QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(VICI Properties Inc.) | ||||||||
(VICI Properties L.P.) | ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
VICI Properties Inc. | VICI Properties L.P. |
VICI Properties Inc. | VICI Properties L.P. |
VICI Properties Inc. | VICI Properties L.P. | |||||||||||||||||||||||||
☒ | Accelerated filer | ☐ | Large Accelerated Filer | ☐ | Accelerated filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | Smaller reporting company | ||||||||||||||||||||||
Emerging growth company | Emerging growth company |
VICI Properties Inc. ☐ | VICI Properties L.P. ☐ |
VICI Properties Inc. Yes | VICI Properties L.P. Yes |
VICI PROPERTIES INC. | |||||||||||
VICI PROPERTIES L.P. | |||||||||||
FORM 10-Q | |||||||||||
FOR THE QUARTER ENDED MARCH 31, 2023 | |||||||||||
TABLE OF CONTENTS | |||||||||||
Page | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Real estate portfolio: | |||||||||||
Investments in leases - sales-type, net | $ | $ | |||||||||
Investments in leases - financing receivables, net | |||||||||||
Investments in loans and securities, net | |||||||||||
Investment in unconsolidated affiliate | |||||||||||
Land | |||||||||||
Cash and cash equivalents | |||||||||||
Short-term investments | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Debt, net | $ | $ | |||||||||
Accrued expenses and deferred revenue | |||||||||||
Dividends and distributions payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingent liabilities (Note 10) | |||||||||||
Stockholders’ equity | |||||||||||
Common stock, $ | |||||||||||
Preferred stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
Total VICI stockholders’ equity | |||||||||||
Non-controlling interests | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenues | |||||||||||
Income from sales-type leases | $ | $ | |||||||||
Income from lease financing receivables, loans and securities | |||||||||||
Other income | |||||||||||
Golf revenues | |||||||||||
Total revenues | |||||||||||
Operating expenses | |||||||||||
General and administrative | |||||||||||
Depreciation | |||||||||||
Other expenses | |||||||||||
Golf expenses | |||||||||||
Change in allowance for credit losses | |||||||||||
Transaction and acquisition expenses | ( | ||||||||||
Total operating expenses | |||||||||||
Income from unconsolidated affiliate | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Other gains (losses) | |||||||||||
Income before income taxes | |||||||||||
Income tax expense | ( | ( | |||||||||
Net income | |||||||||||
Less: Net income attributable to non-controlling interests | ( | ( | |||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Net income per common share | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average number of shares of common stock outstanding | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Other comprehensive income | |||||||||||
Net income | $ | $ | |||||||||
Reclassification of derivative gain to Interest expense | ( | ||||||||||
Unrealized (loss) gain on cash flow hedges | ( | ||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Comprehensive income | |||||||||||
Comprehensive income attributable to non-controlling interest | ( | ( | |||||||||
Comprehensive income attributable to common stockholders | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Earnings (Deficit) | Total VICI Stockholders’ Equity | Non-controlling Interests | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | ||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared ($ | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation, net of forfeitures | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Unrealized gain on cash flow hedges | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net | — | — | — | ||||||||||||||||||||||||||||||||||||||
Reallocation of equity | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Dividends and distributions declared ($ | — | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Stock-based compensation, net of forfeitures | ( | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Reclassification of derivative gain to Interest expense | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Unrealized loss on cash flow hedges | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash flows provided by operating activities: | |||||||||||
Non-cash leasing and financing adjustments | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Depreciation | |||||||||||
Amortization of debt issuance costs and original issue discount | |||||||||||
Change in allowance for credit losses | |||||||||||
Income from unconsolidated affiliate | ( | ||||||||||
Distributions from unconsolidated affiliate | |||||||||||
Foreign currency remeasurement gain | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Other assets | ( | ||||||||||
Accrued expenses and deferred revenue | ( | ( | |||||||||
Other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Net cash paid in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition | ( | ||||||||||
Investments in leases - sales-type | ( | ( | |||||||||
Investments in leases - financing receivables | ( | ||||||||||
Investments in loans and securities | ( | ( | |||||||||
Capitalized transaction costs | ( | ( | |||||||||
Maturities of short-term investments | |||||||||||
Acquisition of property and equipment | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from offering of common stock, net | |||||||||||
Proceeds from Revolving Credit Facility | |||||||||||
Repayment of Revolving Credit Facility | ( | ||||||||||
Debt issuance costs | ( | ||||||||||
Repurchase of stock for tax withholding | ( | ( | |||||||||
Distributions to non-controlling interests | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Supplemental non-cash investing and financing activity: | |||||||||||
Dividends and distributions declared, not paid | $ | $ | |||||||||
Debt issuance costs payable | $ | $ | |||||||||
Deferred transaction costs payable | $ | $ | |||||||||
Non-cash change in Investments in leases - financing receivables | $ | $ | |||||||||
Obtaining right-of-use assets in exchange for lease liabilities | $ | $ |
March 31, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Real estate portfolio: | |||||||||||
Investments in leases - sales-type, net | $ | $ | |||||||||
Investments in leases - financing receivables, net | |||||||||||
Investments in loans and securities, net | |||||||||||
Investment in unconsolidated affiliate | |||||||||||
Land | |||||||||||
Cash and cash equivalents | |||||||||||
Short-term investments | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities | |||||||||||
Debt, net | $ | $ | |||||||||
Accrued expenses and deferred revenue | |||||||||||
Distributions payable | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingent liabilities (Note 10) | |||||||||||
Partners’ Capital | |||||||||||
Partners’ capital, | |||||||||||
Accumulated other comprehensive income | |||||||||||
Total VICI LP’s capital | |||||||||||
Non-controlling interest | |||||||||||
Total capital attributable to partners | |||||||||||
Total liabilities and partners’ capital | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenues | |||||||||||
Income from sales-type leases | $ | $ | |||||||||
Income from lease financing receivables, loans and securities | |||||||||||
Other income | |||||||||||
Total revenues | |||||||||||
Operating expenses | |||||||||||
General and administrative | |||||||||||
Depreciation | |||||||||||
Other expenses | |||||||||||
Change in allowance for credit losses | |||||||||||
Transaction and acquisition expenses | ( | ||||||||||
Total operating expenses | |||||||||||
Income from unconsolidated affiliate | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Other gains (losses) | |||||||||||
Income before income taxes | |||||||||||
Income tax expense | ( | ||||||||||
Net income | |||||||||||
Less: Net income attributable to non-controlling interest | ( | ( | |||||||||
Net income attributable to partners | $ | $ | |||||||||
Net income per Partnership unit | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average number of Partnership units outstanding | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Other comprehensive income | |||||||||||
Net income attributable to partners | $ | $ | |||||||||
Reclassification of derivative gain to Interest expense | ( | ||||||||||
Unrealized (loss) gain on cash flow hedges | ( | ||||||||||
Foreign currency translation adjustments | ( | ||||||||||
Comprehensive income attributable to partners | $ | $ |
Partners’ Capital | Accumulated Other Comprehensive Income | Non-Controlling Interest | Total | ||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Net income | — | ||||||||||||||||||||||
Contributions from Parent | — | — | |||||||||||||||||||||
Distributions to Parent | ( | — | — | ( | |||||||||||||||||||
Distributions to non-controlling interest | — | — | ( | ( | |||||||||||||||||||
Stock-based compensation, net of forfeitures | — | — | |||||||||||||||||||||
Unrealized gain on cash flow hedges | — | — | |||||||||||||||||||||
Balance as of March 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | |||||||||||||||||||
Net income | — | ||||||||||||||||||||||
Contributions from Parent | — | — | |||||||||||||||||||||
Distributions to Parent | ( | — | — | ( | |||||||||||||||||||
Distributions to non-controlling interest | — | — | ( | ( | |||||||||||||||||||
Stock-based compensation, net of forfeitures | ( | — | — | ( | |||||||||||||||||||
Reclassification of derivative gain to Interest expense | — | ( | — | ( | |||||||||||||||||||
Unrealized loss on cash flow hedges | — | ( | — | ( | |||||||||||||||||||
Foreign currency translation adjustments | — | ( | — | ( | |||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to cash flows provided by operating activities: | |||||||||||
Non-cash leasing and financing adjustments | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Depreciation | |||||||||||
Amortization of debt issuance costs and original issue discount | |||||||||||
Change in allowance for credit losses | |||||||||||
Income from unconsolidated affiliate | ( | ||||||||||
Distributions from unconsolidated affiliate | |||||||||||
Foreign currency remeasurement gain | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Other assets | ( | ||||||||||
Accrued expenses and deferred revenue | ( | ( | |||||||||
Other liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities | |||||||||||
Net cash paid in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition | ( | ||||||||||
Investments in leases - sales-type | ( | ( | |||||||||
Investments in leases - financing receivables | ( | ||||||||||
Investments in loans and securities | ( | ( | |||||||||
Capitalized transaction costs | ( | ( | |||||||||
Maturities of short-term investments | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Contributions from Parent | |||||||||||
Distributions to Parent | ( | ( | |||||||||
Proceeds from Revolving Credit Facility | |||||||||||
Repayment of Revolving Credit Facility | ( | ||||||||||
Debt issuance costs | ( | ||||||||||
Repurchase of stock for tax withholding | ( | ||||||||||
Distributions to non-controlling interest | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash, beginning of period | |||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | $ | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Supplemental non-cash investing and financing activity: | |||||||||||
Distributions payable | $ | $ | |||||||||
Debt issuance costs payable | $ | $ | |||||||||
Deferred transaction costs payable | $ | $ | |||||||||
Non-cash change in Investments in leases - financing receivables | $ | $ | |||||||||
Obtaining right-of-use assets in exchange for lease liabilities | $ | $ |
(In thousands) | Amount | |||||||
Carrying value of prior | $ | |||||||
Consideration paid for MGM Grand/Mandalay Bay JV Interest Acquisition | ||||||||
Transaction costs | ||||||||
Total net assets acquired | $ |
(In thousands) | Amount | |||||||
Investments in leases - sales-type | $ | |||||||
Cash and cash equivalents (1) | ||||||||
Debt, net (3) | ( | |||||||
Accrued expenses and deferred revenue (1) | ( | |||||||
Total net assets acquired | $ |
MGP Class A common shares outstanding as of April 29, 2022 | |||||
Exchange Ratio | |||||
VICI common stock issued (1) | |||||
VICI common stock issued for MGP stock-based compensation awards | |||||
Total VICI common stock issued |
(In thousands) | Amount | |||||||
REIT Merger Consideration (1) | $ | |||||||
Redemption payment to MGM | ||||||||
VICI OP Units retained by MGM (2) | ||||||||
Repayment of MGP revolving credit facility (3) | ||||||||
Transactions costs (4) | ||||||||
Total consideration transferred | $ | |||||||
Assumption of MGP OP Notes and Exchange Notes, at principal value | ||||||||
Assumption of our proportionate share of the BREIT JV CMBS debt, at principal value | ||||||||
Total purchase price | $ |
(In thousands) | Amount | |||||||
Investments in leases - financing receivables (1) (2) | $ | |||||||
Investment in unconsolidated affiliate (2) (3) | ||||||||
Cash and cash equivalents (4) | ||||||||
Other assets (4) | ||||||||
Debt, net (5) | ( | |||||||
Accrued expenses and deferred revenue (4) | ( | |||||||
Other liabilities (4) | ( | |||||||
Total net assets acquired | $ |
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Investments in leases - sales-type, net (1) | $ | $ | |||||||||
Investments in leases - financing receivables, net (1) | |||||||||||
Total investments in leases, net | |||||||||||
Investments in loans and securities, net | |||||||||||
Investment in unconsolidated affiliate (2) | |||||||||||
Land | |||||||||||
Total real estate portfolio | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Income from sales-type leases, fixed rent | $ | $ | |||||||||
Income from sales-type leases - contingent rent (1) | |||||||||||
Income from lease financing receivables - fixed rent (2) | |||||||||||
Income from lease financing receivables - contingent rent (1) (2) | |||||||||||
Total lease revenue | |||||||||||
Non-cash adjustment (3) | ( | ( | |||||||||
Total contractual lease revenue | $ | $ |
Minimum Lease Payments (1) (2) | ||||||||||||||||||||
Investments in Leases | ||||||||||||||||||||
(In thousands) | Sales-Type | Financing Receivables | Total | |||||||||||||||||
2023 (remaining) | $ | $ | $ | |||||||||||||||||
2024 | ||||||||||||||||||||
2025 | ||||||||||||||||||||
2026 | ||||||||||||||||||||
2027 | ||||||||||||||||||||
2028 | ||||||||||||||||||||
Thereafter | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Weighted Average Lease Term (2) |
($ In thousands) | Caesars Regional Master Lease and Joliet Lease | Caesars Las Vegas Master Lease | MGM Master Lease | MGM Grand/ Mandalay Bay Lease (1) | ||||||||||||||||||||||
Lease Provision | ||||||||||||||||||||||||||
Initial term | ||||||||||||||||||||||||||
Initial term maturity | 7/31/2035 | 7/31/2035 | 4/30/2047 | 2/28/2050 | ||||||||||||||||||||||
Renewal terms | ||||||||||||||||||||||||||
Current lease year | 11/1/22 - 10/31/23 (Lease Year 6) | 11/1/22 - 10/31/23 (Lease Year 6) | 5/1/23-4/30/24 (Lease Year 2) | 3/1/23 - 2/29/24 (Lease Year 4) | ||||||||||||||||||||||
Current annual rent | $ | $ | $ | $ | ||||||||||||||||||||||
Annual escalator (3) | Lease years 2-5 - Lease years 6-end of term - CPI subject to | > | Lease years 2-10 - Lease years 11-end of term - > | Lease years 2-15 - Lease years 16-end of term - > | ||||||||||||||||||||||
Variable rent adjustment (4) | Year 8: Years 11 & 16: | Years 8, 11 & 16: | None | None | ||||||||||||||||||||||
Variable rent adjustment calculation | Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 Year 16: Avg. of years 13-15 less avg. of years 8-10 | Year 8: Avg. of years 5-7 less avg. of years 0-2 Year 11: Avg. of years 8-10 less avg. of years 5-7 Year 16: Avg. of years 13-15 less avg. of years 8-10 | None | None |
Provision | Caesars Regional Master Lease and Joliet Lease | Caesars Las Vegas Master Lease | MGM Grand/ Mandalay Bay Lease | Venetian Lease | All Other Leases (1) | ||||||||||||||||||||||||
Yearly minimum expenditure | |||||||||||||||||||||||||||||
Rolling three-year minimum (3) | $ | $ | N/A | N/A | N/A |
March 31, 2023 | ||||||||||||||||||||||||||||||||
Investment Type | Principal Balance | Carrying Value(1) | Future Funding Commitments(2) | Weighted Average Interest Rate (3) | Weighted Average Term (4) | |||||||||||||||||||||||||||
Senior Secured Notes (5) | $ | $ | $ | % | ||||||||||||||||||||||||||||
Senior Secured Loans (6) | % | |||||||||||||||||||||||||||||||
Mezzanine Loans | % | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | % |
December 31, 2022 | ||||||||||||||||||||||||||||||||
Investment Type | Principal Balance | Carrying Value(1) | Future Funding Commitments(2) | Weighted Average Interest Rate (3) | Weighted Average Term (4) | |||||||||||||||||||||||||||
Senior Secured Loans | $ | $ | $ | % | ||||||||||||||||||||||||||||
Mezzanine Loans | % | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | % |
March 31, 2023 | |||||||||||||||||||||||
($ In thousands) | Amortized Cost | Allowance (1) | Net Investment | Allowance as a % of Amortized Cost | |||||||||||||||||||
Investments in leases - sales-type | $ | $ | ( | $ | % | ||||||||||||||||||
Investments in leases - financing receivables | ( | % | |||||||||||||||||||||
Investments in loans and securities | ( | % | |||||||||||||||||||||
Other assets - sales-type sub-leases | ( | % | |||||||||||||||||||||
Totals | $ | $ | ( | $ | % |
December 31, 2022 | |||||||||||||||||||||||
($ In thousands) | Amortized Cost | Allowance (1) | Net Investment | Allowance as a % of Amortized Cost | |||||||||||||||||||
Investments in leases - sales-type | $ | $ | ( | $ | % | ||||||||||||||||||
Investments in leases - financing receivables | ( | % | |||||||||||||||||||||
Investments in loans and securities | ( | % | |||||||||||||||||||||
Other assets - sales-type sub-leases | ( | % | |||||||||||||||||||||
Totals | $ | $ | ( | $ | % |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2023 | 2022 | ||||||||||||
Beginning Balance December 31, | $ | $ | ||||||||||||
Initial allowance from current period investments | ||||||||||||||
Current period change in credit allowance | ( | |||||||||||||
Charge-offs | ||||||||||||||
Recoveries | ||||||||||||||
Ending Balance March 31, | $ | $ |
March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Ba2 | Ba3 | B1 | B2 | B3 | N/A(2) | Total | ||||||||||||||||||||||||||||||||||
Investments in leases - sales-type and financing receivable, Investments in loans and securities and Other assets (1) | $ | $ | $ | $ | $ | $ | $ |
March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Ba2 | Ba3 | B1 | B2 | B3 | N/A(2) | Total | ||||||||||||||||||||||||||||||||||
Investments in leases - sales-type and financing receivable, Investments in loans and securities and Other assets (1) | $ | $ | $ | $ | $ | $ | $ |
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Sales-type sub-leases, net (1) | $ | $ | |||||||||
Property and equipment used in operations, net | |||||||||||
Right of use assets and sub-lease right of use assets | |||||||||||
Debt financing costs | |||||||||||
Deferred acquisition costs | |||||||||||
Prepaid expenses | |||||||||||
Tenant receivables | |||||||||||
Other receivables | |||||||||||
Interest receivable | |||||||||||
Other | |||||||||||
Total other assets | $ | $ |
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Land and land improvements | $ | $ | |||||||||
Buildings and improvements | |||||||||||
Furniture and equipment | |||||||||||
Total property and equipment used in operations | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Total property and equipment used in operations, net | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Depreciation expense | $ | $ |
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Finance sub-lease liabilities | $ | $ | |||||||||
Deferred financing liabilities | |||||||||||
Lease liabilities and sub-lease liabilities | |||||||||||
CECL allowance for unfunded commitments | |||||||||||
Derivative liability | |||||||||||
Deferred income taxes | |||||||||||
Other | |||||||||||
Total other liabilities | $ | $ |
($ In thousands) | March 31, 2023 | |||||||||||||||||||||||||
Description of Debt | Maturity | Interest Rate | Principal Amount | Carrying Value (1) | ||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||
USD Borrowings (2) | 2026 | SOFR + | $ | $ | ||||||||||||||||||||||
CAD Borrowings (2) (3) | 2026 | CDOR + | ||||||||||||||||||||||||
MGM Grand/Mandalay Bay CMBS Debt (4) | 2032 | |||||||||||||||||||||||||
November 2019 Notes (5) | ||||||||||||||||||||||||||
2026 Maturity | 2026 | |||||||||||||||||||||||||
2029 Maturity | 2029 | |||||||||||||||||||||||||
February 2020 Notes (5) | ||||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2027 Maturity | 2027 | |||||||||||||||||||||||||
2030 Maturity | 2030 | |||||||||||||||||||||||||
April 2022 Notes (5) | ||||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2028 Maturity | 2028 | |||||||||||||||||||||||||
2030 Maturity | 2030 | |||||||||||||||||||||||||
2032 Maturity | 2032 | |||||||||||||||||||||||||
2052 Maturity | 2052 | |||||||||||||||||||||||||
Exchange Notes (5) | ||||||||||||||||||||||||||
2024 Maturity | 2024 | |||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2026 Maturity | 2026 | |||||||||||||||||||||||||
2027 Maturity | 2027 | |||||||||||||||||||||||||
2028 Maturity | 2028 | |||||||||||||||||||||||||
2029 Maturity | 2029 | |||||||||||||||||||||||||
MGP OP Notes (5) | ||||||||||||||||||||||||||
2024 Maturity | 2024 | |||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2026 Maturity | 2026 | |||||||||||||||||||||||||
2027 Maturity | 2027 | |||||||||||||||||||||||||
2028 Maturity | 2028 | |||||||||||||||||||||||||
2029 Maturity | 2029 | |||||||||||||||||||||||||
Total Debt | $ | $ |
($ In thousands) | December 31, 2022 | |||||||||||||||||||||||||
Description of Debt | Maturity | Interest Rate | Principal Amount | Carrying Value (1) | ||||||||||||||||||||||
Revolving Credit Facility (2)(3) | 2026 | SOFR + | $ | $ | ||||||||||||||||||||||
Delayed Draw Term Loan (8) | 2025 | SOFR + | ||||||||||||||||||||||||
November 2019 Notes (5) | ||||||||||||||||||||||||||
2026 Maturity | 2026 | |||||||||||||||||||||||||
2029 Maturity | 2029 | |||||||||||||||||||||||||
February 2020 Notes (5) | ||||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2027 Maturity | 2027 | |||||||||||||||||||||||||
2030 Maturity | 2030 | |||||||||||||||||||||||||
April 2022 Notes (5) | ||||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2028 Maturity | 2028 | |||||||||||||||||||||||||
2030 Maturity | 2030 | |||||||||||||||||||||||||
2032 Maturity | 2032 | |||||||||||||||||||||||||
2052 Maturity | 2052 | |||||||||||||||||||||||||
Exchange Notes (5) | ||||||||||||||||||||||||||
2024 Maturity | 2024 | |||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2026 Maturity | 2026 | |||||||||||||||||||||||||
2027 Maturity | 2027 | |||||||||||||||||||||||||
2028 Maturity | 2028 | |||||||||||||||||||||||||
2029 Maturity | 2029 | |||||||||||||||||||||||||
MGP OP Notes (5) | ||||||||||||||||||||||||||
2024 Maturity | 2024 | |||||||||||||||||||||||||
2025 Maturity | 2025 | |||||||||||||||||||||||||
2026 Maturity | 2026 | |||||||||||||||||||||||||
2027 Maturity | 2027 | |||||||||||||||||||||||||
2028 Maturity | 2028 | |||||||||||||||||||||||||
2029 Maturity | 2029 | |||||||||||||||||||||||||
Total Debt | $ | $ |
(In thousands) | Future Minimum Principal Payments | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total minimum principal payments | $ |
($ In thousands) | March 31, 2023 | |||||||||||||||||||||||||||||||
Instrument | Number of Instruments | Fixed Rate | Notional | Index | Maturity | |||||||||||||||||||||||||||
Forward-starting interest rate swap | $ | USD-SOFR-COMPOUND | March 6, 2034 | |||||||||||||||||||||||||||||
Forward-starting interest rate swap | $ | USD-SOFR-COMPOUND | March 6, 2034 |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Unrealized (loss) gain recorded in other comprehensive income | $ | ( | $ | ||||||||
Reduction in interest expense related to the amortization of the forward-starting interest rate swaps and treasury locks | ( |
March 31, 2023 | |||||||||||||||||||||||
(In thousands) | Fair Value | ||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
Derivative instruments - forward-starting interest rate swaps (1) | $ | $ | $ | $ | |||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
(In thousands) | Fair Value | ||||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Short-term investments (2) | $ | $ | $ | $ | |||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(In thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Investments in leases - financing receivables (1) | $ | $ | $ | $ | |||||||||||||||||||
Investments in loans and securities (2) | |||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
Debt (3) | |||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||
MGM Grand/Mandalay Bay CMBS Debt | |||||||||||||||||||||||
Senior Unsecured Notes |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Rent expense | $ | $ | |||||||||
Contractual rent |
(In thousands) | Lease Commitments | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total minimum lease commitments | $ | |||||||
Discounting factor | ||||||||
Lease liability | $ |
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
$ | $ | ||||||||||
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Rental income and expense | $ | $ | |||||||||
Contractual rent |
(In thousands) | Lease Commitments | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total minimum lease commitments | $ | |||||||
Discounting factor | ||||||||
Sub-lease liabilities | $ |
(In thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Others assets (sales-type sub-leases, net) | $ | $ | |||||||||
Other liabilities (finance sub-lease liabilities) |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Rental income and expense | $ | $ | |||||||||
Contractual rent |
(In thousands) | Lease Commitments | |||||||
2023 (remaining) | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total minimum lease commitments | $ | |||||||
Discounting factor | ||||||||
Finance sub-lease liability | $ |
(In thousands, except share and per share data) | Effective Date (1) | Total Shares Sold (2) | Public Offering Price Per Share | Aggregate Offering Value | Initial Forward Sale Price Per Share | Initial Net Value | |||||||||||||||||||||||||||||
January 2023 Offering (3) | January 18, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
(In thousands, except share and per share data) | Settlement Date | Settlement Type | Number of Shares Settled | Forward Share Price Upon Settlement | Total Net Proceeds | ||||||||||||||||||||||||
November 2022 Forward Sale Agreements | January 6, 2023 | Physical | $ | $ | |||||||||||||||||||||||||
September 2021 Forward Sale Agreements | February 18, 2022 | Physical | |||||||||||||||||||||||||||
March 2021 Forward Sale Agreements | February 18, 2022 | Physical | |||||||||||||||||||||||||||
Total | $ | $ |
(In thousands, except share and per share data) | Settlement Date | Settlement Type | Number of Shares Settled | Forward Share Price Upon Settlement | Total Net Proceeds | ||||||||||||||||||||||||
December 2022 ATM Forward Sale Agreement | January 6, 2023 | Physical | $ | $ | |||||||||||||||||||||||||
August 2022 ATM Forward Sale Agreement | January 6, 2023 | Physical | |||||||||||||||||||||||||||
June 2022 ATM Forward Sale Agreement | January 3, 2023 | Physical | |||||||||||||||||||||||||||
Total | $ | $ |
Three Months Ended March 31, | ||||||||||||||
Common Stock Outstanding | 2023 | 2022 | ||||||||||||
Beginning Balance January 1, | ||||||||||||||
Issuance of common stock upon physical settlement of forward sale agreements | ||||||||||||||
Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures | ||||||||||||||
Ending Balance March 31, |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||||||||||||||||||
March 9, 2023 | March 23, 2023 | April 6, 2023 | January 1, 2023 - March 31, 2023 | $ | ||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||||||||||||||||||
March 10, 2022 | March 24, 2022 | April 7, 2022 | January 1, 2022 - March 31, 2022 | $ | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Determination of shares: | |||||||||||
Weighted-average shares of common stock outstanding | |||||||||||
Assumed conversion of restricted stock | |||||||||||
Assumed settlement of forward sale agreements | |||||||||||
Diluted weighted-average shares of common stock outstanding |
Three Months Ended March 31, | |||||||||||
(In thousands, except per share data) | 2023 | 2022 | |||||||||
