Earnings Per Share and Earnings Per Unit

3 Months Ended

Mar. 31, 2022

Earnings Per Share and Earnings Per Unit

Earnings Per Share

Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, excluding net income attributable to participating securities (unvested restricted stock awards). Diluted earnings per share reflects the additional dilution for all potentially dilutive securities such as stock options, unvested restricted shares, unvested performance-based restricted shares and the shares to be issued by us upon settlement of any outstanding forward sale agreements for the period such dilutive security is outstanding. The shares issued upon settlement of any outstanding forward sale agreements, as described in Note 11 - Stockholders' Equity, are reflected in the diluted earnings per share calculations using the treasury stock method for the period outstanding prior to settlement. Under this method, the number of shares of our common stock used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares of common stock that would be issued upon full physical settlement of the shares under any outstanding forward sale agreements for the period prior to settlement over the number of shares of common stock that could be purchased by us in the market (based on the average market price during the period prior to settlement) using the proceeds receivable upon full physical settlement (based on the adjusted forward sales price immediately prior to settlement). Upon settlement of the outstanding forward sale agreements, the delivery of shares of common stock resulted in an increase in the number of shares outstanding and dilution to earnings per share.

The following tables reconcile the weighted-average shares of common stock outstanding used in the calculation of basic earnings per share to the weighted-average shares of common stock outstanding used in the calculation of diluted earnings per share:


	Three Months Ended March 31,
(In thousands)	2022	2021
Determination of shares:
Weighted-average shares of common stock outstanding	684,341	536,481
Assumed conversion of restricted stock	581	924
Assumed settlement of forward sale agreements	2,993	7,397
Diluted weighted-average shares of common stock outstanding	687,915	544,802


	Three Months Ended March 31,
(In thousands, except per share data)	2022		2021
Basic:
Net income attributable to common stockholders	$	240,383	$	269,801
Weighted-average shares of common stock outstanding	684,341		536,481
Basic EPS	$	0.35	$	0.50

Diluted:
Net income attributable to common stockholders	$	240,383	$	269,801
Diluted weighted-average shares of common stock outstanding	687,915		544,802
Diluted EPS	$	0.35	$	0.50

Earnings Per Unit

Basic earnings per unit is computed by dividing net income attributable to partners’ capital by the weighted-average number of units outstanding during the period. In accordance with the VICI LP partnership agreement, for each share of common stock issued at VICI, a corresponding unit is issued by VICI LP. Accordingly, diluted earnings per unit reflects the additional dilution for all potentially dilutive units resulting from potentially dilutive VICI stock issuances, such as options, unvested restricted stock awards, unvested performance-based restricted stock awards and the units to be issued by us upon settlement of any outstanding forward sale agreements of VICI for the period such dilutive security is outstanding. The units issuable upon settlement of any outstanding forward sale agreements of VICI are reflected in the diluted earnings per unit calculations using the treasury stock method for the period outstanding prior to settlement. Under this method, the number of units used in calculating diluted earnings per unit is deemed to be increased by the excess, if any, of the number of units that would be issued upon full physical settlement of the units under any outstanding forward sale agreements for the period prior to settlement over the number of shares of VICI common stock that could be purchased by us in the market (based on the average market price during the period prior to settlement) using the proceeds receivable upon full physical settlement (based on the adjusted forward sales price immediately prior to settlement). Upon VICI’s physical settlement of the shares of VICI common stock under the outstanding forward sale agreements, the delivery of shares of VICI common stock resulted in an increase in the number of Partnership units outstanding and resulting dilution to earnings per unit.

The following tables reconcile the weighted-average units outstanding used in the calculation of basic earnings per share to the weighted-average units outstanding used in the calculation of diluted earnings per unit:


	Three Months Ended March 31,
(In thousands)	2022	2021
Determination of units:
Weighted-average units outstanding	684,341	536,481
Assumed conversion of VICI restricted stock	581	924
Assumed settlement of VICI forward sale agreements	2,993	7,397
Diluted weighted-average units outstanding	687,915	544,802


	Three Months Ended March 31,
(In thousands, except per share data)	2022		2021
Basic:
Net income attributable to partners	$	238,347	$	268,593
Weighted-average units outstanding	684,341		536,481
Basic EPU	$	0.35	$	0.50

Diluted:
Net income attributable to partners	$	238,347	$	268,593
Weighted-average units outstanding	687,915		544,802
Diluted EPU	$	0.35	$	0.49