Home > Finance > Vici cites “accretive acquisitions” in Q2 growth
Vici Properties reported revenue of $898.2m for the second quarter of 2023 ended 30 June, up by 35.5% year-on-year.
Although notable, this rise in revenue was significantly less than the 110.7% year-on-year increase reported in Vici’s Q1 results.
Edward Pitoniak, CEO of Vici, said that the company’s strategic acquisitions had helped to boost revenue in Q2.
“Vici’s strong second quarter financial performance, exemplified by approximately 36% revenue growth and nearly 12% growth in AFFO per share year-over-year, reflects the impact of our consistent commitment to accretive acquisitions and strategic financings,” he said.
During the second quarter, the investment trust acquired the Alberta properties owned by Century Casinos for CA$221.7m. The properties are Century Casino and Hotel Edmonton, Century Casino St. Albert, Century Mile Racetrack and Casino and Century Downs.
“In the second quarter, we continued to expand our international presence through the announced acquisition of four casino properties in Alberta, Canada with our existing tenant and partner, Century Casinos,” Pitoniak explained.
The revenue consisted mostly of income from sales-type leases, at $495.3m. Income from lease financing receivables, loans and other securities was $373.1m. Other income totalled $18.5m, while golf revenues hit $11.1m for the period.
Other expenses – which were not specified – generated the highest expense during the quarter, at $18.5m. General and administrative expenses reached $14.9m, while golf expenses were $6.5m. Depreciation and transaction expenses were $887,000 and $777,000, respectively.
However, a change in allowance for credit losses at $41.3m all but covered the quarter’s costs, causing the operating expenses to total $344,000. This was a world away from the operating expenses in Q2 2022, which were $602.5m.
Interest expense came to $203.5m. Following interest income at $5.8m and other gains at $3.4m, the pre-tax income was $703.4m. This was $760.5m more than in Q2 2022.
Following income tax expense of $1.8m, the net income for the quarter was $701.5m, a rise of $759.7m
Vici’s successful first and second quarter brought the half year revenue to $1.77bn, up by 65.4% year-on-year from H1 2022.
Total operating expenses for the six months came to $150.9m, a decrease of 78.7% yearly. Pre-tax income for the half year stands at $1.23bn, rocketing 556.2%, while total net income similarly totaled at $1.22bn.
Looking ahead, Vici expects its adjusted funds from operations (AFFO) for full-year 2023 to be between $2.13bn and $2.16bn. This would be between $2.11 and $2.14 per diluted share.
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