MGM Growth Properties LLC Class A common shares representing limited liability company interests

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the V-CHIP Properties' fourth quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded today, February 24, 2022. I would now turn the conference over to Samantha Gallagher, General Counsel with V-CHIP Properties.

Thank you, operator, and good morning. Everyone should have access to the company's fourth quarter 2021 earnings release and supplemental information. The release and supplemental information can be found in the investor section of the VG Properties website at www.vgproperties.com. Some of our comments today will be forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are usually identified by the use of words such as will, believe, expect, should, guidance, intend, outlook, projects, or other similar phrases are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Therefore, you should exercise caution in interpreting and relying on them. I refer you to the company's SEC filings for more detailed discussion of the risks that could impact future operating results and financial conditions. During the call, we will discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measure is available on our website in our fourth quarter 2021 earnings release and our supplemental information. For additional information with respect to non-GAAP measures of certain tenants and or counterparties described during the call, please refer to the respective company's public filings with the SEC. Hosting the call today, we have Ed Petoniak, Chief Executive Officer, John Payne, President and Chief Operating Officer, David Kieske, Chief Financial Officer, Gabe Wasserman, Chief Accounting Officer, and Danny Beloy, Vice President of Finance. Ed and team will provide some opening remarks And then we will open the call to questions. With that, I'll turn the call over to Ed.

Thank you, Samantha. And good morning, everyone. Before I start, let me just say on behalf of Vici that our hearts very much go out this morning to the people of Ukraine. Today, I want to begin the call by addressing two topics. Vici's growth and total return over our first four years and our closing of our Venetian acquisition, and what it signifies about Vichy and our asset class. I'll then turn the call over to John, who will talk about our ongoing growth initiatives, and to David, who will talk about our 2021 results and our financing activities. The year we just concluded, 2021, constituted Vichy's fourth full year of operation and growth. If measured from our emergence date in October 2017, a bit more than four years ago, we've accomplished the following. We have announced $29 billion of acquisitions, establishing Vici as one of the most dynamic growth platforms in American REIT management. We have raised more than $12 billion of common equity, more than any other REIT in America over that period. Pro forma for our announced acquisitions, We will have grown our portfolio NOI by more than four times. We have lowered our leverage from 8.5 times adjusted EBITDA at emergence to 3.1 times at the end of 2021. And moreover, transformed the right side of our balance sheet from entirely secured to substantially unsecured debt. And by transforming the magnitude and composition of our debt, we have put ourselves, we believe, on the cusp of investment grade ratings. We've demonstrated the resilience of our assets and of our tenants through 100% on-time cash rent collection throughout the COVID-19 pandemic to date. Most importantly, for V2 stockholders, we generated from October 18, 2017 through December 31, 2021, a total return of 100.5%. This compares to the S&P 500 total return of 100.7% over that period, and a total return for the RMZ of 58.9%, meaning Vici outperformed the RMZ over that period by 41.6 percentage points. Here's a simpler way of looking at it. A dollar invested into Vici at the beginning of that period became $2. A dollar invested into the RMZ over the same period became $1.59. An integral part of Vici's superior total return has been Vici's dividend growth over the period. with aggregate dividend per share growth of 37.1% since our first full quarter dividend payment in Q2 2018. We're proud of the value we've created over our first four years, but here's what we're really excited about today. We just closed yesterday on the acquisition of one of the most magnificent Class A assets in American commercial real estate, the Venetian. Let me reiterate the features we cited when we announced the Venetian transaction nearly a year ago. The Venetian is the single largest hotel complex in America with nearly 7,100 rooms. The Venetian is the largest private sector meeting convention trade show facility in America. At 13 million square feet of Class A quality, find me another building in America with more marble, we have bought the Venetian at a price per square foot of approximately $300, 82 acres of land included, an estimated 62% discount replacement cost. When we announced the Venetian acquisition in early March 2021, the COVID-19 pandemic was still heavily and negatively impacting Las Vegas visitation and resort performance. Apollo, our new Venetian operating partner, and Vichy were both mindful of that, and in a period when most potential Venetian buyers were not willing or able to come out into the heavy weather. Vici and Apollo were able to craft a transaction that protected against continuing uncertainty, but was fundamentally based in a belief that Las Vegas and, moreover, the Venetian would eventually return to 2019 levels of performance. What Vici and Apollo did not assume when we announced this transaction in March 2021 is that Las Vegas and the Venetian Wood, over the ensuing 12 months, staged a roaring comeback, achieving run rate profitability levels that are beyond 2019. Over the last 12 months, Rob Goldstein and Patrick Dumont's team at Las Vegas Sands, led by George Marketonis, have done a magnificent job of managing the Venetian. As LBS reported on January 26th, the Venetian produced these eye-popping performance figures in Q4 2021. 100% occupancy of the Venetian's nearly 7,100 rooms and doing so without the full return of meeting convention trade show business. For the fourth quarter, the Venetian generated $154 million of adjusted property EBITDA at a margin of 34.5%. This amount of EBITDA annualized would mean over $600 million of run rate EBITDA before rent or nearly 2.5 times coverage of our initial Venetian annual rent of $250 million. As for value, I just want to remind everyone that we have acquired the Venetian, again, one of the most magnificent and majestic Class A assets in American commercial real estate at a cap rate of 6.25%. which we believe makes this one of the most compelling Class A single asset transactions in American REIT management in recent years. And if it isn't, somebody needs to tell me what topped it. And here, as much work as I put into preparing these remarks, I actually, I have to quote one of you who posted last night this statement, which I think says better than anything I've said, what we did in buying the Venetian. To quote, Simply put, Vici got a pretty sweet deal. By looking past the short-term disruption in Las Vegas created by COVID, Vici was able to get one of the most iconic real estate assets in the country for a cap rate that today couldn't even buy you a well-located dollar general. Finally, not only did we buy Venetian at a 6.25% cap rate, we have leased the Class A real estate of the Venetian to Apollo on a triple net basis with the superior economic transparency and integrity that the triple net lease model generally provides. And that highlights the final point I want to make about our first four years at Vichy. Over this period, one can say that we have brought gaming real estate into the triple net lease sector. But I think what's more important is that we have brought the superiority of the triple net lease model to Class A real estate. Triple net real estate is sometimes criticized for being commodity real estate in low barrier to entry locations bought at a premium to replacement cost. Here's what we've done in Fiji in our first four years in real estate investment terms. We've built America's biggest and best portfolio of differentiated non-commodity class A experiential real estate in high barrier to entry locations bought at substantial discounts to replacement costs. And here may be the most important portfolio attribute of all. Our real estate is occupied by, we believe, the best experiential operators in the world as evidenced by their market-leading resilience during the darkest days of the COVID-19 pandemic and their market-leading recovery to unprecedented levels of profitability. Thanks for bearing with me while I share my excitement for what we've done at Beachy. And now I'll turn the call over to John Payne, who will share our excitement over what we're doing to continue to grow Beachy. John?