and $727.1 million in aggregate principal amount of 3.875% Senior Notes

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~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

due 2029, each pursuant to a separate indenture dated as of April 29, 2022, among the VICI Issuers and the Trustee. Following the issuance of the Exchange Notes pursuant to the settlement of the Exchange Offers and Consent Solicitations, $25.8 million in aggregate principal amount of MGP OP Notes due 2024, $0.6 million in aggregate principal amount of MGP OP Notes due 2025, $19.5 million in aggregate principal amount of MGP OP Notes due 2026, $20.5 million in aggregate principal amount of MGP OP Notes due 2027, $0.7 million in aggregate principal amount of MGP OP Notes due 2028 and $22.9 million in aggregate principal amount of MGP OP Notes due 2029 remain outstanding.

•~~Mirage Severance Lease.~~ On December 13, 2021, in connection with MGM’s agreement to sell the operations of the Mirage Hotel & Casino to Hard Rock, we agreed to enter into a new separate lease with Hard Rock related to the land and real estate assets of the Mirage (the “Mirage Lease”), and enter into an amendment to the MGM Master Lease relating to the sale of the Mirage. The Mirage Lease will have initial annual base rent of $90.0 million with other economic terms substantially similar to the MGM Master Lease, including a base term of 25 years with 3 10-year tenant renewal options, escalation of 2.0% per annum (with escalation of the greater of 2.0% and CPI, capped at 3.0%, beginning in lease year 11) and minimum capital expenditure requirements of 1.0% of annual net revenue. Upon the closing of the sale of the Mirage, the MGM Master Lease will be amended to account for MGM’s divestiture of the Mirage operations and will result in a reduction of the initial annual base rent under the MGM Master Lease by $90.0 million. We expect these transactions to be completed in the second half of 2022, and they remain subject to customary closing conditions and regulatory approvals. Additionally, subject to certain conditions, we may fund up to $1.5 billion of Hard Rock’s redevelopment plan for the Mirage through our Partner Property Growth Fund if Hard Rock elects to seek third-party financing for such redevelopment. Specific terms of the redevelopment and related funding remain under discussion and subject to final documentation.

We will assess the MGP Transactions in accordance with ASC 805—“Business Combinations” (“ASC 805”), and anticipate that the acquisition of MGP will not meet the definition of a business and will accordingly be accounted for as an asset acquisition under ASC 805-50. As part of the application of ASC 805, we will prepare a purchase price allocation in order to appropriately allocate the purchase price by major categories of assets acquired and liabilities assumed. We also will assess the lease classification of the MGM Master Lease and anticipate that it will meet the definition of a sales-type lease. Further, since MGM controlled and consolidated MGP prior to the MTA Transactions, the lease will be assessed under the sale-leaseback guidance and we anticipate it will be determined to be a failed sale-leaseback under which the lease will be accounted for as a financing receivable under ASC 310. Finally, as it relates to the BREIT JV, we anticipate that it will continue to be accounted for as an equity method investment and the joint venture will retain the underlying accounting. However, we will be required to record our investment in BREIT JV at fair value and amortize the difference between the current carrying value and assessed fair value into income.

During the quarter ended June 30, 2022, we will record the corresponding assets and assumed liabilities at fair value, the most material of which will include (i) the MGM Master Lease presented as Investment in leases - financing receivable, net of an estimate allowance for credit losses, (ii) the investment in the BREIT JV presented as Investment in unconsolidated affiliate and (iii) the liability for the assumption of the MGP OP Notes presented in Debt, net, on our Balance Sheet.

~~BigShots Loan~~

Subsequent to quarter end, on April 7, 2022, we entered into a loan with BigShots Golf (“BigShots Golf”), a subsidiary of ClubCorp Holdings, Inc. (“ClubCorp”), an Apollo fund portfolio company, to provide up to $80.0 million of mortgage financing (“BigShots Loan”) for the construction of certain new BigShots Golf facilities throughout the United States. The BigShots Loan bears interest at a rate of 10.0% per annum and has an initial term of five years with 2 successive 12-month extension options, subject to certain conditions. Our commitment to fund the loan will be subject to customary terms and conditions and disbursement of funds to the borrower will be based upon construction of the applicable BigShots Golf facilities. In addition, we entered into a right of first offer and call right agreement, pursuant to which (i) we have a call right to acquire the real estate assets associated with any BigShots Golf facility financed by us, which transaction will be structured as a sale leaseback, and (ii) for so long as the BigShots Loan remains outstanding and we continue to hold a majority interest therein, subject to additional terms and conditions, we will have a right of first offer on any multi-site mortgage, mezzanine, preferred equity, or other similar financing that is treated as debt to be obtained by BigShots Golf (or any of its affiliates) in connection with the development of BigShots Golf facilities.venture.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

~~Venetian Acquisition~~

~~On February 23, 2022, we closed on~~We assessed the ~~previously announced transaction to acquire all of the land~~MGP Transactions in accordance with ASC 805, and real estate assets associated with the Venetian Resort from LVS for $4.0 billion in cash, and the Venetian Tenant acquired the operating assets of the Venetian Resort for $2.25 billion, of which $1.2 billion is in the form of a secured term loan from LVS and the remainder was paid in cash. We funded the Venetian Acquisition with (i) $3.2 billion in net proceeds from the physical settlement of the March 2021 Forward Sale Agreements and the September 2021 Forward Sale Agreements, (ii) an initial draw on the Revolving Credit Facility of $600.0 million (which was subsequently repaid in full using the proceeds from the April 2022 Notes offering), and (iii) cash on hand. Simultaneous with the closing of the Venetian Acquisition, we entered into the Venetian Lease with the Venetian Tenant. The Venetian Lease has an initial total annual rent of $250.0 million and an initial term of 30 years, with 2 10-year tenant renewal options. The annual rent will be subject to escalation equal to the greater of 2.0% and the increase in the CPI, capped at 3.0%, beginning in the earlier of (i) the beginning of the third lease year, and (ii) the month following the month in which the net revenue generated by the Venetian Resort returns to its 2019 level (the year immediately prior to the onset of the COVID-19 pandemic) on a trailing twelve-month basis. We determined that the ~~land and building components~~acquisition of ~~the Venetian Lease~~MGP did not meet the definition of a ~~sales-type lease~~business as substantially all the assets were concentrated in a group of similarly identifiable acquired assets, and ~~accordingly are recorded~~did not include a substantive process in the form of an acquired workforce. Accordingly, the MGP Transactions were accounted for as an ~~Investments~~asset acquisition under ASC 805-50 and we determined the consideration transferred under the MGP Transactions was $11.6 billion, comprised of the following:


(In thousands)	Amount
REIT Merger Consideration (1)	$	6,568,480
Redemption payment to MGM	4,404,000
VICI OP Units retained by MGM (2)	374,769
Repayment of MGP revolving credit facility (3)	90,000
Transactions costs (4)	119,741
Total consideration transferred	$	11,556,990
Assumption of MGP OP Notes and Exchange Notes, at principal value	4,200,000
Assumption of our proportionate share of the BREIT JV CMBS debt, at principal value	1,503,000
Total purchase price	$	17,259,990

____________________

(1) Amount represents the dollar value of 214,375,990 shares of VICI common stock, multiplied by the VICI stock price at the time of closing of $30.64 per share, which were issued in ~~leases - sales-type on our Balance Sheet, net~~exchange for the MGP Class A common shares outstanding immediately prior to the REIT Merger and certain of ~~allowance for~~the MGP stock-based compensation awards, converted to shares of VICI common stock.

(2) Amount represents 12,231,373 VICI OP Units retained by MGM as non-controlling interest in VICI OP, multiplied by the VICI stock price at the time of closing of $30.64 per share.

(3) Represents the total amount outstanding under MGP’s revolving credit ~~losses in the amount~~facility as of ~~$65.6 million.~~

April 29, 2022. In connection with the ~~Venetian Acquisition, we entered into a Property Growth Fund Agreement (“Venetian PGFA”) with~~MGP Transactions, such amount was repaid in full and the Venetian Tenant. Under the Venetian PGFA we agreed to provide up to $1.0 billion for various development and construction projects affecting the Venetian Resort to be identified by the Venetian Tenant and that satisfy certain criteria more particularly set forth in the Venetian PGFA, in consideration of additional incremental rent to be paid by the Venetian Tenant under the Venetian Lease and calculated inrelated credit agreement was terminated.

(4) In accordance with ~~a formula set forth in the Venetian PGFA. Upon execution of the Venetian PGFA we were required to estimate a CECL allowance~~ASC 805-50, all direct and incremental costs related to the ~~contractual commitments~~MGP Transactions, primarily related to ~~extend credit, which~~success-based fees and third-party advisory fees, were included in the consideration transferred.

Under ASC 805-50, we allocated the purchase price by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the MGP Transactions valued as of April 29, 2022:


(In thousands)	Amount
Investments in leases - financing receivables (1) (2)	$	14,245,868
Investment in unconsolidated affiliate (2) (3)	1,465,814
Cash and cash equivalents (4)	25,387
Other assets (4)	338,212
Debt, net (5)	(4,106,082)
Accrued expenses and deferred revenue (4)	(79,482)
Other liabilities (4)	(332,727)
Total net assets acquired	$	11,556,990

____________________

(1) We valued the real estate portfolio at relative fair value using rent multiples taking into consideration a variety of factors, including (i) asset quality and location, (ii) property and lease-level operating performance and (iii) supply and demand dynamics of each property’s respective market. The multiples used ranged from 15.0x - 18.5x with a weighted average rent multiple of 16.7x, as determined using relative fair value.

(2) The fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy.

(3) We value the Investment in unconsolidated affiliate at relative fair based on our ~~best estimates~~percentage ownership of ~~funding such commitments. Accordingly, during~~ the ~~three months ended March 31, 2022, we recorded a CECL allowance in~~net assets of the BREIT JV.

(4) Amounts represents their current carrying value which is equal to fair value. The Other assets and Other liabilities amounts include the gross presentation of certain MGP ground leases which we assumed in connection with the ~~amount~~MGP Transactions.

(5) Amount represents the fair value of ~~$8.3~~debt as of April 29, 2022, which was estimated as a $93.9 million ~~related~~discount to the ~~estimate~~notional value. The fair value of our ~~unfunded commitment under the Venetian PGFA.~~

~~In addition, LVS agreed with the Venetian Tenant pursuant to an agreement (the “Contingent Lease Support Agreement”) entered into simultaneously with the closing~~debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the Venetian Acquisition to provide lease payment support designed to guarantee the Venetian Tenant’s rent obligations under the Venetian Lease through 2023, subject to early termination if EBITDAR (as defined in such agreement) generated by the Venetian Resort in 2022 equals or exceeds $550.0 million, or a tenant change of control occurs. We are a third-party beneficiary of the Contingent Lease Support Agreement and have certain enforcement rights pursuant thereto. The Contingent Lease Support Agreement is limited to coverage of the Venetian Tenant’s rent obligations and does not cover any environmental expenses, litigation claims, or any cure or enforcement costs. The obligations of the Venetian Tenant under the Venetian Lease are not guaranteed by Apollo or any of its affiliates. After the termination of the Contingent Lease Support Agreement, the Venetian Tenant will be required to provide a letter of credit to secure seven and one-half months of the rent, real estate taxes and assessments and insurance obligations of the Venetian Tenant if the operating results from the Venetian Resort do not exceed certain thresholds.

~~2021 Transactions~~

~~Our significant activities in 2021 were as follows:~~

~~Caesars Southern Indiana Lease~~

On September 3, 2021, in connection and concurrent with EBCI’s acquisition of the operations of Caesars Southern Indiana from Caesars, we entered into a triple-net lease agreement with a subsidiary of EBCI, the CSI Lease, with respect to the real property associated with Caesars Southern Indiana. Initial total annual rent under the lease with EBCI is $32.5 million. The lease has an initial term of 15 years, with 4 5-year tenant renewal options. The tenant’s obligations under the lease are guaranteed by EBCI. Annual base rent payments under the Caesars Regional Master Lease were reduced by $32.5 million upon completion of EBCI’s acquisition of the operations of Caesars Southern Indiana and the execution of the CSI Lease. We determined that the land and building components of the CSI Lease meet the definition of a sales-type lease and, as the asset continues to meet the definition of a sales-type lease under ASC 842, the existing lease balance of Caesars Southern Indiana was transferred from Caesars to EBCI, as the new tenant, and the income is recognized using the revised rate implicit in the lease. In addition, as part of the transaction, EBCI and Caesars entered into a right of first refusal agreement pursuant to which we have the first right to enter into a sale leaseback transaction with respect to the real property associated with the development of a new casino resort in Danville, Virginia.fair value hierarchy.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

~~Great Wolf Mezzanine Loan~~

~~On June 16, 2021, we entered into a mezzanine loan agreement (the “Great Wolf Mezzanine Loan”)~~Concurrent with ~~an affiliate of Great Wolf Resorts, Inc. (“Great Wolf”) to provide up to $79.5 million in financing to partially fund~~ the ~~development~~closing of the ~~Great Wolf Lodge Maryland, an expansive 48-acre indoor water park resort located in Perryville, MD. The Great Wolf Mezzanine Loan bears interest at~~MGP Transactions and entry into the MGM Master Lease, we assessed the lease classification of the MGM Master Lease and determined that it met the definition of a ~~rate of 8.0% per annum~~sales-type lease. Further, since MGM controlled and ~~has an initial term of three years with 2 successive 12-month extension options, subject to certain conditions. Our commitment will be funded subject to customary terms and conditions in disbursements~~consolidated MGP prior to the ~~borrower based upon construction~~MGP Transactions, the lease was assessed under the sale-leaseback guidance and determined to be a failed sale-leaseback under which the lease is accounted for as a financing receivable under ASC 310.

In relation to the MGM Grand/Mandalay Bay JV, we determined that such investment should be accounted for as an equity method investment and, accordingly, recorded the relative fair value as an Investment in unconsolidated affiliate on our Balance Sheet. The requirement to record our investment in the MGM Grand/Mandalay Bay JV at relative fair value under ASC 805 resulted in a difference in our acquired basis from that of the ~~development and,~~underlying records, or historical cost basis, of the MGM Grand/Mandalay Bay JV. Accordingly, we compared our proportionate share of the historical cost basis of the MGM Grand/Mandalay Bay JV as of ~~March 31,~~April 29, 2022 ~~approximately $49.2 million~~to our proportionate share of the ~~funds have been disbursed. We expect to fund our entire $79.5 million commitment by mid-2022.~~

~~In addition, pursuant to a non-binding letter agreement, we will have~~relative fair value, the ~~opportunity for a period~~difference of ~~up to five years to provide up to a total of $300.0 million of mezzanine financing, inclusive~~which was amortized through Income from unconsolidated affiliate over the life of the ~~$79.5 million~~ related asset or liability. On January 9, 2023, we acquired the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV from BREIT and consolidated the operations of the joint venture. Refer to ~~the Great Wolf Lodge Maryland,~~“MGM Grand/Mandalay Bay JV Interest Acquisition” above for ~~the development and construction of Great Wolf’s extensive domestic and international indoor water park resort pipeline.~~further details.

Note 4 — Real Estate Portfolio

As of March 31, ~~2022,~~2023, our real estate portfolio consisted of the following:

•Investments in leases - sales-type, representing our investment in 2325 casino assets leased on a triple-net basis to our tenants, Apollo, Caesars, Century Casinos, EBCI, Hard Rock, MGM and ~~Penn National,~~PENN Entertainment under 9ten separate lease agreements;

•Investments in leases - financing receivables, representing our investment in 524 casino assets leased on a triple-net basis to our tenants, Caesars, ~~and~~CNB, Foundation Gaming, Hard Rock, JACK Entertainment, MGM and PURE Canadian Gaming under 2seven separate lease agreements;

•Investments in loans and securities, representing our ~~investment~~investments in eleven senior secured and mezzanine loans and the ~~Chelsea Piers Mortgage Loan, Forum Convention Center Mortgage Loan and Great Wolf Mezzanine Loan;~~Hard Rock Ottawa Notes; and

•Land, representing our investment in certain underdeveloped or undeveloped land adjacent to the Las Vegas strip and non-operating, vacant land parcels.

The following is a summary of the balances of our real estate portfolio as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:

(In thousands) March 31, 2022 December 31, 2021
Minimum lease payments receivable under sales-type leases (1)
$ 64,524,789 $ 44,485,224
Estimated residual values of leased property (not guaranteed) 6,578,781 3,334,549
Gross investment in sales-type leases 71,103,570 47,819,773
Unamortized initial direct costs 40,718 23,363
Less: Unearned income (53,526,411) (34,271,620)
Less: Allowance for credit losses (504,178) (434,852)
Investments in leases - sales-type, net 17,113,699 13,136,664
Investments in leases - financing receivables, net 2,650,633 2,644,824
Total investments in leases, net 19,764,332 15,781,488
Investments in loans, net 513,128 498,002
Land 153,576 153,576
Total real estate portfolio $ 20,431,036 $ 16,433,066


(In thousands)	March 31, 2023		December 31, 2022






Investments in leases - sales-type, net (1)	$	22,579,820	$	17,172,325

Investments in leases - financing receivables, net (1)	17,051,187		16,740,770
Total investments in leases, net	39,631,007		33,913,095
Investments in loans and securities, net	886,524		685,793
Investment in unconsolidated affiliate (2)	—		1,460,775
Land	153,560		153,560
Total real estate portfolio	$	40,671,091	$	36,213,223

____________________

(1) ~~Minimum~~At lease ~~payments do not include contingent rent, as discussed below, that may be received~~inception (or upon modification), we determine the estimated residual values of the leased property (not guaranteed) under the respective Lease ~~Agreements.~~Agreements, which has a material impact on the determination of the rate implicit in the lease and the lease classification. As of March 31, 2023 and December 31, 2022, the estimated residual values of the leased properties under our Lease Agreements were $15.6 billion and $11.5 billion, respectively.

(2) Represents our 50.1% investment in the MGM Grand/Mandalay Bay JV prior to the MGM Grand/Mandalay Bay JV Interest Acquisition on January 9, 2023, which was accounted for as an equity method investment.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

~~Lease Portfolio~~Investments in Leases

The following table details the components of our income from sales-type leases and lease financing receivables:


		Three Months Ended March 31,				Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021			(In thousands)	2023		2022
Income from sales-type leases, excluding contingent rent (1)		$	322,258	$	289,574
Income from sales-type leases, fixed rent							Income from sales-type leases, fixed rent	$	459,490	$	322,258
Income from sales-type leases - contingent rent (1)							Income from sales-type leases - contingent rent (1)	18,904		4,477

Income from lease financing receivables (1) (2)		63,019		59,892
Total revenue, excluding contingent rent		385,277		349,466
Contingent rent (1)		4,477		572
Income from lease financing receivables - fixed rent (2)							Income from lease financing receivables - fixed rent (2)	352,328		63,019
Income from lease financing receivables - contingent rent (1) (2)							Income from lease financing receivables - contingent rent (1) (2)	2,510		—
Total lease revenue	Total lease revenue	389,754		350,038			Total lease revenue	833,232		389,754
Non-cash adjustment (3)	Non-cash adjustment (3)	(35,553)		(27,877)			Non-cash adjustment (3)	(122,841)		(35,553)
Total contractual lease revenue	Total contractual lease revenue	$	354,201	$	322,161		Total contractual lease revenue	$	710,391	$	354,201

____________________

(1) At lease inception (or upon modification), we determine the minimum lease payments under ASC 842, which exclude amounts determined to be contingent rent. Contingent rent is generally amounts in excess of specified floors or the variable rent portion of our leases. The minimum lease payments are recognized on an effective interest basis at a constant rate of return over the life of the lease and the contingent rent portion of the lease payments are recognized as earned, both in accordance with ASC 842. As of March 31, ~~2022,~~2023, we have recognized contingent rent from our Margaritaville Lease ~~Greektown Lease,~~ and ~~Caesars Las Vegas Master~~Greektown Lease in relation to the variable rent portion of the respective ~~leases. Refer~~leases and the Caesars Las Vegas Master Lease, Caesars Regional Master Lease, Joliet Lease and Century Master Lease in relation to the ~~Lease Provisions section below for information regarding contingent rent on each lease.~~CPI portion of the annual escalator.

(2) Represents the MGM Master Lease, Harrah’s ~~Original~~ Call Properties, JACK Master Lease, Foundation Master Lease and ~~the JACK Cleveland/Thistledown~~PURE Master Lease, ~~both~~all of which were sale leaseback transactions. In accordance with ASC 842, since the lease agreements were determined to meet the definition of a sales-type lease and control of the asset is not considered to have been transferred to us, such lease agreements are accounted for as financings under ASC 310.

(3) Amounts represent the non-cash adjustment to the minimum lease payments from sales-type leases and lease financing receivables in order to recognize income on an effective interest basis at a constant rate of return over the term of the leases.

At March 31, ~~2022,~~2023, minimum lease payments owed to us for each of the five succeeding years under sales-type leases and our leases accounted for as financing receivables, are as follows:


		Minimum Lease Payments (1) (2)						Minimum Lease Payments (1) (2)
		Investments in Leases						Investments in Leases
(In thousands)	(In thousands)	Sales-Type		Financing Receivables		Total			(In thousands)	Sales-Type		Financing Receivables		Total
2022 (remaining)		$	994,936	$	171,273	$	1,166,209
2023		1,344,189		232,320		1,576,509
2023 (remaining)									2023 (remaining)	$	1,242,554	$	859,428	$	2,101,982
2024	2024	1,366,127		236,452		1,602,579			2024	1,682,826		1,164,081		2,846,907
2025	2025	1,385,348		239,835		1,625,183			2025	1,712,512		1,185,650		2,898,162
2026	2026	1,405,006		243,281		1,648,287			2026	1,738,641		1,207,803		2,946,444
2027	2027	1,425,272		246,841		1,672,113			2027	1,765,545		1,230,444		2,995,989
2028									2028	1,793,651		1,253,781		3,047,432
Thereafter	Thereafter	56,603,911		8,309,373		64,913,284			Thereafter	77,247,331		87,195,403		164,442,734
Total	Total	$	64,524,789	$	9,679,375	$	74,204,164		Total	$	87,183,060	$	94,096,590	$	181,279,650

Weighted Average Lease Term (2)	Weighted Average Lease Term (2)	37.0 years		33.2 years		35.5 years			Weighted Average Lease Term (2)	38.6 years		50.3 years		43.7 years

____________________

(1) Minimum lease payments do not include contingent rent, as discussed above, that may be received under the Lease Agreements.

(2) The minimum lease payments and weighted average remaining lease term assumes the exercise of all tenant renewal options, consistent with our conclusions under ASC 842 and ASC 310.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Lease Provisions

As of March 31, 2023, we owned 49 properties leased under 16 separate Lease Agreements with subsidiaries of, or entities managed by, Apollo, Caesars, Century Casinos, CNB, EBCI, Foundation Gaming, JACK Entertainment, MGM, PENN Entertainment, PURE Canadian Gaming and Seminole Hard Rock, certain of which are master lease agreements governing multiple properties and certain of which are for single assets. Our Lease Agreements are generally long-term in nature with initial terms ranging from 15 to 30 years and are structured with several tenant renewal options extending the term of the lease for another 5 to 30 years. All of our Lease Agreements provide for annual base rent escalations, which range from 1% in the earlier years to the greater of 2% or CPI in later years, with certain of our leases providing for a cap with respect to the maximum CPI-based increase. Additionally, certain of our Lease Agreements provide for a variable rent component in which a portion of the annual rent, generally 20%, is subject to adjustment based on the revenues of the underlying asset in specified periods.

Lease Overview

The following is a summary of the material lease provisions of our Caesars Leases ~~Venetian Lease,~~and MGM ~~Master Lease, and BREIT JV Lease (the MGM Master Lease as entered into and BREIT JV Lease as assumed by us, each as part of the closing of the MGP Transactions on April 29, 2022):~~Leases, our two most significant tenants:

($ In thousands)

Caesars Regional Master Lease and Joliet Lease

Caesars Las Vegas Master Lease

Venetian Lease

MGM Master Lease

BREIT JV Lease

($ In thousands)

Caesars Regional Master Lease and Joliet Lease

Caesars Las Vegas
Master Lease

MGM Master Lease

MGM Grand/

Mandalay Bay Lease (1)

Lease Provision

MGM Grand/

Mandalay Bay Lease (1)

Initial term

18 years

30 years

25 years

30 years

Initial term

18 years

25 years

30 years

Initial term maturity

7/31/2035

2/29/2052

4/30/2047

2/28/2050

Initial term maturity

7/31/2035

4/30/2047

2/28/2050

Renewal terms

NaN, five-year terms

NaN, ten-year terms

Renewal terms

Four, five-year terms

Three, ten-year terms

Two, ten-year terms

Current lease year ~~(1)~~

11/1/21 - 10/31/22 (Lease Year 5)

2/23/22 - 2/28/23 (Lease Year 1)

4/29/22-4/30/23 (Lease Year 1)

3/1/22 - 2/28/23 (Lease Year 3)

Current lease year ~~(1)~~

11/1/22 - 10/31/23
(Lease Year 6)

5/1/23-4/30/24 (Lease Year 2)

3/1/23 - 2/29/24 (Lease Year 4)

Current annual rent ~~(2)~~

$649,572

$422,224

$250,000

$860,000

$303,800 (VICI’s 50.1% Pro Rata Share: $152,203)

Current annual rent ~~(2)~~

$703,678 (2)

$454,478

$744,600

$309,873

Annual escalator (3)

Lease years 2-5 - 1.5%

Lease years 6-end of term - CPI subject to 2.0% floor

> 2% / change in CPI

>2% / change in CPI (capped at 3%) beginning in Lease year 2

Lease years 2-10 - 2%

Lease years 11-end of term - >2% / change in CPI (capped at 3%)

Lease years 2-15 - 2%

Lease years 16-end of term - >2% / change in CPI (capped at 3%)

Annual escalator (3)

Lease years 2-5 - 1.5%

Lease years 6-end of term - CPI subject to 2.0% floor

> 2% / change in CPI

Lease years 2-10 - 2%

Lease years 11-end of term - >2% / change in CPI (capped at 3%)

Lease years 2-15 - 2%

Lease years 16-end of term - >2% / change in CPI (capped at 3%)

Variable rent adjustment (4)

Year 8: 70% base rent / 30% variable rent

Years 11 & 16: 80% base rent / 20% variable rent

Years 8, 11 & 16: 80% base rent / 20% variable rent

None

Variable rent adjustment (4)

Year 8: 70% base rent / 30% variable rent

Years 11 & 16: 80% base rent / 20% variable rent

Years 8, 11 & 16: 80% base rent / 20% variable rent

None

Variable rent adjustment calculation ~~(3)~~

4% of revenue increase/decrease:

Year 8: Avg. of years 5-7 less avg. of years 0-2

Year 11: Avg. of years 8-10 less avg. of years 5-7

Year 16: Avg. of years 13-15 less avg. of years 8-10

4% of revenue increase/decrease:

Year 8: Avg. of years 5-7 less avg. of years 0-2

Year 11: Avg. of years 8-10 less avg. of years 5-7

Year 16: Avg. of years 13-15 less avg. of years 8-10

None

Variable rent adjustment calculation ~~(3)~~

4% of revenue increase/decrease:

Year 8: Avg. of years 5-7 less avg. of years 0-2

Year 11: Avg. of years 8-10 less avg. of years 5-7

Year 16: Avg. of years 13-15 less avg. of years 8-10

4% of revenue increase/decrease:

Year 8: Avg. of years 5-7 less avg. of years 0-2

Year 11: Avg. of years 8-10 less avg. of years 5-7

Year 16: Avg. of years 13-15 less avg. of years 8-10

None

____________________

(1) ~~For the Venetian Lease, lease year two will begin~~On January 9, 2023, we closed on the ~~earlier of (i) March 1, 2024~~MGM Grand/Mandalay Bay JV Interest Acquisition and ~~(ii)~~acquired the ~~first day of~~remaining 49.9% interest in the ~~first month following~~MGM Grand/Mandalay Bay JV and accordingly, the ~~month in which the net revenue of the Venetian Resort for the trailing twelve months equals or exceeds 2019 net revenue.~~amounts set forth above reflect our consolidated interest.

