VICI Properties Inc. Completes Acquisition of JACK Cincinnati Casino and Leases to Hard Rock International
NEW YORK–(BUSINESS WIRE) – VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”), a veteran real estate investment trust, announced today that it has completed the previously announced transaction to acquire all of the member interests of a subsidiary of JACK Cincinnati , who owns the casino-entitled land and real estate and related assets of JACK Cincinnati Casino (“JACK Cincinnati”) in downtown Cincinnati, Ohio for approximately $ 558 million in cash. The company funded the transaction with cash.
Simultaneously with the closing of the transaction, the company entered into a triple net lease with Hard Rock International (“Hard Rock”). The lease, which begins today, has an initial total annual rent of $ 42.75 million and an initial term of 15 years with four 5 year renewal options for tenants. The tenant’s obligations under the lease are guaranteed by Seminole Hard Rock Entertainment, Inc., which maintains an investment grade rating from S&P Global Ratings and Fitch Ratings.
John Payne, President and Chief Operating Officer of VICI Properties, said, “We are very pleased to complete the JACK Cincinnati transaction and diversify our geographic exposure by acquiring one of only four fully-fledged limited-license casino properties in the state of Ohio be the healthiest and fastest growing regional game markets across the country. This acquisition adds 22 acres of high quality urban core real estate to our portfolio and formally builds our third tenancy through a long-term partnership with Hard Rock, a leading international gaming, entertainment and hospitality experience company. ”
David Kieske, EVP, Chief Financial Officer of VICI Properties also commented, “We financed the acquisition of JACK Cincinnati by using cash on our balance sheet and adding the annual rent of $ 42.75 million directly to the bottom line. As we look forward to our pending deals with Century Casinos, Inc. and Eldorado Resorts, Inc., which together will add an additional rent of $ 277.5 million upon closing, our successful June 2019 share offering resulted in the all equity funding required ensures these transactions to complete on a lever-neutral basis. ”
Opened in March 2013, JACK Cincinnati is located on 22 acres in the Broadway Commons area in downtown Cincinnati. The property has 100,000 square feet of gaming space with approximately 1,800 slot machines and 100 table games. In addition, the property includes 33,000 square meters of meeting space, six high-quality restaurants and two bars.
Information on VICI properties
VICI Properties is an experienced real estate investment trust that owns one of the largest portfolios of market-leading gaming, hospitality and entertainment destinations, including the world-famous Caesars Palace. The national, geographically diverse portfolio of VICI Properties includes 24 gaming facilities with an area of over 40 million square meters, approximately 15,200 hotel rooms and more than 150 restaurants, bars and nightclubs. The properties are leased to industry-leading gaming and hotel operators, including Caesars Entertainment Corporation and Penn National Gaming. VICI Properties also owns four championship golf courses and 34 acres of undeveloped land adjacent to the Las Vegas Strip. VICI Properties’ strategy is to create the highest quality, most productive adventure property portfolio in the country. Further information is available at www.viciproperties.com.
This press release contains forward-looking statements within the meaning of federal securities laws. You can identify these statements by the use of the words “assumptions,” “beliefs,” “estimates,” “expectations,” “guidelines,” “intentions,” “plans,” “projects,” and similar expressions that do not relate to them on historical matters. All statements other than historical facts are forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that, in some cases, are beyond the control of the company and that could materially affect actual results, performance or success. These risks, uncertainties and other factors include risks that we may not obtain the benefits arising from our acquisition of the JACK Cincinnati Casino Eligible Land and Real Estate and related assets. that we did not identify all of the potential risks and liabilities in our due diligence on the JACK Cincinnati real estate assets; that our pending transactions with Century Casinos, Inc. and Eldorado Resorts, Inc. (the “Pending Transactions”) may not be able to be completed on the terms or timeframes specified above, or not at all; our ability to obtain or delay government and regulatory approvals and consents necessary to complete our pending transactions or other delays or obstacles in completing those transactions; our ability to obtain the funding necessary to complete our outstanding transactions on the terms we currently or anticipate; Disruption of the real estate and the operation of the real estate in question while the outstanding transactions are pending; and the risk that the company may not receive the benefits anticipated from the outstanding transactions (including any expected increase or amount in future rental payments). Important factors that could affect the company’s business, results of operations, and financial condition are disclosed from time to time in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update or revise any forward-looking statements as a result of new information, future events or for any other reason, except as required by law.