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VICI Properties Inc. Announces Agreement to Provide Capital Through Its Partner Property Growth Fund for Century Casinos’ Expansion
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Rhea-AI Sentiment
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Rhea-AI Summary
VICI Properties Inc. (NYSE: VICI) announced its plan to use its Partner Property Growth Fund to finance a new expansion for Century Casinos, Inc. (NASDAQ: CNTY). This includes a land-based casino and a 38-room hotel at Century Casino Caruthersville, Missouri, with a total project cost of about $51.9 million. Upon project completion, annual rent under the existing master lease will increase by $4.2 million. The new casino will replace the last riverboat casino in Missouri, expanding gaming options with 650 slot machines.
Positive
VICI's investment of $51.9 million for the new casino and hotel is expected to enhance the long-term value of the property.
Annual rent from Century Casinos will increase by $4.2 million, positively impacting VICI's cash flow.
The expansion increases VICI's asset portfolio and aligns with its strategy of enhancing experiential real estate.
Negative
None.
NEW YORK--(BUSINESS WIRE)--
VICI Properties Inc. (NYSE: VICI) (the “Company” or “VICI” or “VICI Properties”) announced today that it will utilize its Partner Property Growth Fund to provide capital for an exciting expansion project for Century Casinos, Inc. (NASDAQ: CNTY) (“Century” or “Century Casinos”). The project consists of a new land-based casino with an adjacent 38-room hotel tower at Century Casino Caruthersville, located in Caruthersville, Missouri. Pursuant to an amendment to the existing master lease between the parties, VICI will own the real estate improvements associated with these projects, which are expected to cost approximately $51.9 million, and annual rent under the master lease with Century will increase by approximately $4.2 million following completion of the projects.
John Payne, President and Chief Operating Officer of VICI Properties, said, “We are very excited to continue to grow our partnership with Century by funding this expansion project through our Partner Property Growth Fund. Since we jointly acquired three regional assets in 2019, the Century team has significantly enhanced performance at the properties by fine-tuning operations and focusing intently on customer satisfaction. Our team, led by Danny Valoy and Elena Keil, has collaborated with Century to structure a transaction that greatly enhances the long-term value of the property in Caruthersville, provides Century with balance sheet flexibility and allows VICI to invest free cash flow, growing our AFFO without the need for external funding.”
The new land-based casino at Century Casino Caruthersville, which will replace the last remaining riverboat casino on open water in Missouri, will feature a hotel lobby, restaurant, bar, lounge, multi-purpose meeting rooms as well as offices. The gaming space will initially offer 650 slot machines (an increase of 25% over the current number of slot machines), table games, a deli, and a bar. It will also have the possibility of an expansion for up to an additional 140 slot machines. The 38-room hotel, which sits between the existing pavilion and the new casino, will provide stunning views over the Mississippi River and Caruthersville. The Missouri Gaming Commission granted preliminary approval for the casino project at its meeting in December 2021. Additional state and local approvals will be required, including final regulatory approval from the Missouri Gaming Commission once the new casino construction project is completed.
About VICI Properties
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’ national, geographically diverse portfolio consists of 43 gaming facilities comprising over 122 million square feet and features approximately 58,700 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, Hard Rock International Inc., JACK Entertainment LLC, MGM Resorts International, Penn Entertainment, Inc., and The Venetian Las Vegas. The Company 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 nation’s highest quality and most productive experiential real estate portfolio. For additional information, please visit www.viciproperties.com.
About Century Casinos
Century Casinos, Inc. is a casino entertainment company. Century owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada; the Century Casino in Cape Girardeau and Caruthersville, Missouri, and in St. Albert, Alberta, Canada; Mountaineer Casino, Racetrack & Resort in New Cumberland, West Virginia; the Century Mile Racetrack and Casino (“CMR”) in Edmonton, Alberta, Canada; and Century Bets! Inc. (“CBS”). CBS and CMR operate the pari-mutuel off-track horse betting networks in southern and northern Alberta, respectively. Through its Austrian subsidiary, CRM, Century holds a 66.6% ownership interest in Casinos Poland Ltd., the owner and operator of eight casinos throughout Poland; and a 75% ownership interest in Century Downs Racetrack and Casino in Calgary, Alberta, Canada. Century has an agreement to operate two ship-based casinos. Century, through CRM, also owns a 7.5% interest in, and provides consulting services to, Mendoza Central Entretenimientos S.A., a company that provides gaming-related services to Casino de Mendoza in Mendoza, Argentina. Century continues to pursue other projects in various stages of development.
Century Casinos’ common stock trades on The Nasdaq Capital Market® under the symbol CNTY. For more information about Century Casinos, visit its website at www.cnty.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 the COVID-19 pandemic and changes in the economic conditions as a result thereof and risks relating to VICI’s pending 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.
