Enlabs

Entertainment Laboratories’ board of directors has appointed George Ustinov as president and CEO, after initially joining the firm in 2017.

The Latvian, who has previously served as operations manager and CFO, takes up the role with immediate and succeeds Robert Andersson who, in agreement with the board, leaves his operational assignments in the group after two years.

The American Cancer Society has appointed Derrick Morton, CEO and co-founder of FlowPlay, as chair to the society’s CEOs Against Cancer Washington chapter.

In his first meeting in the role earlier in the week Morton addressed the Washington chapter and shared a vision and new ideas for 2020.

The position sees Morton charged with driving recruitment and working to unite fellow CEOs to change the course of cancer by leveraging the collective knowledge, power and resources of the ACS.

Morton’s appointment comes on the heels of FlowPlay’s biggest fundraising year to date, in which the company raised more than $100,000 for the ACS.

“As a member of CEOs Against Cancer for the past year, I have seen its impact first hand. From groundbreaking research and early detection advocacy, to funding new treatment options and access for patients, the ACS and this segment of the organisation are instrumental in the ongoing fight against cancer.

“I am honoured to have the opportunity to serve our community as chair and hope to make a real difference by recruiting new members and building upon the momentum from last year.” – Morton.

Atlantic Lottery

The board of directors of Atlantic Lottery has announced the appointment of Chris Keevill as the organisation’s new president and chief executive officer.

Bringing in excess of 20 years experience in digital transformation, innovation, marketing and media at the regional, national and international level, Keevill will officially join the company on May 1, 2020.

Keevill is taking over from Brent Scrimshaw who has served in the role since 2011 and will retire from Atlantic Lottery following 13 years of service.

“Keevill’s proven track record of execution and extensive experience with digital transformation and innovation, combined with his personal commitment to his community, will serve him well as he steers Atlantic Lottery into the future as a competitive, innovative, responsible gaming company.” – Sean O’ Connor, chair of Atlantic Lottery’s board of directors.

Vici Properties

Experiential real estate investment trust Vici Properties has announced that Monica Howard Douglas has received all required approvals to assume her duties on the board of directors.

Douglas, who currently serves as general counsel of North America for The Coca-Cola Company, has been formally appointed as an independent director and will serve on the board’s nominating and governance committee.

“We are thrilled to officially welcome Monica to our board. Monica’s deep experience and background complements our existing Board composition and expands the diverse viewpoints of our board.” – Jim Abrahamson, chairman of the board.

The post Part 17 | On the move: Recruitment round-up appeared first on CasinoBeats.

Edward Pitoniak, VICI CEO, highlighted that the casino real estate investment firm “successfully deployed capital every single month of the year”, stressing that the company’s 2023 investments will deliver shareholder value across 2024. 

Fourth quarter results

Amidst several investment activities in the final three months of 2023, VICI Properties produced total revenues of $931.9m, an increase of 21 per cent year-over-year (Q42022: $769.9m). 

Net income attributable to common stockholders increased 23.8 per cent year-over-year to $747.8m (Q42022: $604m), with net income on a per share basis increasing 15.1 per cent from last year’s Q4 figures of $0.63 to $0.72. 

Adjusted EBITDA for the quarter stood at $7.5m (Q42022: $6.54m), with adjusted funds from operations increasing by 17 per cent YoY to $570.4m (Q42022: $4.88m) and by 8.8 per cent on a per diluted share basis to $0.55 (Q42022: $0.51). 

VICI’s strategic investments across the period saw the company acquire 38 bowling venues in a $432.9m sale leaseback transaction with Bowlero, while providing an up to $212.2m mezzanine loan to Kalahari for a waterpark development project in Thornburg, Virginia 

The real estate firm also announced its purchase of the leasehold interest of Chelsea Piers in New York City for a total purchase price of $342.9m, raising $390.2m of gross proceeds in forward equity under the ATM program. 