Basic: | |||||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Weighted-average shares of common stock outstanding | |||||||||||
Basic EPS | $ | $ | |||||||||
Diluted: | |||||||||||
Net income attributable to common stockholders | $ | $ | |||||||||
Diluted weighted-average shares of common stock outstanding | |||||||||||
Diluted EPS | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Determination of units: | |||||||||||
Weighted-average units outstanding | |||||||||||
Assumed conversion of VICI restricted stock | |||||||||||
Assumed settlement of VICI forward sale agreements | |||||||||||
Diluted weighted-average units outstanding |
Three Months Ended March 31, | |||||||||||
(In thousands, except per share data) | 2023 | 2022 | |||||||||
Basic: | |||||||||||
Net income attributable to partners | $ | $ | |||||||||
Weighted-average units outstanding | |||||||||||
Basic EPU | $ | $ | |||||||||
Diluted: | |||||||||||
Net income attributable to partners | $ | $ | |||||||||
Weighted-average units outstanding | |||||||||||
Diluted EPU | $ | $ |
Three Months Ended March 31, | |||||||||||
(In thousands) | 2023 | 2022 | |||||||||
Stock-based compensation expense | $ | $ |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Incentive and Time-Based Restricted Stock | Performance-Based Restricted Stock Units | ||||||||||||||||||||||
(In thousands, except per share data) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Canceled | |||||||||||||||||||||||
Outstanding at end of period | $ | $ |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||
Incentive and Time-Based Restricted Stock | Performance-Based Restricted Stock Units | ||||||||||||||||||||||
(In thousands, except per share data) | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Canceled | |||||||||||||||||||||||
Outstanding at end of period | $ | $ |
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2023 | 2022 | Variance | ||||||||||||||
Revenues | |||||||||||||||||
Income from sales-type leases | $ | 478,394 | $ | 326,735 | $ | 151,659 | |||||||||||
Income from lease financing receivables, loans and securities | 371,069 | 72,878 | 298,191 | ||||||||||||||
Other income | 18,339 | 8,386 | 9,953 | ||||||||||||||
Golf revenues | 9,845 | 8,626 | 1,219 | ||||||||||||||
Total revenues | 877,647 | 416,625 | 461,022 | ||||||||||||||
Operating expenses | |||||||||||||||||
General and administrative | 15,005 | 9,466 | 5,539 | ||||||||||||||
Depreciation | 814 | 776 | 38 | ||||||||||||||
Other expenses | 18,339 | 8,386 | 9,953 | ||||||||||||||
Golf expenses | 5,952 | 5,285 | 667 | ||||||||||||||
Change in allowance for credit losses | 111,477 | 80,820 | 30,657 | ||||||||||||||
Transaction and acquisition expenses | (958) | 755 | (1,713) | ||||||||||||||
Total operating expenses | 150,629 | 105,488 | 45,141 | ||||||||||||||
Income from unconsolidated affiliate | 1,280 | — | 1,280 | ||||||||||||||
Interest expense | (204,360) | (68,142) | (136,218) | ||||||||||||||
Interest income | 3,047 | 93 | 2,954 | ||||||||||||||
Other gains (losses) | 1,963 | — | 1,963 | ||||||||||||||
Income before income taxes | 528,948 | 243,088 | 285,860 | ||||||||||||||
Income tax expense | (1,087) | (400) | (687) | ||||||||||||||
Net income | 527,861 | 242,688 | 285,173 | ||||||||||||||
Less: Net income attributable to non-controlling interests | (9,121) | (2,305) | (6,816) | ||||||||||||||
Net income attributable to common stockholders | $ | 518,740 | $ | 240,383 | $ | 278,357 |
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2023 | 2022 | Variance | ||||||||||||||
Leasing revenue | $ | 833,232 | $ | 389,754 | $ | 443,478 | |||||||||||
Income from loans and securities | 16,231 | 9,859 | 6,372 | ||||||||||||||
Other income | 18,339 | 8,386 | 9,953 | ||||||||||||||
Golf revenues | 9,845 | 8,626 | 1,219 | ||||||||||||||
Total revenues | $ | 877,647 | $ | 416,625 | $ | 461,022 |
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2023 | 2022 | Variance | ||||||||||||||
Income from sales-type leases | $ | 478,394 | $ | 326,735 | $ | 151,659 | |||||||||||
Income from lease financing receivables (1) | 354,838 | 63,019 | 291,819 | ||||||||||||||
Total leasing revenue | 833,232 | 389,754 | 443,478 | ||||||||||||||
Non-cash adjustment (2) | (122,841) | (35,553) | (87,288) | ||||||||||||||
Total contractual leasing revenue | $ | 710,391 | $ | 354,201 | $ | 356,190 |
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2023 | 2022 | Variance | ||||||||||||||
General and administrative | $ | 15,005 | $ | 9,466 | $ | 5,539 | |||||||||||
Depreciation | 814 | 776 | 38 | ||||||||||||||
Other expenses | 18,339 | 8,386 | 9,953 | ||||||||||||||
Golf expenses | 5,952 | 5,285 | 667 | ||||||||||||||
Change in allowance for credit losses | 111,477 | 80,820 | 30,657 | ||||||||||||||
Transaction and acquisition expenses | (958) | 755 | (1,713) | ||||||||||||||
Total operating expenses | $ | 150,629 | $ | 105,488 | $ | 45,141 |
Three Months Ended March 31, | |||||||||||||||||
(In thousands) | 2023 | 2022 | Variance | ||||||||||||||
Income from unconsolidated affiliate | $ | 1,280 | $ | — | $ | 1,280 | |||||||||||
Interest expense | (204,360) | (68,142) | (136,218) | ||||||||||||||
Interest income | 3,047 | 93 | 2,954 | ||||||||||||||
Other gains (losses) | 1,963 | — | 1,963 |
Three Months Ended March 31, | |||||||||||
(In thousands, except share data and per share data) | 2023 | 2022 | |||||||||
Net income attributable to common stockholders | $ | 518,740 | $ | 240,383 | |||||||
Real estate depreciation | — | — | |||||||||
Joint venture depreciation and non-controlling interest adjustments | 1,426 | — | |||||||||
FFO attributable to common stockholders | 520,166 | 240,383 | |||||||||
Non-cash leasing and financing adjustments | (122,834) | (35,564) | |||||||||
Non-cash change in allowance for credit losses | 111,477 | 80,820 | |||||||||
Non-cash stock-based compensation | 3,467 | 2,630 | |||||||||
Transaction and acquisition expenses | (958) | 755 | |||||||||
Amortization of debt issuance costs and original issue discount | 19,682 | 15,977 | |||||||||
Other depreciation | 783 | 746 | |||||||||
Capital expenditures | (988) | (454) | |||||||||
Other (gains) losses (1) | (1,963) | — | |||||||||
Joint venture non-cash adjustments and non-controlling interest adjustments | (227) | 202 | |||||||||
AFFO attributable to common stockholders | 528,605 | 305,495 | |||||||||
Interest expense, net | 181,631 | 52,072 | |||||||||
Income tax expense | 1,087 | 400 | |||||||||
Joint venture interest expense and non-controlling interest adjustments | (1,021) | — | |||||||||
Adjusted EBITDA attributable to common stockholders | $ | 710,302 | $ | 357,967 | |||||||
Net income per common share | |||||||||||
Basic | $ | 0.52 | $ | 0.35 | |||||||
Diluted | $ | 0.52 | $ | 0.35 | |||||||
FFO per common share | |||||||||||
Basic | $ | 0.52 | $ | 0.35 | |||||||
Diluted | $ | 0.52 | $ | 0.35 | |||||||
AFFO per common share | |||||||||||
Basic | $ | 0.53 | $ | 0.45 | |||||||
Diluted | $ | 0.53 | $ | 0.44 | |||||||
Weighted average number of shares of common stock outstanding | |||||||||||
Basic | 1,001,526,645 | 684,341,045 | |||||||||
Diluted | 1,003,831,325 | 687,914,683 |
(In thousands) | March 31, 2023 | ||||
Cash and cash equivalents | $ | 247,673 | |||
Capacity under Revolving Credit Facility (1) | 2,396,428 | ||||
Proceeds available from settlement of the January 2023 Forward Sale Agreements (2) | 960,417 | ||||
Total | $ | 3,604,518 |
Payments Due By Period | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Total | 2023 (remaining) | 2024 | 2025 | 2026 | 2027 and Thereafter | |||||||||||||||||||||||||||||||||||
Long-term debt, principal | |||||||||||||||||||||||||||||||||||||||||
Senior Unsecured Notes | $ | 13,950,000 | $ | — | $ | 1,050,000 | $ | 2,050,000 | $ | 1,750,000 | $ | 9,100,000 | |||||||||||||||||||||||||||||
MGM Grand/Mandalay Bay JV CMBS Debt | 3,000,000 | — | — | — | — | 3,000,000 | |||||||||||||||||||||||||||||||||||
Revolving Credit Facility | 103,572 | — | — | — | 103,572 | — | |||||||||||||||||||||||||||||||||||
Scheduled interest payments (1) | 5,376,816 | 584,735 | 737,998 | 668,937 | 620,490 | 2,764,657 | |||||||||||||||||||||||||||||||||||
Total debt contractual obligations | 22,430,388 | 584,735 | 1,787,998 | 2,718,937 | 2,474,062 | 14,864,657 | |||||||||||||||||||||||||||||||||||
Leases and contracts | |||||||||||||||||||||||||||||||||||||||||
Future funding commitments – loan investments and Partner Property Growth Fund (2) | 1,012,809 | 499,786 | 457,260 | 47,263 | — | 8,500 | |||||||||||||||||||||||||||||||||||
Golf course operating lease and contractual commitments | 43,673 | 1,553 | 2,112 | 2,153 | 2,197 | 35,658 | |||||||||||||||||||||||||||||||||||
Corporate office leases | 6,634 | 698 | 857 | 899 | 929 | 3,251 | |||||||||||||||||||||||||||||||||||
Total leases and contract obligations | 1,063,116 | 502,037 | 460,229 | 50,315 | 3,126 | 47,409 | |||||||||||||||||||||||||||||||||||
Total contractual commitments | $ | 23,493,504 | $ | 1,086,772 | $ | 2,248,227 | $ | 2,769,252 | $ | 2,477,188 | $ | 14,912,066 |
Three Months Ended March 31, | ||||||||||||||||||||
(In thousands) | 2023 | 2022 | Variance | |||||||||||||||||
Cash, cash equivalents and restricted cash | ||||||||||||||||||||
Provided by operating activities | $ | 522,033 | $ | 298,173 | $ | 223,860 | ||||||||||||||
Used in investing activities | (1,468,856) | (4,028,245) | 2,559,389 | |||||||||||||||||
Provided by financing activities | 985,489 | 3,559,160 | (2,573,671) | |||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 74 | — | 74 | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 38,740 | (170,912) | 209,652 | |||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of period | 208,933 | 739,614 | (530,681) | |||||||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 247,673 | $ | 568,702 | $ | (321,029) |
Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||||||||||||||||||
March 9, 2023 | March 23, 2023 | April 6, 2023 | January 1, 2023 - March 31, 2023 | $ | 0.3900 | |||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Date | Period | Dividend | ||||||||||||||||||||||
March 10, 2022 | March 24, 2022 | April 7, 2022 | January 1, 2022 - March 31, 2022 | $ | 0.3600 | |||||||||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs | Maximum Number Of Shares That May Yet Be Purchased Under The Plans Or Programs | ||||||||||||||||||||||
January 1, 2023 through January 31, 2023 | — | $ | — | — | — | |||||||||||||||||||||
February 1, 2023 through February 28, 2023 (1) | 136,078 | 33.77 | — | — | ||||||||||||||||||||||
March 1, 2023 through March 31, 2023 | — | — | — | — | ||||||||||||||||||||||
Total | 136,078 | $ | 33.77 | — | — |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Filed Herewith | Form | Exhibit | Filing Date | |||||||||||||||||||||||||||
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101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | X | ||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
VICI PROPERTIES INC. | ||||||||||||||
Signature | Title | Date | ||||||||||||
/s/ EDWARD B. PITONIAK | Chief Executive Officer and Director | May 1, 2023 | ||||||||||||
Edward B. Pitoniak | (Principal Executive Officer) | |||||||||||||
/s/ DAVID A. KIESKE | Chief Financial Officer | May 1, 2023 | ||||||||||||
David A. Kieske | (Principal Financial Officer) | |||||||||||||
/s/ GABRIEL F. WASSERMAN | Chief Accounting Officer | May 1, 2023 | ||||||||||||
Gabriel F. Wasserman | (Principal Accounting Officer) | |||||||||||||
VICI PROPERTIES L.P. | ||||||||||||||
Signature | Title | Date | ||||||||||||
/s/ EDWARD B. PITONIAK | Chief Executive Officer and Director | May 1, 2023 | ||||||||||||
Edward B. Pitoniak | (Principal Executive Officer) | |||||||||||||
/s/ DAVID A. KIESKE | Chief Financial Officer | May 1, 2023 | ||||||||||||
David A. Kieske | (Principal Financial Officer) | |||||||||||||
/s/ GABRIEL F. WASSERMAN | Chief Accounting Officer | May 1, 2023 | ||||||||||||
Gabriel F. Wasserman | (Principal Accounting Officer) | |||||||||||||
16216410059 Vegas Development LLC 0.4 3 0.4 |
Date: | May 1, 2023 | ||||||||||
By: | /s/ EDWARD B. PITONIAK | ||||||||||
Edward B. Pitoniak | |||||||||||
Chief Executive Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ DAVID A. KIESKE | ||||||||||
David A. Kieske | |||||||||||
Chief Financial Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ EDWARD B. PITONIAK | ||||||||||
Edward B. Pitoniak | |||||||||||
Chief Executive Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ DAVID A. KIESKE | ||||||||||
David A. Kieske | |||||||||||
Chief Financial Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ EDWARD B. PITONIAK | ||||||||||
Edward B. Pitoniak | |||||||||||
Chief Executive Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ DAVID A. KIESKE | ||||||||||
David A. Kieske | |||||||||||
Chief Financial Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ EDWARD B. PITONIAK | ||||||||||
Edward B. Pitoniak | |||||||||||
Chief Executive Officer |
Date: | May 1, 2023 | ||||||||||
By: | /s/ DAVID A. KIESKE | ||||||||||
David A. Kieske | |||||||||||
Chief Financial Officer |
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VICI PROPERTIES INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) |
Mar. 31, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|
Real estate portfolio: | ||||
Investments in leases - sales-type, net | $ 22,579,820,000 | $ 17,172,325,000 | ||
Investment in unconsolidated affiliate | 0 | 1,460,775,000 | ||
Land | 153,560,000 | 153,560,000 | ||
Cash and cash equivalents | 247,673,000 | 208,933,000 | ||
Short-term investments | 0 | 217,342,000 | ||
Other assets | 934,049,000 | 936,328,000 | ||
Total assets | 41,852,813,000 | 37,575,826,000 | ||
Liabilities | ||||
Debt, net | 16,606,240,000 | 13,739,675,000 | ||
Accrued expenses and deferred revenue | 221,283,000 | 213,388,000 | ||
Dividends and distributions payable | 396,212,000 | 380,178,000 | ||
Other liabilities | 954,543,000 | 952,472,000 | ||
Total liabilities | 18,178,278,000 | 15,285,713,000 | ||
Commitments and contingent liabilities (Note 10) | ||||
Stockholders’ equity | ||||
Common stock, $0.01 par value, 1,350,000,000 shares authorized and 1,004,204,918 and 963,096,563 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 10,042,000 | 9,631,000 | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized and no shares outstanding at March 31, 2023 and December 31, 2022 | 0 | 0 | ||
Additional paid-in capital | 22,910,509,000 | 21,645,499,000 | ||
Accumulated other comprehensive income | 170,441,000 | 185,353,000 | ||
Retained earnings | 220,254,000 | 93,154,000 | ||
Total VICI stockholders’ equity | 23,311,246,000 | 21,933,637,000 | ||
Non-controlling interests | 363,289,000 | 356,476,000 | ||
Total stockholders’ equity | 23,674,535,000 | 22,290,113,000 | ||
Total liabilities and stockholders’ equity | 41,852,813,000 | 37,575,826,000 | ||
Investments in leases - financing receivables, net | ||||
Real estate portfolio: | ||||
Notes receivable | [1] | 17,051,187,000 | 16,740,770,000 | |
Investments in loans and securities, net | ||||
Real estate portfolio: | ||||
Notes receivable | [1] | $ 886,524,000 | $ 685,793,000 | |
|
VICI PROPERTIES INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,350,000,000 | 1,350,000,000 |
Common stock, shares issued (in shares) | 1,004,204,918 | 963,096,563 |
Common stock, shares outstanding (in shares) | 1,004,204,918 | 963,096,563 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Sales-type and direct financing, allowance for credit losses | $ 716,604 | $ 570,387 |
Other assets (sales-type sub-leases), allowance for credit losses | 16,971 | 19,750 |
Investments in leases - financing receivables, net | ||
Allowance for credit losses | 689,503 | 726,707 |
Investments in loans and securities, net | ||
Allowance for credit losses | $ 15,723 | $ 6,865 |
VICI PROPERTIES INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Total VICI Stockholders’ Equity |
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income |
Retained Earnings (Deficit) |
Non-controlling Interests |
---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2021 | $ 12,187,174 | $ 12,108,268 | $ 6,289 | $ 11,755,069 | $ 884 | $ 346,026 | $ 78,906 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 242,688 | 240,383 | 240,383 | 2,305 | |||
Issuance of common stock, net | 3,218,097 | 3,218,097 | 1,190 | 3,216,907 | |||
Dividends and distributions declared | (272,703) | (270,600) | (270,600) | (2,103) | |||
Stock-based compensation, net of forfeitures | (81) | (81) | 5 | (86) | |||
Reclassification of derivative gain to Interest expense | 0 | ||||||
Unrealized (loss) gain on cash flow hedges | 108,611 | 108,611 | 108,611 | ||||
Foreign currency translation adjustments | 0 | ||||||
Ending balance at Mar. 31, 2022 | 15,483,786 | 15,404,678 | 7,484 | 14,971,890 | 109,495 | 315,809 | 79,108 |
Beginning balance at Dec. 31, 2022 | 22,290,113 | 21,933,637 | 9,631 | 21,645,499 | 185,353 | 93,154 | 356,476 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 527,861 | 518,740 | 518,740 | 9,121 | |||
Issuance of common stock, net | 1,271,472 | 1,271,472 | 406 | 1,271,066 | |||
Reallocation of equity | 0 | (4,936) | (4,936) | 0 | 4,936 | ||
Dividends and distributions declared | (398,688) | (391,640) | (391,640) | (7,048) | |||
Stock-based compensation, net of forfeitures | (1,129) | (1,115) | 5 | (1,120) | (14) | ||
Reclassification of derivative gain to Interest expense | (6,037) | (5,964) | (5,964) | (73) | |||
Unrealized (loss) gain on cash flow hedges | (7,393) | (7,304) | (7,304) | (89) | |||
Foreign currency translation adjustments | (1,664) | (1,644) | (1,644) | (20) | |||
Ending balance at Mar. 31, 2023 | $ 23,674,535 | $ 23,311,246 | $ 10,042 | $ 22,910,509 | $ 170,441 | $ 220,254 | $ 363,289 |
VICI PROPERTIES INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.3900 | $ 0.3600 |
VICI PROPERTIES L.P. CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) |
Mar. 31, 2023 |
Dec. 31, 2022 |
||||
---|---|---|---|---|---|---|
Real estate portfolio: | ||||||
Investments in leases - sales-type, net | $ 22,579,820,000 | $ 17,172,325,000 | ||||
Investment in unconsolidated affiliate | 0 | 1,460,775,000 | ||||
Land | 153,560,000 | 153,560,000 | ||||
Cash and cash equivalents | 247,673,000 | 208,933,000 | ||||
Short-term investments | 0 | 217,342,000 | ||||
Other assets | 934,049,000 | 936,328,000 | ||||
Total assets | 41,852,813,000 | 37,575,826,000 | ||||
Liabilities | ||||||
Debt, net | 16,606,240,000 | 13,739,675,000 | ||||
Accrued expenses and deferred revenue | 221,283,000 | 213,388,000 | ||||
Distributions payable | 396,212,000 | 380,178,000 | ||||
Other liabilities | 954,543,000 | 952,472,000 | ||||
Total liabilities | 18,178,278,000 | 15,285,713,000 | ||||
Commitments and contingent liabilities (Note 10) | ||||||
Partners’ Capital | ||||||
Accumulated other comprehensive income | 170,441,000 | 185,353,000 | ||||
Total liabilities and stockholders’ equity | 41,852,813,000 | 37,575,826,000 | ||||
VICI Properties LP | ||||||
Real estate portfolio: | ||||||
Investments in leases - sales-type, net | 22,579,820,000 | 17,172,325,000 | ||||
Investment in unconsolidated affiliate | 0 | 1,460,775,000 | ||||
Land | 153,560,000 | 153,560,000 | ||||
Cash and cash equivalents | 201,002,000 | 142,600,000 | ||||
Short-term investments | 0 | 217,342,000 | ||||
Other assets | 852,072,000 | 856,605,000 | ||||
Total assets | 41,724,165,000 | 37,429,770,000 | ||||
Liabilities | ||||||
Debt, net | 16,606,240,000 | 13,739,675,000 | ||||
Accrued expenses and deferred revenue | 214,966,000 | 206,643,000 | ||||
Distributions payable | 396,813,000 | 380,581,000 | ||||
Other liabilities | 939,792,000 | 937,655,000 | ||||
Total liabilities | 18,157,811,000 | 15,264,554,000 | ||||
Commitments and contingent liabilities (Note 10) | ||||||
Partners’ Capital | ||||||
Partners’ capital, 1,016,436,291 and 975,327,936 operating partnership units issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 23,316,182,000 | 21,900,511,000 | ||||
Accumulated other comprehensive income | 170,107,000 | 185,201,000 | ||||
Total VICI LP’s capital | 23,486,289,000 | 22,085,712,000 | ||||
Non-controlling interest | 80,065,000 | 79,504,000 | ||||
Total capital attributable to partners | 23,566,354,000 | 22,165,216,000 | ||||
Total liabilities and stockholders’ equity | 41,724,165,000 | 37,429,770,000 | ||||
Investments in leases - financing receivables, net | ||||||
Real estate portfolio: | ||||||
Notes receivable | [1] | 17,051,187,000 | 16,740,770,000 | |||
Investments in leases - financing receivables, net | VICI Properties LP | ||||||
Real estate portfolio: | ||||||
Notes receivable | [2] | 17,051,187,000 | 16,740,770,000 | |||
Investments in loans and securities, net | ||||||
Real estate portfolio: | ||||||
Notes receivable | [1] | 886,524,000 | 685,793,000 | |||
Investments in loans and securities, net | VICI Properties LP | ||||||
Real estate portfolio: | ||||||
Notes receivable | [2] | $ 886,524,000 | $ 685,793,000 | |||
|
Business and Organization |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Business We are primarily engaged in the business of owning and acquiring gaming, hospitality and entertainment destinations, subject to long-term triple-net leases. As of March 31, 2023, our geographically diverse real estate portfolio consisted of 49 gaming facilities in the United States and Canada, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort. Our properties are leased to, and our tenants are, subsidiaries of, or entities managed by, Apollo, Caesars, Century Casinos, CNB, EBCI, Foundation Gaming, JACK Entertainment, MGM, PENN Entertainment, PURE Canadian Gaming and Seminole Hard Rock, with Caesars and MGM being our largest tenants. VICI also owns four championship golf courses located near certain of our properties. VICI, the parent company, is a Maryland corporation and internally managed real estate investment trust (“REIT”) for U.S. federal income tax purposes. Our real property business, which represents the substantial majority of our assets, is conducted through VICI OP and indirectly through VICI LP and our golf course business, VICI Golf, is conducted through a direct wholly owned taxable REIT subsidiary (“TRS”) of VICI. As a REIT, we generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information set forth in the Accounting Standards Codification (“ASC”), as published by the Financial Accounting Standards Board (“FASB”), and with the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements, including the notes thereto, are unaudited and condense or exclude some of the disclosures and information normally required in audited financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the accompanying unaudited Financial Statements and related notes should be read in conjunction with our audited financial statements and notes thereto included in our most recent Annual Report on Form 10-K, as updated from time to time in our other filings with the SEC. All adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Principles of Consolidation The accompanying consolidated financial statements include our accounts and the accounts of VICI LP, and the subsidiaries in which we or VICI LP has a controlling interest. All intercompany account balances and transactions have been eliminated in consolidation. We consolidate all subsidiaries in which we have a controlling financial interest and variable interest entities for which we or one of our consolidated subsidiaries is the primary beneficiary. Non-controlling Interests We present non-controlling interests and classify such interests as a component of consolidated stockholders’ equity or partners’ capital, separate from VICI stockholders’ equity and VICI LP partners’ capital. As of March 31, 2023, VICI’s non-controlling interests represent an approximate 1.2% third-party ownership of VICI OP in the form of VICI OP Units and a 20% third-party ownership of Harrah’s Joliet LandCo LLC, the entity that owns the Harrah’s Joliet facility and is the lessor under the related Joliet Lease. As VICI OP is a parent entity of VICI LP, VICI LP’s only non-controlling interest is that of third-party ownership of Harrah’s Joliet LandCo LLC. Cash, Cash Equivalents and Restricted Cash Cash consists of cash-on-hand and cash-in-bank. Any investments with an original maturity of three months or less from the date of purchase are considered cash equivalents and are carried at cost, which approximates fair value. As of March 31, 2023 and December 31, 2022, we did not have any restricted cash. Short-Term Investments Investments with an original maturity of greater than three months and less than one year from the date of purchase are considered short-term investments and are stated at fair value. We may invest our excess cash in short-term investment grade commercial paper as well as discount notes issued by government-sponsored enterprises including the Federal Home Loan Mortgage Corporation and certain of the Federal Home Loan Banks. These investments generally have original maturities between 91 and 180 days and are accounted for as available for sale securities. Interest on our short-term investments is recognized as interest income in our Statement of Operations. We had $217.3 million of short-term investments as of December 31, 2022. We did not have any short-term investments as of March 31, 2023. Purchase Price Accounting We assess all of our property acquisitions under ASC 805 - Business Combinations (“ASC 805”) to determine if such acquisitions should be accounted for as a business combination or an asset acquisition. Under ASC 805, an acquisition does not qualify as a business combination when (i) substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets, (ii) the acquisition does not include a substantive process in the form of an acquired workforce, or (iii) an acquired contract that cannot be replaced without significant cost, effort or delay. Generally, and to date, all of our acquisitions have been determined to be asset acquisitions and, in accordance with ASC 805-50, all applicable transaction costs are capitalized as part of the purchase price of the acquisition. We allocate the purchase price to the identifiable assets acquired and liabilities assumed, as applicable, using their relative fair value. Generally, with the exception of the MGP Transactions and the MGM Grand/Mandalay Bay JV Interest Acquisition (each as further described in Note 3 - Property Transactions), our acquisitions consist of properties without existing leases or debt and, accordingly, the assets acquired are comprised of land, building and site improvements. Further, since all the components of our leases are classified as sales-type leases or financing receivables, as further described below, the assets acquired are transferred into the net investment in lease or financing receivable, as applicable. Investments in Leases - Sales-type, Net We account for our investments in leases under ASC 842 “Leases” (“ASC 842”). Upon lease inception or lease modification, we assess lease classification to determine whether the lease should be classified as a direct financing, sales-type or operating lease. As required by ASC 842, we separately assess the land and building components of the property to determine the classification of each component. If the lease component is determined to be a direct financing or sales-type lease, we record a net investment in the lease, which is equal to the sum of the lease receivable and the unguaranteed residual asset, discounted at the rate implicit in the lease. Any difference between the fair value of the asset and the net investment in the lease is considered selling profit or loss and is either recognized upon execution of the lease or deferred and recognized over the life of the lease, depending on the classification of the lease. Since we purchase properties and simultaneously enter into new leases directly with the tenants, the net investment in the lease is generally equal to the purchase price of the asset, and, due to the long-term nature of our leases, the land and building components of an investment generally have the same lease classification. We have determined that the land and building components of all of the Caesars Leases (excluding the Harrah’s New Orleans, Harrah’s Laughlin and Harrah’s Atlantic City components (the “Harrah’s Call Properties”) of the Caesars Regional Master Lease), Century Master Lease, Gold Strike Lease, Hard Rock Cincinnati Lease, MGM Grand/Mandalay Bay Lease, PENN Entertainment Leases, Southern Indiana Lease and Venetian Lease meet the definition of a sales-type lease