VICI Properties, one of the America largest owners of gaming, accommodation and entertainment destinations. VICI in their great portfolio includes leased properties such as Caesars, Horseshoe, Harrah’s and Bally’s. Including around 40 million square feet of space, 15.000 hotel rooms and more than 150 restaurants, nightclubs and bars.
VICI Plan Ends Much Better
The owner of almost two dozen of Caesars Entertainment Corp. properties is happy that has raised more money than they hope from an initial public offering.
The aim of the real estate company was to sell 50 million shares at prices between $19-$21 per share, however, the reality for them was much better, they sold d over 60.5 million shares at a price of $20 per share, raising over $1.21bn for the company.
Increasing the Over-Allotment Option to 9.1 Million
Alongside with the raising, VICI also increased the over-allotment option to 9.1 million shares from 7.5 million. This move will enable the company to raise an additional $181 million in the IPO. This initial public offering became the fourth largest real estate investment trust in American financial history.
On the first day of trading the share on the New York Stock Exchange at a $20 a share, which gives the company an estimated value of around $8 billion. VICI’s IPO was closed on 5 February.
The chief executive officer of the real estate company, VICI Ed Pitoniak in an interview with the Las Vegas Review Journal, said: “There is growing interest in gaming real estate as a real estate asset class worthy of institutional investment.
“It is still a relatively new sector versus so many other well established REIT sectors. We are fortunate to be a point where that interest is growing strongly.”
The momentum of the real estate investment trust is business that leases space and they collect the rent on income producing property in their property sectors.
VICI Properties was born as a part of a two-year-long action in which Caesars exited bankruptcy, they lease around 15 casinos like Caesars Palace and Harrahs which allows them to operate the casinos. However, to Caesars debt holders were given shares of VICI when Caesars exited bankruptcy in October 2017. The validity of the lease is on 15 years, with additional bolt-on leases of five years.
The net income of the company for the first nine months of 2017 is $439 million on $649 million in revenue, and adjusted earnings before interest, tax, depreciation and amortization EBITDA of $544.6 million in that period.
There are rumors that the opposite, the rival real estate investment trust company MGM Growth Properties, owned by MGM Resorts offer to buy VICI in the period right after preceding the initial public offering, but these scattered reports have not been confirmed.