In addition, Q4 saw VICI announce an agreement to provide an up to $100m delayed draw loan facility for the development of Cabot Saint Lucia alongside a £9m loan for the redevelopment of Cabot Highlands, with an agreement in principle to provide additional development financing. 

Full year 2023

For the full year, VICI produced revenues of $3.6bn, an uptick of 38.9 per cent compared to the year prior’s $2.6bn. 

Net income attributable to common stockholders rose by 124.9 per cent YoY to $2.5bn (2022: $1.1bn) and, on a per share basis, increased 94.8 per cent YoY to $2.47 (2022: $1.27).

AFFO increased 29.1 per cent YoY to $2.2bn (2022: $1.7bn) with AFFO on a per diluted share basis rising by 11.8 per cent YoY to $2.15 (2022: $1.93). 

Meanwhile, the company increased annualised cash dividend by 6.4 per cent in the third quarter, representing the company’s sixth consecutive annual dividend increase. VICI’s equity stands at $1.6bn with $200m of debt, achieving the firm’s long-term net leverage ratio of x5 to x5.5 net debt to adjusted EBITDA. 

Across the year, VICI Properties contributed $1.8bn in acquisitions and investments, with a weighted average initial yield of 7.7 per cent.

Within these activities, VICI ventured into its first international investments after acquiring eight gaming assets in Canada with Century Casinos and PURE Canadian Gaming Corp for a total aggregate consideration of $363.3m. 

VICI also initiated $698.2m of strategic financing partnerships, including the purchase of $85m of senior secured notes of Hard Rock Ottawa and an up to $100m delayed draw development loan to Cabot Saint Lucia for the development of a luxury golf resort. 

Pitoniak commented: “In 2023, VICI successfully deployed capital every single month of the year despite volatility across commercial real estate and in the capital markets. 

“Our team continued to exercise patience and diligence in underwriting while navigating this backdrop, and we are proud to have committed $1.8bn of capital at a blended yield of 7.7 per cent, and to have done so with approximately $1.6bn of equity and $0.2 billion of debt, demonstrating our adherence to achieving our targeted long-term net leverage ratio of x5 to x5.5 net debt to Adjusted EBITDA. 

“This year, our $1.8bn of capital commitments with best-in-class operators across gaming and other experiential sectors came with several VICI milestones. 

“We consummated our first international real estate acquisitions of gaming properties in Canada and grew financing partnerships in Saint Lucia and the UK, made our first real estate acquisition in the family entertainment sector, significantly expanded our partnerships with Canyon Ranch and Cabot, and converted our first loan to real estate ownership. 

“We believe our 2023 growth in AFFO per share of 11.8 per cent will be among the higher growth rates of S&P 500 REITs, while our 2023 investments put us in a position to deliver a 2024 AFFO per share growth on the high end of consensus average growth rates for S&P 500 REITs.”

Looking at the year ahead, VICI’s full year 2024 guidance saw the firm predict AFFO to be between $2.32 and $2.35m, or between $2.22 and $2.25 on a per diluted share basis. 

The post VICI Properties’ 2023 results combat ‘volatile’ real estate markets appeared first on CasinoBeats.

Publishing its quarterly financial results for the three-month period ending September 30, 2023, the NYC-based REIT’s total revenues increased to $904.3m (2022: $751.5m), while net income attributable to common stockholders rose 68 per cent to $556.3m (2022: $330.9m). 

Coinciding with this growth, AFFO attributable to common stockholders reached $547.6m, an increase of 16 per cent when compared to Q3 2022’s $470.7m, alongside a per-share increase of 11 per cent to $0.54 (2022: $0.39). 

Commenting on the company’s robust performance, Edward Pitoniak, CEO of VICI Properties, said: “Vici’s third quarter financial performance reflects our sustained, sustainable commitment to accretive growth and capital deployment through acquisitions and strategic financing activity, exemplified by approximately 20 per cent revenue growth and nearly 11 per cent growth in AFFO per share year-over-year.” 

