VICI PROPERTIES INC. — Call Transcript 2025

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Second Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. Please note that this conference call is being recorded today, July 31st, 2025. I will now turn the call over to Samantha Gallagher, General Counsel with VICI Properties. Thank you, Operator, and good morning. Everyone should have access to the company's Second Quarter 2025 earnings release and supplemental information. The release and supplemental information can be found in the Investor Section of the VICI Properties website at www.VICIproperties.com. Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of words such as will, believe, expect, should, guidance, intends, outlook, projects, or other similar phrases, are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. I refer you to the company's SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. During the call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available on our website in our Second Quarter 2025 earnings release, our supplemental information, and our filings with the SEC. For additional information with respect to non-GAAP measures of certain tenants and/or counterparties discussed on this call, please refer to the respective company's public filings with the SEC. Hosting the call today, we have Ed Pitoniak, Chief Executive Officer; John Payne, President and Chief Operating Officer; David Kieske, Chief Financial Officer; Gabe Wasserman, Chief Accounting Officer; and Moira McCloskey, Senior Vice President of Capital Markets. Ed and team will provide some opening remarks, and then we'll open the call to questions. With that, I'll turn the call over to Ed. Thank you, Samantha, and good morning, everyone. I'll begin today by going back to what I talked about in my opening remarks during our last earnings call in late April. In those remarks, I spoke of the paramount importance of the VICI dividend in creating value for VICI shareholders. Those remarks struck a chord for a lot of you, as the feedback we received from many of our active management owners was along the line of, "The dividend is indeed important, and we're glad you're focused on it." Today, I want to build on those remarks by focusing on what the dividend critically contributes to, and that's total return. Total return is, of course, the function of dividend return plus, dependent on valuation, an increment of return generated by the capitalization of earnings growth. In a recent note in early July, the BofA equity strategist Savita Subramanian wrote this headline, "Welcome Back to a Total Return World." Savita goes on to say, and I quote, "We expect a rising contribution to total return from dividends. Dividends contributed 40% of total returns from 1936-2021, but just over 16% over the past decade. From here, we think the contribution of dividends to returns could rise demonstrably. With aging demographics and sticky inflation risks, the supply-demand argument for inflation-protected income via stocks is, in our view, compelling and bullish." Savita was recently featured in a Wall Street Journal cover story on this topic of total return and the contribution of dividends to total return. In that article, as well as in a podcast with Meb Faver, Savita shares an analysis of nearly 100 years of total return from the Russell 1000. In that analysis, she finds that the highest total returns over that period have been generated by stocks with higher dividends, specifically by stocks in the second and first quintiles of dividend yield, in that order. While stocks with the lowest dividend yields, the fifth quintile, significantly lagged the returns of higher-yielding stocks, and not by a little, but by quite a lot. Nearly 4x higher return for the second quintile and about 2.5x for the first quintile versus the fifth quintile, according to the Wall Street Journal. Again, what Savita stresses is that dividend return is a key driver of delivering superior total return along with the capitalization of earnings growth. In the case of VICI, we see our total return building blocks as having three key components: dividend return, capitalization of same-store earnings growth, and capitalization of new-store growth, whether through new acquisitions of property or new loans on property. Our 2025 same and new-store growth expectations are embedded in the updated 2025 earnings guidance David will discuss in detail with you shortly. The midpoint of our revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024. We believe this growth rate within the net lease rate category will put us among the leaders in AFFO per share growth for 2025. To date in 2025, we are generating our earnings growth through a combination of same-store earnings growth and new-store external growth. When it comes to same-store earnings growth, VICI's owners benefit from a same-store NOI growth rate that, according to Green Street's latest published net lease research, is over 5x higher than the average projected rate of same-store NOI growth for net lease REITs. Our external or new-store growth has been funded substantially through the deployment of our retained cash flow, meaning at this point, we are growing our 2025 earnings without significantly growing our share count and without significantly growing our net debt. What you are seeing through this internally funded growth are the advantages of VICI having achieved our current level of scale with more than $600 million a year of retained cash flow available for investment. I will also note that we are converting our revenue growth to earnings growth at a high rate of flow-through, given our continuing discipline around our G&A costs, which, as percentages of both revenues and assets, are among the lowest of large-cap REITs. We believe our current use of our internal funding capability, or what we call capital markets independence, together with exacting cost discipline, is a sound strategy for defending our dividend, growing our earnings, and creating the conditions that can potentially lead to compelling total return no matter if external funding windows are open or closed. To be sure, we may, in the quarters and years ahead, develop investment opportunities that require and also accretively support issuance of incremental equity and debt in greater size. For the time being, we believe we are serving our stakeholders well by generating earnings growth and striving for compelling total return without significant equity and credit market reliance. Before I turn the call over to John, I'll finish by repeating what Savita said. Welcome back to a total return world. Here at VICI, we always live in a total return world, and that's because we always believe in the power of compounding. Total return is the power source of compounding. No matter what the market does, we never lose faith in that power. Now over to you, John. Thanks, Ed. Good morning to everyone. VICI's power source of compounding, our total return, is supported by our disciplined approach to building a high-quality portfolio and cultivating a network of best-in-class operating partners. The investments announced during the second quarter with Red Rock Resorts, as well as Cain International and Eldridge Industries, exemplify the relationship-based nature of our capital and the dynamic operators with whom we seek to partner. As we shared on our first quarter earnings call, we entered into an agreement to provide up to $510 million for the development of the North Fork Mono Casino & Resort, which will be developed and managed by Red Rock Resorts. Red Rock Resorts is a best-in-class gaming developer and operator with decades of experience across commercial and tribal assets. We are thrilled to initiate our partnership through this project, as we have known and have wanted to work with the Red Rock team for years. During the second quarter, we also increased our investment in the mezzanine loan related to the development of the One Beverly Hills by $150 million, for a total commitment of $450 million. We initially launched our strategic relationship with Cain International and Eldridge Industries through our investment in One Beverly Hills during the first quarter, and our incremental investment is representative of the continued partnership. We look forward to continuing to support Cain International and Eldridge Industries on the One Beverly Hills development as they work on their next leg of financing for the project. Cultivating new relationships is a key for VICI, but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of VICI's sustained growth. While recent headlines around Las Vegas have focused on slowing visitation, dips in gross gaming revenue, and a decrease in Canadian travel, we remain confident in the city's long-term trajectory. As Las Vegas has experienced multiple years of record-breaking growth, it is not unexpected to see a period of normalization, particularly as it laps a Super Bowl year amidst broader economic uncertainty. As Steve Hill, the CEO of the Las Vegas Convention and Visitors Authority, recently noted, the higher-end consumer remains resilient on the Las Vegas Strip, with higher-end properties still running at over 90% occupancy levels. The lower-end consumer who is budget-conscious is the consumer who has declined recently, and the operators of the lower-tier properties are already making adjustments to attract that cohort. From VICI's perspective, our Las Vegas Strip real estate portfolio continues to be well-positioned. Importantly, although these near-term dynamics may impact operator performance, VICI's rental income remains well-insulated from cyclical fluctuations in our tenants' financials. That is the value of our model. Long-term leases, 90% of which by rent roll, include corporate guarantees that serve as a powerful risk mitigant. Guaranteeing rent at the parent level adds cushion to VICI's overall lease coverage, allowing operators to pay rent from the total system, not just brick-and-mortar earnings, thus limiting the idiosyncratic risk of any one geography or asset. This structure has also supported VICI's track record of 100% rent collection in cash on time since inception. Even as Las Vegas experiences what we believe to be temporary moderation, we have conviction in both the staying power of the city as a global entertainment epicenter and in the creativity of our operating partners. A recent article from the Las Vegas Weekly discusses how operators are focusing on attracting new generations as millennials overtake Gen X in visitor volume share. The article highlights millennial and Gen Z tastes for experiences different than the traditional gambling enjoyed by their parents and grandparents, and experiential innovation is evident on the Las Vegas Strip, with the starting of day club concepts, elevated food and beverage experiences, increasing popularity of professional sports, and more. There are also long-term tailwinds for Las Vegas, including the planned construction of the Brightline West High-Speed Rail Line, the extension of the F1 contract through 2027, and the forthcoming addition of the A’s Stadium. We feel very fortunate to be woven into the fabric of this iconic city and excited about the opportunity we believe continues to be offered in the years ahead. Now I will turn the call over to David, who will discuss our financial results and guidance. David. Thanks, John. We greatly appreciate you all joining us today. Starting with the balance sheet and recent activity. In April, we closed our bond offering, where we issued $400 million of three-year notes at a coupon of 4.75%, and $900 million of 10-year notes at a coupon of 5.625%, for a blended coupon of 5.34%, including the impact of our hedging program. We now have no debt coming due until the second half of 2026, where we have September and December maturities, which we plan to address next year. Subsequent to quarter end, we settled approximately 9.7 million shares under our forward equity ATM program for $296 million of net proceeds, which were partially used to repay $175 million that was outstanding on our revolving credit facility and to fund the incremental One Beverly Hills investment. Taking this activity into account, we have approximately $2.9 billion in total liquidity, comprised of $325.6 million of estimated proceeds now available under our outstanding forwards, $2.4 billion of availability under our revolving credit facility, and approximately $233 million in cash as of quarter end. Touching on leverage, when we account for the revolver repayment, our total debt is $17.1 billion, and our net debt to annualized second quarter adjusted EBITDA is approximately 5.1x, well within our target leverage range of 5x-5.5x. We have a weighted average interest rate of 4.47%, as adjusted to account for our hedge activity, and a weighted average of 6.5 years to maturity. Our constant focus on managing our cost of capital, balance sheet, and liquidity profile through volatile markets allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders. In turning the income statement, AFFO per share was $0.60 for the quarter, an increase of 4.9% compared to $0.57 for the quarter ended June 30, 2024. Our results once again highlight our highly efficient triple net model, given the increase in adjusted EBITDA as a proportion of the corresponding increase in revenue. Our margins continue to run strong in the high 90% range when eliminating non-cash items. Our G&A was $14.6 million for the quarter, and as Ed mentioned, as a percentage of total revenue, was only 1.5%, which continues to be one of the lowest ratios in not only the triple net sector, but across all REITs. Finally, moving to guidance. As we announced last night, we are raising our AFFO guidance for 2025 in both absolute dollars as well as on a per-share basis. AFFO for the year ending December 31, 2025, is now expected to be between $2.5 billion and $2.52 billion, or between $2.35 and $2.37 per diluted common share. Compared to our prior AFFO per share guidance of $2.33-$2.36, the raise represents an increase at both ends of the range by $0.02 on the bottom and $0.01 on the top end. Based on the midpoint of our raised 2025 guidance, VICI now expects to deliver year-over-year AFFO per share growth of 4.4%. Just as a reminder, our guidance does not include the impact on operating results from any transactions that have not closed, interest income from any loans that do not yet have final draw structures, possible future acquisitions or dispositions, capital markets activities, or other non-recurring transactions or items. With that, operator, please open the line for questions. Of course. We will now begin today's Q&A session. If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad now. When preparing to ask your question, please ensure you are unmuted locally, and questioners are asked to limit themselves to one question and one follow-up each. Our first question today comes from John Kilichowski from Wells Fargo. John, your line is open. Please go ahead. Hi, this is Cheryl on for John. Good morning, and thank you for taking my question. What drove the decision to increase your mezzanine loan investment on the One Beverly Hills by $150 million? Just curious to know your thoughts. Yeah, it's David. I can start. As we talked about with the original announcement, this was part of a bigger financing that Cain and Eldridge are undertaking to develop what is upwards of a $6 billion, $7 billion, $8 billion project in Beverly Hills. Our commitment to the project will likely increase over time as they work on implementing the construction financing to finish the project. Right now, this is a combination of a bank financing and an SBL financing that we are entering into. This has a maturity in March of 2026, and Cain and, again, Eldridge are working on a broader construction financing that is in process and will be able to take the project to completion in 2027. Gotcha. Thank you. That's helpful. We've seen a handful of loan and mezzanine opportunities recently. Are you seeing or expecting any fee simple opportunities to come from these relationships? Yeah, in certain cases, yes. It will take time for, obviously, those to realize themselves. Certainly, in the case of Cain and Industries, as an example, given the breadth and depth of their investments across the experiential spectrum, we would very much anticipate participating with them in our acquisition of fee simple real estate. That was obviously at the heart of what Todd Boehly and Jonathan Goldstein said in the release we put out back in, was that February, about our forming a strategic alliance with Cain and Eldridge around that very topic. Got it. Thank you. That's helpful. The next question comes from Barry Jonas from Truist. Barry, your line is open. Please go ahead. Hey, guys. Good morning. Maybe broadly speaking, how have deal discussions been as of late for either sale leaseback or other loans? Any major differences in the last 90 days, either gaming, non-gaming, existing tenants, or potential new tenants? Just curious at a high level how trends have been. Yeah, Barry, nice to hear from you. No big difference between quarter to quarter. Obviously, we started the company eight years ago as a gaming REIT, and we're looking at that point only at gaming. Obviously, over the past six, seven years, we've continued to diversify to look at other sectors. As you continue to expand the funnel, there's obviously more and more conversations that we have. As Ed just finished talking about, we've also used our credit book to build relationships, new relationships that at the time may not have wanted to sell their real estate. Barry, the answer to your question is we're quite busy. We have a lot of different sectors that we're looking at, and there have not been any changes at all in the past 90 days. Got it. That's helpful. Your closest competitor has taken a stand perhaps a bit against iGaming proliferation. Not sure if you've recently addressed your views on a public call. Just curious to hear what they may be at this time. Go ahead, John. No, I think you're probably talking about our closest competitor. I assume your GLPI has taken a stance on iGaming. Obviously, it's something that we continue to monitor. It is important to many of our tenants to their overall credit. As I talked in my opening remarks, we look at our tenants across not only the bricks and mortar, but also their iGaming portfolio. It's something that we will continue to monitor. Obviously, we're aware of what's going on around the United States at this point. You know, Barry, I'll just add, I live in a state, Rhode Island, where the motto is the lively experiment. I would say that American gaming is engaged right now in a lively experiment on how the sector will continue to evolve, both brick and mortar and digital. In the case of digital, both online sports betting and iGaming. I think regulators, state legislatures, and regulators have a lot of decisions to make on how they will manage the interactivity of those various categories of gaming in a way that does the best things for their economy and their state treasuries, but also for job growth and sustainment. Clearly, brick and mortar casinos employ a lot more people within a given jurisdiction than either iGaming or online sports betting do. Perfect. Thank you so much, guys. The next question comes from Anthony Paolone from JPMorgan. Anthony, please go ahead. Thanks. Good morning. My first question relates to making debt investments versus straight property investments. I know there's some sensitivity around the debt book because of the shorter duration. If you wanted to bring it up to, say, 10% of the balance sheet or something, do you think there are good opportunities out there that you're seeing that you're just being sensitive to because of the size of the book? Do you feel like you're doing what you want to do there? I'm just wondering about the broader opportunity set there. We would really be very focused. We are very focused, I should say, Tony, on the cadence of capital as it goes out the door, and obviously very much the cadence of capital as it comes back in the door, and making sure that we are ready for not only, again, the allocation of capital out, but the return of capital to us and how we will manage earnings flow. We are in a time right now where I think, Tony, given your coverage of real estate broadly and deeply, we are in a time right now when credit is definitely getting a lot of attention. There does appear to generally be, not just for VICI, but generally appear to be more credit opportunity than real estate transaction opportunity. That is not solely specific to VICI. Okay. Thanks. My second question is on the income statement in the quarter. I think you had about $7 million of transaction costs. It just seemed a bit high for a quarter that was fairly quiet. I was wondering if you can just elaborate on what drove that. We're constantly active in looking at opportunities, evaluating opportunities. Sometimes things get to the goal line, and sometimes things don't. We wrote off some costs that were pursuit costs from prior quarters that are no longer pursuit costs. Okay, thank you. The next question is from John DeCree from CBRE. John, please go ahead. Hi, everyone. Good morning. Thank you for taking my questions. John, in your prepared remarks, you talked a little bit about your views on Las Vegas and some of the thoughts about the summer and then the long-term. Exciting stuff happening there. We agree. Curious, given your experience, the regional gaming markets have seen a nice uptick lately, and we're hearing that as well. I'm wondering if you could provide any kind of industry insights on how you're feeling about that market. I think it certainly highlights the value of the diversified portfolio of your tenants and your business. Curious if you think that's some real life that we're seeing in the regional markets and how you're feeling about that industry overall. Yeah. John, good to talk to you. We continue to be very excited about the industry as a whole. As you know, we love to break it up as there's Las Vegas and everyone else. We break the region. As you know, there's so many different regions. That's the beauty of our portfolio, right, that we've got all these different regional markets. There's different reasons why we are seeing upticks in revenues and EBITDA out of the regional market. Overall, our statement is we still really like the gaming business. We obviously are heavily invested and have a diversified portfolio in both areas. We think we can grow in both areas. Excited to see the operators continue to be creative to drive revenues in the regional markets. Like I said in my opening remarks, this is just a temporary issue in Las Vegas. When you look at the forward booking for group business in quarter four and the first two quarters of 2026, business is going to be strong. It's just a credit to the operators that in regional gaming they have had some years where they're a little bit down, but they're being more creative and adding assets. A lot of capital deployment has been put in our assets in the regional markets. It's exciting to see that those operators are getting some results. Thanks, John. Maybe to switch gears, John or Ed, this one might be for you. The amount of volume and capital that your tenants are investing in your assets is kind of unique to the gaming industry and to your business. We've heard that this week, whether it's New Orleans or MGM Grand. Obviously, Venetian has been a big one. It seems like that kind of gets overlooked a lot in the value of your stock price. I know The Venetian Resort Las Vegas is a good growth opportunity for you. You think about ways to highlight that value or crystallize it. I mean, are there opportunities to do more buying investments from your tenants that are committing significant capital like that? Just curious your thoughts on that opportunity. Yeah. I'll start, John. Before I do, I just want to apologize to those listening that our responses are, in some cases, evidently cutting in and out. We apologize for that. I believe