Vici Properties Doubles Net Profit to $2.51bn in 2023
Date: 2024-02-24 Author: Dima Zakharov Categories: GAMING
Vici Properties: A Banner Year in 2023
Vici Properties, a major player in the real estate sector, has disclosed an extraordinary financial performance for the fiscal year 2023. The company's net profit soared to a staggering $2.51 billion, marking a remarkable doubling compared to previous years.
Strategic Mergers and Acquisitions Drive Growth
The impressive surge in profit can be directly linked to Vici's robust mergers and acquisitions (M&A) activities throughout 2023. With a keen focus on expanding its portfolio, Vici committed a substantial $1.10 billion towards real estate acquisitions during the year.
Key highlights of Vici's strategic moves include the acquisition of eight gaming assets in Canada in collaboration with Century Casinos, amounting to $363.3 million. Additionally, Vici secured 38 bowling entertainment centers through a sale-leaseback transaction with Bowlero, and acquired a leasehold interest in Chelsea Piers, New York City, for $342.9 million.
Diverse Revenue Streams and Cost Management
Vici's revenue streams exhibited robust growth across various sectors. Sales-type leases contributed significantly, amounting to $1.98 billion, reflecting a notable increase of 35.3% from the previous year. Revenue from lease financing receivables, loans, and securities also experienced a substantial uptick, climbing by 46.0% to $1.52 billion.
Cost management played a pivotal role in enhancing profitability, with operating costs slashed by 72.2% to $990.0 million. This reduction was primarily attributed to a substantial decrease in the allowance for credit losses.
Strong Q4 Performance
The final quarter of 2023 mirrored the company's overall success, with total revenue surging by 21.0% to $931.9 million. Sales-type leases revenue experienced a notable uptick of 31.0%, reaching $506.2 million. Despite various challenges, Vici's Q4 net profit stood at $747.8 million, marking a significant increase of 23.8% from the previous year.
Vici Properties remains optimistic about its future growth trajectory, buoyed by its successful capital deployment strategies and unwavering commitment to excellence in the real estate sector.