Through the quarter, Vici closed its move to acquire the Rocky Gap Casino Resort from Century Casinos, as well as the real estate for Century’s four gaming properties in Alberta, Canada, securing further North American expansion for Vici. 

The firm’s performance was also supported by the decision to extend its partnership with Canyon Ranch, forming a preferred equity investment, a mortgage loan and call rights to acquire Canyon Ranch Tucson and Canyon Ranch Lenox. 

Pitoniak continued: “During the quarter, in addition to closing Rocky Gap and announcing the expansion of our Canyon Ranch growth partnership, we expanded our international presence through closing the acquisition of four casino properties in Alberta, Canada with our existing tenant and partner, Century Casinos.”

Vici also spent the quarter focusing on new experiential sectors, having entered the family entertainment industry through the purchase of 38 bowling entertainment centres in a sale-leaseback transaction with Bowlero. 

“Subsequent to quarter end, we entered into a new experiential sector with Bowlero, the market leader in reinvigorating the programming and economics of the bowling experience through their innovative consolidation and growth model,” Pitoniak added. 

“In this partnership, we acquired 38 Bowlero properties and concurrently bolstered our embedded growth pipeline by obtaining a right of first offer to acquire current or future Bowlero real estate in the coming years through sale-leaseback transactions.

“We also expanded our presence in 11 new states and added another publicly traded tenant to our roster. VICI’s differentiation stems from our commitment to partnering with operators who define their respective experiential categories, as Bowlero has done with the bowling experience.”

Other statistics highlighted by Vici Properties included a quarterly cash dividend of $0.415 per share, representing a six per cent increase compared to Q3 2022. The company ended the quarter with $510.9m in cash and cash equivalents and $807.2m of estimated available forward sale equity proceeds. 

Witnessing a strong performance for the period, Vici Properties updated its full-year AFFO guidance, expecting it to fall between $2.170bn and $2.180bn.

The post Vici Properties: Q3 success reflects ‘commitment to capital deployment’ appeared first on CasinoBeats.

The transaction, which comes off the back of the operator reporting a positive outlook following a pleasing second quarter, represents a purchase price of C$221.7m (US$164.7m).

“The company retained approximately C$154.5m (US$113.2m) of the purchase price after giving effect to the purchase of the Century Downs land, selling expenses, Canadian and US taxes and proceeds to be paid to the minority owners of Century Downs,” it was noted by Century Casinos.

The quarter of establishments concerned are Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.

Simultaneous with the closing of the transaction, the Century Canadian portfolio has been added to the existing triple-net master lease agreement between subsidiaries of Vici and the company. 

This will see a C$17.3m ($12.7m) addition made to the current agreement. Additionally, terms have also been to ensure that the lease has a full 15-year initial term, with four five-year tenant renewal options

“We are pleased to extend our good partnership with VICI to our Canada portfolio,” said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos.

“This transaction provides us with the ability to pay down our debt and with greater financial flexibility as we continue to grow.”

In a Q2 breakdown that was issued last month, Century Casinos declared a net operating revenue of $136.8m, a record for the operator and up 23 per cent in comparison to the previous year (Q2 2022: $111.1m). This also represents an improvement on Q1’s $108.5m.

The post Vici finalises $221.7m purchase of Century Casinos’ Alberta venues appeared first on CasinoBeats.

With a number of purchases having been detailed by the group, the real estate investment trust is eager to maintain a pursuit of “attractive” growth opportunities both in the US and on an international basis. 

Earlier in the week, Century Casinos and Vici finalised the joint purchase of Maryland’s Rocky Gap Casino Resort for a combined price of $260m.

This saw the former acquire the operations of the gaming property for approximately $56.1m, while the real estate investment trust has gained the land and buildings associated with the venue for $203.9m.