under ASC 842. Investments in Leases - Financing Receivables, Net In accordance with ASC 842, for transactions in which we enter into a contract to acquire an asset and lease it back to the seller under a lease classified as a sales-type lease (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred to us. As a result, we do not recognize the net investment in the lease but instead recognize a financial asset in accordance with ASC 310 “Receivables” (“ASC 310”); however, the accounting for the financing receivable under ASC 310 is materially consistent with the accounting for our investments in leases - sales-type under ASC 842. We determined that the land and building components of the Foundation Master Lease, Harrah’s Call Properties components of the Caesars Regional Master Lease, JACK Master Lease, MGM Master Lease and PURE Master Lease meet the definition of a sales-type lease and, since we purchased and leased the assets back to the sellers under sale leaseback transactions, control is not considered to have transferred to us under GAAP. Accordingly, such leases are accounted for as Investments in leases - financing receivables on our Balance Sheet, net of allowance for credit losses, in accordance with ASC 310. Lease Term We assess the noncancelable lease term under ASC 842, which includes any reasonably assured renewal periods. All of our Lease Agreements provide for an initial term, with multiple tenant renewal options. We have individually assessed all of our Lease Agreements and concluded that the lease term includes all of the periods covered by extension options as it is reasonably certain our tenants will renew the Lease Agreements. We believe our tenants are economically compelled to renew the Lease Agreements due to the importance of our real estate to the operation of their business, the significant capital they have invested and are required to invest in our properties under the terms of the Lease Agreements and the lack of suitable replacement assets. Income from Leases and Lease Financing Receivables We recognize the related income from our sales-type leases and lease financing receivables on an effective interest basis at a constant rate of return over the terms of the applicable leases. As a result, the cash payments accounted for under sales-type leases and lease financing receivables will not equal income from our Lease Agreements. Rather, a portion of the cash rent we receive is recorded as Income from sales-type leases or Income from lease financing receivables and loans, as applicable, in our Statement of Operations and a portion is recorded as a change to Investments in leases - sales-type, net or Investments in leases - financing receivables, net, as applicable. Initial direct costs incurred in connection with entering into investments classified as sales-type leases are included in the balance of the net investment in lease. Such amounts will be recognized as a reduction to Income from investments in leases over the life of the lease using the effective interest method. Costs that would have been incurred regardless of whether the lease was signed, such as legal fees and certain other third-party fees, are expensed as incurred to Transaction and acquisition expenses in our Statement of Operations. Loan origination fees and costs incurred in connection with entering into investments classified as lease financing receivables are included in the balance of the net investment and such amounts will be recognized as a reduction to Income from investments in loans and lease financing receivables over the life of the lease using the effective interest method. Investments in Loans and Securities, net Investments in loans are held-for-investment and are carried at historical cost, inclusive of unamortized loan origination costs and fees and allowances for credit losses. Income is recognized on an effective interest basis at a constant rate of return over the life of the related loan. We classify our investments in securities on the date of acquisition of the investment as either trading, available-for-sale or held-to-maturity. We classify our debt securities as held-to-maturity, as we have the intent and ability to hold this security until maturity, the accounting of which is materially consistent with that of our Investments in loans. Allowance for Credit Losses ASC 326 “Financial Instruments-Credit Losses” (“ASC 326”) requires that we measure and record current expected credit losses (“CECL”) for the majority of our investments, the scope of which includes our Investments in leases - sales-type, Investments in leases - financing receivables and Investments in loans and securities. We have elected to use a discounted cash flow model to estimate the Allowance for credit losses, or CECL allowance for our Investments in leases - sales-type, Investments in leases - financing receivables and certain of our loans and securities, which comprise the substantial majority of our CECL allowance. This model requires us to develop cash flows which project estimated credit losses over the life of the lease, loan or security and discount these cash flows at the asset’s effective interest rate. We then record a CECL allowance equal to the difference between the amortized cost basis of the asset and the present value of the expected credit loss cash flows. Expected losses within our cash flows are determined by estimating the probability of default (“PD”) and loss given default (“LGD”) of our tenants and borrowers and their parent guarantors, as applicable, over the life of each individual lease or financial asset. We have engaged a nationally recognized data analytics firm to assist us with estimating both the PD and LGD of our tenants and borrowers and their parent guarantors, as applicable. The PD and LGD are estimated during a reasonable and supportable period for which we believe we are able to estimate future economic conditions (the “R&S Period”) and a long-term period for which we revert to long-term historical averages (the “Long-Term Period”). The PD and LGD estimates for the R&S Period are developed using the current financial condition of the tenant or borrower and parent guarantor, as applicable, and applied to a projection of economic conditions over a two-year term. The PD and LGD for the Long-Term Period are estimated using the average historical default rates and historical loss rates, respectively, of public companies over approximately the past 40 years that have similar credit profiles or characteristics to our tenants, borrowers and their parent guarantors, as applicable. We are unable to use our historical data to estimate losses as we have no loss history to date. The CECL allowance is recorded as a reduction to our net Investments in leases - sales-type, Investments in leases - financing receivables, Investments in loans and securities and Sales-type sub-leases (included in Other assets) on our Balance Sheet. We are required to update our CECL allowance on a quarterly basis with the resulting change being recorded in the Statement of Operations for the relevant period. Finally, each time we make a new investment in an asset subject to ASC 326, we are required to record an initial CECL allowance for such asset, which will result in a non-cash charge to the Statement of Operations for the relevant period. We are required to estimate a CECL allowance related to contractual commitments to extend credit, such as future funding commitments under a revolving credit facility, delayed draw term loan, construction loan or through commitments made to our tenants to fund the development and construction of improvements at our properties through the Partner Property Growth Fund. We estimate the amount that we will fund for each contractual commitment based on (i) discussions with our borrowers and tenants, (ii) our borrowers’ and tenants’ business plans and financial condition and (iii) other relevant factors. Based on these considerations, we apply a CECL allowance to the estimated amount of credit we expect to extend. The CECL allowance for unfunded commitments is calculated using the same methodology as the allowance for all of our other investments subject to the CECL model. The CECL allowance related to these future commitments is recorded as a component of Other liabilities on our Balance Sheet. Charge-offs are deducted from the allowance in the period in which they are deemed uncollectible. Recoveries previously written off are recorded when received. There were no charge-offs or recoveries for the three months ended March 31, 2023 and 2022. Foreign Currency Translation and Remeasurement Our investment in the PURE Portfolio is denominated in Canadian Dollars (“CAD” or “C$”), and accordingly, we translate the financial statements of the subsidiaries that own the PURE Portfolio into U.S. Dollars (“USD” or “US$”) when we consolidate their financial results and position. Generally, assets and liabilities are translated at the exchange rate in effect at the date of the Balance Sheet and the resulting translation adjustments are included in Accumulated other comprehensive income in the Balance Sheets. Certain balance sheet items, primarily equity and capital-related accounts, are reflected at the historical exchange rate. Income Statement accounts are translated using the average exchange rate for the period. We and certain of our consolidated subsidiaries have intercompany and third-party debt that is denominated CAD, which is not our and our consolidated subsidiaries functional currency of USD. When the debt and related operating receivables and/or payables are remeasured to the functional currency of the entity, a gain or loss can result. The resulting adjustment is reflected in Other gains (losses), net in the Statement of Operations. Other Income and Other Expenses Other income primarily represents sub-lease income related to certain ground and use leases. Under the Lease Agreements, the tenants are required to pay all costs associated with such ground and use leases and provides for their direct payment to the landlord. This income and the related expense are recorded on a gross basis in our Statement of Operations as required under GAAP as we are the primary obligor under these certain ground and use leases. Fair Value Measurements We measure the fair value of financial instruments based on assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. Derivative Financial Instruments We record our derivative financial instruments as either Other assets or Other liabilities on our Balance Sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. We formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged transactions. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in Net income prospectively. If the hedge relationship is terminated, then the value of the derivative previously recorded in Accumulated other comprehensive income (loss) is recognized in earnings when the hedged transactions affect earnings. Changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of Accumulated other comprehensive income (loss) in our Balance Sheet with a corresponding change in Unrealized gain (loss) in cash flows hedges within Other comprehensive income on our Statement of Operations. We use derivative instruments to mitigate the effects of interest rate volatility, whether from variable rate debt or future forecasted transactions, which could unfavorably impact our future earnings and forecasted cash flows. We do not use derivative instruments for speculative or trading purposes. Concentrations of Credit Risk Caesars and MGM are the guarantors of all the lease payment obligations of the tenants under the applicable leases of the properties that they each respectively lease from us. Revenue from the Caesars Leases represented 38% of our lease revenues for the three months ended March 31, 2023 and 76% of our lease revenues for the three months ended March 31, 2022. Revenue from the MGM Leases represented 39% of our lease revenues for the three months ended March 31, 2023. We did not have any revenue from the MGM Leases for the three months ended March 31, 2022 as the MGP Transactions closed on April 29, 2022. Additionally, our properties on the Las Vegas Strip generated approximately 48% and 38% of our lease revenues for the three months ended March 31, 2023 and 2022, respectively. Other than having two tenants from which we derive and will continue to derive a substantial portion of our revenue and our concentration in the Las Vegas market, we do not believe there are any other significant concentrations of credit risk.
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Real Estate Transactions | Real Estate Transactions 2023 Property Acquisitions PURE Canadian Gaming Transaction On January 6, 2023, we acquired the real estate assets of PURE Casino Edmonton, PURE Casino Yellowhead, PURE Casino Calgary, and PURE Casino Lethbridge, all of which are located in Alberta, Canada, from PURE Canadian Gaming for an aggregate purchase price of approximately C$271.9 million (approximately US$200.8 million based on the exchange rate at the time of the acquisition) (the “PURE Canadian Gaming Transaction”). We financed the PURE Canadian Gaming Transaction with a combination of cash on hand and a C$140.0 million (approximately US$103.4 million based on the exchange rate at the time of the acquisition) draw under our Revolving Credit Facility. Simultaneous with the acquisition, we entered into the PURE Master Lease. The PURE Master Lease has an initial total annual rent of approximately C$21.8 million (approximately US$16.1 million based on the exchange rate at the time of the acquisition), an initial term of 25 years, with four 5-year tenant renewal options, escalation of 1.25% per annum in lease years two and three (and thereafter at the greater of 1.5% and the Canadian Consumer Price Index, capped at 2.5%) and minimum capital expenditure requirements of 1.0% of annual net revenue (excluding gaming equipment). The tenant’s obligations under the PURE Master Lease are guaranteed by the parent entity of PURE Canadian Gaming. We determined that the PURE Canadian Gaming Transaction should be accounted for as an asset acquisition under ASC 805-50 and further, that the land and building components of the PURE Master Lease meet the definition of a sales-type lease. Since we purchased and leased the assets back to the seller under a sale leaseback transaction, control is not considered to have transferred to us under GAAP. Accordingly, the PURE Master Lease is accounted for as Investments in leases - financing receivables on our Balance Sheet, net of an initial allowance for estimated credit losses in the amount of $19.6 million. MGM Grand/Mandalay Bay JV Interest Acquisition On January 9, 2023, we closed on the previously announced acquisition of the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV (previously referred to as the “BREIT JV”) from Blackstone Real Estate Income Trust, Inc. (“BREIT”) (the “MGM Grand/Mandalay Bay JV Interest Acquisition”) for cash consideration of $1,261.9 million. We also assumed BREIT’s $1,497.0 million pro rata share of an aggregate $3.0 billion of property-level debt, which matures in 2032 and bears interest at a fixed rate of 3.558% per annum through March 2030. The cash consideration was funded through a combination of cash on hand and proceeds from the settlement of the November 2022 Forward Sale Agreements and ATM Forward Sale Agreements (each as described in Note 11 - Stockholders Equity). The MGM Grand/Mandalay Bay Lease currently has an annual rent of $309.9 million, all of which we are entitled to following the closing of the MGM Grand/Mandalay Bay JV Interest Acquisition. The MGM Grand/Mandalay Bay Lease has a remaining initial lease term of approximately 27 years (expiring in 2050), with two ten-year tenant renewal options. Rent under the MGM Grand/Mandalay Bay Lease escalates annually at 2.0% through 2035 (year 15 of the initial lease term) and thereafter at the greater of 2.0% or the Consumer Price Index (“CPI”) (subject to a 3.0% ceiling). As of December 31, 2022, the MGM Grand/Mandalay Bay JV was accounted for as an equity method investment under the voting interest model within Investment in unconsolidated affiliate on our Balance Sheets. Simultaneously with closing of the MGM Grand/Mandalay Bay JV, as a result of acquiring full ownership, we consolidated the joint venture and determined that the consolidation should be accounted for as an asset acquisition under ASC 805-50. In application of the asset acquisition guidance we retained the prior cost basis of our 50.1% interest, which we previously acquired in connection with the MGP Transaction, and combined such basis to the purchase price of the MGM Grand/Mandalay Bay JV Interest Acquisition. The following is a summary of our net assets acquired upon consolidation of the MGM Grand/Mandalay Bay JV:
Under ASC 805-50, we allocated the net assets acquired by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the consolidation of the MGM Grand/Mandalay Bay JV:
____________________ (1) Amount represents their current carrying value, which is equal to fair value. (2) Amount represents the fair value of the $3.0 billion principal amount of CMBS debt as of January 9, 2023, which was estimated as a $252.1 million discount to principal value. The fair value of the debt was estimated by modeling the contractual cash flows and discounting them back to the present value using an estimated market yield. Additionally, we considered current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value measurement are considered Level 3 of the fair value hierarchy. Concurrent with the closing of the MGM Grand/Mandalay Bay JV Interest Acquisition and consolidation of the MGM Grand/Mandalay Bay Lease, we assessed the lease classification of the MGM Grand/Mandalay Bay Lease and determined that it met the definition of a sales-type lease. Accordingly, the relative fair value of the MGM Grand/Mandalay Bay Lease of $5.5 billion was recorded as an Investment in leases - sales-type on our Balance Sheet, net of an initial allowance for estimated credit losses in the amount of $210.0 million. Gold Strike Severance Lease On February 15, 2023, in connection with MGM’s sale of the operations of Gold Strike, we entered into the Gold Strike Lease with CNB related to the land and real estate assets of Gold Strike, and entered into an amendment to the MGM Master Lease in order to account for the divestiture of the operations of Gold Strike. The Gold Strike Lease has initial annual base rent of $40.0 million with other economic terms substantially similar to the MGM Master Lease, including a base term of 25 years with three 10-year tenant renewal options, escalation of 2.0% per annum (with escalation of the greater of 2.0% and CPI, capped at 3.0%, beginning in lease year 11) and minimum capital expenditure requirements of 1.0% of annual net revenue. The Gold Strike Lease is guaranteed by CNB. Upon the closing of the sale of Gold Strike, the MGM Master Lease was amended to account for MGM’s divestiture of the Gold Strike operations and resulted in a reduction of the annual base rent under the MGM Master Lease by $40.0 million. 2023 Loan and Security Investment Activity Hard Rock Ottawa Secured Notes On March 28, 2023, we purchased $85.0 million of senior secured notes issued by H.R. Ottawa, L.P. (“Hard Rock Ottawa Notes”), which owns and operates the Hard Rock Ottawa Casino. H.R. Ottawa, L.P. intends to use the proceeds of the Hard Rock Ottawa Notes to fund a portion of (i) the redevelopment and rebrand of the existing Rideau Carleton Raceway Casino, located in Ottawa, Canada, (ii) the development of an integrated “Hard Rock” branded hotel with approximately 150 rooms, and (iii) the repayment of existing debt. The Hard Rock Ottawa Notes are denominated and issued in USD. Pending Transactions Rocky Gap Casino On August 24, 2022, we and Century Casinos entered into definitive agreements to acquire Rocky Gap Casino Resort (“Rocky Gap Casino”), located in Flintstone, Maryland, from Golden Entertainment, Inc. for an aggregate purchase price of $260.0 million. Pursuant to the transaction agreements, we will acquire an interest in the land and buildings associated with Rocky Gap Casino for approximately $203.9 million, and Century Casinos will acquire the operating assets of the property for approximately $56.1 million. Simultaneous with the closing of the transaction, the Century Master Lease will be amended to include Rocky Gap Casino, and annual rent under the Century Master Lease will increase by $15.5 million. Additionally, the terms of the Century Master Lease will be extended such that, upon closing of the transaction, the lease will have a full 15-year initial base lease term remaining, with four 5-year tenant renewal options. The tenant’s obligations under the Century Master Lease will continue to be guaranteed by Century Casinos. The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in mid-2023. Significant 2022 Transactions MGP Transactions On April 29, 2022, we closed on the previously announced MGP Transactions governed by the MGP Master Transaction Agreement, pursuant to which we acquired MGP for total consideration of $11.6 billion, plus the assumption of approximately $5.7 billion principal amount of debt, inclusive of a 50.1% share of the MGM Grand/Mandalay Bay JV CMBS debt, at the time. Upon closing, the MGP Transactions added $1,012.2 million of annualized rent to our portfolio from 15 Class A entertainment casino resort properties spread across nine regions and comprising 36,000 hotel rooms, 3.6 million square feet of meeting and convention space and hundreds of food, beverage and entertainment venues. Under the terms of the MGP Master Transaction Agreement, each outstanding MGP Class A common share was converted into 1.366 (the “Exchange Ratio”) shares of VICI common stock. The fixed Exchange Ratio represented an agreed upon price of $43.00 per share of MGP Class A common shares based on VICI’s trailing 5-day volume weighted average price of $31.47 as of July 30, 2021. MGM received $43.00 per unit in cash for the redemption of the majority of its MGP OP units that it held for total cash consideration of approximately $4.404 billion and also acquired approximately 12.2 million units in VICI OP. The MGP Class B share that was held by MGM was cancelled and ceased to exist simultaneous with closing. The number of MGP Class A common shares converted to shares of VICI common stock was determined as follows:
____________________ (1) Amount excludes the cash paid in lieu of approximately 54 fractional MGP Class A common shares. Simultaneous with the closing of the MGP Transactions on April 29, 2022, we entered into the MGM Master Lease. The MGM Master Lease has an initial term of 25 years, with three 10-year tenant renewal options and had an initial total annual rent of $860.0 million. Rent under the MGM Master Lease escalates at a rate of 2.0% per annum for the first 10 years and thereafter at the greater of 2.0% per annum or the increase in CPI, subject to a 3.0% cap. The total annual rent under the MGM Master Lease was reduced by $90.0 million upon the close of MGM’s sale of the operations of the Mirage to Hard Rock and entrance into the Mirage Lease on December 19, 2022, and further reduced by $40.0 million upon the close of MGM’s sale of the operations of Gold Strike on February 15, 2023 (which results in total annual rent under the MGM Master Lease of $730.0 million). Additionally, we retained a 50.1% ownership stake in the MGM Grand/Mandalay Bay JV, which owns the real estate assets of MGM Grand Las Vegas and Mandalay Bay. At the time of acquisition, the MGM Grand/Mandalay Bay Lease provided for total annual base rent of approximately $303.8 million, and had an initial term of thirty years with two 10-year tenant renewal options. Rent under the MGM Grand/Mandalay Bay Lease escalates at a rate of 2.0% per annum for the first 15 years and thereafter at the greater of 2.0% per annum or CPI, subject to a 3.0% cap. On January 9, 2023, we closed on the MGM Grand/Mandalay Bay JV Interest Acquisition and accordingly own 100% of the interest in the MGM Grand/Mandalay Bay JV, including the full $3.0 billion of CMBS debt held by the joint venture. We assessed the MGP Transactions in accordance with ASC 805, and determined that the acquisition of MGP did not meet the definition of a business as substantially all the assets were concentrated in a group of similarly identifiable acquired assets, and did not include a substantive process in the form of an acquired workforce. Accordingly, the MGP Transactions were accounted for as an asset acquisition under ASC 805-50 and we determined the consideration transferred under the MGP Transactions was $11.6 billion, comprised of the following:
____________________ (1) Amount represents the dollar value of 214,375,990 shares of VICI common stock, multiplied by the VICI stock price at the time of closing of $30.64 per share, which were issued in exchange for the MGP Class A common shares outstanding immediately prior to the REIT Merger and certain of the MGP stock-based compensation awards, converted to shares of VICI common stock. (2) Amount represents 12,231,373 VICI OP Units retained by MGM as non-controlling interest in VICI OP, multiplied by the VICI stock price at the time of closing of $30.64 per share. (3) Represents the total amount outstanding under MGP’s revolving credit facility as of April 29, 2022. In connection with the MGP Transactions, such amount was repaid in full and the related credit agreement was terminated. (4) In accordance with ASC 805-50, all direct and incremental costs related to the MGP Transactions, primarily related to success-based fees and third-party advisory fees, were included in the consideration transferred. Under ASC 805-50, we allocated the purchase price by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the MGP Transactions valued as of April 29, 2022:
____________________ (1) We valued the real estate portfolio at relative fair value using rent multiples taking into consideration a variety of factors, including (i) asset quality and location, (ii) property and lease-level operating performance and (iii) supply and demand dynamics of each property’s respective market. The multiples used ranged from 15.0x - 18.5x with a weighted average rent multiple of 16.7x, as determined using relative fair value. (2) The fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. (3) We value the Investment in unconsolidated affiliate at relative fair based on our percentage ownership of the net assets of the BREIT JV. (4) Amounts represents their current carrying value which is equal to fair value. The Other assets and Other liabilities amounts include the gross presentation of certain MGP ground leases which we assumed in connection with the MGP Transactions. (5) Amount represents the fair value of debt as of April 29, 2022, which was estimated as a $93.9 million discount to the notional value. The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy. Concurrent with the closing of the MGP Transactions and entry into the MGM Master Lease, we assessed the lease classification of the MGM Master Lease and determined that it met the definition of a sales-type lease. Further, since MGM controlled and consolidated MGP prior to the MGP Transactions, the lease was assessed under the sale-leaseback guidance and determined to be a failed sale-leaseback under which the lease is accounted for as a financing receivable under ASC 310. In relation to the MGM Grand/Mandalay Bay JV, we determined that such investment should be accounted for as an equity method investment and, accordingly, recorded the relative fair value as an Investment in unconsolidated affiliate on our Balance Sheet. The requirement to record our investment in the MGM Grand/Mandalay Bay JV at relative fair value under ASC 805 resulted in a difference in our acquired basis from that of the underlying records, or historical cost basis, of the MGM Grand/Mandalay Bay JV. Accordingly, we compared our proportionate share of the historical cost basis of the MGM Grand/Mandalay Bay JV as of April 29, 2022 to our proportionate share of the relative fair value, the difference of which was amortized through Income from unconsolidated affiliate over the life of the related asset or liability. On January 9, 2023, we acquired the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV from BREIT and consolidated the operations of the joint venture. Refer to “MGM Grand/Mandalay Bay JV Interest Acquisition” above for further details.
