VICI Properties looking to expand in 2020
Last year, Caesars Entertainment Corp.-affiliated real estate investment trust VICI Properties added Century Casino Inc. Hard Rock International as tenants to its portfolio, doubling its roster of gaming operators.
But the company’s not done growing.
During an earnings call Thursday, executives said the REIT will continue looking for opportunities to expand in 2020.
“Operators are understanding how a REIT can help them grow their business,” said John Payne, president and COO.
That includes operators outside the gaming industry. Executives said they’re interested in working with operators that have high customer loyalty, low cyclical risks and the ability to provide services that aren’t threatened by online companies like Amazon.
One executive pointed to the theme park industry as an example of an industry that would work well with a REIT.
The company announced nearly $5 billion of acquisitions last year — including the $385 million purchase of three former Eldorado Resorts properties alongside Century Casinos.
The company is now the third largest American triple net REIT by enterprise value and saw a 15.7 jump in leasing revenue last quarter compared to the fourth quarter of 2018.
Total revenue for the year was down 0.4 percent compared with 2018 at $894.8 million, while fourth quarter revenue was $237.5 million, up 5.1 percent compared with the same period in 2018.
Net income in the fourth quarter — $98.6 million — was down 30 percent, largely due to costs associated with an early termination of the Caesars Palace Las Vegas mortgage-backed secured debt in November, amortization of debt issuance costs related to the Eldorado transaction and an increased share count in June 2019, according to regulatory filings.
The earnings call happened after markets closed. Shares of VICI Properties closed up 2.44 percent Thursday to $28.13, but were trading down 1.88 percent to $27.60 after hours.
Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.