(2) Current annual rent with respect to the Joliet Lease is presented prior to accounting for the non-controlling interest, or rent payable, to the 20% third-party ownership of Harrah’s Joliet LandCo LLC. After adjusting for the 20% non-controlling interest, ~~Current~~combined current annual rent under the Caesars Regional Master Lease and Joliet Lease is ~~$641.2~~$694.6 million.

(3) Any amounts representing rents in excess of the CPI floors specified above are considered contingent rent in accordance with GAAP. In relation to the Caesars Las Vegas Master Lease, we recognized approximately $3.1 million in contingent rent during the three months ended March 31, 2022. No such rent has been recognized for the three months ended March 31, 2021. In relation to the Caesars Regional Master Lease, Joliet Lease, Venetian Lease, MGM Master Lease no such rent has been recognized for the three months ended March 31, 2022 and 2021.

(4) Variable ~~Rent~~rent is not subject to the Escalator.

~~Table of Contents~~

~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

~~The following is a summary of the material lease provisions of our Penn National Leases, Hard Rock Cincinnati Lease, Century Portfolio Lease, JACK Cleveland/Thistledown Lease and CSI Lease:~~

($ In thousands) Margaritaville Lease Greektown Lease Hard Rock Cincinnati Lease Century Portfolio Lease JACK Cleveland/Thistledown Lease CSI Lease
Lease Provision
Initial term 15 years 15 years 15 years 15 years 20 years 15 years
Initial term maturity 1/31/2034 5/31/2034 9/30/2034 12/31/2034 1/31/2040 8/31/2036
Renewal terms
NaN, five-year terms
NaN, five-year terms
NaN, five-year terms
NaN, five-year terms
NaN, five-year terms
NaN, five-year terms
Current lease year 2/1/22 - 1/31/23
(Lease Year 4) 6/1/21 - 5/31/22
(Lease Year 3) 10/1/21 - 9/30/22
(Lease Year 3) 1/1/22 - 12/31/22
(Lease Year 3) 2/1/22 - 1/31/22
(Lease Year 3) 9/3/21 - 8/31/22
(Lease Year 1)
Current annual rent (1)
$23,813 $51,321 $44,042 $25,503 $68,704 $32,500
Annual escalator (2)
2% of Building base rent ($17.2 million) 2% of Building base rent ($42.8 million)
Lease years 2-4 - 1.5%
Lease years 5-15 - > 2% / change in CPI (3)
Lease years 2-3 - 1.0%
Lease years 4-15 - > 1.25% / CPI
Lease year 3 - 1.0%
Lease years 4-6 - 1.5%
Lease years 7-20 - >1.5%/change in CPI (capped at 2.5%)
Lease years 2-5 - 1.5%
Lease years 6-15 - >2.0% / change in CPI
Coverage
floor (4)
Net revenue to rent ratio:
6.1x net revenue commencing lease year two
Net revenue ratio to be mutually agreed upon prior to the commencement of lease year five None 7.5x net revenue commencing lease year six None None
Variable Rent adjustment (5)
Lease year three and each and every other lease year thereafter Lease year three and each and every other lease year thereafter
Lease year 8: 80% base rent and 20% variable rent
Lease year 8 and 11: 80% Base Rent and 20% Variable Rent
None
Lease year 8 and 11: 80% Base Rent and 20% Variable Rent
Variable Rent adjustment calculation
4% of the average net revenues for trailing
2 year period less threshold amount (defined as 50% of LTM net revenues prior to acquisition)
4% of the average net revenues for trailing
2 year period less threshold amount (defined as 50% of LTM net revenues prior to acquisition)
4% of revenue increase/decrease:
Year 8: Avg. of years 5-7 less avg. of years 1-3
4% of revenue increase/decrease:
Year 8: Avg. of years 5-7 less avg. of years 1-3
Year 11: Avg. of years 8-10 less avg. of years 5-7
None
4% of revenue increase/decrease:
Year 8: Avg. of years 5-7 less avg. of years 0-2 (6)
Year 11: Avg. of years 8-10 less avg. of years 5-7

~~____________________~~

~~(1) For the JACK Cleveland/Thistledown Lease, the annualized rent is inclusive of an increase of $1.8 million, effective April 1, 2022, related to the gaming patio amenity at JACK Thistledown.~~

(2) Any amounts representing rents in excess of the CPI floors specified above are considered contingent rent in accordance with GAAP. No such rent has been recognized for the three months ended March 31, 2022 and 2021.

~~(3) Starting in lease year 5, if the change in CPI is less than 0.5%, there will be no escalation in rent for such lease year.~~

(4) In the event that the net revenue to rent ratio coverage, as applicable, is below the stated floor, the escalation will be reduced to such amount to achieve the stated net revenue to rent ratio coverage, as applicable, provided that the amount shall never result in a decrease to the prior year’s rent. With respect to the Century Portfolio Lease, if the coverage ratio is below the stated amount the escalator will be reduced to 0.75%.

(5) Variable (percentage rent) is subject to the percentage rent multiplier. With respect to the Penn National Leases, after the first percentage rent reset, any amounts related to variable (percentage) rent are considered contingent rent in accordance with GAAP. In relation to the Margaritaville Lease, we recognized approximately $0.9 million in contingent rent during the three months ended March 31, 2022, and approximately $0.6 million in contingent rent during the three months ended March 31, 2021. In relation to the Greektown Lease during the three months ended March 31, 2022 we recognized approximately $0.5 million in contingent rent. No such contingent rent was recognized for the three months ended March 31, 2021 for the Greektown Lease.

(6) With respect to lease year 0, for the period Caesars Southern Indiana was closed in 2020 due to COVID 19, the CSI Lease provides for the use of 2019 net revenues, pro rated for the period of such closure.

Table of Contents

VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Capital Expenditure Requirements

We manage our residual asset risk through protective covenants in our Lease Agreements, which require the tenant to, among other things, hold specific insurance coverage, engage in ongoing maintenance of the property and invest in capital improvements. With respect to the capital improvements, the Lease Agreements specify certain minimum amounts that our tenants must spend on capital expenditures that constitute installation, restoration and repair or other improvements of items with respect to the leased properties. ~~Except for as specifically provided for in the below~~The following table ~~which~~ summarizes the capital expenditure requirements of ~~the respective~~our tenants under ~~certain of the~~their respective Lease ~~Agreements, the tenants under our other Lease Agreements are all required to spend a minimum of 1% of net revenues or net gaming revenues, as the case may be:~~Agreements:

Provision

Caesars Regional Master Lease and Joliet Lease

Caesars Las Vegas Master Lease

~~Venetian~~MGM Grand/ Mandalay Bay Lease

~~BREIT JV~~Venetian Lease

All Other Leases (1)

Yearly minimum expenditure

1% of net revenues ~~(1)~~(2)

~~2% of net revenues based on rolling three-year basis~~

3.5% of net revenues based on 5-year rolling test, 1.5% monthly reserves

2% of net revenues based on rolling three-year basis

1% of net revenues

Rolling three-year minimum ~~(2)~~(3)

$311 million

$84 million

N/A

____________________

(1) Represents the tenants under our other Lease Agreements not specifically outlined in the table, as specified in the respective Lease Agreements.

(2) The Caesars Leases require a ~~$114.5~~$107.5 million floor on annual capital expenditures for Caesars Palace Las Vegas, Joliet and the Regional Master Lease properties in the aggregate. Additionally, annual building & improvement capital improvements must be equal to or greater than 1% of prior year net revenues.

~~(2)~~(3) Certain tenants under the Caesars Leases, as applicable, are required to spend $380.3 million on capital expenditures (excluding gaming equipment) over a rolling three-year period, with $286.0 million allocated to the regional assets, $84.0 million allocated to Caesars Palace Las Vegas and the remaining balance of $10.3 million to facilities (other than the Harrah’s Las Vegas Facility) covered by any Caesars Lease in such proportion as such tenants may elect. Additionally, the tenants under the Regional Master Lease and Joliet Lease are required to expend a minimum of ~~$537.5~~$531.9 million on capital expenditures (including gaming equipment) across certain of its affiliates and other assets, together with the $380.3 million requirement.

~~Loan Portfolio~~Investments in Loans and Securities

The following is a summary of our investments in loans and securities as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:

($ In thousands) March 31, 2022
Investment Name Loan Type Principal Balance
Carrying Value(1)
Future Funding Commitments(2)
Interest Rate(3)
Final Maturity(4)
Forum Convention Center Mortgage Loan Senior Secured $ 400,000 $ 400,033 $ — 7.9 % 9/18/2025
Chelsea Piers Mortgage Loan Senior Secured 65,000 64,998 15,000 7.0 % 8/31/2027
Great Wolf Mezzanine Loan Mezzanine 49,173 48,097 30,327 8.0 % 7/9/2026
Total $ 514,173 $ 513,128 $ 45,327 7.8 %


March 31, 2023
Investment Type	Principal Balance		Carrying Value(1)		Future Funding Commitments(2)		Weighted Average Interest Rate (3)		Weighted Average Term (4)
Senior Secured Notes (5)	$	85,000	$	77,996	$	—	11.0	%	8.0 years
Senior Secured Loans (6)	526,110		523,707		649,810		7.8	%	3.1 years
Mezzanine Loans	293,510		284,821		321,999		9.7	%	4.3 years





Total	$	904,620	$	886,524	$	971,809	8.7	%	4.0 years

($ In thousands) December 31, 2021
Investment Name Loan Type Principal Balance
Carrying Value(1)
Future Funding Commitments(2)
Interest Rate(3)
Final Maturity(4)
Forum Convention Center Mortgage Loan Senior Secured $ 400,000 $ 400,036 $ — 7.9 % 9/18/2025
Chelsea Piers Mortgage Loan Senior Secured 65,000 64,998 15,000 7.0 % 8/31/2027
Great Wolf Mezzanine Loan Mezzanine 33,614 32,968 45,886 8.0 % 7/9/2026
Total $ 498,614 $ 498,002 $ 60,886 7.8 %


December 31, 2022
Investment Type	Principal Balance		Carrying Value(1)		Future Funding Commitments(2)		Weighted Average Interest Rate (3)		Weighted Average Term (4)
Senior Secured Loans	$	495,901	$	492,895	$	584,049	7.8	%	3.2 years
Mezzanine Loans	196,597		192,898		514,882		9.1	%	4.3 years



Total	$	692,498	$	685,793	$	1,098,931	8.2	%	3.5 years

____________________

(1) Carrying value includes unamortized loan origination costs and are net of allowance for credit losses.

(2) Our future funding commitments are subject to our ~~borrowers'~~borrowers’ compliance with the financial covenants and other applicable provisions of each respective loan agreement.

(3) ~~Represents current~~The weighted average interest rate ~~per annum. The interest~~is based on current outstanding principal balance and SOFR, as applicable for floating rate loans, as of ~~the Forum Convention Center Mortgage Loan is subject to a 2.0% annual escalation.~~March 31, 2023.

(4) ~~Final maturity assumes~~Assumes all extension options are exercised; however, our loans may be repaid, subject to certain conditions, prior to such date.

(5) Represents our investment in the Hard Rock Ottawa Notes, which are accounted for as held-to-maturity securities.

(6) Subsequent to quarter-end, on May 1, 2023, the Forum Convention Center Mortgage Loan, representing $400.0 million in principal balance of our senior secured loans, was repaid in full.

Table of Contents

VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 5 — Allowance for Credit Losses

~~Adoption of ASC 326~~

Under ASC 326, we are required to estimate and record non-cash credit losses related to our historical and any future investments in sales-type leases, lease financing receivables, loans and ~~loans.~~securities classified as held-to-maturity.

During the three months ended March 31, 2023, we recognized a $111.5 million increase in our allowance for credit losses primarily driven by (i) initial CECL allowances in relation to (a) the consolidation of the MGM Grand/Mandalay Bay JV in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition and related classification of the MGM Grand/Mandalay Bay Lease as a sales-type lease, (b) the PURE Canadian Gaming Transaction and related classification of the PURE Master Lease as a lease financing receivable and (c) the purchase of the Hard Rock Ottawa Notes, and (ii) an increase in the Long-Term Period, probability of default, or PD, as a result of a standard annual update made to the Long-Term PD default study we utilize to estimate our CECL allowance. This increase was partially offset by (i) a decrease in the reasonable and supportable period, or R&S Period, PD of our tenants and their parent guarantors as a result of their market performance during the current quarter and (ii) changes in the macroeconomic model used to scenario condition our R&S Period PD.

During the three months ended March 31, 2022, we recognized aan $80.8 million increase in our allowance for credit losses primarily driven by (i) the initial CECL allowance in relation to (a) the Venetian Acquisition and classification of the Venetian Lease as a sales-type lease, (b) the estimated future funding commitments under our Property Growth Fund Agreement with the Venetian ~~PGFA~~Tenant and (c) the sales-type sub-lease agreements we assumed in connection with the Venetian Acquisition and are required to present gross and (ii) the increase in the ~~reasonable and supportable period, or~~ R&S Period ~~probability of default, or~~ PD of our tenants and their parent guarantors as a result of market volatility during the first quarter of 2022. This was partially offset by a decrease in the Long-Term Period PD as a result of a standard annual update made to the Long-Term PD default study we utilize to estimate our CECL allowance.

During the three months ended March 31, 2021, we recognized a $4.4 million decrease in our allowance for credit losses primarily driven by the decrease in the R&S Period PD of our tenants and their parent guarantors as a result of an improvement in their economic outlook due to the reopening of a majority of their gaming operations and relative performance of such operations during the first quarter of 2021.

~~Subsequent to quarter-end, on April 29, 2022, we closed on the previously announced MGP Transactions in which we entered into the MGM Master Lease. As discussed in~~ ~~Note~~ ~~3 -~~ ~~Property~~ ~~Transactions~~ we anticipate the MGM Master Lease will be accounted for as a financing receivable under ASC 310, and, accordingly, we will be required to record a material initial and ongoing CECL allowance as required under ASC 326.

As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, and since our formation date on October 6, 2017, all of our Lease Agreements and loan and security investments are current in payment of their obligations to us and no investments are on non-accrual status.

The following tables detail the allowance for credit losses as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


		March 31, 2022									March 31, 2023
($ In thousands)	($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost		($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost
Investments in leases - sales-type	Investments in leases - sales-type	$	17,617,877	$	(504,178)	$	17,113,699	2.86	%	Investments in leases - sales-type	$	23,296,424	$	(716,604)	$	22,579,820	3.08	%
Investments in leases - financing receivables	Investments in leases - financing receivables	2,742,615		(91,982)		2,650,633		3.35	%	Investments in leases - financing receivables	17,740,690		(689,503)		17,051,187		3.89	%
Investments in loans		514,217		(1,089)		513,128		0.21	%
Investments in loans and securities										Investments in loans and securities	902,247		(15,723)		886,524		1.74	%
Other assets - sales-type sub-leases	Other assets - sales-type sub-leases	455,710		(8,754)		446,956		1.92	%	Other assets - sales-type sub-leases	784,407		(16,971)		767,436		2.16	%
Totals	Totals	$	21,330,419	$	(606,003)	$	20,724,416	2.84	%	Totals	$	42,723,768	$	(1,438,801)	$	41,284,967	3.37	%


		December 31, 2021									December 31, 2022
($ In thousands)	($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost		($ In thousands)	Amortized Cost		Allowance (1)		Net Investment		Allowance as a % of Amortized Cost
Investments in leases - sales-type	Investments in leases - sales-type	$	13,571,516	$	(434,852)	$	13,136,664	3.20	%	Investments in leases - sales-type	$	17,742,712	$	(570,387)	$	17,172,325	3.21	%
Investments in leases - financing receivables	Investments in leases - financing receivables	2,735,948		(91,124)		2,644,824		3.33	%	Investments in leases - financing receivables	17,467,477		(726,707)		16,740,770		4.16	%
Investments in loans		498,775		(773)		498,002		0.15	%
Investments in loans and securities										Investments in loans and securities	692,658		(6,865)		685,793		0.99	%
Other assets - sales-type sub-leases	Other assets - sales-type sub-leases	280,510		(6,540)		273,970		2.33	%	Other assets - sales-type sub-leases	784,259		(19,750)		764,509		2.52	%
Totals	Totals	$	17,086,749	$	(533,289)	$	16,553,460	3.12	%	Totals	$	36,687,106	$	(1,323,709)	$	35,363,397	3.61	%

____________________

(1) The total allowance excludes the CECL allowance for unfunded commitments ~~primarily related to the Venetian PGFA.~~of our senior secured and mezzanine loans. As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, such allowance is ~~$9.1~~$41.3 million and ~~$1.0~~$45.1 million, respectively, and is recorded in Other liabilities.

3231

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following chart reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three months ended March 31, ~~2022~~2023 and ~~2021:~~2022:


		Three Months Ended March 31,					Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021		(In thousands)	2023		2022
Beginning Balance December 31,	Beginning Balance December 31,	$	534,326	$	553,879	Beginning Balance December 31,	$	1,368,819	$	534,326

Initial allowance from current period investments	Initial allowance from current period investments	76,037		—		Initial allowance from current period investments	234,064		76,037
Current period change in credit allowance	Current period change in credit allowance	4,783		(4,380)		Current period change in credit allowance	(122,774)		4,783
Charge-offs	Charge-offs	—		—		Charge-offs	—		—
Recoveries	Recoveries	—		—		Recoveries	—		—
Ending Balance March 31,	Ending Balance March 31,	$	615,146	$	549,499	Ending Balance March 31,	$	1,480,109	$	615,146

Credit Quality Indicators

We assess the credit quality of our investments through the credit ratings of the senior secured debt of the guarantors of our leases, as we believe that our Lease Agreements have a similar credit profile to a senior secured debt instrument. The credit quality indicators are reviewed by us on a quarterly basis as of quarter-end. In instances where the guarantor of one of our Lease Agreements does not have senior secured debt with a credit rating, we use either a comparable proxy company or the overall corporate credit rating, as applicable. We also use this credit rating to determine the Long-Term Period PD when estimating credit losses for each investment.

The following tables detail the amortized cost basis of our investments by the credit quality indicator we assigned to each lease or loan guarantor as of March 31, ~~2022~~2023 and ~~2021:~~2022:


		March 31, 2022															March 31, 2023
(In thousands)	(In thousands)	Ba2		Ba3		B1		B2		B3		N/A(2)		Total		(In thousands)	Ba2		Ba3		B1		B2		B3		N/A(2)		Total
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets (1)		$	4,198,118	$	949,418	$	14,918,185	$	870,774	$	279,740	$	114,183	$	21,330,419
Investments in leases - sales-type and financing receivable, Investments in loans and securities and Other assets (1)																Investments in leases - sales-type and financing receivable, Investments in loans and securities and Other assets (1)	$	4,264,385	$	33,078,752	$	3,208,259	$	877,306	$	875,296	$	419,770	$	42,723,768


		March 31, 2021															March 31, 2022
(In thousands)	(In thousands)	Ba2		Ba3		B1		B2		B3		N/A(2)		Total		(In thousands)	Ba2		Ba3		B1		B2		B3		N/A(2)		Total
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets (1)		$	—	$	—	$	15,761,205	$	917,138	$	281,450	$	65,012	$	17,024,805
Investments in leases - sales-type and financing receivable, Investments in loans and securities and Other assets (1)																Investments in leases - sales-type and financing receivable, Investments in loans and securities and Other assets (1)	$	4,198,118	$	949,418	$	14,918,185	$	870,774	$	279,740	$	114,183	$	21,330,419

____________________

(1)Excludes the CECL allowance for unfunded commitments recorded in Other liabilities as such commitments are not currently reflected on our Balance Sheet, rather the CECL allowance is based on our current best estimate of future funding commitments.

(2)We estimate the CECL allowance for our senior secured and mezzanine loans, excluding the ~~Chelsea Piers~~Forum Convention Center Mortgage Loan and ~~Great Wolf Mezzanine Loan~~Hard Rock Ottawa Notes, using a traditional commercial real estate model based on standardized credit metrics to estimate potential losses.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 6 — Other Assets and Other Liabilities

Other Assets

The following table details the components of our other assets as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


(In thousands)	(In thousands)	March 31, 2022		December 31, 2021		(In thousands)	March 31, 2023		December 31, 2022
Sales-type sub-leases, net (1)	Sales-type sub-leases, net (1)	$	446,956	$	273,970	Sales-type sub-leases, net (1)	$	767,436	$	764,509
Forward-starting interest rate swaps		109,495		884
Property and equipment used in operations, net	Property and equipment used in operations, net	68,193		68,515		Property and equipment used in operations, net	67,383		67,209
Right of use assets and sub-lease right of use assets	Right of use assets and sub-lease right of use assets	49,731		16,811		Right of use assets and sub-lease right of use assets	43,377		45,008
Debt financing costs	Debt financing costs	29,101		24,928		Debt financing costs	14,155		18,646
Deferred acquisition costs	Deferred acquisition costs	22,222		24,690		Deferred acquisition costs	12,245		12,834
Prepaid expenses						Prepaid expenses	7,821		7,348
Tenant receivables	Tenant receivables	6,349		5,032		Tenant receivables	7,743		5,498
Prepaid expenses		3,460		3,660
Other receivables						Other receivables	7,131		6,474
Interest receivable	Interest receivable	2,976		2,780		Interest receivable	5,633		6,911
Other receivables		986		341

Other	Other	2,114		3,082		Other	1,125		1,891
Total other assets	Total other assets	$	741,583	$	424,693	Total other assets	$	934,049	$	936,328

(1) As of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, sales-type sub-leases are net of ~~$8.8~~$17.0 million and ~~$6.5~~$19.8 million of Allowance for credit losses, respectively. Refer to Note 5 - Allowance for Credit Losses for further details.

