VICI(US:VICI)2025-04-30 20:08Explanatory Note Combined Reporting Structure This report combines quarterly filings for VICI Properties Inc. and VICI Properties L.P., reflecting their single enterprise operation - This Form 10-Q combines reports for VICI Properties Inc. (VICI) and VICI Properties L.P. (VICI LP)7 - VICI, a REIT, is the sole general partner of VICI LP, indirectly owning approximately 98.9% of VICI OP as of March 31, 20259 - The combined reporting streamlines presentation, reflecting management's view of the business as a single enterprise1214 - Key financial statement differences between VICI and VICI LP as of March 31, 2025, include cash, equity/capital, non-controlling interests, and golf operations17 PART I. FINANCIAL INFORMATION Item 1. Financial Statements Unaudited consolidated financial statements for VICI Properties Inc. and L.P. for Q1 2025 and 2024 are presented Financial Statements of VICI Properties Inc. VICI Properties Inc. reported Q1 2025 revenues of $984.2 million and net income of $543.6 million VICI Properties Inc. - Key Financial Highlights (Q1 2025 vs Q1 2024, in Millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $984.2 | $951.5 | | Net Income to Common Stockholders | $543.6 | $590.0 | | Diluted EPS | $0.51 | $0.57 | VICI Properties Inc. - Balance Sheet Summary (in Millions) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $45,526.1 | $45,368.9 | | Total Liabilities | $18,503.4 | $18,417.1 | | Total Stockholders' Equity | $27,022.7 | $26,951.8 | - Net cash provided by operating activities increased to $591.9 million in Q1 2025 from $543.7 million in Q1 202431 - Net cash used in investing activities significantly increased to $385.6 million in Q1 2025 from $109.2 million in Q1 2024, driven by higher investments in loans and securities31 Financial Statements of VICI Properties L.P. VICI Properties L.P. reported Q1 2025 revenues of $974.6 million and net income of $547.8 million VICI Properties L.P. - Key Financial Highlights (Q1 2025 vs Q1 2024, in Millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $974.6 | $941.4 | | Net Income to Partners | $547.8 | $594.1 | | Diluted EPU | $0.51 | $0.56 | VICI Properties L.P. - Balance Sheet Summary (in Millions) | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $45,442.2 | $45,285.8 | | Total Liabilities | $18,488.2 | $18,400.9 | | Total Partners' Capital | $26,953.9 | $26,884.9 | Notes to Consolidated Financial Statements Notes detail business, accounting policies, real estate portfolio, and debt, including 93 experiential assets - The company's portfolio comprises 93 experiential assets, including 54 gaming properties, under long-term triple-net leases51 - The total allowance for credit losses (CECL) increased to $1,774.0 million as of March 31, 2025, from $1,585.4 million at year-end 2024121 - Total debt outstanding was approximately $17.2 billion as of March 31, 2025, with $1.3 billion in new senior notes issued post-quarter to redeem 2025 maturities132138140 - Revenue from MGM and Caesars represented 38% and 36% of Q1 2025 lease revenues, respectively, highlighting tenant concentration93 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2025 financial performance, noting revenue growth and net income decline due to increased credit loss allowance - In Q1 2025, the company acquired a $300.0 million interest in a mezzanine loan for the One Beverly Hills development205 - The company secured a new $2.5 billion revolving credit facility maturing in 2029 and issued $1.3 billion in senior notes post-quarter to refinance 2025 debt207 Q1 2025 vs Q1 2024 Results of Operations (in Thousands) | Metric | Q1 2025 | Q1 2024 | Variance | | :--- | :--- | :--- | :--- | | Total Revenues | $984,204 | $951,481 | $32,723 | | Change in allowance for credit losses | $186,957 | $106,918 | $80,039 | | Net Income | $552,265 | $599,803 | ($47,538) | - As of March 31, 2025, total liquidity was approximately $3.2 billion, including cash, revolver capacity, and forward sale agreement proceeds232 Quantitative and Qualitative Disclosures About Market Risk The company manages market risks, primarily interest rate and foreign currency, with 98.6% of its debt fixed-rate - As of March 31, 2025, 98.6% of the company's $17.2 billion debt was fixed-rate, mitigating interest rate volatility257 - A 1% change in interest rates on variable-rate borrowings would impact annual cash interest expense by approximately $2.5 million257 - Foreign currency risk is managed via a natural hedge strategy, borrowing in the same currencies as foreign investments (CAD and GBP)260 Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material internal control changes - Management of both VICI Properties Inc. and VICI Properties L.P. concluded their disclosure controls and procedures were effective as of the report period end263266 - No material changes to internal control over financial reporting occurred during the quarter264267 PART II. OTHER INFORMATION Legal Proceedings As of March 31, 2025, the company is not subject to any material litigation expected to adversely affect its business - As of March 31, 2025, the company is not involved in any litigation expected to materially adversely affect its business165268 Risk Factors No material changes to the company's risk factors were reported during the quarter - No material changes to the company's risk factors occurred during the three months ended March 31, 2025269 Unregistered Sales of Equity Securities and Use of Proceeds VICI Properties Inc. repurchased 233,942 shares in Q1 2025 at $30.67 per share for employee tax obligations VICI Properties Inc. Share Repurchases Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share ($) | | :--- | :--- | :--- | | Feb 1 - Feb 28, 2025 | 233,942 | $30.67 | | Total | 233,942 | $30.67 | - Repurchased shares were surrendered by employees to satisfy minimum tax withholding obligations upon stock award vesting272 Other Information No director or officer adopted or terminated Rule 10b5-1 trading arrangements in Q1 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q1 2025276 Exhibits This section lists exhibits filed with Form 10-Q, including debt indentures, credit agreements, and officer certifications - Key exhibits include the Fourth Supplemental Indenture for April 2025 notes and the Credit Agreement for the new Revolving Credit Facility dated February 3, 2025278