This followed the REIT disclosing a third international investment earlier in the year after entering into definitive agreements to purchase the real estate assets of a quartet of gaming establishments in a sale and leaseback arrangement.

This saw the company acquire Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino from Century for C$221.7m (US$164.7m) in cash.

The second quarter saw Vici Properties disclose revenue of $898.2m, up 35.5 per cent from $662.6m year-on-year, while net loss swung from $57.7m to an income of $690.7m through 2023.

“Approximately 80 per cent of the total allowance increase in Q2 2022 was driven by the CECL charge in relation to our entry into the MGM master lease in connection with the acquisition of MGM Growth Properties, which closed on April 29, 2022,” the company said.

Adjusted funds from operations was highlighted as increasing 25.7 per cent per cent to $540.4m (2022: $430.1m).

For the year-to-date, revenue increased 64.54 per cent to $1.77bn (2022: $1.07bn), net income surged to $1.2bn (2022: $182.67) and AFFO reached $1.06bn, up 45.33 per cent from the previous year’s $735.54m.

“Vici’s strong second quarter financial performance, exemplified by approximately 36 per cent revenue growth and nearly 12 per cent growth in AFFO per share year-over-year, reflects the impact of our consistent commitment to accretive acquisitions and strategic financings,” explained Edward Pitoniak, Chief Executive Officer of Vici Properties.

“We also ended the quarter with ample liquidity, including $739m in cash and cash equivalents, $868m of estimated equity proceeds available upon settlement of forward sale agreements, and $2.4bn of availability under the revolving credit facility. 

“The quarter’s results and current liquidity enable Vici to continue in our pursuit of attractive domestic and international growth opportunities across the experiential landscape.

“In the second quarter, we continued to expand our international presence through the announced acquisition of four casino properties in Alberta, Canada with our existing tenant and partner, Century Casinos. 

“Subsequent to quarter end, we also closed the previously announced acquisition with Century of Rocky Gap, proving the value of our enduring partnerships with growth-minded operators.”

The post Vici Properties maintaining pursuit of US & international purchases appeared first on CasinoBeats.

This has seen the former acquire the operations of the gaming property for approximately $56.1m, while the real estate investment trust has gained the land and buildings associated with the venue for $203.9m.

Simultaneous with the closing of the transaction, Vici has amended its existing triple-net master lease agreement with Century, with a $15.5m increase subsequently added.

Additionally, the terms have also been altered so that the lease now comprises a full 15-year initial base lease term, with four 5-year tenant renewal options. 

Rocky Gap Casino Resort, located in Flintstone, comprises over 25,000 square feet of gaming floor that includes 630 slot machines and 16 table games, a Jack Nicklaus designed 18-hole golf course, 5,000 square-foot events centre, meeting spaces, spa, and several outdoor activities.

The property has recently invested approximately $10m in improvements to its hotel, slot machines, restaurants, and sports lounge, with a potential expansion of the casino and hotel also possible.

As a result of this latest transaction, Century Casinos’ network has increased to 19 casinos that include 7,565 gaming machines, 268 table games and over 4,100 full-time equivalent employees.

“We are very excited to be expanding into Maryland,” said Erwin Haitzmann and Peter Hoetzinger, Co-Chief Executive Officers of Century Casinos. 

“Rocky Gap is a great addition to our portfolio. We look forward to working with the staff and community to continue the current success at this property into the future.”

Earlier in the year, Vici Properties disclosed a third international investment after entering into definitive agreements to purchase the real estate assets of a quartet of gaming establishments in a sale and leaseback arrangement.

This saw the company acquire Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino from Century Casinos for C$221.7m (US$164.7m) in cash.

The post Century Casinos & Vici Properties purchase $260m Rocky Gap Casino appeared first on CasinoBeats.

This will see the real estate investment trust acquire Alberta’s Century Casino & Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino from Century Casinos for C$221.7m (US$164.7m) in cash.

