The paragraph is an introduction to the VICI Properties Fourth Quarter and Full Year 2024 Earnings Conference Call held on February 21, 2025. It mentions that the call is in a listen-only mode and is being recorded. Samantha Gallagher, General Counsel with VICI Properties, instructs listeners on how to access the company's earnings release and supplemental information on their website. She notes that some comments will include forward-looking statements that involve risks and uncertainties. Listeners are advised to refer to the company's SEC filings for more details on these risks. The discussion will also include non-GAAP financial measures, which are not substitutes for GAAP results, and related reconciliations can be found on their website and in their filings.

In the paragraph, Ed Pitoniak, the CEO, introduces key speakers for a call, including John Payne and David Kieske, who will discuss the company's growth activities, financial results, financing activities, and 2025 earnings guidance. Ed talks about an announcement regarding VICI's new strategic and financial partnership with Cain International and Eldridge Industries, focusing on an initial investment in the One Beverly Hills development. The partnership with Cain International began after Ed met with its CEO, Jonathan Goldstein, in London, where they found common ground in their convictions and values, particularly regarding the future of experiential industries and partnership ethics.

The paragraph describes the collaboration between Cain, VICI, and Eldridge Industries, emphasizing their shared ambition to invest in unique experiential ventures across entertainment, hospitality, wellness, and sports. Founded in 2014 by Jonathan and Todd Boehly, Cain, affiliated with Eldridge, has significant investments in iconic brands. Discussions around the development of One Beverly Hills highlighted their potential to collaborate further. The firms announced an investment in One Beverly Hills and signed a letter of intent to jointly identify and pursue future experiential investment opportunities, underscoring the development's prominence as a standout American luxury project.

The paragraph discusses a development project in Beverly Hills centered around the Aman luxury hospitality brand. It includes plans for an Aman hotel, spa, club, residential towers, and the renovation of the Beverly Hilton. Additionally, the development will feature ten acres of botanical gardens and upscale retail and dining. The project is a collaboration between Cain and Eldridge, with a focus on long-term investment and growth. The announcement marks a new partnership for the speaker's company, VICI, as they aim to expand their investment ventures in gaming and non-gaming sectors.

The paragraph highlights VICI's investments and achievements, including a $1.1 billion capital commitment for 2024 with an initial yield of 8.1%. It emphasizes the scale and quality of VICI's portfolio, particularly its Las Vegas Strip assets like the Venetian, where significant investment and innovation are underway to drive growth. The NAREIT conference showcased these assets, with observers noting the impressive quality of VICI's real estate. Additionally, Las Vegas tourism continues to hit records, with increased airline passengers and city visitation, positioning VICI's assets to capitalize on growing demand.

The paragraph discusses recent developments and investments in the real estate sector, particularly by MGM Grand, Caesars New Orleans, and Harvey's Lake Tahoe, which collectively amount to almost $1 billion. VICI emphasizes its commitment to high-quality experiences and partnerships as drivers of future growth. David Kieske then shifts the focus to VICI's financial journey, highlighting significant improvements to their balance sheet since their IPO in 2018. Initially, VICI had a challenging financial structure with high leverage and various debts, but post-emergence in 2017, they began addressing these issues, including retiring significant debts by 2020 and during the Eldorado Caesars merger.

The paragraph discusses the financial improvements and actions taken by a company after acquiring MGP. As a result, they retired secured debt and received investment-grade credit ratings from S&P, Fitch, and eventually Moody's, enhancing their access to capital. Their total debt stands at $17.1 billion, with $14.1 billion unsecured, offering liquidity in unsecured notes. Recent refinancing attracted new institutional credit investors, highlighting their strong balance sheet. They also closed a new $2.5 billion unsecured revolving credit facility, leading to $3.3 billion in total liquidity. Their net debt to EBITDA ratio is within the target range of 5 to 5.5 times.

The paragraph discusses the financial performance and future guidance of a company, emphasizing its strong balance sheet and efficient operations. The company achieved a weighted average interest rate of 4.41% and a weighted average maturity of 6.4 years for its hedge portfolio. Adjusted Funds From Operations (AFFO) per share increased to $0.57 for the quarter and $2.26 for the full year 2024, highlighting growth compared to prior periods. The company reports strong margins and low general and administrative expenses. For 2025, it projects AFFO of $2.485 billion to $2.555 billion, or $2.32 to $2.35 per share, with anticipated growth of 3.3% year-over-year. Guidance excludes impacts of unclosed transactions and other potential but unfinalized financial activities.

In this segment of a discussion from an earnings call, Anthony Paolone from JPMorgan asks about the deal flow in 2024 compared to previous years, particularly regarding real estate acquisitions. Ed Pitoniak responds, noting that 2024 did not present many opportunities for acquiring high-quality real estate properties. However, the company found value in investing further in one of their marquee properties, the Venetian, and capitalizing on highly compelling developments with partners like HomeField, Great Wolf, Canyon Ranch, Cabot, Cain, and Eldridge. Ed emphasizes the aim of financing great experiential placemakers to achieve good yields. John Payne is expected to provide further insights, particularly for what might be anticipated in 2025.

