Vici Properties Completes Major Acquisitions and Sees Strong Q3 Revenue Growth

Vici Properties, a major player in the real estate and casino industry, has recently completed significant acquisitions and reported strong revenue growth in the third quarter.

During the period ending on September 30, Vici finalized the acquisition of four casinos in Alberta, Canada, from Century Casinos, with a total investment of CA$221.7 million. These properties include Century Casino & Hotel Edmonton, Century Casino St Albert, Century Mile Racetrack and Casino, and Century Downs. Additionally, Vici completed its US$203.0 million acquisition of Rocky Gap Casino Resort in partnership with Century Casinos.

Vici Properties reported a revenue of $904.3 million for the third quarter, which is a significant increase from the $751.4 million in the same period of 2022. This represents steady year-on-year growth, highlighting the company's commitment to expansion and strategic financial activities.

Edward Pitoniak, Vici's CEO, emphasized that the strong performance in the third quarter aligns with their strategic plans, focusing on mergers and acquisitions and sustainable growth. He stated, "Vici’s third-quarter financial performance reflects our sustained, sustainable commitment to accretive growth and capital deployment through acquisitions and strategic financing activity, exemplified by approximately 20% revenue growth and nearly 11% growth in AFFO per share year-over-year."

Vici's adjusted funds from operations (AFFO) attributed to common stockholders reached $547.6 million, marking a substantial increase of 16.3% compared to the previous year.

The majority of Vici's income in Q3 came from sales-type leases, amounting to $500.2 million. The highest contributors to this category were Caesars' regional master lease and Joilet lease, totaling $132.9 million. Caesars' Las Vegas master lease contributed $113.6 million, followed by The Venetian Resort Las Vegas's lease at $64.3 million.

Income from lease financing receivables, loans, and securities reached $378.5 million, while other income sources amounted to $18.1 million. Golf revenues accounted for $7.4 million of the total income.

Operating expenses saw a significant reduction in Q3, totaling $139.5 million, which is a notable decrease of 48.4%. The main source of expense reduction was related to changes in allowance for credit losses, incurring costs of $95.9 million. Other expenses accounted for $18.1 million, while general and administrative expenses reached $14.4 million.

With further interest-related costs, such as interest expenses of $204.9 million, the income before income taxes stood at $566.1 million. After factoring in income tax expenses, the net income for the quarter amounted to $565.4 million, marking a substantial increase of 67.8% compared to the previous year.

For the first nine months of the year, Vici Properties reported total revenue of $2.68 billion, showing a remarkable annual increase of 46.3%. Sales-type leases contributed the most to the revenue, generating $1.47 billion.

Operating expenses for the first nine months significantly dropped by 70.3% to $290.4 million. This reduction is primarily due to a decrease in the change in allowance for credit losses. In the first three quarters of 2022, this expense was $865.4 million, whereas in the same period in 2023, it was $166.1 million.

However, interest expenses rose by 65.3% to $612.8 million year-on-year. Nonetheless, the net income for the first nine months of 2023 reached $1.79 billion, marking a substantial increase of two and a half times compared to the $521.4 million recorded in 2022. Vici Properties is poised for continued growth and success in the real estate and casino industry.