Rent Guarantee – Now Wash Your Hands http://nowwashyourhands.com/ Fri, 13 May 2022 21:30:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://nowwashyourhands.com/wp-content/uploads/2021/07/icon-4.png Rent Guarantee – Now Wash Your Hands http://nowwashyourhands.com/ 32 32 Parks face maintenance staff shortage ahead of summer https://nowwashyourhands.com/parks-face-maintenance-staff-shortage-ahead-of-summer/ Fri, 13 May 2022 21:30:00 +0000 https://nowwashyourhands.com/parks-face-maintenance-staff-shortage-ahead-of-summer/ Last summer, city parks were teeming with maintenance crews as New Yorkers flocked to green spaces after a long pandemic winter. The Parks Department was able to hire about 3,500 workers, their salaries paid with a one-time infusion of federal COVID-19 relief funds, to pick up litter and protect greenery amid another spring awakening under […]]]>

Last summer, city parks were teeming with maintenance crews as New Yorkers flocked to green spaces after a long pandemic winter.

The Parks Department was able to hire about 3,500 workers, their salaries paid with a one-time infusion of federal COVID-19 relief funds, to pick up litter and protect greenery amid another spring awakening under the City program. Cleanup Body.

Now, 1,800 federally funded workers remain, after about half of the original team left their jobs.

With fewer workers, the department projects that at the July peak of the peak season for park use — with lawns, trails, beaches and pools in daily use — there will be 259 fewer cleaning workers. than last year.

Additionally, by the end of the season, without additional funding, these workers will also face a severe bottleneck to staying employed: only 400 of the maintenance workers could get permanent jobs in the department.

In the final weeks of budget negotiations, city council members and union leaders are trying to urge Mayor Eric Adams’ administration to add millions more in funding to cover maintenance work.

They’re pushing him to honor a campaign promise to fund the parks department 1% of the city’s total budget, which would nearly double his last $600 million proposal, or $20 million less than the city’s spending. ‘last year. Adams called the figure a “down payment” on larger funding.

Parks advocates say that without full funding, the relative decline in park conservation will hit marginalized neighborhoods the hardest.

“There are huge inequities in green space and the upkeep of green space in our city,” Councilman Shekar Krishnan, who chairs the parks committee, said Thursday. “We need to see a continuation of all the positions we’ve had so far.”

At a city council budget hearing on Friday, Krishnan and other members questioned Parks Department officials about maintenance levels and job opportunities for cleaners. The hearing comes about six weeks after the deadline for passing the city’s budget.

Overall, the city says it expects to have 4,431 maintenance workers at the height of the summer season, up from 4,690 last year.

That represents a “minimal decrease” overall, department spokeswoman Megan Moriarty said in an emailed statement. She added that Adams’ latest spending plan adds new funding to support the 400 permanent, year-round maintenance positions that Cleanup Corps workers can apply for.

“This will allow for a more stable workforce with the ability for more staff to be dedicated to a single location rather than relying on mobile teams,” Moriarty said.

Still, the projected drop in maintenance crews will hit some boroughs harder than others, according to figures provided by the parks department.

Last July, the Bronx had 1,047 workers. This year, it will see a drop of 225 positions, to 822.

Brooklyn sees its total number of maintenance workers increase by 10, while Manhattan will have two more.

The department said it allocates maintenance crews based on both foot traffic and a list of city neighborhoods that have suffered the greatest impact from the pandemic.

Without additional funding, according to the Parks Department, the disparity in cleanup crews from last year will only grow in the fall, with headcount down nearly 900 positions in November and December from last year. same period in 2021.

Still, Sue Donoghue, the parks commissioner, told Friday’s hearing that the loss of hundreds of workers will not affect the conditions of the city’s green spaces.

“We don’t anticipate any negative impact,” Donoghue said. “Although there is no doubt that these workers are important to us.”

Adam Ganser, executive director of advocacy group New Yorkers For Parks, said in an interview ahead of the hearing that rising and falling staff numbers can make residents uncertain about the attention being given to their green spaces and impose unexpected charges. workers.

“That yo-yo effect really puts a strain on the park department staff themselves,” Ganser said. “If our parks look like they’re in terrible shape, that really reflects badly on the city as a whole, and people are starting to feel insecure about their lives in the parks.”