The company, initially a casino triple net lease REIT, has been expanding its portfolio, particularly in the experiential and casino gaming sectors. They are actively seeking new opportunities and partners for growth. Anthony Paolone inquires about current cash yields for various asset categories, particularly on the Las Vegas strip versus regional markets. Ed Pitoniak notes the lack of recent transactions on the strip and the uncertainty in asset pricing due to market volatility, while John Payne highlights the strength of the Las Vegas market, suggesting operators are not inclined to sell successful assets there.

In the paragraph, Caitlin Burrows from Goldman Sachs asks about the development funding versus acquisitions and the impact on future portfolio and income. Ed Pitoniak from VICI explains that they are not overly concerned about the return of invested money due to the extensive pipeline of opportunities with partners like Cain. He mentions their involvement with projects like One Beverly Hills and sees potential in partnering with Cain in various ventures, including Aman’s global growth. Pitoniak highlights their continued role as a funding partner, similar to their five-year partnership with Great Wolf.

In the conversation, Caitlin Burrows asks about the settlement of forward equity shares, specifically the time period and conditions required for settlement. David Kieske explains that the company has forward equity agreements that are typically one-year but can be extended, which is common in the industry. He mentions that the company's guidance uses the treasury stock solution method and accounts for potential dilution without considering all outstanding forwards, as they are used to fund acquisitions not included in the guidance. Ed Pitoniak adds that the methodology for the 2025 guidance remains unchanged. Caitlin acknowledges the response, and the operator then introduces the next question from Barry Jonas of Truist Securities.

In the paragraph, John Payne discusses the possibility of exercising an option to call the Caesars Forum Center at the same cap rate as their Indiana properties, emphasizing that the asset is well-regarded and strategically located next to their property in Las Vegas. The decision will depend on the asset's performance, and the opportunity is being actively considered. Barry Jonas then asks if they would consider operating casinos or other assets through a Taxable REIT Subsidiary (TRS), with Ed Pitoniak explaining that while it's theoretically possible, they're not planning to pursue such operations, particularly since TRS casinos cannot include hotel rooms due to REIT regulations. The conversation then shifts to questions from Greg McGinnis of Scotiabank.

In the interview, Ed Pitoniak discusses the competitive positioning of their partnership with Cain and Eldridge, particularly in the context of the One Beverly Hills project. While they do not intend to be long-term real estate owners at One Beverly Hills, they see potential collaboration opportunities across Cain and Eldridge's portfolio, such as with St. James Clubs, leveraging their experience with Chelsea Piers. He emphasizes a strong cultural alignment between Cain, Eldridge, and VICI, which positions them as a preferred partner for experiential investments. The nonbinding letter of intent, proposed by Todd Boehly, reflects a commitment to the partnership, despite its nonbinding nature.

In the paragraph, John Payne discusses the capital expenditure (CapEx) trends for casinos, focusing on investments in Las Vegas and regional markets. He highlights the significance of having a strong presence in Las Vegas, particularly through assets like the Venetian, which provides opportunities for growth through strategic collaborations. Payne mentions the company's significant investment of up to $700 million with the Apollo team into the Venetian and similar discussions with other operators. He notes the continuing excitement and potential for new capital investments in Las Vegas, citing Caesars Organization's recent investment exceeding a billion dollars, which presents opportunities for investors in that market.

In the paragraph, various financial activities and plans for funding are discussed during a Q&A session involving Rich Hightower from Barclays and David Kieske. Rich asks for clarification on the guidance regarding certain loan fundings not included in the AFFO (Adjusted Funds From Operations) figures. David explains that they do not include in their guidance any funding or development funding lacking an identified draw schedule. Current projects being funded include Great Wolf, Canyon Ranch Austin, and Cabot Citrus Farms, with monthly disbursements of $15-$20 million. Completion dates vary, with Great Wolf Northeast expected by May 2025, Canyon Ranch by 2026, and Citrus Farms later this year or early next year. Rich seeks further clarity on PPG funding related to the Venetian project, and David notes a total commitment of $700 million, with $400 million drawn in 2024.

The paragraph discusses financial matters related to a lease and a potential $300 million draw option, which the company has not yet committed to using. It addresses fluctuations in the allowance for credit losses on the income statement, which are non-cash and influenced primarily by economic projections from Moody's, their service provider. The fluctuations are attributed to macroeconomic factors like projected interest rates and potential tariffs rather than specific credit issues.

The paragraph is a dialogue involving several individuals discussing financial matters related to VICI, including the maturity of $1.3 billion in notes in Q2 and decisions around refinancing. David Kieske talks about expected costs for refinancing over a ten-year term. The discussion also touches on insights gained from VICI's relationship with Chelsea, noting their focus on maximizing game day revenue through optimal stadium conditions and surroundings, a strategy common among Premier League teams.

