Vici Properties has reported revenue of US$877.6m (£704.3m/€801.3m) for the first quarter of 2023, a rise of 110.7% year-on-year.
The quarter saw Vici acquire the real estate assets of four Canadian gaming properties, at a combined total of CAD$271.9m.
Edward Pitoniak, chief executive officer of Vici Properties, said that the quarter had been successful and had carried on from Vici’s accomplishments in 2022.
“Our Q1 2023 activity highlights Vici’s focus on building off of our transformative 2022 and our relentless pursuit of attractive domestic and international growth opportunities both within and outside of gaming,” said Pitoniak. “We added a new partnership and tenant with Pure Canadian Gaming and announced our first international investment with the acquisition of Pure’s four Canadian casinos.”
Pitoniak added that Vici also confirmed its acquisition of the MGM Grand/Mandalay Bay venture during the quarter, which placed Vici firmly on the Las Vegas Strip.
“We expanded our existing relationship with MGM Resorts by acquiring the remaining 49.9% interest in the MGM Grand/Mandalay Bay joint venture, thereby accretively consolidating our ownership of two of the most economically productive assets on the Las Vegas Strip.”
First quarter results
A grand majority of the revenue came from income from sales-type leases, which totaled at $478.3m. Income from lease financing receivables, loans and securities grew sharply, increasing by 409.1% to $371.0m.
The remaining amount was made up of other income at $18.3m and golf revenues at $9.8m.
The total operating expenses for the year came to $150.6m, a rise of 42.8%. Much of this came from a change in allowance for credit losses, which added up to $111.4m.
Interest expense generated a loss of $204.3m, significantly higher than the $68.1m loss generated in Q1 2022. Following income from consolidated affiliate at $1.2m, interest income at $3.0m and other losses at $1.9m, the pre-tax income came to $528.9m, up by 117.6%.
Following income tax expense at $1.0m, the net income for the quarter was $527.8m, an increase of 117.5%.