Vici Properties: Net profit more than doubles to $2.51bn in 2023

For the 12 months to 31 December 2023, Vici posted $3.61bn in total revenue. This was comfortably higher than the $2.60bn reported in the previous financial year.

As to how Vici achieved this level of growth, much of it was put down to M&A in 2023. In total, Vici committed to a $1.10bn spend on real estate acquisition during the year.

Highlights include the acquisition of eight gaming assets in Canada with Century Casinos for an aggregate cost of $363.3m. It also spent $432.9m acquiring 38 bowling entertainment centres in a sale-leaseback transaction with Bowlero, In addition it purchased a leasehold interest of Chelsea Piers in New York City for $342.9m.

CEO Edward Pitoniak said the deals not only helped Vici’s performance in 2023 but will also support future growth plans.

“In 2023, Vici successfully deployed capital every single month of the year despite volatility across commercial real estate and in the capital markets,” Pitoniak said. “This year, our $1.80bn of capital commitments with best-in-class operators across gaming and other experiential sectors came with several Vici milestones. 

“We consummated our first international real estate acquisitions of gaming properties in Canada. We also grew financing partnerships in Saint Lucia and the UK, made our first real estate acquisition in the family entertainment sector and significantly expanded our partnerships with Canyon Ranch and Cabot.”

Revenue up across the board at Vici

Breaking down the 2023 figures, most revenue at Vici came from sales-type leases. Here, revenue amounted to $1.98bn, an increase of 35.3% from the previous year.

Revenue from lease financing receivables, loans and securities also climbed by 46.0% to $1.52bn. Golf revenue edged up 9.6% to $39.0m and other revenue was 23.0% higher at $73.3m.

As for expenses, operating costs were slashed by 72.2% to $990.0m. This was mainly due to a much lower change in allowance for credit losses. In 2023, this allowance was $102.8m, whereas for the previous year, it stood at $834.5m.

Net other costs reached $788.4m, leaving a pre-tax profit of $2.55bn, up 123.7%. Vici also received $6.1m in tax benefits but discounted $41.1m in income from non-controlling assets.

As such, net profit attributable to Vici reached $2.51bn, an increase of 124.9%. In addition, adjusted EBITDA jumped 31.4% to $2.91bn.

Similar story in Q4

Looking to the final quarter of 2023, the results made for similar reading, with total revenue increasing by 21.0% to $931.9m.

Sales-type leases revenue jumped 31.0% to $506.2m while lease financing receivables, loans and securities revenue was up 4.0% to $369.8m. A further $10.6m in revenue came from golf, up 5.0%, while other revenue climbed 2.8% to $18.3m.

Costs-wise, operating expenses were more than offset by change in allowance for credit losses. As such, operating costs were actually positive at $15.2m

Vici noted $197.2m in finance costs, leaving a pre-tax profit of $70.0, up 22.0%. The group received $9.8m in tax benefits and discounted $12.0m in income from non-controlling assets.

This resulted in a Q4 net profit of $747.8m, an increase of 23.8%. Adjusted EBITDA was also 14.7% higher at $749.6m for the quarter.