Property and equipment used in operations, included within other assets, is primarily attributable to the land, building and improvements of our golf operations and consists of the following as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


(In thousands)	(In thousands)	March 31, 2022		December 31, 2021		(In thousands)	March 31, 2023		December 31, 2022
Land and land improvements	Land and land improvements	$	59,497	$	59,250	Land and land improvements	$	60,351	$	60,332
Buildings and improvements	Buildings and improvements	15,045		14,880		Buildings and improvements	15,219		15,125
Furniture and equipment	Furniture and equipment	9,056		9,014		Furniture and equipment	10,439		9,563
Total property and equipment used in operations	Total property and equipment used in operations	83,598		83,144		Total property and equipment used in operations	86,009		85,020
Less: accumulated depreciation	Less: accumulated depreciation	(15,405)		(14,629)		Less: accumulated depreciation	(18,626)		(17,811)
Total property and equipment used in operations, net	Total property and equipment used in operations, net	$	68,193	$	68,515	Total property and equipment used in operations, net	$	67,383	$	67,209


		Three Months Ended March 31,				Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021			(In thousands)	2023		2022
Depreciation expense	Depreciation expense	$	776	$	792		Depreciation expense	$	814	$	776

Other Liabilities

The following table details the components of our other liabilities as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


(In thousands)	(In thousands)	March 31, 2022		December 31, 2021		(In thousands)	March 31, 2023		December 31, 2022
Finance sub-lease liabilities	Finance sub-lease liabilities	$	455,710	$	280,510	Finance sub-lease liabilities	$	784,407	$	784,259
Deferred financing liabilities	Deferred financing liabilities	73,600		73,600		Deferred financing liabilities	73,600		73,600
Lease liabilities and sub-lease liabilities	Lease liabilities and sub-lease liabilities	49,731		16,811		Lease liabilities and sub-lease liabilities	43,377		45,039
CECL allowance for unfunded commitments	CECL allowance for unfunded commitments	9,143		1,037		CECL allowance for unfunded commitments	41,308		45,110
Derivative liability						Derivative liability	7,393		—
Deferred income taxes	Deferred income taxes	3,999		3,879		Deferred income taxes	4,333		4,339

Other						Other	125		125
Total other liabilities	Total other liabilities	$	592,183	$	375,837	Total other liabilities	$	954,543	$	952,472

3433

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 7— Debt

The following tables detail our debt obligations as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


($ In thousands)	($ In thousands)	March 31, 2022						($ In thousands)	March 31, 2023
Description of Debt	Description of Debt	Maturity	Interest Rate	Face Value		Carrying Value(1)		Description of Debt	Maturity	Interest Rate	Principal Amount		Carrying Value (1)
Revolving Credit Facility ~~(2)~~	Revolving Credit Facility ~~(2)~~	2026	SOFR + 1.425%	$	600,000	$	600,000	Revolving Credit Facility ~~(2)~~
Delayed Draw Term Loan (2)		2025	SOFR + 1.700%	—		—
November 2019 Notes(3)
USD Borrowings (2)								USD Borrowings (2)	2026	SOFR + 1.05%	$	—	$	—
CAD Borrowings (2) (3)								CAD Borrowings (2) (3)	2026	CDOR + 1.05%	103,572		103,572
MGM Grand/Mandalay Bay CMBS Debt (4)								MGM Grand/Mandalay Bay CMBS Debt (4)	2032	3.558%	3,000,000		2,753,800
November 2019 Notes (5)								November 2019 Notes (5)
2026 Maturity	2026 Maturity	2026	4.250%	1,250,000		1,236,685		2026 Maturity	2026	4.250%	1,250,000		1,239,538
2029 Maturity	2029 Maturity	2029	4.625%	1,000,000		987,731		2029 Maturity	2029	4.625%	1,000,000		989,331
February 2020 Notes(3)
February 2020 Notes (5)								February 2020 Notes (5)
2025 Maturity	2025 Maturity	2025	3.500%	750,000		743,263		2025 Maturity	2025	3.500%	750,000		745,606
2027 Maturity	2027 Maturity	2027	3.750%	750,000		741,828		2027 Maturity	2027	3.750%	750,000		743,505
2030 Maturity	2030 Maturity	2030	4.125%	1,000,000		987,507		2030 Maturity	2030	4.125%	1,000,000		988,999
April 2022 Notes (5)								April 2022 Notes (5)
2025 Maturity								2025 Maturity	2025	4.375%	500,000		496,701
2028 Maturity								2028 Maturity	2028	4.516% (6)	1,250,000		1,237,710
2030 Maturity								2030 Maturity	2030	4.541% (6)	1,000,000		988,050
2032 Maturity								2032 Maturity	2032	3.980% (6)	1,500,000		1,481,308
2052 Maturity								2052 Maturity	2052	5.625%	750,000		735,483
Exchange Notes (5)								Exchange Notes (5)
2024 Maturity								2024 Maturity	2024	5.625%	1,024,169		1,028,276
2025 Maturity								2025 Maturity	2025	4.625%	799,368		785,244
2026 Maturity								2026 Maturity	2026	4.500%	480,524		464,191
2027 Maturity								2027 Maturity	2027	5.750%	729,466		737,943
2028 Maturity								2028 Maturity	2028	4.500%	349,325		337,168
2029 Maturity								2029 Maturity	2029	3.875%	727,114		663,086
MGP OP Notes (5)								MGP OP Notes (5)
2024 Maturity								2024 Maturity	2024	5.625%	25,831		25,888
2025 Maturity								2025 Maturity	2025	4.625%	632		617
2026 Maturity								2026 Maturity	2026	4.500%	19,476		18,604
2027 Maturity								2027 Maturity	2027	5.750%	20,534		20,521
2028 Maturity								2028 Maturity	2028	4.500%	675		641
2029 Maturity								2029 Maturity	2029	3.875%	22,886		20,458
Total Debt	Total Debt			$	5,350,000	$	5,297,014	Total Debt		4.340% (7)	$	17,053,572	$	16,606,240

($ In thousands) December 31, 2021
Description of Debt
Maturity Interest Rate Face Value
Carrying Value(1)
Secured Revolving Credit Facility (4)
2024 L + 2.00% $ — $ —
November 2019 Notes(3)
2026 Maturity 2026 4.250% 1,250,000 1,235,972
2029 Maturity 2029 4.625% 1,000,000 987,331
February 2020 Notes(3)
2025 Maturity 2025 3.500% 750,000 742,677
2027 Maturity 2027 3.750% 750,000 741,409
2030 Maturity 2030 4.125% 1,000,000 987,134
Total Debt $ 4,750,000 $ 4,694,523

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)


($ In thousands)	December 31, 2022
Description of Debt	Maturity	Interest Rate	Principal Amount		Carrying Value (1)
Revolving Credit Facility (2)(3)	2026	SOFR + 1.05%	$	—	$	—
Delayed Draw Term Loan (8)	2025	SOFR + 1.20%	—		—
November 2019 Notes (5)
2026 Maturity	2026	4.250%	1,250,000		1,238,825
2029 Maturity	2029	4.625%	1,000,000		988,931
February 2020 Notes (5)
2025 Maturity	2025	3.500%	750,000		745,020
2027 Maturity	2027	3.750%	750,000		743,086
2030 Maturity	2030	4.125%	1,000,000		988,626
April 2022 Notes (5)
2025 Maturity	2025	4.375%	500,000		496,314
2028 Maturity	2028	4.516% (6)	1,250,000		1,237,082
2030 Maturity	2030	4.541% (6)	1,000,000		987,618
2032 Maturity	2032	3.980% (6)	1,500,000		1,480,799
2052 Maturity	2052	5.625%	750,000		735,360
Exchange Notes (5)
2024 Maturity	2024	5.625%	1,024,169		1,029,226
2025 Maturity	2025	4.625%	799,368		783,659
2026 Maturity	2026	4.500%	480,524		463,018
2027 Maturity	2027	5.750%	729,466		738,499
2028 Maturity	2028	4.500%	349,325		336,545
2029 Maturity	2029	3.875%	727,114		660,489
MGP OP Notes (5)
2024 Maturity	2024	5.625%	25,831		25,901
2025 Maturity	2025	4.625%	632		615
2026 Maturity	2026	4.500%	19,476		18,542
2027 Maturity	2027	5.750%	20,534		20,520
2028 Maturity	2028	4.500%	675		639
2029 Maturity	2029	3.875%	22,886		20,361
Total Debt		4.496% (7)	$	13,950,000	$	13,739,675

____________________

(1)Carrying value is net of unamortized original issue discount and unamortized debt issuance costs incurred in conjunction with debt.

(2)Interest on any outstanding balance is payable monthly. Borrowings under the Revolving Credit Facility ~~and Delayed Draw Term Loan~~ bear interest at a rate based on a credit rating-based pricing grid with a range of 0.775% to 1.325% margin plus SOFR ~~and a range of 0.85% to 1.60% margin plus SOFR, respectively, depending on our credit ratings,~~(or CDOR, as applicable) with an additional 0.10% ~~adjustment.~~adjustment for SOFR loans, as applicable. Additionally, the commitment fees under the Revolving Credit Facility ~~and Delayed Draw Term Loan~~ are calculated on a credit rating-based pricing grid with a range of 0.15% to 0.375%, ~~for both instruments~~ depending on our credit ratings. For the three months ended March 31, ~~2022,~~2023, the commitment ~~fees~~fee for ~~both~~ the Revolving Credit Facility ~~and Delayed Draw Term Loan were 0.375%~~was 0.250%.

(3)On January 3, 2023, we drew on the Revolving Credit Facility in the amount of C$140.0 million to fund a portion of the purchase price of the PURE Canadian Gaming Transaction. The balance above is inclusive of foreign currency remeasurement.

(4)Interest is payable monthly.

(5)Interest is payable semi-annually.

~~(4)~~(6)~~On February 8, 2022, we terminated~~Interest rates represent the Secured Revolving Credit Facility (including the first priority lien on substantially all of VICI PropCo’s and its existing and subsequently acquired wholly owned material domestic restricted subsidiaries’ material assets) and the Existing Credit Agreement, and entered into the Credit Agreement providingcontractual interest rates adjusted to account for the ~~Credit Facilities, as~~impact of the forward-starting interest rate swaps and treasury locks (as further described ~~below.~~in Note 8 - Derivatives). The contractual interest rates on the April 2022 Notes maturing 2028, 2030 and 2032 are 4.750%, 4.950% and 5.125%, respectively.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

(7)The interest rate represents the weighted average interest rates of the Senior Unsecured Notes adjusted to account for the impact of the forward-starting interest rate swaps and treasury locks (as further described in Note 8 - Derivatives), as applicable. The contractual weighted average interest rate as of March 31, 2023, which excludes the impact of the forward-starting interest rate swaps and treasury locks, is 4.45%.

(8)The Delayed Draw Term Loan was available to be drawn up to 12 months following the effective date of February 8, 2022. On February 8, 2023, the Delayed Draw Term Loan facility expired undrawn in accordance with its terms.

The following table is a schedule of future minimum principal payments of our debt obligations as of March 31, ~~2022:~~2023:


(In thousands)	(In thousands)	Future Minimum Payments		(In thousands)	Future Minimum Principal Payments
2022 (remaining)		$	—
2023		—
2023 (remaining)				2023 (remaining)	$	—
2024	2024	—		2024	1,050,000
2025	2025	750,000		2025	2,050,000
2026	2026	1,850,000		2026	1,853,572
2027	2027	750,000		2027	1,500,000
2028				2028	1,600,000
Thereafter	Thereafter	2,000,000		Thereafter	9,000,000
Total minimum repayments		$	5,350,000
Total minimum principal payments				Total minimum principal payments	$	17,053,572

Senior Unsecured Notes

Exchange Notes

~~Subsequent~~On September 13, 2021, we announced that the VICI Issuers commenced (i) private exchange offers to ~~quarter-end,~~certain eligible holders (collectively, the “Exchange Offers”) for any and all of each series of the MGP OP Notes for up to an aggregate principal amount of $4.2 billion of new notes issued by the VICI Issuers and (ii) consent solicitations with respect to each series of MGP OP Notes (collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the indentures governing the MGP OP Notes (collectively, the “MGP OP Notes Indentures”), which, among other things, eliminated or modified certain of the covenants, restrictions, provisions and events of default in each of the MGP OP Notes Indentures. Upon settlement of the Exchange Offers and Consent Solicitations on April 29, 2022, supplemental indentures to each of the MGP OP Notes Indentures that effected the proposed amendments became operative.

On April 29, 2022, the VICI Issuers issued $1,024.2 million in aggregate principal amount of 5.625% Senior Notes due May 1, 2024, $799.4 million in aggregate principal amount of 4.625% Senior Notes due June 15, 2025, $480.5 million in aggregate principal amount of 4.500% Senior Notes due September 1, 2026, $729.5 million in aggregate principal amount of 5.750% Senior Notes due February 1, 2027, $349.3 million in aggregate principal amount of 4.500% Senior Notes due January 15, 2028 and $727.1 million in aggregate principal amount of 3.875% Senior Notes due February 15, 2029 in exchange for the validly tendered and not validly withdrawn MGP OP Notes, originally issued by the MGP Issuers, pursuant to the settlement of the Exchange Offers and Consent Solicitations in connection with the closing of the MGP Transactions. The Exchange Notes were issued with the same interest rate, maturity date and redemption terms as the corresponding series of MGP OP Notes, in each case under a supplemental indenture dated as of April 29, 2022, between the VICI Issuers and UMB Bank, National Association, as trustee (the “Trustee”)

Interest on the Exchange Notes is payable semi-annually in cash in arrears on (i) May 1 and November 1 of each year, with respect to the Exchange Notes due 2024, (ii) June 15 and December 15 of each year, with respect to the Exchange Notes due 2025, (iii) March 1 and September 1 of each year, with respect to the Exchange Notes due 2026, (iv) February 1 and August 1 of each year, with respect to the Exchange Notes due 2027, (v) January 15 and July 15 of each year, with respect to the Exchange Notes due 2028, and (vi) February 15 and August 15 of each year, with respect to the Exchange Notes due 2029..

The Exchange Notes due 2025, 2026, 2027, 2028, and 2029 are redeemable at our option, in whole or in part, at any time on or after February 1, 2024, March 15, 2025, June 1, 2026, November 1, 2026, October 15, 2027 and November 15, 2028, respectively, at the redemption prices set forth in the respective indenture governing such Exchange Notes. We may redeem some or all of such notes prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium.

MGP OP Notes

Following the issuance of the Exchange Notes pursuant to the settlement of the Exchange Offers and Consent Solicitations, $25.8 million in aggregate principal amount of MGP OP Notes due 2024, $0.6 million in aggregate principal amount of MGP OP Notes due 2025, $19.5 million in aggregate principal amount of MGP OP Notes due 2026, $20.5 million in aggregate principal amount of MGP OP Notes due 2027, $0.7 million in aggregate principal amount of MGP OP Notes due 2028 and $22.9 million in aggregate principal amount of MGP OP Notes due 2029 remain outstanding.

~~Interest on each~~

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Each series of the MGP OP Notes is ~~payable semi-annually in cash in arrears on the same dates as set forth above with respect to the corresponding maturity series of the Exchange Notes. In addition, each series of the MGP OP Notes are~~ redeemable at our option, in whole or in part, at any time on or after the same dates as set forth above with respect to the corresponding maturity series of the Exchange Notes. We may redeem some or all of such notes prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium.

~~Table of Contents~~

~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

April 2022 Notes

~~Subsequent to quarter-end, on~~On April 29, 2022, VICI LP, our wholly owned subsidiary, issued (i) $500.0 million in aggregate principal amount of 4.375% Senior Notes due 2025, which mature on May 15, 2025, (ii) $1,250.0 million in aggregate principal amount of 4.750% Senior Notes due 2028, which mature on February 15, 2028, (iii) $1,000.0 million in aggregate principal amount of 4.950% Senior Notes due 2030, which mature on February 15, 2030, (iv) $1,500.0 million in aggregate principal amount of 5.125% Senior Notes due 2032, which mature on May 15, 2032, and (v) $750.0 million in aggregate principal amount of 5.625% Senior Notes due 2052, which mature on May 15, 2052, (collectively, the “April 2022 Notes”) in each case under a supplemental indenture dated as of April 29, 2022, between VICI LP and the Trustee. We used the net proceeds of the offering to (i) fund the consideration for the redemption of a majority of the VICI OP Units received by MGM in the Partnership Merger for $4,404.0 million in cash in connection with the closing of the MGP Transactions on April 29, 2022, and (ii) pay down the outstanding $600.0 million balance on our Revolving Credit Facility.

Interest on the April 2022 Notes due 2025, 2028 and 2052 is payable semi-annually in cash in arrears on May 15 and November 15 of each year. Interest on the April 2022 Notes due 2028 and 2030 is payable semi-annually in cash in arrears on February 15 and August 15 of each year. Prior to their maturity date, in the case of the April 2022 Notes due 2025, and January 15, 2028 (one month prior to the maturity date of the April 2022 Notes due 2028), December 15, 2029 (two months prior to the maturity date of the April 2022 Notes due 2030), February 15, 2032 (three months prior to the maturity date of the April 2022 Notes due 2032) and November 15, 2051 (six months prior to the maturity date of the April 2022 Notes due 2052), respectively, in the case of the April 2022 Notes due 2028, 2030, 2032 and 2052, we may redeem the April 2022 Notes at our option, in whole or in part, at any time and from time to time, at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. On or after January 15, 2028, December 15, 2029, February 15, 2032 and November 15, 2051, respectively, we may redeem the April 2022 Notes due 2028, 2030, 2032 and 2052 at a redemption price equal to 100% of the principal amount of such Notes to be redeemed, plus accrued and unpaid interest thereon to the redemption date.

~~November 2019 Notes~~

On November 26, 2019, the VICI Issuers issued (i) $1,250.0 million in aggregate principal amount of 4.250% Senior Notes due 2026, which mature on December 1, 2026, and (ii) $1,000.0 million in aggregate principal amount of 4.625% Senior Notes due 2029, which mature on December 1, 2029 (collectively, the “November 2019 Notes”), under separate indentures, each dated as of November 26, 2019, among the VICI Issuers, the subsidiary guarantors party thereto and the Trustee.

Interest on the November 2019 Notes is payable semi-annually in cash in arrears on June 1 and December 1 of each year. The November 2019 Notes due 2026 and 2029 are redeemable at our option, in whole or in part, at any time on or after December 1, 2022 and December 1, 2024, respectively, at the redemption prices set forth in the respective indenture. We may redeem some or all of the November 2019 Notes due 2026 or 2029 prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. Prior to December 1, 2022, we may redeem up to 40% of the aggregate principal amount of the November 2019 Notes due 2026 or 2029 using the proceeds of certain equity offerings at the redemption price set forth in the respective indenture.

February 2020 Notes

On February 5, 2020, the VICI Issuers issued (i) $750.0 million in aggregate principal amount of 3.500% Senior Notes due 2025, which mature on February 15, 2025, (ii) $750.0 million in aggregate principal amount of 3.750% Senior Notes due 2027, which mature on February 15, 2027, and (iii) $1,000.0 million in aggregate principal amount of 4.125% Senior Notes due 2030, which mature on August 15, 2030 (collectively, the “February 2020 Notes”), under separate indentures, each dated as of February 5, 2020, among the VICI Issuers, the subsidiary guarantors party thereto and the Trustee.

~~Interest on the February 2020 Notes is payable semi-annually in cash in arrears on February 15 and August 15 of each year.~~ The February 2020 Notes due 2025, 2027 and 2030 are redeemable at our option, in whole or in part, at any time on or after February 15, 2022, February 15, 2023, and February 15, 2025, respectively, at the redemption prices set forth in the respective indenture. We may redeem some or all of the February 2020 Notes due 2025, 2027 and 2030 prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. Prior to February 15, 2022, with respect to the February 2020 Notes due 2025, and February 15, 2023, with respect to the February 2020 Notes due 2027 and 2030, we may redeem up to 40% of the aggregate principal amount of the February 2020 Notes due 2025, 2027 and 2030 using the proceeds of certain equity offerings at the redemption price set forth in the respective indenture.

November 2019 Notes

The November 2019 Notes due 2026 and 2029 are redeemable at our option, in whole or in part, at any time on or after December 1, 2022 and December 1, 2024, respectively, at the redemption prices set forth in the respective indenture. We may redeem some or all of the November 2019 Notes due 2026 or 2029 prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. Prior to December 1, 2022, we may redeem up to 40% of the aggregate principal amount of the November 2019 Notes due 2026 or 2029 using the proceeds of certain equity offerings at the redemption price set forth in the respective indenture.

Table of Contents

VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Guarantee and Financial Covenants

None of the Senior Unsecured Notes are guaranteed by any subsidiaries of VICI LP. The Exchange Notes, the MGP OP Notes and the April 2022 Notes benefit from a pledge of the limited partnership interests of VICI LP directly owned by VICI OP (the “Limited Equity Pledge”). The Limited Equity Pledge has also been granted in favor of (i) the administrative agent and the lenders under the Credit Agreement and (ii) the trustee under the indentures governing, and the holders of, the November 2019 Notes and the February 2020 Notes.

Until February 8, 2022, the November 2019 Notes and February 2020 Notes were fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each guaranteed indebtedness under the Existing Credit Agreement. All subsidiary guarantees were released upon the termination of the Existing Credit Agreement concurrently with the execution of the Credit Agreement on February 8, 2022.

VICI LP and its subsidiaries represent our “Real Property Business” segment, with the “Golf Course Business” segment corresponding to the portion of our business operated through entities that are not direct or indirect subsidiaries of VICI LP or obligors of the November 2019 Notes, February 2020 Notes and Exchange Notes. Refer to ~~Note 14 - Segment Information~~ ~~for more information about our segments.~~

The respective indentures governing the November 2019 Notes, February 2020 Notes and Exchange Notes each contain covenants that limit the VICI LP’s and its restricted subsidiaries’ ability to, among other things: (i) incur additional debt; (ii) pay dividends on or make other distributions in respect of their capital stock or make other restricted payments; (iii) make certain investments; (iv) sell certain assets; (v) create or permit to exist dividend and/or payment restrictions affecting the restricted subsidiaries; (vi) create liens on certain assets to secure debt; (vii) consolidate, merge, sell or otherwise dispose of all or substantially all of the VICI Issuers’ assets; (viii) enter into certain transactions with their affiliates; and (ix) designate restricted subsidiaries as unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to VICI to the extent necessary for VICI to fund a dividend or distribution by VICI that it believes is necessary to maintain its status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed 95% of our cumulative Funds From Operations (as defined in the respective indentures), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) the issuance of certain convertible indebtedness of VICI LP. As of March 31, 2022, the restricted net assets of VICI LP were approximately $7.5 billion.

Pursuant to the terms of the respective indentures, in the event that the November 2019 Notes, February 2020 Notes and Exchange Notes (i) are rated investment grade by at least two of S&P, Moody’s and Fitch and (ii) no default or event of default has occurred and is continuing under the respective indentures, VICI LP and its restricted subsidiaries will no longer be subject to certain of the restrictive covenants under such indentures. On April 18, 2022, the November 2019 Notes, February 2020 Notes and Exchange Notes were rated investment grade by each of S&P and Fitch and VICI LP notified the Trustee of such Suspension Date (as defined in the indentures). Accordingly, VICI LP and its restricted subsidiaries are no longer subject to certain of the restrictive covenants under such indentures, but are subject to a maintenance covenant requiring VICI LP and its restricted subsidiaries to maintain a certain total unencumbered assets to unsecured debt ratio. In the event that the November 2019 Notes, February 2020 Notes and Exchange Notes are no longer rated investment grade by at least two of S&P, Moody’s and Fitch, then VICI LP and its restricted subsidiaries will again be subject to all of the covenants of the respective indentures, as applicable, but will no longer be subject to the maintenance covenant.

The indenture governing the April 2022 Notes contains certain covenants that limit the ability of VICI LP and its subsidiaries to incur secured and unsecured indebtedness and VICI LP to consummate a merger, consolidation or sale of all or substantially all of its assets. In addition, VICI LP is required to maintain total unencumbered assets of at least 150% of total unsecured indebtedness. These covenants are subject to a number of important exceptions and qualifications.

~~Table of Contents~~

~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

Unsecured Credit Facilities

On February 8, 2022, VICI LP entered into the Credit Agreement providing for (i) the Revolving Credit Facility in the amount of $2.5 billion scheduled to mature on March 31, 2026 and (ii) the Delayed Draw Term Loan in the amount of $1.0 billion scheduled to mature on March 31, 2025. The Delayed Draw Term Loan was available to be drawn for up to 12 months following the effective date and, accordingly, expired undrawn in accordance with its terms on February 8, 2023.

The Revolving Credit Facility includes 2two six-month maturity extension options ~~and the Delayed Draw Term Loan includes 2 twelve-month extension options, in each case,~~ the exercise of which is subject to customary conditions and the payment of an extension fee of 0.0625% on the extended ~~commitments, in the case of each six-month extension of~~commitments. Additionally, the Revolving Credit Facility ~~and 0.125% on the extended term loans, in the case of each twelve-month extension of the Delayed Draw Term Loan. The Credit Facilities include~~includes the option to increase the revolving loan commitments by up to $1.0 billion ~~and increase the delayed draw term loan commitments or add one or more new tranches of term loans by up to $1.0 billion in the aggregate, in each case,~~ to the extent that any one or more lenders (from the syndicate or otherwise) agree to provide such additional credit extensions. On July 15, 2022, the Credit Agreement was amended pursuant to a First Amendment among VICI LP and the lenders party to the Credit Agreement, in order to permit borrowings under the Revolving Credit Facility in certain foreign currencies in an aggregate principal amount of up to the equivalent of $1.25 billion.

Borrowings under the Revolving Credit ~~Facilities~~Facility will bear interest, at VICI LP’s option, ~~(i) with respect to the Revolving Credit Facility,~~ at a rate based on SOFR (or CDOR for Canadian dollars) (including a credit spread ~~adjustment)~~adjustment for SOFR) plus a margin ranging from 0.775% to 1.325% or a base rate (or Canadian prime rate for Canadian dollars) plus a margin ranging from 0.00% to 0.325%, in each case, with the actual margin determined according to VICI LP’s debt ratings, and (ii) with respect to the Delayed Draw Term Loan, at a rate based on SOFR (including a credit spread adjustment) plus a margin ranging from 0.85% to 1.60% or a base rate plus a margin ranging from 0.00% to 0.60%, in each case, with the actual margin determined according to VICI LP’s debt ratings. The base rate for USD is the highest of (i) the prime rate of interest last quoted by the Wall Street Journal in the U.S. then in effect, (ii) the NYFRB rate from time to time plus 0.5% and (iii) the SOFR rate for a one-month interest period plus 1.0%, subject in each case to a floor of 1.0%. The Canadian prime rate is the highest of (i) the PRIMCAN Index rate and (ii) the average rate for thirty day Canadian Dollar bankers’ acceptance quoted by Reuters plus 1.0%, subject in each case to a floor of 1.0%. In addition, the Revolving Credit Facility requires the payment of a facility fee ranging from 0.15% to 0.375% (depending on VICI LP’s debt rating) of total revolving commitments.

Pursuant to the terms of the Credit Agreement, VICI LP is subject to, among other things, customary covenants and the maintenance of various financial covenants. The Credit Agreement is consistent with certain tax-related requirements related to security for the Company’s debt.

On February 18, 2022, we drew on the Revolving Credit Facility in the amount of $600.0 million to fund a portion of the purchase price of the Venetian Acquisition. ~~Subsequent to quarter-end, on~~On April 29, 2022, we repaid the outstanding balance of the Revolving Credit Facility using the proceeds from the April 2022 ~~Notes.~~

~~Senior Secured Credit Facilities~~

In December 2017, VICI PropCo entered into a credit agreement (as amended, amended and restated and otherwise modified, the “2017 Credit Agreement”), which was subsequently amended and restated in May 2019 and amended in January 2020, comprised of a $2.2 billion Term Loan B Facility and a $1.0 billion Secured Revolving Credit Facility (the Term Loan B Facility and the Secured Revolving Credit Facility, as amended, are referred to together as the “Senior Secured Credit Facilities”). The Senior Secured Credit Facilities were secured by a first priority lien on substantially all of VICI PropCo’s material assets (and those of its existing and subsequently acquired wholly owned material domestic restricted subsidiaries), including mortgages on their respective real estate, subject to customary exclusions. VICI was not subject to the covenants of the 2017 Credit Agreement nor was VICI a guarantor of the Senior Secured Credit Facilities.