The workers facing job loss are the lowest paid in the union that represents them, Local 983, according to union president Joe Puleo. Many workers, who earn minimum wage, have turned to jobs after being laid off during the pandemic.

“These are the people who need these jobs the most,” Puleo said. “It’s the difference between paying their rent and not paying their rent, or getting food.”

Puleo estimated the city could hire the entire Cleanup Corps group for around $40 million.

“As far as the city budget goes, it would be like a penny in your pocket,” he said.

These job losses will not be complete until the end of the summer season, as the Parks Department paid to extend its contracts after April when federal funds ran out, until September 15, when the high season ended. season.

Park Department chief financial officer David Stark told the council hearing that only a small portion of seasonal hires compete for full-time jobs, and the Cleanup Corps is seeing steady attrition of around 100 people per month. . Still, he pointed out that there was still no guarantee of continued work for most Cleanup Corps workers.

“There is no straight transition from a seasonal line to a full-time line without an interview process,” Stark said during the hearing.

Still, he said, competition for open permanent positions will be tough.

“We don’t want people leaving who want to stay in the parks,” Stark said. “But at some point there will be limits.”

Stark said workers who don’t get roles will be eligible for department-run training programs that aim to place workers in full-time positions with the city’s public housing agency or schools, often working in the restaurant business.

However, giving these workers full-time positions in the park service would put them on track to become park supervisors after several years and several exams — roles that pay an annual salary of around $100,000.

“There is a serious disparity there,” Krishnan told the hearing. “It will have a direct impact on the workers who depend on these positions, on their families.”

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Ranking Every Spider-Man Movie’s Opening Scene From Worst To Best https://nowwashyourhands.com/ranking-every-spider-man-movies-opening-scene-from-worst-to-best/ Wed, 11 May 2022 20:23:00 +0000 https://nowwashyourhands.com/ranking-every-spider-man-movies-opening-scene-from-worst-to-best/ The opening scene of 2014’s “The Amazing Spider-Man 2” takes us back to the same flashback that opens its 2012 predecessor, only this time we see more of it and it’s told from a different perspective. While the first film’s flashback is told through the eyes of young Peter Parker, this time we see it […]]]>

The opening scene of 2014’s “The Amazing Spider-Man 2” takes us back to the same flashback that opens its 2012 predecessor, only this time we see more of it and it’s told from a different perspective. While the first film’s flashback is told through the eyes of young Peter Parker, this time we see it through his father Richard (Campbell Scott). We see Richard destroy his experiments, we watch him once more as he and Mary (Embeth Davidtz) leave their son with his aunt and uncle, and finally see the couple begin what they believe will be a long life of watching. over their shoulders, but which turns out to be much shorter.

The opening scene of “The Amazing Spider-Man 2” isn’t particularly bad, but much of it feels pointless. That the Parkers left their son with May (Sally Field), ran away, and didn’t survive is already established in the first film. Seeing their death unfold doesn’t end up feeling very important. As suspenseful as the final struggle between the assassin and his victims is, it also feels like a mess.

Not to mention that – while you might think it’s silly to comment on what is and isn’t realistic in a superhero movie – the idea that a plane in free fall would have enough internet connection. stable for Richard to continue downloading his data. is just a little too silly.

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Yes, an economic recession is coming – 5 things work must guarantee us now https://nowwashyourhands.com/yes-an-economic-recession-is-coming-5-things-work-must-guarantee-us-now/ Sun, 08 May 2022 08:32:10 +0000 https://nowwashyourhands.com/yes-an-economic-recession-is-coming-5-things-work-must-guarantee-us-now/ It seems that some mainstream media are realizing that economic carnage is looming. He is. Most commentators failed to appreciate the magnitude of Grant Robertson’s lifting of the debt ceiling last week. Taking Crown assets like the NZ Super Fund and liabilities like debt held by Kainga Ora, Grant was able to raise our debt […]]]>

It seems that some mainstream media are realizing that economic carnage is looming.

He is.

Most commentators failed to appreciate the magnitude of Grant Robertson’s lifting of the debt ceiling last week.

Taking Crown assets like the NZ Super Fund and liabilities like debt held by Kainga Ora, Grant was able to raise our debt ceiling.

By simply allowing our debt ceiling to rise, Grant is able to continue government spending without raising taxes while keeping rainy day cash on hand.

