VICI(VICI)2025-05-01 14:00Financial Data and Key Metrics Changes - The company reported an AFFO per share of $0.58 for Q1 2025, representing a 4.3% increase compared to $0.56 for Q1 2024 [23] - The net debt to annualized first quarter adjusted EBITDA is approximately 5.3 times, within the target leverage range of 5 to 5.5 [21] - The company raised its AFFO guidance for 2025 to between $2.47 billion and $2.50 billion, or between $2.33 and $2.36 per diluted common share, indicating a year-over-year growth of 3.8% [24] Business Line Data and Key Metrics Changes - The company successfully addressed all 2025 maturities, with no debt maturing until September 2026 [20] - A bond offering was priced, issuing $400 million of three-year notes at a coupon of 4.75% and $900 million of ten-year notes at a coupon of 5.625% [20] Market Data and Key Metrics Changes - The company continues to believe in the resilience of Las Vegas, citing strong demand drivers and significant events that attract visitors [17] - Las Vegas hosted major events, such as WWE's WrestleMania, which drew nearly 125,000 fans, indicating robust market activity [17] Company Strategy and Development Direction - The company emphasizes maintaining and growing cash income distributed to stockholders in the form of dividends, which is a key focus for REIT investors [8] - A new partnership with Red Rock Resorts was established for the development of a casino on tribal land, showcasing the company's strategy of building long-term investment partnerships [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic volatility affects growth ambitions and M&A activity, but they remain focused on building relationships and investment pipelines [46] - The company is optimistic about the future of tribal gaming in California, viewing it as a growing opportunity for capital investment [78] Other Important Information - The company has approximately $3.2 billion in total liquidity, which includes cash and availability under its revolving credit facility [21] - The company maintains a low G&A ratio of 1.5% of total revenues, one of the lowest in the REIT sector [24] Q&A Session Summary Question: Can you provide more details on the new deal with Red Rock Resorts? - Management expressed confidence in the partnership, highlighting Red Rock's extensive experience and the favorable location of the new casino project [30][32] Question: How does the collateral work for the casino on tribal land? - The borrower is the tribe, with Red Rock providing a completion guarantee, and the collateral is primarily the building itself [66][69] Question: What is the company's view on tribal sale leasebacks? - Management indicated that tribal sale leasebacks remain complex, and they are still in a learning phase regarding the nuances of such deals [36] Question: Are tariffs impacting construction budgets for partners? - Management acknowledged general conditions in construction but expressed confidence in their partners' ability to manage these challenges [40][42] Question: What is the current pipeline of opportunities amid macro volatility? - Management noted that while volatility affects growth ambitions, they continue to engage with operators to explore potential opportunities [46][48] Question: How is the risk management process structured? - The company has a rigorous risk management process in place, meeting quarterly to review tenant performance and loan investments [108]