A previously agreed-upon $103.5 million Las Vegas Strip land sale from Caesars Entertainment Inc. to its affiliated real estate investment trust, Vici Properties Inc., is on hold.
Vici CEO Edward Pitoniak told investors Thursday that Vici and Caesars have shelved the potential sale of 23 acres of land next to several of its central Strip properties because of entitlement and permitting issues surrounding Caesars’ parking obligations.
“It was not going to be easy to unwind those quickly,” Pitoniak said during a third-quarter earnings call, “and given the magnitude of activity that Caesars is currently engaged in, in terms of integrating after the (Eldorado Resorts) merger, and undertaking the various activities it is, we agreed that it was best for both of us if, for the meantime, we put that initiative aside and perhaps return to it at a time when the dust has a settled a bit post-merger.”
Eldorado and Caesars completed a $17.3 billion merger this summer.
Vici, the landlord company for 31 gaming facilities including Caesars Palace and Harrah’s in Las Vegas, was looking to buy a parcel from Caesars adjacent to Bally’s, The Linq Hotel, Paris Las Vegas and Planet Hollywood Resort. Vici and Caesars had agreed in June to the sale, concurrent with a $400 million mortgage on the Caesars Forum convention center.
Total revenue for the company was $339.7 million, up 52.6 percent compared with the same period last year.
Net income in the third quarter was $396.2 million, compared with $146.5 million during the same time last year.
Shares of VICI, traded on the New York Stock Exchange, gained 2.26 percent in value to $23.05 as of 9:15 a.m.
Contact Mike Shoro at [email protected] or 702-387-5290. Follow @mike_shoro on Twitter.
Vici Properties Inc.
Third-quarter revenue and earnings for Las Vegas-based Vici Properties Inc., a Caesars Entertainment Inc.-affiliated real estate investment trust that serves as landlord for Harrah’s and Caesars Palace, among others. (NYSE: VICI)
Q3 2020: $339.7 million
Q3 2019: $222.5 million
Change: 52.6 percent
Q3 2020: $396.2 million
Q3 2019: $146.5 million
Earnings per share
Q3 2020: $0.74
Q3 2019: $0.31