we are in the process of fixing that or have fixed that. It's a very good question, John. From what we've been able to determine, I have to qualify this. I'm sitting next to our GC, who always wants to make sure I qualify everything I say. We cannot identify another commercial real estate category where tenants invest more into the building than ours do, with possibly the exception of data centers, where obviously the tenant invests a lot into the asset. It is obviously a different kind of investment. We are very happy when our partners invest in our buildings and thereby de facto increase the value of our buildings. If there is the opportunity for us to contribute capital, we're obviously very excited and honored to do that in partnership with them. There is simply no question that the capital invested in our buildings, which, John, now runs into the billions, doesn't it? Yeah. Yeah, it's unlike any category we've been able to identify outside of data centers. I do, John, think longer term. Over the years, we'll have opportunities to continue to use our capital to help accelerate the growth of our tenants' business, particularly in the large boxes that we see in Las Vegas. It's why it's a market that's just so unique. There's nothing like it where one of our boxes, Venetian, is what, 17, 18 million sq ft. We hope that continues to be a pillar of growth for our company in years to come. Thanks, John. Thanks, Ed. Appreciate your insights, as always. Thank you. The next question is from David Katz from Jefferies. David, please go ahead. Morning, and thanks for taking my question. I do want to follow that up. It's a similar but a different angle. Some of your tenants and partners have begun talking to us about the effects of the new tax regulations. If I'm getting the drift properly, and I'll ask for your confirmation of that, it appears to induce them to invest in the properties, either expand, renovate, add amenities, et cetera. It also appears to induce them to continue doing that ongoing, to continue to capture the bonus depreciation and therefore the tax benefit. Have you looked at it? Am I reading that correctly? Given that I think this is part of the investment case that you've been making, have you begun to talk to your tenants about it? What kinds of conversations are you having? Thanks. Yeah. Yeah. David, you're absolutely right. There were a number of elements of the new tax bill that are beneficial. Obviously, we're very glad of the fact that the REIT dividend deduction was maintained, along with a number of other features that are beneficial to REITs. In the case you're talking about, the bonus depreciation, yes, it is a very powerful and positive factor for our operating partners when it comes to investing in their buildings. I would point out, David, and I know you cover hotels as well, bonus depreciation is a great thing, but you still need the capital in order to make the funding. What the gaming business does is create economic headroom that allows for that incremental capital investment. One of the things that I think will not only sustain, but continue to increase the competitiveness of Las Vegas over the coming years and even decades is the ability to continually reinvest, especially on the group side. I think the U.S. convention center and convention hotel landscape is one that has seen significant underinvestment in the last 10, 15, 20 years, going back to even the GFC. The fact that Vegas can continually invest in the main convention center, Mandalay Bay, Venetian, MGM Grand, all of the big boxes is a real competitive advantage for Las Vegas. Now, we introduced our Property Partner Growth Fund a few years ago. Obviously, our Venetian investment is probably the hallmark example of us putting our capital into our buildings incrementally. We will continue to make sure our tenants understand that our capital can be the cheapest source of capital they could find to continue to improve their buildings. If I can just follow that up, I'm curious about the comment of convention facilities you feel are being underinvested. Could you elaborate on that, and why do you think that to be the case? I think, David, going back to as far back as the GFC, you've seen especially the urban hotel landscape be one that has generally not been invested in, whether it be by the hotel REITs or other owners of big box convention hotels. It doesn't give me any pleasure to say this, but there's a lot of tired, full-service, convention-serving hotel product across major American cities. That combined with the fact that most of the big convention centers in the big cities have not seen anywhere near the kind of investment that Las Vegas has seen, whether, again, at the main convention center or, as an example, at Mandalay Bay, where MGM put $100 million into the Mandalay Bay meeting facilities, the 2.2 or whatever million sq ft it is. Was it last year, John? Yeah. A couple of years ago. David, the other thing that happened was during COVID, many cities cut their sales teams of selling conventions. Las Vegas did not do that. There's been an uptick of visitation of groups to Las Vegas that visit brand new facilities with brand new technology when they used to have their meetings in other cities with kind of rundown facilities. That has really helped accelerate the growth of the group business in Las Vegas, which we're excited about because we own a lot of facilities with great meeting and convention space. Thanks very much. Appreciate it. Thank you, David. The next question comes from Smedes Rose from Citi. You'll understand, please go ahead. Hi. Thanks. This is probably just a reminder, but as New York inches closer to issuing gaming licenses, I think specifically by the end of the year, if MGM were to get one at the Yonkers facility, are they obligated to use you as a source of financing for their expansion there, or would they just have the option to do that? It's the latter. They have the option to use our capital, and we're monitoring the situation. I don't think anyone knows at this time where the three licenses are going to go. To answer your question, they have the option to use our financing. Okay. Presumably, there will be a third license issued. Would you guys be able to participate in that if you wanted to, or is there some sort of restriction on only working with MGM in New York? There's no restriction. Market. There's no restriction in the New York license. Sorry, I might have been cut off. There's no restriction at all for us. Okay, thank you. Thank you. Thank you, Smedes. The next question comes from Daniel Guglielmo from Capital One. Daniel, your line is open. Hi, everyone. Thank you for taking my questions. You all have the eight Canadian properties, and we've heard about decline in visitation to Las Vegas from Canada. When you talk with those Canadian operators, are they seeing benefit from less of that outbound traffic to the U.S. this year? That's a great question, Dan. We have been very pleased with the performance of the assets in Canada. I think it's still a little bit too early to say exactly why they're seeing an uptick, but I think you're on to something that more Canadians are staying at home, visiting the local assets there, and the performance out of those assets has been quite good this year. I appreciate that, Tom. Thank you. As a follow-up to an earlier question, some of the loan investment maturities are coming up, and the principal balances will get paid down. Do you have that potential capital inflow kind of earmarked for certain investments or projects? If the investment environment isn't right at that time to deploy, what would you expect to do with that excess capital? Because we're having some difficulties with the speaker feed, please stand by while we reconnect them. Confirming we're now rejoined by the speaker team. Please continue when you're ready. Yeah. Our apologies, folks. Gabe had just begun to answer the question that Dan had asked about the use of regained proceeds. Gabe? Yeah. Apologies, I repeat myself. Not sure when we got cut out. We're actively working with all of our partners to understand when loans may be repaid and then working internally on evaluating alternative investment options when that capital comes back, or alternatively talking with them about refinancing options. I think the Great Wolf Perryville loan is a great example. Last year, that loan matured and was part of a pool that the Blackstone and Great Wolf team securitized and refinanced, and we participated in that refinancing. A lot of times, there are opportunities to reinvest with our partners and keep that capital outstanding. It's something we monitor very actively internally and always thinking about what we're going to do when that money comes back. Great. Thank you. The next question comes from Chris Darling from Green Street. Chris, please go ahead. Hey, thanks. Good morning. Just circling back to the iGaming conversation, as you think about states where iGaming currently exists or may be legalized over time, to what extent does this impact how you underwrite either incremental capital deployment or maybe new casino sale lease specs relative to, say, jurisdictions without any near-term sightline for iGaming? Yeah, Chris, it's a great question. When we started the company, at that point, there actually wasn't any states that had iGaming. Some of our leases and some of our underwriting did not take that into effect. Obviously, now we have a few years of states that have online sports betting. They have bricks and mortar, and they have iGaming. We better understand what has been the impact to all of those three pillars. It definitely is a factor in the way that we think about underwriting. The other thing we keep up with is what states may not have iGaming today but are continuing to have discussions about iGaming and what could that impact have positively and negatively on the asset that we would be underwriting in that state. It's an excellent question. It is top of mind, and we continue to learn as it goes. Yeah. Chris, I'll just add that, obviously, in any investment category, investors should always be selective in how and where and when investments are made. I would say, to reiterate, I think a point we made a call or two ago, I do believe that the regional gaming landscape is, in particular, a landscape right now where an investor needs to take care in investing selectively, not only given trends around iGaming, but supply growth trends in certain jurisdictions. I think, in that respect, we will continue to be very disciplined in how we invest capital generally, but in particular, we will be monitoring each and every regional gaming investment opportunity with particular rigor. Got it. All helpful thoughts. Appreciate it. I just want to circle back as well to the conversation around Vegas, a little bit of the softer backdrop, which you're on record as saying you feel this is more of a temporary phenomenon. Given the softer backdrop, I wonder if that's influencing whether your tenants or perhaps other owners are thinking about new capital investment opportunities that they're perhaps deciding whether or not to move forward with. Do you see any impact to any extent? Not at all. I think everyone is aligned on this who are big operators in Las Vegas. This happens at times. It's a small blip. Again, you look at forward-looking bookings of group, you look at the attendance that's expected in the sports facilities that are built and are being built, you look at the tailwinds that this city has. We have not had one of our tenants talk about this short-term blip impacting long-term capital investment. In fact, just walk down the Strip right now, you see a lot of capital investment happening at our assets and others. It continues to be a city that we're very bullish on. It's just having a little bit of a slow summer. Yeah. I would just add, Chris, that our Las Vegas operators benefit from longer-term booking visibility, thanks especially to the group segment that gives them greater confidence in investing capital. I believe you cover Ryman, and I would point out the degree to which our Las Vegas operators, akin to Ryman, enjoy that same forward-booking visibility that really significantly de-risks a business. I don't want to say it eliminates risk, but it definitely de-risks it versus a business that's entirely dependent on FIT. That's an interesting point, Ed. I appreciate the thoughts and the time. Thank you. The next question comes from Ronald Campton from Morgan Stanley. Ronald, please go ahead. Your line is open. Hey, good morning. This is Jenny on Veron. Thanks for taking my question. First, it's regarding the Caesars Forum Convention Center call option you have in September. I'm just curious about your latest thoughts on the deal and if you would like to exercise the call option. Thank you. Yeah, Jenny, it's David. Thanks for the question. As we've talked about with our other calls in the past, we like the optionality we have around that. If we think about that asset in particular, it sits next to a couple of assets that we already own. It sits right on some land that we already own. It's a very attractive asset. We obviously just talked about the conviction we have around Las Vegas. We'll assess that opportunity. It opens up here in September and goes for a couple of years. We got a little bit of time to figure out what we might do with that asset. Nice. Also, we know there are about 33 acres of undeveloped or underdeveloped land around the Vegas Strip that seems like currently leased to Caesars. I'm just curious about your plans to potentially monetize or develop those assets, maybe together with Caesars. Just curious about your latest thoughts on that. Thank you. Yeah. I would say we think of that as a land bank. We have no current plans, nor does Caesars have any current plan, as far as we know, to develop that land. It definitely does have value as a land bank as we look ahead over the coming decades and as Vegas continues to achieve what we think is an unrivaled position globally as a hospitality, entertainment, and increasingly a sports destination. That land very much should increase in value over time. Okay, that's all for me. Thank you. The next question comes from Greg McGinniss from Scotiabank. Greg, please go ahead. Hey, just one question for me. John, I just want to dig in a bit more on the expanded funnel that you talk about. Besides gaming, which areas do you see right now as having, maybe potentially, the most investment opportunity for VICI, or which industries are you more excited about today? For both that industry and gaming, what do you think actually gets new operators interested in pursuing sale lease-back funding so we can see maybe some more acquisitions in the future? Yeah. Great, great question. We've talked about many of the sectors that we've been spending time in: theme parks, indoor water parks, ski resorts. We are spending a lot of time in sports. You've heard us talk about this on the professional level, the collegiate level. We've obviously made a good size investment in the youth sports area. We're excited about the growth there. It's a little bit in many of these sectors of how our capital can work and how it can help accelerate the growth of a team or of a resort. I can't tell you exactly which ones are going to pop. What I can tell you is we are spending a lot of time in many of these, educating folks about VICI, about how we think about partnership, how we think we could do one transaction, but most importantly, how we can be a partner for longer term. Those are the sectors. It still doesn't mean we aren't continuing to look at gaming. When we start talking about non-gaming, I always like to bring up that we continue to look at the casino business as well. Greg, I'll just add that our ability to do sale lease-backs and to generally get capital out the door depends to a great degree on serving the needs of growth-minded operators, in particular operators who want to grow their store counts, whether it be in gaming or in other experiential categories. We've come through a period here where the ambition levels to grow store count have not been necessarily what they have in the past. It's interesting to look, particularly in gaming, to see who's trading really well. I would cite, for example, our partners at Red Rock, who are growing store count. They did it, obviously, in Durango. They're doing it in North Fork, helped by our capital. I think, over time, more and more operators will realize if you really want to get anything resembling a premium valuation, you have to show the market how you're going to grow. I appreciate that. I just wanted to go back to kind of youth sports. There was recently an article in The New York Times talking about private equity getting more involved. Are you seeing opportunities to co-invest there? Are you speaking with some of these private equity funds about those investment opportunities? Yeah, Greg. You're reading good articles. Absolutely, there's ways to partner. There's ways that I'm sure, at times, they're looking at things that we're looking at and we're competing. That's exactly the relationship building that we are doing not only in youth sports, but in many other sectors where you are seeing other forms of financing and capital looking at the same sectors that we are. Sometimes we will partner, and sometimes we'll go it alone. That's kind of the philosophy of how we are going to grow in those sectors. Okay, thank you. The next question comes from Caitlin Burrows from Goldman Sachs. Caitlin, please go ahead. Hi. This is Jeremy Kuhl on for Caitlin. Circling back on a topic earlier in the call, given supply and regional markets, which regional markets are you most interested in next? Apologies for the continued interruption. Please stand by. We are now rejoined by the speaker team. Please continue when you're ready. Again, our apologies, folks. We greatly appreciate your patience if you're still there. We appear to be having some Wi-Fi issues. We're now on Haze's phone. Haze, thanks for your phone. Just to repeat Jeremy's question, Jeremy asked which regional markets might be attractive to us. I will now turn it back over to John. We apologize. If I'm repeating myself a little bit here, I think the number one regional market we'd love to be in is in Las Vegas. It continues to be strong. There are world-class assets. There are markets like Reno that have some wonderful assets, but we're not in that market. There are new markets like Virginia, I would say, or other regional markets, just to name three that we'd be interested in being a part of. I'm sure there's another four or five that I could go through, but you get the idea. Great. Thanks. Just one quick follow-up. I saw on the news that Lucky Strike tenant VICI recently did a reverse sale lease-back. Does that impact VICI at all? Are there any concerns that any other tenants could do something similar? Thanks. Yeah, Jeremy. It's David. To answer your question, Greg, it does not impact VICI. We've got a great relationship with Tom and Bobby over at Lucky Strike. You may have seen this morning, they had some acquisitions of some outdoor water parks as well. They continue to grow their business, and how they ultimately capitalize their business over the long term is up to them. I think there could be more opportunities to grow with them in the future. They're an example of what Ed just talked about, the operator that's growing their store count. There could potentially be more to come with them over time. The next question comes from Ravi Vaidya from Mizuho. Ravi, please go ahead. Hi there. I hope you guys are doing well. I wanted to ask about the Red Rock deal. Has any capital been drawn down for that deal thus far? Maybe can you describe broadly the opportunity then going forward? You mentioned interest in the locals' market in Las Vegas. I think Red Rock owns a little less than 500 acres in that area. Is that something that you'd be interested in partnering with and in a relationship you want to expand upon? Yeah, Ravi, it's David. I mean, we put up just under $80 million on the initial drop when we announced that loan development. Just the way the funding cadence works, there's a little bit of pause from our capital, and then the draw schedule will pick it back up later this year. If you listen to Red Rock's call last quarter, not just two days ago, Steve and Frank and Lorenzo talked about the long-term relationship they've had with VICI and how nothing's off the table. There's no imminent opportunities to do sale lease-backs. As we talked about on this call, when you do good things with your partners, opportunities may come in the future. You should listen to their most recent call from two days ago. Ed just talked about they're growing their store count. Frank and Lorenzo speak specifically to their development capabilities and how good they are at expanding their portfolios. We're thrilled to partner with them out in Madera, California, and this will be a home run opportunity for everybody involved. Got it. Thank you. Our final question today comes from Jamie Feldman from Wells Fargo. Jamie, please go ahead. Great. Thanks for taking the follow-up from our team. I just want to go back to the bonus depreciation discussion. It could be a pretty meaningful wave of spending here. Lots of projects that probably do have a meaningful amount of tenant CapEx, which, based on your comments before, sounds like a formula for you. How much time are you thinking about real shifts in your investment attention based on what we might be seeing coming down the pipeline in terms of just very large-scale CapEx projects that need capital? Yeah. I think, Jamie, that because obviously this bill just passed, and with it, this bonus depreciation component, I don't think everybody had a whole bunch of plans kind of sitting on the shelf waiting for this. I do think what you are likely to see over the next year is a lot of planning based upon the benefits now of this bonus depreciation and with those plans getting executed in the next year, two, and three years, and that capital being spent over that time. I don't think you're going to see an immediate spending of capital, but it has certainly created an environment where over the next few years, it should unleash a very strong wave of capital investment, hopefully with some of our money. In any case, capital that will increase the value of our building. I guess my question is more, would you consider shifting away from your traditional focus, gaming, experiential, if there are major projects that look interesting? No, not necessarily. Without side experiential, I would say right now it is out of scope for our investing. I don't know if you're sort of referring to data centers or something like that. Right now, we continue to believe very much in the secular power and secular sustainability of experiential as an investment category. Okay. Going back to your initial comments about the dividend. As you think about the earnings and cash flow profile, I know Tony asked before about debt investments versus real estate equity investments. I think that you broke up a little bit on the answer. Do you have a sense of, when you think about dividend composition, how much of the cash flow you'd want from debt investments versus fee simple equity investments? Yeah. I wouldn't say we necessarily break it, decompose the dividend in that way. What we certainly look at is how we are going to grow AFFO per share over time and the degree to which we can use both retained and regained capital to continue to grow our AFFO per share and thus grow our dividend. I wouldn't say we necessarily decompose the AFFO in such a way that it then derives dividend policy. This concludes today's Q&A session. I'll hand the call back to Ed for some closing comments. Yeah, I just want to, again, apologize to everybody for the technical difficulties today. Appreciate your patience and very much look forward to talking to you next time when we are very determined we will not have these issues. Thank you. This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

