VICI Properties posts revenue up 38.9% to $3.6B in M&A-heavy full-year 2023

Casino landlord VICI Properties has revealed the revenue results for the quarter and year ended December 31. The company's revenue for Q4 was $931 million, growing by 21% year-over-year. Meanwhile, revenue for the full year 2023 increased by 38.9% from the prior year to $3.6 billion, up from the $2.60 billion reported in 2022. 

Much of VICI's level of growth was put down to M&A activity in 2023. In total, VICI committed to a $1.10 billion spend on real estate acquisition during the year. 

These deals include the purchase of eight gaming properties in Canada from Century Casinos for an aggregate cost of $363.3 million. The company also spent $432.9 million acquiring 38 bowling entertainment centers in a sale-leaseback transaction with Bowlero, and in addition, it purchased a leasehold interest in Chelsea Piers in New York City for $342.9 million.

According to VICI CEO Edward Pitoniak, the deals not only helped Vici’s performance in 2023 but will also support future company 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 $1.80 billion 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," the CEO added.

Breaking down the Q4 figures, sales-type lease revenue jumped 31% to $506.2 million while lease financing receivables, loans, and securities revenue were up 4% to $369.8 million. A further $10.6 million in revenue came from golf, up 5%, while other revenue climbed 2.8% to $18.3 million. Costs-wise, operating expenses were offset by the change in allowance for credit losses. As a result, operating costs were positive at $15.2 million. 

VICI saw $197.2 million in finance costs, leaving a pre-tax profit of $70.0, up 22%. The group received $9.8 million in tax benefits and discounted $12 million in income from non-controlling assets, which resulted in a Q4 net profit of $747.8 million, an increase of 23.8%. Adjusted EBITDA was also 14.7% higher at $749.6 million for the quarter. 

Full-year overview 

During 2023, most revenue at VICI also came from sales-type leases, as revenue amounted to $1.98 billion, an increase of 35.3% from the previous year. Meanwhile, revenue from lease financing receivables, loans, and securities also climbed by 46% to $1.52 billion. Golf revenue edged up 9.6% to $39 million and other revenue was 23% higher at $73.3 million.

As for expenses, operating costs were cut by 72.2% to $990 million, mainly due to a much lower change in allowance for credit losses. In 2023, this allowance was $102.8 million, whereas for the previous year, it stood at $834.5 million.

Net other costs reached $788.4 million, leaving a pre-tax profit of $2.55 billion, up 123.7%. VICI also received $6.1 million in tax benefits but discounted $41.1 million in income from non-controlling assets. In consequence, net profit attributable to VICI reached $2.51 billion, an increase of 124.9%. In addition, adjusted EBITDA jumped 31.4% to $2.91 billion.