– Reports First Quarter Net Income of $0.33 per
diluted share –
– Reports First Quarter AFFO of $0.36 per
diluted share –
– Initiates Guidance for Full Year 2018 –
VICI Properties Inc. (NYSE:VICI) (“VICI Properties” or the
“Company”), an experiential-asset real estate investment trust,
today reported results for the quarter ended March 31, 2018.
First Quarter Highlights:
- Net revenues for the quarter ended
March 31, 2018 were $218.3 million and included $211.5 million of
rental revenues.
- Net income attributable to common
shareholders was $112.1 million, or $0.33 per diluted share, for
the quarter ended March 31, 2018.
- NAREIT-defined Funds from Operations
(“FFO”) attributable to common shareholders was $112.1 million, or
$0.33 per diluted share, for the quarter ended March 31, 2018.
- Adjusted Funds from Operations (“AFFO”)
attributable to common shareholders was $125.0 million, or $0.36
per diluted share, for the quarter ended March 31, 2018.
- On February 5, 2018, the Company
completed an initial registered public offering (“IPO”) of
69,575,000 shares of common stock at an offering price of $20.00
per share.
- On April 13, 2018, the Company paid a
pro rated quarterly cash dividend of $0.16 per share of common
stock for the period from February 5, 2018 to March 31, 2018, based
on a quarterly distribution rate of $0.2625 per share.
Transaction Subsequent to First Quarter:
- On April 24, 2018, a subsidiary of the
Company, VICI Properties 1 LLC (“VICI PropCo”) entered into
interest rate swap transactions with several global financial
institutions as counterparties. Each transaction has an effective
date of May 22, 2018 and a termination date of April 22, 2023. The
transactions have an aggregate notional amount of $1.5 billion, and
effectively fix at 2.8297% the LIBOR portion of the interest rate
on the outstanding debt under VICI PropCo’s existing credit
facility.
Edward Pitoniak, Chief Executive Officer of VICI Properties,
said, “Our first quarter of 2018 represented the next key stage in
our evolution into a best-in-class institutional-quality REIT.
Building on the transformative initiatives we undertook at the end
of 2017, on January 31st, we successfully executed the fourth
largest REIT IPO ever, by raising $1.4 billion. The transaction
enabled us to further deleverage our balance sheet and now we have
approximately $1.3 billion of dry powder to finance our
portfolio-building opportunities in an accretive manner.”
Financial Results – Quarter Ended March 31, 2018
Net revenue for the quarter ended March 31, 2018 was $218.3
million and was comprised of $211.5 million from the real property
business and $6.8 million from the golf course business. Real
property business revenue of $211.5 million was generated from rent
and reimbursements of property taxes under our leases.
Net income attributable to common shareholders was $112.1
million, or $0.33 per diluted share, for the quarter ended March
31, 2018.
FFO attributable to common shareholders was $112.1 million, or
$0.33 per diluted share, for the quarter ended March 31, 2018.
AFFO attributable to common shareholders was $125.0 million, or
$0.36 per diluted share, for the quarter ended March 31, 2018.
Balance Sheet
As of March 31, 2018, the Company had $4.1 billion in total debt
and $918.2 million in cash and cash equivalents, excluding
restricted cash of $13.8 million. The Company’s capitalization
using the face value of outstanding indebtedness as of March 31,
2018 was as follows:
(in millions) March 31, 2018
Revolving Credit Facility $ - Term Loan B Facility 2,100.0 CPLV
CMBS Debt 1,550.0 Second Lien Notes 498.5 Total debt
outstanding, face value $ 4,148.5 Cash and cash equivalents $ 918.2
In connection with the IPO, the Company raised aggregate
proceeds of $1,391.5 million, resulting in net proceeds of
approximately $1,307.0 million after underwriting discounts,
commissions and expenses. The Company utilized a portion of the net
proceeds from the IPO to:
- pay down $300.0 million of
indebtedness outstanding under the Revolving Credit Facility;
- redeem $268.4 million in aggregate
principal amount of the Second Lien Notes at a redemption price of
108% plus accrued and unpaid interest to the date of the
redemption; and
- repay $100.0 million of the Term
Loan B Facility.
Guidance
The Company is providing estimated net income and AFFO per share
guidance for the full year of 2018. The Company estimates that net
income attributable to common shareholders for the year ending
December 31, 2018 will be between $1.44 and $1.46 per diluted
share. The Company estimates AFFO per share for the year ending
December 31, 2018 will be between $1.39 and $1.41 per diluted
share.
For the Year Ending December 31,
2018: Low High Estimated net income attributable
to common shareholders per diluted share $ 1.44 $ 1.46 Estimated
real estate depreciation per diluted share - -
Estimated Funds From Operations (FFO) per diluted
share $ 1.44 $ 1.46
Estimated direct financing lease
adjustments per diluted share
(0.15 ) (0.15 )
Estimated loss on extinguishment of debt,
acquisition and transaction costs,
non-cash stock based compensation,
amortization of debt issuance costs and OID, other depreciation,
capital expenditures per diluted share
0.10
0.10
Estimated Adjusted Funds From
Operations (AFFO) 1 per diluted share
$ 1.39 $ 1.41
The estimates set forth above reflect management’s view of
current and future market conditions, including assumptions with
respect to the earnings impact of the events referenced in this
release and otherwise to be referenced during the conference call
referred to below. These estimates do not include the impact on
operating results from possible future acquisitions or
dispositions, capital markets activity, or other non-recurring
transactions. The estimates set forth above may be subject to
fluctuations as a result of several factors and there can be no
assurance that the Company’s actual results will not differ
materially from the estimates set forth above.