Speaker 3: Good day, ladies and gentlemen. Thank you for standing by. Welcome to the VICI Properties Second Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. Please note that this conference call is being recorded today, July 31st, 2025. I will now turn the call over to Samantha Gallagher, General Counsel with VICI Properties. Good day, ladies and gentlemen. good day ladies and gentlemen Thank you for standing by. thank you for standing by Welcome to the VICI Properties Second Quarter 2025 Earnings Conference Call. welcome to the vici properties second quarter 2025 earnings conference call At this time, all participants are in listen-only mode. at this time all participants are in listen-only mode Please note that this conference call is being recorded today, July 31st, 2025. please note that this conference call is being recorded today july 31st 2025 I will now turn the call over to Samantha Gallagher, General Counsel with VICI Properties. i will now turn the call over to samantha gallagher general counsel with vici properties

Speaker 20: Thank you, Operator, and good morning. Everyone should have access to the company's Second Quarter 2025 earnings release and supplemental information. The release and supplemental information can be found in the Investor Section of the VICI Properties website at www.VICIproperties.com. Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of words such as will, believe, expect, should, guidance, intends, outlook, projects, or other similar phrases, are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. I refer you to the company's SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. Thank you, Operator, and good morning. thank you operator and good morning Everyone should have access to the company's Second Quarter 2025 earnings release and supplemental information. everyone should have access to the company's second quarter 2025 earnings release and supplemental information The release and supplemental information can be found in the Investor Section of the VICI Properties website at www.VICIproperties.com. the release and supplemental information can be found in the investor section of the vici properties website at www.viciproperties.com Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. some of our comments today will be forward-looking statements within the meaning of the federal securities laws Forward-looking statements, which are usually identified by the use of words such as will, believe, expect, should, guidance, intends, outlook, projects, or other similar phrases, are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. forward-looking statements which are usually identified by the use of words such as will believe expect should guidance intends outlook projects or other similar phrases are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect Therefore, you should exercise caution in interpreting and relying on them. therefore you should exercise caution in interpreting and relying on them I refer you to the company's SEC filings for a more detailed discussion of the risks that could impact future operating results and financial condition. i refer you to the company's sec filings for a more detailed discussion of the risks that could impact future operating results and financial condition During the call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available on our website in our Second Quarter 2025 earnings release, our supplemental information, and our filings with the SEC. For additional information with respect to non-GAAP measures of certain tenants and/or counterparties discussed on this call, please refer to the respective company's public filings with the SEC. Hosting the call today, we have Ed Pitoniak, Chief Executive Officer; John Payne, President and Chief Operating Officer; David Kieske, Chief Financial Officer; Gabe Wasserman, Chief Accounting Officer; and Moira McCloskey, Senior Vice President of Capital Markets. During the call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. during the call we will discuss certain non-gaap measures which we believe can be useful in evaluating the company's operating performance These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. these measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with gaap A reconciliation of these measures to the most directly comparable GAAP measure is available on our website in our Second Quarter 2025 earnings release, our supplemental information, and our filings with the SEC. a reconciliation of these measures to the most directly comparable gaap measure is available on our website in our second quarter 2025 earnings release our supplemental information and our filings with the sec For additional information with respect to non-GAAP measures of certain tenants and/or counterparties discussed on this call, please refer to the respective company's public filings with the SEC. for additional information with respect to non-gaap measures of certain tenants and/or counterparties discussed on this call please refer to the respective company's public filings with the sec Hosting the call today, we have Ed Pitoniak, Chief Executive Officer; John Payne, President and Chief Operating Officer; David Kieske, Chief Financial Officer; Gabe Wasserman, Chief Accounting Officer; and Moira McCloskey , Senior Vice President of Capital Markets. hosting the call today we have ed pitoniak chief executive officer john payne president and chief operating officer david kieske chief financial officer gabe wasserman chief accounting officer and moira mccloskey senior vice president of capital markets Ed and team will provide some opening remarks, and then we'll open the call to questions. With that, I'll turn the call over to Ed. Ed and team will provide some opening remarks, and then we'll open the call to questions. ed and team will provide some opening remarks and then we'll open the call to questions With that, I'll turn the call over to Ed. with that i'll turn the call over to ed

Speaker 2: Thank you, Samantha, and good morning, everyone. I'll begin today by going back to what I talked about in my opening remarks during our last earnings call in late April. In those remarks, I spoke of the paramount importance of the VICI dividend in creating value for VICI shareholders. Those remarks struck a chord for a lot of you, as the feedback we received from many of our active management owners was along the line of, "The dividend is indeed important, and we're glad you're focused on it." Today, I want to build on those remarks by focusing on what the dividend critically contributes to, and that's total return. Total return is, of course, the function of dividend return plus, dependent on valuation, an increment of return generated by the capitalization of earnings growth. Thank you, Samantha, and good morning, everyone. thank you samantha and good morning everyone I'll begin today by going back to what I talked about in my opening remarks during our last earnings call in late April. i'll begin today by going back to what i talked about in my opening remarks during our last earnings call in late april In those remarks, I spoke of the paramount importance of the VICI dividend in creating value for VICI shareholders. in those remarks i spoke of the paramount importance of the vici dividend in creating value for vici shareholders Those remarks struck a chord for a lot of you, as the feedback we received from many of our active management owners was along the line of, "The dividend is indeed important, and we're glad you're focused on it." Today, I want to build on those remarks by focusing on what the dividend critically contributes to, and that's total return. those remarks struck a chord for a lot of you as the feedback we received from many of our active management owners was along the line of "the dividend is indeed important and we're glad you're focused on it." today i want to build on those remarks by focusing on what the dividend critically contributes to and that's total return Total return is, of course, the function of dividend return plus, dependent on valuation, an increment of return generated by the capitalization of earnings growth. total return is of course the function of dividend return plus dependent on valuation an increment of return generated by the capitalization of earnings growth In a recent note in early July, the BofA equity strategist Savita Subramanian wrote this headline, "Welcome Back to a Total Return World." Savita goes on to say, and I quote, "We expect a rising contribution to total return from dividends. Dividends contributed 40% of total returns from 1936-2021, but just over 16% over the past decade. From here, we think the contribution of dividends to returns could rise demonstrably. With aging demographics and sticky inflation risks, the supply-demand argument for inflation-protected income via stocks is, in our view, compelling and bullish." Savita was recently featured in a Wall Street Journal cover story on this topic of total return and the contribution of dividends to total return. In that article, as well as in a podcast with Meb Faver, Savita shares an analysis of nearly 100 years of total return from the Russell 1000. In a recent note in early July, the BofA equity strategist Savita Subramanian wrote this headline, "Welcome Back to a Total Return World." Savita goes on to say, and I quote, "We expect a rising contribution to total return from dividends. in a recent note in early july the bofa equity strategist savita subramanian wrote this headline "welcome back to a total return world." savita goes on to say and i quote "we expect a rising contribution to total return from dividends Dividends contributed 40% of total returns from 1936- 2021, but just over 16% over the past decade. dividends contributed 40% of total returns from 1936- 2021 but just over 16% over the past decade From here, we think the contribution of dividends to returns could rise demonstrably. from here we think the contribution of dividends to returns could rise demonstrably With aging demographics and sticky inflation risks, the supply-demand argument for inflation-protected income via stocks is, in our view, compelling and bullish." Savita was recently featured in a Wall Street Journal cover story on this topic of total return and the contribution of dividends to total return. with aging demographics and sticky inflation risks the supply-demand argument for inflation-protected income via stocks is in our view compelling and bullish." savita was recently featured in a wall street journal cover story on this topic of total return and the contribution of dividends to total return In that article, as well as in a podcast with Meb Faver, Savita shares an analysis of nearly 100 years of total return from the Russell 1000. in that article as well as in a podcast with meb faver savita shares an analysis of nearly 100 years of total return from the russell 1000 In that analysis, she finds that the highest total returns over that period have been generated by stocks with higher dividends, specifically by stocks in the second and first quintiles of dividend yield, in that order. While stocks with the lowest dividend yields, the fifth quintile, significantly lagged the returns of higher-yielding stocks, and not by a little, but by quite a lot. Nearly 4x higher return for the second quintile and about 2.5x for the first quintile versus the fifth quintile, according to the Wall Street Journal. Again, what Savita stresses is that dividend return is a key driver of delivering superior total return along with the capitalization of earnings growth. In that analysis, she finds that the highest total returns over that period have been generated by stocks with higher dividends, specifically by stocks in the second and first quintiles of dividend yield, in that order. in that analysis she finds that the highest total returns over that period have been generated by stocks with higher dividends specifically by stocks in the second and first quintiles of dividend yield in that order While stocks with the lowest dividend yields, the fifth quintile, significantly lagged the returns of higher-yielding stocks, and not by a little, but by quite a lot. while stocks with the lowest dividend yields the fifth quintile significantly lagged the returns of higher-yielding stocks and not by a little but by quite a lot Nearly 4x higher return for the second quintile and about 2.5x for the first quintile versus the fifth quintile, according to the Wall Street Journal. nearly 4x higher return for the second quintile and about 2.5x for the first quintile versus the fifth quintile according to the wall street journal Again, what Savita stresses is that dividend return is a key driver of delivering superior total return along with the capitalization of earnings growth. again what savita stresses is that dividend return is a key driver of delivering superior total return along with the capitalization of earnings growth In the case of VICI, we see our total return building blocks as having three key components: dividend return, capitalization of same-store earnings growth, and capitalization of new-store growth, whether through new acquisitions of property or new loans on property. Our 2025 same and new-store growth expectations are embedded in the updated 2025 earnings guidance David will discuss in detail with you shortly. The midpoint of our revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024. We believe this growth rate within the net lease rate category will put us among the leaders in AFFO per share growth for 2025. To date in 2025, we are generating our earnings growth through a combination of same-store earnings growth and new-store external growth. In the case of VICI, we see our total return building blocks as having three key components: dividend return, capitalization of same-store earnings growth, and capitalization of new-store growth, whether through new acquisitions of property or new loans on property. in the case of vici we see our total return building blocks as having three key components dividend return capitalization of same-store earnings growth and capitalization of new-store growth whether through new acquisitions of property or new loans on property Our 2025 same and new-store growth expectations are embedded in the updated 2025 earnings guidance David will discuss in detail with you shortly. our 2025 same and new-store growth expectations are embedded in the updated 2025 earnings guidance david will discuss in detail with you shortly The midpoint of our revised 2025 guidance now calls for 4.4% growth in AFFO per share versus 2024. the midpoint of our revised 2025 guidance now calls for 4.4% growth in affo per share versus 2024 We believe this growth rate within the net lease rate category will put us among the leaders in AFFO per share growth for 2025. we believe this growth rate within the net lease rate category will put us among the leaders in affo per share growth for 2025 To date in 2025, we are generating our earnings growth through a combination of same-store earnings growth and new-store external growth. to date in 2025 we are generating our earnings growth through a combination of same-store earnings growth and new-store external growth When it comes to same-store earnings growth, VICI's owners benefit from a same-store NOI growth rate that, according to Green Street's latest published net lease research, is over 5x higher than the average projected rate of same-store NOI growth for net lease REITs. Our external or new-store growth has been funded substantially through the deployment of our retained cash flow, meaning at this point, we are growing our 2025 earnings without significantly growing our share count and without significantly growing our net debt. What you are seeing through this internally funded growth are the advantages of VICI having achieved our current level of scale with more than $600 million a year of retained cash flow available for investment. When it comes to same-store earnings growth, VICI's owners benefit from a same-store NOI growth rate that, according to Green Street's latest published net lease research, is over 5x higher than the average projected rate of same-store NOI growth for net lease REITs. when it comes to same-store earnings growth vici's owners benefit from a same-store noi growth rate that according to green street's latest published net lease research is over 5x higher than the average projected rate of same-store noi growth for net lease reits Our external or new-store growth has been funded substantially through the deployment of our retained cash flow, meaning at this point, we are growing our 2025 earnings without significantly growing our share count and without significantly growing our net debt. our external or new-store growth has been funded substantially through the deployment of our retained cash flow meaning at this point we are growing our 2025 earnings without significantly growing our share count and without significantly growing our net debt What you are seeing through this internally funded growth are the advantages of VICI having achieved our current level of scale with more than $600 million a year of retained cash flow available for investment. what you are seeing through this internally funded growth are the advantages of vici having achieved our current level of scale with more than $600 million a year of retained cash flow available for investment I will also note that we are converting our revenue growth to earnings growth at a high rate of flow-through, given our continuing discipline around our G&A costs, which, as percentages of both revenues and assets, are among the lowest of large-cap REITs. We believe our current use of our internal funding capability, or what we call capital markets independence, together with exacting cost discipline, is a sound strategy for defending our dividend, growing our earnings, and creating the conditions that can potentially lead to compelling total return no matter if external funding windows are open or closed. To be sure, we may, in the quarters and years ahead, develop investment opportunities that require and also accretively support issuance of incremental equity and debt in greater size. I will also note that we are converting our revenue growth to earnings growth at a high rate of flow-through, given our continuing discipline around our G&A costs, which, as percentages of both revenues and assets, are among the lowest of large-cap REITs. i will also note that we are converting our revenue growth to earnings growth at a high rate of flow-through given our continuing discipline around our g&a costs which as percentages of both revenues and assets are among the lowest of large-cap reits We believe our current use of our internal funding capability, or what we call capital markets independence, together with exacting cost discipline, is a sound strategy for defending our dividend, growing our earnings, and creating the conditions that can potentially lead to compelling total return no matter if external funding windows are open or closed. we believe our current use of our internal funding capability or what we call capital markets independence together with exacting cost discipline is a sound strategy for defending our dividend growing our earnings and creating the conditions that can potentially lead to compelling total return no matter if external funding windows are open or closed To be sure, we may, in the quarters and years ahead, develop investment opportunities that require and also accretively support issuance of incremental equity and debt in greater size. to be sure we may in the quarters and years ahead develop investment opportunities that require and also accretively support issuance of incremental equity and debt in greater size For the time being, we believe we are serving our stakeholders well by generating earnings growth and striving for compelling total return without significant equity and credit market reliance. Before I turn the call over to John, I'll finish by repeating what Savita said. Welcome back to a total return world. Here at VICI, we always live in a total return world, and that's because we always believe in the power of compounding. Total return is the power source of compounding. No matter what the market does, we never lose faith in that power. Now over to you, John. For the time being, we believe we are serving our stakeholders well by generating earnings growth and striving for compelling total return without significant equity and credit market reliance. for the time being we believe we are serving our stakeholders well by generating earnings growth and striving for compelling total return without significant equity and credit market reliance Before I turn the call over to John, I'll finish by repeating what Savita said. before i turn the call over to john i'll finish by repeating what savita said Welcome back to a total return world. welcome back to a total return world Here at VICI, we always live in a total return world, and that's because we always believe in the power of compounding. here at vici we always live in a total return world and that's because we always believe in the power of compounding Total return is the power source of compounding. total return is the power source of compounding No matter what the market does, we never lose faith in that power. no matter what the market does we never lose faith in that power Now over to you, John. now over to you john

