Achieving a remarkable fiscal performance in 2023, Vici Properties reported a significant rise in its total revenue, which reached a robust $3.61 billion by the year’s end on December 31. This impressive figure soared well above the $2.60 billion recorded in the previous financial period.
The cornerstone of this remarkable financial uplift was a series of calculated mergers and acquisitions (M&A) activities orchestrated throughout the year. Vici Properties deployed a substantial $1.10 billion on pivotal real estate acquisitions, a move designed to bolster its market presence and pave the way for future prosperity.
Amongst its strategic acquisitions, the company’s portfolio expanded significantly with the inclusion of eight gaming assets in Canada, purchased from Century Casinos for a combined sum of $363.3 million. A notable transaction in the entertainment sector witnessed Vici Properties acquiring 38 bowling entertainment centers through a sale-leaseback agreement with Bowlero, costing $432.9 million. Moreover, the company made a decisive entry into the family entertainment domain with the procurement of a leasehold interest in the iconic Chelsea Piers in New York City for $342.9 million.
Edward Pitoniak, the Chief Executive Officer of Vici Properties, expressed satisfaction with the deals, emphasizing their positive influence on the company’s performance in 2023, as well as their crucial role in supporting Vici’s roadmap for growth. He highlighted the diligent capital deployment throughout the year, despite the volatility characterizing the commercial real estate sector and capital markets.
Pitoniak elaborated, “This year, our $1.80 billion of capital commitments with top-tier operators in gaming and other experiential sectors culminated in several Vici milestones. Not only did we mark our first international real estate acquisitions in the gaming industry within Canada, but we also expanded our financing partnerships in Saint Lucia and the UK. In addition, we entered the family entertainment sector for the first time and significantly broadened our partnerships with entities such as Canyon Ranch and Cabot.”
An in-depth analysis of Vici’s 2023 financials reveals that the bulk of its revenue stemmed from sales-type leases, totaling $1.98 billion — a substantial 35.3% increase from the year prior. Additionally, revenue from lease financing receivables, loans, and securities experienced a 46.0% climb, touching $1.52 billion. Golf-related revenue witnessed a moderate 9.6% uptick to reach $39.0 million, while other revenue sources improved by 23.0%, amounting to $73.3 million.
On the expense ledger, Vici Properties remarkably slashed operating costs by 72.2% down to $990.0 million, primarily owing to a profoundly reduced change in the allowance for credit losses, which was $102.8 million compared to a much higher $834.5 million the previous year.
Subtracting net other costs of $788.4 million, the company’s pre-tax profits escalated by a staggering 123.7% to $2.55 billion. Vici also benefited from $6.1 million in tax reliefs but subtracted $41.1 million in income attributable to non-controlling interests.
Consequently, Vici Properties’ net profit attributable to the company surged by a notable 124.9%, culminating in a grand total of $2.51 billion. Adding to this milestone, adjusted EBITDA climbed by 31.4%, reaching $2.91 billion.
Turning our focus to the final quarter of 2023, Vici’s financials echoed the year’s success, with total revenue climbing by 21.0% to $931.9 million. Revenue from sales-type leases jumped by an impressive 31.0% to $506.2 million, and lease financing receivables, loans, and securities revenue experienced a 4.0% growth to $369.8 million. Golf operations contributed an additional $10.6 million in revenue, a 5.0% increase, while other revenue sources ascended by 2.8% to $18.3 million.
Operating expenses in the fourth quarter showed remarkably positive dynamics, with the change in allowance for credit losses tipping the scales to a net operating gain of $15.2 million. Finance costs accounted for $197.2 million, paving the way to a pre-tax profit surge of 22.0% to $70.0 million. Benefiting from $9.8 million in tax advantages and after accounting for $12.0 million in non-controlling interest income, Vici’s Q4 net profit achieved a substantial 23.8% rise, amassing $747.8 million. The adjusted EBITDA for the quarter followed suit, marking a 14.7% increase to $749.6 million.
In essence, Vici Properties’ 2023 fiscal year has been a testament to its strategic investments and operational efficacy, firmly establishing the company’s strong foothold in the real estate market and positioning it favorably for continued growth and success in the coming years.