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Portfolio | Real Estate Portfolio As of March 31, 2023, our real estate portfolio consisted of the following: •Investments in leases - sales-type, representing our investment in 25 casino assets leased on a triple-net basis to our tenants, Apollo, Caesars, Century Casinos, EBCI, Hard Rock, MGM and PENN Entertainment under ten separate lease agreements; •Investments in leases - financing receivables, representing our investment in 24 casino assets leased on a triple-net basis to our tenants, Caesars, CNB, Foundation Gaming, Hard Rock, JACK Entertainment, MGM and PURE Canadian Gaming under seven separate lease agreements; •Investments in loans and securities, representing our investments in eleven senior secured and mezzanine loans and the Hard Rock Ottawa Notes; and •Land, representing our investment in certain underdeveloped or undeveloped land adjacent to the Las Vegas strip and non-operating, vacant land parcels. The following is a summary of the balances of our real estate portfolio as of March 31, 2023 and December 31, 2022:
____________________ (1) At lease inception (or upon modification), we determine the estimated residual values of the leased property (not guaranteed) under the respective Lease Agreements, which has a material impact on the determination of the rate implicit in the lease and the lease classification. As of March 31, 2023 and December 31, 2022, the estimated residual values of the leased properties under our Lease Agreements were $15.6 billion and $11.5 billion, respectively. (2) Represents our 50.1% investment in the MGM Grand/Mandalay Bay JV prior to the MGM Grand/Mandalay Bay JV Interest Acquisition on January 9, 2023, which was accounted for as an equity method investment. Investments in Leases The following table details the components of our income from sales-type leases and lease financing receivables:
____________________ (1) At lease inception (or upon modification), we determine the minimum lease payments under ASC 842, which exclude amounts determined to be contingent rent. Contingent rent is generally amounts in excess of specified floors or the variable rent portion of our leases. The minimum lease payments are recognized on an effective interest basis at a constant rate of return over the life of the lease and the contingent rent portion of the lease payments are recognized as earned, both in accordance with ASC 842. As of March 31, 2023, we have recognized contingent rent from our Margaritaville Lease and Greektown Lease in relation to the variable rent portion of the respective leases and the Caesars Las Vegas Master Lease, Caesars Regional Master Lease, Joliet Lease and Century Master Lease in relation to the CPI portion of the annual escalator. (2) Represents the MGM Master Lease, Harrah’s Call Properties, JACK Master Lease, Foundation Master Lease and PURE Master Lease, all of which were sale leaseback transactions. In accordance with ASC 842, since the lease agreements were determined to meet the definition of a sales-type lease and control of the asset is not considered to have been transferred to us, such lease agreements are accounted for as financings under ASC 310. (3) Amounts represent the non-cash adjustment to the minimum lease payments from sales-type leases and lease financing receivables in order to recognize income on an effective interest basis at a constant rate of return over the term of the leases. At March 31, 2023, minimum lease payments owed to us for each of the five succeeding years under sales-type leases and our leases accounted for as financing receivables, are as follows:
____________________ (1) Minimum lease payments do not include contingent rent, as discussed above, that may be received under the Lease Agreements. (2) The minimum lease payments and weighted average remaining lease term assumes the exercise of all tenant renewal options, consistent with our conclusions under ASC 842 and ASC 310. Lease Provisions As of March 31, 2023, we owned 49 properties leased under 16 separate Lease Agreements with subsidiaries of, or entities managed by, Apollo, Caesars, Century Casinos, CNB, EBCI, Foundation Gaming, JACK Entertainment, MGM, PENN Entertainment, PURE Canadian Gaming and Seminole Hard Rock, certain of which are master lease agreements governing multiple properties and certain of which are for single assets. Our Lease Agreements are generally long-term in nature with initial terms ranging from 15 to 30 years and are structured with several tenant renewal options extending the term of the lease for another 5 to 30 years. All of our Lease Agreements provide for annual base rent escalations, which range from 1% in the earlier years to the greater of 2% or CPI in later years, with certain of our leases providing for a cap with respect to the maximum CPI-based increase. Additionally, certain of our Lease Agreements provide for a variable rent component in which a portion of the annual rent, generally 20%, is subject to adjustment based on the revenues of the underlying asset in specified periods. Lease Overview The following is a summary of the material lease provisions of our Caesars Leases and MGM Leases, our two most significant tenants:
____________________ (1) On January 9, 2023, we closed on the MGM Grand/Mandalay Bay JV Interest Acquisition and acquired the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV and accordingly, the amounts set forth above reflect our consolidated interest. (2) Current annual rent with respect to the Joliet Lease is presented prior to accounting for the non-controlling interest, or rent payable, to the 20% third-party ownership of Harrah’s Joliet LandCo LLC. After adjusting for the 20% non-controlling interest, combined current annual rent under the Caesars Regional Master Lease and Joliet Lease is $694.6 million. (3) Any amounts representing rents in excess of the CPI floors specified above are considered contingent rent in accordance with GAAP. (4) Variable rent is not subject to the Escalator. Capital Expenditure Requirements We manage our residual asset risk through protective covenants in our Lease Agreements, which require the tenant to, among other things, hold specific insurance coverage, engage in ongoing maintenance of the property and invest in capital improvements. With respect to the capital improvements, the Lease Agreements specify certain minimum amounts that our tenants must spend on capital expenditures that constitute installation, restoration and repair or other improvements of items with respect to the leased properties. The following table summarizes the capital expenditure requirements of our tenants under their respective Lease Agreements:
____________________ (1) Represents the tenants under our other Lease Agreements not specifically outlined in the table, as specified in the respective Lease Agreements. (2) The Caesars Leases require a $107.5 million floor on annual capital expenditures for Caesars Palace Las Vegas, Joliet and the Regional Master Lease properties in the aggregate. Additionally, annual building & improvement capital improvements must be equal to or greater than 1% of prior year net revenues. (3) Certain tenants under the Caesars Leases, as applicable, are required to spend $380.3 million on capital expenditures (excluding gaming equipment) over a rolling three-year period, with $286.0 million allocated to the regional assets, $84.0 million allocated to Caesars Palace Las Vegas and the remaining balance of $10.3 million to facilities (other than the Harrah’s Las Vegas Facility) covered by any Caesars Lease in such proportion as such tenants may elect. Additionally, the tenants under the Regional Master Lease and Joliet Lease are required to expend a minimum of $531.9 million on capital expenditures (including gaming equipment) across certain of its affiliates and other assets, together with the $380.3 million requirement. Investments in Loans and Securities The following is a summary of our investments in loans and securities as of March 31, 2023 and December 31, 2022:
____________________ (1) Carrying value includes unamortized loan origination costs and are net of allowance for credit losses. (2) Our future funding commitments are subject to our borrowers’ compliance with the financial covenants and other applicable provisions of each respective loan agreement. (3) The weighted average interest rate is based on current outstanding principal balance and SOFR, as applicable for floating rate loans, as of March 31, 2023. (4) Assumes all extension options are exercised; however, our loans may be repaid, subject to certain conditions, prior to such date. (5) Represents our investment in the Hard Rock Ottawa Notes, which are accounted for as held-to-maturity securities. (6) Subsequent to quarter-end, on May 1, 2023, the Forum Convention Center Mortgage Loan, representing $400.0 million in principal balance of our senior secured loans, was repaid in full.
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Credit Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses | Allowance for Credit Losses Under ASC 326, we are required to estimate and record non-cash credit losses related to our historical and any future investments in sales-type leases, lease financing receivables, loans and securities classified as held-to-maturity. During the three months ended March 31, 2023, we recognized a $111.5 million increase in our allowance for credit losses primarily driven by (i) initial CECL allowances in relation to (a) the consolidation of the MGM Grand/Mandalay Bay JV in connection with the MGM Grand/Mandalay Bay JV Interest Acquisition and related classification of the MGM Grand/Mandalay Bay Lease as a sales-type lease, (b) the PURE Canadian Gaming Transaction and related classification of the PURE Master Lease as a lease financing receivable and (c) the purchase of the Hard Rock Ottawa Notes, and (ii) an increase in the Long-Term Period, probability of default, or PD, as a result of a standard annual update made to the Long-Term PD default study we utilize to estimate our CECL allowance. This increase was partially offset by (i) a decrease in the reasonable and supportable period, or R&S Period, PD of our tenants and their parent guarantors as a result of their market performance during the current quarter and (ii) changes in the macroeconomic model used to scenario condition our R&S Period PD. During the three months ended March 31, 2022, we recognized an $80.8 million increase in our allowance for credit losses primarily driven by (i) the initial CECL allowance in relation to (a) the Venetian Acquisition and classification of the Venetian Lease as a sales-type lease, (b) the estimated future funding commitments under our Property Growth Fund Agreement with the Venetian Tenant and (c) the sales-type sub-lease agreements we assumed in connection with the Venetian Acquisition and are required to present gross and (ii) the increase in the R&S Period PD of our tenants and their parent guarantors as a result of market volatility during the first quarter of 2022. This was partially offset by a decrease in the Long-Term Period PD as a result of a standard annual update made to the Long-Term PD default study we utilize to estimate our CECL allowance. As of March 31, 2023 and December 31, 2022, and since our formation date on October 6, 2017, all of our Lease Agreements and loan and security investments are current in payment of their obligations to us and no investments are on non-accrual status. The following tables detail the allowance for credit losses as of March 31, 2023 and December 31, 2022:
____________________ (1) The total allowance excludes the CECL allowance for unfunded commitments of our senior secured and mezzanine loans. As of March 31, 2023 and December 31, 2022, such allowance is $41.3 million and $45.1 million, respectively, and is recorded in Other liabilities. The following chart reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three months ended March 31, 2023 and 2022:
Credit Quality Indicators We assess the credit quality of our investments through the credit ratings of the senior secured debt of the guarantors of our leases, as we believe that our Lease Agreements have a similar credit profile to a senior secured debt instrument. The credit quality indicators are reviewed by us on a quarterly basis as of quarter-end. In instances where the guarantor of one of our Lease Agreements does not have senior secured debt with a credit rating, we use either a comparable proxy company or the overall corporate credit rating, as applicable. We also use this credit rating to determine the Long-Term Period PD when estimating credit losses for each investment. The following tables detail the amortized cost basis of our investments by the credit quality indicator we assigned to each lease or loan guarantor as of March 31, 2023 and 2022:
____________________ (1)Excludes the CECL allowance for unfunded commitments recorded in Other liabilities as such commitments are not currently reflected on our Balance Sheet, rather the CECL allowance is based on our current best estimate of future funding commitments. (2)We estimate the CECL allowance for our senior secured and mezzanine loans, excluding the Forum Convention Center Mortgage Loan and Hard Rock Ottawa Notes, using a traditional commercial real estate model based on standardized credit metrics to estimate potential losses.
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Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other Assets The following table details the components of our other assets as of March 31, 2023 and December 31, 2022:
_______________________________________________________ (1) As of March 31, 2023 and December 31, 2022, sales-type sub-leases are net of $17.0 million and $19.8 million of Allowance for credit losses, respectively. Refer to Note 5 - Allowance for Credit Losses for further details. Property and equipment used in operations, included within other assets, is primarily attributable to the land, building and improvements of our golf operations and consists of the following as of March 31, 2023 and December 31, 2022:
Other Liabilities The following table details the components of our other liabilities as of March 31, 2023 and December 31, 2022:
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Debt | Debt The following tables detail our debt obligations as of March 31, 2023 and December 31, 2022:
____________________ (1)Carrying value is net of unamortized original issue discount and unamortized debt issuance costs incurred in conjunction with debt. (2)Interest on any outstanding balance is payable monthly. Borrowings under the Revolving Credit Facility bear interest at a rate based on a credit rating-based pricing grid with a range of 0.775% to 1.325% margin plus SOFR (or CDOR, as applicable) with an additional 0.10% adjustment for SOFR loans, as applicable. Additionally, the commitment fees under the Revolving Credit Facility are calculated on a credit rating-based pricing grid with a range of 0.15% to 0.375%, depending on our credit ratings. For the three months ended March 31, 2023, the commitment fee for the Revolving Credit Facility was 0.250%. (3)On January 3, 2023, we drew on the Revolving Credit Facility in the amount of C$140.0 million to fund a portion of the purchase price of the PURE Canadian Gaming Transaction. The balance above is inclusive of foreign currency remeasurement. (4)Interest is payable monthly. (5)Interest is payable semi-annually. (6)Interest rates represent the contractual interest rates adjusted to account for the impact of the forward-starting interest rate swaps and treasury locks (as further described in Note 8 - Derivatives). The contractual interest rates on the April 2022 Notes maturing 2028, 2030 and 2032 are 4.750%, 4.950% and 5.125%, respectively. (7)The interest rate represents the weighted average interest rates of the Senior Unsecured Notes adjusted to account for the impact of the forward-starting interest rate swaps and treasury locks (as further described in Note 8 - Derivatives), as applicable. The contractual weighted average interest rate as of March 31, 2023, which excludes the impact of the forward-starting interest rate swaps and treasury locks, is 4.45%. (8)The Delayed Draw Term Loan was available to be drawn up to 12 months following the effective date of February 8, 2022. On February 8, 2023, the Delayed Draw Term Loan facility expired undrawn in accordance with its terms. The following table is a schedule of future minimum principal payments of our debt obligations as of March 31, 2023:
Senior Unsecured Notes Exchange Notes On September 13, 2021, we announced that the VICI Issuers commenced (i) private exchange offers to certain eligible holders (collectively, the “Exchange Offers”) for any and all of each series of the MGP OP Notes for up to an aggregate principal amount of $4.2 billion of new notes issued by the VICI Issuers and (ii) consent solicitations with respect to each series of MGP OP Notes (collectively, the “Consent Solicitations”) to adopt certain proposed amendments to each of the indentures governing the MGP OP Notes (collectively, the “MGP OP Notes Indentures”), which, among other things, eliminated or modified certain of the covenants, restrictions, provisions and events of default in each of the MGP OP Notes Indentures. Upon settlement of the Exchange Offers and Consent Solicitations on April 29, 2022, supplemental indentures to each of the MGP OP Notes Indentures that effected the proposed amendments became operative. On April 29, 2022, the VICI Issuers issued $1,024.2 million in aggregate principal amount of 5.625% Senior Notes due May 1, 2024, $799.4 million in aggregate principal amount of 4.625% Senior Notes due June 15, 2025, $480.5 million in aggregate principal amount of 4.500% Senior Notes due September 1, 2026, $729.5 million in aggregate principal amount of 5.750% Senior Notes due February 1, 2027, $349.3 million in aggregate principal amount of 4.500% Senior Notes due January 15, 2028 and $727.1 million in aggregate principal amount of 3.875% Senior Notes due February 15, 2029 in exchange for the validly tendered and not validly withdrawn MGP OP Notes, originally issued by the MGP Issuers, pursuant to the settlement of the Exchange Offers and Consent Solicitations in connection with the closing of the MGP Transactions. The Exchange Notes were issued with the same interest rate, maturity date and redemption terms as the corresponding series of MGP OP Notes, in each case under a supplemental indenture dated as of April 29, 2022, between the VICI Issuers and UMB Bank, National Association, as trustee (the “Trustee”). The Exchange Notes due 2025, 2026, 2027, 2028, and 2029 are redeemable at our option, in whole or in part, at any time on or after February 1, 2024, March 15, 2025, June 1, 2026, November 1, 2026, October 15, 2027 and November 15, 2028, respectively, at the redemption prices set forth in the respective indenture governing such Exchange Notes. We may redeem some or all of such notes prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. MGP OP Notes Following the issuance of the Exchange Notes pursuant to the settlement of the Exchange Offers and Consent Solicitations, $25.8 million in aggregate principal amount of MGP OP Notes due 2024, $0.6 million in aggregate principal amount of MGP OP Notes due 2025, $19.5 million in aggregate principal amount of MGP OP Notes due 2026, $20.5 million in aggregate principal amount of MGP OP Notes due 2027, $0.7 million in aggregate principal amount of MGP OP Notes due 2028 and $22.9 million in aggregate principal amount of MGP OP Notes due 2029 remain outstanding. Each series of the MGP OP Notes is redeemable at our option, in whole or in part, at any time on or after the same dates as set forth above with respect to the corresponding maturity series of the Exchange Notes. We may redeem some or all of such notes prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. April 2022 Notes On April 29, 2022, VICI LP, our wholly owned subsidiary, issued (i) $500.0 million in aggregate principal amount of 4.375% Senior Notes due 2025, which mature on May 15, 2025, (ii) $1,250.0 million in aggregate principal amount of 4.750% Senior Notes due 2028, which mature on February 15, 2028, (iii) $1,000.0 million in aggregate principal amount of 4.950% Senior Notes due 2030, which mature on February 15, 2030, (iv) $1,500.0 million in aggregate principal amount of 5.125% Senior Notes due 2032, which mature on May 15, 2032, and (v) $750.0 million in aggregate principal amount of 5.625% Senior Notes due 2052, which mature on May 15, 2052, (collectively, the “April 2022 Notes”) in each case under a supplemental indenture dated as of April 29, 2022, between VICI LP and the Trustee. We used the net proceeds of the offering to (i) fund the consideration for the redemption of a majority of the VICI OP Units received by MGM in the Partnership Merger for $4,404.0 million in cash in connection with the closing of the MGP Transactions on April 29, 2022, and (ii) pay down the outstanding $600.0 million balance on our Revolving Credit Facility. Prior to their maturity date, in the case of the April 2022 Notes due 2025, and January 15, 2028 (one month prior to the maturity date of the April 2022 Notes due 2028), December 15, 2029 (two months prior to the maturity date of the April 2022 Notes due 2030), February 15, 2032 (three months prior to the maturity date of the April 2022 Notes due 2032) and November 15, 2051 (six months prior to the maturity date of the April 2022 Notes due 2052), respectively, in the case of the April 2022 Notes due 2028, 2030, 2032 and 2052, we may redeem the April 2022 Notes at our option, in whole or in part, at any time and from time to time, at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. On or after January 15, 2028, December 15, 2029, February 15, 2032 and November 15, 2051, respectively, we may redeem the April 2022 Notes due 2028, 2030, 2032 and 2052 at a redemption price equal to 100% of the principal amount of such Notes to be redeemed, plus accrued and unpaid interest thereon to the redemption date. February 2020 Notes On February 5, 2020, the VICI Issuers issued (i) $750.0 million in aggregate principal amount of 3.500% Senior Notes due 2025, which mature on February 15, 2025, (ii) $750.0 million in aggregate principal amount of 3.750% Senior Notes due 2027, which mature on February 15, 2027, and (iii) $1,000.0 million in aggregate principal amount of 4.125% Senior Notes due 2030, which mature on August 15, 2030 (collectively, the “February 2020 Notes”), under separate indentures, each dated as of February 5, 2020, among the VICI Issuers, the subsidiary guarantors party thereto and the Trustee. The February 2020 Notes due 2025, 2027 and 2030 are redeemable at our option, in whole or in part, at any time on or after February 15, 2022, February 15, 2023, and February 15, 2025, respectively, at the redemption prices set forth in the respective indenture. We may redeem some or all of the February 2020 Notes due 2025, 2027 and 2030 prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. Prior to February 15, 2022, with respect to the February 2020 Notes due 2025, and February 15, 2023, with respect to the February 2020 Notes due 2027 and 2030, we may redeem up to 40% of the aggregate principal amount of the February 2020 Notes due 2025, 2027 and 2030 using the proceeds of certain equity offerings at the redemption price set forth in the respective indenture. November 2019 Notes On November 26, 2019, the VICI Issuers issued (i) $1,250.0 million in aggregate principal amount of 4.250% Senior Notes due 2026, which mature on December 1, 2026, and (ii) $1,000.0 million in aggregate principal amount of 4.625% Senior Notes due 2029, which mature on December 1, 2029 (collectively, the “November 2019 Notes”), under separate indentures, each dated as of November 26, 2019, among the VICI Issuers, the subsidiary guarantors party thereto and the Trustee. The November 2019 Notes due 2026 and 2029 are redeemable at our option, in whole or in part, at any time on or after December 1, 2022 and December 1, 2024, respectively, at the redemption prices set forth in the respective indenture. We may redeem some or all of the November 2019 Notes due 2026 or 2029 prior to such respective dates at a price equal to 100% of the principal amount thereof plus a “make-whole” premium. Prior to December 1, 2022, we may redeem up to 40% of the aggregate principal amount of the November 2019 Notes due 2026 or 2029 using the proceeds of certain equity offerings at the redemption price set forth in the respective indenture. Guarantee and Financial Covenants None of the Senior Unsecured Notes are guaranteed by any subsidiaries of VICI LP. The Exchange Notes, the MGP OP Notes and the April 2022 Notes benefit from a pledge of the limited partnership interests of VICI LP directly owned by VICI OP (the “Limited Equity Pledge”). The Limited Equity Pledge has also been granted in favor of (i) the administrative agent and the lenders under the Credit Agreement and (ii) the trustee under the indentures governing, and the holders of, the November 2019 Notes and the February 2020 Notes. Pursuant to the terms of the respective indentures, in the event that the November 2019 Notes, February 2020 Notes and Exchange Notes (i) are rated investment grade by at least two of S&P, Moody’s and Fitch and (ii) no default or event of default has occurred and is continuing under the respective indentures, VICI LP and its restricted subsidiaries will no longer be subject to certain of the restrictive covenants under such indentures. On April 18, 2022, the November 2019 Notes, February 2020 Notes and Exchange Notes were rated investment grade by each of S&P and Fitch and VICI LP notified the Trustee of such Suspension Date (as defined in the indentures). Accordingly, VICI LP and its restricted subsidiaries are no longer subject to certain of the restrictive covenants under such indentures, but are subject to a maintenance covenant requiring VICI LP and its restricted subsidiaries to maintain a certain total unencumbered assets to unsecured debt ratio. In the event that the November 2019 Notes, February 2020 Notes and Exchange Notes are no longer rated investment grade by at least two of S&P, Moody’s and Fitch, then VICI LP and its restricted subsidiaries will again be subject to all of the covenants of the respective indentures, as applicable, but will no longer be subject to the maintenance covenant. The indenture governing the April 2022 Notes contains certain covenants that limit the ability of VICI LP and its subsidiaries to incur secured and unsecured indebtedness and VICI LP to consummate a merger, consolidation or sale of all or substantially all of its assets. In addition, VICI LP is required to maintain total unencumbered assets of at least 150% of total unsecured indebtedness. These covenants are subject to a number of important exceptions and qualifications. Unsecured Credit Facilities On February 8, 2022, VICI LP entered into the Credit Agreement providing for (i) the Revolving Credit Facility in the amount of $2.5 billion scheduled to mature on March 31, 2026 and (ii) the Delayed Draw Term Loan in the amount of $1.0 billion scheduled to mature on March 31, 2025. The Delayed Draw Term Loan was available to be drawn for up to 12 months following the effective date and, accordingly, expired undrawn in accordance with its terms on February 8, 2023. The Revolving Credit Facility includes two six-month maturity extension options the exercise of which is subject to customary conditions and the payment of an extension fee of 0.0625% on the extended commitments. Additionally, the Revolving Credit Facility includes the option to increase the revolving loan commitments by up to $1.0 billion to the extent that any one or more lenders (from the syndicate or otherwise) agree to provide such additional credit extensions. On July 15, 2022, the Credit Agreement was amended pursuant to a First Amendment among VICI LP and the lenders party to the Credit Agreement, in order to permit borrowings under the Revolving Credit Facility in certain foreign currencies in an aggregate principal amount of up to the equivalent of $1.25 billion. Borrowings under the Revolving Credit Facility will bear interest, at VICI LP’s option, at a rate based on SOFR (or CDOR for Canadian dollars) (including a credit spread adjustment for SOFR) plus a margin ranging from 0.775% to 1.325% or a base rate (or Canadian prime rate for Canadian dollars) plus a margin ranging from 0.00% to 0.325%, in each case, with the actual margin determined according to VICI LP’s debt ratings. The base rate for USD is the highest of (i) the prime rate of interest last quoted by the Wall Street Journal in the U.S. then in effect, (ii) the NYFRB rate from time to time plus 0.5% and (iii) the SOFR rate for a one-month interest period plus 1.0%, subject in each case to a floor of 1.0%. The Canadian prime rate is the highest of (i) the PRIMCAN Index rate and (ii) the average rate for thirty day Canadian Dollar bankers’ acceptance quoted by Reuters plus 1.0%, subject in each case to a floor of 1.0%. In addition, the Revolving Credit Facility requires the payment of a facility fee ranging from 0.15% to 0.375% (depending on VICI LP’s debt rating) of total revolving commitments. Pursuant to the terms of the Credit Agreement, VICI LP is subject to, among other things, customary covenants and the maintenance of various financial covenants. The Credit Agreement is consistent with certain tax-related requirements related to security for the Company’s debt. On February 18, 2022, we drew on the Revolving Credit Facility in the amount of $600.0 million to fund a portion of the purchase price of the Venetian Acquisition. On April 29, 2022, we repaid the outstanding balance of the Revolving Credit Facility using the proceeds from the April 2022 Notes offering. On January 3, 2023, we drew on the Revolving Credit Facility in the amount of C$140.0 million to fund a portion of the purchase price of the PURE Canadian Gaming Transaction. MGM Grand/Mandalay Bay CMBS Debt On January 9, 2023, as a result of the MGM Grand/Mandalay Bay JV Interest Acquisition, we consolidated the assets and liabilities of the MGM Grand/Mandalay Bay JV, which includes the $3.0 billion in principal amount of outstanding CMBS debt (the “MGM Grand/ Mandalay Bay CMBS Debt”). The MGM Grand/Mandalay Bay CMBS Debt was originally incurred on February 14, 2020 pursuant to a loan agreement (as amended from time to time, the “MGM Grand/Mandalay Bay CMBS Loan Agreement”), and is secured primarily by mortgages on certain affiliates of the MGM Grand/Mandalay Bay JV’s fee interest in the real estate assets related to the MGM Grand Las Vegas and the Mandalay Bay Resort and Casino. The MGM Grand/Mandalay Bay CMBS Debt matures in March 2032 and bears interest at 3.558% per annum until March 2030 at which time the rate can change in accordance with the terms of the MGM Grand Mandalay Bay CMBS Loan Agreement until maturity. The MGM Grand/Mandalay Bay CMBS Loan Agreement contains certain customary affirmative and negative covenants and events of default, including, among other things, restrictions on the ability of the MGM Grand/Mandalay Bay JV and certain of its affiliates to incur additional debt and transfer, pledge or assign certain equity interests or its assets, and covenants requiring certain affiliates of the MGM Grand/Mandalay Bay JV to exist as “special purpose entities,” maintain certain ongoing reserve funds and comply with other customary obligations for commercial mortgage-backed securities loan financings. Bridge Facilities On March 2, 2021 and August 4, 2021, in connection with the completion of the Venetian Acquisition and MGP Transactions, respectively, VICI PropCo entered into Commitment Letters with certain lenders pursuant to which they provided commitments in an amount up to $4.0 billion and $9.3 billion, respectively, in the aggregate, each consisting of a 364-day first lien secured bridge facility (the “Venetian Acquisition Bridge Facility” and the “MGP Transactions Bridge Facility,” respectively), for the purpose of providing a portion of the financing necessary in connection with the closing of the Venetian Acquisition and MGP Transactions, as applicable. In each case the commitments were subject to a tiered commitment fee based on the period the respective commitment was outstanding and a structuring fee. During the three months ended March 31, 2022, we recognized $12.5 million in such fees which were recorded in Interest expense in our Statement of Operations. We did not recognize any such fees during the three months ended March 31, 2023, since the Venetian Acquisition Bridge Facility and MGP Transactions Bridge Facility were fully terminated on February 23, 2022 and April 29, 2022, respectively, in connection with such closings. Financial Covenants As described above, our debt obligations are subject to certain customary financial and protective covenants that restrict VICI LP, VICI PropCo and its subsidiaries’ ability to incur additional debt, sell certain asset and restrict certain payments, among other things. These covenants are subject to a number of exceptions and qualifications, including the ability to make restricted payments to maintain our REIT status. At March 31, 2023, we were in compliance with all financial covenants under our debt obligations.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Forward-Starting Derivatives In March 2023, we entered into two forward-starting interest rate swap agreements with an aggregate notional amount of $250.0 million to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance of $250.0 million of senior unsecured notes. We hedged our exposure to the variability in future cash flows for a forecasted issuance of long-term debt over a maximum period ending December 2024. The forward-starting interest rate swaps are designated as cash-flow hedges. The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of March 31, 2023. As of December 31, 2022, there were no derivative instruments outstanding.