Conference Call and Webcast
The Company will host a conference call and audio webcast on
Friday, May 4, 2018 at 10:00 a.m. Eastern Time (ET), during which
management will discuss the first quarter results and provide
commentary on business performance. A question and answer session
with analysts and investors will follow the prepared remarks.
The conference call can be accessed by dialing 866-393-4306
(domestic) or 734-385-2616 (international). An audio replay of the
conference call will be available from 12:00 p.m. ET on May 4, 2018
through May 11, 2018 and can be accessed by dialing 855-859-2056
(domestic) or 404-537-3406 (international) and entering the
passcode 1359629.
___________________________
1
AFFO is a non-GAAP measure that is used as
a supplemental operating measure to evaluate the Company’s
operating performance. We calculate AFFO by adding or subtracting
from FFO direct financing lease adjustments, transaction costs
incurred in connection with the acquisition of real estate
investments, non-cash stock-based compensation expense,
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), impairment charges on non-real estate assets,
amortization of capitalized leasing costs and debt extinguishment
gains and losses. See Non-GAAP Financial Measures below for
additional information relating to AFFO.
A live audio webcast of the conference call will be available
through the “Investors” section of the Company’s website,
www.viciproperties.com. A replay of the webcast will be archived on
the Company’s website.
About VICI Properties
VICI Properties is an experiential real estate investment trust
that owns one of the largest portfolios of market-leading gaming,
hospitality and entertainment destinations, including the
world-renowned Caesars Palace. VICI Properties’ national,
geographically diverse portfolio consists of 20 gaming facilities
comprising over 36 million square feet and features approximately
14,500 hotel rooms and more than 150 restaurants, bars and
nightclubs. Its properties are leased to leading brands such as
Caesars, Horseshoe, Harrah’s and Bally’s, which prioritize customer
loyalty and value through great service, superior products and
constant innovation. VICI Properties also owns four championship
golf courses and 34 acres of undeveloped land adjacent to the Las
Vegas Strip. VICI Properties’ strategy is to create the nation’s
highest quality and most productive experiential real estate
portfolio. For additional information, please visit
www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,”
“estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,”
and similar expressions that do not relate to historical matters.
All statements other than statements of historical fact are
forward-looking statements. You should exercise caution in
interpreting and relying on forward-looking statements because they
involve known and unknown risks, uncertainties, and other factors
which are, in some cases, beyond the Company’s control and could
materially affect actual results, performance, or achievements.
Important risk factors that may affect the Company’s business,
results of operations and financial position are detailed from time
to time in the Company’s filings with the Securities and Exchange
Commission. Actual operating results may differ materially from
what is expressed or forecast in this press release. The Company
does not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as may be required by
applicable law.
Non-GAAP Financial Measures
This press release presents Funds From Operations (“FFO”), FFO
per diluted share, Adjusted Funds From Operations (“AFFO”), AFFO
per diluted share and Adjusted EBITDA, which are not required by,
or presented in accordance with, generally accepted accounting
principles in the United States (“GAAP”). These non-GAAP financial
measures (i) do not represent cash flow from operations as defined
by GAAP; (ii) should not be considered as an alternative to net
income as a measure of operating performance or to cash flows from
operating, investing and financing activities; and (iii) are not
alternatives to cash flow as a measure of liquidity. FFO, FFO per
diluted share, AFFO, AFFO per diluted share and Adjusted EBITDA as
calculated by the Company, may not be comparable to similarly
titled measures reported by other REITs. In addition, these
measures should not be viewed as measures of liquidity, our ability
to make cash distributions, or our ability to make interest
payments on our indebtedness. We believe FFO, FFO per diluted
share, AFFO, AFFO per diluted share and Adjusted EBITDA provide a
meaningful perspective of the underlying operating performance of
our 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 net income (or loss) (computed in accordance with
GAAP) excluding gains (or losses) from sales of property plus real
estate depreciation. AFFO is a non-GAAP measure that is used as a
supplemental operating measure to evaluate the Company’s operating
performance. We calculate AFFO by adding or subtracting from FFO
direct financing lease adjustments, transaction costs incurred in
connection with the acquisition of real estate investments,
non-cash stock-based compensation expense, 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), impairment
charges on non-real estate assets, amortization of capitalized
leasing costs and debt extinguishment gains and losses.
We define Adjusted EBITDA as net income as adjusted for gains
(or losses) from sales of property, real estate depreciation,
direct financing lease adjustments, transaction costs incurred in
connection with the acquisition of real estate investments,
non-cash stock-based compensation expense, 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), impairment
charges on non-real estate assets, amortization of capitalized
leasing costs, debt extinguishment gains and losses, provision for
income taxes and interest expense, net.
