VICI(VICI) - 2024 Q2 - Quarterly Results

Financial & Operating Highlights VICI Properties reported strong Q2 2024 results with a 6.6% year-over-year increase in total revenues to $957.0 million. Key strategic moves included committing up to $950.0 million in capital, notably a $700 million investment in The Venetian Resort and a $250 million mezzanine loan to Great Wolf Resorts. This performance led to an increase in the full-year 2024 AFFO guidance Q2 2024 Key Financial Metrics (Year-over-Year) | Metric | Q2 2024 (in millions) | YoY Change | | :--- | :--- | :--- | | Total Revenues | $957.0 million | +6.6% | | Net Income (to common stockholders) | $741.3 million | +7.3% | | Diluted Net Income per Share | $0.71 | +3.7% | | AFFO (to common stockholders) | $592.4 million | +9.6% | | Diluted AFFO per Share | $0.57 | +5.9% | - Announced a significant capital investment of up to $700.0 million in The Venetian Resort Las Vegas through the Partner Property Growth Fund for extensive reinvestment projects[2][3] - Originated a $250 million mezzanine loan for Great Wolf Resorts, Inc. as part of a larger $1.55 billion financing package, showcasing the VICI Experiential Credit Solutions strategy[2][3] - Raised full-year 2024 AFFO guidance to a range of $2,350 million to $2,370 million, or $2.24 to $2.26 per diluted share[2] - Ended the quarter with a strong liquidity position, including $347.2 million in cash and cash equivalents and $681.0 million in estimated forward sale equity proceeds[2] Financial Performance For Q2 2024, total revenues grew 6.6% year-over-year to $957.0 million. Net income attributable to common stockholders increased by 7.3% to $741.3 million ($0.71 per share). Adjusted Funds from Operations (AFFO), a key metric for the company, showed robust growth of 9.6% to $592.4 million ($0.57 per share), outpacing revenue and net income growth Q2 2024 Financial Results vs. Q2 2023 | Financial Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $957.0M | $898.2M | +6.6% | | Net Income (to common stockholders) | $741.3M | $690.7M | +7.3% | | Net Income per Share (diluted) | $0.71 | $0.69 | +2.9% | | FFO (to common stockholders) | $741.3M | $690.7M | +7.3% | | FFO per Share (diluted) | $0.71 | $0.69 | +2.9% | | AFFO (to common stockholders) | $592.4M | $540.4M | +9.6% | | AFFO per Share (diluted) | $0.57 | $0.54 | +5.9% | Portfolio & Investment Activity During the second quarter, VICI executed two major capital deployment initiatives. The company committed up to $700.0 million to The Venetian Resort for property enhancements, with an initial $400.0 million to be funded in 2024, generating new rent at a 7.25% yield. Additionally, VICI originated a $250.0 million mezzanine loan to Great Wolf Resorts, recycling capital from a previous loan and demonstrating its credit solutions strategy - Announced the Venetian Capital Investment, providing up to $700.0 million for reinvestment projects. The initial $400.0 million will be funded in 2024, with rent increasing at a 7.25% yield on funded amounts[5] - Originated a $250.0 million mezzanine loan to Great Wolf Resorts with a two-year initial term. This transaction included the repayment of a prior $79.5 million loan to Great Wolf Lodge Maryland, with the remaining $170.5 million funded with cash[6][7] Balance Sheet, Liquidity & Capital Markets As of June 30, 2024, VICI maintained a robust liquidity position of approximately $3.4 billion, consisting of cash, available credit, and proceeds from forward sale agreements. Total debt stood at $17.1 billion, with net debt at $16.8 billion. The company actively managed its capital, settling 4 million shares for $115.2 million in proceeds subsequent to the quarter's end Liquidity Position as of June 30, 2024 | Component | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $347.2 million | | Estimated forward sale equity proceeds | $681.0 million | | Revolving credit facility availability | ~$2.3 billion | | Total Liquidity | ~$3.4 billion | Debt Summary as of June 30, 2024 | Debt Category | Amount (in millions) | | :--- | :--- | | Total Unsecured Debt Outstanding | $14,119.0 | | CMBS Debt Due 2032 | $3,000.0 | | Total Debt Outstanding | $17,119.0 | | Less: Cash and Cash Equivalents | ($347.2) | | Net Debt | $16,771.8 | - Subsequent to quarter end, on July 1, 2024, the Company settled 4,000,000 shares from its ATM forward sale agreements, receiving net proceeds of approximately $115.2 million[8][10] Dividends The company declared a regular quarterly cash dividend of $0.415 per share for the second quarter of 2024. The dividend was paid on July 3, 2024, to stockholders of record as of June 18, 2024, totaling approximately $432.9 million - Declared a Q2 2024 quarterly cash dividend of $0.415 per share[12] - The total dividend payment amounted to approximately $432.9 million[12] 2024 Guidance Reflecting its strong performance and recent investments, VICI raised its full-year 2024 guidance for Adjusted Funds From Operations (AFFO). The company now projects AFFO to be between $2,350 million and $2,370 million, which translates to $2.24 to $2.26 per diluted share. The company does not provide GAAP net income guidance due to the unpredictability of certain non-cash adjustments Full-Year 2024 AFFO Guidance Update | Metric | Updated Guidance (in millions) | Prior Guidance (in millions) | | :--- | :--- | :--- | | Estimated AFFO | $2,350M - $2,370M | $2,320M - $2,355M | | Estimated AFFO per diluted share | $2.24 - $2.26 | $2.22 - $2.25 | - The company does not provide guidance for GAAP net income because it cannot reasonably predict the non-cash change in allowance for credit losses, which is outside of its control[13] - Guidance does not include the impact of any pending or possible future acquisitions, dispositions, or other non-recurring transactions[14] Appendix The appendix contains definitions for non-GAAP financial measures used throughout the release, such as FFO and AFFO. It also includes the detailed unaudited consolidated financial statements as of June 30, 2024, and a comprehensive breakdown of revenue by property and lease type Non-GAAP Financial Measures - FFO (Funds From Operations) is defined consistent with Nareit's definition, starting with net income and excluding items like real estate depreciation and gains/losses from property sales[25] - AFFO (Adjusted Funds From Operations) is calculated by adjusting FFO for non-cash items such as leasing adjustments, stock-based compensation, and allowance for credit losses to provide a supplemental view of performance[26] Consolidated Financial Statements Consolidated Balance Sheet Highlights (unaudited) | (In thousands) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | $44,511,250 | $44,059,841 | | Total Liabilities | $18,384,937 | $18,402,067 | | Total Stockholders' Equity | $26,126,313 | $25,657,774 | Consolidated Statement of Operations Highlights (unaudited) | (In thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total Revenues | $957,003 | $898,158 | | Net Income | $752,753 | $701,581 | | Net Income Attributable to Common Stockholders | $741,302 | $690,702 | Reconciliation of Net Income to AFFO (unaudited) | (In thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $741,302 | $690,702 | | FFO attributable to common stockholders | $741,302 | $690,702 | | AFFO attributable to common stockholders | $592,425 | $540,407 | Revenue Breakdown Top 3 Revenue Sources - Q2 2024 (Contractual Revenue) | Lease | Revenue (in thousands) | | :--- | :--- | | MGM Master Lease | $188,632 | | Caesars Regional Master Lease | $137,624 | | Caesars Las Vegas Master Lease | $117,305 | - Total revenue for Q2 2024 of $957.0 million included $131.3 million in non-cash adjustments related to sales-type leases and lease financing receivables[35]