~~On September 15, 2021, we used the proceeds from the settlement of the June 2020 Forward Sale Agreement (as defined in~~ ~~Note 11- Stockholders~~’ ~~Equity~~) and the proceeds from the issuance of 65,000,000 shares of common stock from the September 2021 equity offering to repay in full the Term Loan B Facility, including outstanding accrued interest. In connection with the full repayment, we recognized a loss on extinguishment of debt of $15.6 million during the year ended December 31, 2021, representing the write-off of the remaining unamortized deferred financing costs. Following the repayment in full of the Term Loan B Facility, the Secured Revolving Credit Facility remained in effect pursuant to the 2017 Credit Agreement.

On February 8, 2022, we terminated the Secured Revolving Credit Facility (including the first priority lien on substantially all of VICI PropCo’s material assets and those of its existing and subsequently acquired wholly owned material domestic restricted subsidiaries) and the 2017 Credit Agreement, and entered into the Credit Agreement providing for the Credit Facilities, as described above.Notes offering.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

On January 3, 2023, we drew on the Revolving Credit Facility in the amount of C$140.0 million to fund a portion of the purchase price of the PURE Canadian Gaming Transaction.

MGM Grand/Mandalay Bay CMBS Debt

On January 9, 2023, as a result of the MGM Grand/Mandalay Bay JV Interest Acquisition, we consolidated the assets and liabilities of the MGM Grand/Mandalay Bay JV, which includes the $3.0 billion in principal amount of outstanding CMBS debt (the “MGM Grand/ Mandalay Bay CMBS Debt”). The MGM Grand/Mandalay Bay CMBS Debt was originally incurred on February 14, 2020 pursuant to a loan agreement (as amended from time to time, the “MGM Grand/Mandalay Bay CMBS Loan Agreement”), and is secured primarily by mortgages on certain affiliates of the MGM Grand/Mandalay Bay JV’s fee interest in the real estate assets related to the MGM Grand Las Vegas and the Mandalay Bay Resort and Casino. The MGM Grand/Mandalay Bay CMBS Debt matures in March 2032 and bears interest at 3.558% per annum until March 2030 at which time the rate can change in accordance with the terms of the MGM Grand Mandalay Bay CMBS Loan Agreement until maturity. The MGM Grand/Mandalay Bay CMBS Loan Agreement contains certain customary affirmative and negative covenants and events of default, including, among other things, restrictions on the ability of the MGM Grand/Mandalay Bay JV and certain of its affiliates to incur additional debt and transfer, pledge or assign certain equity interests or its assets, and covenants requiring certain affiliates of the MGM Grand/Mandalay Bay JV to exist as “special purpose entities,” maintain certain ongoing reserve funds and comply with other customary obligations for commercial mortgage-backed securities loan financings.

Bridge Facilities

~~MGP Transactions Bridge Facility~~

On March 2, 2021 and August 4, 2021, in connection with the completion of the Venetian Acquisition and MGP Transactions, respectively, VICI PropCo entered into a Commitment ~~Letter (the “MGP Transactions Commitment Letter”)~~Letters with ~~Morgan Stanley Senior Funding, Inc., JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc. (collectively, the “MGP Transactions Bridge Lender”),~~certain lenders pursuant to which and subject to the terms and conditions set forth therein, the MGP Transactions Bridge Lender provided commitments in an amount up to $9.3 billion in the aggregate, consisting of a 364-day first lien secured bridge facility (the “MGP Transactions Bridge Facility”), for the purpose of providing a portion of the financing necessary to fund (i) the consideration to be paid in connection with the Redemption pursuant to the terms of the MGP Master Transaction Agreement, (ii) amounts to be paid in connection with offers to repurchase the MGP OP Notes pursuant to their respective indentures if the assumption of such notes by VICI LP in the Mergers is unsuccessful and (iii) related fees and expenses. On September 23, 2021, following the successful early tender results and participation of the Exchange Offers and Consent Solicitations, the execution of the MGP OP Supplemental Indentures and the elimination of the change of control covenants in connection therewith, $4,242.0 million in committed financing (representing the second tranche of the MGP Transactions Bridge Facility) was terminated in accordance with the terms of the MGP Transactions Commitment Letter. Subsequent to quarter-end, on April 29, 2022, the remaining commitments under the MGP Transactions Bridge Facility were fully terminated in connection with the closing of the MGP Transactions.

The MGP Transactions Bridge Facility was subject to a tiered commitment fee based on the period the commitment is outstanding and a structuring fee. For the three months ended March 31, 2022, we recognized $11.5 million of fees related to the MGP Transactions Bridge Facility in Interest expense on our Statement of Operations. We did not recognize any such amount for the three months ended March 31, 2021 since the MGP Transactions Bridge Facility was entered into on August 4, 2021.

~~Venetian Acquisition Bridge Facility~~

On March 2, 2021, in connection with the Venetian Acquisition, VICI PropCo entered into a Commitment Letter (the “Venetian Acquisition Commitment Letter”) with Deutsche Bank Securities Inc. and Deutsche Bank AG Cayman Islands Branch, and Morgan Stanley Senior Funding, Inc. (collectively, the “Venetian Acquisition Bridge Lender”), pursuant to which, and subject to the terms and conditions set forth therein, the Venetian Acquisition Bridge Lender hasthey provided commitments in an amount up to $4.0 billion and $9.3 billion, respectively, in the aggregate, each consisting of a 364-day first lien secured bridge facility (the “Venetian Acquisition Bridge Facility”) and the “MGP Transactions Bridge Facility,” respectively), for the purpose of providing a portion of the financing necessary to fund the consideration in connection with the Venetian PropCo Acquisition. On March 8, 2021, following the entry into the March 2021 Forward Sale Agreements, the commitments under the Venetian Acquisition Bridge Facility were reduced by $1,890.0 million. On December 13, 2021, the commitments under Venetian Bridge Acquisition Facility were reduced by an additional $1,410.0 million. On February 23, 2022, the remaining commitments under the Venetian Acquisition Bridge Facility were fully terminated in connection with the closing of the Venetian ~~Acquisition.~~

~~The Venetian~~ Acquisition ~~Bridge Facility was~~and MGP Transactions, as applicable. In each case the commitments were subject to a tiered commitment fee based on the period the respective commitment iswas outstanding and a structuring fee. ~~For~~During the three months ended March 31, 2022, ~~and 2021,~~ we recognized ~~$1.0~~$12.5 million ~~and $2.4 million, respectively,~~in such fees which were recorded in Interest expense in our Statement of Operations. We did not recognize any such fees ~~related to~~during the three months ended March 31, 2023, since the Venetian Acquisition Bridge Facility and MGP Transactions Bridge Facility were fully terminated on February 23, 2022 and April 29, 2022, respectively, in ~~Interest expense on our Statement of Operations.~~connection with such closings.

Financial Covenants

As described above, our debt obligations are subject to certain customary financial and protective covenants that restrict VICI LP, VICI PropCo and its subsidiaries’ ability to incur additional debt, sell certain asset and restrict certain payments, among other things. These covenants are subject to a number of exceptions and qualifications, including the ability to make restricted payments to maintain our REIT status. At March 31, ~~2022,~~2023, we ~~are~~were in compliance with all financial covenants under our debt obligations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 8 — Derivatives

~~From December 2021 through~~Forward-Starting Derivatives

In March ~~2022,~~2023, we entered into 5two forward-starting interest rate swap agreements with an aggregate notional amount of $250.0 million to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance of $250.0 million of senior unsecured notes. We hedged our exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending December 2024. The forward-starting interest rate swaps are designated as cash-flow hedges.

The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of March 31, 2023. As of December 31, 2022, there were no derivative instruments outstanding.

($ In thousands)

March 31, 2023

Instrument

Number of Instruments

Fixed Rate

Notional

Index

Maturity

Forward-starting interest rate swap

3.4565%

200,000

USD-SOFR-COMPOUND

March 6, 2034

Forward-starting interest rate swap

3.0615%

50,000

USD-SOFR-COMPOUND

March 6, 2034

From December 2021 through April 2022, we entered into five forward-starting interest rate swap agreements with an aggregate notional amount of $2.5 billion and two U.S. Treasury Rate Lock agreements with an aggregate notional amount of $500.0 million to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of ~~$2.5~~$3.0 billion of long-term debt. ~~We hedged our exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending December 2023.~~ The forward-starting interest rate ~~swap~~swaps and treasury locks were designated as cash-flow hedges. In April 2022 we entered into 2 U.S. Treasury Rate Lock agreements with a notional amount of $500.0 million to hedge against the changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of $500.0 million of long term debt. The treasury locks were designated as cash-flow hedges. Subsequent to quarter-end, in connection with the April 2022 Notes offering, we settled the outstanding forward-starting interest rate swaps for total net proceeds of $202.3 million and the treasury locks for total net proceeds of $4.5 million. Since the forward-starting swaps and treasury locks were hedging the interest rate risk on the April 2022 Notes, the unrealized gain in Accumulated other comprehensive income will be amortized over the term of the respective derivative instruments, which matches that of the underlying note, as a reduction in interest expense.

In April 2018 and January 2019, we entered into 6 interest rate swap agreements with third party financial institutions having an aggregate notional amount of $2.0 billion. The interest rate swap transactions were designated as cash flow hedges that effectively fix the LIBOR component of the interest rate on a portion of the outstanding debt under the Term Loan B Facility at 2.8297%. On September 15, 2021, in connection with the full repayment of the Term Loan B Facility, we unwound and settled all of our outstanding interest rate swap agreements resulting in a cash payment of $66.9 million, inclusive of accrued interest of $2.7 million. As the Term Loan B Facility was repaid in full with proceeds from the issuance of 65,000,000 shares of common stock on September 14, 2021 and proceeds from the settlement of the June 2020 Forward Sale Agreement with no replacement debt, the full amount held in Other comprehensive income, $64.2 million, was immediately reclassified to Interest expense.

~~The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of March 31, 2022 and December 31, 2021:~~

($ In thousands) March 31, 2022
Instrument Number of Instruments Fixed Rate Notional Index Maturity
Forward-starting interest rate swap 1 1.3465% $ 500,000 USD SOFR- COMPOUND May 2, 2032
Forward-starting interest rate swap 1 1.6827% $ 500,000 USD-SOFR-COMPOUND May 2, 2032
Forward-starting interest rate swap 1 1.6390% $ 500,000 USD-SOFR-COMPOUND May 2, 2032
Forward-starting interest rate swap 1 1.6900% $ 500,000 USD-SOFR-COMPOUND May 2, 2027
Forward-starting interest rate swap 1 1.5850% $ 500,000 USD-SOFR-COMPOUND May 2, 2029

($ In thousands) December 31, 2021
Instrument Number of Instruments Fixed Rate Notional Index Maturity
Forward-starting interest rate swap 1 1.3465% $ 500,000 USD SOFR- COMPOUND May 2, 2032

~~As of March 31, 2022, the interest rate swaps were in an unrealized gain position and were recorded within Other assets.~~ The following table presents the effect of our forward-starting derivative financial instruments on our Statement of Operations:

Three Months Ended March 31,
(In thousands) 2022 2021
Unrealized gain recorded in other comprehensive income $ 108,611 $ 12,378
Interest recorded in interest expense $ — $ 10,826


	Three Months Ended March 31,
(In thousands)	2023		2022
Unrealized (loss) gain recorded in other comprehensive income	$	(7,393)	$	108,611
Reduction in interest expense related to the amortization of the forward-starting interest rate swaps and treasury locks	(6,037)		—

Net Investment Hedges

The C$140.0 million draw on the Revolving Credit Facility in connection with the PURE Canadian Gaming Transaction reduces the impact of exchange rate variations associated with our investment in the PURE Canadian Gaming entities and accordingly, has been designated as a hedge of the net investment in the PURE Canadian Gaming entities. As a non-derivative net investment hedge, the impact of changes in foreign currency exchange rates on the principal balance are recognized as a cumulative translation adjustment within accumulated other comprehensive income. For the three months ended March 31, 2023 we recognized $2.4 million in unrealized losses related to such net investment hedge, which were recorded as a component of Foreign currency translation adjustments in the Statement of Operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 9 — Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis as of March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:

March 31, 2022
(In thousands) Fair Value
Carrying Amount Level 1 Level 2 Level 3
Financial assets:
Derivative instruments - forward-starting interest rate swap (1)
$ 109,495 $ — $ 109,495 $ —


	March 31, 2023
(In thousands)			Fair Value
	Carrying Amount		Level 1		Level 2		Level 3
Financial liabilities:
Derivative instruments - forward-starting interest rate swaps (1)	$	7,393	$	—	$	7,393	$	—


		December 31, 2021									December 31, 2022
(In thousands)	(In thousands)			Fair Value						(In thousands)			Fair Value
		Carrying Amount		Level 1		Level 2		Level 3			Carrying Amount		Level 1		Level 2		Level 3
Financial assets:	Financial assets:									Financial assets:

Derivative instruments - forward-starting interest rate swap (1)		$	884	$	—	$	884	$	—
Short-term investments (2)										Short-term investments (2)	$	217,342	$	—	$	217,342	$	—

___________________

(1) The fair values of our interest rate swap derivative instruments were estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising interest rate curves and credit spreads, which are Level 2 measurements as defined under ASC 820.

(2) The carrying value of these investments is equal to their fair value due to the short-term nature of the investments as well as their credit quality.

The estimated fair values of our financial instruments as of March 31, ~~2022~~2023 and December 31, ~~2021~~2022 for which fair value is only disclosed are as follows:

March 31, 2022 December 31, 2021
(In thousands) Carrying Amount Fair Value Carrying Amount Fair Value
Financial assets:
Investments in leases - financing receivables (1)
$ 2,650,633 $ 3,123,206 $ 2,644,824 $ 3,104,337
Investments in loans (2)
513,128 514,173 498,002 498,614
Cash and cash equivalents 568,702 568,702 739,614 739,614
Financial liabilities:
Debt (3)
Revolving Credit Facility (4)
$ 600,000 $ 600,000 $ — $ —
Delayed Draw Term Loan — — — —
November 2019 Notes
2026 Maturity 1,236,685 1,248,438 1,235,972 1,296,875
2029 Maturity 987,731 996,250 987,331 1,067,500
February 2020 Notes
2025 Maturity 743,263 738,750 742,677 763,125
2027 Maturity 741,828 729,375 741,409 772,500
2030 Maturity 987,507 967,500 987,134 1,055,000


	March 31, 2023				December 31, 2022
(In thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Investments in leases - financing receivables (1)	$	17,051,187	$	17,566,724	$	16,740,770	$	17,871,771
Investments in loans and securities (2)	886,524		878,905		685,793		675,456
Cash and cash equivalents	247,673		247,673		208,933		208,933

Financial liabilities:
Debt (3)
Revolving Credit Facility	103,572		103,572		—		—
MGM Grand/Mandalay Bay CMBS Debt	2,753,800		2,753,800		—		—
Senior Unsecured Notes	13,748,868		13,146,280		13,739,675		13,020,636

____________________

(1)These investments represent the JACK ~~Cleveland/Thistledown~~Master Lease, the Harrah’s Call Properties, the MGM Master Lease, the Foundation Master Lease and the PURE Master Lease. In relation to the Harrah’s ~~Original~~ Call ~~Properties. The~~Properties, JACK Master Lease and MGM Master Lease the fair value of these assets ~~are~~is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to the Foundation Master Lease and PURE Master Lease, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates the purchase price of the acquisition of these financial assets.

(2)These investments represent ~~the (i) Forum Convention Center Mortgage Loan, (ii) Chelsea Piers Mortgage Loan~~our investments in eleven senior secured and ~~(iii) Great Wolf Mezzanine Loan. We believe the current principal balance~~mezzanine loans and one series of senior secured notes. The fair value of investments in loans is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to our investments in securities, representing the Hard Rock Ottawa Notes, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates ~~their fair value.~~the purchase price of the acquisition of these financial assets.

(3)The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.

~~(4)The fair value of the Revolving Credit Facility approximates the carrying value.~~

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 10 — Commitments and Contingent Liabilities

Litigation

In the ordinary course of business, from time to time, we may be subject to legal claims and administrative proceedings. As of March 31, ~~2022,~~2023, we are not subject to any litigation that we believe could have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations, liquidity or cash flows.

In connection with the Mergers, three lawsuits were filed by purported MGP shareholders and six lawsuits were filed by purported VICI stockholders challenging the disclosures made, as applicable, in the Registration Statement on Form S-4 filed on September 8, 2021 and the Prospectus filed on September 23, 2021. The plaintiffs in each action sought, among other things, to enjoin the Mergers and the transactions contemplated by the MGP Master Transaction Agreement and an award of costs and attorneys’ fees. Each of the lawsuits has been dismissed pursuant to applicable litigation procedure, although additional lawsuits arising out of the MGP Transactions may be filed in the future.

Operating Lease Commitments

We are liable under various operating leases for: (i) land at the Cascata golf course, which expires in 2038 and has three 10-year extension options and (ii) certain corporate offices, the most material of which is our corporate headquarters in ~~New Orleans, LA and~~ New York, NY, which ~~expire~~expires in ~~2022~~2030 and ~~2030, respectively.~~has one five-year renewal option. The discount rates for the leases ~~was~~were determined based on the yield of our then current secured borrowings, adjusted to match borrowings of similar terms, and are between 5.3% and 5.5%. The weighted average remaining lease term as of March 31, ~~2022~~2023 under our operating leases was ~~14.3~~13.4 years. ~~Our Cascata ground lease has 3 10-year extension options. The rent of such options would be the in-place rent at the time of renewal.~~

Total rental expense, included in golf operations and general and administrative expenses in our Statement of Operations and contractual rent expense under these agreements were as follows:

Three Months Ended March 31,
(In thousands) 2022 2021
Rent expense $ 499 $ 499
Contractual rent $ 475 $ 470

As of March 31, 2022, we have a $49.7 million right of use asset and corresponding lease liability recorded in Other assets and Other liabilities, respectively, on our Balance Sheet related to our operating lease commitments for which we are the lessee.


	Three Months Ended March 31,
(In thousands)	2023		2022
Rent expense	$	498	$	499
Contractual rent	473		475

The future minimum lease commitments relating to the base lease rent portion of noncancelable operating leases at March 31, ~~2022~~2023 are as follows:

(In thousands) Lease Commitments
2022 (remaining) $ 1,410
2023 1,827
2024 1,847
2025 1,908
2026 1,958
2027 1,979
Thereafter 15,137
Total minimum lease commitments $ 26,068
Discounting factor 9,442
Lease liability $ 16,626

~~Table of Contents~~

~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~


(In thousands)	Lease Commitments
2023 (remaining)	$	1,426
2024	1,847
2025	1,908
2026	1,958
2027	1,979
2028	2,000
Thereafter	13,138
Total minimum lease commitments	$	24,256
Discounting factor	8,401
Lease liability	$	15,855

Sub-Lease Commitments

Certain of our acquisitions necessitate that we assume, as the lessee, ground and use leases that are integral to the operations of the property, the cost of which is passed to our tenants through the Lease Agreements, which require the tenants to pay all costs associated with such ground and use leases and provide for their direct payment to the landlord.

We have determined we are the primary obligor of certain of such ground and use leases and, accordingly, have presented these leases on a gross basis on our Balance Sheet and Statement of Operations. The following is a summary of the leases, the lease classification of which has been determined to be either an operating sub-lease or finance sub-lease.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Operating Sub-Lease Commitments

With respect to the following information, we assessed the lease classification of certain of the sub-leases to our tenants through the Lease Agreements, and our obligation as primary obligor of the leases and determined that they meet the definition of an operating lease. Accordingly, we have recorded a sub-lease right-of-use assets in Other assets and sub-lease ~~liability~~liabilities in Other liabilities.

~~(In thousands)~~

~~March 31, 2022~~

~~December 31, 2021~~

~~Others assets (operating sub-leases)~~

~~33,105~~

—

~~Other liabilities (operating sub-lease liabilities)~~

~~33,105~~

—


(In thousands)	March 31, 2023		December 31, 2022
Others assets (operating sub-leases)	$	27,522	$	28,953
Other liabilities (operating sub-lease liabilities)	27,522		28,953

Total rental income and rental expense, included in Other income and Other expenses, respectively, in our Statement of Operations and contractual rent expense under these agreements were as follows:


		Three Months Ended March 31,				Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021			(In thousands)	2023		2022
Rental income and expense	Rental income and expense	$	571	$	—		Rental income and expense	$	1,712	$	571
Contractual rent	Contractual rent	$	528	$	—		Contractual rent	1,631		528

The future minimum lease commitments relating to the sub-leases at March 31, ~~2022~~2023 are as follows:


(In thousands)	(In thousands)	Lease Commitments		(In thousands)	Lease Commitments
2022 (remaining)		$	5,338
2023		6,585
2023 (remaining)				2023 (remaining)	$	4,953
2024	2024	6,553		2024	6,553
2025	2025	5,129		2025	5,129
2026	2026	3,934		2026	3,934
2027	2027	4,010		2027	4,010
2028				2028	3,034
Thereafter	Thereafter	5,128		Thereafter	2,094
Total minimum lease commitments	Total minimum lease commitments	$	36,676	Total minimum lease commitments	$	29,707
Discounting factor	Discounting factor	3,571		Discounting factor	2,185
Sub-lease liabilities	Sub-lease liabilities	$	33,105	Sub-lease liabilities	$	27,522

The discount rate for the operating sub-leases were determined based on the yield of our ~~current~~ secured borrowings at the time of assumption of the leases, adjusted to match borrowings of similar terms, and are between 2.6% and 2.9%. The weighted average remaining lease term as of March 31, ~~2022~~2023 under our operating sub-lease was ~~7.7~~5.2 years.

Finance Sub-Lease Commitments

With respect to the following information, we assessed the lease classification of certain of the sub-leases to our tenants through the Lease Agreements, and our obligation as primary obligor of the ground and use leases and determined that they meet the definition of a sales-type lease and finance lease. Accordingly, we have recorded a sales-type sub-lease in Other assets and finance sub-lease liability in Other liabilities.

The following table details the balance and location in our Balance Sheet of the ground and use sub-leases as of March 31, 2023 and December 31, 2022:


(In thousands)	March 31, 2023		December 31, 2022
Others assets (sales-type sub-leases, net)	$	767,436	$	764,509
Other liabilities (finance sub-lease liabilities)	784,407		784,259

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

~~The following table details the balance and location in our Balance Sheet of the ground and use sub-leases as of March 31, 2022 and December 31, 2021:~~

(In thousands) March 31, 2022 December 31, 2021
Others assets (sales-type sub-leases, net) $ 446,956 $ 273,970
Other liabilities (finance sub-lease liabilities) $ 455,710 $ 280,510

Total rental income and rental expense, included in Other income and Other expenses, respectively, in our Statement of Operations and contractual rent expense under these agreements were as follows:


		Three Months Ended March 31,				Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021			(In thousands)	2023		2022
Rental income and expense	Rental income and expense	$	6,484	$	5,652		Rental income and expense	$	14,429	$	6,484
Contractual rent	Contractual rent	$	6,678	$	5,838		Contractual rent	14,281		6,678

The future minimum lease commitments relating to the ground and use sub-leases at March 31, ~~2022~~2023 are as follows:


(In thousands)	(In thousands)	Lease Commitments		(In thousands)	Lease Commitments
2021 (remaining)		$	28,917
2022		33,435
2023		33,705
2023 (remaining)				2023 (remaining)	$	44,487
2024	2024	33,840		2024	59,039
2025	2025	33,840		2025	59,174
2026	2026	33,840		2026	59,174
2027				2027	59,174
2028				2028	59,174
Thereafter	Thereafter	1,343,128		Thereafter	2,496,361
Total minimum lease commitments	Total minimum lease commitments	$	1,540,705	Total minimum lease commitments	$	2,836,583
Discounting factor	Discounting factor	1,084,995		Discounting factor	2,052,176
Finance sub-lease liability	Finance sub-lease liability	$	455,710	Finance sub-lease liability	$	784,407

The discount rates for the finance ground and use sub-leases were determined based on the yield of our ~~current~~ secured borrowings at the time of assumption of the leases, adjusted to match borrowings of similar terms, and are between 6% and 8%. The weighted average remaining lease term as of March 31, ~~2022~~2023 under our finance sub-leases was ~~56.8~~54.5 years.

Note 11 — Stockholders' Equity

Stock

Authorized

As of March 31, ~~2022,~~2023, we have the authority to issue 1,400,000,000 shares of stock, consisting of 1,350,000,000 shares of common stock, $0.01 par value per share, and 50,000,000 shares of preferred stock, $0.01 par value per share.

~~Primary Follow-on~~Public Offerings

~~September 2021 Offering~~

~~On September 14, 2021,~~From time to time, we ~~completed a primary follow-on offering~~offer shares of ~~115,000,000~~our common stock through public offerings registered with the SEC. In connection with such offerings, we may issue and sell the offered shares of common stock ~~consisting~~upon settlement of ~~(i) 65,000,000~~the offering or, alternatively, enter into forward sale agreements with respect to all or a portion of the shares of common stock ~~(including 15,000,000 shares~~ sold in such public offerings, pursuant to which the ~~exercise in full~~offered shares are borrowed by the forward sale purchasers and the issuance of such shares takes place upon settlement of the ~~underwriters’ option to purchase additional common stock) and (ii) 50,000,000 shares of common stock that were subject to~~applicable forward sale ~~agreements (collectively, the “September 2021 Forward Sale Agreements”), which required settlement by September 9, 2022,~~agreement in each case at a public offering price of $29.50 per share for an aggregate offering value of $3.4 billion, resulting in net proceeds, after deduction of the underwriting discount and expenses, of $1,859.0 million from the sale of the 65,000,000 shares (including 15,000,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional commonaccordance with its terms.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

~~stock). We did not initially receive any proceeds from the sale of the 50,000,000 shares subject to the September 2021~~ Forward ~~Sale Agreements, which were sold to the underwriters by the forward purchasers or their respective affiliates and remained subject to settlement in accordance with~~Offerings

The following table summarizes the terms of the ~~September 2021 Forward Sale Agreements.~~forward sale agreements outstanding as of March 31, 2023:

~~On February 18, 2022, we settled~~


(In thousands, except share and per share data)	Effective Date (1)	Total Shares Sold (2)	Public Offering Price Per Share		Aggregate Offering Value		Initial Forward Sale Price Per Share		Initial Net Value
January 2023 Offering (3)	January 18, 2023	30,302,500	$	33.00	$	999,983	$	31.85	$	964,400

____________________

(1)The forward sale agreements generally require settlement within twelve months of the ~~September 2021 Forward Sale Agreements by delivering 50,000,000 shares of our common stock~~trade date, which is January 16, 2024 with respect to the ~~forward purchases, in exchange for total net proceeds~~January 2023 Offering.

