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Home>VICI Properties Inc., Completes Spin-off from Caesars Entertainment Operating Company

VICI Properties Inc., Completes Spin-off from Caesars Entertainment Operating Company

VICI Properties Inc., Completes Spin-off from Caesars Entertainment Operating Company


VICI Properties Inc., Completes Spin-off from Caesars Entertainment Operating Company

Newly Formed REIT to Focus on Growth Through Experiential Asset Acquisitions

VICI Properties Inc. (“VICI Properties” or the “Company”), an experiential-asset focused real estate investment trust (REIT), today announced the completion of its spin-off from Caesars Entertainment Operating Company, Inc. (“CEOC”), a subsidiary of Caesars Entertainment Corporation (“Caesars”), becoming one of the largest owners of gaming, hospitality and entertainment destinations.

VICI Properties’ national, geographically diverse portfolio consists of 19 market-leading gaming facilities, including the world-renowned Caesars Palace Las Vegas, and a subsidiary that owns four championship golf courses. VICI’s properties are leased to Caesars and operate under leading brands such as Caesars, Horseshoe, Harrah’s and Bally’s, and feature approximately 32.5 million square feet of space, 12,000 hotel rooms and more than 150 restaurants, bars and nightclubs. These properties are exceptionally well-maintained, benefiting from approximately $433 million in capital investments over the past three years. VICI Properties enjoys a consistent, highly predictable revenue stream with embedded growth potential due to its long-term triple-net lease agreements with CEOC, backed by a corporate guarantee by Caesars that would yield pro forma rent coverage of 3.5x based upon Caesars’ LTM Adjusted EBITDA.1

VICI Properties’ strategy is to create the nation’s highest quality and most productive experiential real estate portfolio. This highly focused approach involves:

  • Partnering with leading brands and operating companies that prioritize customer loyalty and value through great service, superior products, constant innovation and sector-leading customer relationship management (CRM) systems and networks;
  • Capitalizing on strategic acquisitions, new development and asset redevelopment opportunities with Caesars, including 53 acres of undeveloped land adjacent to the Las Vegas Strip; and
  • Optimizing its capital structure to support opportunistic growth beyond its current portfolio and partnerships.

VICI Properties is led by real estate industry veteran Edward Pitoniak, Chief Executive Officer and a member of the Company’s board of directors. John Payne serves as VICI Properties’ President and Chief Operating Officer, and Mary Beth Higgins serves as VICI Properties’ Chief Financial Officer. Both Mr. Payne and Mrs. Higgins are seasoned gaming and hospitality executives, with a deep understanding of Caesars operating performance, the current asset portfolio and the Company’s position to capitalize on growth opportunities across the spectrum of the experiential asset segment.

“VICI Properties debuts as the premier owner of best-in-class gaming, hospitality and entertainment destinations and we aim to quickly become America’s most dynamic leisure and hospitality focused REIT,” said Mr. Pitoniak. “We have in Caesars Entertainment Corporation the best national gaming brand and operator in America, with an unrivaled loyalty program in Total Rewards. We share an energy and ambition to grow our businesses accretively, yielding a compelling value proposition for investors seeking a balance of current income as well as long-term growth.”

The VICI Properties Board of Directors is chaired by Jim Abrahamson, current Chairman of Interstate Hotels and Resorts and a veteran senior executive of many of the world’s leading hotel brand management companies, including Hilton, Hyatt and IHG. The Board also includes highly respected and deeply experienced members Eugene Davis, Chairman and CEO of PIRINATE Consulting Group, LLC and former director at Planet Hollywood, Delta Airlines, Winstar Cruise Line and Aliante; Eric Hausler, former CEO of Isle of Capri Casinos, Inc.; Craig Macnab, former Chairman and CEO of National Retail Properties, Inc. (NYSE: NNN); and Michael Rumbolz, current President and CEO of Everi Holdings Inc. (NYSE: EVRI), a developer of gaming products and services.

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