Speaker 6: Thanks, Ed. Good morning to everyone. VICI's power source of compounding, our total return, is supported by our disciplined approach to building a high-quality portfolio and cultivating a network of best-in-class operating partners. The investments announced during the second quarter with Red Rock Resorts, as well as Cain International and Eldridge Industries, exemplify the relationship-based nature of our capital and the dynamic operators with whom we seek to partner. As we shared on our first quarter earnings call, we entered into an agreement to provide up to $510 million for the development of the North Fork Mono Casino & Resort, which will be developed and managed by Red Rock Resorts. Red Rock Resorts is a best-in-class gaming developer and operator with decades of experience across commercial and tribal assets. Thanks, Ed. thanks ed Good morning to everyone. good morning to everyone VICI's power source of compounding, our total return, is supported by our disciplined approach to building a high-quality portfolio and cultivating a network of best-in-class operating partners. vici's power source of compounding our total return is supported by our disciplined approach to building a high-quality portfolio and cultivating a network of best-in-class operating partners The investments announced during the second quarter with Red Rock Resorts, as well as Cain International and Eldridge Industries, exemplify the relationship-based nature of our capital and the dynamic operators with whom we seek to partner. the investments announced during the second quarter with red rock resorts as well as cain international and eldridge industries exemplify the relationship-based nature of our capital and the dynamic operators with whom we seek to partner As we shared on our first quarter earnings call, we entered into an agreement to provide up to $510 million for the development of the North Fork Mono Casino & Resort, which will be developed and managed by Red Rock Resorts. as we shared on our first quarter earnings call we entered into an agreement to provide up to $510 million for the development of the north fork mono casino & resort which will be developed and managed by red rock resorts Red Rock Resorts is a best-in-class gaming developer and operator with decades of experience across commercial and tribal assets. red rock resorts is a best-in-class gaming developer and operator with decades of experience across commercial and tribal assets We are thrilled to initiate our partnership through this project, as we have known and have wanted to work with the Red Rock team for years. During the second quarter, we also increased our investment in the mezzanine loan related to the development of the One Beverly Hills by $150 million, for a total commitment of $450 million. We initially launched our strategic relationship with Cain International and Eldridge Industries through our investment in One Beverly Hills during the first quarter, and our incremental investment is representative of the continued partnership. We look forward to continuing to support Cain International and Eldridge Industries on the One Beverly Hills development as they work on their next leg of financing for the project. We are thrilled to initiate our partnership through this project, as we have known and have wanted to work with the Red Rock team for years. we are thrilled to initiate our partnership through this project as we have known and have wanted to work with the red rock team for years During the second quarter, we also increased our investment in the mezzanine loan related to the development of the One Beverly Hills by $150 million, for a total commitment of $450 million. during the second quarter we also increased our investment in the mezzanine loan related to the development of the one beverly hills by $150 million for a total commitment of $450 million We initially launched our strategic relationship with Cain International and Eldridge Industries through our investment in One Beverly Hills during the first quarter, and our incremental investment is representative of the continued partnership. we initially launched our strategic relationship with cain international and eldridge industries through our investment in one beverly hills during the first quarter and our incremental investment is representative of the continued partnership We look forward to continuing to support Cain International and Eldridge Industries on the One Beverly Hills development as they work on their next leg of financing for the project. we look forward to continuing to support cain international and eldridge industries on the one beverly hills development as they work on their next leg of financing for the project Cultivating new relationships is a key for VICI, but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of VICI's sustained growth. While recent headlines around Las Vegas have focused on slowing visitation, dips in gross gaming revenue, and a decrease in Canadian travel, we remain confident in the city's long-term trajectory. As Las Vegas has experienced multiple years of record-breaking growth, it is not unexpected to see a period of normalization, particularly as it laps a Super Bowl year amidst broader economic uncertainty. As Steve Hill, the CEO of the Las Vegas Convention and Visitors Authority, recently noted, the higher-end consumer remains resilient on the Las Vegas Strip, with higher-end properties still running at over 90% occupancy levels. Cultivating new relationships is a key for VICI, but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of VICI's sustained growth. cultivating new relationships is a key for vici but the quality of our existing real estate portfolio and the quality of our operators behind it is the foundation of vici's sustained growth While recent headlines around Las Vegas have focused on slowing visitation, dips in gross gaming revenue, and a decrease in Canadian travel, we remain confident in the city's long-term trajectory. while recent headlines around las vegas have focused on slowing visitation dips in gross gaming revenue and a decrease in canadian travel we remain confident in the city's long-term trajectory As Las Vegas has experienced multiple years of record-breaking growth, it is not unexpected to see a period of normalization, particularly as it laps a Super Bowl year amidst broader economic uncertainty. as las vegas has experienced multiple years of record-breaking growth it is not unexpected to see a period of normalization particularly as it laps a super bowl year amidst broader economic uncertainty As Steve Hill, the CEO of the Las Vegas Convention and Visitors Authority, recently noted, the higher-end consumer remains resilient on the Las Vegas Strip, with higher-end properties still running at over 90% occupancy levels. as steve hill the ceo of the las vegas convention and visitors authority recently noted the higher-end consumer remains resilient on the las vegas strip with higher-end properties still running at over 90% occupancy levels The lower-end consumer who is budget-conscious is the consumer who has declined recently, and the operators of the lower-tier properties are already making adjustments to attract that cohort. From VICI's perspective, our Las Vegas Strip real estate portfolio continues to be well-positioned. Importantly, although these near-term dynamics may impact operator performance, VICI's rental income remains well-insulated from cyclical fluctuations in our tenants' financials. That is the value of our model. Long-term leases, 90% of which by rent roll, include corporate guarantees that serve as a powerful risk mitigant. Guaranteeing rent at the parent level adds cushion to VICI's overall lease coverage, allowing operators to pay rent from the total system, not just brick-and-mortar earnings, thus limiting the idiosyncratic risk of any one geography or asset. This structure has also supported VICI's track record of 100% rent collection in cash on time since inception. The lower-end consumer who is budget-conscious is the consumer who has declined recently, and the operators of the lower-tier properties are already making adjustments to attract that cohort. the lower-end consumer who is budget-conscious is the consumer who has declined recently and the operators of the lower-tier properties are already making adjustments to attract that cohort From VICI's perspective, our Las Vegas Strip real estate portfolio continues to be well-positioned. from vici's perspective our las vegas strip real estate portfolio continues to be well-positioned Importantly, although these near-term dynamics may impact operator performance, VICI's rental income remains well-insulated from cyclical fluctuations in our tenants' financials. importantly although these near-term dynamics may impact operator performance vici's rental income remains well-insulated from cyclical fluctuations in our tenants' financials That is the value of our model. that is the value of our model Long-term leases, 90% of which by rent roll, include corporate guarantees that serve as a powerful risk mitigant. long-term leases 90% of which by rent roll include corporate guarantees that serve as a powerful risk mitigant Guaranteeing rent at the parent level adds cushion to VICI's overall lease coverage, allowing operators to pay rent from the total system, not just brick-and-mortar earnings, thus limiting the idiosyncratic risk of any one geography or asset. guaranteeing rent at the parent level adds cushion to vici's overall lease coverage allowing operators to pay rent from the total system not just brick-and-mortar earnings thus limiting the idiosyncratic risk of any one geography or asset This structure has also supported VICI's track record of 100% rent collection in cash on time since inception. this structure has also supported vici's track record of 100% rent collection in cash on time since inception Even as Las Vegas experiences what we believe to be temporary moderation, we have conviction in both the staying power of the city as a global entertainment epicenter and in the creativity of our operating partners. A recent article from the Las Vegas Weekly discusses how operators are focusing on attracting new generations as millennials overtake Gen X in visitor volume share. The article highlights millennial and Gen Z tastes for experiences different than the traditional gambling enjoyed by their parents and grandparents, and experiential innovation is evident on the Las Vegas Strip, with the starting of day club concepts, elevated food and beverage experiences, increasing popularity of professional sports, and more. There are also long-term tailwinds for Las Vegas, including the planned construction of the Brightline West High-Speed Rail Line, the extension of the F1 contract through 2027, and the forthcoming addition of the A’s Stadium. Even as Las Vegas experiences what we believe to be temporary moderation, we have conviction in both the staying power of the city as a global entertainment epicenter and in the creativity of our operating partners. even as las vegas experiences what we believe to be temporary moderation we have conviction in both the staying power of the city as a global entertainment epicenter and in the creativity of our operating partners A recent article from the Las Vegas Weekly discusses how operators are focusing on attracting new generations as millennials overtake Gen X in visitor volume share. a recent article from the las vegas weekly discusses how operators are focusing on attracting new generations as millennials overtake gen x in visitor volume share The article highlights millennial and Gen Z tastes for experiences different than the traditional gambling enjoyed by their parents and grandparents, and experiential innovation is evident on the Las Vegas Strip, with the starting of day club concepts, elevated food and beverage experiences, increasing popularity of professional sports, and more. the article highlights millennial and gen z tastes for experiences different than the traditional gambling enjoyed by their parents and grandparents and experiential innovation is evident on the las vegas strip with the starting of day club concepts elevated food and beverage experiences increasing popularity of professional sports and more There are also long-term tailwinds for Las Vegas, including the planned construction of the Brightline West High-Speed Rail Line, the extension of the F1 contract through 2027, and the forthcoming addition of the A’s Stadium . there are also long-term tailwinds for las vegas including the planned construction of the brightline west high-speed rail line the extension of the f1 contract through 2027 and the forthcoming addition of the a’s stadium We feel very fortunate to be woven into the fabric of this iconic city and excited about the opportunity we believe continues to be offered in the years ahead. Now I will turn the call over to David, who will discuss our financial results and guidance. David. We feel very fortunate to be woven into the fabric of this iconic city and excited about the opportunity we believe continues to be offered in the years ahead. we feel very fortunate to be woven into the fabric of this iconic city and excited about the opportunity we believe continues to be offered in the years ahead Now I will turn the call over to David, who will discuss our financial results and guidance. now i will turn the call over to david who will discuss our financial results and guidance David. david

Speaker 13: Thanks, John. We greatly appreciate you all joining us today. Starting with the balance sheet and recent activity. In April, we closed our bond offering, where we issued $400 million of three-year notes at a coupon of 4.75%, and $900 million of 10-year notes at a coupon of 5.625%, for a blended coupon of 5.34%, including the impact of our hedging program. We now have no debt coming due until the second half of 2026, where we have September and December maturities, which we plan to address next year. Subsequent to quarter end, we settled approximately 9.7 million shares under our forward equity ATM program for $296 million of net proceeds, which were partially used to repay $175 million that was outstanding on our revolving credit facility and to fund the incremental One Beverly Hills investment. Thanks, John. thanks john We greatly appreciate you all joining us today. we greatly appreciate you all joining us today Starting with the balance sheet and recent activity. starting with the balance sheet and recent activity In April, we closed our bond offering, where we issued $400 million of three-year notes at a coupon of 4.75%, and $900 million of 10-year notes at a coupon of 5.625%, for a blended coupon of 5.34%, including the impact of our hedging program. in april we closed our bond offering where we issued $400 million of three-year notes at a coupon of 4.75% and $900 million of 10-year notes at a coupon of 5.625% for a blended coupon of 5.34% including the impact of our hedging program We now have no debt coming due until the second half of 2026, where we have September and December maturities, which we plan to address next year. we now have no debt coming due until the second half of 2026 where we have september and december maturities which we plan to address next year Subsequent to quarter end, we settled approximately 9.7 million shares under our forward equity ATM program for $296 million of net proceeds, which were partially used to repay $175 million that was outstanding on our revolving credit facility and to fund the incremental One Beverly Hills investment. subsequent to quarter end we settled approximately 9.7 million shares under our forward equity atm program for $296 million of net proceeds which were partially used to repay $175 million that was outstanding on our revolving credit facility and to fund the incremental one beverly hills investment Taking this activity into account, we have approximately $2.9 billion in total liquidity, comprised of $325.6 million of estimated proceeds now available under our outstanding forwards, $2.4 billion of availability under our revolving credit facility, and approximately $233 million in cash as of quarter end. Touching on leverage, when we account for the revolver repayment, our total debt is $17.1 billion, and our net debt to annualized second quarter adjusted EBITDA is approximately 5.1x, well within our target leverage range of 5x-5.5x. We have a weighted average interest rate of 4.47%, as adjusted to account for our hedge activity, and a weighted average of 6.5 years to maturity. Taking this activity into account, we have approximately $2.9 billion in total liquidity, comprised of $325.6 million of estimated proceeds now available under our outstanding forwards, $2.4 billion of availability under our revolving credit facility, and approximately $233 million in cash as of quarter end. taking this activity into account we have approximately $2.9 billion in total liquidity comprised of $325.6 million of estimated proceeds now available under our outstanding forwards $2.4 billion of availability under our revolving credit facility and approximately $233 million in cash as of quarter end Touching on leverage, when we account for the revolver repayment, our total debt is $17.1 billion, and our net debt to annualized second quarter adjusted EBITDA is approximately 5.1x , well within our target leverage range of 5x-5.5x . touching on leverage when we account for the revolver repayment our total debt is $17.1 billion and our net debt to annualized second quarter adjusted ebitda is approximately 5.1x well within our target leverage range of 5x-5.5x We have a weighted average interest rate of 4.47%, as adjusted to account for our hedge activity, and a weighted average of 6.5 years to maturity. we have a weighted average interest rate of 4.47% as adjusted to account for our hedge activity and a weighted average of 6.5 years to maturity Our constant focus on managing our cost of capital, balance sheet, and liquidity profile through volatile markets allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders. In turning the income statement, AFFO per share was $0.60 for the quarter, an increase of 4.9% compared to $0.57 for the quarter ended June 30, 2024. Our results once again highlight our highly efficient triple net model, given the increase in adjusted EBITDA as a proportion of the corresponding increase in revenue. Our margins continue to run strong in the high 90% range when eliminating non-cash items. Our G&A was $14.6 million for the quarter, and as Ed mentioned, as a percentage of total revenue, was only 1.5%, which continues to be one of the lowest ratios in not only the triple net sector, but across all REITs. Our constant focus on managing our cost of capital, balance sheet, and liquidity profile through volatile markets allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders. our constant focus on managing our cost of capital balance sheet and liquidity profile through volatile markets allows our team to remain opportunistic in an effort to continue pursuing our sustained and sustainable return goals for our shareholders In turning the income statement, AFFO per share was $0.60 for the quarter, an increase of 4.9% compared to $0.57 for the quarter ended June 30, 2024. in turning the income statement affo per share was $0.60 for the quarter an increase of 4.9% compared to $0.57 for the quarter ended june 30 2024 Our results once again highlight our highly efficient triple net model, given the increase in adjusted EBITDA as a proportion of the corresponding increase in revenue. our results once again highlight our highly efficient triple net model given the increase in adjusted ebitda as a proportion of the corresponding increase in revenue Our margins continue to run strong in the high 90% range when eliminating non-cash items. our margins continue to run strong in the high 90% range when eliminating non-cash items Our G&A was $14.6 million for the quarter, and as Ed mentioned, as a percentage of total revenue, was only 1.5%, which continues to be one of the lowest ratios in not only the triple net sector, but across all REITs. our g&a was $14.6 million for the quarter and as ed mentioned as a percentage of total revenue was only 1.5% which continues to be one of the lowest ratios in not only the triple net sector but across all reits Finally, moving to guidance. As we announced last night, we are raising our AFFO guidance for 2025 in both absolute dollars as well as on a per-share basis. AFFO for the year ending December 31, 2025, is now expected to be between $2.5 billion and $2.52 billion, or between $2.35 and $2.37 per diluted common share. Compared to our prior AFFO per share guidance of $2.33-$2.36, the raise represents an increase at both ends of the range by $0.02 on the bottom and $0.01 on the top end. Based on the midpoint of our raised 2025 guidance, VICI now expects to deliver year-over-year AFFO per share growth of 4.4%. Finally, moving to guidance. finally moving to guidance As we announced last night, we are raising our AFFO guidance for 2025 in both absolute dollars as well as on a per-share basis. as we announced last night we are raising our affo guidance for 2025 in both absolute dollars as well as on a per-share basis AFFO for the year ending December 31, 2025, is now expected to be between $2.5 billion and $2.52 billion, or between $2.35 and $2.37 per diluted common share. affo for the year ending december 31 2025 is now expected to be between $2.5 billion and $2.52 billion or between $2.35 and $2.37 per diluted common share Compared to our prior AFFO per share guidance of $2.33- $2.36, the raise represents an increase at both ends of the range by $0.02 on the bottom and $0.01 on the top end. compared to our prior affo per share guidance of $2.33- $2.36 the raise represents an increase at both ends of the range by $0.02 on the bottom and $0.01 on the top end Based on the midpoint of our raised 2025 guidance, VICI now expects to deliver year-over-year AFFO per share growth of 4.4%. based on the midpoint of our raised 2025 guidance vici now expects to deliver year-over-year affo per share growth of 4.4% Just as a reminder, our guidance does not include the impact on operating results from any transactions that have not closed, interest income from any loans that do not yet have final draw structures, possible future acquisitions or dispositions, capital markets activities, or other non-recurring transactions or items. With that, operator, please open the line for questions. Just as a reminder, our guidance does not include the impact on operating results from any transactions that have not closed, interest income from any loans that do not yet have final draw structures, possible future acquisitions or dispositions, capital markets activities, or other non-recurring transactions or items. just as a reminder our guidance does not include the impact on operating results from any transactions that have not closed interest income from any loans that do not yet have final draw structures possible future acquisitions or dispositions capital markets activities or other non-recurring transactions or items With that, operator, please open the line for questions. with that operator please open the line for questions

Speaker 3: Of course. We will now begin today's Q&A session. If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad now. When preparing to ask your question, please ensure you are unmuted locally, and questioners are asked to limit themselves to one question and one follow-up each. Our first question today comes from John Kilichowski from Wells Fargo. John, your line is open. Please go ahead. Of course. of course We will now begin today's Q&A session. we will now begin today's q&a session If you'd like to ask a question on today's call, please press star followed by one on your telephone keypad now. if you'd like to ask a question on today's call please press star followed by one on your telephone keypad now When preparing to ask your question, please ensure you are unmuted locally, and questioners are asked to limit themselves to one question and one follow-up each. when preparing to ask your question please ensure you are unmuted locally and questioners are asked to limit themselves to one question and one follow-up each Our first question today comes from John Kilichowski from Wells Fargo. our first question today comes from john kilichowski from wells fargo John, your line is open. john your line is open Please go ahead. please go ahead Hi, this is Cheryl on for John. Good morning, and thank you for taking my question. What drove the decision to increase your mezzanine loan investment on the One Beverly Hills by $150 million? Just curious to know your thoughts. Hi, this is Cheryl on for John. hi this is cheryl on for john Good morning, and thank you for taking my question. good morning and thank you for taking my question What drove the decision to increase your mezzanine loan investment on the One Beverly Hills by $150 million? what drove the decision to increase your mezzanine loan investment on the one beverly hills by $150 million Just curious to know your thoughts. just curious to know your thoughts

Speaker 13: Yeah, it's David. I can start. As we talked about with the original announcement, this was part of a bigger financing that Cain and Eldridge are undertaking to develop what is upwards of a $6 billion, $7 billion, $8 billion project in Beverly Hills. Our commitment to the project will likely increase over time as they work on implementing the construction financing to finish the project. Right now, this is a combination of a bank financing and an SBL financing that we are entering into. This has a maturity in March of 2026, and Cain and, again, Eldridge are working on a broader construction financing that is in process and will be able to take the project to completion in 2027. Yeah, it's David. yeah it's david I can start. i can start As we talked about with the original announcement, this was part of a bigger financing that Cain and Eldridge are undertaking to develop what is upwards of a $6 billion, $7 billion, $8 billion project in Beverly Hills. as we talked about with the original announcement this was part of a bigger financing that cain and eldridge are undertaking to develop what is upwards of a $6 billion $7 billion $8 billion project in beverly hills Our commitment to the project will likely increase over time as they work on implementing the construction financing to finish the project. our commitment to the project will likely increase over time as they work on implementing the construction financing to finish the project Right now, this is a combination of a bank financing and an SBL financing that we are entering into. right now this is a combination of a bank financing and an sbl financing that we are entering into This has a maturity in March of 2026, and Cain and, again, Eldridge are working on a broader construction financing that is in process and will be able to take the project to completion in 2027. this has a maturity in march of 2026 and cain and again eldridge are working on a broader construction financing that is in process and will be able to take the project to completion in 2027 Gotcha. Thank you. That's helpful. We've seen a handful of loan and mezzanine opportunities recently. Are you seeing or expecting any fee simple opportunities to come from these relationships? Gotcha. gotcha Thank you. thank you That's helpful. that's helpful We've seen a handful of loan and mezzanine opportunities recently. we've seen a handful of loan and mezzanine opportunities recently Are you seeing or expecting any fee simple opportunities to come from these relationships? are you seeing or expecting any fee simple opportunities to come from these relationships

