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VICI Properties Inc. Completes Acquisition of Margaritaville Resort Casino and Lease to Penn National Gaming, Inc.

January 2, 2019

NEW YORK--(BUSINESS WIRE)--Jan 2, 2019--VICI Properties Inc. (NYSE:VICI) (“VICI Properties” or the “Company”), an experiential real estate investment trust, today announced it has completed the previously disclosed transaction to acquire the land and real estate assets of the Margaritaville Resort Casino, located in Bossier City, Louisiana (“Margaritaville Resort Casino”), for approximately $261 million in cash, with Penn National Gaming, Inc. (NASDAQ:PENN) (“Penn National” or the “Tenant”) acquiring the operating assets of the Margaritaville Resort Casino for approximately $115 million in cash. The aggregate purchase price paid in connection with the acquisition of the real property and operations of the Margaritaville Resort Casino was approximately $376 million.

Simultaneous with the closing of this transaction, Penn National entered into a triple-net lease agreement with the Company. The lease has an initial total annual rent of approximately $23.2 million and an initial term of 15 years, with four 5-year renewal options. The Tenant’s obligations under the lease are guaranteed by Penn National. The Company funded the net purchase price using available cash from its 2018 equity raising activities.

John Payne, President and Chief Operating Officer of VICI Properties said, “Closing the Margaritaville acquisition in partnership with Penn National is a meaningful achievement coming within 15 months of the Company’s formation. The transaction is our first step towards fulfilling our objective to diversify our tenant roster with best-in-class gaming operators. Having known and worked with senior leaders at Penn National, I look forward to VICI Properties building a long-term mutually productive partnership with this world class operator.”

Mr. Payne continued, “In addition to tenant diversity, this transaction also enhances our presence in the Bossier/Shreveport market with the acquisition of the newest facility in the market. Since opening in 2013, the Margaritaville Resort Casino has consistently been one of the leaders in the region. We look forward to working in partnership with Penn National to continue providing a high-quality experience for customers, employees and the community at large.”

David Kieske, Chief Financial Officer of VICI Properties also commented, “With the closing of the Margaritaville transaction, we have deployed all of the net proceeds raised in our initial public offering last year at an aggregate cap rate of 9.3%. As we begin 2019, we still have all of the net proceeds from our recent and opportunistic $700 million equity raise and will use that cash to fund our already-announced Greektown acquisition and future growth opportunities. Indeed, no other American REIT raised as much primary equity in 2018 as VICI did, with our two equity raises totaling $2.1 billion of gross proceeds, or approximately 21% of the $10 billion of REIT primary equity raised in the year. When combined with the $1.0 billion of equity raised in our December 2017 private placement, we have raised over $3 billion of primary equity in less than 13 months. We are very gratified for the faith that institutional investors have placed in VICI and we believe that the growth of our institutional shareholder base is key to the institutionalization of our sector. Moving forward, we will continue to carry out a strategy whereby we will finance growth with prudent leverage, while maintaining sufficient liquidity for long-term growth.”

Margaritaville Resort Casino

Built in 2013, Margaritaville Resort Casino is the premier venue for gaming, lodging, dining and entertainment experiences in Northern Louisiana. The property comprises approximately 4 acres of fee land and nearly 30 acres of leased land. The hotel and casino built on the fee land contain approximately 26,500 square feet of casino space featuring 1,215 slots and 50 tables, 395 hotel rooms, an island-style escape theme, 6 restaurants and food and beverage outlets and a 15,000 square foot 1,000-seat theater. Approximately 1,500 parking spaces are located on the leased land.

About VICI Properties

VICI Properties is an experiential real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-renowned Caesars Palace. VICI Properties’ national, geographically diverse portfolio consists of 22 gaming facilities comprising over 39 million square feet and features approximately 14,800 hotel rooms and more than 150 restaurants, bars and nightclubs. Its properties are leased to leading brands such as Caesars, Horseshoe, Harrah’s and Bally’s, which prioritize customer loyalty and value through great service, superior products and constant innovation. VICI Properties also owns four championship golf courses and 34 acres of undeveloped 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.

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,” 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 the Company’s control and could materially affect actual results, performance, or achievements. Among those risks, uncertainties and other factors are risks that the Company may not achieve the benefits contemplated by the acquisition of the real estate assets; and risks that not all potential risks and liabilities have been identified in the Company’s due diligence. Although the Company believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. The Company cannot assure you that the assumptions upon which these statements are based will prove to have been correct. Additional important factors that may affect the Company’s business, results of operations and financial position are described from time to time in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, Quarterly Reports on Form 10-Q and the Company’s other filings with the Securities and Exchange Commission. The Company 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20190102005580/en/

CONTACT: Investors:

Investors@viciproperties.com

(646) 949-4631

Or

ICR

Jacques Cornet

Jacques.Cornet@icrinc.comMedia:

PR@viciproperties.com

(646) 949-4631

Or

ICR

Phil Denning and Jason Chudoba

Phil.Denning@icrinc.com, (646) 277-1258

Jason.Chudoba@icrinc.com, (646) 277-1249

KEYWORD: UNITED STATES NORTH AMERICA LOUISIANA NEW YORK

INDUSTRY KEYWORD: ENTERTAINMENT CASINO/GAMING REIT CONSTRUCTION & PROPERTY

SOURCE: VICI Properties Inc.

Copyright Business Wire 2019.

PUB: 01/02/2019 04:15 PM/DISC: 01/02/2019 04:16 PM

http://www.businesswire.com/news/home/20190102005580/en

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