Vici Properties continues 2022 momentum with 110% revenue growth in Q1

Real estate investment trust Vici Properties has posted 110.7% year-over-year revenue growth to $877.6 million for the first quarter of the year. During the period, the firm announced a series of landmark deals, including the acquisition of its first gaming properties in Canada and the completion of the purchase of the remaining 49.9% stake in the MGM Grand/Mandalay Bay joint venture in Las Vegas.

Net income attributable to common stockholders increased 115.8% year-over-year to $518.7 million in Q1 and, on a per-share basis, increased 47.9% year-over-year to $0.52. AFFO attributable to common stockholders increased 73% on a yearly basis to $528.6 million and, on a per share basis, increased 18.6% to $0.53.

Back in January, the firm announced the acquisition of four gaming properties in Alberta, Canada, for approximately CAD 271.9 million ($200.8 million): PURE Casino Edmonton, PURE Casino Yellowhead, PURE Casino Calgary and PURE Casino Lethbridge. The investment, touted as a Q1 highlight, represents the company’s first international investment. 

Alberta's gaming properties acquired by Vici

As for its home market of the US, the firm closed the previously announced acquisition of the remaining 49.9% interest in the MGM Grand/Mandalay Bay joint venture. The acquisition further cements the casino landlord’s ownership of huge resorts along Las Vegas Boulevard. It called for Vici to pay around $1.27 billion in cash to financial conglomerate Blackstone and assume that firm’s share of the debt on the resorts.

Other Q1 highlights include the expansion of an existing partnership with Great Wolf Resorts through the origination of a construction loan of up to $287.9 million, and the purchase of $85 million of senior secured notes to fund the redevelopment of the Hard Rock Ottawa Casino. 

The business has also entered into a triple-net lease agreement with Cherokee Nation Businesses related to the Gold Strike Casino Resort in Mississippi, and completed a forward equity offering with an aggregate gross offering value of approximately $1 billion.

Mississippi's Gold Strike Casino Resort

Edward Pitoniak, Chief Executive Officer of Vici Properties, said: “The first quarter of 2023 continued the momentum Vici generated in 2022: expanding our platform, cultivating new and expanding existing partner relationships, and accessing liquidity opportunistically.”

“Our Q1 2023 activity highlights Vici's focus on building off of our transformative 2022 and our relentless pursuit of attractive domestic and international growth opportunities both within and outside of gaming.”

Following the strong Q1 performance, the company is now reaffirming AFFO guidance for the full year 2023. Vici estimates adjusted funds from operations for the year will be between $2,115 million and $2,155 million, or between $2.10 and $2.13 per diluted share.

See Vici's full Q1 report here.