The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the second half of 2023.

This comes after the group pulled the trigger on a maiden international investment in January, which also came via the purchase of four gaming properties located in Alberta for C$271.9m (US$200.8m). This, at the time, saw Pure Canadian Gaming added as an eleventh tenant.

The purchase will see Vici Properties add a combined 69,360 square feet of gaming space that boast 2,443 slots and 78 VLTs.

John Payne, President and Chief Operating Officer of Vici Properties, said, “We are thrilled to announce our third international investment with the acquisition of Century’s four Canadian casino assets, demonstrating our ongoing desire to expand internationally and confidence in the Canadian gaming market. 

“We are also pleased to continue growing our partnership with Century by supporting their asset monetisation strategy, unlocking value that fuels their strategic growth initiatives.”

Upon closing, the Century Canadian venues will be added to an existing triple-net master lease agreement, which will see annual rent increase by C$17.3m (US$12.8m) to represent an implied acquisition capitalisation rate of 7.8 per cent.

Furthermore, the lease will also be extended to have a full 15-year initial base lease term, with four five-year tenant renewal options also included.

The post Vici Properties acquires $221.7m <br> Alberta properties from Century Casinos appeared first on CasinoBeats.

Following a number of gaming-based acquisitions being made during recent times, the real estate investment trust disclosed revenue of $877.6m during the January to March period, which represents a 110.7 per cent uptick from the $416.6m recorded one year earlier.

This, said the company, was primarily due to the purchases of MGM Growth Properties, the land and real estate assets of the Venetian Resort Las Vegas and the remaining 49.9 per cent interest in the MGM Grand/Mandalay Bay.

Net income attributable to common stockholders more than doubled to reach $518.7m (2022: $240.4m), while adjusted funds from operations surged 73 per cent to $528.6m (2022: $305.5m).

Edward Pitoniak, Chief Executive Officer of Vici Properties, explained: “The first quarter of 2023 continued the momentum Vici generated in 2022: expanding our platform, cultivating new and expanding existing partner relationships, and accessing liquidity opportunistically. 

“We added a new partnership and tenant with PURE Canadian Gaming and announced our first international investment with the acquisition of PURE’s four Canadian casinos. 

“Vici’s international expansion opens up a new frontier of investment opportunities as Vici aims to be an owner of premier global experiential real estate. We expanded our existing relationship with MGM Resorts by acquiring the remaining 49.9 per cent interest in the MGM Grand/Mandalay Bay joint venture, thereby accretively consolidating our ownership of two of the most economically productive assets on the Las Vegas Strip. 

“We are proud to grow our American tribal gaming relationships, partnering with Cherokee Nation Entertainment, owned by the Cherokee Nation, one of the largest tribal nations in the US, as the operator of our Gold Strike property in Mississippi. 

“We also announced a fourth loan investment with Great Wolf to fund the development of a resort adjacent to the Foxwoods Resort Casino owned by the Mashantucket Pequot Tribal Nation. Finally, in March, we continued to support Hard Rock, while incrementally expanding our international reach by purchasing senior secured notes related to the redevelopment of the Hard Rock Ottawa Casino. 

“Our Q1 2023 activity highlights VICI’s focus on building off of our transformative 2022 and our relentless pursuit of attractive domestic and international growth opportunities both within and outside of gaming.”

The post Vici Properties focused on ‘relentless pursuit’ of international growth appeared first on CasinoBeats.

Amid a slew of activity through the final three months of the past year, the company saw revenue more than double to close the time frame at $769.9m (2021: £383.2m).

This, said the real estate investment trust, was a result of the $17.2bn purchase of MGM Growth Properties as well as the $4bn acquisition of the Venetian Las Vegas, each of which closed in the first half of 2022.

Net loss attributable to common stockholders increased 114.6 per cent to $604.1m compared to income of $281.5m one year earlier, with adjusted funds from operations reported as $487.6m, an uptick of 74.8 per cent year-on-year compared to $278.9m.

