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Vici properties reports 10.6% revenue rise in Q3 results


Casino real estate investment trust Vici has reported a revenue of $375.7m (£273.3m/324.0m) for its third quarter 2021 results ended 30 September.

This is a rise of 10.6% in comparison to Q3 2020 revenue, which came to $339.7m.

Most of the revenue was made up of income from sales and financing leases, which amounted to $292.0m. Leases of Caesars’ regional properties and its Joliet, Illinois casino brought in a combined $126.6m in revenue, down 0.4%.

Vici’s Caesars Las Vegas master lease totaled $100.6m in revenue, up 11.6%. The Greektown casino lease made up $12.8m in revenue, a decrease of $1.0m. The remainder of the income, which came from Vici’s Margaritaville, Hard Rock, Century Master and EBCI leases added up to $25.4m.

Income from lease financing loans and receivables made up $70.2m of the revenue, while golf revenue came to $6.5m. Other income generated the remaining $6.9m.

Operating expenses totaled at $30.4m, a significant decrease of 84.7% yearly. General and administrative costs added up to $8.3m, up 4.1% year-on-year. Golf expenses also grew, from $4.6m in Q3 2020 to $5.1m. However, change in allowance for credit losses experienced the most dramatic change- a drop of 94.8% to $9.0m. Other expenses totaled at $7.8m.

Factoring in interest expenses, profit before income tax came to $164.5m. Income tax at $388,000 left the total net profit for the period at $164.1m, down 58.5% year-on-year.

“In 2021, a year in which American gaming has been one of the world’s most dynamic leisure/hospitality sectors, and a year that has seen Las Vegas generate visitation levels unrivaled in global tourism, VICI has been one of the world’s most dynamic and productive real estate investment managers,” said Edward Pitoniak, CEO of Vici.

“We strongly believe owners of VICI are uniquely positioned to benefit from the quality and composition of our real estate portfolio as the institutionalization of our asset class continues.”

In August, Vici announced that it had acquired MGM Growth Properties in a deal with $17.2bn.

“We have announced over $21 billion of transactions so far in 2021, with our $4 billion acquisition of The Venetian and our transformative $17.2 billion acquisition of MGM Growth Properties,” added Pitoniak.

“Upon closing of these transactions, VICI will own 10 properties on the Las Vegas Strip, the most economically productive street in America.”