Speaker 2: Yeah, in certain cases, yes. It will take time for, obviously, those to realize themselves. Certainly, in the case of Cain and Industries, as an example, given the breadth and depth of their investments across the experiential spectrum, we would very much anticipate participating with them in our acquisition of fee simple real estate. That was obviously at the heart of what Todd Boehly and Jonathan Goldstein said in the release we put out back in, was that February, about our forming a strategic alliance with Cain and Eldridge around that very topic. Yeah, in certain cases, yes. yeah in certain cases yes It will take time for, obviously, those to realize themselves. it will take time for obviously those to realize themselves Certainly, in the case of Cain and Industries, as an example, given the breadth and depth of their investments across the experiential spectrum, we would very much anticipate participating with them in our acquisition of fee simple real estate. certainly in the case of cain and industries as an example given the breadth and depth of their investments across the experiential spectrum we would very much anticipate participating with them in our acquisition of fee simple real estate That was obviously at the heart of what Todd Boehly and Jonathan Goldstein said in the release we put out back in, was that February, about our forming a strategic alliance with Cain and Eldridge around that very topic. that was obviously at the heart of what todd boehly and jonathan goldstein said in the release we put out back in was that february about our forming a strategic alliance with cain and eldridge around that very topic Got it. Thank you. That's helpful. Got it. got it Thank you. thank you That's helpful. that's helpful

Speaker 3: The next question comes from Barry Jonas from Truist. Barry, your line is open. Please go ahead. The next question comes from Barry Jonas from Truist. the next question comes from barry jonas from truist Barry, your line is open. barry your line is open Please go ahead. please go ahead

Speaker 5: Hey, guys. Good morning. Maybe broadly speaking, how have deal discussions been as of late for either sale leaseback or other loans? Any major differences in the last 90 days, either gaming, non-gaming, existing tenants, or potential new tenants? Just curious at a high level how trends have been. Hey, guys. hey guys Good morning. good morning Maybe broadly speaking, how have deal discussions been as of late for either sale leaseback or other loans? maybe broadly speaking how have deal discussions been as of late for either sale leaseback or other loans Any major differences in the last 90 days, either gaming, non-gaming, existing tenants, or potential new tenants? any major differences in the last 90 days either gaming non-gaming existing tenants or potential new tenants Just curious at a high level how trends have been. just curious at a high level how trends have been

Speaker 7: Yeah, Barry, nice to hear from you. No big difference between quarter to quarter. Obviously, we started the company eight years ago as a gaming REIT, and we're looking at that point only at gaming. Obviously, over the past six, seven years, we've continued to diversify to look at other sectors. As you continue to expand the funnel, there's obviously more and more conversations that we have. As Ed just finished talking about, we've also used our credit book to build relationships, new relationships that at the time may not have wanted to sell their real estate. Barry, the answer to your question is we're quite busy. We have a lot of different sectors that we're looking at, and there have not been any changes at all in the past 90 days. Yeah, Barry, nice to hear from you. yeah barry nice to hear from you No big difference between quarter to quarter. no big difference between quarter to quarter Obviously, we started the company eight years ago as a gaming REIT, and we're looking at that point only at gaming. obviously we started the company eight years ago as a gaming reit and we're looking at that point only at gaming Obviously, over the past six, seven years, we've continued to diversify to look at other sectors. obviously over the past six seven years we've continued to diversify to look at other sectors As you continue to expand the funnel, there's obviously more and more conversations that we have. as you continue to expand the funnel there's obviously more and more conversations that we have As Ed just finished talking about, we've also used our credit book to build relationships, new relationships that at the time may not have wanted to sell their real estate. as ed just finished talking about we've also used our credit book to build relationships new relationships that at the time may not have wanted to sell their real estate Barry, the answer to your question is we're quite busy. barry the answer to your question is we're quite busy We have a lot of different sectors that we're looking at, and there have not been any changes at all in the past 90 days. we have a lot of different sectors that we're looking at and there have not been any changes at all in the past 90 days

Speaker 5: Got it. That's helpful. Your closest competitor has taken a stand perhaps a bit against iGaming proliferation. Not sure if you've recently addressed your views on a public call. Just curious to hear what they may be at this time. Got it. got it That's helpful. that's helpful Your closest competitor has taken a stand perhaps a bit against iGaming proliferation. your closest competitor has taken a stand perhaps a bit against igaming proliferation Not sure if you've recently addressed your views on a public call. not sure if you've recently addressed your views on a public call Just curious to hear what they may be at this time. just curious to hear what they may be at this time

Speaker 2: Go ahead, John. Go ahead, John. go ahead john

Speaker 6: No, I think you're probably talking about our closest competitor. I assume your GLPI has taken a stance on iGaming. Obviously, it's something that we continue to monitor. It is important to many of our tenants to their overall credit. As I talked in my opening remarks, we look at our tenants across not only the bricks and mortar, but also their iGaming portfolio. It's something that we will continue to monitor. Obviously, we're aware of what's going on around the United States at this point. No, I think you're probably talking about our closest competitor. no i think you're probably talking about our closest competitor I assume your GLPI has taken a stance on iGaming. i assume your glpi has taken a stance on igaming Obviously, it's something that we continue to monitor. obviously it's something that we continue to monitor It is important to many of our tenants to their overall credit. it is important to many of our tenants to their overall credit As I talked in my opening remarks, we look at our tenants across not only the bricks and mortar, but also their iGaming portfolio. as i talked in my opening remarks we look at our tenants across not only the bricks and mortar but also their igaming portfolio It's something that we will continue to monitor. it's something that we will continue to monitor Obviously, we're aware of what's going on around the United States at this point. obviously we're aware of what's going on around the united states at this point

Speaker 2: You know, Barry, I'll just add, I live in a state, Rhode Island, where the motto is the lively experiment. I would say that American gaming is engaged right now in a lively experiment on how the sector will continue to evolve, both brick and mortar and digital. In the case of digital, both online sports betting and iGaming. You know, Barry, I'll just add, I live in a state, Rhode Island, where the motto is the lively experiment. you know barry i'll just add i live in a state rhode island where the motto is the lively experiment I would say that American gaming is engaged right now in a lively experiment on how the sector will continue to evolve, both brick and mortar and digital. i would say that american gaming is engaged right now in a lively experiment on how the sector will continue to evolve both brick and mortar and digital In the case of digital, both online sports betting and iGaming. in the case of digital both online sports betting and igaming I think regulators, state legislatures, and regulators have a lot of decisions to make on how they will manage the interactivity of those various categories of gaming in a way that does the best things for their economy and their state treasuries, but also for job growth and sustainment. Clearly, brick and mortar casinos employ a lot more people within a given jurisdiction than either iGaming or online sports betting do. I think regulators, state legislatures, and regulators have a lot of decisions to make on how they will manage the interactivity of those various categories of gaming in a way that does the best things for their economy and their state treasuries, but also for job growth and sustainment. i think regulators state legislatures and regulators have a lot of decisions to make on how they will manage the interactivity of those various categories of gaming in a way that does the best things for their economy and their state treasuries but also for job growth and sustainment Clearly, brick and mortar casinos employ a lot more people within a given jurisdiction than either iGaming or online sports betting do. clearly brick and mortar casinos employ a lot more people within a given jurisdiction than either igaming or online sports betting do

Speaker 5: Perfect. Thank you so much, guys. Perfect. perfect Thank you so much, guys. thank you so much guys

Speaker 3: The next question comes from Anthony Paolone from JPMorgan. Anthony, please go ahead. The next question comes from Anthony Paolone from JP Morgan. the next question comes from anthony paolone from jp morgan Anthony, please go ahead. anthony please go ahead

Speaker 4: Thanks. Good morning. My first question relates to making debt investments versus straight property investments. I know there's some sensitivity around the debt book because of the shorter duration. If you wanted to bring it up to, say, 10% of the balance sheet or something, do you think there are good opportunities out there that you're seeing that you're just being sensitive to because of the size of the book? Do you feel like you're doing what you want to do there? I'm just wondering about the broader opportunity set there. Thanks. thanks Good morning. good morning My first question relates to making debt investments versus straight property investments. my first question relates to making debt investments versus straight property investments I know there's some sensitivity around the debt book because of the shorter duration. i know there's some sensitivity around the debt book because of the shorter duration If you wanted to bring it up to, say, 10% of the balance sheet or something, do you think there are good opportunities out there that you're seeing that you're just being sensitive to because of the size of the book? if you wanted to bring it up to say 10% of the balance sheet or something do you think there are good opportunities out there that you're seeing that you're just being sensitive to because of the size of the book Do you feel like you're doing what you want to do there? I'm just wondering about the broader opportunity set there. do you feel like you're doing what you want to do there? i'm just wondering about the broader opportunity set there

Speaker 2: We would really be very focused. We are very focused, I should say, Tony, on the cadence of capital as it goes out the door, and obviously very much the cadence of capital as it comes back in the door, and making sure that we are ready for not only, again, the allocation of capital out, but the return of capital to us and how we will manage earnings flow. We are in a time right now where I think, Tony, given your coverage of real estate broadly and deeply, we are in a time right now when credit is definitely getting a lot of attention. There does appear to generally be, not just for VICI, but generally appear to be more credit opportunity than real estate transaction opportunity. That is not solely specific to VICI. We would really be very focused. we would really be very focused We are very focused, I should say, Tony, on the cadence of capital as it goes out the door, and obviously very much the cadence of capital as it comes back in the door, and making sure that we are ready for not only, again, the allocation of capital out, but the return of capital to us and how we will manage earnings flow. We are in a time right now where I think, Tony, given your coverage of real estate broadly and deeply, we are in a time right now when credit is definitely getting a lot of attention. we are very focused i should say, tony on the cadence of capital as it goes out the door and obviously very much the cadence of capital as it comes back in the door and making sure that we are ready for not only again the allocation of capital out but the return of capital to us and how we will manage earnings flow. we are in a time right now where i think tony given your coverage of real estate broadly and deeply we are in a time right now when credit is definitely getting a lot of attention There does appear to generally be, not just for VICI, but generally appear to be more credit opportunity than real estate transaction opportunity. there does appear to generally be not just for vici but generally appear to be more credit opportunity than real estate transaction opportunity That is not solely specific to VICI. that is not solely specific to vici

Speaker 4: Okay. Thanks. My second question is on the income statement in the quarter. I think you had about $7 million of transaction costs. It just seemed a bit high for a quarter that was fairly quiet. I was wondering if you can just elaborate on what drove that. Okay. okay Thanks. thanks My second question is on the income statement in the quarter. my second question is on the income statement in the quarter I think you had about $7 million of transaction costs. i think you had about $7 million of transaction costs It just seemed a bit high for a quarter that was fairly quiet. it just seemed a bit high for a quarter that was fairly quiet I was wondering if you can just elaborate on what drove that. i was wondering if you can just elaborate on what drove that

Speaker 13: We're constantly active in looking at opportunities, evaluating opportunities. Sometimes things get to the goal line, and sometimes things don't. We wrote off some costs that were pursuit costs from prior quarters that are no longer pursuit costs. We're constantly active in looking at opportunities, evaluating opportunities. we're constantly active in looking at opportunities evaluating opportunities Sometimes things get to the goal line, and sometimes things don't. sometimes things get to the goal line and sometimes things don't We wrote off some costs that were pursuit costs from prior quarters that are no longer pursuit costs. we wrote off some costs that were pursuit costs from prior quarters that are no longer pursuit costs

Speaker 6: Okay, thank you. Okay, thank you. okay thank you

Speaker 3: The next question is from John DeCree from CBRE. John, please go ahead. The next question is from John DeCree from CBRE. the next question is from john decree from cbre John, please go ahead. john please go ahead

Speaker 18: Hi, everyone. Good morning. Thank you for taking my questions. John, in your prepared remarks, you talked a little bit about your views on Las Vegas and some of the thoughts about the summer and then the long-term. Exciting stuff happening there. We agree. Curious, given your experience, the regional gaming markets have seen a nice uptick lately, and we're hearing that as well. I'm wondering if you could provide any kind of industry insights on how you're feeling about that market. I think it certainly highlights the value of the diversified portfolio of your tenants and your business. Curious if you think that's some real life that we're seeing in the regional markets and how you're feeling about that industry overall. Hi, everyone. hi everyone Good morning. good morning Thank you for taking my questions. thank you for taking my questions John, in your prepared remarks, you talked a little bit about your views on Las Vegas and some of the thoughts about the summer and then the long-term. john in your prepared remarks you talked a little bit about your views on las vegas and some of the thoughts about the summer and then the long-term Exciting stuff happening there. exciting stuff happening there We agree. we agree Curious, given your experience, the regional gaming markets have seen a nice uptick lately, and we're hearing that as well. curious given your experience the regional gaming markets have seen a nice uptick lately and we're hearing that as well I'm wondering if you could provide any kind of industry insights on how you're feeling about that market. i'm wondering if you could provide any kind of industry insights on how you're feeling about that market I think it certainly highlights the value of the diversified portfolio of your tenants and your business. i think it certainly highlights the value of the diversified portfolio of your tenants and your business Curious if you think that's some real life that we're seeing in the regional markets and how you're feeling about that industry overall. curious if you think that's some real life that we're seeing in the regional markets and how you're feeling about that industry overall

Speaker 6: Yeah. John, good to talk to you. We continue to be very excited about the industry as a whole. As you know, we love to break it up as there's Las Vegas and everyone else. We break the region. As you know, there's so many different regions. That's the beauty of our portfolio, right, that we've got all these different regional markets. There's different reasons why we are seeing upticks in revenues and EBITDA out of the regional market. Overall, our statement is we still really like the gaming business. We obviously are heavily invested and have a diversified portfolio in both areas. We think we can grow in both areas. Excited to see the operators continue to be creative to drive revenues in the regional markets. Like I said in my opening remarks, this is just a temporary issue in Las Vegas. Yeah. yeah John, good to talk to you. john good to talk to you We continue to be very excited about the industry as a whole. we continue to be very excited about the industry as a whole As you know, we love to break it up as there's Las Vegas and everyone else. as you know we love to break it up as there's las vegas and everyone else We break the region. we break the region As you know, there's so many different regions. as you know there's so many different regions That's the beauty of our portfolio, right, that we've got all these different regional markets. that's the beauty of our portfolio right that we've got all these different regional markets There's different reasons why we are seeing upticks in revenues and EBITDA out of the regional market. there's different reasons why we are seeing upticks in revenues and ebitda out of the regional market Overall, our statement is we still really like the gaming business. overall our statement is we still really like the gaming business We obviously are heavily invested and have a diversified portfolio in both areas. we obviously are heavily invested and have a diversified portfolio in both areas We think we can grow in both areas. we think we can grow in both areas Excited to see the operators continue to be creative to drive revenues in the regional markets. excited to see the operators continue to be creative to drive revenues in the regional markets Like I said in my opening remarks, this is just a temporary issue in Las Vegas. like i said in my opening remarks this is just a temporary issue in las vegas When you look at the forward booking for group business in quarter four and the first two quarters of 2026, business is going to be strong. It's just a credit to the operators that in regional gaming they have had some years where they're a little bit down, but they're being more creative and adding assets. A lot of capital deployment has been put in our assets in the regional markets. It's exciting to see that those operators are getting some results. When you look at the forward booking for group business in quarter four and the first two quarters of 2026, business is going to be strong. when you look at the forward booking for group business in quarter four and the first two quarters of 2026 business is going to be strong It's just a credit to the operators that in regional gaming they have had some years where they're a little bit down, but they're being more creative and adding assets. it's just a credit to the operators that in regional gaming they have had some years where they're a little bit down but they're being more creative and adding assets A lot of capital deployment has been put in our assets in the regional markets. a lot of capital deployment has been put in our assets in the regional markets It's exciting to see that those operators are getting some results. it's exciting to see that those operators are getting some results

Speaker 18: Thanks, John. Maybe to switch gears, John or Ed, this one might be for you. The amount of volume and capital that your tenants are investing in your assets is kind of unique to the gaming industry and to your business. We've heard that this week, whether it's New Orleans or MGM Grand. Obviously, Venetian has been a big one. It seems like that kind of gets overlooked a lot in the value of your stock price. I know The Venetian Resort Las Vegas is a good growth opportunity for you. You think about ways to highlight that value or crystallize it. I mean, are there opportunities to do more buying investments from your tenants that are committing significant capital like that? Just curious your thoughts on that opportunity. Thanks, John. thanks john Maybe to switch gears, John or Ed, this one might be for you. maybe to switch gears john or ed this one might be for you The amount of volume and capital that your tenants are investing in your assets is kind of unique to the gaming industry and to your business. the amount of volume and capital that your tenants are investing in your assets is kind of unique to the gaming industry and to your business We've heard that this week, whether it's New Orleans or MGM Grand. we've heard that this week whether it's new orleans or mgm grand Obviously, Venetian has been a big one. obviously venetian has been a big one It seems like that kind of gets overlooked a lot in the value of your stock price. it seems like that kind of gets overlooked a lot in the value of your stock price I know The Venetian Resort Las Vegas is a good growth opportunity for you. i know the venetian resort las vegas is a good growth opportunity for you You think about ways to highlight that value or crystallize it. you think about ways to highlight that value or crystallize it I mean, are there opportunities to do more buying investments from your tenants that are committing significant capital like that? i mean are there opportunities to do more buying investments from your tenants that are committing significant capital like that Just curious your thoughts on that opportunity. just curious your thoughts on that opportunity