(2)The amount is inclusive of approximately $1,390.6 million, which were used to pay for a portion of the purchase price of the Venetian Acquisition. The physical settlement of the September 2021 Forward Sale Agreements were calculated based on the initial forward sale price per share of $28.62, as adjusted for a floating interest rate factor and other fixed amounts based on the passage of time, as specified in the September 2021 Forward Sale Agreements, resulting in a net forward sale price on the settlement date of $27.81 per share.

~~March 2021 Offering~~

~~On March 4, 2021, we completed a primary follow-on offering of 69,000,000 shares of common stock (inclusive of 9,000,000~~3,952,500 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional common ~~stock) at a public offering~~stock.

(3)As of March 31, 2023, the net forward sales price ~~of $29.00~~ per share ~~for an aggregate offering value of $2,001.0~~under the January 2023 Offering was $31.69 and would result in us receiving approximately $960.4 million ~~all of which~~in net cash proceeds if we were ~~subject~~ to ~~forward sale agreements (the “March 2021 Forward Sale Agreements”), which required settlement by March 4, 2022. We did not initially receive any proceeds from~~physically settle the ~~sale of~~shares. Alternatively, if we were to cash settle the shares under the January 2023 Offering, it would result in a cash outflow of ~~common stock~~$28.1 million, or, if we were to net share settle the shares under the January 2023 Offering, it would result in us issuing approximately 0.9 million shares.

(4)Subsequent to quarter-end, on April 4, 2023, we physically settled 3,200,000 shares under the ~~offering, which were sold to the underwriters by the forward purchasers or their respective affiliates.~~

~~On February 18, 2022, we settled the March 2021~~January 2023 Forward Sale Agreements ~~by delivering 69,000,000 shares~~at a forward share price of ~~our common stock to the forward purchases,~~$31.71 per share, in exchange for total net proceeds of approximately $1,828.6 million, which were used to pay for a portion of the purchase price of the Venetian Acquisition. The physical settlement of the March 2021 Forward Sale Agreements were calculated based on the initial forward sale price per share of $28.06, as adjusted for a floating interest rate factor and other fixed amounts based on the passage of time, as specified in the March 2021 Forward Sale Agreements, resulting in a net forward sale price on the settlement date of $26.50 per share.$101.5 million.

~~June 2020 Offering~~

On June 17, 2020, we completed a primary follow-on offering of 29,900,000 shares of common stock (inclusive of 3,900,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional common stock) at a public offering price of $22.15 per share for an aggregate offering value of $662.3 million, all of which were subject to a forward sale agreement (the “June 2020 Forward Sale Agreement”), which initially required settlement by September 17, 2020. On September 16, 2020, we amended the June 2020 Forward Sale Agreement to extend the maturity date from September 17, 2020 to June 17, 2021. We did not ~~initially~~ receive any proceeds from the sale of shares at the ~~shares~~time we entered into each of ~~common stock in~~ the ~~offering, which were sold to the underwriters by~~respective forward sale agreements. We determined that the forward ~~purchaser or its affiliates.~~

~~On September 28, 2020, we partially settled~~sale agreements meet the ~~June 2020 Forward Sale Agreement by delivering 3,000,000 shares of our common stock to~~criteria for equity classification and, therefore, are exempt from derivative accounting. We recorded the forward ~~purchaser, in exchange for total net proceeds~~sale agreements at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification.

The following table summarizes settlement activity of ~~approximately $63.0 million, which was calculated based on~~ the ~~net~~outstanding forward sale ~~price on~~agreements during the settlement date of $21.04 per share. On September 9, 2021, we physically settled the remaining shares under the June 2020 Forward Sale Agreement by delivering 26,900,000 shares of our common stock to the forward purchaser in exchange for total net proceeds of approximately $526.9 million, which was calculated based on the net forward sale price on the settlement date of $19.59 per share. The physical settlements of the June 2020 Forward Sale Agreement were calculated based on the initial forward sale price per share of $21.37, as adjusted for a floating interest rate factorthree months ended March 31, 2023 and ~~other fixed amounts based on the passage of time, as specified in the June 2020 Forward Sale Agreement.~~2022:


(In thousands, except share and per share data)	Settlement Date	Settlement Type	Number of Shares Settled	Forward Share Price Upon Settlement		Total Net Proceeds
November 2022 Forward Sale Agreements	January 6, 2023	Physical	18,975,000	$	30.34	$	575,628
September 2021 Forward Sale Agreements	February 18, 2022	Physical	50,000,000	27.81		1,390,600
March 2021 Forward Sale Agreements	February 18, 2022	Physical	69,000,000	26.50		1,828,600
Total			137,975,000	$	27.50	$	3,794,828

At-the-Market Offering Program

~~In May 2021,~~On February 28, 2023, we entered into an equity distribution agreement, ~~(the “ATM Agreement”)~~ pursuant to which we may sell, from time to time, up to an aggregate sales price of ~~$1,000.0~~$1,500.0 million of our common stock (the “ATM Program”). and terminated our prior equity distribution agreement, pursuant to which we previously sold, from time to time, shares of our common stock. Sales of common stock, if any, made pursuant to the ATM Program may be sold in negotiated transactions or transactions that are deemed to be “at the market” offerings, as defined in Rule 415 of the Securities Act. The ATM Program also provides that the Company may sell shares of its common stock under the ATM Program through forward sale contracts. Actual sales under the ATM Program will depend on a variety of factors including market conditions, the trading price of our common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs.

During the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, we did not sell any shares under the ATM ~~Program.~~Program or the previous equity distribution agreement. We have no obligation to sell the remaining shares available for sale under the ATM Program.

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following table summarizes our settlement activity of the outstanding forward shares under the ATM Program, all of which were sold subject to a forward sale agreement (collectively, the “ATM Forward Sale Agreements”) and the previous equity distribution agreement, as applicable, during the three months ended March 31, 2023. As of March 31, 2023, we do not have any forward shares outstanding under the ATM Program.


(In thousands, except share and per share data)	Settlement Date	Settlement Type	Number of Shares Settled	Forward Share Price Upon Settlement		Total Net Proceeds
December 2022 ATM Forward Sale Agreement	January 6, 2023	Physical	6,317,805	$	32.99	$	208,402
August 2022 ATM Forward Sale Agreement	January 6, 2023	Physical	3,918,807	33.96		133,073
June 2022 ATM Forward Sale Agreement	January 3, 2023	Physical	11,380,980	31.20		355,168
Total			21,617,592	$	32.22	$	696,643

Common Stock Outstanding

The following table details the issuance of outstanding shares of common stock, including restricted common stock:


		Three Months Ended March 31,			Three Months Ended March 31,
Common Stock Outstanding	Common Stock Outstanding	2022	2021	Common Stock Outstanding	2023	2022
Beginning Balance January 1,	Beginning Balance January 1,	628,942,092	536,669,722	Beginning Balance January 1,	963,096,563	628,942,092

Issuance of common stock upon physical settlement of forward sale agreements	Issuance of common stock upon physical settlement of forward sale agreements	119,000,000	—	Issuance of common stock upon physical settlement of forward sale agreements	40,592,592	119,000,000

Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures	Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures	471,219	346,031	Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures	515,763	471,219
Ending Balance March 31,	Ending Balance March 31,	748,413,311	537,015,753	Ending Balance March 31,	1,004,204,918	748,413,311

~~Dividends~~Distributions

Dividends declared (on a per share basis) during the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 were as follows:

Three Months Ended March 31, 2023

Declaration Date

Record Date

Payment Date

Period

Dividend

March 9, 2023

March 23, 2023

April 6, 2023

January 1, 2023 - March 31, 2023

0.3900

Three Months Ended March 31, 2022

Declaration Date

Record Date

Payment Date

Period

Dividend

March 10, 2022

March 24, 2022

April 7, 2022

January 1, 2022 - March 31, 2022

0.3600

~~Three Months Ended March 31, 2021~~

~~Declaration Date~~

~~Record Date~~

~~Payment Date~~

~~Period~~

~~Dividend~~

~~March 11, 2021~~

~~March 25, 2021~~

~~April 8, 2021~~

~~January 1, 2021 - March 31, 2021~~

~~0.3300~~

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Note 12 — Earnings Per Share and Earnings Per Unit

Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding net income attributable to participating securities (unvested restricted stock awards). Diluted earnings per share reflects the additional dilution for all potentially dilutive securities such as stock options, unvested restricted shares, unvested performance-based restricted shares and the shares to be issued by us upon settlement of any outstanding forward sale agreements for the period such dilutive security is outstanding. The shares ~~issued~~issuable upon settlement of any outstanding forward sale agreements, as described in Note 11 - Stockholders' Equity, are reflected in the diluted earnings per share calculations using the treasury stock method for the period outstanding prior to settlement. Under this method, the number of shares of our common stock used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of common stock that would be issued upon full physical settlement of the shares under any outstanding forward sale agreements for the period prior to settlement over the number of shares of common stock that could be purchased by us in the market (based on the average market price during the period prior to settlement) using the proceeds receivable upon full physical settlement (based on the adjusted forward sales price immediately prior to settlement). ~~Upon settlement of the outstanding forward sale agreements, the delivery of shares of common stock resulted in an increase in the number of shares outstanding and dilution to earnings per share.~~

~~Table of Contents~~

~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~

The following tables reconcile the weighted-average shares of common stock outstanding used in the calculation of basic earnings per share to the weighted-average shares of common stock outstanding used in the calculation of diluted earnings per share:


		Three Months Ended March 31,		Three Months Ended March 31,
(In thousands)	(In thousands)	2022	2021		(In thousands)	2023	2022
Determination of shares:	Determination of shares:				Determination of shares:
Weighted-average shares of common stock outstanding	Weighted-average shares of common stock outstanding	684,341	536,481		Weighted-average shares of common stock outstanding	1,001,527	684,341
Assumed conversion of restricted stock	Assumed conversion of restricted stock	581	924		Assumed conversion of restricted stock	1,073	581
Assumed settlement of forward sale agreements	Assumed settlement of forward sale agreements	2,993	7,397		Assumed settlement of forward sale agreements	1,232	2,993
Diluted weighted-average shares of common stock outstanding	Diluted weighted-average shares of common stock outstanding	687,915	544,802		Diluted weighted-average shares of common stock outstanding	1,003,831	687,915


		Three Months Ended March 31,				Three Months Ended March 31,
(In thousands, except per share data)	(In thousands, except per share data)	2022		2021			(In thousands, except per share data)	2023		2022
Basic:	Basic:						Basic:
Net income attributable to common stockholders	Net income attributable to common stockholders	$	240,383	$	269,801		Net income attributable to common stockholders	$	518,740	$	240,383
Weighted-average shares of common stock outstanding	Weighted-average shares of common stock outstanding	684,341		536,481			Weighted-average shares of common stock outstanding	1,001,527		684,341
Basic EPS	Basic EPS	$	0.35	$	0.50		Basic EPS	$	0.52	$	0.35

Diluted:	Diluted:						Diluted:
Net income attributable to common stockholders	Net income attributable to common stockholders	$	240,383	$	269,801		Net income attributable to common stockholders	$	518,740	$	240,383
Diluted weighted-average shares of common stock outstanding	Diluted weighted-average shares of common stock outstanding	687,915		544,802			Diluted weighted-average shares of common stock outstanding	1,003,831		687,915
Diluted EPS	Diluted EPS	$	0.35	$	0.50		Diluted EPS	$	0.52	$	0.35

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VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

Earnings Per Unit

~~Basic~~The following section presents the basic earnings per unit (“EPU”) and diluted EPU of VICI OP, our operating partnership and the direct parent and 100% interest holder in VICI LP. VICI LP’s interests are not expressed in units. However, given that VICI OP has a unit ownership structure and the financial information of VICI OP is substantially identical with that of VICI LP, we have elected to present the EPU of VICI OP. Basic EPU is computed by dividing net income attributable to partners’ capital by the weighted-average number of units outstanding during the period. In accordance with the VICI ~~LP partnership~~OP limited liability company agreement, for each share of common stock issued at VICI, a corresponding unit is issued by VICI ~~LP.~~OP. Accordingly, diluted ~~earnings per unit~~EPU reflects the additional dilution for all potentially dilutive units resulting from potentially dilutive VICI stock issuances, such as options, unvested restricted stock awards, unvested performance-based restricted stock unit awards and the units to be issued by us upon settlement of any outstanding forward sale agreements of VICI for the period such dilutive security is outstanding. The units issuable upon settlement of any outstanding forward sale agreements of VICI are reflected in the diluted ~~earnings per unit~~EPU calculations using the treasury stock method for the period outstanding prior to settlement. Under this method, the number of units used in calculating diluted ~~earnings per unit~~EPU is deemed to be increased by the excess, if any, of the number of units that would be issued upon full physical settlement of the units under any outstanding forward sale agreements for the period prior to settlement over the number of shares of VICI common stock that could be purchased by us in the market (based on the average market price during the period prior to settlement) using the proceeds receivable upon full physical settlement (based on the adjusted forward sales price immediately prior to settlement). Upon VICI’s physical settlement of the shares of VICI common stock under the outstanding forward sale ~~agreements,~~agreement, the delivery of shares of VICI common stock resulted in an increase in the number of ~~Partnership~~VICI OP units outstanding and resulting dilution to ~~earnings per unit.~~EPU.

The following tables reconcile the weighted-average units outstanding used in the calculation of basic EPU to the weighted-average units outstanding used in the calculation of diluted EPU:


	Three Months Ended March 31,
(In thousands)	2023	2022
Determination of units:
Weighted-average units outstanding	1,013,758	684,341
Assumed conversion of VICI restricted stock	1,073	581
Assumed settlement of VICI forward sale agreements	1,232	2,993
Diluted weighted-average units outstanding	1,016,063	687,915


	Three Months Ended March 31,
(In thousands, except per share data)	2023		2022
Basic:
Net income attributable to partners	$	522,076	$	238,347
Weighted-average units outstanding	1,013,758		684,341
Basic EPU	$	0.51	$	0.35

Diluted:
Net income attributable to partners	$	522,076	$	238,347
Weighted-average units outstanding	1,016,063		687,915
Diluted EPU	$	0.51	$	0.35

Table of Contents

VICI PROPERTIES INC. AND VICI PROPERTIES L.P.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

The following tables reconcile the weighted-average units outstanding used in the calculation of basic earnings per share to the weighted-average units outstanding used in the calculation of diluted earnings per unit:

Three Months Ended March 31,
(In thousands) 2022 2021
Determination of units:
Weighted-average units outstanding 684,341 536,481
Assumed conversion of VICI restricted stock 581 924
Assumed settlement of VICI forward sale agreements 2,993 7,397
Diluted weighted-average units outstanding 687,915 544,802

Three Months Ended March 31,
(In thousands, except per share data) 2022 2021
Basic:
Net income attributable to partners $ 238,347 $ 268,593
Weighted-average units outstanding 684,341 536,481
Basic EPU $ 0.35 $ 0.50

Diluted:
Net income attributable to partners $ 238,347 $ 268,593
Weighted-average units outstanding 687,915 544,802
Diluted EPU $ 0.35 $ 0.49

Note 13 — Stock-Based Compensation

The 2017 Stock Incentive Plan (the “Plan”) is designed to provide long-term equity-based compensation to our directors and employees. It is administered by the Compensation Committee of the Board of Directors. Awards under the Plan may be granted with respect to an aggregate of 12,750,000 shares of common stock and may be issued in the form of: (a) incentive stock options, (b) non-qualified stock options, (c) stock appreciation rights, (d) dividend equivalent rights, (e) restricted stock, (f) restricted stock units or (g) unrestricted stock. In addition, the Plan limits the total number of shares of common stock with respect to which awards may be granted to any employee or director during any one calendar year. At March 31, ~~2022, 11.0~~2023, 10.2 million shares of common stock remained available for issuance by us as equity awards under the Plan.

The following table details the stock-based compensation expense recorded as General and administrative expense in the Statement of Operations:

Three Months Ended March 31,
(In thousands) 2022 2021
Stock-based compensation expense $ 2,630 $ 2,277

~~Table of Contents~~

~~VICI PROPERTIES INC. AND VICI PROPERTIES L.P.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(UNAUDITED)~~


	Three Months Ended March 31,
(In thousands)	2023		2022
Stock-based compensation expense	$	3,467	$	2,630

The following table details the activity of our time-based restricted stock and performance-based restricted stock units:


									Three Months Ended March 31, 2023
		Three Months Ended March 31, 2022			Three Months Ended March 31, 2021				Incentive and Time-Based Restricted Stock			Performance-Based Restricted Stock Units
(In thousands, except per share data)	(In thousands, except per share data)	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value		(In thousands, except per share data)	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding at beginning of period	Outstanding at beginning of period	888	$	21.15	855	$	21.48	Outstanding at beginning of period	507	$	27.47	769	$	22.88
Granted	Granted	721	27.45		464	20.01		Granted	173	34.25		475	28.59
Vested	Vested	(352)	23.45		(317)	19.83		Vested	(159)	27.59		(363)	19.90
Forfeited	Forfeited	(94)	23.05		(60)	19.90		Forfeited	(20)	27.69		(116)	19.90
Canceled	Canceled	—	—		—	—		Canceled	—	—		—	—
Outstanding at end of period	Outstanding at end of period	1,163	$	24.20	942	$	21.42	Outstanding at end of period	501	$	29.77	765	$	28.28


	Three Months Ended March 31, 2022
	Incentive and Time-Based Restricted Stock			Performance-Based Restricted Stock Units
(In thousands, except per share data)	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Outstanding at beginning of period	300	$	24.72	588	$	19.32
Granted	258	28.39		463	27.01
Vested	(125)	24.85		(227)	22.68
Forfeited	(14)	25.26		(80)	22.68
Canceled	—	—		—	—
Outstanding at end of period	419	$	26.92	744	$	22.72

As of March 31, ~~2022,~~2023, there was ~~$23.5~~$29.0 million of unrecognized compensation cost related to non-vested stock-based compensation arrangements under the Plan. This cost is expected to be recognized over a weighted average period of ~~2.4~~2.2 years.

~~Note 14 — Segment Information~~

Our real property business and our golf course business represent 2 reportable segments. The real property business segment consists of leased real property and our real estate lending activities and represents the substantial majority of our business. The golf course business segment, which is wholly owned by VICI, consists of 4 golf courses, with each being operating segments that are aggregated into 1 reportable segment.

The results of each reportable segment presented below are consistent with the way our management assesses these results and allocates resources. The following table presents certain information with respect to our segments:

Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
(In thousands) Real Property Business Golf Course Business VICI Consolidated Real Property Business Golf Course Business VICI Consolidated
Revenues $ 407,999 $ 8,626 $ 416,625 $ 367,497 $ 6,813 $ 374,310
Interest expense (68,142) — (68,142) (77,048) — (77,048)
Income before income taxes 240,492 2,596 243,088 271,035 1,548 272,583
Income tax benefit (expense) 162 (562) (400) (142) (342) (484)
Net income 240,654 2,034 242,688 270,893 1,206 272,099
Depreciation 30 746 776 32 760 792
Total assets $ 21,643,338 $ 97,983 $ 21,741,321 $ 16,994,473 $ 90,528 $ 17,085,001
Total liabilities $ 6,239,551 $ 17,984 $ 6,257,535 $ 7,468,648 $ 16,661 $ 7,485,309

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Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the financial position and operating results of VICI Properties Inc. and VICI Properties L.P. for the three months ended March 31, ~~2022~~2023 should be read in conjunction with the Financial Statements and related notes thereto and other financial information contained elsewhere in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes for the year ended December 31, ~~2021,~~2022, which ~~in the case of VICI Properties Inc.,~~ were included in our Annual Report on Form 10-K for the year ended December 31, ~~202~~1 ~~and in the case of VICI Properties L.P. were included as an~~ ~~exhibit~~ to ~~Form 8-K~~ ~~file~~d on ~~April~~ 18 , 2022. All defined terms included herein have the same meaning as those set forth in the Notes to the Consolidated Financial Statements contained within this Quarterly Report on Form 10-Q.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q, including statements such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “target,” “can,” “could,” “may,” “should,” “will,” “would” or similar expressions, which constitute “forward-looking statements” within the meaning of federal securities law. Forward-looking statements are based on our current plans, expectations and projections about future events. We therefore caution you therefore against relying on any of these forward-looking statements. They give our expectations about the future and are not guarantees. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements to materially differ from any future results, performance and achievements expressed in or implied by such forward-looking statements.

Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the impact of the COVID-19 pandemic on our and our tenants’ financial condition, results of operations, cash flows and performance. The extent to which the COVID-19 pandemic continues to adversely affect our tenants, and ultimately impacts our business and financial condition, depends on future developments which cannot be predicted with confidence, including the impact of the actions taken to contain the pandemic or mitigate its impact, including the availability, distribution, public acceptance and efficacy of approved vaccines, new or mutated variants of COVID-19 (including vaccine-resistant variants) or a similar virus, the direct and indirect economic effects of the pandemic and containment measures on our tenants, the ability of our tenants to successfully operate their businesses, including the costs of complying with regulatory requirements necessary to keep their respective facilities open, such as reduced capacity requirements, the need to close any of the facilities as a result of the COVID-19 pandemic, and the effects of the negotiated capital expenditure reductions and other amendments to the Lease Agreements that we agreed to with certain tenants in response to the COVID-19 pandemic. Each of the foregoing could have a material adverse effect on our tenants’ ability to satisfy their obligations under their Lease Agreements with us, including their continued ability to pay rent in a timely manner, or at all, and/or to fund capital expenditures or make other payments required under their leases. Investors are cautioned to interpret many of the risks identified under the section entitled “Risk Factors” in our ~~Annual Report on Form 10-K for the year ended December 31, 202~~1~~, our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic.~~

The forward-looking statements included herein are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance and achievements could differ materially from those set forth in the forward-looking statements and may be affected by a variety of risks and other factors, including, among others: ~~risks associated with the MGP Transactions, including our ability or failure to realize the anticipated benefits of the MGP Transactions;~~ the impact of changes in general economic conditions and market developments, including ~~rising~~ inflation, interest rate changes, supply chain disruptions, consumer confidence ~~supply chain disruptions,~~levels, changes in consumer spending, unemployment levels and depressed real estate prices resulting from the severity and duration of any downturn in the U.S. or global economy; the impact of the rise in interest rates on us, including our ability to successfully pursue investments in, and acquisitions of, additional properties and to obtain debt financing for such investments at attractive interest rates, or at all; risks associated with our pending and recently closed transactions, including our ability or failure to realize the anticipated benefits thereof; our dependence on our tenants ~~as tenants of~~at our properties, including their financial condition, results of operations, cash flows and performance, and their ~~guarantors~~affiliates that serve as guarantors of the lease payments, and the negative consequences any material adverse effect on their respective businesses could have on us; the possibility that our pending transactions may not be consummated on the terms or timeframes contemplated, or at all; the ability of the parties to our pending transactions and any future transactions to satisfy the conditions set forth in the definitive transaction documents, including the ability to receive, or delays in obtaining, the governmental and regulatory approvals and consents required to consummate the pending transactions, or other delays or impediments to completing the transactions; our ability to obtain the financing necessary to complete any acquisitions on the terms we expect in a timely manner, or at all; the anticipated benefits of ~~the~~certain arrangements with certain tenants in connection with our Partner Property Growth Fund; our ability to exercise our purchase rights under our put-call agreements, call agreements, right of first refusal agreements and right of first offer agreements; our borrowers’ ability to repay their outstanding loan obligations to us; our dependence on the gaming industry; our ability to pursue our business and growth strategies may be limited ~~by our substantial debt service requirements and~~ by the requirement that we distribute 90% of our REIT taxable income in order to qualify for taxation as a REIT and that we distribute 100% of our REIT taxable income in order to avoid current entity-level U.S. federal income taxes; ~~our inability to maintain our~~

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~~qualification for taxation as a REIT;~~ the impact of extensive regulation from gaming and other regulatory authorities; the ability of our tenants to obtain and maintain regulatory approvals in connection with the operation of our properties, or the imposition of conditions to such regulatory approvals; the possibility that our tenants may choose not to renew ~~the~~their respective Lease Agreements following the initial or subsequent terms of the leases; restrictions on our ability to sell our properties subject to the Lease Agreements; our tenants and any guarantors’ historical results may not be a reliable indicator of their future results; our substantial amount of indebtedness, ~~including indebtedness assumed and incurred by us in connection with the completion of the MGP Transactions,~~ and ability to service, refinance and otherwise fulfill our obligations under such indebtedness; our historical financial information may not be reliable indicators of our future results of operations, financial condition and cash flows; ~~the impact of a rise in interest rates which have begun increasing from historic lows, on us;~~ our inability to successfully pursue investments in, and acquisitions of, additional properties; the possibility that we identify significant environmental, tax, legal or other issues that materially and adversely impact the value of assets acquired or secured as collateral (or other benefits we expect to receive) in any of our pending or

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recently completed transactions; ~~the effects of our recently completed transactions on us, including the future impact on our financial condition, financial and operating results, cash flows, strategy and plans;~~ the impact of changes to the U.S. federal income tax laws; the ~~impact and outcome of previous and potential future litigation relating to the MGP Transactions; the~~ possibility of adverse tax consequences as a result of our pending or recently completed ~~transactions;~~transactions, including tax protection agreements to which we are a party; increased volatility in our stock price, including as a result of our pending or recently completed transactions; our inability to maintain our qualification for taxation as a REIT; the impact of climate change, natural disasters, war, political and public health conditions or uncertainty or civil unrest, violence or terrorist activities or threats on our properties and changes in economic conditions or heightened travel security and health measures instituted in response to these events; the loss of the services of key personnel; the inability to attract, retain and motivate employees; the costs and liabilities associated with environmental compliance; failure to establish and maintain an effective system of integrated internal controls; ~~VICI’s~~our reliance on distributions received from our subsidiaries, including VICI LPOP, to make distributions to our stockholders; the potential impact on the amount of our cash distributions if we were to sell any of our properties in the future; our ability to continue to make distributions to holders of our common stock or maintain anticipated levels of distributions over time; competition for transaction opportunities, including from other REITs, investment companies, private equity firms and hedge funds, sovereign funds, lenders, gaming companies and other investors that may have greater resources and access to capital and a lower cost of capital or different investment parameters than us; and additional factors discussed herein and listed from time to time as “Risk Factors” in our filings with the SEC, including without limitation, in our Annual ~~Report~~Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Any of the assumptions underlying forward-looking statements could be inaccurate. You are cautioned not to place undue reliance on any forward-looking statements. All forward-looking statements are made as of the date of this Quarterly Report on Form 10-Q and the risk that actual results, performance and achievements will differ materially from the expectations expressed herein will increase with the passage of time. Except as otherwise required by the Federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. In light of the significant uncertainties inherent in forward-looking statements, the inclusion of such forward-looking statements should not be regarded as a representation by us.