From December 2021 through April 2022, we entered into five forward-starting interest rate swap agreements with an aggregate notional amount of $2.5 billion and two U.S. Treasury Rate Lock agreements with an aggregate notional amount of $500.0 million to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the forecasted issuance date of $3.0 billion of long-term debt. The forward-starting interest rate swaps and treasury locks were designated as cash-flow hedges. In April 2022 in connection with the April 2022 Notes offering, we settled the outstanding forward-starting interest rate swaps for total net proceeds of $202.3 million and the treasury locks for total net proceeds of $4.5 million. Since the forward-starting swaps and treasury locks were hedging the interest rate risk on the April 2022 Notes, the unrealized gain in Accumulated other comprehensive income will be amortized over the term of the respective derivative instruments, which matches that of the underlying note, as a reduction in interest expense. The following table presents the effect of our forward-starting derivative financial instruments on our Statement of Operations:
Net Investment Hedges The C$140.0 million draw on the Revolving Credit Facility in connection with the PURE Canadian Gaming Transaction reduces the impact of exchange rate variations associated with our investment in the PURE Canadian Gaming entities and accordingly, has been designated as a hedge of the net investment in the PURE Canadian Gaming entities. As a non-derivative net investment hedge, the impact of changes in foreign currency exchange rates on the principal balance are recognized as a cumulative translation adjustment within accumulated other comprehensive income. For the three months ended March 31, 2023 we recognized $2.4 million in unrealized losses related to such net investment hedge, which were recorded as a component of Foreign currency translation adjustments in the Statement of Operations.
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value The following table summarizes our assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:
___________________ (1) The fair values of our interest rate swap derivative instruments were estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising interest rate curves and credit spreads, which are Level 2 measurements as defined under ASC 820. (2) The carrying value of these investments is equal to their fair value due to the short-term nature of the investments as well as their credit quality. The estimated fair values of our financial instruments as of March 31, 2023 and December 31, 2022 for which fair value is only disclosed are as follows:
____________________ (1)These investments represent the JACK Master Lease, the Harrah’s Call Properties, the MGM Master Lease, the Foundation Master Lease and the PURE Master Lease. In relation to the Harrah’s Call Properties, JACK Master Lease and MGM Master Lease the fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to the Foundation Master Lease and PURE Master Lease, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates the purchase price of the acquisition of these financial assets. (2)These investments represent our investments in eleven senior secured and mezzanine loans and one series of senior secured notes. The fair value of investments in loans is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to our investments in securities, representing the Hard Rock Ottawa Notes, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates the purchase price of the acquisition of these financial assets. (3)The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.
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Commitments and Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities Litigation In the ordinary course of business, from time to time, we may be subject to legal claims and administrative proceedings. As of March 31, 2023, we are not subject to any litigation that we believe could have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations, liquidity or cash flows. Operating Lease Commitments We are liable under various operating leases for: (i) land at the Cascata golf course, which expires in 2038 and has three 10-year extension options and (ii) certain corporate offices, the most material of which is our corporate headquarters in New York, NY, which expires in 2030 and has one five-year renewal option. The discount rates for the leases were determined based on the yield of our then current secured borrowings, adjusted to match borrowings of similar terms, and are between 5.3% and 5.5%. The weighted average remaining lease term as of March 31, 2023 under our operating leases was 13.4 years. Total rental expense, included in golf operations and general and administrative expenses in our Statement of Operations and contractual rent expense under these agreements were as follows:
The future minimum lease commitments relating to the base lease rent portion of noncancelable operating leases at March 31, 2023 are as follows:
Sub-Lease Commitments Certain of our acquisitions necessitate that we assume, as the lessee, ground and use leases that are integral to the operations of the property, the cost of which is passed to our tenants through the Lease Agreements, which require the tenants to pay all costs associated with such ground and use leases and provide for their direct payment to the landlord. We have determined we are the primary obligor of certain of such ground and use leases and, accordingly, have presented these leases on a gross basis on our Balance Sheet and Statement of Operations. The following is a summary of the leases, the lease classification of which has been determined to be either an operating sub-lease or finance sub-lease. Operating Sub-Lease Commitments With respect to the following information, we assessed the lease classification of certain of the sub-leases to our tenants through the Lease Agreements, and our obligation as primary obligor of the leases and determined that they meet the definition of an operating lease. Accordingly, we have recorded sub-lease right-of-use assets in Other assets and sub-lease liabilities in Other liabilities.
Total rental income and rental expense, included in Other income and Other expenses, respectively, in our Statement of Operations and contractual rent expense under these agreements were as follows:
The future minimum lease commitments relating to the sub-leases at March 31, 2023 are as follows:
The discount rate for the operating sub-leases were determined based on the yield of our secured borrowings at the time of assumption of the leases, adjusted to match borrowings of similar terms, and are between 2.6% and 2.9%. The weighted average remaining lease term as of March 31, 2023 under our operating sub-lease was 5.2 years. Finance Sub-Lease Commitments With respect to the following information, we assessed the lease classification of certain of the sub-leases to our tenants through the Lease Agreements, and our obligation as primary obligor of the ground and use leases and determined that they meet the definition of a sales-type lease and finance lease. Accordingly, we have recorded a sales-type sub-lease in Other assets and finance sub-lease liability in Other liabilities. The following table details the balance and location in our Balance Sheet of the ground and use sub-leases as of March 31, 2023 and December 31, 2022:
Total rental income and rental expense, included in Other income and Other expenses, respectively, in our Statement of Operations and contractual rent expense under these agreements were as follows:
The future minimum lease commitments relating to the ground and use sub-leases at March 31, 2023 are as follows:
The discount rates for the finance ground and use sub-leases were determined based on the yield of our secured borrowings at the time of assumption of the leases, adjusted to match borrowings of similar terms, and are between 6% and 8%. The weighted average remaining lease term as of March 31, 2023 under our finance sub-leases was 54.5 years.
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Stockholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity Stock Authorized As of March 31, 2023, we have the authority to issue 1,400,000,000 shares of stock, consisting of 1,350,000,000 shares of common stock, $0.01 par value per share, and 50,000,000 shares of preferred stock, $0.01 par value per share. Public Offerings From time to time, we offer shares of our common stock through public offerings registered with the SEC. In connection with such offerings, we may issue and sell the offered shares of common stock upon settlement of the offering or, alternatively, enter into forward sale agreements with respect to all or a portion of the shares of common stock sold in such public offerings, pursuant to which the offered shares are borrowed by the forward sale purchasers and the issuance of such shares takes place upon settlement of the applicable forward sale agreement in accordance with its terms. Forward Offerings The following table summarizes the terms of the forward sale agreements outstanding as of March 31, 2023:
____________________ (1)The forward sale agreements generally require settlement within twelve months of the trade date, which is January 16, 2024 with respect to the January 2023 Offering. (2)The amount is inclusive of 3,952,500 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional common stock. (3)As of March 31, 2023, the net forward sales price per share under the January 2023 Offering was $31.69 and would result in us receiving approximately $960.4 million in net cash proceeds if we were to physically settle the shares. Alternatively, if we were to cash settle the shares under the January 2023 Offering, it would result in a cash outflow of $28.1 million, or, if we were to net share settle the shares under the January 2023 Offering, it would result in us issuing approximately 0.9 million shares. (4)Subsequent to quarter-end, on April 4, 2023, we physically settled 3,200,000 shares under the January 2023 Forward Sale Agreements at a forward share price of $31.71 per share, in exchange for total net proceeds of approximately $101.5 million. We did not receive any proceeds from the sale of shares at the time we entered into each of the respective forward sale agreements. We determined that the forward sale agreements meet the criteria for equity classification and, therefore, are exempt from derivative accounting. We recorded the forward sale agreements at fair value at inception, which we determined to be zero. Subsequent changes to fair value are not required under equity classification. The following table summarizes settlement activity of the outstanding forward sale agreements during the three months ended March 31, 2023 and 2022:
At-the-Market Offering Program On February 28, 2023, we entered into an equity distribution agreement, pursuant to which we may sell, from time to time, up to an aggregate sales price of $1,500.0 million of our common stock (the “ATM Program”) and terminated our prior equity distribution agreement, pursuant to which we previously sold, from time to time, shares of our common stock. Sales of common stock, if any, made pursuant to the ATM Program may be sold in negotiated transactions or transactions that are deemed to be “at the market” offerings, as defined in Rule 415 of the Securities Act. The ATM Program also provides that the Company may sell shares of its common stock under the ATM Program through forward sale contracts. Actual sales under the ATM Program will depend on a variety of factors including market conditions, the trading price of our common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. During the three months ended March 31, 2023 and 2022, we did not sell any shares under the ATM Program or the previous equity distribution agreement. We have no obligation to sell the remaining shares available for sale under the ATM Program. The following table summarizes our settlement activity of the outstanding forward shares under the ATM Program, all of which were sold subject to a forward sale agreement (collectively, the “ATM Forward Sale Agreements”) and the previous equity distribution agreement, as applicable, during the three months ended March 31, 2023. As of March 31, 2023, we do not have any forward shares outstanding under the ATM Program.
Common Stock Outstanding The following table details the issuance of outstanding shares of common stock, including restricted common stock:
Distributions Dividends declared (on a per share basis) during the three months ended March 31, 2023 and 2022 were as follows:
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Earnings Per Share and Earnings Per Unit |
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Earnings Per Share and Earnings Per Unit | 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 issuable 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). 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:
Earnings Per Unit The following section presents the basic earnings per unit (“EPU”) and diluted EPU of VICI OP, our operating partnership and the direct parent and 100% interest holder in VICI LP. VICI LP’s interests are not expressed in units. However, given that VICI OP has a unit ownership structure and the financial information of VICI OP is substantially identical with that of VICI LP, we have elected to present the EPU of VICI OP. Basic EPU 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 OP limited liability company agreement, for each share of common stock issued at VICI, a corresponding unit is issued by VICI OP. Accordingly, diluted EPU 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 unit 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 EPU calculations using the treasury stock method for the period outstanding prior to settlement. Under this method, the number of units used in calculating diluted EPU 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 agreement, the delivery of shares of VICI common stock resulted in an increase in the number of VICI OP units outstanding and resulting dilution to EPU. The following tables reconcile the weighted-average units outstanding used in the calculation of basic EPU to the weighted-average units outstanding used in the calculation of diluted EPU:
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Stock-Based Compensation |
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Stock-Based Compensation | Stock-Based Compensation The 2017 Stock Incentive Plan (the “Plan”) is designed to provide long-term equity-based compensation to our directors and employees. It is administered by the Compensation Committee of the Board of Directors. Awards under the Plan may be granted with respect to an aggregate of 12,750,000 shares of common stock and may be issued in the form of: (a) incentive stock options, (b) non-qualified stock options, (c) stock appreciation rights, (d) dividend equivalent rights, (e) restricted stock, (f) restricted stock units or (g) unrestricted stock. In addition, the Plan limits the total number of shares of common stock with respect to which awards may be granted to any employee or director during any one calendar year. At March 31, 2023, 10.2 million shares of common stock remained available for issuance by us as equity awards under the Plan. The following table details the stock-based compensation expense recorded as General and administrative expense in the Statement of Operations:
The following table details the activity of our time-based restricted stock and performance-based restricted stock units:
As of March 31, 2023, there was $29.0 million of unrecognized compensation cost related to non-vested stock-based compensation arrangements under the Plan. This cost is expected to be recognized over a weighted average period of 2.2 years.
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information set forth in the Accounting Standards Codification (“ASC”), as published by the Financial Accounting Standards Board (“FASB”), and with the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). The Financial Statements, including the notes thereto, are unaudited and condense or exclude some of the disclosures and information normally required in audited financial statements. We believe the disclosures made are adequate to prevent the information presented from being misleading. However, the accompanying unaudited Financial Statements and related notes should be read in conjunction with our audited financial statements and notes thereto included in our most recent Annual Report on Form 10-K, as updated from time to time in our other filings with the SEC. All adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of results for the interim period have been included. Certain prior period amounts have been reclassified to conform to the current period presentation.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
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Principles of Consolidation and Non-controlling Interest | Principles of Consolidation The accompanying consolidated financial statements include our accounts and the accounts of VICI LP, and the subsidiaries in which we or VICI LP has a controlling interest. All intercompany account balances and transactions have been eliminated in consolidation. We consolidate all subsidiaries in which we have a controlling financial interest and variable interest entities for which we or one of our consolidated subsidiaries is the primary beneficiary. Non-controlling Interests We present non-controlling interests and classify such interests as a component of consolidated stockholders’ equity or partners’ capital, separate from VICI stockholders’ equity and VICI LP partners’ capital. As of March 31, 2023, VICI’s non-controlling interests represent an approximate 1.2% third-party ownership of VICI OP in the form of VICI OP Units and a 20% third-party ownership of Harrah’s Joliet LandCo LLC, the entity that owns the Harrah’s Joliet facility and is the lessor under the related Joliet Lease. As VICI OP is a parent entity of VICI LP, VICI LP’s only non-controlling interest is that of third-party ownership of Harrah’s Joliet LandCo LLC.
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Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashCash consists of cash-on-hand and cash-in-bank. Any investments with an original maturity of three months or less from the date of purchase are considered cash equivalents and are carried at cost, which approximates fair value. As of March 31, 2023 and December 31, 2022, we did not have any restricted cash. |
Short-Term Investments | Short-Term Investments Investments with an original maturity of greater than three months and less than one year from the date of purchase are considered short-term investments and are stated at fair value. We may invest our excess cash in short-term investment grade commercial paper as well as discount notes issued by government-sponsored enterprises including the Federal Home Loan Mortgage Corporation and certain of the Federal Home Loan Banks. These investments generally have original maturities between 91 and 180 days and are accounted for as available for sale securities.
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Purchase Price Accounting | Purchase Price Accounting We assess all of our property acquisitions under ASC 805 - Business Combinations (“ASC 805”) to determine if such acquisitions should be accounted for as a business combination or an asset acquisition. Under ASC 805, an acquisition does not qualify as a business combination when (i) substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets, (ii) the acquisition does not include a substantive process in the form of an acquired workforce, or (iii) an acquired contract that cannot be replaced without significant cost, effort or delay. Generally, and to date, all of our acquisitions have been determined to be asset acquisitions and, in accordance with ASC 805-50, all applicable transaction costs are capitalized as part of the purchase price of the acquisition. We allocate the purchase price to the identifiable assets acquired and liabilities assumed, as applicable, using their relative fair value. Generally, with the exception of the MGP Transactions and the MGM Grand/Mandalay Bay JV Interest Acquisition (each as further described in Note 3 - Property Transactions), our acquisitions consist of properties without existing leases or debt and, accordingly, the assets acquired are comprised of land, building and site improvements. Further, since all the components of our leases are classified as sales-type leases or financing receivables, as further described below, the assets acquired are transferred into the net investment in lease or financing receivable, as applicable.
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Investments in Leases - Sales-type and Financing Receivables, Net, Lease Term and Income from Leases and Lease Financing Receivables | Investments in Leases - Sales-type, Net We account for our investments in leases under ASC 842 “Leases” (“ASC 842”). Upon lease inception or lease modification, we assess lease classification to determine whether the lease should be classified as a direct financing, sales-type or operating lease. As required by ASC 842, we separately assess the land and building components of the property to determine the classification of each component. If the lease component is determined to be a direct financing or sales-type lease, we record a net investment in the lease, which is equal to the sum of the lease receivable and the unguaranteed residual asset, discounted at the rate implicit in the lease. Any difference between the fair value of the asset and the net investment in the lease is considered selling profit or loss and is either recognized upon execution of the lease or deferred and recognized over the life of the lease, depending on the classification of the lease. Since we purchase properties and simultaneously enter into new leases directly with the tenants, the net investment in the lease is generally equal to the purchase price of the asset, and, due to the long-term nature of our leases, the land and building components of an investment generally have the same lease classification. We have determined that the land and building components of all of the Caesars Leases (excluding the Harrah’s New Orleans, Harrah’s Laughlin and Harrah’s Atlantic City components (the “Harrah’s Call Properties”) of the Caesars Regional Master Lease), Century Master Lease, Gold Strike Lease, Hard Rock Cincinnati Lease, MGM Grand/Mandalay Bay Lease, PENN Entertainment Leases, Southern Indiana Lease and Venetian Lease meet the definition of a sales-type lease under ASC 842. Investments in Leases - Financing Receivables, Net In accordance with ASC 842, for transactions in which we enter into a contract to acquire an asset and lease it back to the seller under a lease classified as a sales-type lease (i.e., a sale leaseback transaction), control of the asset is not considered to have transferred to us. As a result, we do not recognize the net investment in the lease but instead recognize a financial asset in accordance with ASC 310 “Receivables” (“ASC 310”); however, the accounting for the financing receivable under ASC 310 is materially consistent with the accounting for our investments in leases - sales-type under ASC 842. We determined that the land and building components of the Foundation Master Lease, Harrah’s Call Properties components of the Caesars Regional Master Lease, JACK Master Lease, MGM Master Lease and PURE Master Lease meet the definition of a sales-type lease and, since we purchased and leased the assets back to the sellers under sale leaseback transactions, control is not considered to have transferred to us under GAAP. Accordingly, such leases are accounted for as Investments in leases - financing receivables on our Balance Sheet, net of allowance for credit losses, in accordance with ASC 310. Lease Term We assess the noncancelable lease term under ASC 842, which includes any reasonably assured renewal periods. All of our Lease Agreements provide for an initial term, with multiple tenant renewal options. We have individually assessed all of our Lease Agreements and concluded that the lease term includes all of the periods covered by extension options as it is reasonably certain our tenants will renew the Lease Agreements. We believe our tenants are economically compelled to renew the Lease Agreements due to the importance of our real estate to the operation of their business, the significant capital they have invested and are required to invest in our properties under the terms of the Lease Agreements and the lack of suitable replacement assets. Income from Leases and Lease Financing Receivables We recognize the related income from our sales-type leases and lease financing receivables on an effective interest basis at a constant rate of return over the terms of the applicable leases. As a result, the cash payments accounted for under sales-type leases and lease financing receivables will not equal income from our Lease Agreements. Rather, a portion of the cash rent we receive is recorded as Income from sales-type leases or Income from lease financing receivables and loans, as applicable, in our Statement of Operations and a portion is recorded as a change to Investments in leases - sales-type, net or Investments in leases - financing receivables, net, as applicable. Initial direct costs incurred in connection with entering into investments classified as sales-type leases are included in the balance of the net investment in lease. Such amounts will be recognized as a reduction to Income from investments in leases over the life of the lease using the effective interest method. Costs that would have been incurred regardless of whether the lease was signed, such as legal fees and certain other third-party fees, are expensed as incurred to Transaction and acquisition expenses in our Statement of Operations. Loan origination fees and costs incurred in connection with entering into investments classified as lease financing receivables are included in the balance of the net investment and such amounts will be recognized as a reduction to Income from investments in loans and lease financing receivables over the life of the lease using the effective interest method.
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Investments in Loans and Securities, net | Investments in Loans and Securities, net Investments in loans are held-for-investment and are carried at historical cost, inclusive of unamortized loan origination costs and fees and allowances for credit losses. Income is recognized on an effective interest basis at a constant rate of return over the life of the related loan. We classify our investments in securities on the date of acquisition of the investment as either trading, available-for-sale or held-to-maturity. We classify our debt securities as held-to-maturity, as we have the intent and ability to hold this security until maturity, the accounting of which is materially consistent with that of our Investments in loans.
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Allowance for Credit Losses | Allowance for Credit Losses ASC 326 “Financial Instruments-Credit Losses” (“ASC 326”) requires that we measure and record current expected credit losses (“CECL”) for the majority of our investments, the scope of which includes our Investments in leases - sales-type, Investments in leases - financing receivables and Investments in loans and securities. We have elected to use a discounted cash flow model to estimate the Allowance for credit losses, or CECL allowance for our Investments in leases - sales-type, Investments in leases - financing receivables and certain of our loans and securities, which comprise the substantial majority of our CECL allowance. This model requires us to develop cash flows which project estimated credit losses over the life of the lease, loan or security and discount these cash flows at the asset’s effective interest rate. We then record a CECL allowance equal to the difference between the amortized cost basis of the asset and the present value of the expected credit loss cash flows. Expected losses within our cash flows are determined by estimating the probability of default (“PD”) and loss given default (“LGD”) of our tenants and borrowers and their parent guarantors, as applicable, over the life of each individual lease or financial asset. We have engaged a nationally recognized data analytics firm to assist us with estimating both the PD and LGD of our tenants and borrowers and their parent guarantors, as applicable. The PD and LGD are estimated during a reasonable and supportable period for which we believe we are able to estimate future economic conditions (the “R&S Period”) and a long-term period for which we revert to long-term historical averages (the “Long-Term Period”). The PD and LGD estimates for the R&S Period are developed using the current financial condition of the tenant or borrower and parent guarantor, as applicable, and applied to a projection of economic conditions over a two-year term. The PD and LGD for the Long-Term Period are estimated using the average historical default rates and historical loss rates, respectively, of public companies over approximately the past 40 years that have similar credit profiles or characteristics to our tenants, borrowers and their parent guarantors, as applicable. We are unable to use our historical data to estimate losses as we have no loss history to date. The CECL allowance is recorded as a reduction to our net Investments in leases - sales-type, Investments in leases - financing receivables, Investments in loans and securities and Sales-type sub-leases (included in Other assets) on our Balance Sheet. We are required to update our CECL allowance on a quarterly basis with the resulting change being recorded in the Statement of Operations for the relevant period. Finally, each time we make a new investment in an asset subject to ASC 326, we are required to record an initial CECL allowance for such asset, which will result in a non-cash charge to the Statement of Operations for the relevant period. We are required to estimate a CECL allowance related to contractual commitments to extend credit, such as future funding commitments under a revolving credit facility, delayed draw term loan, construction loan or through commitments made to our tenants to fund the development and construction of improvements at our properties through the Partner Property Growth Fund. We estimate the amount that we will fund for each contractual commitment based on (i) discussions with our borrowers and tenants, (ii) our borrowers’ and tenants’ business plans and financial condition and (iii) other relevant factors. Based on these considerations, we apply a CECL allowance to the estimated amount of credit we expect to extend. The CECL allowance for unfunded commitments is calculated using the same methodology as the allowance for all of our other investments subject to the CECL model. The CECL allowance related to these future commitments is recorded as a component of Other liabilities on our Balance Sheet. Charge-offs are deducted from the allowance in the period in which they are deemed uncollectible. Recoveries previously written off are recorded when received. There were no charge-offs or recoveries for the three months ended March 31, 2023 and 2022.
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Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement Our investment in the PURE Portfolio is denominated in Canadian Dollars (“CAD” or “C$”), and accordingly, we translate the financial statements of the subsidiaries that own the PURE Portfolio into U.S. Dollars (“USD” or “US$”) when we consolidate their financial results and position. Generally, assets and liabilities are translated at the exchange rate in effect at the date of the Balance Sheet and the resulting translation adjustments are included in Accumulated other comprehensive income in the Balance Sheets. Certain balance sheet items, primarily equity and capital-related accounts, are reflected at the historical exchange rate. Income Statement accounts are translated using the average exchange rate for the period. We and certain of our consolidated subsidiaries have intercompany and third-party debt that is denominated CAD, which is not our and our consolidated subsidiaries functional currency of USD. When the debt and related operating receivables and/or payables are remeasured to the functional currency of the entity, a gain or loss can result. The resulting adjustment is reflected in Other gains (losses), net in the Statement of Operations.