The paragraph is a conversation during a conference call where Smedes Rose from Citi asks for an update on the licensing process for full-scale casinos in New York and how it would affect MGM's property if it is not selected for a license. John Payne responds that there is ongoing news and progress, with a decision possibly expected by the end of the year. He mentions the Empire City MGM property's strong bid for a full license but admits uncertainty about what would happen if they don't get the license. Payne indicates that there seems to be more progress expected in early 2025, but the final stages are still unclear.

The paragraph discusses the appeal of the Aman luxury brand in Los Angeles, despite an already saturated market of luxury retail, housing, and hotels. Ed Pitoniak and Samantha Gallagher emphasize Aman's unique, ultra-high-end luxury status, which sets it apart in the global market. They highlight the brand's ability to successfully operate in various cities worldwide and discuss the ongoing efforts to gain understanding and recognition of Aman's distinct market position. They also mention the challenge of acquiring permits for new developments in Beverly Hills, contrasting Aman's successes in this area with LVMH's difficulties in securing entitlements for a Cheval Blanc hotel on Rodeo Drive.

In the paragraph, David Katz from Jefferies asks about the strategic implications of a new partnership on the company's total addressable market (TAM) and its impact on underwriting strategies, especially in relation to existing capital and potential expansions. Ed Pitoniak responds, expressing that while attempting to define a term for the total amount of the relationship (analogous to TAM), he emphasizes their confidence in the new partnership with Cain and Eldridge. He believes it has the potential to develop into a multibillion-dollar relationship over time, potentially leading to opportunities for owning permanent real estate.

The paragraph features a conversation about investment strategies and real estate ownership, focusing on a project in Beverly Hills. Ed Pitoniak clarifies that while there may be opportunities in various types of real estate (such as hotels, residences, retail, and food/beverage spaces) through collaborations with Cain and Eldridge, they do not anticipate owning any real estate within One Beverly Hills due to its high market value and misalignment with their investment criteria, which focuses on net leases. It highlights their strategy to build relationships and widen their total addressable market (TAM) without compromising quality.

The paragraph discusses VICI's strategic approach to real estate investments and partnerships. They compare their current investments to properties like Chelsea Piers, expressing enthusiasm for further investments. John Payne highlights how partnerships with companies like Cain and Eldridge are attracting global interest, expanding their opportunities beyond traditional gaming real estate. Ed Pitoniak emphasizes the importance of partnerships, specifically the ongoing collaboration with JPMorgan, which has been integral in developing effective capital structures for new investments. Despite having a small team, VICI leverages these partnerships to maximize their investment potential.

In the paragraph, the conversation revolves around the competitive landscape in the casino industry. John Payne mentions that while competition in the casino space has always been present due to significant interest and strong operators, their company focuses on building deep relationships to navigate this. Despite comments about increased competition in other private sectors, Payne emphasizes that in the casino space, competition has always been constant. John DeCree then asks about the quiet state of casino mergers and acquisitions (M&A), wondering if any factors beyond the volatility in the ten-year are influencing this. Payne acknowledges DeCree's points and references earlier remarks about Las Vegas but does not provide a detailed response in this segment.

The paragraph discusses the strategic considerations for investing in the gaming and hotel industry, particularly focusing on Las Vegas and regional gaming markets in the U.S. It highlights the impressive performance of assets in Las Vegas and the selective approach needed for investing in regional gaming due to increasing supply and competition. Ed Pitoniak emphasizes the importance of precision in investment decisions. John DeCree further inquires about the potential for international expansion, particularly in ultra-high-end hotels, and whether the strategy would involve direct investment or lending, similar to recent activities in California.

The paragraph discusses the potential for international market opportunities in lending and investments, particularly in the UK and Scotland, as mentioned by Samantha Gallagher. The team has thoroughly researched global markets to identify favorable jurisdictions considering tax implications for lending and acquisitions. The conversation then shifts to the gaming industry, with Chris Darling inquiring about interest in the historic horse racing segment. John Payne responds affirmatively, explaining investments in racetracks often involve adding new gambling options, such as historical racing machines or class three slot machines, to enhance facilities and potentially turn them into full-fledged casinos.

The paragraph discusses a business transition in which the management of Canadian gaming operations has shifted to a group called IGP, formed by several tribes. While the previous owner, Onex, sold the operations to IGP, the current speakers express enthusiasm about the partnership with IGP and the potential for future collaborations, both in Canada and globally. They highlight the value of operational companies (OpCos) in the market, noting that the sale demonstrates that these entities are indeed marketable and hold value in the gaming industry.

In the paragraph, Chris thanks Ed for clarification and concludes his remarks. The operator then hands the call back to Ed Pitoniak, who expresses gratitude to the participants and acknowledges that many have another call soon. Ed wishes everyone well and bids farewell, after which the operator advises participants that they can disconnect from the call.

This summary was generated with AI and may contain some inaccuracies.