In our calculation of AFFO and Adjusted EBITDA, while we do not
label transaction costs incurred in connection with the acquisition
of real estate investments as non-recurring, infrequent, or
unusual, management believes that it is helpful to adjust for these
expenses when they do occur to allow for comparability of results
between periods because each acquisition is (and will be) of
varying size and complexity and may involve different types of
expenses depending on the type of property being acquired and from
whom.
Because not all companies calculate FFO, FFO per diluted share,
AFFO, AFFO per diluted share and Adjusted EBITDA in the same way we
do and other companies may not perform such calculations, those
measures as used by other companies may not be consistent with the
way we calculate such measures and should not be considered as an
alternative to net income as a measure of operating performance or
to cash flows from operating, investing and financing activities.
Our presentation of these measures does not replace the
presentation of our financial results in accordance with GAAP.
Reconciliations of net income to FFO, FFO per diluted share,
AFFO, AFFO per diluted share and Adjusted EBITDA are included in
this release.
VICI Properties Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
March 31, 2018
December 31, 2017
Assets Investment in direct financing leases, net $
8,281,557 $ 8,268,643 Real Estate Investments: Accounted for using
the operating method 1,110,400 1,110,400 Land 73,600 73,600
Property and equipment used in operations, net 73,739 74,300 Cash
and cash equivalents 918,215 183,646 Restricted cash 13,808 13,760
Other assets 14,920 15,363 Total assets $ 10,486,239 $ 9,739,712
Liabilities Debt, net $ 4,119,263 $ 4,785,756 Accrued
interest 25,387 21,595 Deferred financing liability 73,600 73,600
Deferred revenue 60,929 68,117 Dividends payable 59,221 - Accounts
payable and accrued expenses 9,221 10,562 Deferred income taxes
3,718 3,718 Total liabilities 4,351,339 4,963,348
Shareholders’ equity Common stock, $0.01 par value,
700,000,000 shares authorized and 370,128,832 and 300,278,938
shares issued and outstanding at March 31, 2018 and December 31,
2017, respectively 3,701 3,003 Preferred stock, $0.01 par value,
50,000,000 shares authorized, 12,000,000 shares issued and no
shares outstanding at March 31, 2018 and December 31, 2017,
respectively - - Additional paid in capital 5,952,636 4,645,824
Retained earnings 95,563 42,662 Total VICI shareholders’ equity
6,051,900 4,691,489 Non-controlling interests 83,000 84,875 Total
shareholders’ equity 6,134,900 4,776,364 Total liabilities and
shareholders’ equity $ 10,486,239 $ 9,739,712
VICI Properties Inc. Condensed Consolidated Statement of
Operations (Unaudited)
(In thousands, except share and per share
data)
Three Months Ended March 31, 2018
Revenues Earned income from direct financing leases $
182,036 Rental income from operating leases 12,209 Tenant
reimbursement of property taxes 17,243 Golf-related 6,788
Net revenues 218,276
Operating expenses
General and administrative 7,308 Depreciation 906 Property taxes
17,243 Golf-related 4,095 Total operating expenses
29,552 Operating income 188,724 Interest expense (52,875 )
Interest income 1,678 Loss from extinguishment of debt
(23,040 ) Income before taxes 114,487 Income tax expense
(384) Net income 114,103 Less: Net income attributable to
non-controlling interests (1,981 )
Net income
attributable to common shareholders $ 112,122
Weighted average number of common shares outstanding
Basic 342,900,842 Diluted 343,056,532
Common per share
data Basic earnings per common share $ 0.33 Diluted earnings
per common share $ 0.33 Dividends declared per common share
$ 0.16
VICI Properties Inc.
Reconciliation of Net Income to FFO, FFO per Diluted Share,
Adjusted FFO, Adjusted FFO per Diluted Share and Adjusted
EBITDA
(amounts in thousands, except share and
per share data)
Three Months Ended March 31, 2018 Net income
attributable to common shareholders $ 112,122 Real estate
depreciation -
Funds From Operations
(FFO) 112,122 Direct financing lease adjustments
attributable to common shareholders (12,914 ) Loss on
extinguishment of debt 23,040 Non-cash stock compensation 391
Amortization of debt issuance costs and original issue discount
1,494 Other depreciation 906
Adjusted Funds
From Operations (AFFO) 125,039 Interest expense, net
49,703 Income tax expense 384
Adjusted
EBITDA $ 175,126
Weighted average number of common shares outstanding Diluted
343,056,532
FFO per share Diluted $ 0.33
AFFO per
share Diluted $ 0.36
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180503006606/en/
Investor:Investors@viciproperties.com(725)
201-6415orICRJacques
CornetJacques.Cornet@icrinc.comorMedia:PR@viciproperties.com(725)
201-6414orICRPhil Denning, (646)
277-1258Phil.Denning@icrinc.comorJason Chudoba, (646)
277-1249Jason.Chudoba@icrinc.com
Grafico Azioni Vici Properties (NYSE:VICI)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Vici Properties (NYSE:VICI)
Storico
Da Lug 2023 a Lug 2024