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Other Income and Other Expenses | Other Income and Other ExpensesOther income primarily represents sub-lease income related to certain ground and use leases. Under the Lease Agreements, the tenants are required to pay all costs associated with such ground and use leases and provides for their direct payment to the landlord. This income and the related expense are recorded on a gross basis in our Statement of Operations as required under GAAP as we are the primary obligor under these certain ground and use leases. |
Fair Value Measurements | Fair Value Measurements We measure the fair value of financial instruments based on assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs.
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Derivative Financial Instruments | Derivative Financial Instruments We record our derivative financial instruments as either Other assets or Other liabilities on our Balance Sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether we elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. We formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged transactions. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in Net income prospectively. If the hedge relationship is terminated, then the value of the derivative previously recorded in Accumulated other comprehensive income (loss) is recognized in earnings when the hedged transactions affect earnings. Changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of Accumulated other comprehensive income (loss) in our Balance Sheet with a corresponding change in Unrealized gain (loss) in cash flows hedges within Other comprehensive income on our Statement of Operations. We use derivative instruments to mitigate the effects of interest rate volatility, whether from variable rate debt or future forecasted transactions, which could unfavorably impact our future earnings and forecasted cash flows. We do not use derivative instruments for speculative or trading purposes.
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Concentrations of Credit Risk | Concentrations of Credit Risk Caesars and MGM are the guarantors of all the lease payment obligations of the tenants under the applicable leases of the properties that they each respectively lease from us. Revenue from the Caesars Leases represented 38% of our lease revenues for the three months ended March 31, 2023 and 76% of our lease revenues for the three months ended March 31, 2022. Revenue from the MGM Leases represented 39% of our lease revenues for the three months ended March 31, 2023. We did not have any revenue from the MGM Leases for the three months ended March 31, 2022 as the MGP Transactions closed on April 29, 2022. Additionally, our properties on the Las Vegas Strip generated approximately 48% and 38% of our lease revenues for the three months ended March 31, 2023 and 2022, respectively. Other than having two tenants from which we derive and will continue to derive a substantial portion of our revenue and our concentration in the Las Vegas market, we do not believe there are any other significant concentrations of credit risk.
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Real Estate Transactions (Tables) |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Acquisition | The following is a summary of our net assets acquired upon consolidation of the MGM Grand/Mandalay Bay JV:
Under ASC 805-50, we allocated the net assets acquired by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the consolidation of the MGM Grand/Mandalay Bay JV:
____________________ (1) Amount represents their current carrying value, which is equal to fair value. (2) Amount represents the fair value of the $3.0 billion principal amount of CMBS debt as of January 9, 2023, which was estimated as a $252.1 million discount to principal value. The fair value of the debt was estimated by modeling the contractual cash flows and discounting them back to the present value using an estimated market yield. Additionally, we considered current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value measurement are considered Level 3 of the fair value hierarchy. The number of MGP Class A common shares converted to shares of VICI common stock was determined as follows:
____________________ (1) Amount excludes the cash paid in lieu of approximately 54 fractional MGP Class A common shares. Accordingly, the MGP Transactions were accounted for as an asset acquisition under ASC 805-50 and we determined the consideration transferred under the MGP Transactions was $11.6 billion, comprised of the following:
____________________ (1) Amount represents the dollar value of 214,375,990 shares of VICI common stock, multiplied by the VICI stock price at the time of closing of $30.64 per share, which were issued in exchange for the MGP Class A common shares outstanding immediately prior to the REIT Merger and certain of the MGP stock-based compensation awards, converted to shares of VICI common stock. (2) Amount represents 12,231,373 VICI OP Units retained by MGM as non-controlling interest in VICI OP, multiplied by the VICI stock price at the time of closing of $30.64 per share. (3) Represents the total amount outstanding under MGP’s revolving credit facility as of April 29, 2022. In connection with the MGP Transactions, such amount was repaid in full and the related credit agreement was terminated. (4) In accordance with ASC 805-50, all direct and incremental costs related to the MGP Transactions, primarily related to success-based fees and third-party advisory fees, were included in the consideration transferred. Under ASC 805-50, we allocated the purchase price by major categories of assets acquired and liabilities assumed using relative fair value. The following is a summary of the allocated relative fair values of the assets acquired and liabilities assumed in the MGP Transactions valued as of April 29, 2022:
____________________ (1) We valued the real estate portfolio at relative fair value using rent multiples taking into consideration a variety of factors, including (i) asset quality and location, (ii) property and lease-level operating performance and (iii) supply and demand dynamics of each property’s respective market. The multiples used ranged from 15.0x - 18.5x with a weighted average rent multiple of 16.7x, as determined using relative fair value. (2) The fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. (3) We value the Investment in unconsolidated affiliate at relative fair based on our percentage ownership of the net assets of the BREIT JV. (4) Amounts represents their current carrying value which is equal to fair value. The Other assets and Other liabilities amounts include the gross presentation of certain MGP ground leases which we assumed in connection with the MGP Transactions. (5) Amount represents the fair value of debt as of April 29, 2022, which was estimated as a $93.9 million discount to the notional value. The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.
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Real Estate Portfolio (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Real Estate Portfolio | The following is a summary of the balances of our real estate portfolio as of March 31, 2023 and December 31, 2022:
____________________ (1) At lease inception (or upon modification), we determine the estimated residual values of the leased property (not guaranteed) under the respective Lease Agreements, which has a material impact on the determination of the rate implicit in the lease and the lease classification. As of March 31, 2023 and December 31, 2022, the estimated residual values of the leased properties under our Lease Agreements were $15.6 billion and $11.5 billion, respectively. (2) Represents our 50.1% investment in the MGM Grand/Mandalay Bay JV prior to the MGM Grand/Mandalay Bay JV Interest Acquisition on January 9, 2023, which was accounted for as an equity method investment.
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Schedule of Components of Direct Financing and Operating Leases | The following table details the components of our income from sales-type leases and lease financing receivables:
____________________ (1) At lease inception (or upon modification), we determine the minimum lease payments under ASC 842, which exclude amounts determined to be contingent rent. Contingent rent is generally amounts in excess of specified floors or the variable rent portion of our leases. The minimum lease payments are recognized on an effective interest basis at a constant rate of return over the life of the lease and the contingent rent portion of the lease payments are recognized as earned, both in accordance with ASC 842. As of March 31, 2023, we have recognized contingent rent from our Margaritaville Lease and Greektown Lease in relation to the variable rent portion of the respective leases and the Caesars Las Vegas Master Lease, Caesars Regional Master Lease, Joliet Lease and Century Master Lease in relation to the CPI portion of the annual escalator. (2) Represents the MGM Master Lease, Harrah’s Call Properties, JACK Master Lease, Foundation Master Lease and PURE Master Lease, all of which were sale leaseback transactions. In accordance with ASC 842, since the lease agreements were determined to meet the definition of a sales-type lease and control of the asset is not considered to have been transferred to us, such lease agreements are accounted for as financings under ASC 310. (3) Amounts represent the non-cash adjustment to the minimum lease payments from sales-type leases and lease financing receivables in order to recognize income on an effective interest basis at a constant rate of return over the term of the leases.
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Schedule of Future Minimum Lease Payments for Operating and Capital Leases | At March 31, 2023, minimum lease payments owed to us for each of the five succeeding years under sales-type leases and our leases accounted for as financing receivables, are as follows:
____________________ (1) Minimum lease payments do not include contingent rent, as discussed above, that may be received under the Lease Agreements. (2) The minimum lease payments and weighted average remaining lease term assumes the exercise of all tenant renewal options, consistent with our conclusions under ASC 842 and ASC 310.
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Schedule of Lease Agreements | The following is a summary of the material lease provisions of our Caesars Leases and MGM Leases, our two most significant tenants:
____________________ (1) On January 9, 2023, we closed on the MGM Grand/Mandalay Bay JV Interest Acquisition and acquired the remaining 49.9% interest in the MGM Grand/Mandalay Bay JV and accordingly, the amounts set forth above reflect our consolidated interest. (2) Current annual rent with respect to the Joliet Lease is presented prior to accounting for the non-controlling interest, or rent payable, to the 20% third-party ownership of Harrah’s Joliet LandCo LLC. After adjusting for the 20% non-controlling interest, combined current annual rent under the Caesars Regional Master Lease and Joliet Lease is $694.6 million. (3) Any amounts representing rents in excess of the CPI floors specified above are considered contingent rent in accordance with GAAP. (4) Variable rent is not subject to the Escalator.
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Schedule Of Capital Expenditure Requirements Under Lease Agreements | The following table summarizes the capital expenditure requirements of our tenants under their respective Lease Agreements:
____________________ (1) Represents the tenants under our other Lease Agreements not specifically outlined in the table, as specified in the respective Lease Agreements. (2) The Caesars Leases require a $107.5 million floor on annual capital expenditures for Caesars Palace Las Vegas, Joliet and the Regional Master Lease properties in the aggregate. Additionally, annual building & improvement capital improvements must be equal to or greater than 1% of prior year net revenues. (3) Certain tenants under the Caesars Leases, as applicable, are required to spend $380.3 million on capital expenditures (excluding gaming equipment) over a rolling three-year period, with $286.0 million allocated to the regional assets, $84.0 million allocated to Caesars Palace Las Vegas and the remaining balance of $10.3 million to facilities (other than the Harrah’s Las Vegas Facility) covered by any Caesars Lease in such proportion as such tenants may elect. Additionally, the tenants under the Regional Master Lease and Joliet Lease are required to expend a minimum of $531.9 million on capital expenditures (including gaming equipment) across certain of its affiliates and other assets, together with the $380.3 million requirement.
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Summary of Investments In Loans | The following is a summary of our investments in loans and securities as of March 31, 2023 and December 31, 2022:
____________________ (1) Carrying value includes unamortized loan origination costs and are net of allowance for credit losses. (2) Our future funding commitments are subject to our borrowers’ compliance with the financial covenants and other applicable provisions of each respective loan agreement. (3) The weighted average interest rate is based on current outstanding principal balance and SOFR, as applicable for floating rate loans, as of March 31, 2023. (4) Assumes all extension options are exercised; however, our loans may be repaid, subject to certain conditions, prior to such date. (5) Represents our investment in the Hard Rock Ottawa Notes, which are accounted for as held-to-maturity securities. (6) Subsequent to quarter-end, on May 1, 2023, the Forum Convention Center Mortgage Loan, representing $400.0 million in principal balance of our senior secured loans, was repaid in full.
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Allowance for Credit Losses (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Credit Loss [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Investment in Lease, Allowance for Credit Loss | The following tables detail the allowance for credit losses as of March 31, 2023 and December 31, 2022:
____________________ (1) The total allowance excludes the CECL allowance for unfunded commitments of our senior secured and mezzanine loans. As of March 31, 2023 and December 31, 2022, such allowance is $41.3 million and $45.1 million, respectively, and is recorded in Other liabilities. The following chart reflects the roll-forward of the allowance for credit losses on our real estate portfolio for the three months ended March 31, 2023 and 2022:
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Financing Receivable Credit Quality Indicators | The following tables detail the amortized cost basis of our investments by the credit quality indicator we assigned to each lease or loan guarantor as of March 31, 2023 and 2022:
____________________ (1)Excludes the CECL allowance for unfunded commitments recorded in Other liabilities as such commitments are not currently reflected on our Balance Sheet, rather the CECL allowance is based on our current best estimate of future funding commitments. (2)We estimate the CECL allowance for our senior secured and mezzanine loans, excluding the Forum Convention Center Mortgage Loan and Hard Rock Ottawa Notes, using a traditional commercial real estate model based on standardized credit metrics to estimate potential losses.
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Other Assets and Other Liabilities (Tables) |
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Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | The following table details the components of our other assets as of March 31, 2023 and December 31, 2022:
_______________________________________________________ (1) As of March 31, 2023 and December 31, 2022, sales-type sub-leases are net of $17.0 million and $19.8 million of Allowance for credit losses, respectively. Refer to Note 5 - Allowance for Credit Losses for further details.
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Schedule of Property and Equipment Used in Operations, Net | Property and equipment used in operations, included within other assets, is primarily attributable to the land, building and improvements of our golf operations and consists of the following as of March 31, 2023 and December 31, 2022:
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Schedule of Other Liabilities | The following table details the components of our other liabilities as of March 31, 2023 and December 31, 2022:
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Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following tables detail our debt obligations as of March 31, 2023 and December 31, 2022:
____________________ (1)Carrying value is net of unamortized original issue discount and unamortized debt issuance costs incurred in conjunction with debt. (2)Interest on any outstanding balance is payable monthly. Borrowings under the Revolving Credit Facility bear interest at a rate based on a credit rating-based pricing grid with a range of 0.775% to 1.325% margin plus SOFR (or CDOR, as applicable) with an additional 0.10% adjustment for SOFR loans, as applicable. Additionally, the commitment fees under the Revolving Credit Facility are calculated on a credit rating-based pricing grid with a range of 0.15% to 0.375%, depending on our credit ratings. For the three months ended March 31, 2023, the commitment fee for the Revolving Credit Facility was 0.250%. (3)On January 3, 2023, we drew on the Revolving Credit Facility in the amount of C$140.0 million to fund a portion of the purchase price of the PURE Canadian Gaming Transaction. The balance above is inclusive of foreign currency remeasurement. (4)Interest is payable monthly. (5)Interest is payable semi-annually. (6)Interest rates represent the contractual interest rates adjusted to account for the impact of the forward-starting interest rate swaps and treasury locks (as further described in Note 8 - Derivatives). The contractual interest rates on the April 2022 Notes maturing 2028, 2030 and 2032 are 4.750%, 4.950% and 5.125%, respectively. (7)The interest rate represents the weighted average interest rates of the Senior Unsecured Notes adjusted to account for the impact of the forward-starting interest rate swaps and treasury locks (as further described in Note 8 - Derivatives), as applicable. The contractual weighted average interest rate as of March 31, 2023, which excludes the impact of the forward-starting interest rate swaps and treasury locks, is 4.45%. (8)The Delayed Draw Term Loan was available to be drawn up to 12 months following the effective date of February 8, 2022. On February 8, 2023, the Delayed Draw Term Loan facility expired undrawn in accordance with its terms.
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Schedule of Contractual Obligation, Fiscal Year Maturity Schedule | The following table is a schedule of future minimum principal payments of our debt obligations as of March 31, 2023:
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Derivatives (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivatives | The following table details our outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk as of March 31, 2023. As of December 31, 2022, there were no derivative instruments outstanding.
The following table presents the effect of our forward-starting derivative financial instruments on our Statement of Operations:
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Fair Value (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Net Derivative Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes our assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:
___________________ (1) The fair values of our interest rate swap derivative instruments were estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising interest rate curves and credit spreads, which are Level 2 measurements as defined under ASC 820. (2) The carrying value of these investments is equal to their fair value due to the short-term nature of the investments as well as their credit quality.
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Schedule Of Estimated Fair Value | The estimated fair values of our financial instruments as of March 31, 2023 and December 31, 2022 for which fair value is only disclosed are as follows:
____________________ (1)These investments represent the JACK Master Lease, the Harrah’s Call Properties, the MGM Master Lease, the Foundation Master Lease and the PURE Master Lease. In relation to the Harrah’s Call Properties, JACK Master Lease and MGM Master Lease the fair value of these assets is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to the Foundation Master Lease and PURE Master Lease, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates the purchase price of the acquisition of these financial assets. (2)These investments represent our investments in eleven senior secured and mezzanine loans and one series of senior secured notes. The fair value of investments in loans is based on significant “unobservable” market inputs and, as such, these fair value measurements are considered Level 3 of the fair value hierarchy. In relation to our investments in securities, representing the Hard Rock Ottawa Notes, given the proximity of the date of our investment to the date of the financial statements, we determined that the fair value materially approximates the purchase price of the acquisition of these financial assets. (3)The fair value of our debt instruments was estimated using quoted prices for identical or similar liabilities in markets that are not active and, as such, these fair value measurements are considered Level 2 of the fair value hierarchy.
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Commitments and Contingent Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Lease Cost | Total rental expense, included in golf operations and general and administrative expenses in our Statement of Operations and contractual rent expense under these agreements were as follows:
Total rental income and rental expense, included in Other income and Other expenses, respectively, in our Statement of Operations and contractual rent expense under these agreements were as follows:
Total rental income and rental expense, included in Other income and Other expenses, respectively, in our Statement of Operations and contractual rent expense under these agreements were as follows:
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Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease commitments relating to the base lease rent portion of noncancelable operating leases at March 31, 2023 are as follows:
The future minimum lease commitments relating to the sub-leases at March 31, 2023 are as follows:
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Schedule of Assets And Liabilities, Lessor |
The following table details the balance and location in our Balance Sheet of the ground and use sub-leases as of March 31, 2023 and December 31, 2022:
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Schedule of Finance Lease, Liability, Maturity | The future minimum lease commitments relating to the ground and use sub-leases at March 31, 2023 are as follows:
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Stockholders' Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Forward Contracts Indexed to Issuer's Equity | The following table summarizes the terms of the forward sale agreements outstanding as of March 31, 2023:
____________________ (1)The forward sale agreements generally require settlement within twelve months of the trade date, which is January 16, 2024 with respect to the January 2023 Offering. (2)The amount is inclusive of 3,952,500 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional common stock. (3)As of March 31, 2023, the net forward sales price per share under the January 2023 Offering was $31.69 and would result in us receiving approximately $960.4 million in net cash proceeds if we were to physically settle the shares. Alternatively, if we were to cash settle the shares under the January 2023 Offering, it would result in a cash outflow of $28.1 million, or, if we were to net share settle the shares under the January 2023 Offering, it would result in us issuing approximately 0.9 million shares. (4)Subsequent to quarter-end, on April 4, 2023, we physically settled 3,200,000 shares under the January 2023 Forward Sale Agreements at a forward share price of $31.71 per share, in exchange for total net proceeds of approximately $101.5 million. The following table summarizes settlement activity of the outstanding forward sale agreements during the three months ended March 31, 2023 and 2022:
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Schedule of Shares Sold Activity | The following table summarizes our settlement activity of the outstanding forward shares under the ATM Program, all of which were sold subject to a forward sale agreement (collectively, the “ATM Forward Sale Agreements”) and the previous equity distribution agreement, as applicable, during the three months ended March 31, 2023. As of March 31, 2023, we do not have any forward shares outstanding under the ATM Program.
