Fresh turned its $4 billion purchase of the real estate of Venetian, Palazzo and Venetian Expo, VICI Properties (NYSE:VICI) is eyeing to a greater extent gaming holding assets.
The gaming tangible estate investiture trustfulness (REIT) is in the thick of acquiring MGM Growth Properties (NYSE:MGP) for $17.2 1000000000 in equity — a business deal that will make up the emptor the largest landlord on the Las Vegas Strip.
That transaction, which is slated to secretive in the first of all half of this year, testament bump VICI’s rental income attributable to Las Vegas to 45% from a thirdly prior to acquisition. Following the purchase, Caesars Entertainment (NASDAQ:CZR) and MGM Resorts International (NYSE:MGM) testament be VICI’s largest tenants. But regular with that, the REIT isn’t saying “no” to adding to its Strip portfolio.
On a conference phone call with analysts yesterday discussing the company’s fourth-quarter results, VICI CEO Ed Pitoniak said the REIT will exercise its rights to have the foremost snap at a Las Vegas holding Caesars is provision to sell.
“We testament submit advantage of the opportunity we hold to have that very full 1st appear to control what possible advantages the add-on of another asset could have,” he told analysts.
Caesars is sounding to divest one of its Sin City venues ahead of time this year.
Caesars/VICI Partnership
VICI already owns the tangible landed estate of Caesars Palace, and the gaming accompany hasn’t said which of its other Strip assets it’s sounding to sell.
By right smart of an agreement struck inwards 2019 when Eldorado Resorts revealed its takeover adjure for “old Caesars,” the REIT has rights of first of all refusal to acquire ace of Flamingo Las Vegas, Bally’s Las Vegas, French capital Las Vegas, and Planet Hollywood Resort & Casino. Should Caesars opt to sell another Sin City asset, VICI has rights of number 1 refusal to purchase i of the remainder of the first-class honours degree radical and The LINQ Hotel & Casino.
Should Caesars opt to sell single of those properties to VICI, it implies a sale-leaseback trade could follow in the cards, under which the gaming keep company would defend operational moderate of the locus and make up hire to the REIT.
Based on the prices of recent Strip asset sales, analysts are forecasting Caesars overlooking $2 1000000000000 to $3 1000000000 inwards the divestment of unity of its Las Vegas properties.
Downtown, Regional Markets, Too
VICI also has its eyes on downtown Las Vegas.
We don’t possess any existent land inwards downtown Las Vegas. If you insure how Circa has changed that market place and the right smart people believe almost that market, (Golden Nugget owner) Tillman (Fertitta) and his squad get through a great chore at that place for years,” said President and COO John Payne on the call. “So if there’s an opportunity on existent land in the downtown Las Vegas market, which is a giving market.”
Boyd Gaming (NYSE:BYD) is the largest manipulator inward downtown Las Vegas, and the companionship owns its existent landed estate inwards that area.
Payne also pointed come out that VICI doesn’t possess existent acres in regional gaming markets such as Colorado, Lake Charles, La., Pittsburgh, Reno, and Rhode Island. That could follow a mark the REIT is looking for to long pillow its regional portfolio at some head inwards the future.