Soon the biggest landlord on the Strip believes there has never been a better time to invest in Las Vegas.
That’s understandable excitement for a company that has signed strip property contracts totaling more than $ 21 billion this year alone.
“We were very excited from the day we started the company. We’re even more excited today to see what’s happening in Las Vegas. ”John Payne, Vici President and Chief Operating Officer, said on a conference call Thursday regarding the quarterly results.
Vici, a REIT affiliated with Caesars Entertainment Corp founded in 2017, announced in August that it had entered into an agreement to acquire MGM Resorts International spin-off MGM Growth Properties for $ 17.2 billion. Upon completion of the transaction, which is expected in the first half of 2022, Vici will own 10 properties along the strip.
That deal followed an announcement in March that Vici was partnering with Apollo Global Management to purchase the Venetian, Palazzo and Sands Expo (now known as the Venetian Expo) properties for $ 6.25 billion, with Vici being $ 4 billion – dollars paid for the transaction. This deal should also be concluded next year.
Payne said the company’s sentiment toward the region only got stronger after seeing the impressive rebound in southern Nevada’s gambling and tourism industries.
Nevada gaming revenue surpassed $ 1 billion for the seventh straight month in September, the second longest streak in history. Room and occupancy rates, as well as visitor numbers, continue to rise as major events and conventions return to Las Vegas.
“What became perfectly clear even after the facilities closed due to the pandemic and reopened, clearly the consumer has not found a replacement for Las Vegas,” Payne said.
Vici on Thursday reported revenue of $ 375.7 million for the third quarter of 2021, up 10.6 percent year over year. Net income for the quarter was $ 164.2 million. Vici shares closed 0.87 percent on Thursday at $ 30 on the New York Stock Exchange.
The review journal is owned by the family of Dr. Miriam Adelson, the majority shareholder of Las Vegas Sands Corp, which operates The Venetian, Palazzo and the Venetian Expo.
Contact Colton Lochhead at clochhead@reviewjournal.com. Follow @ColtonLochhead on Twitter.
