VICI PROPERTIES INC. ANNUAL REPORT 2019 1t CAESARS PALACE LAS VEGAS, NV HARVEY’S LAKE TAHOE STATELINE, NV MARGARITAVILLE BOSSIER CITY BOSSIER CITY, LA HARRAH’S LAS VEGAS LAS VEGAS, NV HORSESHOE COUNCIL BLUFFS COUNCIL BLUFFS, IA CASCATA GOLF COURSE BOULDER CITY, NV Dear VICI Stockholders, From VICI’s earliest days, we’ve focused relentlessly on the methods by which we will manage and grow your REIT. Taking advantage of our collective REIT experience as a management team and as a Board of Directors, we’ve attacked the following questions with as much energy and rigor as we can manage: 1. What’s the character of the culture out of which a great REIT grows? How do we attract and retain the best people, on both our Board and our management team, so we can live up to what we believe is axiomatic in real estate investment management: “the best people plus the lowest cost of capital wins”? 2. What are the partnership principles and methods that build and sustain a great REIT? How can we best implement those principles collaboratively, with our transaction partners, advisory partners, capital partners, both equity and debt, and our long-term operating partners and tenants? We’ve focused relentlessly on these questions because we believe finding the right answers to these questions is key to instilling and maintaining the right methods for managing, governing and growing VICI into the future. We focus intensely on our methods—or our means—because we fundamentally believe that the scalability of our REIT management and governance methods ultimately drives the scalability of our REIT results—or our ends. Looking back at 2019, our achievements were of a magnitude matched by very few other American REITs. We believe we had one of the most productive and value-creating years of any REIT in recent history. We’re proud of our achievements. But we’re even more proud that those outcomes are the result of the management team and the management method that we’ve been building since VICI Day 1. Here’s the essence of our strategic method: growing relationships. It is as simple as that. If we grow the right relationships in the right way, we will successfully grow and sustain the value of the REIT in the right way. The right way comes down to growing and constantly bettering our business by growing new relationships with new partners and sustaining and broadening mutually beneficial relationships with existing partners. These key partnerships include: 1. Our People: In 2019, our second full year of operation, VICI was one of only eight American REITs to receive certification as a Great Place to Work®. We are using the Great Places to Work® program to monitor and improve the experience of our people, because VICI’s success depends on the unceasing energy and engagement of our people. 2. Our Gaming Partners: In 2019, we expanded and improved our portfolio by establishing new relationships with operating partners in Reno, Nevada (Eldorado Resorts, Inc. (“Eldorado”)), Hollywood, Florida (Hard Rock), Vienna, Austria (Century Casinos, Inc.) and Detroit, Michigan (JACK Entertainment). In doing so, we added to our existing strong relationships with great partners in Las Vegas, Nevada (Caesars Entertainment Corporation) and Wyomissing, Pennsylvania (Penn National Gaming, Inc.). 3. Our Equity Partners: In 2019, we bettered our capital structure by growing our relationships with the equity investment community. As of the end of the year, we were the most owned Triple Net REIT by America’s dedicated REIT investment managers, measured both as a percentage of market capitalization and in absolute dollars. We were also the number one aggregate Triple Net REIT holding of Europe’s top real estate investors as of the end of the year. 4. Our Credit Partners: In late 2019 and early 2020, we further fortified our capital structure by initiating and quickly expanding our relationships within the fixed-income community, raising nearly $5 billion of unsecured debt at some of the best pricing achieved in recent history by such grade of credit. Through those financings, we redeemed in full our secured second lien debt and spread our debt maturity ladder more evenly across the next decade. We were able to achieve these goals, in part, because we were recognized for our stated ambition to become an investment-grade credit. 5. Our Learning Partners—Gaming: It is through our relationships with great operators and knowledgeable advisors that we learn more about the gaming marketplaces and stay current on broader trends and developments, both in those markets where we already own gaming real estate and those in which we may potentially acquire gaming real estate. 