And that is what most commentators miss.

Robertson is one of the most cautious finance ministers Labor has ever had, always tossing left-wing ideas to keep left-wing populist economics from spooking the Treasury.

His pact with the Wellington bureaucracy is that he is the trusted pair of hands that will never allow neoliberalism to be challenged beyond the broadest measures (the health budget).

TDB recommends NewzEngine.com

Grant looks like he’s loosening the purse strings but has no intention of spending that purse and that’s what should make everyone nervous.

Grant is planning a higher debt ceiling because he is smart enough to see the dangers looming on the horizon.

Putin is just getting started.

The recession in America and Europe is just beginning.

China is becoming increasingly unstable as the weeks go by.

Geopolitical crisis + economic collapse + catastrophic climate change = impending collapse.

Grant raises the debt ceiling so he won’t spend more, he raises it because he knows what’s coming next.

When a politician as cautious as Grant opens the checkbook, we should all be very worried.

With the impending economic implosion, we need clear guidelines.

1: No bank bailouts except for KiwiBank – These motherfuckers brought us here, fuck ’em a thousand times if it all goes wrong and they need a bailout! The first rule is not to bail out the banks!

2: Help first-time homeowners into property – Kiwibank should be ready to step in and remove any homeowners coming into other banks’ property to prevent mortgage sales, but to hell with the speculators. They should all be forced to sell.

3: Include tax debt, student debt and beneficiary debt to be written off if bankruptcy is required.

4: No corporate bailouts. NOTHING!

5: Continue to fund universal services that allow people to save real money every week: free public transport, free school breakfasts and lunches, role of 30% of stakeholders in destroying the supermarket duopoly to make lower prices alongside the GST on food and vegetables.

I swear on little baby Jesus, I’m gonna lose my shit if Grant starts bailing out banks, speculators and corporations while ordinary people suffer.

The left needs to be nicer to individuals and crueler to corporations.

Without stressing it too much…

Having more and more independent opinions in a mainstream media environment that mostly echo each other has become more important than ever, so if you value having an independent voice, please donate here.

If you can’t contribute but would like to help, feel free to share our blogs on social media.

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CHUY’S HOLDINGS, INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://nowwashyourhands.com/chuys-holdings-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Fri, 06 May 2022 20:08:10 +0000 https://nowwashyourhands.com/chuys-holdings-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Unless otherwise indicated, or the context otherwise requires, references in this report to “Chuy’s”, “our company”, “the company”, “we”, “us” and “our” refer to Chuy’s Holdings, Inc. with its subsidiaries. The following discussion summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for […]]]>

Unless otherwise indicated, or the context otherwise requires, references in this report to “Chuy’s”, “our company”, “the company”, “we”, “us” and “our” refer to Chuy’s Holdings, Inc. with its subsidiaries.


The following discussion summarizes the significant factors affecting the
consolidated operating results, financial condition, liquidity and cash flows of
our Company as of and for the periods presented below. The following discussion
and analysis should be read in conjunction with our Annual Report on Form 10-K
for the year ended December 26, 2021 (our "Annual Report") and the unaudited
condensed consolidated financial statements and the accompanying notes thereto
included herein.

Overview

We are a growing full-service restaurant concept offering a distinct menu of
authentic, freshly-prepared Mexican and Tex-Mex inspired food. We were founded
in Austin, Texas in 1982 and, as of March 27, 2022, we operated 96 restaurants
across 17 states.

We are committed to providing value to our customers through offering generous
portions of made-from-scratch, flavorful Mexican and Tex-Mex inspired dishes. We
also offer a full-service bar in all of our restaurants providing our customers
a wide variety of beverage offerings. We believe the Chuy's culture is one of
our most valuable assets, and we are committed to preserving and continually
investing in our culture and our customers' restaurant experience.

Our restaurants have a common décor, but we believe each location is unique in
format, offering an "unchained" look and feel, as expressed by our motto "If
you've seen one Chuy's, you've seen one Chuy's!" We believe our restaurants have
an upbeat, funky, eclectic, somewhat irreverent atmosphere while still
maintaining a family-friendly environment.