OVERVIEW

We are ~~an owner~~a Maryland corporation that is primarily engaged in the business of owning and ~~acquirer of experiential real estate assets across leading~~acquiring gaming, hospitality and entertainment ~~and leisure destinations. Following the closing of the MGP Transactions on April 29, 2022, our national,~~destinations, subject to long-term triple net leases. Our geographically diverse portfolio currently consists of ~~43 market leading properties,~~49 gaming facilities in the United States and Canada, including Caesars Palace Las Vegas, ~~Harrah’s Las Vegas,~~MGM Grand and the Venetian Resort, ~~Mandalay Bay and MGM Grand, five~~three of the most iconic entertainment facilities on the Las Vegas Strip. Our entertainment facilities are leased to leading brands that seek to drive consumer loyalty and value with guests through superior services, experiences, products and continuous innovation. Across over ~~122~~124 million square feet, our well-maintained properties are currently located across urban, destination and drive-to markets in fifteen states and Canada, contain approximately ~~58,700~~60,100 hotel rooms and feature over 450 restaurants, bars, nightclubs and sportsbooks.

Our portfolio also includes ~~four~~certain real estate debt investments that we have originated for strategic reasons in connection with transactions that either do or may provide the potential to convert our investment into the ownership of certain of the underlying real estate in the future. In addition, we own approximately 34 acres of undeveloped or underdeveloped land on and adjacent to the Las Vegas Strip that is leased to Caesars, which we may look to monetize as appropriate. VICI also owns ~~and operates~~ four championship golf courses located near certain of our properties, two of which are in close proximity to the Las Vegas Strip.

We lease our properties to subsidiaries of, or entities managed by, Apollo, Caesars, Century Casinos, CNB, EBCI, Foundation Gaming, JACK Entertainment, MGM, ~~Apollo, Penn National,~~PENN Entertainment, PURE Canadian Gaming and Seminole Hard Rock, ~~Century Casinos, JACK Entertainment and EBCI,~~ with Caesars and MGM being our largest tenants. We believe we have a mutually beneficial relationship with each of our tenants, all of which are leading owners and operators of gaming, entertainment and leisure properties. Our long-term triple-net Lease Agreements with our tenants provide us with a highly

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predictable revenue stream with embedded growth potential. We believe our geographic diversification limits the effect of changes in any one market on our overall performance. We are focused on driving long-term total returns through managing experiential asset growth and allocating capital diligently, maintaining a highly productive tenant base, and optimizing our capital structure to support external growth. As a growth focused public real estate investment trust with long-term investments, we expect our relationship with our partners will position us for the acquisition of additional properties across leisure and hospitality over the long-term. ~~Despite the ongoing uncertainty surrounding the COVID-19 pandemic, we continue to~~ ~~evaluate and opportunistically pursue accretive acquisitions or investments that arise in the market~~.

Our portfolio is competitively positioned and well-maintained. Pursuant to the terms of the Lease Agreements, which require our tenants to invest in our properties, and in line with our tenants’ commitment to build guest loyalty, we anticipate our tenants will continue to make strategic value-enhancing investments in our properties over time, helping to maintain their competitive position. ~~In addition, given~~Our long-term triple-net leases provide our tenants with complete control over management at our leased properties, including sole responsibility for all operations and related expenses, including property taxes, insurance and maintenance,

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repair, improvement and other capital expenditures, as well as over the implementation of environmental sustainability and other initiatives. Given our scale and deep industry knowledge, we believe we are well-positioned to execute highly complementary single-asset and portfolio acquisitions, as well as other investments, to augment growth as market conditions allow, with a focus on disciplined capital allocation.

We conduct our operations as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We believe ~~our~~VICI’s election of REIT status, combined with the income generation from the Lease Agreements and loans, will enhance our ability to make distributions to our stockholders, providing investors with current income as well as long-term growth, subject to the macroeconomic ~~impact of the COVID-19 pandemic~~environment, other global events and market conditions more broadly. We conduct our real property business through VICI OP and our golf course business through a taxable REIT subsidiary (a “TRS”), VICI Golf.

The financial information included in this Quarterly Report on Form 10-Q is our consolidated results (including the real property business and the golf course business) for the three months ended March 31, ~~2022.~~2023.

Impact of ~~the COVID-19 Pandemic~~Material Trends on Our Business

~~Since the emergence~~Recent macroeconomic volatility has introduced significant uncertainty and heightened risk for businesses, including us and our tenants, as a result of the ~~COVID-19 pandemic~~current inflationary environment, including the impact of rising interest rates and increased cost of capital. Our tenants also face additional challenges, including potential changes in ~~early 2020, among the broader public health, societal~~consumer confidence levels, behavior and ~~global impacts, the pandemic has resulted in governmental and/~~spending and increased operational expenses, such as with respect to labor or ~~regulatory actions imposing, among other things, temporary closures or restrictions from time to time on our tenants’ operations~~energy costs. As a triple-net lessor, increased operational expenses at ~~our properties and our golf course operations. Although all of~~ our leased properties ~~and our golf courses~~ are ~~currently open and operating, without restriction in some jurisdictions, they remain subject to any current or future operating limitations, restrictions or closures imposed~~borne by ~~governmental and/or regulatory authorities. While our tenants’ recent performance at many of our leased properties has been at or above pre-pandemic levels,~~ our tenants ~~may continue to face additional challenges~~ and ~~uncertainty due to the~~do not directly impact of the COVID-19 pandemic, such as complying with operational and capacity restrictions and ensuring sufficient employee staffing and service levels, and the sustainability of maintaining improved operating margins and financial performance. Due to prior closures, operating restrictions and other factors, our tenants’ operations, liquidity and financial performance have been adversely affected, and the ongoing nature of the pandemic, including emerging variants, may further adversely affect our tenants’ businesses and, accordingly, our business and financial performance could be adversely affected in the future.

~~All of our tenants have fulfilled~~ their rent obligations ~~through April 2022 and we regularly engage~~(other than with respect to underlying inflation as applied to the CPI-based escalators) or other obligations under our ~~tenants in connection with their business performance, operations, liquidity and financial results.~~ Lease Agreements. As a triple-net lessor, we believe we are generally in a strong creditor position and structurally insulated from operational and performance impacts of our tenants, both positive and negative. However, the full extent to which ~~the COVID-19 pandemic continues to~~these trends adversely affect our tenants ~~and~~and/or ultimately ~~impacts~~impact us depends on future developments ~~which~~that cannot be predicted with confidence, including the actions taken to contain the pandemic or mitigate its impact, including the availability, distribution, public acceptance and efficacy of approved vaccines, new or mutated variants of COVID-19 (including vaccine-resistant variants) or a similar virus,our tenants’ financial performance, the direct and indirect ~~economic~~ effects of such trends (including among other things, interest rate changes, inflation, economic recessions, consumer confidence levels and general conditions in the ~~pandemic~~capital and ~~containment~~credit markets) and the impact of any future measures taken in response to such trends on our ~~tenants, our tenants’ financial performance and any future operating limitations or closures.~~ tenants.

For more information, refer to the ~~section~~sections entitled “Key Trends That May Affect Our Business” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, ~~202~~12022 and as updated from time to time in our other filings with the SEC.

SIGNIFICANT ACTIVITIES DURING 2023

Acquisition Activity

•PURE Canadian Gaming Transaction. On January 6, 2023, we acquired the real estate assets of PURE Casino Edmonton, PURE Casino Yellowhead, PURE Casino Calgary, and PURE Casino Lethbridge, all of which are located in Alberta, Canada, from PURE Canadian Gaming for an aggregate purchase price of approximately C$271.9 million (approximately US$200.8 million based on the exchange rate at the time of the acquisition) (the “PURE Canadian Gaming Transaction”). We financed the PURE Canadian Gaming Transaction with a combination of cash on hand and drawing down C$140.0 million (approximately US$103.4 million based on the exchange rate at the time of the acquisition) under our Revolving Credit Facility. Simultaneous with the acquisition, we entered into the PURE Master Lease. The PURE Master Lease has an initial total annual rent of approximately C$21.8 million (approximately US$16.1 million based on the exchange rate at the time of the acquisition), an initial term of 25 years, with four 5-year tenant renewal options, escalation of 1.25% per annum in lease years two and three (and thereafter at the greater of 1.5% and Canadian Consumer Price Index, capped at 2.5%) and minimum capital expenditure requirements of 1.0% of annual net revenue (excluding gaming equipment). The tenant’s obligations under the PURE Master Lease are guaranteed by the parent entity of PURE Canadian Gaming.

•MGM Grand/Mandalay Bay JV Interest Acquisition. On January 9, 2023, we closed on the previously announced acquisition of the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV (previously referred to as the “BREIT JV”) from BREIT (the “MGM Grand/Mandalay Bay JV Interest Acquisition”) for cash consideration of $1,261.9 million. We also assumed the remaining $1,497.0 million pro rata share of an aggregate $3.0 billion of property-level debt, which matures in 2032 and bears interest at a fixed rate of 3.558% per annum through March 2030. The cash consideration was funded through a combination of cash on hand and proceeds from the settlement of

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~~SIGNIFICANT ACTIVITIES DURING~~the November 2022

~~Acquisition~~ Forward Sale Agreements and ~~Investment Activity~~

•ATM Forward Sale Agreements (as defined in ~~MGP Transactions.~~ Note 11 - Stockholders Equity~~On April 29, 2022, we closed on the previously announced MGP Transactions governed by the MGP Master Transaction Agreement, pursuant to~~). The MGM Grand/Mandalay Bay Lease currently has an annual rent of $309.9 million, all of which we ~~acquired MGP for total consideration of $17.2 billion, inclusive of the assumption of approximately $5.7 billion of debt. Upon closing, the MGP Transactions added $1,012.2 million of annualized rent~~are entitled to our portfolio from 15 Class A entertainment casino resort properties spread across nine regions and comprising 36,000 hotel rooms, 3.6 million square feet of meeting and convention space and hundreds of food, beverage and entertainment venues. Under the terms of the MGP Master Transaction Agreement, holders of MGP Common Shares received 1.366 shares of our newly issued common stock in exchange for each Class A common share of MGP. The fixed Exchange Ratio represented an agreed upon price of $43.00 per share of MGP Class A common shares based on VICI’s trailing 5-day volume weighted average price of $31.47 as of July 30, 2021. MGM received $43.00 per unit in cash for the redemption of the majority of its MGP OP units that it holds for total cash consideration of approximately $4.404 billion and also retained approximately 12.2 million units in VICI OP. The MGP Class B share that was held by MGM was cancelled and ceased to exist.

~~Simultaneous with~~following the closing of the ~~Mergers on April 29, 2022, we entered into the~~ MGM ~~Master Lease.~~Grand/Mandalay Bay JV Interest Acquisition. The MGM ~~Master~~Grand/Mandalay Bay Lease has ana remaining initial lease term of 25approximately 27 years with three 10-year tenant renewal options and has an initial total annual rent of $860.0 million. Rent under the MGM Master Lease escalates at a rate of 2.0% per annum for the first 10 years and thereafter at the greater of 2.0% per annum or the increase(expiring in ~~the consumer price index (“CPI”)~~2050), subject to a 3.0% cap. The initial total annual rent under the MGM Master Lease will be reduced by $90.0 million to $770.0 million, upon the close of MGM’s pending sale of the operations of the Mirage to Hard Rock and entrance into the Mirage Lease, as further described below. Additionally, we retained MGP’s existing 50.1% ownership stake in the BREIT JV, which owns the real estate assets of MGM Grand Las Vegas and Mandalay Bay. The BREIT JV Lease remained unchanged and provides for current total annual base rent of approximately $303.8 million, of which approximately $152.2 million is attributable to MGP’s investment in the BREIT JV, and an initial term of thirty years with two 10-year tenant renewal options. Rent under the ~~BREIT JV~~MGM Grand/Mandalay Bay Lease escalates annually at ~~a rate~~2.0% through 2035 (year 15 of ~~2.0% per annum for~~ the ~~first fifteen years~~initial lease term) and thereafter at the greater of 2.0% ~~per annum~~ or CPI ~~subject~~(subject to a 3.0% ~~cap. The tenant’s obligations under~~ceiling). As of December 31, 2022, the MGM ~~Master Lease~~Grand/Mandalay Bay JV was accounted for as an equity method investment within Investment in unconsolidated affiliate on our Balance Sheet. Simultaneous with closing of the MGM Grand/Mandalay Bay JV Interest Acquisition, as a result of acquiring full ownership of the joint venture, we consolidated the net assets and operations of the ~~BREIT JV Lease continue to be guaranteed by MGM.~~MGM Grand/Mandalay Bay JV.

•~~BigShots Loan.~~Gold Strike Severance Lease. ~~Subsequent to quarter end, on April 7, 2022,~~On February 15, 2023, in connection with MGM’s sale of the operations of Gold Strike, we entered into the ~~BigShots Loan~~Gold Strike Lease with ~~BigShots Golf, a subsidiary of ClubCorp, an Apollo fund portfolio company, under which we agreed~~CNB related to provide up to $80.0 million of mortgage financing (“BigShots Loan”) for the construction of certain new BigShots Golf facilities throughout the United States. The BigShots Loan bears interest at a rate of 10.0% per annum and has an initial term of five years with two successive 12-month extension options, subject to certain conditions. Our commitment to fund the loan will be subject to customary terms and conditions and disbursement of funds to the borrower will be based upon construction of the applicable BigShots Golf facilities. In addition, we entered into a right of first offer and call right agreement, pursuant to which (i) we have a call right to acquire the real estate assets associated with any BigShots Golf facility financed by us, which transaction will be structured as a sale leaseback, and (ii) for so long as the BigShots Loan remains outstanding and we continue to hold a majority interest therein, subject to additional terms and conditions, we will have a right of first offer on any multi-site mortgage, mezzanine, preferred equity, or other similar financing that is treated as debt to be obtained by BigShots Golf (or any of its affiliates) in connection with the development of BigShots Golf facilities.

•~~Venetian Acquisition.~~ ~~On February 23, 2022, we closed on the previously announced transaction to acquire all of~~ the land and real estate assets ~~associated with the Venetian Resort from LVS for $4.0 billion in cash,~~of Gold Strike, and the Venetian Tenant acquired the operating assets of the Venetian Resort for $2.25 billion, of which $1.2 billion is in the form of a secured term loan from LVS and the remainder was paid in cash. We funded the Venetian Acquisition with (i) $3.2 billion in net proceeds from the physical settlement of the March 2021 Forward Sale Agreements and the September 2021 Forward Sale Agreements, (ii) an initial draw on the Revolving Credit Facility of $600.0 million, and (iii) cash on hand. Simultaneous with the closing of the Venetian Acquisition, we entered into the Venetian Lease with the Venetian Tenant. The Venetian Lease has an initial total annual rent of $250.0 million and an initial term of 30 years, with two ten-year tenant renewal options. The annual rent is subject to escalation equal to the greater of 2.0% and the increase in the CPI, capped at 3.0%, beginning in the earlier of (i) the beginning of the third lease year, and (ii) the month following the month in which the net revenue generated by the Venetian Resort returns to its 2019 level (the year immediately prior to the onset of the COVID-19 pandemic) on a trailing twelve-month basis.

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In connection with the Venetian Acquisition, we entered into the Venetian PGFA with the Venetian Tenant. Under the Venetian PGFA, we agreed to provide up to $1.0 billion for various development and construction projects affecting the Venetian Resort to be identified by the Venetian Tenant and that satisfy certain criteria more particularly set forth in the Venetian PGFA, in consideration of additional incremental rent to be paid by the Venetian Tenant under the Venetian Lease and calculated in accordance with a formula set forth in the Venetian PGFA.

In addition, LVS agreed with the Venetian Tenant pursuant to the Contingent Lease Support Agreement entered into simultaneously with the closing of the Venetian Acquisition to provide lease payment support designed to guarantee the Venetian Tenant’s rent obligations under the Venetian Lease through 2023, subject to early termination if EBITDAR (as defined in such agreement) generated by the Venetian Resort in 2022 equals or exceeds $550.0 million, or a tenant change of control occurs. We are a third-party beneficiary of the Contingent Lease Support Agreement and have certain enforcement rights pursuant thereto. The Contingent Lease Support Agreement is limited to coverage of the Venetian Tenant’s rent obligations and does not cover any environmental expenses, litigation claims, or any cure or enforcement costs. The obligations of the Venetian Tenant under the Venetian Lease are not guaranteed by Apollo or any of its affiliates. After the termination of the Contingent Lease Support Agreement, the Venetian Tenant will be required to provide a letter of credit to secure seven and one-half months of the rent, real estate taxes and assessments and insurance obligations of the Venetian Tenant if the operating results from the Venetian Resort do not exceed certain thresholds.

~~Financing and Capital Markets Activity~~

•~~Issuance of Exchange Notes.~~ Subsequent to quarter-end, in connection with the closing of the MGP Transactions on April 29, 2022, the VICI Issuers issued $4,110.0 million in aggregate principal amount of Exchange Notes in exchange for the validly tendered and not validly withdrawn MGP OP Notes pursuant to the settlement of the Exchange Offers and Consent Solicitations (each, as defined in ~~Note 3 - Property Transactions~~). The Exchange Notes were issued with the same interest rate, maturity date and redemption terms as the corresponding series of MGP OP Notes. Following the issuance of the Exchange Notes pursuant to the settlement of the Exchange Offers and Consent Solicitations, $90.0 million in aggregate principal amount of MGP OP Notes remained outstanding. See ~~Note 7 - Debt~~ ~~for additional information.~~

•~~Issuance of April 2022 Notes.~~ Subsequent to quarter-end, in connection with the closing of the MGP Transactions on April 29, 2022, VICI LP issued (i) $500.0 million in aggregate principal amount of 4.375% 2025 Notes, (ii) $1,250.0 million in aggregate principal amount of 4.750% 2028 Notes, (iii) $1,000.0 million in aggregate principal amount of 4.950% 2030 Notes, (iv) $1,500.0 million in aggregate principal amount of 5.125% 2032 Notes, and (v) $750.0 million in aggregate principal amount of 5.625% 2052 Notes, in each case under a supplemental indenture dated as of April 29, 2022, between VICI LP and the Trustee (as defined in ~~Note 7 - Debt~~). We used the net proceeds of the offering to (i) fund the consideration for the redemption of a majority of the VICI OP Units received by MGM in the Partnership Merger for $4,404.0 million in cash in connection with the closing of the MGP Transactions on April 29, 2022, and (ii) pay down the outstanding $600.0 million balance on our Revolving Credit Facility. The weighted average interest rate for the senior notes issued in the April 2022 Notes Offering is 5.00%, and the adjusted weighted average interest rate, after taking into account the impact of the forward starting interest rate swaps and treasury locks, is 4.51%.

•~~Settlement of September 2021 Forward Sale Agreements and March 2021 Forward Sale Agreements.~~ On February 18, 2022, we physically settled the September 2021 Forward Sale Agreements and the March 2021 Forward Sale Agreements in exchange for total net proceeds of approximately $3.2 billion, which were used to pay for a portion of the purchase price of the Venetian Acquisition.

•~~Entry into New Unsecured Credit Agreement.~~ On February 8, 2022, we entered into the Credit Facilities pursuant to the Credit Agreement, comprised of (i) the Revolving Credit Facility in the amount of $2.5 billion scheduled to mature on March 31, 2026 and (ii) the Delayed Draw Term Loan in the amount of $1.0 billion scheduled to mature on March 31, 2025. Concurrently, we terminated our Secured Revolving Credit Facility (including the first priority lien on substantially all of VICI PropCo’s and its existing and subsequently acquired wholly owned material domestic restricted subsidiaries’ material assets) and 2017 Credit Agreement (as defined in ~~Note 7 - Debt~~). The Credit Facilities include the option to increase the revolving loan commitments by up to $1.0 billion in the aggregate and increase the delayed draw term loan commitments or add one or more new tranches of term loans by up to $1.0 billion in the aggregate, in each case, to the extent that any one or more lenders (from the syndicate or otherwise) agree to provide such additional credit extensions. Borrowings under the Credit Facilities will bear interest, at VICI LP’s option, (i) with respect to the Revolving Credit Facility, at a rate based on SOFR (including a credit spread adjustment) plus a margin ranging from 0.775% to 1.325% or a base rate plus a margin ranging from 0.00% to 0.325%, in each case, with

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the actual margin determined according to VICI LP’s debt ratings, and (ii) with respect to the Delayed Draw Term Loan, at a rate based on SOFR (including a credit spread adjustment) plus a margin ranging from 0.85% to 1.60% or a base rate plus a margin ranging from 0.00% to 0.60%, in each case, with the actual margin determined according to VICI LP’s debt ratings. On February 18, 2022, we drew on the Revolving Credit Facility in the amount of $600.0 million to fund a portion of the purchase price of the Venetian Acquisition. On April 29, 2022 we repaid the outstanding balance of the Revolving Credit Facility using the proceeds from the April 2022 Notes and cash on hand.

•~~Entry into Forward-Starting Interest Rate Swap Agreements and U.S. Treasury Rate Locks.~~ From December 2021 through March 2022, we entered into five forward-starting interest rate swap agreements with third-party financial institution having an aggregate notional amount of $2,500.0 million. Additionally, in April 2022, we entered into two U.S. Treasury Rate Lock agreements with a notional amount of $500.0 million. The interest rate swap agreements and treasury locks were intended to reduce the variability in the forecasted interest expense related to the fixed-rate debt we expected to incur in connection with closing the MGP Transactions. Subsequent to quarter-end, in connection with the April 2022 Notes offering we settled the outstanding forward-starting interest rate swaps and treasury locks for net proceeds of $206.8 million. Since the forward-starting swaps and treasury locks were hedging the interest rate risk on the April 2022 Notes, the unrealized gain in Accumulated other comprehensive income will be amortized over the term of the respective derivative instruments, which matches that of the underlying note, as a reduction in interest expense.

~~PENDING ACTIVITY~~

•~~Mirage Severance Lease.~~ ~~On December 13, 2021, in connection with MGM’s agreement to sell the operations of the Mirage Hotel & Casino to Hard Rock, we agreed to enter into the Mirage Lease, and enter~~ into an amendment to the MGM Master Lease ~~relating~~in order to account for the ~~sale~~divestiture of the ~~Mirage.~~operations of Gold Strike. The ~~Mirage~~Gold Strike Lease ~~will have~~has initial annual base rent of ~~$90.0~~$40.0 million with other economic terms substantially similar to the MGM Master Lease, including a base term of 25 years with three 10-year tenant renewal options, escalation of 2.0% per annum (with escalation of the greater of 2.0% and CPI, capped at 3.0%, beginning in lease year 11) and minimum capital expenditure requirements of 1.0% of annual net revenue. The Gold Strike Lease is guaranteed by CNB. Upon the closing of the sale of ~~the Mirage,~~Gold Strike, the MGM Master Lease ~~will be~~was amended to account for MGM’s divestiture of the ~~Mirage~~Gold Strike operations and ~~will result~~resulted in a reduction of the ~~initial~~ annual base rent under the MGM Master Lease by ~~$90.0~~$40.0 million.

Loan and Security Investment Activity

•Hard Rock Ottawa Secured Notes. On March 28, 2023, we purchased $85.0 million principal amount of senior secured notes from H.R. Ottawa, L.P., which owns and operates the Hard Rock Ottawa Casino. H.R. Ottawa, L.P. intends to use the proceeds of the Hard Rock Ottawa Notes to fund a portion of (i) the redevelopment and rebrand of the existing Rideau Carleton Raceway Casino, located in Ottawa, Canada, (ii) the development of an integrated “Hard Rock” branded hotel with approximately 150 rooms, and (iii) the repayment of existing debt.

