Perhaps the biggest news from Vici Properties’s first-quarter-earnings release came in the second quarter.
The real estate investment trust (REIT) announced that it has entered into a $510 million financing arrangement to underwrite a tribal casino in northern California. The project, to be owned by the North Fork Mono Rancheria, is being built and will be operated by Station Casinos.
The North Fork loan, Vici’s first transaction with Station, was structured in two tranches. The first loan of $340 million will be split between Vici ($125 million) and another lender, while the second $385 million loan will be entirely Vici’s. The loans will mature by 2031.
Said CEO Edward Pitoniak in a formal statement, “This transaction represents Vici’s second loan investment on tribal land and [Station Casinos’s] first partnership with a REIT. We value both of these partnerships and take pride in our ability to build deep relationships with dynamic growth-minded operators that will help to contribute to our long-term growth goals and objectives.”
Added CFO David Kieske, “Vici is also proud of our diligent focus on balance-sheet management and remaining situationally ready in all market environments.”
Also subsequent to March 31, Vici put out $1.3 billion in investment-grade senior notes in order to underwrite existing debt.
In non-gaming developments, Vici reiterated its partnership with Eldridge Industries and Cain International on a $300 million Beverly Hills retail development, One Beverly Hills. The REIT also disclosed a $2.5 billion, multi-currency, unsecured, revolving, credit facility replacing an unsecured, revolving, credit facility of the same size.
Revenue for the quarter was $984.2 million, a 3.4 percent increase. Profits, however, decreased 7.9 percent to $543.6 million. Vici ended the quarter with $334.3 million cash on hand and $16.8 billion in debt.
