Transformative Acquisitions: MGM Growth Properties & The Venetian Resort
...AND PROGRESS TOWARDS ACHIEVING INVESTMENT GRADE RATINGS
VICI's Equity Issuance & Exchange Offer Are Key
Steps Toward Venetian & MGP Acquisitions
September 15, 2021
"Pro forma VICI will have reduced tenant concentration, improved asset
quality...a fully unencumbered asset pool and a well staggered maturity
schedule. The combined company's strengthened credit profile and 5.0x-5.5x
net leverage target will likely be consistent with a low investment-grade
IDR over the long term."
MOODY'S
REACTIONS FROM RATING AGENCIES
S&P Global
Ratings
VICI Properties Inc. Ratings Placed on CreditWatch
Positive on Announced Acquisition of MGM
Growth Properties LLC
August 4, 2021
"The acquisition will improve VICI's scale and tenant diversity such that it
could support a greater level of leverage at a higher rating...if the company
finances the acquisition with a mix of equity and debt that leads to pro
forma leverage of about 6x or below...we could raise our rating to BBB-"
Fitch Ratings
LARGEST FOUR-WALL REITS CREDIT RATINGS (1)
All Other "Four-Wall" US REITS with a Total Enterprise Value in
Excess of $20Bn Have Investment Grade Credit Ratings
PLD
EQIX
SPG
PSA
DLR
WELL
Investment Grade
ކ
Enterprise Value
$130
S&P Rating
A-
84
BBB
83
A-
65
A
61
BBB
51
BBB+
✓
50
A-
ARE
44
BBB+
(2)
PF VICI
42
BB
EQR
41
A-
AVB
41
A-
BXP
33
BBB+
VTR
33
BBB+
EXR
32
BBB
INVESTORS SERVICE
Update Following Announcement to Acquire
MGM Growth Properties; Ratings Under
Review for Upgrade
August 12, 2021
ESS
28
BBB+
ކ
MAA
28
BBB+
✓
DRE
25
BBB+
PEAK
"The acquisition will improve the portfolio's quality and reduce tenant
concentration... the rating action also considers VICI's good corporate
governance...the review could result in an up to two notch upgrade for
VICI's CFR and senior unsecured rating"
25
BBB+
UDR
24
BBB+
KIM
20
BBB+
VICI
(1) As of November 5, 2021; "Four-Wall" REITs excludes tower and timber REITs. (2) Pro forma VICI Enterprise Value (excluding pro rata share of BREIT JV debt) reflects pro forma fully diluted shares outstanding of 963MM and
VICI closing share price of $29.74 on November 5, 2021.
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