01—Abstract
Summary
Summary of the 10-Q filed July 31, 2024. Cited figures are marked; the original filing is the authoritative source.
VICI Properties Inc. (VICI) reported its second-quarter 2024 results in this Form 10-Q for the three and six months ended June 30, 2024.
Total revenues were $957.0 milliona for the quarter, up from $898.2 million a year earlier, and $1.91 billion for the six months, up from $1.78 billion. Net income attributable to common stockholders was $741.3 million for the quarter ($0.71 per diluted share) and $1.33 billion for the six months ($1.28 per diluted share). Adjusted EBITDA attributable to common stockholders was $775.9 million for the quarter and $1.54 billion for the six months, and AFFO per diluted share was $0.57 for the quarter and $1.13 for the six months, according to the filing's non-GAAP reconciliation.
The company's balance sheet grew to $44.51 billionb in total assets at June 30, 2024, with total debt, net of $16.73 billion. Cash and cash equivalents declared at $347.2 million, down from $522.6 million at year-end 2023. Net cash provided by operating activities was $1.16 billion for the six months.
Dividends paid totaled $867.6 millionc in the period, and the quarterly dividend declared was $0.4150 per share for both the first and second quarters of 2024. The filing also describes a $700.0 million Venetian Capital Investment, of which $400.0 million is funded in 2024, along with $365.0 million of real estate debt originations in the first half of 2024. The filing notes that VICI's tenants, MGM and Caesars, are the guarantors of their lease payment obligations and represented a combined majority of lease revenue.
Allowance for credit losses stood at $1.52 billiond at June 30, 2024, versus $1.45 billion at December 31, 2023. The company also reported completing a new general ledger and reporting system during the quarter, with management stating that internal controls were effective.
02—Key points
Key Highlights
- Total revenues rose to $957.0 million in Q2 2024 from $898.2 million in Q2 2023; six-month revenues were $1.91 billion versus $1.78 billion.
- Net income attributable to common stockholders was $741.3 million ($0.71 per diluted share) for Q2 2024, compared with $690.7 million ($0.69) a year earlier.
- AFFO attributable to common stockholders was $592.4 million for Q2 2024 ($0.57 per diluted share), versus $540.4 million ($0.54) in Q2 2023.
- Quarterly dividend declared was $0.4150 per common share for both Q1 and Q2 2024, up from $0.3900 in 2023.
- Venetian Capital Investment of up to $700.0 million was agreed on May 1, 2024, with $400.0 million funded in 2024 and a 7.25% yield on incremental rent.
- Real estate debt originations totaled $365.0 million in the first half of 2024, including a $250.0 million Great Wolf mezzanine loan.
- Liquidity of about $3.36 billion at June 30, 2024 comprised cash of $347.2 million, $2.33 billion of Revolving Credit Facility capacity, and $681.0 million of net proceeds from forward sale agreements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 31, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $957.00M$898.16M | +6.6% |
| Cost of Revenue | $6.81M$6.59M | +3.4% |
| Gross Profit | $950.19M$891.57M | +6.6% |
| Net Income | $741.30M$690.70M | +7.3% |
| EPS (Basic) | $0.71$0.69 | +2.9% |
| EPS (Diluted) | $0.71$0.69 | +2.9% |
| Shares Outstanding (Basic) | 1.04B1.01B | +3.6% |
| Shares Outstanding (Diluted) | 1.04B1.01B | +3.5% |
05—Questions
Frequently Asked Questions
How did VICI perform in the second quarter of 2024?
Total revenues were $957.0 million, up from $898.2 million, and net income attributable to common stockholders was $741.3 million ($0.71 per diluted share), compared with $690.7 million ($0.69) in the prior-year quarter. Adjusted EBITDA attributable to common stockholders was $775.9 million versus $723.4 million a year earlier.
What drove the revenue increase?
The filing attributes the increase mainly to the acquisition of the remaining 49.9% of the MGM Grand/Mandalay Bay portfolio in January 2023, the Rocky Gap Casino component of the Century Master Lease, the Century Canadian portfolio, the Bowlero master lease and the Chelsea Piers lease, plus annual rent escalators and higher income from loans and securities.
What is the Venetian Capital Investment?
VICI agreed on May 1, 2024 to fund up to $700.0 million of reinvestment projects at the Venetian Resort. $400.0 million is scheduled for 2024 funding, and an additional $300.0 million is optional for the tenant to draw until November 1, 2026. Incremental rent accrues at a 7.25% yield on each funding.
How is VICI's debt and liquidity position?
Debt, net was $16.73 billion at June 30, 2024, with 99.0% of outstanding indebtedness at fixed rates. Total liquidity of about $3.36 billion comprised $347.2 million of cash, $2.33 billion of revolver capacity and $681.0 million of net proceeds available from forward sale agreements. Scheduled debt maturities include $750.0 million in February 2025, $500.0 million in May 2025 and $800.0 million in June 2025.
Who are the most significant tenants, and how concentrated is revenue?
MGM Resorts International and Caesars are the guarantors of all lease payment obligations for their respective leases. MGM accounted for 38% of lease revenues and Caesars 36% for each of the three and six months ended June 30, 2024. Properties on the Las Vegas Strip generated approximately 48% of lease revenues.
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