Speaker 2: Yeah. I'll start, John. Before I do, I just want to apologize to those listening that our responses are, in some cases, evidently cutting in and out. We apologize for that. I believe we are in the process of fixing that or have fixed that. It's a very good question, John. From what we've been able to determine, I have to qualify this. I'm sitting next to our GC, who always wants to make sure I qualify everything I say. We cannot identify another commercial real estate category where tenants invest more into the building than ours do, with possibly the exception of data centers, where obviously the tenant invests a lot into the asset. It is obviously a different kind of investment. We are very happy when our partners invest in our buildings and thereby de facto increase the value of our buildings. Yeah. yeah I'll start, John. i'll start john Before I do, I just want to apologize to those listening that our responses are, in some cases, evidently cutting in and out. before i do i just want to apologize to those listening that our responses are in some cases evidently cutting in and out We apologize for that. we apologize for that I believe we are in the process of fixing that or have fixed that. i believe we are in the process of fixing that or have fixed that It's a very good question, John. it's a very good question john From what we've been able to determine, I have to qualify this. from what we've been able to determine i have to qualify this I'm sitting next to our G C, who always wants to make sure I qualify everything I say. i'm sitting next to our g c who always wants to make sure i qualify everything i say We cannot identify another commercial real estate category where tenants invest more into the building than ours do, with possibly the exception of data centers, where obviously the tenant invests a lot into the asset. we cannot identify another commercial real estate category where tenants invest more into the building than ours do with possibly the exception of data centers where obviously the tenant invests a lot into the asset It is obviously a different kind of investment. it is obviously a different kind of investment We are very happy when our partners invest in our buildings and thereby de facto increase the value of our buildings. we are very happy when our partners invest in our buildings and thereby de facto increase the value of our buildings If there is the opportunity for us to contribute capital, we're obviously very excited and honored to do that in partnership with them. There is simply no question that the capital invested in our buildings, which, John, now runs into the billions, doesn't it? If there is the opportunity for us to contribute capital, we're obviously very excited and honored to do that in partnership with them. if there is the opportunity for us to contribute capital we're obviously very excited and honored to do that in partnership with them There is simply no question that the capital invested in our buildings, which, John, now runs into the billions, doesn't it? there is simply no question that the capital invested in our buildings which john now runs into the billions doesn't it

Speaker 6: Yeah. Yeah. yeah

Speaker 2: Yeah, it's unlike any category we've been able to identify outside of data centers. Yeah, it's unlike any category we've been able to identify outside of data centers. yeah it's unlike any category we've been able to identify outside of data centers

Speaker 6: I do, John, think longer term. Over the years, we'll have opportunities to continue to use our capital to help accelerate the growth of our tenants' business, particularly in the large boxes that we see in Las Vegas. It's why it's a market that's just so unique. There's nothing like it where one of our boxes, Venetian, is what, 17, 18 million sq ft. We hope that continues to be a pillar of growth for our company in years to come. I do, John, think longer term. i do john think longer term Over the years, we'll have opportunities to continue to use our capital to help accelerate the growth of our tenants' business, particularly in the large boxes that we see in Las Vegas. over the years we'll have opportunities to continue to use our capital to help accelerate the growth of our tenants' business particularly in the large boxes that we see in las vegas It's why it's a market that's just so unique. it's why it's a market that's just so unique There's nothing like it where one of our boxes, Venetian , is what, 17, 18 million sq ft. there's nothing like it where one of our boxes venetian is what 17 18 million sq ft We hope that continues to be a pillar of growth for our company in years to come. we hope that continues to be a pillar of growth for our company in years to come

Speaker 18: Thanks, John. Thanks, Ed. Appreciate your insights, as always. Thanks, John. thanks john Thanks, Ed. thanks ed Appreciate your insights, as always. appreciate your insights as always

Speaker 2: Thank you. Thank you. thank you

Speaker 3: The next question is from David Katz from Jefferies. David, please go ahead. The next question is from David Katz from Jefferies. the next question is from david katz from jefferies David, please go ahead. david please go ahead

Speaker 12: Morning, and thanks for taking my question. I do want to follow that up. It's a similar but a different angle. Some of your tenants and partners have begun talking to us about the effects of the new tax regulations. If I'm getting the drift properly, and I'll ask for your confirmation of that, it appears to induce them to invest in the properties, either expand, renovate, add amenities, et cetera. It also appears to induce them to continue doing that ongoing, to continue to capture the bonus depreciation and therefore the tax benefit. Have you looked at it? Am I reading that correctly? Given that I think this is part of the investment case that you've been making, have you begun to talk to your tenants about it? What kinds of conversations are you having? Thanks. Morning, and thanks for taking my question. morning and thanks for taking my question I do want to follow that up. i do want to follow that up It's a similar but a different angle. it's a similar but a different angle Some of your tenants and partners have begun talking to us about the effects of the new tax regulations. some of your tenants and partners have begun talking to us about the effects of the new tax regulations If I'm getting the drift properly, and I'll ask for your confirmation of that, it appears to induce them to invest in the properties, either expand, renovate, add amenities, et cetera. if i'm getting the drift properly and i'll ask for your confirmation of that it appears to induce them to invest in the properties either expand renovate add amenities et cetera It also appears to induce them to continue doing that ongoing, to continue to capture the bonus depreciation and therefore the tax benefit. it also appears to induce them to continue doing that ongoing to continue to capture the bonus depreciation and therefore the tax benefit Have you looked at it? have you looked at it Am I reading that correctly? am i reading that correctly Given that I think this is part of the investment case that you've been making, have you begun to talk to your tenants about it? given that i think this is part of the investment case that you've been making have you begun to talk to your tenants about it What kinds of conversations are you having? what kinds of conversations are you having Thanks. thanks

Speaker 2: Yeah. Yeah. David, you're absolutely right. There were a number of elements of the new tax bill that are beneficial. Obviously, we're very glad of the fact that the REIT dividend deduction was maintained, along with a number of other features that are beneficial to REITs. In the case you're talking about, the bonus depreciation, yes, it is a very powerful and positive factor for our operating partners when it comes to investing in their buildings. I would point out, David, and I know you cover hotels as well, bonus depreciation is a great thing, but you still need the capital in order to make the funding. What the gaming business does is create economic headroom that allows for that incremental capital investment. Yeah. yeah Yeah. yeah David, you're absolutely right. david you're absolutely right There were a number of elements of the new tax bill that are beneficial. there were a number of elements of the new tax bill that are beneficial Obviously, we're very glad of the fact that the REIT dividend deduction was maintained, along with a number of other features that are beneficial to REITs. obviously we're very glad of the fact that the reit dividend deduction was maintained along with a number of other features that are beneficial to reits In the case you're talking about, the bonus depreciation, yes, it is a very powerful and positive factor for our operating partners when it comes to investing in their buildings. in the case you're talking about the bonus depreciation yes it is a very powerful and positive factor for our operating partners when it comes to investing in their buildings I would point out, David, and I know you cover hotels as well, bonus depreciation is a great thing, but you still need the capital in order to make the funding. i would point out david and i know you cover hotels as well bonus depreciation is a great thing but you still need the capital in order to make the funding What the gaming business does is create economic headroom that allows for that incremental capital investment. what the gaming business does is create economic headroom that allows for that incremental capital investment One of the things that I think will not only sustain, but continue to increase the competitiveness of Las Vegas over the coming years and even decades is the ability to continually reinvest, especially on the group side. I think the U.S. convention center and convention hotel landscape is one that has seen significant underinvestment in the last 10, 15, 20 years, going back to even the GFC. The fact that Vegas can continually invest in the main convention center, Mandalay Bay, Venetian, MGM Grand, all of the big boxes is a real competitive advantage for Las Vegas. Now, we introduced our Property Partner Growth Fund a few years ago. Obviously, our Venetian investment is probably the hallmark example of us putting our capital into our buildings incrementally. One of the things that I think will not only sustain, but continue to increase the competitiveness of Las Vegas over the coming years and even decades is the ability to continually reinvest, especially on the group side. one of the things that i think will not only sustain but continue to increase the competitiveness of las vegas over the coming years and even decades is the ability to continually reinvest especially on the group side I think the U.S. convention center and convention hotel landscape is one that has seen significant underinvestment in the last 10, 15, 20 years, going back to even the GFC. i think the u.s convention center and convention hotel landscape is one that has seen significant underinvestment in the last 10 15 20 years going back to even the gfc The fact that Vegas can continually invest in the main convention center, Mandalay Bay, Venetian , MGM Grand, all of the big boxes is a real competitive advantage for Las Vegas. the fact that vegas can continually invest in the main convention center mandalay bay venetian mgm grand all of the big boxes is a real competitive advantage for las vegas Now, we introduced our Property Partner Growth Fund a few years ago. now we introduced our property partner growth fund a few years ago Obviously, our Venetian investment is probably the hallmark example of us putting our capital into our buildings incrementally. obviously our venetian investment is probably the hallmark example of us putting our capital into our buildings incrementally We will continue to make sure our tenants understand that our capital can be the cheapest source of capital they could find to continue to improve their buildings. We will continue to make sure our tenants understand that our capital can be the cheapest source of capital they could find to continue to improve their buildings. we will continue to make sure our tenants understand that our capital can be the cheapest source of capital they could find to continue to improve their buildings

Speaker 12: If I can just follow that up, I'm curious about the comment of convention facilities you feel are being underinvested. Could you elaborate on that, and why do you think that to be the case? If I can just follow that up, I'm curious about the comment of convention facilities you feel are being underinvested. if i can just follow that up i'm curious about the comment of convention facilities you feel are being underinvested Could you elaborate on that, and why do you think that to be the case? could you elaborate on that and why do you think that to be the case

Speaker 2: I think, David, going back to as far back as the GFC, you've seen especially the urban hotel landscape be one that has generally not been invested in, whether it be by the hotel REITs or other owners of big box convention hotels. It doesn't give me any pleasure to say this, but there's a lot of tired, full-service, convention-serving hotel product across major American cities. That combined with the fact that most of the big convention centers in the big cities have not seen anywhere near the kind of investment that Las Vegas has seen, whether, again, at the main convention center or, as an example, at Mandalay Bay, where MGM put $100 million into the Mandalay Bay meeting facilities, the 2.2 or whatever million sq ft it is. Was it last year, John? I think, David, going back to as far back as the GFC, you've seen especially the urban hotel landscape be one that has generally not been invested in, whether it be by the hotel REITs or other owners of big box convention hotels. i think david going back to as far back as the gfc you've seen especially the urban hotel landscape be one that has generally not been invested in whether it be by the hotel reits or other owners of big box convention hotels It doesn't give me any pleasure to say this, but there's a lot of tired, full-service, convention-serving hotel product across major American cities. it doesn't give me any pleasure to say this but there's a lot of tired full-service convention-serving hotel product across major american cities That combined with the fact that most of the big convention centers in the big cities have not seen anywhere near the kind of investment that Las Vegas has seen, whether, again, at the main convention center or, as an example, at Mandalay Bay, where MGM put $100 million into the Mandalay Bay meeting facilities, the 2.2 or whatever million sq ft it is. that combined with the fact that most of the big convention centers in the big cities have not seen anywhere near the kind of investment that las vegas has seen whether again at the main convention center or as an example at mandalay bay where mgm put $100 million into the mandalay bay meeting facilities the 2.2 or whatever million sq ft it is Was it last year, John? was it last year john

Speaker 6: Yeah. A couple of years ago. David, the other thing that happened was during COVID, many cities cut their sales teams of selling conventions. Las Vegas did not do that. There's been an uptick of visitation of groups to Las Vegas that visit brand new facilities with brand new technology when they used to have their meetings in other cities with kind of rundown facilities. That has really helped accelerate the growth of the group business in Las Vegas, which we're excited about because we own a lot of facilities with great meeting and convention space. Yeah. yeah A couple of years ago. a couple of years ago David, the other thing that happened was during COVID, many cities cut their sales teams of selling conventions. david the other thing that happened was during covid many cities cut their sales teams of selling conventions Las Vegas did not do that. las vegas did not do that There's been an uptick of visitation of groups to Las Vegas that visit brand new facilities with brand new technology when they used to have their meetings in other cities with kind of rundown facilities. there's been an uptick of visitation of groups to las vegas that visit brand new facilities with brand new technology when they used to have their meetings in other cities with kind of rundown facilities That has really helped accelerate the growth of the group business in Las Vegas, which we're excited about because we own a lot of facilities with great meeting and convention space. that has really helped accelerate the growth of the group business in las vegas which we're excited about because we own a lot of facilities with great meeting and convention space

Speaker 12: Thanks very much. Appreciate it. Thanks very much. thanks very much Appreciate it. appreciate it

Speaker 2: Thank you, David. Thank you, David. thank you david

Speaker 3: The next question comes from Smedes Rose from Citi. You'll understand, please go ahead. The next question comes from Smedes Rose from Citi. the next question comes from smedes rose from citi You'll understand, please go ahead. you'll understand please go ahead

Speaker 15: Hi. Thanks. This is probably just a reminder, but as New York inches closer to issuing gaming licenses, I think specifically by the end of the year, if MGM were to get one at the Yonkers facility, are they obligated to use you as a source of financing for their expansion there, or would they just have the option to do that? Hi. hi Thanks. thanks This is probably just a reminder, but as New York inches closer to issuing gaming licenses, I think specifically by the end of the year, if MGM were to get one at the Yonkers facility, are they obligated to use you as a source of financing for their expansion there, or would they just have the option to do that? this is probably just a reminder but as new york inches closer to issuing gaming licenses i think specifically by the end of the year if mgm were to get one at the yonkers facility are they obligated to use you as a source of financing for their expansion there or would they just have the option to do that

Speaker 6: It's the latter. They have the option to use our capital, and we're monitoring the situation. I don't think anyone knows at this time where the three licenses are going to go. To answer your question, they have the option to use our financing. It's the latter. it's the latter They have the option to use our capital, and we're monitoring the situation. they have the option to use our capital and we're monitoring the situation I don't think anyone knows at this time where the three licenses are going to go. i don't think anyone knows at this time where the three licenses are going to go To answer your question, they have the option to use our financing. to answer your question they have the option to use our financing

Speaker 15: Okay. Presumably, there will be a third license issued. Would you guys be able to participate in that if you wanted to, or is there some sort of restriction on only working with MGM in New York? Okay. okay Presumably, there will be a third license issued. presumably there will be a third license issued Would you guys be able to participate in that if you wanted to, or is there some sort of restriction on only working with MGM in New York? would you guys be able to participate in that if you wanted to or is there some sort of restriction on only working with mgm in new york

Speaker 6: There's no restriction. There's no restriction. there's no restriction

Speaker 15: Market. Market. market

Speaker 6: There's no restriction in the New York license. Sorry, I might have been cut off. There's no restriction at all for us. There's no restriction in the New York license. there's no restriction in the new york license Sorry, I might have been cut off. sorry i might have been cut off There's no restriction at all for us. there's no restriction at all for us

Speaker 15: Okay, thank you. Okay, thank you. okay thank you

Speaker 2: Thank you. Thank you. thank you

Speaker 6: Thank you, Smedes. Thank you, Smedes. thank you smedes

Speaker 3: The next question comes from Daniel Guglielmo from Capital One. Daniel, your line is open. The next question comes from Daniel Guglielmo from Capital One. the next question comes from daniel guglielmo from capital one Daniel, your line is open. daniel your line is open

Speaker 8: Hi, everyone. Thank you for taking my questions. You all have the eight Canadian properties, and we've heard about decline in visitation to Las Vegas from Canada. When you talk with those Canadian operators, are they seeing benefit from less of that outbound traffic to the U.S. this year? Hi, everyone. hi everyone Thank you for taking my questions. thank you for taking my questions You all have the eight Canadian properties, and we've heard about decline in visitation to Las Vegas from Canada. you all have the eight canadian properties and we've heard about decline in visitation to las vegas from canada When you talk with those Canadian operators, are they seeing benefit from less of that outbound traffic to the U.S. this year? when you talk with those canadian operators are they seeing benefit from less of that outbound traffic to the u.s this year

Speaker 6: That's a great question, Dan. We have been very pleased with the performance of the assets in Canada. I think it's still a little bit too early to say exactly why they're seeing an uptick, but I think you're on to something that more Canadians are staying at home, visiting the local assets there, and the performance out of those assets has been quite good this year. That's a great question, Dan. that's a great question dan We have been very pleased with the performance of the assets in Canada. we have been very pleased with the performance of the assets in canada I think it's still a little bit too early to say exactly why they're seeing an uptick, but I think you're on to something that more Canadians are staying at home, visiting the local assets there, and the performance out of those assets has been quite good this year. i think it's still a little bit too early to say exactly why they're seeing an uptick but i think you're on to something that more canadians are staying at home visiting the local assets there and the performance out of those assets has been quite good this year

Speaker 8: I appreciate that, Tom. Thank you. As a follow-up to an earlier question, some of the loan investment maturities are coming up, and the principal balances will get paid down. Do you have that potential capital inflow kind of earmarked for certain investments or projects? If the investment environment isn't right at that time to deploy, what would you expect to do with that excess capital? I appreciate that, Tom. i appreciate that tom Thank you. thank you As a follow-up to an earlier question, some of the loan investment maturities are coming up, and the principal balances will get paid down. as a follow-up to an earlier question some of the loan investment maturities are coming up and the principal balances will get paid down Do you have that potential capital inflow kind of earmarked for certain investments or projects? do you have that potential capital inflow kind of earmarked for certain investments or projects If the investment environment isn't right at that time to deploy, what would you expect to do with that excess capital? if the investment environment isn't right at that time to deploy what would you expect to do with that excess capital

Speaker 3: Because we're having some difficulties with the speaker feed, please stand by while we reconnect them. Confirming we're now rejoined by the speaker team. Please continue when you're ready. Because we're having some difficulties with the speaker feed, please stand by while we reconnect them. because we're having some difficulties with the speaker feed please stand by while we reconnect them Confirming we're now rejoined by the speaker team. confirming we're now rejoined by the speaker team Please continue when you're ready. please continue when you're ready

Speaker 2: Yeah. Our apologies, folks. Gabe had just begun to answer the question that Dan had asked about the use of regained proceeds. Gabe? Yeah. yeah Our apologies, folks. our apologies folks Gabe had just begun to answer the question that Dan had asked about the use of regained proceeds. gabe had just begun to answer the question that dan had asked about the use of regained proceeds Gabe? gabe

