VICI Dividend Growth & Investment Grade Ratings slide image

VICI Dividend Growth & Investment Grade Ratings

MASTER LEASE AGREEMENTS (CONTINUED) TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY MGM Master Lease (1) MGM Grand & Mandalay Bay BREIT JV Lease (1) The Mirage Lease (1) Tenant Current Annual Cash Rent MGM Resorts International MGM Resorts International $770mm ($860mm less $90mm attributable to the Mirage (2)) $298mm (VICI's 50.1% Pro Rata Share: $149mm) Hard Rock $90mm (2) Current Lease Year Subject to closing Lease Year 2 Subject to closing Annual Escalator 2% in years 2-10 2% in years 2-15 2% in years 2-10 > 2%/ change in CPI thereafter (capped at 3.0%) >2% / change in CPI thereafter (capped at 3%) > 2% / change in CPI thereafter (capped at 3.0%) Coverage Floor Rent Adjustment Variable Rent Adjustment Mechanic None None None None None None None None None Term 25-year initial term with three 10-year renewals 30-year initial term with two 10-year renewals 25-year initial term with three 10-year renewals Guarantor Capex MGM Resorts International 1% of Net Revenues MGM Resorts International 3.5% of Net Revenues based on 5-year rolling test (subject to minimum 2.5% for each property); 1.5% monthly reserves Seminole Hard Rock Entertainment, Inc.; Seminole Hard Rock International, LLC 1% of Net Revenues VICI (1) Pending transaction close and subject to customary closing conditions and regulatory approvals. (2) On December 13, 2021, in connection with MGM's agreement to sell the operations of the Mirage to Hard Rock, VICI agreed to enter into a separate lease with Hard Rock related to the Mirage, subject to customary closing conditions, regulatory approvals and the closing of the MGP Transactions. Upon closing of the transaction, the MGM Master Lease will be amended to reflect the removal of the Mirage and initial annual rent payments will be reduced by $90.0mm. 45
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