Filing Summary | VICI PROPERTIES INC. | 10-K: Annual Report | 10-K | Dec 31, 2023

VICI Properties Inc.

VICI

Sector

Real Estate

Industry

REIT - Diversified

Market Cap

$30.48B

Employees

Company Overview

VICI Properties Inc. is a real estate investment trust (REIT) that owns a diverse portfolio of gaming, hospitality, and entertainment destinations, primarily leased to leading brands under long-term triple-net leases. The company's core business model focuses on generating stable and transparent cash flows through contractual rent escalations and strategic financing relationships. VICI's key markets include the Las Vegas Strip and other urban, destination, and regional markets across the US and Canada.

Period Ending: Dec 31, 2023

Filing Highlights

Key insights and themes extracted from this filing

10 Themes

Financial Performance

3 Insights

Total revenues increased by 38.9% year-over-year, reaching $3.6 billion.

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The company's total revenues for the year ended December 31, 2023, increased significantly compared to the previous year, indicating strong overall financial performance. This growth is driven by increases in both leasing revenue and income from loans.

Net income attributable to common stockholders increased by 124.9% year-over-year to $2.5 billion.

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The substantial increase in net income demonstrates improved profitability and efficiency in the company's operations. This is primarily due to the impact of our CECL allowance in the prior year and the timing of our transaction activity.

AFFO increased by 29.1% year-over-year to $2.2 billion, with AFFO per diluted share increasing by 11.8% to $2.15.

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The increase in AFFO, a key metric for REITs, indicates strong operational performance and cash flow generation. The growth in AFFO per share suggests improved profitability on a per-share basis.

Growth & Strategy

3 Insights

Invested over $4.1 billion to acquire 51 properties and added $291.5 million in annualized rent to the portfolio.

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Originated six debt investments totaling $698.2 million of commitments.

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Made first international property investments through the acquisition of eight gaming assets in Canada.

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Management Execution

3 Insights

Collected 100% of rent in cash.

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We are and expect to continue to be significantly dependent on our tenants for substantially all of our revenues.

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Our tenants rely on the properties they or their respective subsidiaries own and/or operate for income to satisfy their obligations.

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Risk Factors

3 Insights

We are and expect to continue to be significantly dependent on our tenants for substantially all of our revenues.

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We are dependent on the gaming industry and may be susceptible to risks associated with it.

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Because a concentrated portion of our revenues are generated from the Las Vegas Strip, we are subject to greater risks than a company that is more geographically diversified.

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Competitive Position

3 Insights

We compete for real property investments with other REITs, gaming companies, investment companies, private equity firms, hedge funds, sovereign funds, lenders and other private investors.

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The gaming industry is characterized by a high degree of competition among a large number of participants.

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Increased competition will make it more challenging to identify and successfully capitalize on acquisition opportunities that meet our investment objectives.

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Operational Efficiency

3 Insights

General and administrative expenses increased $11.3 million during the year ended December 31, 2023 compared to the year ended December 31, 2022.

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Other expenses increased $13.7 million during the year ended December 31, 2023 compared to the year ended December 31, 2022.

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Change in allowance for credit losses decreased $731.7 million during the year ended December 31, 2023 compared to the year ended December 31, 2022.

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Innovation & Technology

3 Insights

We face risks associated with cybersecurity incidents and other significant disruptions of our information technology (IT) networks and related systems or those IT networks and systems of third parties.

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Our cybersecurity and information technology (“IT”) program includes a number of safeguards, such as network segmentation, conditional analysis, external threat monitoring, access and authentication controls, incident response planning and testing of controls and procedures.

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The CISO and his related team perform regular assessments and vulnerability tests and work with other third-party service providers to perform penetration testing and periodic cyber maturity assessments on our behalf through our Enterprise Risk Management (“ERM”) framework.

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Capital Allocation

3 Insights

We expect to employ leverage in our capital structure in amounts that we determine appropriate from time to time.

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Our investment objectives are to increase cash flow from operations, achieve sustainable long-term growth and maximize stockholder value to allow for stable dividends and stock appreciation.

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We have not established a specific policy regarding the relative priority of these investment objectives.

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ESG Initiatives

3 Insights

We continue to focus on developing our efforts related to implementing and reporting on environmental sustainability efforts at our properties, including our corporate headquarters, our Golf Courses (operated by CDN Golf) and our triple-net leased portfolio.

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Our ESG Committee, comprised of employees across multiple functional areas and professional levels, including our Chief Financial Officer and General Counsel, leads our environmental sustainability initiatives (including with respect to climate change).

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Certain of our tenants at our leased properties, including Caesars and MGM, have also independently set sustainability-related targets with respect to their overall business and portfolio, which include our leased properties.

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Market Environment

3 Insights

The gaming industry is characterized by a high degree of competition among a large number of participants.

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Our tenants and the guarantors of their respective obligations, as applicable, under our lease agreements are leading gaming and experiential operators across the United States, Canada and abroad.

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Our ability to compete is also impacted by national and local economic trends, availability of investment alternatives, availability and cost of capital, construction and renovation costs, existing laws and regulations, new legislation and population trends.

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