Edward Pitoniak, Chief Executive Officer of Vici Properties, who last year told CasinoBeats that Las Vegas will be the busiest place on earth through the current year, said of the group’s performance: “In 2022, less than 5 years from 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. 

“In the first half of the year, we completed our transformational acquisitions of MGM Growth Properties and the Venetian Resort Las Vegas, thereby becoming the leading real estate owner on America’s most dynamic commercial street, the Las Vegas Strip. 

“In the second half of the year and into 2023, we demonstrated the advantage and flexibility provided by VICI’s scale and liquidity as we announced and originated approximately $4.5bn of investments across a variety of gaming and non-gaming opportunities, diversifying our relationships and expanding internationally into Canada with our PURE Canadian Gaming announcement in January 2023. 

“Finally, we are proud that VICI generated the highest—and only positive—total shareholder return of all S&P 500 REITs in 2022. 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.”

On a full-year basis, revenue, driven by the aforementioned purchases, increased 72.3 per cent to $2.6bn (2021: $1.5bn), with net income up to $1.11bn (2021: $1.01bn) and adjusted funds from operations surging 61.7 per cent to $1.69bn (2021: $1.04bn).

The post Vici Properties confident in accretive growth and value creation appeared first on CasinoBeats.

The pair of real estate investment trust’s detail that the acquisition of Blackstone’s share of the JV will be for $1.27bn and Vici’s assumption of the pro-rata share of the existing property-level debt. 

This debt has a principal balance of $3bn, matures in 2032, and bears interest at a fixed rate of 3.558 per cent per annum through March 2030.

The properties, situated at the south end of the Las Vegas Strip, are subject to an existing triple-net lease agreement between the JV and MGM Resorts International. This will generate annual rent of approximately $310m upon the commencement of the next rental escalation on March 1, 2023.

The MGM Grand Las Vegas and Mandalay Bay lease has a remaining initial lease term of approximately 27 years, expiring in 2050, with two ten-year tenant renewal options. Rent under the lease agreement escalates annually at two per cent until 2035, and at the greater of two per cent or CPI (subject to a three per cent ceiling) from that point on.

Vici gained its 51.1 share in the JV in August 2021 following the acquisition of MGM Growth Properties for a total consideration of $17.2bn, with this assumption of full control first detailed in December.

Edward Pitoniak, Chief Executive Officer of VICI Properties, said at the time of the transaction first being disclosed: “We have been honoured to be BREIT’s partner in the MGM Grand Las Vegas / Mandalay Bay joint venture and this transaction further demonstrates the ability of Blackstone and Vici to work together productively, now and in the future. 

“We’re excited to further our investment in MGM Grand Las Vegas and Mandalay Bay, two of the largest and highest-quality resorts in what we believe is the leisure and convention destination with the most compelling future demand outlook.

“This transaction also provides us with the opportunity to further grow our partnership with MGM Resorts International as they look to capitalise on the growing vitality of the south Strip.”

Speaking to CasinoBeats last month, Pitoniak confidently proclaimed that “Las Vegas has very few global rivals” confidently proclaimed amid a prediction that investments into the Nevadan city are something of a no brainer. 

“The post-COVID urge to gather will not wane quickly and America’s gaming assets are unrivalled places to gather,” he stated.

“The event calendar in Las Vegas in 2023 is, not to put too fine a point on it, insane. And then we get the Super Bowl in early 2024. Las Vegas will be the busiest place on earth in 2023.  

“We’re particularly excited about the global exposure that Las Vegas will generate by hosting its first F1 race, right on the legendary Strip. The world will watch and it will see, clearly, that there’s no place like Las Vegas.”

The post Vici Properties closes acquisition of Blackstone’s Mandalay Bay and MGM Grand stake appeared first on CasinoBeats.