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VICI Properties Inc. (NYSE: VICI) has acquired the real estate assets of PURE Canadian Gaming Corp.'s casinos in Edmonton, Calgary, and Lethbridge for approximately C$271.9 million (US$200.8 million). This acquisition marks VICI's first international investment and aims to diversify its tenant roster with a long-term partnership with PURE. The deal includes a triple-net lease with an annual rent of C$21.8 million (US$16.1 million), reflecting an 8.0% capitalization rate and a 25-year term with renewal options. The transaction is expected to be immediately accretive to VICI's earnings.
Positive
Diversification of tenant roster with the acquisition of PURE Canadian Gaming Corp.
Transaction is immediately accretive to earnings.
Long-term master lease agreement provides stable income with a 25-year term.
Opens opportunities for future growth in the Canadian market.
Negative
None.
– Marks VICI’s First International Investment–
– Further Diversifies VICI’s Tenant Roster Through Long-Term Partnership with PURE Canadian Gaming Corp.–
– Acquisition to be Immediately Accretive –
NEW YORK--(BUSINESS WIRE)--
VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or “VICI”), an experiential real estate investment trust, announced today that it has acquired the real estate assets of PURE Casino Edmonton in Edmonton, Alberta, PURE Casino Yellowhead in Edmonton, Alberta, PURE Casino Calgary in Calgary, Alberta, and PURE Casino Lethbridge in Lethbridge, Alberta, from PURE Canadian Gaming Corp. (“PURE” and such real estate assets, the “PURE Portfolio”) for an aggregate purchase price of approximately C$271.9 million (US$200.8 million). VICI financed the transaction with a combination of cash on hand and from drawing down funds under its existing revolving credit facility in Canadian dollars.
Simultaneous with the acquisition, VICI entered into a triple-net master lease agreement with PURE (the “PURE Master Lease”) covering the PURE Portfolio. The PURE Master Lease has an initial total annual rent of approximately C$21.8 million (US$16.1 million) representing an implied acquisition capitalization rate of 8.0%, and an initial term of 25 years, with four 5-year tenant renewal options. PURE’s obligations under the PURE Master Lease are guaranteed by the parent entity of PURE.
John Payne, President and Chief Operating Officer of VICI Properties, said, “Over the last five and a half years, VICI has built a portfolio of market-leading experiential real estate. Today’s announcement marks another momentous first for VICI as we expand our footprint internationally into Canada with the acquisition of the PURE Portfolio. This transaction highlights our ability to source, structure, and fund cross-border transactions, widening our opportunity set as we continue along our growth trajectory. We are pleased to add PURE as our eleventh tenant and look forward to a mutually beneficial partnership.”
VICI Properties Inc. is an S&P 500® experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas, three of the most iconic entertainment facilities on the Las Vegas Strip. VICI Properties’ geographically diverse portfolio consists of 49 gaming facilities across the United States and Canada comprising approximately 124 million square feet and features approximately 59,300 hotel rooms and more than 450 restaurants, bars, nightclubs and sportsbooks. Its properties are leased to industry leading gaming and hospitality operators, including Caesars Entertainment, Inc., Century Casinos, Inc., the Eastern Band of Cherokee Indians, Foundation Gaming & Entertainment, LLC, Hard Rock International Inc., JACK Entertainment LLC, MGM Resorts International, Penn Entertainment, Inc., PURE Canadian Gaming Corp., and The Venetian Las Vegas. VICI Properties has a growing array of investing and financing partnerships with leading non-gaming experiential operators, including Great Wolf Resorts, Cabot, Canyon Ranch and Chelsea Piers. VICI Properties also owns four championship golf courses and 34 acres of undeveloped and underdeveloped land adjacent to the Las Vegas Strip. VICI Properties’ strategy is to create the highest quality and most productive experiential real estate portfolio. For additional information, please visit www.viciproperties.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” “will,” and similar expressions that do not relate to historical matters. All statements other than statements of historical fact are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors which are, in some cases, beyond VICI’s control and could materially affect actual results, performance, or achievements. Important risk factors that may affect VICI’s business, results of operations and financial position (including those stemming from changes in economic conditions and risks relating to VICI’s pending and recently completed transactions) are detailed from time to time in VICI’s filings with the Securities and Exchange Commission. VICI does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.
What did VICI Properties acquire from PURE Canadian Gaming Corp.?
VICI Properties acquired the real estate assets of PURE Casino Edmonton, PURE Casino Yellowhead, PURE Casino Calgary, and PURE Casino Lethbridge for approximately C$271.9 million (US$200.8 million).
When was the acquisition of the PURE Portfolio announced?
The acquisition was announced on January 9, 2023.
What is the expected impact of the acquisition on VICI's earnings?
The acquisition is expected to be immediately accretive to VICI's earnings.
What type of lease did VICI enter into with PURE Canadian Gaming?
VICI entered into a triple-net master lease agreement with PURE covering the acquired properties.
How long is the lease agreement between VICI and PURE?
The lease agreement has an initial term of 25 years with four 5-year renewal options.