Performance indicators

We use the following performance indicators to assess our performance:


•Number of Restaurant Openings. Number of restaurant openings reflects the
number of restaurants opened during a particular fiscal period. For restaurant
openings, we incur pre-opening costs, which are defined below, before the
restaurant opens. Typically, new restaurants open with an initial start-up
period of higher than normalized sales volumes, which decrease to a steady level
approximately six to twelve months after opening. However, operating costs
during this initial six to twelve month period are also higher than normal,
resulting in restaurant operating margins that are generally lower during the
start-up period of operation and increase to a steady level approximately nine
to twelve months after opening.

•Comparable Restaurant Sales. We consider a restaurant to be comparable in the
first full quarter following the 18th month of operations. Changes in comparable
restaurant sales reflect changes in sales for the comparable group of
restaurants over a specified period of time. Changes in comparable sales reflect
changes in customer count trends as well as changes in average check. Our
comparable restaurant base consisted of 92 restaurants at March 27, 2022.

•Comparable Restaurant Sales as compared to 2019. Changes in comparable
restaurant sales reflect changes in sales for the comparable group of
restaurants over a specified period of time as compared to that time in fiscal
year 2019. The comparable group of restaurants include the restaurants that were
in the comparable base as of the end of fiscal year 2019. Our comparable
restaurant base consisted of 81 restaurants at March 27, 2022.

•Average Check. Average check is calculated by dividing revenue by total entrées
sold for a given time period. Average check reflects menu price increases as
well as changes in menu mix. Our management team uses this indicator to analyze
trends in customers' preferences, effectiveness of changes in menu and price
increases as well as per customer expenditures.

•Average Weekly Customers. Average weekly customers is measured by the number of
entrées sold per week. Our management team uses this metric to measure changes
in customer traffic.

•Average Unit Volume. Average unit volume consists of the average sales of our
comparable restaurants over a certain period of time. This measure is calculated
by dividing total comparable restaurant sales within a period of time by the
total number of comparable restaurants within the relevant period. This
indicator assists management in measuring changes in customer traffic, pricing
and development of our brand.

•Operating Margin. Operating margin represents income from operations as a
percentage of our revenue. By monitoring and controlling our operating margins,
we can gauge the overall profitability of our Company.

The following table presents the operating data for the periods indicated:


                                                          Thirteen Weeks 

Finished

                                                   March 27, 2022       March 28, 2021
Total open restaurants (at end of period)                    96            

93

Total comparable restaurants (at end of period)              92            

89

Average unit volumes (in thousands)               $       1,054        $   

950

Change in comparable restaurant sales(1)                   11.4  %         
    (3.2) %
Average check                                     $       17.71        $       17.15

(1) We consider a restaurant to be comparable to the first full quarter following the 18th month of operation. The change in same restaurant sales reflects the changes in the same restaurant group’s sales over a given period.

Our fiscal year

We operate on a 52- or 53-week fiscal year that ends on the last Sunday of the
calendar year. Each quarterly period has 13 weeks, except for a 53-week year
when the fourth quarter has 14 weeks. Our 2022 and 2021 fiscal years each
consists of 52 weeks.

Key financial definitions

Revenue. Revenue consists primarily of food and beverage sales and also includes sales of our t-shirts, sweatshirts and hats. Sales are presented net of discounts associated with each sale. Revenues in any given period are directly impacted by the number of weeks of operation in that period, the number of restaurants we operate and comparable restaurant sales growth.


Cost of sales. Cost of sales consists of food, beverage and merchandise related
costs. The components of cost of sales are variable in nature, change with sales
volume and are subject to increases or decreases based on fluctuations in
commodity costs.

Labor costs. Labor costs include restaurant management salaries, front and back of house hourly wages, restaurant manager bonus expenses, and payroll taxes.


Operating costs. Operating costs consist primarily of restaurant-related
operating expenses, such as supplies, utilities, repairs and maintenance, travel
cost, insurance, employee benefits, credit card fees, recruiting, delivery
service and security. These costs generally increase with sales volume but may
increase or decrease as a percentage of revenue.

Occupancy costs. Occupancy costs include rent charges, both fixed and variable,
as well as common area maintenance costs, property taxes, the amortization of
tenant allowances and the adjustment to straight-line rent. These costs are
generally fixed but a portion may vary with an increase in sales when the lease
contains percentage rent.