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Schedule Of Common Stock Shares Outstanding | The following table details the issuance of outstanding shares of common stock, including restricted common stock:
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Schedule of Dividends Declared | Dividends declared (on a per share basis) during the three months ended March 31, 2023 and 2022 were as follows:
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Earnings Per Share and Earnings Per Unit (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average 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:
The following tables reconcile the weighted-average units outstanding used in the calculation of basic EPU to the weighted-average units outstanding used in the calculation of diluted EPU:
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Stock-Based Compensation (Tables) |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allocated Share-based Compensation Expense | The following table details the stock-based compensation expense recorded as General and administrative expense in the Statement of Operations:
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Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The following table details the activity of our time-based restricted stock and performance-based restricted stock units:
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Business and Organization (Details) |
Mar. 31, 2023
property
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Organization, Consolidation and Presentation of Financial Statements | |
Number of real estate properties (properties) | 49 |
Golf Courses | |
Organization, Consolidation and Presentation of Financial Statements | |
Number of real estate properties (properties) | 4 |
Real Estate Transactions - Asset Acquisition (Details) $ / shares in Units, $ in Thousands |
Jan. 09, 2023
USD ($)
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Apr. 29, 2022
USD ($)
$ / shares
shares
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Mar. 31, 2023 |
Jan. 08, 2023 |
Jul. 30, 2021
$ / shares
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Asset Acquisition [Line Items] | |||||
Equity interest | $ 4,404,000 | ||||
Share price (in dollars per share) | $ / shares | $ 43.00 | ||||
BREIT JV | |||||
Asset Acquisition [Line Items] | |||||
Equity method investment ownership percentage | 50.10% | ||||
Minimum | |||||
Asset Acquisition [Line Items] | |||||
Rent multiple | 15.0 | ||||
Maximum | |||||
Asset Acquisition [Line Items] | |||||
Rent multiple | 18.5 | ||||
Weighted Average | |||||
Asset Acquisition [Line Items] | |||||
Share price (in dollars per share) | $ / shares | $ 31.47 | ||||
Rent multiple | 16.7 | ||||
MGM Grand Mandalay Bay JV | |||||
Asset Acquisition [Line Items] | |||||
Equity interest | $ 1,458,782 | ||||
Consideration paid for MGM Grand/Mandalay Bay JV Interest Acquisition | 1,261,882 | ||||
Transaction costs | 14,630 | ||||
Investments in leases - sales-type | 5,494,351 | ||||
Cash and cash equivalents | 9,607 | ||||
Debt, net | (2,747,877) | ||||
Accrued expenses and deferred revenue | (20,787) | ||||
Total net assets acquired | 2,735,294 | ||||
Debt, gross | 3,000,000 | ||||
Debt discount | 252,100 | ||||
Total consideration transferred | $ 1,261,882 | ||||
MGP | |||||
Asset Acquisition [Line Items] | |||||
Equity interest | $ 6,568,480 | ||||
Consideration paid for MGM Grand/Mandalay Bay JV Interest Acquisition | 11,556,990 | ||||
Transaction costs | 119,741 | ||||
Investment in leases - financing receivables | 14,245,868 | ||||
Investment in unconsolidated affiliate | 1,465,814 | ||||
Cash and cash equivalents | 25,387 | ||||
Other assets | 338,212 | ||||
Debt, net | (4,106,082) | ||||
Accrued expenses and deferred revenue | (79,482) | ||||
Other liabilities | (332,727) | ||||
Total net assets acquired | $ 11,556,990 | ||||
MGP Common Shares outstanding as of April 29, 2022 (in shares) | shares | 156,757,773 | ||||
Exchange ratio (in shares) | shares | 1.366 | ||||
VICI common stock issued (in shares) | shares | 214,131,064 | ||||
VICI common stock issued for MGP stock-based compensation awards (in shares) | shares | 421,468 | ||||
Total VICI common stock Issued (in shares) | shares | 214,552,532 | ||||
Fractional common shares excluded (in shares) | shares | 54 | ||||
Redemption payment to MGM | $ 4,404,000 | ||||
VICI OP Units retained by MGM | 374,769 | ||||
Repayment of MGP revolving credit facility | 90,000 | ||||
Total consideration transferred | 11,556,990 | ||||
Total purchase price | $ 17,259,990 | ||||
Asset acquisition, number of shares issued (in shares) | shares | 214,375,990 | ||||
Share price (in dollars per share) | $ / shares | $ 30.64 | ||||
Asset acquisition, number of units retained noncontrolling interests (in units) | shares | 12,231,373 | ||||
Debt discount | $ 93,900 | ||||
MGP | BREIT JV | |||||
Asset Acquisition [Line Items] | |||||
Equity method investment ownership percentage | 100.00% | 50.10% | 50.10% | ||
MGP | MGP OP Notes and Exchange Notes | |||||
Asset Acquisition [Line Items] | |||||
Assumption of debt | $ 4,200,000 | ||||
MGP | BREIT CMBS Debt | |||||
Asset Acquisition [Line Items] | |||||
Assumption of debt | $ 1,503,000 |
Real Estate Portfolio - Narrative (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023
casino
leaseArrangement
property
loan
|
Jan. 09, 2023 |
Jan. 08, 2023 |
Apr. 29, 2022 |
|
Real Estate | ||||
Number of casinos | casino | 25 | |||
Number of lease arrangements | 10 | |||
Financing receivable, investment in lease, number of casinos | casino | 24 | |||
Financing receivable, investment in lease, number of lease arrangements | 7 | |||
Number of loans and securities | loan | 11 | |||
Number of properties | property | 49 | |||
Number of lease agreement | 16 | |||
Variable Rent | ||||
Real Estate | ||||
Variable rent split | 20.00% | |||
Minimum | ||||
Real Estate | ||||
Initial term | 15 years | |||
Lessor, sales-type lease, renewal term | 5 years | |||
Annual escalation rate | 1.00% | |||
Maximum | ||||
Real Estate | ||||
Initial term | 30 years | |||
Lessor, sales-type lease, renewal term | 30 years | |||
Annual escalation rate | 2.00% | |||
BREIT JV | ||||
Real Estate | ||||
Equity method investment ownership percentage | 50.10% | |||
MGP | BREIT JV | ||||
Real Estate | ||||
Equity method investment ownership percentage | 50.10% | 100.00% | 50.10% |
Real Estate Portfolio - Schedule Real Estate Portfolio (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Jan. 09, 2023 |
Jan. 08, 2023 |
Dec. 31, 2022 |
Apr. 29, 2022 |
||
---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable | |||||||
Investments in leases - sales-type, net | $ 22,579,820 | $ 17,172,325 | |||||
Total investments in leases, net | 39,631,007 | 33,913,095 | |||||
Investment in unconsolidated affiliate | 0 | 1,460,775 | |||||
Land | 153,560 | 153,560 | |||||
Total real estate portfolio | 40,671,091 | 36,213,223 | |||||
Estimated residual value of leased properties and financing receivables | $ 15,600,000 | 11,500,000 | |||||
BREIT JV | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Equity method investment ownership percentage | 50.10% | ||||||
BREIT JV | MGP | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Equity method investment ownership percentage | 50.10% | 100.00% | 50.10% | ||||
Investments in leases - financing receivables, net | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Investments in leases and loans | [1] | $ 17,051,187 | 16,740,770 | ||||
Investments in loans and securities, net | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Investments in leases and loans | [1] | $ 886,524 | $ 685,793 | ||||
|
Real Estate Portfolio - Schedule of Components of Direct Financing and Operating Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Real Estate | ||
Income from sales-type leases | $ 478,394 | $ 326,735 |
Income from lease financing receivables, loans and securities | 371,069 | 72,878 |
Total lease revenue | 833,232 | 389,754 |
Non-cash adjustment | (122,841) | (35,553) |
Total contractual lease revenue | 710,391 | 354,201 |
Fixed Rent | ||
Real Estate | ||
Income from sales-type leases | 459,490 | 322,258 |
Income from lease financing receivables, loans and securities | 352,328 | 63,019 |
Contingent Rent | ||
Real Estate | ||
Income from sales-type leases | 18,904 | 4,477 |
Income from lease financing receivables, loans and securities | $ 2,510 | $ 0 |
Real Estate Portfolio - Schedule of Future Minimum Lease Payments (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Sales-Type | |
2023 (remaining) | $ 1,242,554 |
2024 | 1,682,826 |
2025 | 1,712,512 |
2026 | 1,738,641 |
2027 | 1,765,545 |
2028 | 1,793,651 |
Thereafter | 77,247,331 |
Total | 87,183,060 |
Financing Receivables | |
2023 (remaining) | 859,428 |
2024 | 1,164,081 |
2025 | 1,185,650 |
2026 | 1,207,803 |
2027 | 1,230,444 |
2028 | 1,253,781 |
Thereafter | 87,195,403 |
Total | 94,096,590 |
2023 (remaining) | 2,101,982 |
2024 | 2,846,907 |
2025 | 2,898,162 |
2026 | 2,946,444 |
2027 | 2,995,989 |
2028 | 3,047,432 |
Thereafter | 164,442,734 |
Total | $ 181,279,650 |
Sales-type lease, weighted average lease term | 38 years 7 months 6 days |
Financing receivable, weighted average remaining lease term | 50 years 3 months 18 days |
Sales-type lease and financing receivables, weighted average lease term | 43 years 8 months 12 days |
Real Estate Portfolio - Schedule of Lease Agreement (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023
USD ($)
option
|
Jan. 09, 2023 |
Jan. 08, 2023 |
Apr. 29, 2022 |
|
BREIT JV | ||||
Property Subject to or Available for Operating Lease | ||||
Equity method investment ownership percentage | 50.10% | |||
MGP | BREIT JV | ||||
Property Subject to or Available for Operating Lease | ||||
Equity method investment ownership percentage | 50.10% | 100.00% | 50.10% | |
MGM Grand Mandalay Bay JV | ||||
Property Subject to or Available for Operating Lease | ||||
Percentage of voting interests acquired | 49.90% | |||
Harrah’s Joliet LandCo LLC | ||||
Property Subject to or Available for Operating Lease | ||||
Ownership percentage by noncontrolling owners | 20.00% | |||
Minimum | ||||
Property Subject to or Available for Operating Lease | ||||
Initial term | 15 years | |||
Lessor, sales-type lease, renewal term | 5 years | |||
Maximum | ||||
Property Subject to or Available for Operating Lease | ||||
Initial term | 30 years | |||
Lessor, sales-type lease, renewal term | 30 years | |||
Variable Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 20.00% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | ||||
Property Subject to or Available for Operating Lease | ||||
Initial term | 18 years | |||
Number of renewal options | option | 4 | |||
Lessor, sales-type lease, renewal term | 5 years | |||
Current base rent | $ 703,678 | |||
Variable rent percentage | 4.00% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Harrah’s Joliet LandCo LLC | ||||
Property Subject to or Available for Operating Lease | ||||
Current base rent | $ 694,600 | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Lease Years 2-5 | ||||
Property Subject to or Available for Operating Lease | ||||
Annual escalator | 1.50% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Lease Years 8-10 | Base Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 70.00% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Lease Years 8-10 | Variable Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 30.00% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Lease Years 11-15 | Base Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 80.00% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Lease Years 11-15 | Variable Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 20.00% | |||
Caesars Regional Master and Joliet Lease Properties | Regional Master Lease and Joliet Lease | Lease Years 6 Through 18 | ||||
Property Subject to or Available for Operating Lease | ||||
Annual escalator | 2.00% | |||
Caesars Las Vegas Master Lease Properties | Caesars Las Vegas Master Lease | ||||
Property Subject to or Available for Operating Lease | ||||
Initial term | 18 years | |||
Number of renewal options | option | 4 | |||
Lessor, sales-type lease, renewal term | 5 years | |||
Current base rent | $ 454,478 | |||
Annual escalator | 2.00% | |||
Variable rent percentage | 4.00% | |||
Caesars Las Vegas Master Lease Properties | Caesars Las Vegas Master Lease | Base Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 80.00% | |||
Caesars Las Vegas Master Lease Properties | Caesars Las Vegas Master Lease | Variable Rent | ||||
Property Subject to or Available for Operating Lease | ||||
Variable rent split | 20.00% | |||
MGM Master Lease Properties | MGM Master Lease Agreement | ||||
Property Subject to or Available for Operating Lease | ||||
Initial term | 25 years | |||
Number of renewal options | option | 3 | |||
Lessor, sales-type lease, renewal term | 10 years | |||
Current base rent | $ 744,600 | |||
MGM Master Lease Properties | MGM Master Lease Agreement | Lease Years 2 Through 10 | Minimum | ||||
Property Subject to or Available for Operating Lease | ||||
Annual escalator | 2.00% | |||
MGM Master Lease Properties | MGM Master Lease Agreement | Lease Years 11 Through 25 | Minimum | ||||
Property Subject to or Available for Operating Lease | ||||
Annual escalator | 2.00% | |||
MGM Master Lease Properties | MGM Master Lease Agreement | Lease Years 11 Through 25 | Maximum | ||||
Property Subject to or Available for Operating Lease | ||||
Annual rent increase, cap percent | 3.00% | |||
MGM Grand/Mandalay Bay Lease Agreement Properties | MGM Grand Mandalay Bay Lease | ||||
Property Subject to or Available for Operating Lease | ||||
Initial term | 30 years | |||
Number of renewal options | option | 2 | |||
Lessor, sales-type lease, renewal term | 10 years | |||
Current base rent | $ 309,873 | |||
MGM Grand/Mandalay Bay Lease Agreement Properties | MGM Grand Mandalay Bay Lease | Lease Years 2 Through 15 | Minimum | ||||
Property Subject to or Available for Operating Lease | ||||
Annual escalator | 2.00% | |||
MGM Grand/Mandalay Bay Lease Agreement Properties | MGM Grand Mandalay Bay Lease | Lease Years 16 Through 30 | Minimum | ||||
Property Subject to or Available for Operating Lease | ||||
Annual escalator | 2.00% | |||
MGM Grand/Mandalay Bay Lease Agreement Properties | MGM Grand Mandalay Bay Lease | Lease Years 16 Through 30 | Maximum | ||||
Property Subject to or Available for Operating Lease | ||||
Annual rent increase, cap percent | 3.00% |
Real Estate Portfolio - Schedule of Capital Expenditure Requirements (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
CEOC | |
Real Estate | |
Rolling three-year minimum | $ 380.3 |
Minimum amount to be expended across certain affiliates and other assets | $ 531.9 |
Regional Master Lease and Joliet Lease | |
Real Estate | |
Yearly minimum expenditure | 1.00% |
Rolling three-year minimum | $ 311.0 |
Caesars Las Vegas Master Lease | |
Real Estate | |
Yearly minimum expenditure | 1.00% |
Rolling three-year minimum | $ 84.0 |
Caesars Las Vegas Master Lease | CEOC | |
Real Estate | |
Rolling three-year minimum | $ 84.0 |
Venetian Lease Agreement | |
Real Estate | |
Yearly minimum expenditure | 2.00% |
MGM Grand Mandalay Bay Lease | |
Real Estate | |
Yearly minimum expenditure | 3.50% |
Yearly minimum expenditure, percentage of monthly reserves | 1.50% |
CPLV, Joliet And Non-CPLV Lease Agreement | |
Real Estate | |
Capital expenditures | $ 107.5 |
Percentage of prior year net revenues | 1.00% |
CPLV, Joliet And Non-CPLV Lease Agreement | CEOC | |
Real Estate | |
Additional capital expenditure requirement | $ 10.3 |
Non-CPLV Lease Agreement | CEOC | |
Real Estate | |
Rolling three-year minimum | $ 286.0 |
All Other Leases | |
Real Estate | |
Yearly minimum expenditure | 1.00% |
Real Estate Portfolio - Summary of Investment in Loans (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
May 01, 2023 |
|
Loans and Leases Receivable Disclosure | |||
Principal Balance | $ 904,620 | $ 692,498 | |
Future funding commitments | $ 971,809 | $ 1,098,931 | |
Weighted Average Interest Rate | 8.70% | 8.20% | |
Weighted Average Term | 4 years | 3 years 6 months | |
Investments in loans and securities, net | |||
Loans and Leases Receivable Disclosure | |||
Carrying Value | $ 886,524 | $ 685,793 | |
Senior Notes | |||
Loans and Leases Receivable Disclosure | |||
Principal Balance | 85,000 | ||
Future funding commitments | $ 0 | ||
Weighted Average Interest Rate | 11.00% | ||
Weighted Average Term | 8 years | ||
Senior Notes | Investments in loans and securities, net | |||
Loans and Leases Receivable Disclosure | |||
Carrying Value | $ 77,996 | ||
Senior Loan | |||
Loans and Leases Receivable Disclosure | |||
Principal Balance | 526,110 | 495,901 | |
Future funding commitments | $ 649,810 | $ 584,049 | |
Weighted Average Interest Rate | 7.80% | 7.80% | |
Weighted Average Term | 3 years 1 month 6 days | 3 years 2 months 12 days | |
Senior Loan | Investments in loans and securities, net | |||
Loans and Leases Receivable Disclosure | |||
Carrying Value | $ 523,707 | $ 492,895 | |
Senior Loan | Forum Convention Center Mortgage Loan | Subsequent Event | |||
Loans and Leases Receivable Disclosure | |||
Principal Balance | $ 400,000 | ||
Mezzanine Loan | |||
Loans and Leases Receivable Disclosure | |||
Principal Balance | 293,510 | 196,597 | |
Future funding commitments | $ 321,999 | $ 514,882 | |
Weighted Average Interest Rate | 9.70% | 9.10% | |
Weighted Average Term | 4 years 3 months 18 days | 4 years 3 months 18 days | |
Mezzanine Loan | Investments in loans and securities, net | |||
Loans and Leases Receivable Disclosure | |||
Carrying Value | $ 284,821 | $ 192,898 |
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Credit Loss [Abstract] | ||
Increase (decrease) in allowance for credit losses | $ 111,477 | $ 80,820 |
Initial allowance from current period investments | $ 234,064 | $ 76,037 |
Allowance for Credit Losses - Net Investment in Lease, Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
|||
Amortized Cost | |||||
Investments in leases - sales-type, net | $ 23,296,424 | $ 17,742,712 | |||
Other assets - sales-type sub-leases, amortized cost | 784,407 | 784,259 | |||
Amortized cost, total | 42,723,768 | 36,687,106 | $ 21,330,419 | ||
Allowance | |||||
Sales-type and direct financing, allowance for credit losses | (716,604) | (570,387) | |||
Other Assets Sales-type Subleases Allowance For Credit Losses | (16,971) | (19,750) | |||
Allowance, total | (1,438,801) | (1,323,709) | |||
Net Investment | |||||
Investments in leases - sales-type, net | 22,579,820 | 17,172,325 | |||
Other assets - sales-type sub-leases | 767,436 | 764,509 | |||
Net investment total | $ 41,284,967 | $ 35,363,397 | |||
Allowance as a % of Amortized Cost | |||||
Sales-type and Direct financing, allowance as a percentage of amortized cost | 3.08% | 3.21% | |||
Other assets - sales-type sub-leases, allowance as a percentage of amortized cost, total | 2.16% | 2.52% | |||
Allowance as a percentage of amortized cost, total | 3.37% | 3.61% | |||
CECL allowance for unfunded commitments | $ 41,308 | $ 45,110 | |||
Investments in leases - financing receivables, net | |||||
Amortized Cost | |||||
Notes receivable, amortized cost | 17,740,690 | 17,467,477 | |||
Allowance | |||||
Financing and loans receivable, allowance for credit losses | (689,503) | (726,707) | |||
Net Investment | |||||
Notes receivable | [1] | $ 17,051,187 | $ 16,740,770 | ||
Allowance as a % of Amortized Cost | |||||
Notes receivable allowance as a percentage of amortized cost, total | 3.89% | 4.16% | |||
Investments in loans and securities | |||||
Net Investment | |||||
Notes receivable | $ 886,524 | $ 685,793 | |||
Investments in loans and securities, net | |||||
Amortized Cost | |||||
Notes receivable, amortized cost | 902,247 | 692,658 | |||
Allowance | |||||
Financing and loans receivable, allowance for credit losses | (15,723) | (6,865) | |||
Net Investment | |||||
Notes receivable | [1] | $ 886,524 | $ 685,793 | ||
Allowance as a % of Amortized Cost | |||||
Notes receivable allowance as a percentage of amortized cost, total | 1.74% | 0.99% | |||
|
Allowance for Credit Losses - Allowance for Credit Losses Rollforward (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Net Investment in Lease, Allowance for Credit Loss | ||
Beginning balance | $ 1,368,819 | $ 534,326 |
Initial allowance from current period investments | 234,064 | 76,037 |
Current period change in credit allowance | (122,774) | 4,783 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Ending balance | $ 1,480,109 | $ 615,146 |
Allowance for Credit Losses - Financing Receivable Credit Quality (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | $ 42,723,768 | $ 36,687,106 | $ 21,330,419 |
Ba2 | |||
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | 4,264,385 | 4,198,118 | |
Ba3 | |||
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | 33,078,752 | 949,418 | |
B1 | |||
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | 3,208,259 | 14,918,185 | |
B2 | |||
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | 877,306 | 870,774 | |
B3 | |||
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | 875,296 | 279,740 | |
N/A | |||
Financing Receivable, Credit Quality Indicator | |||
Investments in leases - sales-type and financing receivable, Investments in loans and Other assets | $ 419,770 | $ 114,183 |
Other Assets and Other Liabilities - Schedule of Other Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities [Abstract] | ||
Sales-type sub-leases, net | $ 767,436 | $ 764,509 |
Property and equipment used in operations, net | 67,383 | 67,209 |
Right of use assets and sub-lease right of use assets | 43,377 | 45,008 |
Debt financing costs | 14,155 | 18,646 |
Deferred acquisition costs | 12,245 | 12,834 |
Prepaid expenses | 7,821 | 7,348 |
Tenant receivables | 7,743 | 5,498 |
Other receivables | 7,131 | 6,474 |
Interest receivable | 5,633 | 6,911 |
Other | 1,125 | 1,891 |
Total other assets | 934,049 | 936,328 |
Other assets (sales-type sub-leases), allowance for credit losses | $ 16,971 | $ 19,750 |
Other Assets and Other Liabilities - Schedule of Property and Equipment Used in Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Property, Plant and Equipment | |||
Total property and equipment used in operations | $ 86,009 | $ 85,020 | |
Less: accumulated depreciation | (18,626) | (17,811) | |
Total property and equipment used in operations, net | 67,383 | 67,209 | |
Depreciation expense | 814 | $ 776 | |
Land and land improvements | |||
Property, Plant and Equipment | |||
Total property and equipment used in operations | 60,351 | 60,332 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Total property and equipment used in operations | 15,219 | 15,125 | |
Furniture and equipment | |||
Property, Plant and Equipment | |||
Total property and equipment used in operations | $ 10,439 | $ 9,563 |
Other Assets and Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Other Liabilities [Abstract] | ||
Finance sub-lease liabilities | $ 784,407 | $ 784,259 |
Deferred financing liabilities | 73,600 | 73,600 |
Lease liabilities and sub-lease liabilities | 43,377 | 45,039 |
CECL allowance for unfunded commitments | 41,308 | 45,110 |
Derivative liability | 7,393 | 0 |
Deferred income taxes | 4,333 | 4,339 |
Other | 125 | 125 |
Total other liabilities | $ 954,543 | $ 952,472 |
Debt - Schedule Of Outstanding Indebtedness (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Feb. 08, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Apr. 29, 2022 |
Feb. 05, 2020 |
Nov. 26, 2019 |
|
Debt Instrument | ||||||
Weighted average interest rate | 4.34% | 4.496% | ||||
Principal Amount | $ 17,053,572 | $ 13,950,000 | ||||
Carrying Value | $ 16,606,240 | 13,739,675 | ||||
Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.00% | |||||
Secured Overnight Financing Rate (SOFR) | USD | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.05% | |||||
Canadian Dollar Offered Rate (CDOR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.00% | |||||
Canadian Dollar Offered Rate (CDOR) | CAD | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.05% | |||||
Unsecured Debt | ||||||
Debt Instrument | ||||||
Weighted average interest rate | 4.45% | |||||
Unsecured Debt | Delayed Draw Term Loan | ||||||
Debt Instrument | ||||||
Principal Amount | 0 | |||||
Carrying Value | $ 0 | |||||
Unsecured Debt | Delayed Draw Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.20% | |||||
Unsecured Debt | MGM Grand/Mandalay Bay JV CMBS Debt | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.558% | |||||
Principal Amount | $ 3,000,000 | |||||
Carrying Value | $ 2,753,800 | |||||
Unsecured Debt | November 2019 Notes Senior Unsecured Notes due 2026 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.25% | 4.25% | 4.25% | |||
Principal Amount | $ 1,250,000 | $ 1,250,000 | ||||
Carrying Value | $ 1,239,538 | $ 1,238,825 | ||||
Unsecured Debt | November 2019 Notes Senior Unsecured Notes due 2029 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.625% | 4.625% | 4.625% | |||
Principal Amount | $ 1,000,000 | $ 1,000,000 | ||||
Carrying Value | $ 989,331 | $ 988,931 | ||||
Unsecured Debt | February 2020 Notes Senior Unsecured Notes due 2025 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | |||
Principal Amount | $ 750,000 | $ 750,000 | ||||
Carrying Value | $ 745,606 | $ 745,020 | ||||
Unsecured Debt | February 2020 Notes Senior Unsecured Notes due 2027 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | |||
Principal Amount | $ 750,000 | $ 750,000 | ||||
Carrying Value | $ 743,505 | $ 743,086 | ||||
Unsecured Debt | February 2020 Notes Senior Unsecured Notes due 2030 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.125% | 4.125% | 4.125% | |||
Principal Amount | $ 1,000,000 | $ 1,000,000 | ||||
Carrying Value | $ 988,999 | $ 988,626 | ||||
Unsecured Debt | 4.375% Senior Unsecured Notes Due 2025 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.375% | 4.375% | 4.375% | |||
Principal Amount | $ 500,000 | $ 500,000 | $ 500,000 | |||
Carrying Value | $ 496,701 | $ 496,314 | ||||
Unsecured Debt | 4.750% Senior Unsecured Notes Due 2028 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.75% | 4.75% | ||||
Hedge adjusted interest rate | 4.516% | 4.516% | ||||
Principal Amount | $ 1,250,000 | $ 1,250,000 | $ 1,250,000 | |||
Carrying Value | $ 1,237,710 | $ 1,237,082 | ||||
Unsecured Debt | 4.950% Senior Unsecured Notes Due 2030 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.95% | 4.95% | ||||
Hedge adjusted interest rate | 4.541% | 4.541% | ||||
Principal Amount | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | |||
Carrying Value | $ 988,050 | $ 987,618 | ||||
Unsecured Debt | 5.125% Senior Unsecured Notes Due 2032 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.125% | 5.125% | ||||
Hedge adjusted interest rate | 3.98% | 3.98% | ||||
Principal Amount | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||
Carrying Value | $ 1,481,308 | $ 1,480,799 | ||||
Unsecured Debt | 5.625% Senior Unsecured Notes Due 2052 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% | |||
Principal Amount | $ 750,000 | $ 750,000 | $ 750,000 | |||
Carrying Value | $ 735,483 | $ 735,360 | ||||
Unsecured Debt | Exchange Notes Senior Unsecured Notes due 2024 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% | |||
Principal Amount | $ 1,024,169 | $ 1,024,169 | $ 1,024,200 | |||
Carrying Value | $ 1,028,276 | $ 1,029,226 | ||||
Unsecured Debt | Exchange Notes Senior Unsecured Notes due 2025 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.625% | 4.625% | 4.625% | |||
Principal Amount | $ 799,368 | $ 799,368 | $ 799,400 | |||
Carrying Value | $ 785,244 | $ 783,659 | ||||
Unsecured Debt | Exchange Notes Senior Unsecured Notes due 2026 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | |||
Principal Amount | $ 480,524 | $ 480,524 | $ 480,500 | |||
Carrying Value | $ 464,191 | $ 463,018 | ||||
Unsecured Debt | Exchange Notes Senior Unsecured Notes due 2027 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | |||
Principal Amount | $ 729,466 | $ 729,466 | $ 729,500 | |||
Carrying Value | $ 737,943 | $ 738,499 | ||||
Unsecured Debt | Exchange Notes Senior Unsecured Notes due 2028 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | |||
Principal Amount | $ 349,325 | $ 349,325 | $ 349,300 | |||
Carrying Value | $ 337,168 | $ 336,545 | ||||
Unsecured Debt | Exchange Notes Senior Unsecured Notes due 2029 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.875% | 3.875% | 3.875% | |||
Principal Amount | $ 727,114 | $ 727,114 | $ 727,100 | |||
Carrying Value | $ 663,086 | $ 660,489 | ||||
Unsecured Debt | MGP OP Notes due 2024 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.625% | 5.625% | ||||
Principal Amount | $ 25,831 | $ 25,831 | 25,800 | |||
Carrying Value | $ 25,888 | $ 25,901 | ||||
Unsecured Debt | MGP OP Notes due 2025 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.625% | 4.625% | ||||
Principal Amount | $ 632 | $ 632 | 600 | |||
Carrying Value | $ 617 | $ 615 | ||||
Unsecured Debt | MGP OP Notes due 2026 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | ||||
Principal Amount | $ 19,476 | $ 19,476 | 19,500 | |||
Carrying Value | $ 18,604 | $ 18,542 | ||||
Unsecured Debt | MGP OP Notes due 2027 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 5.75% | 5.75% | ||||
Principal Amount | $ 20,534 | $ 20,534 | 20,500 | |||
Carrying Value | $ 20,521 | $ 20,520 | ||||