6. Our Potential New Sector Partners: It is also by growing relationships with operators and asset owners in other experiential sectors that we are learning and will continue to learn about these other sectors—learning that will determine if, when, with whom and how we will invest in sectors beyond gaming. This fundamental strategic method—growing our REIT and our value by growing our relationships with valuable partners—sounds simple and basic. And it is. At VICI, we are big believers in the power of the simple and basic to create long-term value. 2019 Growth & Portfolio Management Activities To sum up 2019, we led the Gaming REIT sector in acquisition activity. Indeed, we were the only Gaming REIT to announce any arms-length transactions in 2019. In total, we announced $4.9 billion of transactions, across regional and Las Vegas assets, at a blended 7.9% cap rate. Including the impact of our pending $3.2 billion transaction with Eldorado, which we announced in June 2019 and expect to close in the first half of 2020, we increased our annualized rent by approximately 45%, doubled our roster of best-in-class tenants and demonstrated consistent accretive acquisition activity for the third consecutive year (and during our third year in existence). During the fourth quarter of 2019, we closed the acquisition of three regional properties with Century Casinos. This $278 million transaction added $25 million of annual rent under a master lease, representing an attractive 9.0% cap rate. This transaction has important strategic significance in that it creates a new partnership with Century Casinos, an expert operator of small to mid-sized assets with the ambition to grow their U.S. gaming platform and demonstrates that we can further diversify through partnerships with operators of all sizes. Also in the fourth quarter of 2019, we announced our acquisition of JACK Cleveland Casino and JACK Thistledown Racino in a sale-leaseback transaction with JACK Entertainment. We subsequently closed on this transaction in January 2020, acquiring both properties for a total of $843 million, adding $65.9 million of annual rent to our portfolio through a master lease. This acquisition was consummated at an attractive 7.8% cap rate for urban real estate in Ohio, one of the fastest growing regional markets in the country. We have also worked diligently to secure an embedded growth pipeline intended to ensure that we maintain visible, long-term growth. Upon the closing of the Eldorado transaction later this year, our embedded pipeline will include two right of first refusal (“ROFR”) opportunities on Las Vegas Strip assets, a put/call option on two high-quality assets in the growing Indianapolis gaming market, a put/call option on the world-class Caesars Forum Convention Center in Las Vegas and an additional ROFR on an urban-core casino in Baltimore, Maryland. 2 2019 Balance Sheet Activities Since our emergence in October 2017, we have brought relentless focus to ensuring that we have a capital structure designed to weather all cycles and provide the safety and protection that our partners and investors expect. • During 2019, and into the first part of 2020, we continued to transform our balance sheet through the following disciplined capital allocation. In June 2019, we raised $2.4 billion of equity through the largest REIT primary share offering to date, fully funding all of the equity required for the Eldorado transaction and the JACK Cleveland/Thistledown transaction. • In March 2019, we efficiently raised $128 million of net proceeds through our At-the-Market (“ATM”) offering program. In early 2020, we opportunistically raised additional net proceeds of $200 million through the ATM program to ensure funding for our transaction pipeline. • In May 2019, we upsized our line of credit by $600 million, increasing the total capacity to $1.0 billion, enhancing our liquidity profile and extending the maturity from 2022 out to 2024. • In 2019 and early 2020, we significantly reduced our debt cost and improved our maturity ladder through the following initiatives: o In November 2019, we executed our inaugural unsecured notes offering with an upsized offering of $2.25 billion, comprised of $1.250 billion of 7-year notes at 4.25% and $1.0 billion of 10-year notes at 4.625%. The proceeds from this offering were used to retire the secured Caesars Palace Las Vegas CMBS debt, where we replaced a stand-alone secured mortgage that carried a rate of 4.36% with a blended rate of 4.32% on the unsecured notes that were used to retire this secured debt. o In February 2020, we closed on a subsequent $2.5 billion unsecured notes offering, which was comprised of $750 million of 5-year notes at 3.5%, $750 million of 7-year notes at 3.825% and $1.0 billion of 10.5-year notes at 4.125%. A portion of these proceeds were used to redeem in full the outstanding $498.5 million in aggregate principal amount of 8.0% second lien secured notes and the remaining $2.0 billion of the net proceeds were put into escrow pending the consummation of the Eldorado transaction.