VICI Properties Inc. Completes Acquisition of JACK Cleveland Casino and JACK Thistledown Racino and Lease to JACK Entertainment

VICI Properties Inc. (NYSE: VICI) (“VICI Properties” or the “Company”), an experiential real estate investment trust, today announced it has completed the previously announced transaction to acquire 100% of the membership interests of two subsidiaries of JACK Ohio LLC (“JACK Entertainment”) that own the casino-entitled land and real estate and related assets of JACK Cleveland Casino, located in downtown Cleveland, Ohio, and the racing and video lottery-authorized land and real estate and related assets of JACK Thistledown Racino, located approximately 10 miles southeast of downtown Cleveland in the city of North Randall, Ohio, for an aggregate of approximately $843.3 million in cash. The Company financed the transaction with cash on hand.

Simultaneous with the closing of the transaction, the Company entered into a master triple-net lease agreement with subsidiaries of JACK Entertainment related to the assets. The lease, which commences as of today, has an initial total annual rent of $65.9 million and an initial term of 15 years with four 5-year tenant renewal options. The tenant’s obligations under the lease will be guaranteed by Rock Ohio Ventures LLC. The Company also closed on a $50 million loan to a subsidiary of JACK Entertainment, which bears interest at a rate of 9.0% per annum and is secured by certain real estate assets of Rock Ohio Ventures LLC.

John Payne, President and Chief Operating Officer of VICI Properties said, “We are thrilled to close the transaction with JACK Entertainment, adding our fifth tenant to our portfolio and increasing our exposure to the limited license state of Ohio, which continues to be one of the healthiest gaming markets across the country. This acquisition adds two new, high-quality assets to our portfolio and represents our ability to creatively structure transactions that meet the needs of our tenants while creating value for our shareholders.”

JACK Cleveland Casino opened in May 2012 in the historic Higbee Building in downtown Cleveland, Ohio. The property features approximately 96,000 square feet of gaming space, 1,300 gaming machines, over 120 table games and eight food and beverage outlets. The property is connected to the 205-key Ritz-Carlton and 440-key Renaissance hotels in downtown Cleveland. JACK Thistledown Racino opened in April 2013 in North Randall, Ohio and is the leading thoroughbred racino in the Cleveland MSA. The property is situated on 129 acres and features approximately 57,000 square feet of gaming space, 1,459 gaming machines and six food and beverage outlets.