Financing and Capital Markets Activity

•January 2023 Offering. On January 12, 2023, we completed a primary forward offering of 30,302,500 shares of common stock (inclusive of 3,952,500 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of common stock) at a public offering price of $33.00 per share for an aggregate offering value of $1,000.0 million, resulting in net proceeds, after deduction of the underwriting discount and expenses, of $964.4 million. The shares are subject to forward sale agreements (the “January 2023 Forward Sale Agreements”), which require settlement by January 16, 2024. We ~~expect these transactions to be completed~~did not initially receive any proceeds from the sale of the shares of common stock in the ~~second half of 2022,~~offering, which were sold to the underwriters by the forward purchasers or their respective affiliates and ~~they~~ remain subject to ~~customary closing conditions and regulatory approvals. Additionally, subject to certain conditions, we may fund up to $1.5 billion of Hard Rock’s redevelopment plan for~~settlement in accordance with the ~~Mirage through our Partner Property Growth Fund if Hard Rock elects to seek third-party financing for such redevelopment. Specific~~ terms of the ~~redevelopment~~January 2023 Forward Sale Agreements. Subsequent to quarter-end, on April 4, 2023, we physically settled 3,200,000 shares under the January 2023 Forward Sale Agreements at a forward sale price of $31.71 per share in exchange for total net proceeds of approximately $101.5 million. Following such settlement, 27,102,500 shares of common stock remain available for settlement under the January 2023 Forward Sale Agreements.

•Settlement of ATM Forward Sale Agreements and ~~related funding remain~~November 2022 Forward Sale Agreements. In January 2023, we physically settled all the forward shares issued under ~~discussion~~the ATM Program and ~~subject~~November 2022 Forward Sale Agreements in exchange for total net proceeds of approximately $1,272.3 million, which were used to ~~final documentation.~~pay for a portion of the purchase price of the MGM Grand/Mandalay Bay JV Interest Acquisition.

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RESULTS OF OPERATIONS

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 and not VICI LP, are shown as separate line items in the Statement of Operations of VICI.

~~Segments~~

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.


		Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021		Variance			(In thousands)	2023		2022		Variance
Revenues	Revenues								Revenues
Income from sales-type leases	Income from sales-type leases	$	326,735	$	290,146	$	36,589		Income from sales-type leases	$	478,394	$	326,735	$	151,659

Income from lease financing receivables and loans		72,878		70,377		2,501
Income from lease financing receivables, loans and securities									Income from lease financing receivables, loans and securities	371,069		72,878		298,191
Other income	Other income	8,386		6,974		1,412			Other income	18,339		8,386		9,953
Golf revenues	Golf revenues	8,626		6,813		1,813			Golf revenues	9,845		8,626		1,219
Total revenues	Total revenues	416,625		374,310		42,315			Total revenues	877,647		416,625		461,022

Operating expenses	Operating expenses								Operating expenses
General and administrative	General and administrative	9,466		8,085		1,381			General and administrative	15,005		9,466		5,539
Depreciation	Depreciation	776		792		(16)			Depreciation	814		776		38
Other expenses	Other expenses	8,386		6,974		1,412			Other expenses	18,339		8,386		9,953
Golf expenses	Golf expenses	5,285		4,506		779			Golf expenses	5,952		5,285		667
Change in allowance for credit losses	Change in allowance for credit losses	80,820		(4,380)		85,200			Change in allowance for credit losses	111,477		80,820		30,657
Transaction and acquisition expenses	Transaction and acquisition expenses	755		8,721		(7,966)			Transaction and acquisition expenses	(958)		755		(1,713)
Total operating expenses	Total operating expenses	105,488		24,698		80,790			Total operating expenses	150,629		105,488		45,141

Income from unconsolidated affiliate									Income from unconsolidated affiliate	1,280		—		1,280
Interest expense	Interest expense	(68,142)		(77,048)		8,906			Interest expense	(204,360)		(68,142)		(136,218)
Interest income	Interest income	93		19		74			Interest income	3,047		93		2,954

Other gains (losses)									Other gains (losses)	1,963		—		1,963
Income before income taxes	Income before income taxes	243,088		272,583		(29,495)			Income before income taxes	528,948		243,088		285,860
Income tax expense	Income tax expense	(400)		(484)		84			Income tax expense	(1,087)		(400)		(687)
Net income	Net income	242,688		272,099		(29,411)			Net income	527,861		242,688		285,173
Less: Net income attributable to non-controlling interest		(2,305)		(2,298)		(7)
Less: Net income attributable to non-controlling interests									Less: Net income attributable to non-controlling interests	(9,121)		(2,305)		(6,816)
Net income attributable to common stockholders	Net income attributable to common stockholders	$	240,383	$	269,801	$	(29,418)		Net income attributable to common stockholders	$	518,740	$	240,383	$	278,357

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Revenue

For the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, our revenue was comprised of the following items:


		Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021		Variance			(In thousands)	2023		2022		Variance
Leasing revenue	Leasing revenue	$	389,754	$	350,038	$	39,716		Leasing revenue	$	833,232	$	389,754	$	443,478
Income from loans		9,859		10,485		(626)
Income from loans and securities									Income from loans and securities	16,231		9,859		6,372
Other income	Other income	8,386		6,974		1,412			Other income	18,339		8,386		9,953
Golf revenues	Golf revenues	8,626		6,813		1,813			Golf revenues	9,845		8,626		1,219
Total revenues	Total revenues	$	416,625	$	374,310	$	42,315		Total revenues	$	877,647	$	416,625	$	461,022

Leasing Revenue

The following table details the components of our income from sales-type and financing receivables leases:


		Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021		Variance			(In thousands)	2023		2022		Variance
Income from sales-type leases	Income from sales-type leases	$	326,735	$	290,146	$	36,589		Income from sales-type leases	$	478,394	$	326,735	$	151,659

Income from lease financing receivables (1)	Income from lease financing receivables (1)	63,019		59,892		3,127			Income from lease financing receivables (1)	354,838		63,019		291,819
Total leasing revenue	Total leasing revenue	389,754		350,038		39,716			Total leasing revenue	833,232		389,754		443,478
Non-cash adjustment (2)	Non-cash adjustment (2)	(35,553)		(27,877)		(7,676)			Non-cash adjustment (2)	(122,841)		(35,553)		(87,288)
Total contractual leasing revenue	Total contractual leasing revenue	$	354,201	$	322,161	$	32,040		Total contractual leasing revenue	$	710,391	$	354,201	$	356,190

____________________

(1) Represents the MGM Master Lease, Harrah’s ~~Original~~ Call Properties (as defined in Note 2 - Summary of Significant Accounting Policies), the JACK Master Lease, the Foundation Master Lease and the ~~JACK Cleveland/Thistledown~~PURE Master Lease, ~~both~~all of which were sale leaseback transactions. In accordance with ASC 842, since the lease agreements were determined to meet the definition of a sales-type lease and control of the asset is not considered to have transferred to us, such lease agreements are accounted for as financings under ASC 310.

(2) Amounts represent the non-cash adjustment to income from sales-type leases, direct financing leases and lease financing receivables in order to recognize income on an effective interest basis at a constant rate of return over the term of the leases.

Leasing revenue is generated from rent from our Lease Agreements. Total leasing revenue increased ~~$39.7~~$443.5 million during the three months ended March 31, ~~2022,~~2023, compared to the three months ended March 31, ~~2021.~~2022. Total contractual leasing revenue increased ~~$32.0~~$356.2 million during the three months ended March 31, ~~2022,~~2023, compared to the three months ended March 31, ~~2021.~~2022. The ~~increase was~~increases were primarily driven by the addition of the MGM Master Lease, Venetian Lease and Foundation Master Lease to our portfolio in ~~February~~2022, and the addition of ~~2022~~the PURE Master Lease and MGM Grand/Mandalay Bay Lease to our portfolio in January 2023, as well as the annual rent escalators from certain of our ~~Leases.~~other Lease Agreements.

Income From Loans and Securities

Income from loans ~~decreased $0.6~~and securities increased $6.4 million during the three months ended March 31, ~~2022,~~2023 compared to the three months ended March 31, ~~2021.~~2022. The ~~decrease~~increase was driven by ~~repayment~~the origination and subsequent funding, as applicable, of our senior secured and mezzanine loans and securities and the ~~$70.0 million~~ ~~ROV term loan with JACK Entertainment in October 2021,~~ ~~partially offset by~~related interest income from the ~~addition of the Great Wolf Mezzanine Loan to our real estate investment portfolio in June 2021.~~increased principal balance outstanding.

Other Income

Other income increased ~~$1.4~~$10.0 million during the three months ended March 31, ~~2022~~2023, compared to the three months ended March 31, ~~2021,~~2022. The increase was driven primarily by the additional income and offsetting expense as a result of the assumption of certain sub-leases in connection with the closing of the Venetian ~~Acquisition.~~Acquisition and MGP Transactions. The Lease Agreements require the tenants to pay all costs associated with such ground and use sub-leases and provide for their direct payment to the landlord.

~~Golf Revenues~~

Revenues from VICI’s golf operations increased $1.8 million during the three months ended March 31, 2022, compared to the three months ended March 31, 2021. The change was primarily driven by an increase in rounds played at the golf courses and an increase in the contractual fees paid to us by Caesars for the use of our golf courses, pursuant to a golf course use agreement.

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Operating Expenses

For the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, our operating expenses were comprised of the following items:


		Three Months Ended March 31,						Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021		Variance			(In thousands)	2023		2022		Variance
General and administrative	General and administrative	$	9,466	$	8,085	$	1,381		General and administrative	$	15,005	$	9,466	$	5,539
Depreciation	Depreciation	776		792		(16)			Depreciation	814		776		38
Other expenses	Other expenses	8,386		6,974		1,412			Other expenses	18,339		8,386		9,953
Golf expenses	Golf expenses	5,285		4,506		779			Golf expenses	5,952		5,285		667
Change in allowance for credit losses	Change in allowance for credit losses	80,820		(4,380)		85,200			Change in allowance for credit losses	111,477		80,820		30,657
Transaction and acquisition expenses	Transaction and acquisition expenses	755		8,721		(7,966)			Transaction and acquisition expenses	(958)		755		(1,713)
Total operating expenses	Total operating expenses	$	105,488	$	24,698	$	80,790		Total operating expenses	$	150,629	$	105,488	$	45,141

General and Administrative Expenses

General and administrative expenses increased ~~$1.4~~$5.5 million for the three months ended March 31, ~~2022,~~2023, as compared to the three months ended March 31, ~~2021.~~2022. The increase was primarily driven by an increase in compensation, including stock-based ~~compensation.~~compensation and the addition of new employees, and additional expenses related to the significant growth of our business in 2022.

Other Expenses

Other expenses increased ~~$1.4~~$10.0 million during the three months ended March 31, ~~2022~~2023, compared to the three months ended March 31, ~~2021,~~2022, driven primarily by the additional income and offsetting expense as a result of the assumption of certain sub-leases in connection with the Venetian ~~Acquisition.~~Acquisition and MGP Transactions. The Lease Agreements require the tenants to pay all costs associated with such ground and use sub-leases and provide for their direct payment to the landlord.

~~Golf Expenses~~Change in Allowance for Credit Losses

~~Expenses from golf operations for VICI increased $0.8 million during~~During the three months ended March 31, ~~2022, compared to the three months ended March 31, 2021. The change was~~2023, we recognized a $111.5 million increase in our allowance for credit losses primarily driven by (i) initial CECL allowances in relation to (a) the consolidation of the MGM Grand/Mandalay Bay JV in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition and related classification of the MGM Grand/Mandalay Bay Lease as a sales-type lease, (b) the PURE Canadian Gaming Transaction and related classification of the PURE Master Lease as a lease financing receivable, and (c) the purchase of the Hard Rock Ottawa Notes, and (ii) an increase in ~~rounds~~the Long-Term Period probability of ~~golf played across~~default, or PD, as a result of a standard annual update made to the Long-Term PD default study we utilize to estimate our ~~golf courses.~~CECL allowance. This increase was partially offset by (i) a decrease in the reasonable and supportable period, or R&S Period, PD of our tenants and their parent guarantors as a result of their market performance during the current quarter and (ii) changes in the macroeconomic model used to scenario condition our R&S Period PD.

~~Change in Allowance for Credit Losses~~

~~Under ASU No. 2016-13 -~~ ~~Financial Instruments-Credit Losses (Topic 326),~~ ~~we are required to record an estimated credit loss for our (i) Investments in leases - sales-type, (ii) Investments in leases - financing receivables and (iii) Investments in loans.~~ During the three months ended March 31, 2022, we recognized aan $80.8 million increase in our allowance for credit losses primarily driven by (i) the initial CECL allowance in relation to (a) the Venetian Acquisition and classification of the Venetian Lease as a sales-type lease, (b) the estimated future funding commitments under our Property Growth Fund Agreement with the Venetian ~~PGFA~~Tenant and (c) the sales-type sub-lease agreements we assumed in connection with the Venetian Acquisition and are required to present gross and (ii) the increase ~~in the reasonable and supportable period, or~~ R&S Period ~~probability of default, or~~ PD of our tenants and their parent guarantors as a result of market volatility during the first quarter of 2022. This was partially offset by a decrease in the Long-Term Period PD as a result of a standard annual update made to the Long-Term PD default study we utilize to estimate our CECL allowance.

Transaction and Acquisition Expenses

Transaction and acquisition expenses decreased ~~$8.0~~$1.7 million during the three months ended March 31, ~~2022~~2023, compared to the three months ended March 31, ~~2021.~~2022. Changes in transaction and acquisition expenses are related to fluctuations in (i) costs incurred for investments during the period that are not capitalizable under GAAP and (ii) costs incurred for investments that we are no longer pursuing.

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Non-Operating Income and Expenses

For the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, our non-operating income and expenses were comprised of the following items:


									Three Months Ended March 31,
(In thousands)	(In thousands)	2022		2021		Variance		(In thousands)	2023		2022		Variance
Income from unconsolidated affiliate								Income from unconsolidated affiliate	$	1,280	$	—	$	1,280
Interest expense	Interest expense	$	(68,142)	$	(77,048)	$	8,906	Interest expense	(204,360)		(68,142)		(136,218)
Interest income	Interest income	93		19		74		Interest income	3,047		93		2,954

Other gains (losses)								Other gains (losses)	1,963		—		1,963

Income from Unconsolidated Affiliate

Income from unconsolidated affiliate during the three months ended March 31, 2023 represents our 50.1% share of the income of the MGM Grand/Mandalay Bay JV for the period from January 1, 2023 through January 8, 2023, immediately prior to the MGM Grand/Mandalay Bay JV Interest Acquisition. Beginning on January 9, 2023, upon the closing of the MGM Grand/Mandalay Bay JV Interest Acquisition, we consolidated the operations of the MGM Grand/Mandalay Bay JV, and subsequently, such income is included in Income from sales-type lease on our Statement of Operations. The income from unconsolidated affiliate includes the amortization of certain basis differences arising from the differences between our purchase price and the underlying carrying value of the joint venture. As the initial 50.1% interest in the MGM Grand/Mandalay Bay JV was acquired by us on April 29, 2022 in connection with the MGP Transactions, no such income was recognized for the three months ended March 31, 2022.

Interest Expense

Interest expense ~~decreased $8.9~~increased $136.2 million during the three months ended March 31, ~~2022,~~2023, as compared to the three months ended March 31, ~~2021.~~2022. The ~~decrease~~increase during the three months ended March 31, 2023 was primarily related to the increase in debt from the (i) issuance of the April 2022 Notes, (ii) issuance of the Exchange Notes, (iii) assumption of the MGP OP Notes, (iv) C$140.0 million draw on the Revolving Credit Facility to finance the PURE Canadian Gaming Transaction, and (v) assumption of $3.0 billion aggregate principal of CMBS debt in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition, the combination of which resulted in an additional $12.3 billion in notional amount of debt at a weighted average interest rate of 4.45%, net of the impact of the forward-starting interest rate swaps and treasury locks. The increases were partially offset by certain interest expense recorded during the three months ended March 31, 2022 ~~was primarily related to~~with no corresponding expense during the ~~full repayment of the Term Loan B Facility~~three months ended March 31, 2023 and ~~termination of interest rate swap agreements in September 2021, partially offset by~~include (i) the amortization of the commitment fees associated with the Venetian Acquisition Bridge Facility and the MGP Transactions Bridge Facility ~~(ii) the commitment fees on the Revolving Credit Facility~~ and ~~Delayed Draw Term Loan and (iii)~~(ii) additional interest on the $600.0 million draw on the Revolving Credit ~~Facility.~~Facility in February 2022 (which was repaid in full on April 29, 2022).

Additionally, the weighted average annualized interest rate of our debt, ~~decreased~~net of the impact of the forward-starting interest rate swaps and treasury locks, increased to 4.33% during the three months ended March 31, 2023, from 3.97% during the three months ended March 31, 2022, ~~from 4.05%~~as a result of a higher weighted average effective interest rate on the April 2022 Notes, Exchange Notes and MGP OP Notes as compared to our outstanding debt during such earlier periods, partially offset by the lower interest rate on the MGM Grand/Mandalay Bay JV CMBS debt.

Interest Income

Interest income increased $3.0 million during the three months ended March 31, ~~2021, as a result of a lower effective interest rate on the $600.0 million outstanding under the Revolving Credit Facility for a portion of time during~~2023 compared to the three months ended March 31, ~~2022~~2022. The increase was primarily driven by a significant increase in the interest rates and income earned on our excess cash and short-term investments, coupled with an overall increase in our cash on hand throughout the current quarter as compared to the ~~$600.0 million unhedged portion of the Term Loan B Facility outstanding during~~prior quarter.

Other Gains (Losses)

During the three months ended March 31, ~~2021.~~2023, we recognized $2.0 million of Other gains (losses), which primarily relates to foreign currency remeasurement adjustments associated with our investment in Canada. In connection with the PURE Canadian Gaming Transaction, we entered into intercompany debt and drew C$140.0 on the Revolving Credit Facility, both of which are denominated in CAD and, since such debt is held at entities with USD as their functional currency, certain of the related assets

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and liabilities are remeasured through the Statement of Operations. There is no comparable amount during the three months ended March 31, 2022, as we did not have any foreign investments during such time.

RECONCILIATION OF NON-GAAP MEASURES

We present VICI’s Funds From Operations (“FFO”), FFO per share, Adjusted Funds From Operations (“AFFO”), AFFO per share, and Adjusted EBITDA, which are not required by, or presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). These are non-GAAP financial measures and should not be construed as alternatives to net income or as an indicator of operating performance (as determined in accordance with GAAP). We believe FFO, FFO per share, AFFO, AFFO per share and Adjusted EBITDA provide a meaningful perspective of the underlying operating performance of VICI’s business.

FFO is a non-GAAP financial measure that is considered a supplemental measure for the real estate industry and a supplement to GAAP measures. Consistent with the definition used by the National Association of Real Estate Investment Trusts (NAREIT), we define FFO as VICI’s net income (or loss) attributable to common stockholders (computed in accordance with GAAP) excluding (i) gains (or losses) from sales of certain real estate assets, (ii) depreciation and amortization related to real estate, (iii) gains and losses from change in control, ~~and~~ (iv) impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the ~~entity.~~entity and (v) our proportionate share of such adjustments from our investment in unconsolidated affiliate.

AFFO is a non-GAAP financial measure that we use as a supplemental operating measure to evaluate VICI’s performance. We calculate VICI’s AFFO by adding or subtracting from FFO non-cash leasing and financing adjustments, non-cash change in allowance for credit losses, non-cash stock-based compensation expense, transaction costs incurred in connection with the acquisition of real estate investments, amortization of debt issuance costs and original issue discount, other non-cash interest expense, non-real estate depreciation (which is comprised of the depreciation related to our golf course operations), capital expenditures (which are comprised of additions to property, plant and equipment related to our golf course operations), impairment charges related to non-depreciable real estate, gains (or losses) on debt extinguishment and interest rate swap settlements, other gains (losses), other non-recurring non-cash transactions, our proportionate share of non-cash adjustments from our investment in unconsolidated affiliate (including the amortization of any basis differences) with respect to certain of the foregoing and non-cash adjustments attributable to non-controlling interest with respect to certain of the foregoing.

We calculate VICI’s Adjusted EBITDA by adding or subtracting from AFFO contractual interest expense (including the impact of the forward-starting interest rate swaps and treasury locks) and interest income (collectively, interest expense, net) ~~and~~, income tax ~~expense.~~expense and our proportionate share of such adjustments from our investment in unconsolidated affiliate.

These non-GAAP financial measures: (i) do not represent VICI’s cash flow from operations as defined by GAAP; (ii) should not be considered as an alternative to VICI’s net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (iii) are not alternatives to VICI’s cash flow as a measure of liquidity. In addition, these measures should not be viewed as measures of liquidity, nor do they measure our ability to fund all of our cash needs, including our ability to make cash distributions to our stockholders, to fund capital improvements, or to make interest payments on our indebtedness. Investors are also cautioned that FFO, FFO per share, AFFO, AFFO per share and Adjusted EBITDA, as presented, may not be comparable to similarly titled measures reported by other real estate companies, including REITs, due to the fact that not all real estate companies use the same definitions. Our presentation of these measures does not replace the presentation of VICI’s financial results in accordance with GAAP.

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Reconciliation of VICI’s Net Income to FFO, FFO per Share, AFFO, AFFO per Share and Adjusted EBITDA


		Three Months Ended March 31,					Three Months Ended March 31,
(In thousands, except share data and per share data)	(In thousands, except share data and per share data)	2022		2021				(In thousands, except share data and per share data)	2023		2022
Net income attributable to common stockholders	Net income attributable to common stockholders	$	240,383	$	269,801			Net income attributable to common stockholders	$	518,740	$	240,383
Real estate depreciation	Real estate depreciation	—		—				Real estate depreciation	—		—
FFO		240,383		269,801
Joint venture depreciation and non-controlling interest adjustments								Joint venture depreciation and non-controlling interest adjustments	1,426		—
FFO attributable to common stockholders								FFO attributable to common stockholders	520,166		240,383
Non-cash leasing and financing adjustments	Non-cash leasing and financing adjustments	(35,564)		(27,852)				Non-cash leasing and financing adjustments	(122,834)		(35,564)
Non-cash change in allowance for credit losses	Non-cash change in allowance for credit losses	80,820		(4,380)				Non-cash change in allowance for credit losses	111,477		80,820
Non-cash stock-based compensation	Non-cash stock-based compensation	2,630		2,277				Non-cash stock-based compensation	3,467		2,630
Transaction and acquisition expenses	Transaction and acquisition expenses	755		8,721				Transaction and acquisition expenses	(958)		755
Amortization of debt issuance costs and original issue discount	Amortization of debt issuance costs and original issue discount	15,977		6,691				Amortization of debt issuance costs and original issue discount	19,682		15,977
Other depreciation	Other depreciation	746		760				Other depreciation	783		746
Capital expenditures	Capital expenditures	(454)		(1,233)				Capital expenditures	(988)		(454)

Non-cash adjustments attributable to non-controlling interest		202		227
AFFO		305,495		255,012
Other (gains) losses (1)								Other (gains) losses (1)	(1,963)		—
Joint venture non-cash adjustments and non-controlling interest adjustments								Joint venture non-cash adjustments and non-controlling interest adjustments	(227)		202
AFFO attributable to common stockholders								AFFO attributable to common stockholders	528,605		305,495
Interest expense, net	Interest expense, net	52,072		70,338				Interest expense, net	181,631		52,072
Income tax expense	Income tax expense	400		484				Income tax expense	1,087		400
Adjusted EBITDA		$	357,967	$	325,834
Joint venture interest expense and non-controlling interest adjustments								Joint venture interest expense and non-controlling interest adjustments	(1,021)		—
Adjusted EBITDA attributable to common stockholders								Adjusted EBITDA attributable to common stockholders	$	710,302	$	357,967

Net income per common share	Net income per common share							Net income per common share
Basic	Basic	$	0.35	$	0.50			Basic	$	0.52	$	0.35
Diluted	Diluted	$	0.35	$	0.50			Diluted	$	0.52	$	0.35
FFO per common share	FFO per common share							FFO per common share
Basic	Basic	$	0.35	$	0.50			Basic	$	0.52	$	0.35
Diluted	Diluted	$	0.35	$	0.50			Diluted	$	0.52	$	0.35

AFFO per common share	AFFO per common share							AFFO per common share
Basic	Basic	$	0.45	$	0.48			Basic	$	0.53	$	0.45
Diluted	Diluted	$	0.44	$	0.47			Diluted	$	0.53	$	0.44
Weighted average number of shares of common stock outstanding	Weighted average number of shares of common stock outstanding					Weighted average number of shares of common stock outstanding
Basic	Basic	684,341,045		536,480,505				Basic	1,001,526,645		684,341,045
Diluted	Diluted	687,914,683		544,801,802				Diluted	1,003,831,325		687,914,683

____________________

(1)Represents non-cash foreign currency remeasurement adjustments.

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LIQUIDITY AND CAPITAL RESOURCES

Liquidity

As of March 31, ~~2022,~~2023, our available cash balances, capacity under our Revolving Credit Facility and ~~Delayed Draw Term Loan~~proceeds available from outstanding forward sale agreements were as follows:


(In thousands)	March 31, ~~2022~~2023
Cash and cash equivalents	$	~~568,702~~247,673


Capacity under Revolving Credit Facility (1)	~~1,900,000~~2,396,428

~~Capacity under Delayed Draw Term Loan~~Proceeds available from settlement of the January 2023 Forward Sale Agreements ~~(1)~~(2)	~~1,000,000~~960,417
Total	$	~~3,468,702~~3,604,518

____________________

(1)In addition, the Revolving Credit ~~Facilities include~~Facility includes the option to increase the revolving loan commitments by up to $1.0 billion ~~and increase the Delayed Draw Term Loan commitments or add one or more new tranches of term loans by up to $1.0 billion in the aggregate, in each case,~~ to the extent that any one or more lenders (from the syndicate or otherwise) agree to provide such additional credit extensions.

(2)Assumes the physical settlement of the 30,302,500 shares under the January 2023 Forward Sale Agreements at the forward sale price per share of $31.69, calculated as of March 31, 2023. Subsequent to quarter-end, on April 4, 2023, we physically settled 3,200,000 shares under the January 2023 Forward Sale Agreements at a forward sale price of $31.71 per share in exchange for total net proceeds of approximately $101.5 million.

We believe that we have sufficient liquidity to meet our material cash requirements, including our contractual obligations, debt maturities and commitments as well as our additional funding requirements, primarily through currently available cash and cash equivalents, cash received under our Lease Agreements, existing borrowings from banks, including our ~~Delayed Draw Term Loan and~~ undrawn capacity under our Revolving Credit Facility, and proceeds from future issuances of debt and equity securities (including issuances under ~~our~~the ATM ~~Agreement)~~Program) for the next 12 months and in future periods.

