Transformative Acquisitions: MGM Growth Properties & The Venetian Resort
MASTER LEASE AGREEMENTS
TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY
Regional Master Lease and
Joliet Lease (1)
Caesars Entertainment
Las Vegas Master Lease (1)
Caesars Entertainment
Margaritaville Bossier City Lease
Penn National Gaming
Tenant
Current
Annual Cash
Rent
Current
Lease Year
Annual
Escalator
Coverage
Floor
Rent
Adjustment (3)
$649.6mm(2)
Nov. 1, 2021 Oct. 31, 2022
Lease Year 5
1.5% in years 2-5
>2% change in CPI thereafter, subject to 2% floor
None
Year 8: 70% Base / 30% Variable
Year 11 & 16: 80% Base/ 20% Variable
$422.2mm
$23.5mm
Nov. 1, 2021 Oct. 31, 2022
Lease Year 5
>2% change in CPI, subject to 2% floor
Feb. 1, 2021 - Jan. 31, 2022
Lease Year 3
2% for Building Base Rent
($17.2mm)
None
Year 8, 11 & 16: 80% Base / 20% Variable
Net Revenue to Rent Ratio:
6.1x beginning in year 2
Percentage (Variable) Rent adjusts every 2 years
beginning in year 3
Variable Rent
Adjustment
Mechanic
Term
Guarantor
Capex
4% of revenue increase/decrease
Year 8: Avg. of years 5-7 less avg. of
years 0-2
Year 11: Avg. of years 8-10 less avg. of
years 5-7
Year 16: Avg. of years 13-15 less avg. of years 8-10
4% of revenue increase/decrease
Year 8: Avg. of years 5-7 less avg. of
years 0-2
Year 11: Avg. of years 8-10 less avg. of
years 5-7
Year 16: Avg. of years 13-15 less avg. of years 8-10
18-year initial term with four 5-year renewal options (4)
Caesars Entertainment, Inc.
$405.2mm (together with CPLV) required over rolling
3-year period at $114.5mm minimum per year
($311mm allocated to regional assets, $84mm
allocated to CPLV, and $10.2mm allocated by the
tenant)
Caesars Entertainment, Inc.
CPLV: $84mm (included in the $405.2mm required
under Regional Master Lease) over rolling 3-year
period
HLV: $171mm between 2017 and 2021; Capex at 1%
of net revenue thereafter
4% of the average net revenues for trailing 2-year
period less threshold amount
15-year initial term with four 5-year renewal options
Penn National Gaming
Minimum 1% of Net Revenue based on a four-year
average
VICI
(1) Regional Master Lease and Joliet Lease consists of 16 Caesars properties leased from VICI and Las Vegas Master Lease consists of Caesars Palace Las Vegas and Harrah's Las Vegas. (2) Cash rent amounts are presented prior to
accounting for the portion of rent payable to the 20% JV partner at Harrah's Joliet. After adjusting for the portion of rent payable to the 20% JV partner, Current Annual Cash Rent is $641.2mm. (3) Rent adjustments in the Regional 45
Master Lease and Las Vegas Master Lease occur in lease years based on a lease commencement date of October 6, 2017. (4) Upon the consummation of the Eldorado Transaction, the Caesars Lease Agreements were extended
such that each lease has a full 15-year initial lease term from the date of consummation.View entire presentation