Vici Properties

Vici Properties
Public
Traded as NYSE: VICI
Russell 1000 Component
Industry Real estate investment trust
Headquarters New York City, New York
Website viciproperties.com

Vici Properties is a real estate investment trust (REIT) specializing in casino properties, based in New York City. It was formed in 2017 as a spin-off from Caesars Entertainment. It owns twenty casinos and four golf courses throughout the United States.

History

Vici Properties was formed as part of the Chapter 11 bankruptcy reorganization of Caesars Entertainment Operating Company (CEOC), the largest division of Caesars Entertainment. After placing CEOC into bankruptcy in January 2015, Caesars proposed splitting CEOC into two companies: a REIT, which would own the company's casinos, and an operating company, which would manage them.[1] The plan was designed to maximize value for CEOC's creditors by taking advantage of favorable tax treatment for REITs.[2] Several members of Congress opposed the plan, calling it an abuse of the REIT laws.[3] They asked the Internal Revenue Service to deny tax-free status to the spin-off, but their protest went unheeded.[3][4]

The spin-off of Vici to CEOC's creditors was completed on October 6, 2017, the day that CEOC emerged from bankruptcy.[5][6][7] Vici began with a portfolio of nineteen casinos and racetracks, all leased to Caesars at a total initial annual rent of $630 million, and four golf courses.[5][8] The company's name was adopted from the phrase "Veni, vidi, vici," commonly attributed to Julius Caesar.[9]

Vici acquired Harrah's Las Vegas from Caesars in December 2017 for $1.1 billion, and leased it back at an initial annual rent of $87.4 million.[10][11]

MGM Growth Properties, a REIT affiliated with Caesars competitor MGM Resorts International, offered in January 2018 to acquire Vici for an estimated $5.9 billion.[12] Vici's board rejected the offer, deciding instead to proceed with a planned initial public offering.[9] Vici completed its IPO on the New York Stock Exchange in February 2018, raising $1.2 billion.[13][14]

The company moved its headquarters to New York City from the Las Vegas area in mid-2018.[15][16]

In June 2018, Vici agreed to buy the real estate of the Margaritaville Resort Casino in Bossier City, Louisiana for $261 million.[17] Penn National Gaming would purchase the property's operating business at the same time, and lease it from Vici for $23 million per year.[17]

Properties

Casinos and racetracks

The company owns the following casinos and racetracks, all of which are leased to Caesars Entertainment:[18]

Golf courses

The company owns and operates four golf courses:[20]

References

  1. ↑ Howard Stutz (January 16, 2015). "Caesars puts largest unit into bankruptcy; judge OKs routine motions". Las Vegas Review-Journal – via NewsBank.
  2. ↑ Tom Hals (March 3, 2015). "Caesars' operating unit files bankruptcy exit plan". Reuters. Retrieved 2018-02-25.
  3. 1 2 Tom Hals (June 1, 2016). "Members of U.S. Congress oppose Caesars' casino REIT plan". Reuters. Retrieved 2018-02-25.
  4. ↑ Form 8-K: Current Report (Report). Caesars Entertainment. January 6, 2017 – via EDGAR.
  5. 1 2 "Vici Properties Inc., completes spin-off from Caesars Entertainment Operating Company" (Press release). Vici Properties. October 6, 2017 – via NewsBank.
  6. ↑ Richard N. Velotta (October 6, 2017). "Caesars completes merger, emerges from bankruptcy protection". Las Vegas Review-Journal. Retrieved 2018-02-25.
  7. ↑ Austen Hufford; Chris Kirkham (October 6, 2017). "Caesars Entertainment unit preparing to exit bankruptcy". Wall Street Journal. Retrieved 2018-02-25.
  8. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. November 13, 2017. p. 10.
  9. 1 2 Richard N. Velotta (January 17, 2018). "Caesars trust rejects offer from MGM Growth Properties". Las Vegas Review-Journal. Retrieved 2018-02-25.
  10. ↑ Todd Prince (November 29, 2017). "Caesars to sell real estate under Harrah's to finance acquisition". Las Vegas Review-Journal. Retrieved 2018-02-25.
  11. ↑ "Vici Properties Inc. completes acquisition of Harrah's Las Vegas real property assets and related transactions" (Press release). Vici Properties. December 22, 2017. Retrieved 2018-02-25 – via BusinessWire.
  12. ↑ Richard N. Velotta (January 16, 2018). "MGM affiliate bids for real estate trust spun off by Caesars". Las Vegas Review-Journal. Retrieved 2018-02-25.
  13. ↑ Todd Prince (February 1, 2018). "Caesars real estate owner raises more money than expected in IPO". Las Vegas Review-Journal. Retrieved 2018-02-25.
  14. ↑ "Vici Properties Inc. announces closing of initial public offering and full exercise of underwriters' overallotment option" (Press release). Vici Properties. Retrieved 2018-02-25 – via BusinessWire.
  15. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. May 4, 2018. p. 29 – via EDGAR.
  16. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. August 2, 2018. p. 34 – via EDGAR.
  17. 1 2 Sarah Crawford (June 19, 2018). "Margaritaville Resort Casino sale is announced". Shreveport Times. Retrieved 2018-06-19.
  18. ↑ "Casino Resorts". Vici Properties. Retrieved 2018-02-25.
  19. ↑ Form 10-Q: Quarterly Report (Report). Vici Properties. November 13, 2017. p. 17 – via EDGAR.
  20. ↑ "Golf Courses". Vici Properties. Retrieved 2018-02-25.
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