General and administrative expenses. General and administrative expenses include
costs associated with corporate and administrative functions that support our
operations, including senior and supervisory management and staff compensation
(including stock-based compensation) and benefits, travel, legal and
professional fees, information systems, corporate office rent and other related
corporate costs.

Marketing. Marketing costs include costs associated with our local restaurant
marketing programs, community service and sponsorship activities, our menus and
other promotional activities.

Restaurant pre-opening costs. Restaurant pre-opening costs consist of costs
incurred before opening a restaurant, including manager salaries, relocation
costs, supplies, recruiting expenses, initial new market public relations costs,
pre-opening activities, employee payroll and related training costs for new
employees. Restaurant pre-opening costs also include rent recorded during the
period between date of possession and the restaurant opening date.

Impairment, closed restaurant and other costs. Impairment costs include
impairment of long-lived assets associated with restaurants where the carrying
amount of the asset is not recoverable and exceeds the fair value of the asset.
Closed restaurant costs consist of any costs associated with the closure of a
restaurant such as lease termination costs, severance benefits, other
miscellaneous closing costs as well as costs to maintain these closed
restaurants through the lease termination date such as occupancy costs,
including rent payments less sublease income, if any, and insurance and utility
costs. Other costs consist of closed restaurant lease termination fees.

Depreciation. Amortization primarily includes amortization of capital assets, including equipment and leasehold improvements.

Interest charges. Interest expense consists primarily of interest on our outstanding debt, fees related to uncommitted credit facilities and the amortization of our debt issuance costs, less interest income, if any.

Operating results

Potential Fluctuations in Quarterly Results and Seasonality

Our quarterly operating results may fluctuate significantly as a result of a
variety of factors, including the timing of new restaurant openings and related
expenses, profitability of new restaurants, weather, increases or decreases in
comparable restaurant sales, general economic conditions, consumer confidence in
the economy, changes in consumer preferences, competitive factors, changes in
food costs, changes in labor costs and changes in gas prices. In the past, we
have experienced significant variability in restaurant pre-opening costs from
quarter to quarter primarily due to the timing of restaurant openings. We
typically incur restaurant pre-opening costs in the five months preceding a new
restaurant opening. In addition, our experience to date has been that labor and
direct operating costs associated with a newly opened restaurant during the
first several months of operation are often materially greater than what will be
expected after that time, both in aggregate dollars and as a percentage of
restaurant sales. Accordingly, the number and timing of new restaurant openings
in any quarter has had, and is expected to continue to have, a significant
impact on quarterly restaurant pre-opening costs, labor and direct operating
costs.

Our business is also subject to fluctuations due to seasonality and adverse
weather. The spring and summer months have traditionally had higher sales volume
than other periods of the year. Timing of holidays, severe winter weather,
hurricanes, thunderstorms and similar conditions may impact restaurant unit
volumes in some of the markets where we operate and may have a greater impact
should they occur during our higher volume months. As a result of these and
other factors, our financial results for any given quarter may not be indicative
of the results that may be achieved for a full fiscal year.

Thirteen weeks over March 27, 2022 Compared to Thirteen Weeks Ended March 28, 2021

The following table presents, for the periods indicated, the condensed consolidated statement of income (in thousands):


                                                                                          Thirteen Weeks Ended
                                                                       % of             March 28,              % of                                     %
                                           March 27, 2022            Revenue               2021              Revenue            $ Change             Change
Revenue                                  $       100,486                100.0  %       $  87,710                100.0  %       $ 12,776                  14.6  %
Costs and expenses:
Cost of sales                                     26,243                 26.1             20,447                 23.3             5,796                  28.3
Labor                                             29,825                 29.7             24,829                 28.3             4,996                  20.1
Operating                                         16,230                 16.2             13,471                 15.4             2,759                  20.5
Occupancy                                          7,652                  7.6              7,239                  8.3               413                   5.7
General and administrative                         6,654                  6.6              6,848                  7.8              (194)                 (2.8)
Marketing                                          1,413                  1.4                977                  1.1               436                  44.6
Restaurant pre-opening                               125                  0.1                677                  0.8              (552)                (81.5)

Impairment, closed restaurant and other
costs                                              1,279                  1.3              2,344                  2.7            (1,065)                (45.4)

