VICI Properties Inc. (NYSE:VICI) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 10:00 am ET
Good day, ladies and gentlemen, thank you for standing by. Welcome to the VICI Properties Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded today, July 30, 2020.
I would now like to turn the call over to Samantha Gallagher, General Counsel with VICI Properties.
Thank you, operator, and good morning. Everyone should have access to the company's second quarter 2020 earnings release and supplemental information. The release and supplemental information can be found in the Investors section of the VICI Properties website at www.viciproperties.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, intend, project 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 a more detailed discussion of the risks that could impact future operating results and financial condition. 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 in our second quarter 2020 earnings release and our supplemental information. Hosting the call today, we have Ed Pitoniak, Chief Executive Officer; John Payne, President and Chief Operating Officer; David Kieske, Chief Financial Officer; and Gabe Wasserman, Chief Accounting Officer. 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.
Edward B. Pitoniak
Thank you, Samantha. Good morning, everyone, and thanks for joining us. Here's what remains foremost for us at this time. We continue to hope that all our stakeholders are weathering this COVID-19 crisis as best as can be. We held our last earnings call on Thursday, May 1, and in my opening remarks, I had focused on what, because of COVID-19, we did not know with any certainty at the time. We did not know when our assets would reopen; what the recovery pace of our tenants' businesses would be; when exactly our $3.2 billion transaction with Eldorado/Caesars would close; finally, when VICI would be able to return to an offensive portfolio growth strategy. Here today, July 30, we now know four key facts.
Number one, virtually all of our assets have reopened. Number two, our operators have seen strong operating recovery in our regional assets. And through the end of June, we're seeing improving results at our two Las Vegas assets. Number three, the Eldorado/Caesars merger closed on July 20, and our $3.2 billion portion of that overall transaction will produce annual incremental rent of $253 million at a 7.8% cap