Speaker 9: Yeah. Apologies, I repeat myself. Not sure when we got cut out. We're actively working with all of our partners to understand when loans may be repaid and then working internally on evaluating alternative investment options when that capital comes back, or alternatively talking with them about refinancing options. I think the Great Wolf Perryville loan is a great example. Last year, that loan matured and was part of a pool that the Blackstone and Great Wolf team securitized and refinanced, and we participated in that refinancing. A lot of times, there are opportunities to reinvest with our partners and keep that capital outstanding. It's something we monitor very actively internally and always thinking about what we're going to do when that money comes back. Yeah. yeah Apologies, I repeat myself. apologies i repeat myself Not sure when we got cut out. not sure when we got cut out We're actively working with all of our partners to understand when loans may be repaid and then working internally on evaluating alternative investment options when that capital comes back, or alternatively talking with them about refinancing options. we're actively working with all of our partners to understand when loans may be repaid and then working internally on evaluating alternative investment options when that capital comes back or alternatively talking with them about refinancing options I think the Great Wolf Perryville loan is a great example. i think the great wolf perryville loan is a great example Last year, that loan matured and was part of a pool that the Blackstone and Great Wolf team securitized and refinanced, and we participated in that refinancing. last year that loan matured and was part of a pool that the blackstone and great wolf team securitized and refinanced and we participated in that refinancing A lot of times, there are opportunities to reinvest with our partners and keep that capital outstanding. a lot of times there are opportunities to reinvest with our partners and keep that capital outstanding It's something we monitor very actively internally and always thinking about what we're going to do when that money comes back. it's something we monitor very actively internally and always thinking about what we're going to do when that money comes back

Speaker 8: Great. Thank you. Great. great Thank you. thank you

Speaker 3: The next question comes from Chris Darling from Green Street. Chris, please go ahead. The next question comes from Chris Darling from Green Street. the next question comes from chris darling from green street Chris, please go ahead. chris please go ahead

Speaker 1: Hey, thanks. Good morning. Just circling back to the iGaming conversation, as you think about states where iGaming currently exists or may be legalized over time, to what extent does this impact how you underwrite either incremental capital deployment or maybe new casino sale lease specs relative to, say, jurisdictions without any near-term sightline for iGaming? Hey, thanks. hey thanks Good morning. good morning Just circling back to the iGaming conversation, as you think about states where iGaming currently exists or may be legalized over time, to what extent does this impact how you underwrite either incremental capital deployment or maybe new casino sale lease specs relative to, say, jurisdictions without any near-term sightline for iGaming? just circling back to the igaming conversation as you think about states where igaming currently exists or may be legalized over time to what extent does this impact how you underwrite either incremental capital deployment or maybe new casino sale lease specs relative to say jurisdictions without any near-term sightline for igaming

Speaker 6: Yeah, Chris, it's a great question. When we started the company, at that point, there actually wasn't any states that had iGaming. Some of our leases and some of our underwriting did not take that into effect. Obviously, now we have a few years of states that have online sports betting. They have bricks and mortar, and they have iGaming. We better understand what has been the impact to all of those three pillars. It definitely is a factor in the way that we think about underwriting. The other thing we keep up with is what states may not have iGaming today but are continuing to have discussions about iGaming and what could that impact have positively and negatively on the asset that we would be underwriting in that state. It's an excellent question. It is top of mind, and we continue to learn as it goes. Yeah, Chris, it's a great question. yeah chris it's a great question When we started the company, at that point, there actually wasn't any states that had iGaming. when we started the company at that point there actually wasn't any states that had igaming Some of our leases and some of our underwriting did not take that into effect. some of our leases and some of our underwriting did not take that into effect Obviously, now we have a few years of states that have online sports betting. obviously now we have a few years of states that have online sports betting They have bricks and mortar, and they have iGaming. they have bricks and mortar and they have igaming We better understand what has been the impact to all of those three pillars. we better understand what has been the impact to all of those three pillars It definitely is a factor in the way that we think about underwriting. it definitely is a factor in the way that we think about underwriting The other thing we keep up with is what states may not have iGaming today but are continuing to have discussions about iGaming and what could that impact have positively and negatively on the asset that we would be underwriting in that state. the other thing we keep up with is what states may not have igaming today but are continuing to have discussions about igaming and what could that impact have positively and negatively on the asset that we would be underwriting in that state It's an excellent question. it's an excellent question It is top of mind, and we continue to learn as it goes. it is top of mind and we continue to learn as it goes

Speaker 2: Yeah. Chris, I'll just add that, obviously, in any investment category, investors should always be selective in how and where and when investments are made. I would say, to reiterate, I think a point we made a call or two ago, I do believe that the regional gaming landscape is, in particular, a landscape right now where an investor needs to take care in investing selectively, not only given trends around iGaming, but supply growth trends in certain jurisdictions. I think, in that respect, we will continue to be very disciplined in how we invest capital generally, but in particular, we will be monitoring each and every regional gaming investment opportunity with particular rigor. Yeah. yeah Chris, I'll just add that, obviously, in any investment category, investors should always be selective in how and where and when investments are made. chris i'll just add that obviously in any investment category investors should always be selective in how and where and when investments are made I would say, to reiterate, I think a point we made a call or two ago, I do believe that the regional gaming landscape is, in particular, a landscape right now where an investor needs to take care in investing selectively, not only given trends around iGaming, but supply growth trends in certain jurisdictions. i would say to reiterate i think a point we made a call or two ago i do believe that the regional gaming landscape is in particular a landscape right now where an investor needs to take care in investing selectively not only given trends around igaming but supply growth trends in certain jurisdictions I think, in that respect, we will continue to be very disciplined in how we invest capital generally, but in particular, we will be monitoring each and every regional gaming investment opportunity with particular rigor. i think in that respect we will continue to be very disciplined in how we invest capital generally but in particular we will be monitoring each and every regional gaming investment opportunity with particular rigor

Speaker 1: Got it. All helpful thoughts. Appreciate it. I just want to circle back as well to the conversation around Vegas, a little bit of the softer backdrop, which you're on record as saying you feel this is more of a temporary phenomenon. Given the softer backdrop, I wonder if that's influencing whether your tenants or perhaps other owners are thinking about new capital investment opportunities that they're perhaps deciding whether or not to move forward with. Do you see any impact to any extent? Got it. got it All helpful thoughts. all helpful thoughts Appreciate it. appreciate it I just want to circle back as well to the conversation around Vegas, a little bit of the softer backdrop, which you're on record as saying you feel this is more of a temporary phenomenon. i just want to circle back as well to the conversation around vegas a little bit of the softer backdrop which you're on record as saying you feel this is more of a temporary phenomenon Given the softer backdrop, I wonder if that's influencing whether your tenants or perhaps other owners are thinking about new capital investment opportunities that they're perhaps deciding whether or not to move forward with. given the softer backdrop i wonder if that's influencing whether your tenants or perhaps other owners are thinking about new capital investment opportunities that they're perhaps deciding whether or not to move forward with Do you see any impact to any extent? do you see any impact to any extent

Speaker 6: Not at all. I think everyone is aligned on this who are big operators in Las Vegas. This happens at times. It's a small blip. Again, you look at forward-looking bookings of group, you look at the attendance that's expected in the sports facilities that are built and are being built, you look at the tailwinds that this city has. We have not had one of our tenants talk about this short-term blip impacting long-term capital investment. In fact, just walk down the Strip right now, you see a lot of capital investment happening at our assets and others. It continues to be a city that we're very bullish on. It's just having a little bit of a slow summer. Not at all. not at all I think everyone is aligned on this who are big operators in Las Vegas. i think everyone is aligned on this who are big operators in las vegas This happens at times. this happens at times It's a small blip. it's a small blip Again, you look at forward-looking bookings of group, you look at the attendance that's expected in the sports facilities that are built and are being built, you look at the tailwinds that this city has. again you look at forward-looking bookings of group you look at the attendance that's expected in the sports facilities that are built and are being built you look at the tailwinds that this city has We have not had one of our tenants talk about this short-term blip impacting long-term capital investment. we have not had one of our tenants talk about this short-term blip impacting long-term capital investment In fact, just walk down the Strip right now, you see a lot of capital investment happening at our assets and others. in fact just walk down the strip right now you see a lot of capital investment happening at our assets and others It continues to be a city that we're very bullish on. it continues to be a city that we're very bullish on It's just having a little bit of a slow summer. it's just having a little bit of a slow summer

Speaker 2: Yeah. I would just add, Chris, that our Las Vegas operators benefit from longer-term booking visibility, thanks especially to the group segment that gives them greater confidence in investing capital. I believe you cover Ryman, and I would point out the degree to which our Las Vegas operators, akin to Ryman, enjoy that same forward-booking visibility that really significantly de-risks a business. I don't want to say it eliminates risk, but it definitely de-risks it versus a business that's entirely dependent on FIT. Yeah. yeah I would just add, Chris, that our Las Vegas operators benefit from longer-term booking visibility, thanks especially to the group segment that gives them greater confidence in investing capital. i would just add chris that our las vegas operators benefit from longer-term booking visibility thanks especially to the group segment that gives them greater confidence in investing capital I believe you cover Ryman, and I would point out the degree to which our Las Vegas operators, akin to Ryman, enjoy that same forward-booking visibility that really significantly de-risks a business. i believe you cover ryman and i would point out the degree to which our las vegas operators akin to ryman enjoy that same forward-booking visibility that really significantly de-risks a business I don't want to say it eliminates risk, but it definitely de-risks it versus a business that's entirely dependent on FIT. i don't want to say it eliminates risk but it definitely de-risks it versus a business that's entirely dependent on fit

Speaker 1: That's an interesting point, Ed. I appreciate the thoughts and the time. Thank you. That's an interesting point, Ed. that's an interesting point ed I appreciate the thoughts and the time. i appreciate the thoughts and the time Thank you. thank you

Speaker 3: The next question comes from Ronald Campton from Morgan Stanley. Ronald, please go ahead. Your line is open. The next question comes from Ronald Campton from Morgan Stanley. the next question comes from ronald campton from morgan stanley Ronald, please go ahead. ronald please go ahead Your line is open. your line is open Hey, good morning. This is Jenny on Veron. Thanks for taking my question. First, it's regarding the Caesars Forum Convention Center call option you have in September. I'm just curious about your latest thoughts on the deal and if you would like to exercise the call option. Thank you. Hey, good morning. hey good morning This is Jenny on Veron. this is jenny on veron Thanks for taking my question. thanks for taking my question First, it's regarding the Caesars Forum Convention Center call option you have in September. first it's regarding the caesars forum convention center call option you have in september I'm just curious about your latest thoughts on the deal and if you would like to exercise the call option. i'm just curious about your latest thoughts on the deal and if you would like to exercise the call option Thank you. thank you

Speaker 13: Yeah, Jenny, it's David. Thanks for the question. As we've talked about with our other calls in the past, we like the optionality we have around that. If we think about that asset in particular, it sits next to a couple of assets that we already own. It sits right on some land that we already own. It's a very attractive asset. We obviously just talked about the conviction we have around Las Vegas. We'll assess that opportunity. It opens up here in September and goes for a couple of years. We got a little bit of time to figure out what we might do with that asset. Yeah, Jenny, it's David. yeah jenny it's david Thanks for the question. thanks for the question As we've talked about with our other calls in the past, we like the optionality we have around that. as we've talked about with our other calls in the past we like the optionality we have around that If we think about that asset in particular, it sits next to a couple of assets that we already own. if we think about that asset in particular it sits next to a couple of assets that we already own It sits right on some land that we already own. it sits right on some land that we already own It's a very attractive asset. it's a very attractive asset We obviously just talked about the conviction we have around Las Vegas. we obviously just talked about the conviction we have around las vegas We'll assess that opportunity. we'll assess that opportunity It opens up here in September and goes for a couple of years. it opens up here in september and goes for a couple of years We got a little bit of time to figure out what we might do with that asset. we got a little bit of time to figure out what we might do with that asset Nice. Also, we know there are about 33 acres of undeveloped or underdeveloped land around the Vegas Strip that seems like currently leased to Caesars. I'm just curious about your plans to potentially monetize or develop those assets, maybe together with Caesars. Just curious about your latest thoughts on that. Thank you. Nice. nice Also, we know there are about 33 acres of undeveloped or underdeveloped land around the Vegas Strip that seems like currently leased to Caesars. also we know there are about 33 acres of undeveloped or underdeveloped land around the vegas strip that seems like currently leased to caesars I'm just curious about your plans to potentially monetize or develop those assets, maybe together with Caesars. i'm just curious about your plans to potentially monetize or develop those assets maybe together with caesars Just curious about your latest thoughts on that. just curious about your latest thoughts on that Thank you. thank you

Speaker 2: Yeah. I would say we think of that as a land bank. We have no current plans, nor does Caesars have any current plan, as far as we know, to develop that land. It definitely does have value as a land bank as we look ahead over the coming decades and as Vegas continues to achieve what we think is an unrivaled position globally as a hospitality, entertainment, and increasingly a sports destination. That land very much should increase in value over time. Yeah. yeah I would say we think of that as a land bank. i would say we think of that as a land bank We have no current plans, nor does Caesars have any current plan, as far as we know, to develop that land. we have no current plans nor does caesars have any current plan as far as we know to develop that land It definitely does have value as a land bank as we look ahead over the coming decades and as Vegas continues to achieve what we think is an unrivaled position globally as a hospitality, entertainment, and increasingly a sports destination. it definitely does have value as a land bank as we look ahead over the coming decades and as vegas continues to achieve what we think is an unrivaled position globally as a hospitality entertainment and increasingly a sports destination That land very much should increase in value over time. that land very much should increase in value over time Okay, that's all for me. Thank you. Okay, that's all for me. okay that's all for me Thank you. thank you

Speaker 3: The next question comes from Greg McGinniss from Scotiabank. Greg, please go ahead. The next question comes from Greg McGinniss from Scotiabank. the next question comes from greg mcginniss from scotiabank Greg, please go ahead. greg please go ahead

Speaker 17: Hey, just one question for me. John, I just want to dig in a bit more on the expanded funnel that you talk about. Besides gaming, which areas do you see right now as having, maybe potentially, the most investment opportunity for VICI, or which industries are you more excited about today? For both that industry and gaming, what do you think actually gets new operators interested in pursuing sale lease-back funding so we can see maybe some more acquisitions in the future? Hey, just one question for me. hey just one question for me John, I just want to dig in a bit more on the expanded funnel that you talk about. john i just want to dig in a bit more on the expanded funnel that you talk about Besides gaming, which areas do you see right now as having, maybe potentially, the most investment opportunity for VICI, or which industries are you more excited about today? besides gaming which areas do you see right now as having maybe potentially the most investment opportunity for vici or which industries are you more excited about today For both that industry and gaming, what do you think actually gets new operators interested in pursuing sale lease-back funding so we can see maybe some more acquisitions in the future? for both that industry and gaming what do you think actually gets new operators interested in pursuing sale lease-back funding so we can see maybe some more acquisitions in the future

Speaker 6: Yeah. Great, great question. We've talked about many of the sectors that we've been spending time in: theme parks, indoor water parks, ski resorts. We are spending a lot of time in sports. You've heard us talk about this on the professional level, the collegiate level. We've obviously made a good size investment in the youth sports area. We're excited about the growth there. It's a little bit in many of these sectors of how our capital can work and how it can help accelerate the growth of a team or of a resort. I can't tell you exactly which ones are going to pop. Yeah. yeah Great, great question. great great question We've talked about many of the sectors that we've been spending time in: theme parks, indoor water parks, ski resorts. we've talked about many of the sectors that we've been spending time in theme parks indoor water parks ski resorts We are spending a lot of time in sports. we are spending a lot of time in sports You've heard us talk about this on the professional level, the collegiate level. you've heard us talk about this on the professional level the collegiate level We've obviously made a good size investment in the youth sports area. we've obviously made a good size investment in the youth sports area We're excited about the growth there. we're excited about the growth there It's a little bit in many of these sectors of how our capital can work and how it can help accelerate the growth of a team or of a resort. it's a little bit in many of these sectors of how our capital can work and how it can help accelerate the growth of a team or of a resort I can't tell you exactly which ones are going to pop. i can't tell you exactly which ones are going to pop What I can tell you is we are spending a lot of time in many of these, educating folks about VICI, about how we think about partnership, how we think we could do one transaction, but most importantly, how we can be a partner for longer term. Those are the sectors. It still doesn't mean we aren't continuing to look at gaming. When we start talking about non-gaming, I always like to bring up that we continue to look at the casino business as well. What I can tell you is we are spending a lot of time in many of these, educating folks about VICI, about how we think about partnership, how we think we could do one transaction, but most importantly, how we can be a partner for longer term. what i can tell you is we are spending a lot of time in many of these educating folks about vici about how we think about partnership how we think we could do one transaction but most importantly how we can be a partner for longer term Those are the sectors. those are the sectors It still doesn't mean we aren't continuing to look at gaming. it still doesn't mean we aren't continuing to look at gaming When we start talking about non-gaming, I always like to bring up that we continue to look at the casino business as well. when we start talking about non-gaming i always like to bring up that we continue to look at the casino business as well

