VICI Properties Inc. Completes Acquisition of Margaritaville Resort Casino and Lease to Penn National
Gaming, Inc.
VICI Properties Inc. (NYSE:VICI) (“VICI Properties” or the “Company”), an experiential real estate investment trust, today
announced it has completed the previously disclosed transaction to acquire the land and real estate assets of the Margaritaville
Resort Casino, located in Bossier City, Louisiana (“Margaritaville Resort Casino”), for approximately $261 million in cash, with
Penn National Gaming, Inc. (NASDAQ:PENN) (“Penn National” or the “Tenant”) acquiring the operating assets of the Margaritaville
Resort Casino for approximately $115 million in cash. The aggregate purchase price paid in connection with the acquisition of the
real property and operations of the Margaritaville Resort Casino was approximately $376 million.
Simultaneous with the closing of this transaction, Penn National entered into a triple-net lease agreement with the Company. The
lease has an initial total annual rent of approximately $23.2 million and an initial term of 15 years, with four 5-year renewal
options. The Tenant’s obligations under the lease are guaranteed by Penn National. The Company funded the net purchase price using
available cash from its 2018 equity raising activities.
John Payne, President and Chief Operating Officer of VICI Properties said, “Closing the Margaritaville acquisition in
partnership with Penn National is a meaningful achievement coming within 15 months of the Company’s formation. The transaction is
our first step towards fulfilling our objective to diversify our tenant roster with best-in-class gaming operators. Having known
and worked with senior leaders at Penn National, I look forward to VICI Properties building a long-term mutually productive
partnership with this world class operator.”
Mr. Payne continued, “In addition to tenant diversity, this transaction also enhances our presence in the Bossier/Shreveport
market with the acquisition of the newest facility in the market. Since opening in 2013, the Margaritaville Resort Casino has
consistently been one of the leaders in the region. We look forward to working in partnership with Penn National to continue
providing a high-quality experience for customers, employees and the community at large.”
David Kieske, Chief Financial Officer of VICI Properties also commented, “With the closing of the Margaritaville transaction, we
have deployed all of the net proceeds raised in our initial public offering last year at an aggregate cap rate of 9.3%. As we begin
2019, we still have all of the net proceeds from our recent and opportunistic $700 million equity raise and will use that cash to
fund our already-announced Greektown acquisition and future growth opportunities. Indeed, no other American REIT raised as much
primary equity in 2018 as VICI did, with our two equity raises totaling $2.1 billion of gross proceeds, or approximately 21% of the
$10 billion of REIT primary equity raised in the year. When combined with the $1.0 billion of equity raised in our December
2017 private placement, we have raised over $3 billion of primary equity in less than 13 months. We are very gratified for the
faith that institutional investors have placed in VICI and we believe that the growth of our institutional shareholder base is key
to the institutionalization of our sector. Moving forward, we will continue to carry out a strategy whereby we will finance growth
with prudent leverage, while maintaining sufficient liquidity for long-term growth.”
Margaritaville Resort Casino
Built in 2013, Margaritaville Resort Casino is the premier venue for gaming, lodging, dining and entertainment experiences in
Northern Louisiana. The property comprises approximately 4 acres of fee land and nearly 30 acres of leased land. The hotel and
casino built on the fee land contain approximately 26,500 square feet of casino space featuring 1,215 slots and 50 tables, 395
hotel rooms, an island-style escape theme, 6 restaurants and food and beverage outlets and a 15,000 square foot 1,000-seat theater.
Approximately 1,500 parking spaces are located on the leased land.
About VICI Properties
VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading
gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties’ national,
geographically diverse portfolio consists of 22 gaming facilities comprising over 39 million square feet and features approximately
14,800 hotel rooms and more than 150 restaurants, bars and nightclubs. Its properties are leased to leading brands such as Caesars,
Horseshoe, Harrah’s and Bally’s, which prioritize customer loyalty and value through great service, superior products and constant
innovation. VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas
Strip. VICI Properties’ strategy is to create the nation’s highest quality and most productive experiential real estate portfolio.
For additional information, please visit
www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and
similar expressions that do not relate to historical matters. All statements other than statements of historical fact are
forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they
involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond the Company’s control and could
materially affect actual results, performance, or achievements. Among those risks, uncertainties and other factors are risks that
the Company may not achieve the benefits contemplated by the acquisition of the real estate assets; and risks that not all
potential risks and liabilities have been identified in the Company’s due diligence. Although the Company believes that in making
such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by
factors that could cause actual outcomes and results to be materially different from those projected. The Company cannot assure you
that the assumptions upon which these statements are based will prove to have been correct. Additional important factors that may
affect the Company’s business, results of operations and financial position are described from time to time in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2017, Quarterly Reports on Form 10-Q and the Company’s other filings with the
Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking
statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
Investors:
Investors@viciproperties.com
(646) 949-4631
Or
ICR
Jacques Cornet
Jacques.Cornet@icrinc.com
Media:
PR@viciproperties.com
(646) 949-4631
Or
ICR
Phil Denning and Jason Chudoba
Phil.Denning@icrinc.com, (646) 277-1258
Jason.Chudoba@icrinc.com, (646) 277-1249
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