Depreciation                                       4,982                  4.9              4,918                  5.5                64                   1.3
Total costs and expenses                          94,403                 93.9             81,750                 93.2            12,653                  15.5
Income from operations                             6,083                  6.1              5,960                  6.8               123                   2.1
Interest expense, net                                 28                  0.1                 23                    -                 5                  21.7
Income before income taxes                         6,055                  6.0              5,937                  6.8               118                   2.0
Income tax expense (benefit)                         537                  0.5               (717)                (0.8)            1,254                (174.9)
Net income                               $         5,518                  5.5  %       $   6,654                  7.6  %       $ (1,136)                (17.1) %


Revenue. Revenue increased $12.8 million, or 14.6%, to $100.5 million for the
thirteen weeks ended March 27, 2022 from $87.7 million for the comparable period
in 2021. The increase was primarily related to growth in customer traffic as the
Company continued to relax indoor dining capacity restrictions throughout its
restaurants, as well as $3.1 million of incremental revenue from an additional
46 operating weeks provided by new restaurants opened during and subsequent to
the first quarter of 2021. For the first quarter of 2022, off-premise sales were
approximately 28% of total revenue compared to approximately 32% in the same
period last year.

Comparable restaurant sales increased 11.4% for the thirteen weeks ended
March 27, 2022 compared to the same period last year primarily driven by a 7.8%
increase in average weekly customers and a 3.6% increase in average check.
Comparable restaurant sales decreased 1.7% as compared to the same period in
fiscal 2019. The comparable restaurant sales as compared to

2019 were negatively impacted by the Omicron variant outbreak during January and
the first half of February of 2022 as well as an approximately 120 basis point
decrease due to the severe winter weather across most of the Central United
States.

Cost of sales. Cost of sales as a percentage of revenue increased to 26.1% in the thirteen weeks ended March 27, 2022 compared to 23.3% in the comparable period in 2021, mainly due to commodity inflation of around 18% with a substantial increase in the prices of beef and chicken as well as fresh produce, cheese and groceries, such as oil and flour.


Labor costs. Labor costs as a percentage of revenue increased to 29.7% during
the thirteen weeks ended March 27, 2022 from 28.3% during the comparable period
in 2021 largely as a result of hourly labor rate inflation of approximately 13%
at comparable restaurants as well as an incremental improvement in our hourly
staffing levels as compared to last year.

Operating costs. Operating costs as a percentage of revenue increased to 16.2%
during the thirteen weeks ended March 27, 2022 from 15.4% during the same period
in 2021 mainly as a result of higher restaurant repair and maintenance costs,
increase in delivery service charges, cost pressures on to-go supplies and
utility costs as well as higher credit card fees due to an increase in dine-in
transactions that have a higher transaction fee.

Occupancy costs. Occupancy costs as a percentage of revenue decreased to 7.6%
during the thirteen weeks ended March 27, 2022 from 8.3% during the comparable
period in 2021 primarily as a result of sales leverage on fixed occupancy
expenses, partially offset by higher percentage rent.

General and administrative expenses. General and administrative
expenses decreased to $6.7 million for the thirteen weeks ended March 27,
2022 as compared to $6.8 million for the same period in 2021. The decrease was
primarily driven by lower performance-based bonuses, partially offset by an
increase in management salaries and stock based compensation. As a percentage of
revenues, general and administrative expenses decreased to 6.6% in the first
quarter of 2022 from 7.8% in the first quarter of 2021.

Restaurant pre-opening costs. Restaurant pre-opening costs decreased to $0.1
million for the thirteen weeks ended March 27, 2022 as compared to $0.7 million
for the same period in 2021 due to the timing of new store openings.

Marketing. Marketing expense as a percentage of revenue increased to 1.4% during
the thirteen weeks ended March 27, 2022 as compared to 1.1% for the same period
in 2021 as the Company reinstated its digital advertising campaigns across the
nation.

Impairment, closed restaurant and other costs. Impairment, closed restaurant and
other costs decreased to $1.3 million during the thirteen weeks ended March 27,
2022 from $2.3 million during the comparable period in 2021. During the first
quarter of 2022, we recorded $1.3 million of closed restaurant costs such as
rent expense, utility and insurance among other costs required to maintain the
remaining closed locations. During the same period last year, we recorded $1.6
million of closed restaurant costs, a $0.5 million loss on lease termination of
two operating leases, and a $0.3 million non-cash impairment charge related to
their long-lived assets.

