How VICI Properties is quietly becoming landlord to the biggest casinos in Vegas
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VICI Properties will own 12 of the Las Vegas Strip's iconic resorts and entertainment venues. It will also own 27 acres behind Bally’s Las. Vegas, Paris Las, and Planet Hollywood. The company has the rights to purchase 28 acres of land behind the Linq and Flamingo Las Las with Caesars Forum Convention Center. By spring 2022, VICi Properties' roster of 27 gaming locations will grow to 45 properties in 15 states. Two high-profile acquisitions have a combined cost of $21.2 billion.
VICI Properties is moving into gaming. VICi owns casinos, golf courses and non-gaming businesses. The company will have eight different gaming tenants. The deal involving Apollo Global Management and Las Vegas Sands will bring them together. Apollo will pay $250 million a year in rent for the Sands properties. It will also receive $1.2 billion from the transaction. Payne has worked with Apollo for more than 10 years. He believes in Apollo's management team. They will work together to improve the management of the Venetian.
By law, REITs don't pay federal income taxes. They are required to distribute at least 90 percent of their taxable earnings to shareholders. VICI is a triple-net REit, where the tenant bears all the costs of occupying and operating the property. Blackstone paid MGM Resorts more than 17 times cash flow for Bellagio and 18 times for CityCenter. Blackstones bought The Cosmopolitan of Las Vegas for $4 billion and MGM paid $1.625 billion for the operations. Venetian's portion of the deal was valued at 16 times the cashflow.
