VICI Dividend Growth & Investment Grade Ratings slide image

VICI Dividend Growth & Investment Grade Ratings

RECONCILIATION FROM GAAP TO NON-GAAP FINANCIAL MEASURES (CONT.) The following table reconciles net income to FFO, AFFO and Adjusted EBITDA for the periods presented. ($ in millions) Net income attributable to common stockholders Real estate depreciation Funds From Operations ("FFO") (1) Non-cash leasing and financing adjustments Non-cash change in allowance for credit losses Non-cash stock-based compensation Transaction and acquisition expenses Amortization of debt issuance costs and original issue discount Other depreciation (2) Capital expenditures Loss on extinguishment of debt and interest rate swap settlement (3) Loss on impairment Non-cash gain upon lease modification (4) Non-cash adjustments attributable to non-controlling interests Adjusted Funds From Operations ("AFFO") Interest expense, net Income tax expense Adjusted EBITDA Weighted average number of shares of common stock outstanding - diluted AFFO per common share - diluted Total debt Cash and cash equivalents Net Debt Net Leverage Ratio VICI Year Ended December 31, 2021 2020 2019 2018 $1,014 $892 $546 $524 $1,014 $892 $546 $524 (119) (40) 0 (45) (20) 245 - 9 7 5 10 9 5 71 20 33 206 3 4 4 (2) སེ༠ (2) (2) 80 39 58 4 (1) 23 12 (333) 1 (4) 0 0 $1,047 $836 $650 $526 257 282 195 195 3 1 2 1 $1,307 577 $1.82 $1,119 511 $847 $722 $1.64 439 $1.48 367 $1.43 As of December 31, 2021 Pro Forma for Venetian 4,750 5,350 670 ~430 4,080 4,920 3.1x 3.2x (1) Amounts represent the non-cash adjustment to income from sales-type leases, direct financing leases and lease financing receivables in order to recognize income on an effective interest basis at a constant rate of return over the term of the leases. (2) Represents depreciation related to our golf course operations. (3) Includes swap breakage costs of approximately $64.2mm incurred by VICI PropCo on September 15, 2021 in connection with the early settlement of the outstanding interest rate swap agreements. (4) Gain upon lease modification of $333.4mm in the year ended December 31, 2020 resulted from the reclassifications of the Caesars Lease Agreements upon the consummation of the Eldorado Transaction on July 20, 2020. As a result, we recorded the investments at their estimated fair values as of the modification date and recognized a net gain equal to the difference in fair value of the assets and their carrying values immediately prior to the modification. 47
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