VICI Properties, a NYSE-traded real-estate trust company, owns 54 gaming properties across the US and Canada. Its portfolio includes some of the most iconic gambling destinations in North America, such as Caesars Palace, Borgata, MGM Grand, and Mandalay Bay.
VICI recently expanded its portfolio in the Canadian market. In September, the company completed the acquisition of four gambling properties in Alberta from Century Casinos for a total of C$221.7 million. The deal comprises all of Century Casino’s land-based properties in Canada, including Century Casino & Hotel Edmonton, Century Casino St Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.
The Canadian real-estate portfolio includes nearly 80,000 gaming square footage, 170 acres of total land, nearly 2300 slot machines, and 75 VLTs.
Century’s previous owner will continue to manage the operations at the sites as part of a wider master lease agreement between Vici and Century Casinos. Vici announced that Century Casino’s annual rent would increase by C$17.3 million, or 7.8% of the cost of the acquisition.
Century Casinos reported record revenues in the second quarter of 2023 but suffered a 96.3% decline in net profit year-on-year. The company’s co-CEOs, Erwin Haitzmann and Peter Hoetzinger, have indicated that they will use funds from the sale to improve other properties, including the Nugget Casino Resort, and pay down existing debt.
“This transaction unlocks the real estate value of our Canadian properties while continuing our Canadian operations and provides us with greater financial flexibility as we continue to grow. We are pleased to extend our good partnership with VICI to our Canada portfolio,” they said in a statement on the completion of the purchase.
Last week, VICI Properties released its financial results for the third quarter of 2023, showing a 20.3% increase in revenues, reaching US$904.3 million. Additionally, the net income attributable to common stockholders increased to US$556.3 million, up from the previous year’s US$330.9 million.
“VICI’s third quarter financial performance reflects our sustained, sustainable commitment to accretive growth and capital deployment through acquisitions and strategic financing activity,” siad VICI Properties CEO Edward Pitoniak.
With an impressive financial performance in the third quarter of 2023, including a 20.3% rise in total revenues, Vici’s strategic initiatives, including its Canadian acquisitions and financing activities, have contributed to this growth.