Venture undertakes indigenous community initiative at Station
Hittin' the Strip in Northern Cali 🚀
Get ready, folks! Vici Properties is making moves in the world of tribal casinos and this time it's in good company. 🎃
The real estate bigwig just locked down a $510 million deal with Station Casinos to fund a casino resort in Northern California. The project belongs to the North Fork Mono Rancheria. 🎲
The financing deal is divided into two segments. The first part is a $340 million loan with Vici contributing $125 million, and the rest going to another lender. The second part, a whopping $385 million, is all Vici's. The loans will be repaid by 2031. 📅
Edward Pitoniak, Vici's big boss, had this to say: "This partnership is Vici's second venture into tribal land financing, and it marks Station Casinos' first with a REIT. We're stoked about these connections and our ability to foster deep bonds with forward-thinking operators that share our ambitions for long-term growth." 🤝
David Kieske, the CFO, added, "We're proud of our focus on balance-sheet management and our readiness in all market conditions." 📊
In other news, Vici ponied up $1.3 billion in senior notes after March 31 to cover existing debt. 💸
Stepping away from the slots, Vici reaffirmed its alliance with Eldridge Industries and Cain International on a $300 million Beverly Hills retail project dubbed One Beverly Hills. The REIT also introduced a new $2.5 billion revolving credit facility that replaces an earlier one of the same size. 🛍️
Revenue for the quarter hit $984.2 million, an increase of 3.4%. However, profits saw a 7.9% dip, landing at $543.6 million. Vici closed the quarter with $334.3 million cash reserves and a lobby-filling $16.8 billion debt. 💰💸
Fun Facts 🌭
- The North Fork casino resort is being built near Madera, California. 🗺️
- Red Rock Resorts, Station Casinos' parent company, has partnered with the North Fork Rancheria for over two decades. The collaboration has played a significant role in the tribe's economic development. 🏛️
- Vici has no commitments beyond the Madera project with Station Casinos but is open to future collaborations. 💭
This partnership signals Vici Properties' strategic exploration of tribal gaming and its commitment to forging lasting relationships with entrepreneurial casino operators like Station Casinos. 🤝🎰
- Vici Properties, through a $510 million deal, is financing the development of a tribal casino resort in Northern California, marking a significant entry into tribal casinos.
- In the financing deal for the North Fork Mono Rancheria's casino resort, Vici Properties will contribute $125 million, with the rest of the first part going to another lender, and the entire second part worth $385 million coming from Vici.
- This marks Station Casinos' first partnership with a Real Estate Investment Trust (REIT) like Vici and signals Vici's second venture into tribal land financing, reflecting a shared ambition for long-term growth.