All of the Lease Agreements call for an initial term of between fifteen and thirty years with additional tenant renewal options and are designed to provide us with a reliable and predictable long-term revenue stream. ~~However,~~Our cash flows from operations and our ability to access capital resources could be adversely affected due to uncertain economic factors and volatility in the ~~COVID-19 pandemic has adversely impacted~~financial and credit markets, including as a result of the current inflationary environment, sustained rising interest rates, equity market volatility, changes in consumer behavior and spending. In particular, we can provide no assurances that our tenants ~~and~~will not default on their ~~financial condition, and may continue~~leases or fail to ~~do so,~~make full rental payments if their businesses become challenged due to, ~~the impact~~among other things, current or future adverse economic conditions. See “Overview — Impact of ~~operating restrictions and limitations imposed from time to time, as well as potential property reclosures.~~Material Trends on our Business” above for additional detail. In the event our tenants are unable to make all of their contractual rent payments as provided by the Lease Agreements, we believe we have sufficient liquidity from the other sources discussed above to meet all of our contractual obligations for a significant period of time. Additionally, we do not have any debt maturities until ~~2025.~~May 2024. For more information, refer to the risk factors incorporated by reference into Part II. Item 1A. Risk Factors herein from our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022.

Our cash flows from operations and our ability to access capital resources could be adversely affected due to uncertain economic factors and volatility in the financial and credit markets, including as a result of the COVID-19 pandemic. In particular, in connection with the COVID-19 pandemic and its impact on our tenants’ operations and financial performance, we can provide no assurances that our tenants will not default on their leases or fail to make full rental payments if their businesses become challenged due to, among other things, current or future adverse economic conditions. In addition, any such tenant default or failure to make full rental payments could impact our operating performance and result in us not satisfying the financial covenants applicable to our outstanding indebtedness, which could result in us not being able to incur additional debt, or result in a default. Further, current or future economic conditions could impact our tenants’ ability to meet capital improvement requirements or other obligations required in our Lease Agreements that could result in a decrease in the value of our properties.

Our ability to raise funds through the issuance of debt and equity securities and access to other third-party sources of capital in the future will be dependent on, among other things, ~~uncertainties related to COVID-19 and the impact of our response and our tenants’ responses to COVID-19,~~ general economic conditions, general market conditions for REITs and investment grade issuers, market perceptions, ~~and~~ the trading price of our ~~stock.~~stock and uncertainties related to the macroeconomic environment. We will continue to analyze which sources of capital are most advantageous to us at any particular point in time, but financing through the capital markets may not be consistently available on terms we deem attractive, or at all.

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Material Cash Requirements

Contractual Obligations

Our short-term obligations consist primarily of regular interest payments on our debt obligations, dividends to our common stockholders, distributions to the VICI OP unit holders, normal recurring operating expenses, recurring expenditures for corporate and administrative needs, certain lease and other contractual commitments related to our golf operations and certain non-recurring expenditures. For more information on our material contractual commitments, refer to Note 10 - Commitments and Contingent Liabilities.

Our long-term obligations consist primarily of principal payments on our outstanding debt obligations and future funding commitments under our lease and loan agreements. As of March 31, ~~2022,~~2023, we have ~~$5.4~~$17.1 billion of debt obligations ~~outstanding, none~~outstanding. We have $1.1 billion of debt which ~~are maturing in the next twelve months.~~matures on May 1, 2024. For a summary of principal debt balances and their

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maturity dates and principal terms, refer to Note 7 - Debt. For a summary of our future funding commitments under our loan portfolio, refer to Note 4 - Real Estate Portfolio.

~~As described in~~Pursuant to our ~~leases,~~Lease Agreements, capital expenditures for properties under the Lease Agreements are the responsibility of the tenants. Minimum capital expenditure spending requirements of the tenants pursuant to the Lease Agreements are described in Note 4 - Real Estate Portfolio.

Information concerning our material contractual obligations and commitments to make future payments under contracts such as our indebtedness, future funding commitments under our loans and Partner Property Growth Fund and future ~~minimum~~contractual operating commitments (such as future lease ~~commitments~~payments under ~~operating leases is~~our corporate lease) are included in the following table as of March 31, ~~2022.~~2023. Amounts in this table omit, among other things, non-contractual commitments and items such as dividends and recurring or non-recurring operating expenses and other expenditures, including acquisitions and other ~~investments.~~investments:

Payments Due By Period
(In thousands) Total 2022 (remaining) 2023 2024 2025 2026 and Thereafter
Long-term debt, principal
November 2019 Notes(1)
2026 Maturity $ 1,250,000 $ — $ — $ — $ — $ 1,250,000
2029 Maturity 1,000,000 — — — — 1,000,000
February 2020 Notes(1)
2025 Maturity 750,000 — — — 750,000 —
2027 Maturity 750,000 — — — — 750,000
2030 Maturity 1,000,000 — — — — 1,000,000
Revolving Credit Facility (2)
600,000 — — — — 600,000
Scheduled interest payments (3)
1,324,114 163,822 218,753 219,080 205,889 516,570
Total debt contractual obligations 6,674,114 163,822 218,753 219,080 955,889 5,116,570
Leases and contracts
Future funding commitments – loan investments and lease agreements(4)
45,327 30,327 — — — 15,000
Operating lease for Cascata Golf Course Land 18,579 714 970 990 1,009 14,895
Golf maintenance contract for Rio Secco and Cascata Golf Course 6,043 2,590 3,453 — — —
Office leases 7,489 697 857 857 899 4,179
Total leases and contract obligations 77,438 34,327 5,280 1,847 1,908 34,075
Total contractual commitments $ 6,751,552 $ 198,149 $ 224,034 $ 220,927 $ 957,797 $ 5,150,645

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		Payments Due By Period
(In thousands)		Total		2023 (remaining)		2024		2025		2026		2027 and Thereafter
Long-term debt, principal
	Senior Unsecured Notes	$	13,950,000	$	—	$	1,050,000	$	2,050,000	$	1,750,000	$	9,100,000
	MGM Grand/Mandalay Bay JV CMBS Debt	3,000,000		—		—		—		—		3,000,000



























	Revolving Credit Facility	103,572		—		—		—		103,572		—

Scheduled interest payments (1)		5,376,816		584,735		737,998		668,937		620,490		2,764,657
Total debt contractual obligations		22,430,388		584,735		1,787,998		2,718,937		2,474,062		14,864,657

Leases and contracts
	Future funding commitments – loan investments and Partner Property Growth Fund (2)	1,012,809		499,786		457,260		47,263		—		8,500
	Golf course operating lease and contractual commitments	43,673		1,553		2,112		2,153		2,197		35,658
	Corporate office leases	6,634		698		857		899		929		3,251
Total leases and contract obligations		1,063,116		502,037		460,229		50,315		3,126		47,409

Total contractual commitments		$	23,493,504	$	1,086,772	$	2,248,227	$	2,769,252	$	2,477,188	$	14,912,066

(~~1) The 2025 Notes, 2026 Notes, 2027 Notes, 2029 Notes and 2030 Notes will mature~~(1) Estimated interest payments on ~~February 15, 2025, December 1, 2026, February 15, 2027, December 1, 2029 and August 15, 2030, respectively.~~variable interest loans are based on the CDOR rate as of March 31, 2023.

(2) On February 8, 2022, we entered into the Credit Agreement providing for the Credit Facilities, comprised of the Revolving Credit Facility in the amount of $2.5 billion and the Delayed Draw Term Loan in the amount of $1.0 billion, and concurrently terminated our Secured Revolving Credit Facility (including the first priority lien on substantially all of VICI PropCo’s and its existing and subsequently acquired wholly owned material domestic restricted subsidiaries’ material assets) and 2017 Credit Agreement. Refer to ~~Note 7 - Debt~~ ~~for further information regarding the Credit Agreement.~~

(3) Subsequent to quarter end, on April 29, 2022, in connection with the closing of the MGP Transactions, we issued the April 2022 Notes, the Exchange Notes and assumed the MGP OP Notes, each as further described in ~~Note 7 - Debt. The April 2022 Notes, Exchange Notes and MGP OP Notes all provide for fixed interest rates and will add approximately $456.3 million in annual interest expense.~~

~~(4)~~ The allocation of our future funding commitments is based on ~~the~~a construction draw schedule, commitment funding date, or expiration date or other information, as ~~applicable,~~applicable; however, we may be obligated to fund these commitments earlier than such applicable date.

Additional Funding Requirements

In addition to the contractual obligations and commitments set forth in the table above, we have and may enter into additional agreements that commit us to potentially acquire properties in the future, fund future property improvements or otherwise provide capital to our tenants, borrowers and other counterparties, including through our put-call agreements and Partner Property Growth Fund. As of March 31, 2023, we had $1.0 billion of additional potential future funding commitments under our Partner Property Growth Fund agreements, the use of which are at the discretion of our tenants and will be dependent upon independent decisions made by our tenants with respect to any capital improvement projects and the source of funds for such projects, as well as the total funding ultimately provided under such arrangements.

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Cash Flow Analysis

The table below summarizes our cash flows for the three months ended March 31, ~~2022~~2023 and ~~2021:~~2022:


			Three Months Ended March 31,								Three Months Ended March 31,
(In thousands)	(In thousands)		2022		2021		Variance		(In thousands)		2023		2022		Variance
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash								Cash, cash equivalents and restricted cash
		Provided by operating activities	$	298,173	$	155,726	$	142,447		Provided by operating activities	$	522,033	$	298,173	$	223,860
		(Used in) provided by investing activities	(4,028,245)		32,409		(4,060,654)			Used in investing activities	(1,468,856)		(4,028,245)		2,559,389
		Provided by (used in) financing activities	3,559,160		(181,598)		3,740,758			Provided by financing activities	985,489		3,559,160		(2,573,671)
		Net (decrease) increase in cash, cash equivalents and restricted cash	(170,912)		6,537		(177,449)			Effect of exchange rate changes on cash, cash equivalents and restricted cash	74		—		74
		Cash, cash equivalents and restricted cash, beginning of period	739,614		315,993		423,621			Net increase (decrease) in cash, cash equivalents and restricted cash	38,740		(170,912)		209,652
		Cash, cash equivalents and restricted cash, end of period	$	568,702	$	322,530	$	246,172		Cash, cash equivalents and restricted cash, beginning of period	208,933		739,614		(530,681)
										Cash, cash equivalents and restricted cash, end of period	$	247,673	$	568,702	$	(321,029)

Cash Flows from Operating Activities

Net cash provided by operating activities increased ~~$142.4~~$223.9 million for the three months ended March 31, ~~2022~~2023 compared with the three months ended March 31, ~~2021.~~2022. The increase is primarily driven by an increase in cash rental payments from the addition of the Venetian Lease, MGM Master Lease, Foundation Master Lease, MGM Grand/Mandalay Bay Lease, and PURE Master Lease to our real estate portfolio, ~~in February 2022 and~~ the annual rent escalators on our Caesars Leases and certain of our other Lease ~~Agreements.~~Agreements and an increase in loan income as a result of an increase in the principal balance of our loan and securities portfolio.

Cash Flows from Investing Activities

Net cash used in investing activities increased ~~$4,060.7~~$2,559.4 million for the three months ended March 31, ~~2022~~2023 compared with the three months ended March 31, ~~2021.~~2022.

During the three months ended March 31, ~~2022,~~2023, the primary sources and uses of cash from investing activities included:

•Net payments of $1,266.9 million, including acquisition costs, in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition;

•Maturities of short-term investments of $217.3 million;

•Disbursements to fund investments in our loan and securities portfolio in the amount of $209.3 million;

•Payments for the PURE Canadian Gaming Transaction for a total cost of $202.7 million, including acquisition costs; and

•Payments to fund the Caruthersville Property Growth Fund investment in the amount of $6.1 million.

During the three months ended March 31, 2022, the primary sources and uses of cash from investing activities include:

•Payments for the Venetian Acquisition for a total cost of $4,012.1 million, including acquisition costs; and

•~~Payments~~Disbursements to fund ~~a portion of the Great Wolf Mezzanine Loan~~investments in our loan and securities portfolio in the amount of $15.6 ~~million; and~~

~~During the~~ ~~three months ended March 31, 2021, the primary sources and uses of cash from investing activities include:~~

•~~Proceeds from net maturities of short-term investments of $20.0 million;~~

•~~Proceeds from partial repayment of the~~ ~~Amended and Restated~~ ~~ROV loan of $20.0 million;~~ ~~and~~

•~~Final payment of the funding of a~~ ~~new gaming patio amenity at JACK Thistledown Racino of $6.0~~ million.

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Cash Flows from Financing Activities

Net cash provided by financing activities increased ~~$3,740.8~~$2,573.7 million for the three months ended March 31, ~~2022,~~2023, compared with the three months ended March 31, ~~2021.~~2022.

During the three months ended March 31, 2023, the primary sources and uses of cash in financing activities included:

•Net proceeds of $1,272.3 million from the issuance of an aggregate 40,592,592 shares of our common stock pursuant to the full physical settlement of the November 2022 Forward Sale Agreements, the June 2022 ATM Forward Sale Agreement, August 2022 ATM Forward Sale Agreement and December 2022 ATM Forward Sale Agreement;

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•Dividend payments of $382.6 million;

•Draw of $352.7 million on our Revolving Credit Facility;

•Repayment of $250.0 million on our Revolving Credit Facility;

•Repurchase of shares of common stock for tax withholding in connection with the vesting of employee stock compensation of $4.6 million; and

•Distributions of $2.3 million to non-controlling interests.

During the three months ended March 31, 2022, the primary sources and uses of cash infrom financing activities included:

•Net proceeds from the sale of an aggregate of $3,219.1 million of our common stock pursuant to the full physical settlement of the September 2021 Forward Sale Agreements and March 2021 Forward Sale Agreements;

•Initial draw of $600.0 million on our Revolving Credit Facility;

•Dividend payments of $227.9 million;

•Debt issuance costs of $27.3 million;

•Repurchase of stock for tax withholding in connection with the vesting of employee stock compensation of $2.7 million; and

•Distributions of $2.1 million to non-controlling interest.

~~During the three months ended March 31, 2021, the primary sources and uses of cash from financing activities included:~~

•~~Dividend payments of $178.0 million;~~

•~~Distributions of $2.1 million to non-controlling interest; and~~

•~~Repurchase of stock for tax withholding in connection with the vesting of employee stock compensation of $1.5 million.~~

Debt

For a summary of our debt obligations as of March 31, ~~2022,~~2023, refer to Note 7 - Debt.

Covenants

Our debt obligations are subject to certain customary financial and protective covenants that restrict our ability to incur additional debt, sell certain asset and restrict certain payments, among other things. In addition, these covenants are subject to a number of important exceptions and qualifications, including, with respect to the restricted payments covenant, the ability to make unlimited restricted payments to maintain our REIT status. At March 31, ~~2022,~~2023, we were in compliance with all debt-related covenants.

Distribution Policy

We intend to make regular quarterly distributions to holders of shares of our common stock. Dividends declared (on a per share basis) during the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 were as follows:

Three Months Ended March 31, 2023

Declaration Date

Record Date

Payment Date

Period

Dividend

March 9, 2023

March 23, 2023

April 6, 2023

January 1, 2023 - March 31, 2023

0.3900

Three Months Ended March 31, 2022

Declaration Date

Record Date

Payment Date

Period

Dividend

March 10, 2022

March 24, 2022

April 7, 2022

January 1, 2022 - March 31, 2022

0.3600

~~Three Months Ended March 31, 2021~~

~~Declaration Date~~

~~Record Date~~

~~Payment Date~~

~~Period~~

~~Dividend~~

~~March 11, 2021~~

~~March 25, 2021~~

~~April 8, 2021~~

~~January 1, 2021 - March 31, 2021~~

~~0.3300~~

Federal income tax law requires that a REIT distribute annually at least 90% of its REIT taxable income (with certain adjustments), determined without regard to the dividends paid deduction and excluding any net capital gains, and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100% of its REIT taxable income, determined without regard to the dividends paid deduction and including any net capital gains. In addition, a REIT will be required to pay a 4% nondeductible excise tax on the amount, if any, by which the distributions it makes in a calendar year are less than the sum of 85% of its ordinary income, 95% of its capital gain net income and 100% of its undistributed income from prior years.

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We intend to continue to make distributions to our stockholders to comply with the REIT requirements of the Internal Revenue Code of 1986, as amended (the “Code”), and to avoid or otherwise minimize paying entity level federal income or excise tax (other than at any TRS of ours). We may generate taxable income greater than our income for financial reporting purposes

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prepared in accordance with GAAP. Further, we may generate REIT taxable income greater than our cash flow from operations after operating expenses and debt service as a result of differences in timing between the recognition of REIT taxable income and the actual receipt of cash or the effect of nondeductible capital expenditures, the creation of reserves or required debt or amortization payments.

Critical Accounting Policies and Estimates

A complete discussion of our critical accounting policies and estimates is included in our Annual Report on Form 10-K for the year ended December 31, ~~202~~1 ~~and VICI LP’s Management’s Discussion and Analysis of Financial Condition and Results of Operations included as an~~ ~~exhibit to the Current Report on Form 8-K filed on~~ ~~April~~18 , 2022. There have been no significant changes in our critical policies and estimates for the three months ended March 31, ~~2022.~~2023.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Our interest rate risk management objective is to limit the impact of future interest rate changes on our earnings and cash flows. To achieve this objective, our consolidated subsidiaries primarily borrow on a fixed-rate basis for longer-term debt issuances. As of March 31, ~~2022,~~2023, we had ~~$5,350.0 million~~$17.1 billion aggregate principal amount of outstanding indebtedness, of which ~~$4,750.0 million~~99.4% has fixed rate ~~interest.~~interest and 0.6% has a variable interest rate, representing the US$103.6 million (denominated in CAD) outstanding under our Revolving Credit Facility.

Additionally, we are exposed to interest rate risk between the time we enter into a transaction and the time we finance the related transaction with long-term fixed-rate debt. In addition, when that long-term debt matures, we may have to refinance ~~the real estate~~such debt at a higher interest rate. In a rising interest rate environment, we have from time to time and may in the future seek to mitigate that risk by utilizing forward-starting interest rate swap agreements, treasury locks and other derivative instruments. Market interest rates are sensitive to many factors that are beyond our control.

Capital Markets Risks

We are exposed to risks related to the equity capital markets, and our related ability to raise capital through the issuance of our common stock or other equity instruments. We are also exposed to risks related to the debt capital markets, and our related ability to finance our business through long-term indebtedness, borrowings under credit facilities or other debt instruments. As a REIT, we are required to distribute a significant portion of our taxable income annually, which constrains our ability to accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business. We seek to mitigate these risks by monitoring the debt and equity capital markets to inform our decisions on the amount, timing, and terms of capital we raise.

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Item 4. Controls and Procedures

VICI Properties Inc.

Evaluation of Disclosure Controls and Procedures

VICI maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the specified time periods, and is accumulated and communicated to VICI’s management, including VICI’s principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

VICI’s management has evaluated, under the supervision and with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) as of the end of the period covered by this report. Based upon this evaluation, VICI’s principal executive officer and principal financial officer concluded that VICI’s disclosure controls and procedures were effective as of the end of the period covered by this report.

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Changes in Internal Control Over Financial Reporting

There have been no changes in VICI’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended March 31, ~~2022,~~2023, that have materially affected, or are reasonably likely to materially affect, VICI’s internal control over financial reporting.

VICI Properties L.P.

Evaluation of Disclosure Controls and Procedures

VICI LP maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the ~~Securities~~ Exchange ~~Act of 1934, as amended (the “Exchange Act”))~~Act) designed to provide reasonable assurance that information required to be disclosed in reports filed under the Exchange Act is recorded, processed, summarized and reported within the specified time periods, and is accumulated and communicated to our management, including VICI LP’s principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

VICI LP’s management has evaluated, under the supervision and with the participation of VICI LP’s principal executive officer and principal financial officer, the effectiveness of VIC LP’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) as of the end of the period covered by this report. Based upon this evaluation, VICI LP’s principal executive officer and principal financial officer concluded that VICI LP’s disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control Over Financial Reporting

There have been no changes in VICI LP’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the three months ended March 31, ~~2022,~~2023, that have materially affected, or are reasonably likely to materially affect, VICI LP’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

The information contained under the heading “Litigation” in Note 10 - Commitments and Contingent Liabilities to our Financial Statements included in this report is incorporated by reference into this Item 1.

Item 1A. Risk Factors

A description of certain factors that may affect our future results and risk factors is set forth in our Annual Report on Form 10-K for the year ended December 31, ~~202~~12022. There have been no material changes to those factors for the three months ended March 31, ~~2022.~~2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

(b) Use of Proceeds from Registered Securities

Not applicable.

VICI Properties Inc.

During the three months ended March 31, ~~2022,~~2023, certain employees surrendered shares of common stock owned by them to VICI to satisfy their statutory minimum federal and state income tax obligations associated with the vesting of performance-based restricted stock units and shares of restricted common stock issued under our stock incentive plan. The following table summarizes such common stock repurchases during the three months ended March 31, ~~2022:~~2023:

Period Total Number of Shares Purchased
Average Price Paid per Share (1)
Total Number Of Shares Purchased As Part Of
Publicly Announced Plans Or Programs Maximum Number Of Shares That
May Yet Be Purchased Under The Plans Or Programs
January 1, 2022 through January 31, 2022 1,770 $ 28.54 — —
February 1, 2022 through February 28, 2022 92,473 28.77 — —
March 1, 2022 through March 31, 2022 — — — —
Total 94,243 $ 28.77 — —


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs	Maximum Number Of Shares That May Yet Be Purchased Under The Plans Or Programs
January 1, 2023 through January 31, 2023	—	$	—	—	—
February 1, 2023 through February 28, 2023 (1)	136,078	33.77		—	—
March 1, 2023 through March 31, 2023	—	—		—	—
Total	136,078	$	33.77	—	—

__________________________

(1) All shares of common stock were surrendered by certain employees to VICI to satisfy their statutory minimum federal and state income tax obligations associated with the vesting of performance-based restricted stock units and shares of restricted common stock issued under our stock incentive plan.

VICI Properties L.P.

During the three months ended March 31, ~~2022,~~2023, VICI LP did not repurchase any equity securities registered pursuant to Section 12 of the Exchange Act.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

Not applicable.

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Item 5.Other Information

None.

Item 6.Exhibits

Incorporated by Reference
Exhibit
Number Exhibit Description Filed Herewith Form Exhibit Filing Date
10.1
Credit Agreement, dated as of February 8, 2022, by and among VICI Properties L.P., as Borrower, the financial institutions party thereto as lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent .
8-K 10.1 2/9/2022
31.1
VICI Properties Inc. Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
31.2
VICI Properties Inc. Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
31.3
VICI Properties L.P. Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
31.4
VICI Properties L.P. Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
X
32.1
VICI Properties Inc. Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*
32.2
VICI Properties Inc. Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*
32.3
VICI Properties L.P. Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*
32.4
VICI Properties L.P. Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*
101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document X
101.SCH XBRL Taxonomy Extension Schema Document X
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document X
101.DEF XBRL Taxonomy Extension Definition Linkbase Document X
101.LAB XBRL Taxonomy Extension Label Linkbase Document X
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document X
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Incorporated by Reference

Exhibit
Number

Exhibit Description

Filed Herewith

Form

Exhibit

Filing Date

10.1

Twelfth Amendment to Regional Lease, dated as of April 7, 2023, by and among the entities listed on Schedules A and B thereto

31.1

VICI Properties Inc. Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

VICI Properties Inc. Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.3

VICI Properties L.P. Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.4

VICI Properties L.P. Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

VICI Properties Inc. Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

VICI Properties Inc. Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.3

VICI Properties L.P. Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.4

VICI Properties L.P. Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Furnished herewith

7067

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

VICI PROPERTIES INC.

Signature

Title

Date

/s/ EDWARD B. PITONIAK

Chief Executive Officer and Director

May ~~4, 2022~~1, 2023

Edward B. Pitoniak

(Principal Executive Officer)

/s/ DAVID A. KIESKE

Chief Financial Officer

May ~~4, 2022~~1, 2023

David A. Kieske

(Principal Financial Officer)

/s/ GABRIEL F. WASSERMAN

Chief Accounting Officer

May ~~4, 2022~~1, 2023

Gabriel F. Wasserman

(Principal Accounting Officer)

VICI PROPERTIES L.P.

Signature

Title

Date

/s/ EDWARD B. PITONIAK

Chief Executive Officer and Director

May ~~4, 2022~~1, 2023

Edward B. Pitoniak

(Principal Executive Officer)

/s/ DAVID A. KIESKE

Chief Financial Officer

May ~~4, 2022~~1, 2023

David A. Kieske

(Principal Financial Officer)

/s/ GABRIEL F. WASSERMAN

Chief Accounting Officer

May ~~4, 2022~~1, 2023

Gabriel F. Wasserman

(Principal Accounting Officer)

7168


($ In thousands)	March 31, 2022
Investment Name	Loan Type	Principal Balance		Carrying Value(1)		Future Funding Commitments(2)		Interest Rate(3)		Final Maturity(4)
Forum Convention Center Mortgage Loan	Senior Secured	$	400,000	$	400,033	$	—	7.9	%	9/18/2025
Chelsea Piers Mortgage Loan	Senior Secured	65,000		64,998		15,000		7.0	%	8/31/2027
Great Wolf Mezzanine Loan	Mezzanine	49,173		48,097		30,327		8.0	%	7/9/2026
Total		$	514,173	$	513,128	$	45,327	7.8	%


Period	Total Number of Shares Purchased	Average Price Paid per Share (1)		Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs	Maximum Number Of Shares That May Yet Be Purchased Under The Plans Or Programs
January 1, 2022 through January 31, 2022	1,770	$	28.54	—	—
February 1, 2022 through February 28, 2022	92,473	28.77		—	—
March 1, 2022 through March 31, 2022	—	—		—	—
Total	94,243	$	28.77	—	—