Real estate investment trust VICI Properties has announced fourth quarter and full year 2022 results, including a new all-time high for yearly revenue. During Q4, total revenues increased 100.9% year-over-year to $769 million, while net income attributable to common stockholders increased 114.6% to $604.1 million.
As for the entire year, total revenues jumped 72.3% Y-o-Y to $2.6 billion, a new record for the New York-listed casino landlord. However, expenses also shot higher, and overall profits didn’t climb nearly as fast as its revenue. VICI said it booked almost $1.14 billion in net income last year, up 11% from $1.02 billion in 2021.
A Caesars Entertainment spinoff, VICI was launched in 2017 but now has a real estate portfolio that spans many of Las Vegas’ biggest casino-resorts, including Caesars Palace, The Venetian, The Mirage, Mandalay Bay and MGM Grand. These and other properties in its portfolio are leased to operators that pay rent to VICI, which generates some 45% of its revenue from Vegas.
Highlights for the Q4 period included the acquisition of the remaining 49.9% interest in MGM Grand/Mandalay Bay, an agreement to provide up to $350 million in mezzanine loan financing for the construction of the Fontainebleau Las Vegas, and a lease agreement with Hard Rock related to the Mirage Hotel & Casino in Las Vegas, among others.
Edward Pitoniak, Chief Executive Officer of VICI Properties, said: “In 2022, less than 5 years after our IPO, VICI became a Top 10 REIT in the RMZ REIT Index, a member of the S&P 500 and an investment grade issuer of credit.”
For his part, John Payne, VICI’s President and Chief Operating Officer, said in a call with analysts that the Las Vegas market overall is “producing record results.” He cited “robust” leisure business, the return of meetings and conventions, and high visitor levels, according to Las Vegas Review-Journal. “We believe consumers did not find a replacement for the experience offered by the Las Vegas market, nor do we believe they ever will,” Payne said.
In the first half of the year, the company completed the major acquisitions of MGM Growth Properties and the Venetian Resort Las Vegas, thereby becoming the leading real estate owner on the Las Vegas Strip. In the second half of 2022 and into 2023, the company further demonstrated its scale and liquidity as it announced and originated approximately $4.5 billion of investments across a variety of gaming and non-gaming opportunities.
Aerial view of the Las Vegas Strip
Subsequent to the fourth quarter, VICI diversified its relationships and expanded internationally into Canada with the PURE Canadian Gaming announcement in January 2023. Moreover, VICI has now announced it generated the highest —and only positive— total shareholder return of all S&P 500 REITs in 2022.
The company said it closed on $22.8 billion of transactions over the last year. “We are confident that our 2022 activities and achievements will continue to put VICI in position for sustainable accretive growth and value creation for our shareholders into 2023 and beyond,” Pitoniak added.
VICI has now established guidance for the full year 2023. The company estimates Adjusted Funds from Operations (AFFO) for the year will be between $2,115 million and $2,155 million, or between $2.10 and $2.13 per diluted share. “Guidance does not include the impact on operating results from any pending or possible future acquisitions or dispositions, capital markets activity, or other non-recurring transactions,” noted the investment trust.