Unsecured Debt | MGP OP Notes due 2028 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 4.50% | 4.50% | ||||
Principal Amount | $ 675 | $ 675 | 700 | |||
Carrying Value | $ 641 | $ 639 | ||||
Unsecured Debt | MGP OP Notes due 2029 | ||||||
Debt Instrument | ||||||
Interest rate, stated percentage | 3.875% | 3.875% | ||||
Principal Amount | $ 22,886 | $ 22,886 | $ 22,900 | |||
Carrying Value | $ 20,458 | 20,361 | ||||
Senior Notes | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate adjustment (percent) | 0.10% | |||||
Senior Notes | Delayed Draw Term Loan | ||||||
Debt Instrument | ||||||
Commitment fee percentage | 0.25% | |||||
Senior Notes | Delayed Draw Term Loan | Minimum | ||||||
Debt Instrument | ||||||
Commitment fee percentage | 0.15% | |||||
Senior Notes | Delayed Draw Term Loan | Maximum | ||||||
Debt Instrument | ||||||
Commitment fee percentage | 0.375% | |||||
Revolving Credit Facility | Minimum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 0.775% | |||||
Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 0.775% | |||||
Revolving Credit Facility | Minimum | Canadian Dollar Offered Rate (CDOR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 0.00% | |||||
Revolving Credit Facility | Minimum | Base Rate | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 0.00% | |||||
Revolving Credit Facility | Maximum | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.325% | |||||
Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.325% | |||||
Revolving Credit Facility | Maximum | Canadian Dollar Offered Rate (CDOR) | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 0.325% | |||||
Revolving Credit Facility | Maximum | Base Rate | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 0.325% | |||||
Revolving Credit Facility | Unsecured Debt | USD | ||||||
Debt Instrument | ||||||
Principal Amount | $ 0 | |||||
Carrying Value | 0 | |||||
Revolving Credit Facility | Unsecured Debt | CAD | ||||||
Debt Instrument | ||||||
Principal Amount | 103,572 | |||||
Carrying Value | 103,572 | |||||
Revolving Credit Facility | Senior Notes | ||||||
Debt Instrument | ||||||
Principal Amount | $ 600,000 | |||||
Commitment fee percentage | 0.25% | |||||
Revolving Credit Facility | Senior Notes | Minimum | ||||||
Debt Instrument | ||||||
Commitment fee percentage | 0.15% | |||||
Revolving Credit Facility | Senior Notes | Maximum | ||||||
Debt Instrument | ||||||
Commitment fee percentage | 0.375% | |||||
Secured Revolving Credit Facility | Senior Notes | ||||||
Debt Instrument | ||||||
Principal Amount | 0 | |||||
Carrying Value | $ 0 | |||||
Secured Revolving Credit Facility | Senior Notes | LIBOR | ||||||
Debt Instrument | ||||||
Basis spread on variable rate (percent) | 1.05% |
Debt - Schedule of Future Minimum Repayment (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
|
---|---|
Long-term Debt, Fiscal Year Maturity | |
2023 (remaining) | $ 0 |
2024 | 1,050,000 |
2025 | 2,050,000 |
2026 | 1,853,572 |
2027 | 1,500,000 |
2028 | 1,600,000 |
Thereafter | 9,000,000 |
Total minimum principal payments | $ 17,053,572 |
Debt - Senior Unsecured Notes (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Apr. 29, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Feb. 05, 2020 |
Nov. 26, 2019 |
|
Debt Instrument | |||||
Debt instrument, face amount | $ 17,053,572 | $ 13,950,000 | |||
MGP | |||||
Debt Instrument | |||||
Liabilities incurred | $ 5,700,000 | ||||
MGP | |||||
Debt Instrument | |||||
Cash consideration | 4,404,000 | ||||
MGP OP Notes | MGP | |||||
Debt Instrument | |||||
Liabilities incurred | 4,200,000 | ||||
Unsecured Debt | |||||
Debt Instrument | |||||
Redemption price, percentage (equal to) | 100.00% | ||||
Senior Notes | Revolving Credit Facility | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 600,000 | ||||
Exchange Notes Senior Unsecured Notes due 2024 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,024,200 | $ 1,024,169 | $ 1,024,169 | ||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% | ||
Exchange Notes Senior Unsecured Notes due 2025 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 799,400 | $ 799,368 | $ 799,368 | ||
Interest rate, stated percentage | 4.625% | 4.625% | 4.625% | ||
Exchange Notes Senior Unsecured Notes due 2026 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 480,500 | $ 480,524 | $ 480,524 | ||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | ||
Exchange Notes Senior Unsecured Notes due 2027 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 729,500 | $ 729,466 | $ 729,466 | ||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | ||
Exchange Notes Senior Unsecured Notes due 2028 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 349,300 | $ 349,325 | $ 349,325 | ||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | ||
Exchange Notes Senior Unsecured Notes due 2029 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 727,100 | $ 727,114 | $ 727,114 | ||
Interest rate, stated percentage | 3.875% | 3.875% | 3.875% | ||
Senior Unsecured April 2022 Notes | |||||
Debt Instrument | |||||
Ratio of unencumbered assets to unsecured indebtedness | 1.50 | ||||
4.375% Senior Unsecured Notes Due 2025 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 500,000 | $ 500,000 | $ 500,000 | ||
Interest rate, stated percentage | 4.375% | 4.375% | 4.375% | ||
4.750% Senior Unsecured Notes Due 2028 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,250,000 | $ 1,250,000 | $ 1,250,000 | ||
Interest rate, stated percentage | 4.75% | 4.75% | |||
4.950% Senior Unsecured Notes Due 2030 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,000,000 | $ 1,000,000 | 1,000,000 | ||
Interest rate, stated percentage | 4.95% | 4.95% | |||
5.125% Senior Unsecured Notes Due 2032 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,500,000 | $ 1,500,000 | 1,500,000 | ||
Interest rate, stated percentage | 5.125% | 5.125% | |||
5.625% Senior Unsecured Notes Due 2052 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 750,000 | $ 750,000 | $ 750,000 | ||
Interest rate, stated percentage | 5.625% | 5.625% | 5.625% | ||
November 2019 Notes Senior Unsecured Notes | Unsecured Debt | |||||
Debt Instrument | |||||
Percentage of aggregate principal redeemable (percent) | 40.00% | ||||
November 2019 Notes Senior Unsecured Notes due 2026 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,250,000 | $ 1,250,000 | |||
Interest rate, stated percentage | 4.25% | 4.25% | 4.25% | ||
Redemption price, percentage (equal to) | 100.00% | ||||
November 2019 Notes Senior Unsecured Notes due 2026 | Unsecured Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,250,000 | ||||
November 2019 Notes Senior Unsecured Notes due 2029 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,000,000 | $ 1,000,000 | |||
Interest rate, stated percentage | 4.625% | 4.625% | 4.625% | ||
November 2019 Notes Senior Unsecured Notes due 2029 | Unsecured Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,000,000 | ||||
February 2020 Notes Senior Unsecured Notes due 2025 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 750,000 | $ 750,000 | |||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | ||
Redemption price, percentage (equal to) | 100.00% | ||||
February 2020 Notes Senior Unsecured Notes due 2025 | Unsecured Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 750,000 | ||||
February 2020 Notes Senior Unsecured Notes due 2027 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 750,000 | $ 750,000 | |||
Interest rate, stated percentage | 3.75% | 3.75% | 3.75% | ||
February 2020 Notes Senior Unsecured Notes due 2027 | Unsecured Debt | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 750,000 | ||||
February 2020 Notes Senior Unsecured Notes due 2030 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,000,000 | $ 1,000,000 | |||
Interest rate, stated percentage | 4.125% | 4.125% | 4.125% | ||
February 2020 Notes Senior Unsecured Notes due 2030 | Unsecured Debt | Debt Instrument, Redemption, Period Three | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 1,000,000 | ||||
February 2020 Notes Senior Unsecured Notes | Unsecured Debt | Debt Instrument, Redemption, Period One | |||||
Debt Instrument | |||||
Percentage of aggregate principal redeemable (percent) | 40.00% | ||||
MGP OP Notes due 2024 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 25,800 | $ 25,831 | $ 25,831 | ||
Interest rate, stated percentage | 5.625% | 5.625% | |||
MGP OP Notes due 2025 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | 600 | $ 632 | $ 632 | ||
Interest rate, stated percentage | 4.625% | 4.625% | |||
MGP OP Notes due 2026 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | 19,500 | $ 19,476 | $ 19,476 | ||
Interest rate, stated percentage | 4.50% | 4.50% | |||
MGP OP Notes due 2027 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | 20,500 | $ 20,534 | $ 20,534 | ||
Interest rate, stated percentage | 5.75% | 5.75% | |||
MGP OP Notes due 2028 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | 700 | $ 675 | $ 675 | ||
Interest rate, stated percentage | 4.50% | 4.50% | |||
MGP OP Notes due 2029 | Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument, face amount | $ 22,900 | $ 22,886 | $ 22,886 | ||
Interest rate, stated percentage | 3.875% | 3.875% | |||
MGP OP Notes | Unsecured Debt | |||||
Debt Instrument | |||||
Redemption price, percentage (equal to) | 100.00% | ||||
Exchange Notes | Unsecured Debt | |||||
Debt Instrument | |||||
Redemption price, percentage (equal to) | 100.00% |
Debt - New Unsecured Credit Facilities (Details) $ in Thousands, $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Jan. 03, 2023
USD ($)
|
Jan. 03, 2023
CAD ($)
|
Feb. 18, 2022
USD ($)
|
Feb. 08, 2022
USD ($)
option
|
Mar. 31, 2023
USD ($)
|
Mar. 31, 2022
USD ($)
|
Jul. 15, 2022
USD ($)
|
|
Line of Credit Facility [Line Items] | |||||||
Proceeds from Revolving Credit Facility | $ 103,400 | $ 140.0 | $ 352,704 | $ 600,000 | |||
Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 1.00% | ||||||
Federal Reserve Bank Of New York Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.50% | ||||||
Canadian Dollar Offered Rate (CDOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 1.00% | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 2,500,000 | $ 1,250,000 | |||||
Number of extension options | option | 2 | ||||||
Extension term | 6 months | ||||||
Extension fee percentage | 0.0625% | ||||||
Increase in borrowing capacity | $ 1,000,000 | ||||||
Proceeds from Revolving Credit Facility | $ 600,000 | ||||||
Revolving Credit Facility | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.775% | ||||||
Facility fee percentage | 0.15% | ||||||
Revolving Credit Facility | Minimum | Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.775% | ||||||
Revolving Credit Facility | Minimum | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.00% | ||||||
Revolving Credit Facility | Minimum | Canadian Dollar Offered Rate (CDOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.00% | ||||||
Revolving Credit Facility | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 1.325% | ||||||
Facility fee percentage | 0.375% | ||||||
Revolving Credit Facility | Maximum | Secured Overnight Financing Rate (SOFR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 1.325% | ||||||
Revolving Credit Facility | Maximum | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.325% | ||||||
Revolving Credit Facility | Maximum | Canadian Dollar Offered Rate (CDOR) | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate (percent) | 0.325% | ||||||
Delayed Draw Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000,000 |
Debt - MGM Grand/Mandalay Bay CMBS Debt (Details) $ in Millions |
Jan. 09, 2023
USD ($)
|
---|---|
MGM Grand Mandalay Bay Note due 2030 | |
Debt Instrument | |
Interest rate, stated percentage | 3.558% |
MGM Grand Mandalay Bay JV | MGM Grand Mandalay Bay Note due 2030 | |
Debt Instrument | |
Liabilities incurred | $ 1,497.0 |
BREIT JV | MGM Grand Mandalay Bay JV | MGM Grand Mandalay Bay Note due 2030 | |
Debt Instrument | |
Liabilities incurred | 3,000.0 |
BREIT JV | MGM Grand Mandalay Bay JV | MGM Grand Mandalay Bay Note due 2032 | |
Debt Instrument | |
Liabilities incurred | $ 3,000.0 |
Debt - Bridge Facilities (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Aug. 04, 2021 |
Mar. 02, 2021 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Debt Instrument | ||||
Interest expense | $ 204,360 | $ 68,142 | ||
Venetian Acquisition Bridge Facility | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 4,000,000 | |||
MGP Transactions Bridge Facility | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 9,300,000 | |||
MGP Transactions Bridge Facility | First Lien Secured Bridge Facility | ||||
Debt Instrument | ||||
Debt instrument, term | 364 days | |||
Venetian Acquisition Bridge Facility and MGP Transactions Bridge Facility | ||||
Debt Instrument | ||||
Interest expense | $ 0 | $ 12,500 | ||
Venetian Acquisition Bridge Facility and MGP Transactions Bridge Facility | First Lien Secured Bridge Facility | ||||
Debt Instrument | ||||
Debt instrument, term | 364 days |
Derivatives - Schedule of Derivatives (Details) |
Mar. 31, 2023
USD ($)
instrument
|
---|---|
3.4565% Forward-Starting Interest Rate Swap Maturing March 6, 2034 | |
Derivative | |
Number of Instruments | instrument | 1 |
Fixed Rate | 3.4565% |
Notional | $ | $ 200,000,000 |
3.0615% Forward-Starting Interest Rate Swap Maturing March 6, 2034 | |
Derivative | |
Number of Instruments | instrument | 1 |
Fixed Rate | 3.0615% |
Notional | $ | $ 50,000,000 |
Derivatives - Narrative (Details) $ in Thousands, $ in Millions |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Jan. 03, 2023
USD ($)
|
Jan. 03, 2023
CAD ($)
|
Apr. 30, 2022
USD ($)
instrument
|
Mar. 31, 2023
USD ($)
instrument
|
Mar. 31, 2022
USD ($)
|
|
Derivative | |||||
Draw on credit facility | $ 103,400 | $ 140.0 | $ 352,704 | $ 600,000 | |
Unrealized losses | 1,664 | $ 0 | |||
Secured Revolving Credit Facility | Senior Notes | |||||
Derivative | |||||
Draw on credit facility | $ 140.0 | ||||
Net Investment Hedging | |||||
Derivative | |||||
Unrealized losses | $ 2,400 | ||||
Forward-Starting Interest Rate Swap | |||||
Derivative | |||||
Number of Instruments | instrument | 5 | 2 | |||
Notional amount | $ 2,500,000 | $ 250,000 | |||
Derivative debt | 3,000,000 | ||||
Net proceeds from derivative instruments | $ 202,300 | ||||
Treasury Lock | |||||
Derivative | |||||
Number of Instruments | instrument | 2 | ||||
Notional amount | $ 500,000 | ||||
Net proceeds from derivative instruments | $ 4,500 |
Derivatives - Schedule of Derivatives on Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Derivative | ||
Unrealized (loss) gain recorded in other comprehensive income | $ (7,393) | $ 108,611 |
Reclassification of derivative gain to Interest expense | (6,037) | 0 |
Forward-Starting Interest Rate Swap | ||
Derivative | ||
Unrealized (loss) gain recorded in other comprehensive income | (7,393) | 108,611 |
Reclassification of derivative gain to Interest expense | $ (6,037) | $ 0 |
Fair Value - Recurring Basis (Details) - Recurring - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Carrying Amount | Interest Rate Swaps | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | $ 7,393 | |
Carrying Amount | Short-Term Investments | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | $ 217,342 | |
Level 1 | Fair Value | Interest Rate Swaps | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | 0 | |
Level 1 | Fair Value | Short-Term Investments | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | 0 | |
Level 2 | Fair Value | Interest Rate Swaps | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | 7,393 | |
Level 2 | Fair Value | Short-Term Investments | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | 217,342 | |
Level 3 | Fair Value | Interest Rate Swaps | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | $ 0 | |
Level 3 | Fair Value | Short-Term Investments | ||
Financial assets: | ||
Derivative instruments - forward-starting interest rate swaps | $ 0 |
Fair Value - Schedule Of Estimated Fair Values (Details) $ in Thousands |
Mar. 31, 2023
USD ($)
loan
|
Dec. 31, 2022
USD ($)
|
---|---|---|
Financial liabilities: | ||
Number of loans and securities | loan | 11 | |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | $ 247,673 | $ 208,933 |
Carrying Amount | Lease Financing Receivable | ||
Financial assets: | ||
Receivables | 17,051,187 | 16,740,770 |
Carrying Amount | Loans Receivables and Securities | ||
Financial assets: | ||
Receivables | 886,524 | 685,793 |
Carrying Amount | Revolving Credit Facility | ||
Financial liabilities: | ||
Debt | 103,572 | 0 |
Carrying Amount | Delayed Draw Term Loan | ||
Financial liabilities: | ||
Debt | 2,753,800 | 0 |
Carrying Amount | Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt | 13,748,868 | 13,739,675 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 247,673 | 208,933 |
Fair Value | Lease Financing Receivable | ||
Financial assets: | ||
Receivables | 17,566,724 | 17,871,771 |
Fair Value | Loans Receivables and Securities | ||
Financial assets: | ||
Receivables | 878,905 | 675,456 |
Fair Value | Revolving Credit Facility | ||
Financial liabilities: | ||
Debt | 103,572 | 0 |
Fair Value | Delayed Draw Term Loan | ||
Financial liabilities: | ||
Debt | 2,753,800 | 0 |
Fair Value | Senior Unsecured Notes | ||
Financial liabilities: | ||
Debt | $ 13,146,280 | $ 13,020,636 |
Commitments and Contingent Liabilities - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2023
option
| |
Loss Contingencies | |
Weighted average remaining lease term | 13 years 4 months 24 days |
Finance lease, weighted average remaining lease term | 54 years 6 months |
Operating Sub-Lease | |
Loss Contingencies | |
Weighted average remaining lease term | 5 years 2 months 12 days |
Minimum | |
Loss Contingencies | |
Operating lease, discount rate (percent) | 5.30% |
Lessee, finance lease, discount rate (percent) | 6.00% |
Minimum | Operating Sub-Lease | |
Loss Contingencies | |
Operating lease, discount rate (percent) | 2.60% |
Maximum | |
Loss Contingencies | |
Operating lease, discount rate (percent) | 5.50% |
Lessee, finance lease, discount rate (percent) | 8.00% |
Maximum | Operating Sub-Lease | |
Loss Contingencies | |
Operating lease, discount rate (percent) | 2.90% |
Cascata Golf Course | |
Loss Contingencies | |
Number of extension options | 3 |
Renewal term | 10 years |
Corporate Headquarters | |
Loss Contingencies | |
Number of extension options | 1 |
Renewal term | 5 years |
Commitments and Contingent Liabilities - Schedule of Rent Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Leases, Operating [Abstract] | |||
Rent expense | $ 498 | $ 499 | |
Contractual rent | 473 | 475 | |
Others assets (operating sub-leases) | 43,377 | $ 45,008 | |
Other liabilities (operating sub-lease liabilities) | $ 15,855 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Leases, Finance [Abstract] | |||
Sales-type sub-leases, net | $ 767,436 | $ 764,509 | |
Finance sub-lease liabilities | 784,407 | 784,259 | |
Rental expense | 14,429 | 6,484 | |
Rental income | 14,429 | 6,484 | |
Contractual rent | 14,281 | 6,678 | |
Operating Sub-Lease | |||
Leases, Operating [Abstract] | |||
Rent expense | 1,712 | 571 | |
Contractual rent | 1,631 | 528 | |
Others assets (operating sub-leases) | 27,522 | 28,953 | |
Other liabilities (operating sub-lease liabilities) | 27,522 | $ 28,953 | |
Rental income | $ 1,712 | $ 571 |
Commitments and Contingent Liabilities - Schedule Of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases | ||
2023 (remaining) | $ 1,426 | |
2024 | 1,847 | |
2025 | 1,908 | |
2026 | 1,958 | |
2027 | 1,979 | |
2028 | 2,000 | |
Thereafter | 13,138 | |
Total minimum lease commitments | 24,256 | |
Discounting factor | 8,401 | |
Lease liability | 15,855 | |
Financing Receivables | ||
2023 (remaining) | 44,487 | |
2024 | 59,039 | |
2025 | 59,174 | |
2026 | 59,174 | |
2027 | 59,174 | |
2028 | 59,174 | |
Thereafter | 2,496,361 | |
Total minimum lease commitments | 2,836,583 | |
Discounting factor | 2,052,176 | |
Finance sub-lease liability | 784,407 | $ 784,259 |
Operating Sub-Lease | ||
Operating Leases | ||
2023 (remaining) | 4,953 | |
2024 | 6,553 | |
2025 | 5,129 | |
2026 | 3,934 | |
2027 | 4,010 | |
2028 | 3,034 | |
Thereafter | 2,094 | |
Total minimum lease commitments | 29,707 | |
Discounting factor | 2,185 | |
Lease liability | $ 27,522 | $ 28,953 |
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Feb. 28, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Class of Stock | ||||
Total number of common and preferred shares authorized (in shares) | 1,400,000,000 | |||
Common stock, shares authorized (in shares) | 1,350,000,000 | 1,350,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
ATM Stock Offering Program | ||||
Class of Stock | ||||
Maximum amount of shares to be sold | $ 1,500.0 | |||
Shares issued in IPO (in shares) | 0 | 0 |
Stockholders' Equity - Forward Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Apr. 04, 2023 |
Jan. 18, 2023 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock | ||||
Aggregate Offering Value | $ 1,271,472 | $ 3,218,097 | ||
Total Net Proceeds | $ 1,272,270 | $ 3,219,123 | ||
Public Stock Offering And Forward Sales Agreement | ||||
Class of Stock | ||||
Number of Shares Settled (in shares) | 137,975,000 | |||
Forward Share Price Upon Settlement (in dollars per share) | $ 27.50 | |||
Total Net Proceeds | $ 3,794,828 | |||
Public Stock Offering And Forward Sales Agreement | January 2023 Forward Sales Agreement | ||||
Class of Stock | ||||
Shared Offered (in shares) | 30,302,500 | |||
Public Offering Price (in shares) | $ 33.00 | |||
Aggregate Offering Value | $ 999,983 | |||
Offering forward price (in dollars per share) | $ 31.85 | |||
Initial Net Value | $ 964,400 | |||
Future stock to be issued during period, shares sold pursuant to the exercise In full of underwriters' option to purchase additional common stock | 3,952,500 | |||
Offering forward price, net (in dollars per share) | $ 31.69 | |||
Forward agreement on the proceeds from issuance of common stock | $ 960,400 | |||
Forward share agreements, payments for repurchase of common stock | $ 28,100 | |||
Shares received from issuance of common stock (in shares) | 900,000 | |||
Public Stock Offering And Forward Sales Agreement | January 2023 Forward Sales Agreement | Subsequent Event | ||||
Class of Stock | ||||
Number of Shares Settled (in shares) | 3,200,000 | |||
Forward Share Price Upon Settlement (in dollars per share) | $ 31.71 | |||
Total Net Proceeds | $ 101,500 | |||
Public Stock Offering And Forward Sales Agreement | November 2022 Forward Sales Agreement | ||||
Class of Stock | ||||
Number of Shares Settled (in shares) | 18,975,000 | |||
Forward Share Price Upon Settlement (in dollars per share) | $ 30.34 | |||
Total Net Proceeds | $ 575,628 | |||
Public Stock Offering And Forward Sales Agreement | September 2021 Forward Sales Agreement | ||||
Class of Stock | ||||
Number of Shares Settled (in shares) | 50,000,000 | |||
Forward Share Price Upon Settlement (in dollars per share) | $ 27.81 | |||
Total Net Proceeds | $ 1,390,600 | |||
Public Stock Offering And Forward Sales Agreement | March 2021 Forward Sales Agreement | ||||
Class of Stock | ||||
Number of Shares Settled (in shares) | 69,000,000 | |||
Forward Share Price Upon Settlement (in dollars per share) | $ 26.50 | |||
Total Net Proceeds | $ 1,828,600 |
Stockholders' Equity - ATM Program Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Class of Stock | ||
Proceeds from issuance of common stock | $ 1,272,270 | $ 3,219,123 |
ATM Stock Offering Program | ||
Class of Stock | ||
Number of Shares Settled (in shares) | 21,617,592 | |
Forward Share Price Upon Settlement (in dollars per share) | $ 32.22 | |
Proceeds from issuance of common stock | $ 696,643 | |
ATM Stock Offering Program | December 2022 ATM Forward Sale Agreement | ||
Class of Stock | ||
Number of Shares Settled (in shares) | 6,317,805 | |
Forward Share Price Upon Settlement (in dollars per share) | $ 32.99 | |
Proceeds from issuance of common stock | $ 208,402 | |
ATM Stock Offering Program | August 2022 ATM Forward Sale Agreement | ||
Class of Stock | ||
Number of Shares Settled (in shares) | 3,918,807 | |
Forward Share Price Upon Settlement (in dollars per share) | $ 33.96 | |
Proceeds from issuance of common stock | $ 133,073 | |
ATM Stock Offering Program | June 2022 ATM Forward Sale Agreement | ||
Class of Stock | ||
Number of Shares Settled (in shares) | 11,380,980 | |
Forward Share Price Upon Settlement (in dollars per share) | $ 31.20 | |
Proceeds from issuance of common stock | $ 355,168 |
Stockholders' Equity - Schedule of Common Stock Outstanding (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance (in shares) | 963,096,563 | 628,942,092 |
Issuance of common stock upon physical settlement of forward sale agreements (in shares) | 40,592,592 | 119,000,000 |
Ending balance (in shares) | 1,004,204,918 | 748,413,311 |
Stock Incentive Plan | ||
Increase (Decrease) in Stockholders' Equity | ||
Issuance of restricted and unrestricted common stock under the stock incentive program, net of forfeitures (in shares) | 515,763 | 471,219 |
Stockholders' Equity - Schedule of Dividends Declared (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Equity [Abstract] | ||
Dividends declared per common share (in dollars per share) | $ 0.3900 | $ 0.3600 |
Earnings Per Share and Earnings Per Unit - Schedule Of Weighted Average Earnings Per Share (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average common stock outstanding (in shares) | 1,001,526,645 | 684,341,045 |
Assumed conversion of restricted stock (in shares) | 1,073,000 | 581,000 |
Assumed settlement of forward sale agreements (in shares) | 1,232,000 | 2,993,000 |
Diluted weighted-average shares of common stock outstanding (in shares) | 1,003,831,325 | 687,914,683 |
VICI Properties LP | ||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-average common stock outstanding (in shares) | 1,013,758,018 | 684,341,045 |
Assumed conversion of restricted stock (in shares) | 1,073,000 | 581,000 |
Assumed settlement of forward sale agreements (in shares) | 1,232,000 | 2,993,000 |
Diluted weighted-average shares of common stock outstanding (in shares) | 1,016,062,698 | 687,914,683 |
Earnings Per Share and Earnings Per Unit - Schedule Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Basic: | ||
Net income attributable to common stockholders | $ 518,740 | $ 240,383 |
Weighted-average common stock outstanding (in shares) | 1,001,526,645 | 684,341,045 |
Basic EPS (in dollars per share) | $ 0.52 | $ 0.35 |
Diluted: | ||
Net income attributable to common stockholders | $ 518,740 | $ 240,383 |
Diluted weighted-average shares of common stock outstanding (in shares) | 1,003,831,325 | 687,914,683 |
Diluted EPS (in dollars per share) | $ 0.52 | $ 0.35 |
VICI Properties LP | ||
Basic: | ||
Net income attributable to common stockholders | $ 522,076 | $ 238,347 |
Weighted-average common stock outstanding (in shares) | 1,013,758,018 | 684,341,045 |
Basic EPS (in dollars per share) | $ 0.51 | $ 0.35 |
Diluted: | ||
Net income attributable to common stockholders | $ 522,076 | $ 238,347 |
Diluted weighted-average shares of common stock outstanding (in shares) | 1,016,062,698 | 687,914,683 |
Diluted EPS (in dollars per share) | $ 0.51 | $ 0.35 |
Earnings Per Share and Earnings Per Unit - Narrative (Details) |
Mar. 31, 2023 |
---|---|
Earnings Per Share [Abstract] | |
Ownership percentage | 100.00% |
Stock-Based Compensation - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award | |
Unrecognized compensation costs | $ | $ 29.0 |
Weighted average period (in years) | 2 years 2 months 12 days |
Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of shares authorized (in shares) | 12,750,000 |
Number of remaining shares authorized (in shares) | 10,200,000 |
Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
General and administrative expense | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock-based compensation expense | $ 3,467 | $ 2,630 |
Stock-Based Compensation - Schedule Of Restricted Stock (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Incentive And Time-Based Restricted Stock | ||
Shares | ||
Beginning balance (in shares) | 507,000 | 300,000 |
Granted (in shares) | 173,000 | 258,000 |
Vested (in shares) | (159,000) | (125,000) |
Forfeited (in shares) | (20,000) | (14,000) |
Canceled (in shares) | 0 | 0 |
Ending balance (in shares) | 501,000 | 419,000 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 27.47 | $ 24.72 |
Granted (in dollars per share) | 34.25 | 28.39 |
Vested (in dollars per share) | 27.59 | 24.85 |
Forfeited (in dollars per share) | 27.69 | 25.26 |
Canceled (in dollars per share) | 0 | 0 |
Ending balance (in dollars per share) | $ 29.77 | $ 26.92 |
Performance-Based Restricted Stock Units | ||
Shares | ||
Beginning balance (in shares) | 769,000 | 588,000 |
Granted (in shares) | 475,000 | 463,000 |
Vested (in shares) | (363,000) | (227,000) |
Forfeited (in shares) | (116,000) | (80,000) |
Canceled (in shares) | 0 | 0 |
Ending balance (in shares) | 765,000 | 744,000 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (in dollars per share) | $ 22.88 | $ 19.32 |
Granted (in dollars per share) | 28.59 | 27.01 |
Vested (in dollars per share) | 19.90 | 22.68 |
Forfeited (in dollars per share) | 19.90 | 22.68 |
Canceled (in dollars per share) | 0 | 0 |
Ending balance (in dollars per share) | $ 28.28 | $ 22.72 |
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