Transformative Acquisitions: MGM Growth Properties & The Venetian Resort
MASTER LEASE AGREEMENTS (CONTINUED)
TRIPLE NET STRUCTURE PROVIDES SECURITY & EARNINGS PREDICTABILITY
Greektown Lease
Penn National Gaming
Hard Rock Cincinnati Lease
Hard Rock Entertainment
Century Master Lease
Century Casinos
Tenant
Current
Annual Cash
Rent
Current
Lease Year
Annual
Escalator
Coverage
Floor
Rent
Adjustment
$51.3mm
June 1, 2021 - May 31, 2022
Lease Year 3
2% for Building Base Rent
($42.8mm)
Net Revenue to Rent Ratio to be mutually agreed
upon prior to the commencement of lease year 4
Percentage (Variable) Rent adjusts every 2 years
beginning in year 3
$43.4mm
$25.3mm
Oct. 1, 2021 Sept. 30, 2022
Lease Year 3
1.5% in years 2-4
> 2.0% / CPI thereafter
Jan. 1, 2021 Dec. 31, 2021
Lease Year 2
1.0% in years 2-3
> 1.25% / CPI thereafter
None (1)
Year 8: 80% Base (subject to escalator)
/ 20% Variable
Net Revenue to Rent Ratio:
7.5x beginning in year 6
Year 8 & 11: 80% Base (subject to escalator)
/ 20% Variable
Variable Rent
Adjustment
Mechanic
4% of the average net revenues for trailing 2-year
period less threshold amount
4% of revenue increase/decrease
Year 8: Avg. of years 5-7 less avg. of years 1-3
Term
Guarantor
15-year initial term with four 5-year renewal options
Penn National Gaming
4% of net revenue increase/decrease
Year 8: Avg. of years 5-7 less avg. of years 1-3
Year 11: Avg. of years 8-10 less avg. of years 5-7
Initial term of 15-years with four 5-year renewals
Seminole Hard Rock Entertainment, Inc.
Century Casinos, Inc.
Capex
Minimum 1% of Net Revenue based on a four-year
average
Minimum 1% of Net Revenues
VICI
Minimum 1% of Net Revenue on a rolling three-year
basis for each individual facility; 1% of Net Gaming
Revenue per fiscal year for the facilities collectively (2)
(1) Starting in lease year 5, if the change in CPI is less than 0.5%, there will be no escalation in rent for such lease year. (2) Capex requirements commenced January 1, 2021.
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