Speaker 2: Greg, I'll just add that our ability to do sale lease-backs and to generally get capital out the door depends to a great degree on serving the needs of growth-minded operators, in particular operators who want to grow their store counts, whether it be in gaming or in other experiential categories. We've come through a period here where the ambition levels to grow store count have not been necessarily what they have in the past. It's interesting to look, particularly in gaming, to see who's trading really well. I would cite, for example, our partners at Red Rock, who are growing store count. They did it, obviously, in Durango. They're doing it in North Fork, helped by our capital. Greg, I'll just add that our ability to do sale lease-backs and to generally get capital out the door depends to a great degree on serving the needs of growth-minded operators, in particular operators who want to grow their store counts, whether it be in gaming or in other experiential categories. greg i'll just add that our ability to do sale lease-backs and to generally get capital out the door depends to a great degree on serving the needs of growth-minded operators in particular operators who want to grow their store counts whether it be in gaming or in other experiential categories We've come through a period here where the ambition levels to grow store count have not been necessarily what they have in the past. we've come through a period here where the ambition levels to grow store count have not been necessarily what they have in the past It's interesting to look, particularly in gaming, to see who's trading really well. it's interesting to look particularly in gaming to see who's trading really well I would cite, for example, our partners at Red Rock, who are growing store count. i would cite for example our partners at red rock who are growing store count They did it, obviously, in Durango. they did it obviously in durango They're doing it in North Fork, helped by our capital. they're doing it in north fork helped by our capital I think, over time, more and more operators will realize if you really want to get anything resembling a premium valuation, you have to show the market how you're going to grow. I think, over time, more and more operators will realize if you really want to get anything resembling a premium valuation, you have to show the market how you're going to grow. i think over time more and more operators will realize if you really want to get anything resembling a premium valuation you have to show the market how you're going to grow

Speaker 17: I appreciate that. I just wanted to go back to kind of youth sports. There was recently an article in The New York Times talking about private equity getting more involved. Are you seeing opportunities to co-invest there? Are you speaking with some of these private equity funds about those investment opportunities? I appreciate that. i appreciate that I just wanted to go back to kind of youth sports. i just wanted to go back to kind of youth sports There was recently an article in The New York Times talking about private equity getting more involved. there was recently an article in the new york times talking about private equity getting more involved Are you seeing opportunities to co-invest there? are you seeing opportunities to co-invest there Are you speaking with some of these private equity funds about those investment opportunities? are you speaking with some of these private equity funds about those investment opportunities

Speaker 6: Yeah, Greg. You're reading good articles. Absolutely, there's ways to partner. There's ways that I'm sure, at times, they're looking at things that we're looking at and we're competing. That's exactly the relationship building that we are doing not only in youth sports, but in many other sectors where you are seeing other forms of financing and capital looking at the same sectors that we are. Sometimes we will partner, and sometimes we'll go it alone. That's kind of the philosophy of how we are going to grow in those sectors. Yeah, Greg. yeah greg You're reading good articles. you're reading good articles Absolutely, there's ways to partner. absolutely there's ways to partner There's ways that I'm sure, at times, they're looking at things that we're looking at and we're competing. there's ways that i'm sure at times they're looking at things that we're looking at and we're competing That's exactly the relationship building that we are doing not only in youth sports, but in many other sectors where you are seeing other forms of financing and capital looking at the same sectors that we are. that's exactly the relationship building that we are doing not only in youth sports but in many other sectors where you are seeing other forms of financing and capital looking at the same sectors that we are Sometimes we will partner, and sometimes we'll go it alone. sometimes we will partner and sometimes we'll go it alone That's kind of the philosophy of how we are going to grow in those sectors. that's kind of the philosophy of how we are going to grow in those sectors

Speaker 17: Okay, thank you. Okay, thank you. okay thank you

Speaker 3: The next question comes from Caitlin Burrows from Goldman Sachs. Caitlin, please go ahead. The next question comes from Caitlin Burrows from Goldman Sachs. the next question comes from caitlin burrows from goldman sachs Caitlin, please go ahead. caitlin please go ahead

Speaker 16: Hi. This is Jeremy Kuhl on for Caitlin. Circling back on a topic earlier in the call, given supply and regional markets, which regional markets are you most interested in next? Hi. hi This is Jeremy Kuhl on for Caitlin . this is jeremy kuhl on for caitlin Circling back on a topic earlier in the call, given supply and regional markets, which regional markets are you most interested in next? circling back on a topic earlier in the call given supply and regional markets which regional markets are you most interested in next

Speaker 3: Apologies for the continued interruption. Please stand by. We are now rejoined by the speaker team. Please continue when you're ready. Apologies for the continued interruption. apologies for the continued interruption Please stand by. please stand by We are now rejoined by the speaker team. we are now rejoined by the speaker team Please continue when you're ready. please continue when you're ready

Speaker 2: Again, our apologies, folks. We greatly appreciate your patience if you're still there. We appear to be having some Wi-Fi issues. We're now on Haze's phone. Haze, thanks for your phone. Just to repeat Jeremy's question, Jeremy asked which regional markets might be attractive to us. I will now turn it back over to John. Again, our apologies, folks. again our apologies folks We greatly appreciate your patience if you're still there. we greatly appreciate your patience if you're still there We appear to be having some Wi-Fi issues. we appear to be having some wi-fi issues We're now on Haze's phone. we're now on haze's phone Haze, thanks for your phone. haze thanks for your phone Just to repeat Jeremy's question, Jeremy asked which regional markets might be attractive to us. just to repeat jeremy's question jeremy asked which regional markets might be attractive to us I will now turn it back over to John. i will now turn it back over to john

Speaker 6: We apologize. If I'm repeating myself a little bit here, I think the number one regional market we'd love to be in is in Las Vegas. It continues to be strong. There are world-class assets. There are markets like Reno that have some wonderful assets, but we're not in that market. There are new markets like Virginia, I would say, or other regional markets, just to name three that we'd be interested in being a part of. I'm sure there's another four or five that I could go through, but you get the idea. We apologize. we apologize If I'm repeating myself a little bit here, I think the number one regional market we'd love to be in is in Las Vegas. if i'm repeating myself a little bit here i think the number one regional market we'd love to be in is in las vegas It continues to be strong. it continues to be strong There are world-class assets. There are markets like Reno that have some wonderful assets, but we're not in that market. there are world-class assets. there are markets like reno that have some wonderful assets but we're not in that market There are new markets like Virginia, I would say, or other regional markets, just to name three that we'd be interested in being a part of. there are new markets like virginia i would say or other regional markets just to name three that we'd be interested in being a part of I'm sure there's another four or five that I could go through, but you get the idea. i'm sure there's another four or five that i could go through but you get the idea

Speaker 16: Great. Thanks. Just one quick follow-up. I saw on the news that Lucky Strike tenant VICI recently did a reverse sale lease-back. Does that impact VICI at all? Are there any concerns that any other tenants could do something similar? Thanks. Great. great Thanks. thanks Just one quick follow-up. just one quick follow-up I saw on the news that Lucky Strike tenant VICI recently did a reverse sale lease-back. i saw on the news that lucky strike tenant vici recently did a reverse sale lease-back Does that impact VICI at all? does that impact vici at all Are there any concerns that any other tenants could do something similar? are there any concerns that any other tenants could do something similar Thanks. thanks

Speaker 13: Yeah, Jeremy. It's David. To answer your question, Greg, it does not impact VICI. We've got a great relationship with Tom and Bobby over at Lucky Strike. You may have seen this morning, they had some acquisitions of some outdoor water parks as well. They continue to grow their business, and how they ultimately capitalize their business over the long term is up to them. I think there could be more opportunities to grow with them in the future. They're an example of what Ed just talked about, the operator that's growing their store count. There could potentially be more to come with them over time. Yeah, Jeremy. yeah jeremy It's David. it's david To answer your question, Greg, it does not impact VICI. to answer your question greg it does not impact vici We've got a great relationship with Tom and Bobby over at Lucky Strike . we've got a great relationship with tom and bobby over at lucky strike You may have seen this morning, they had some acquisitions of some outdoor water parks as well. you may have seen this morning they had some acquisitions of some outdoor water parks as well They continue to grow their business, and how they ultimately capitalize their business over the long term is up to them. they continue to grow their business and how they ultimately capitalize their business over the long term is up to them I think there could be more opportunities to grow with them in the future. i think there could be more opportunities to grow with them in the future They're an example of what Ed just talked about, the operator that's growing their store count. they're an example of what ed just talked about the operator that's growing their store count There could potentially be more to come with them over time. there could potentially be more to come with them over time

Speaker 3: The next question comes from Ravi Vaidya from Mizuho. Ravi, please go ahead. The next question comes from Ravi Vaidya from Mizuho. the next question comes from ravi vaidya from mizuho Ravi, please go ahead. ravi please go ahead

Speaker 10: Hi there. I hope you guys are doing well. I wanted to ask about the Red Rock deal. Has any capital been drawn down for that deal thus far? Maybe can you describe broadly the opportunity then going forward? You mentioned interest in the locals' market in Las Vegas. I think Red Rock owns a little less than 500 acres in that area. Is that something that you'd be interested in partnering with and in a relationship you want to expand upon? Hi there. hi there I hope you guys are doing well. i hope you guys are doing well I wanted to ask about the Red Rock deal. i wanted to ask about the red rock deal Has any capital been drawn down for that deal thus far? has any capital been drawn down for that deal thus far Maybe can you describe broadly the opportunity then going forward? maybe can you describe broadly the opportunity then going forward You mentioned interest in the locals' market in Las Vegas. you mentioned interest in the locals' market in las vegas I think Red Rock owns a little less than 500 acres in that area. i think red rock owns a little less than 500 acres in that area Is that something that you'd be interested in partnering with and in a relationship you want to expand upon? is that something that you'd be interested in partnering with and in a relationship you want to expand upon

Speaker 13: Yeah, Ravi, it's David. I mean, we put up just under $80 million on the initial drop when we announced that loan development. Just the way the funding cadence works, there's a little bit of pause from our capital, and then the draw schedule will pick it back up later this year. Yeah, Ravi, it's David. yeah ravi it's david I mean, we put up just under $80 million on the initial drop when we announced that loan development. i mean we put up just under $80 million on the initial drop when we announced that loan development Just the way the funding cadence works, there's a little bit of pause from our capital, and then the draw schedule will pick it back up later this year. just the way the funding cadence works there's a little bit of pause from our capital and then the draw schedule will pick it back up later this year If you listen to Red Rock's call last quarter, not just two days ago, Steve and Frank and Lorenzo talked about the long-term relationship they've had with VICI and how nothing's off the table. There's no imminent opportunities to do sale lease-backs. As we talked about on this call, when you do good things with your partners, opportunities may come in the future. You should listen to their most recent call from two days ago. Ed just talked about they're growing their store count. Frank and Lorenzo speak specifically to their development capabilities and how good they are at expanding their portfolios. We're thrilled to partner with them out in Madera, California, and this will be a home run opportunity for everybody involved. If you listen to Red Rock's call last quarter, not just two days ago, Steve and Frank and Lorenzo talked about the long-term relationship they've had with VICI and how nothing's off the table. if you listen to red rock's call last quarter not just two days ago steve and frank and lorenzo talked about the long-term relationship they've had with vici and how nothing's off the table There's no imminent opportunities to do sale lease-backs. there's no imminent opportunities to do sale lease-backs As we talked about on this call, when you do good things with your partners, opportunities may come in the future. as we talked about on this call when you do good things with your partners opportunities may come in the future You should listen to their most recent call from two days ago. you should listen to their most recent call from two days ago Ed just talked about they're growing their store count. ed just talked about they're growing their store count Frank and Lorenzo speak specifically to their development capabilities and how good they are at expanding their portfolios. frank and lorenzo speak specifically to their development capabilities and how good they are at expanding their portfolios We're thrilled to partner with them out in Madera, California, and this will be a home run opportunity for everybody involved. we're thrilled to partner with them out in madera california and this will be a home run opportunity for everybody involved

Speaker 10: Got it. Thank you. Got it. got it Thank you. thank you

Speaker 3: Our final question today comes from Jamie Feldman from Wells Fargo. Jamie, please go ahead. Our final question today comes from Jamie Feldman from Wells Fargo. our final question today comes from jamie feldman from wells fargo Jamie, please go ahead. jamie please go ahead

Speaker 14: Great. Thanks for taking the follow-up from our team. I just want to go back to the bonus depreciation discussion. It could be a pretty meaningful wave of spending here. Lots of projects that probably do have a meaningful amount of tenant CapEx, which, based on your comments before, sounds like a formula for you. How much time are you thinking about real shifts in your investment attention based on what we might be seeing coming down the pipeline in terms of just very large-scale CapEx projects that need capital? Great. great Thanks for taking the follow-up from our team. thanks for taking the follow-up from our team I just want to go back to the bonus depreciation discussion. i just want to go back to the bonus depreciation discussion It could be a pretty meaningful wave of spending here. it could be a pretty meaningful wave of spending here Lots of projects that probably do have a meaningful amount of tenant CapEx, which, based on your comments before, sounds like a formula for you. lots of projects that probably do have a meaningful amount of tenant capex which based on your comments before sounds like a formula for you How much time are you thinking about real shifts in your investment attention based on what we might be seeing coming down the pipeline in terms of just very large-scale CapEx projects that need capital? how much time are you thinking about real shifts in your investment attention based on what we might be seeing coming down the pipeline in terms of just very large-scale capex projects that need capital

Speaker 2: Yeah. I think, Jamie, that because obviously this bill just passed, and with it, this bonus depreciation component, I don't think everybody had a whole bunch of plans kind of sitting on the shelf waiting for this. I do think what you are likely to see over the next year is a lot of planning based upon the benefits now of this bonus depreciation and with those plans getting executed in the next year, two, and three years, and that capital being spent over that time. I don't think you're going to see an immediate spending of capital, but it has certainly created an environment where over the next few years, it should unleash a very strong wave of capital investment, hopefully with some of our money. In any case, capital that will increase the value of our building. Yeah. yeah I think, Jamie, that because obviously this bill just passed, and with it, this bonus depreciation component, I don't think everybody had a whole bunch of plans kind of sitting on the shelf waiting for this. i think jamie that because obviously this bill just passed and with it this bonus depreciation component i don't think everybody had a whole bunch of plans kind of sitting on the shelf waiting for this I do think what you are likely to see over the next year is a lot of planning based upon the benefits now of this bonus depreciation and with those plans getting executed in the next year, two, and three years, and that capital being spent over that time. i do think what you are likely to see over the next year is a lot of planning based upon the benefits now of this bonus depreciation and with those plans getting executed in the next year two and three years and that capital being spent over that time I don't think you're going to see an immediate spending of capital, but it has certainly created an environment where over the next few years, it should unleash a very strong wave of capital investment, hopefully with some of our money. i don't think you're going to see an immediate spending of capital but it has certainly created an environment where over the next few years it should unleash a very strong wave of capital investment hopefully with some of our money In any case, capital that will increase the value of our building. in any case capital that will increase the value of our building

Speaker 14: I guess my question is more, would you consider shifting away from your traditional focus, gaming, experiential, if there are major projects that look interesting? I guess my question is more, would you consider shifting away from your traditional focus, gaming, experiential, if there are major projects that look interesting? i guess my question is more would you consider shifting away from your traditional focus gaming experiential if there are major projects that look interesting

Speaker 2: No, not necessarily. Without side experiential, I would say right now it is out of scope for our investing. I don't know if you're sort of referring to data centers or something like that. Right now, we continue to believe very much in the secular power and secular sustainability of experiential as an investment category. No, not necessarily. no not necessarily Without side experiential, I would say right now it is out of scope for our investing. without side experiential i would say right now it is out of scope for our investing I don't know if you're sort of referring to data centers or something like that. i don't know if you're sort of referring to data centers or something like that Right now, we continue to believe very much in the secular power and secular sustainability of experiential as an investment category. right now we continue to believe very much in the secular power and secular sustainability of experiential as an investment category

Speaker 14: Okay. Going back to your initial comments about the dividend. As you think about the earnings and cash flow profile, I know Tony asked before about debt investments versus real estate equity investments. I think that you broke up a little bit on the answer. Do you have a sense of, when you think about dividend composition, how much of the cash flow you'd want from debt investments versus fee simple equity investments? Okay. okay Going back to your initial comments about the dividend. going back to your initial comments about the dividend as As you think about the earnings and cash flow profile, I know Tony asked before about debt investments versus real estate equity investments. as you think about the earnings and cash flow profile i know tony asked before about debt investments versus real estate equity investments I think that you broke up a little bit on the answer. i think that you broke up a little bit on the answer Do you have a sense of, when you think about dividend composition, how much of the cash flow you'd want from debt investments versus fee simple equity investments? do you have a sense of when you think about dividend composition how much of the cash flow you'd want from debt investments versus fee simple equity investments

Speaker 2: Yeah. I wouldn't say we necessarily break it, decompose the dividend in that way. What we certainly look at is how we are going to grow AFFO per share over time and the degree to which we can use both retained and regained capital to continue to grow our AFFO per share and thus grow our dividend. I wouldn't say we necessarily decompose the AFFO in such a way that it then derives dividend policy. Yeah. yeah I wouldn't say we necessarily break it, decompose the dividend in that way. i wouldn't say we necessarily break it decompose the dividend in that way What we certainly look at is how we are going to grow AFFO per share over time and the degree to which we can use both retained and regained capital to continue to grow our AFFO per share and thus grow our dividend. what we certainly look at is how we are going to grow affo per share over time and the degree to which we can use both retained and regained capital to continue to grow our affo per share and thus grow our dividend I wouldn't say we necessarily decompose the AFFO in such a way that it then derives dividend policy. i wouldn't say we necessarily decompose the affo in such a way that it then derives dividend policy

Speaker 3: This concludes today's Q&A session. I'll hand the call back to Ed for some closing comments. This concludes today's Q&A session. this concludes today's q&a session I'll hand the call back to Ed for some closing comments. i'll hand the call back to ed for some closing comments

Speaker 2: Yeah, I just want to, again, apologize to everybody for the technical difficulties today. Appreciate your patience and very much look forward to talking to you next time when we are very determined we will not have these issues. Thank you. Yeah, I just want to, again, apologize to everybody for the technical difficulties today. yeah i just want to again apologize to everybody for the technical difficulties today Appreciate your patience and very much look forward to talking to you next time when we are very determined we will not have these issues. appreciate your patience and very much look forward to talking to you next time when we are very determined we will not have these issues Thank you. thank you

Speaker 3: This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines. This concludes today's call. this concludes today's call Thank you very much for your attendance. thank you very much for your attendance You may now disconnect your lines. you may now disconnect your lines