Depreciation. Depreciation expense increased to $5.0 million during the thirteen
weeks ended March 27, 2022 from $4.9 million recorded during the comparable
period in 2021 primarily due to an increase in depreciation associated with our
new restaurants.

Income tax expense (benefit). We recorded an income tax expense of $0.5 million
in the first quarter of 2022 compared to an income tax benefit of $0.7 million
during the comparable period in 2021. The increase in income tax expense was
primarily driven by a $1.3 million discrete tax benefit recorded during the
first quarter of 2021 related to stock based compensation. As of March 27, 2022,
the Company had a $5.0 million deferred tax asset, which management believes
will be fully realized, therefore, no valuation allowance is required at this
time.

In August 2020, the IRS issued a Notice of Proposed Adjustment to the Company
asserting that the tenant allowances paid under our operating leases should be
recorded as taxable income for years 2016 and prior. The Company disagrees with
the IRS's position and believes that it is more likely than not that the
Company's position will ultimately be sustained upon further examination,
including the resolution of the IRS's appeal or litigation processes, if any. As
a result, no further tax accrual was made. The Company estimates if the IRS's
position was upheld, the Company's tax liability associated with the IRS's
position could range between $0.5 million and $2.5 million.

Net revenue. Due to the above, the net profit was $5.5 million during the thirteen weeks ended March 27, 2022 compared to $6.7 million during the comparable period in 2021.

Liquidity


Our principal sources of cash are cash and cash equivalents, net cash provided
by operating activities, which includes tenant improvement allowances from our
landlords, and borrowings, if any, under our $35.0 million revolving credit
facility as further discussed in Note 5, Long-Term Debt. Consistent with many
other restaurant and retail store operations, we typically use operating lease
arrangements for our restaurants. From time to time, we may also purchase the
underlying land for

development. We believe that our operating lease arrangements provide
appropriate leverage of our capital structure in a financially efficient manner.
We may also from time to time sell equity or engage in other capital markets
transactions.

Our main requirements for liquidity are to support our working capital,
restaurant expansion plans, ongoing maintenance of our existing restaurants,
investment in infrastructure, obligations under our operating leases, interest
payments on our debt, if any, and to repurchase shares of our common stock
subject to market conditions. Repurchases of the Company's outstanding common
stock will be made in accordance with applicable laws and may be made at
management's discretion from time to time in the open market, through privately
negotiated transactions or otherwise, including pursuant to Rule 10b5-1 trading
plans. There is no guarantee as to the exact number of shares to be repurchased
by the Company. The timing and extent of repurchases will depend upon several
factors, including market and business conditions, regulatory requirements and
other corporate considerations, and repurchases may be discontinued at any time.

The Company repurchased 718,112 shares for approximately $19.7 million during
the first quarter of 2022. As of March 27, 2022, the Company had repurchased a
total of 983,044 shares and had $21.9 million remaining under its $50.0 million
repurchase program.

Our liquidity may be adversely affected by a number of factors, including a decrease in customer traffic or average check per customer due to changes in economic conditions, as described in Item 1A. “Risk Factors” of our annual report.

From March 27, 2022the Company was in a solid financial position with
$89.7 million in cash and cash equivalents, no debt and $35.0 million availability under its revolving credit facility.

Cash flow for the thirteen weeks ended March 27, 2022 and March 28, 2021

The following table summarizes the statement of cash flows (in thousands):

Thirteen weeks over

                                                                      March 27, 2022           March 28, 2021
Net cash provided by operating activities                            $     6,851             $        12,315
Net cash used in investing activities                                     (2,613)                     (1,719)
Net cash used in financing activities                                    (21,146)                       (155)
Net (decrease) increase in cash and cash equivalents                     (16,908)                     10,441
Cash and cash equivalents at beginning of year                           106,621                      86,817
Cash and cash equivalents at end of period                           $    89,713             $        97,258


Operating Activities. Net cash provided by operating activities decreased $5.4
million to $6.9 million for the thirteen weeks ended March 27, 2022 from $12.3
million during the comparable period in 2021. Our business is almost exclusively
a cash business. Almost all of our receipts come in the form of cash and cash
equivalents and a large majority of our expenditures are paid within a 30 day
period. The decrease in net cash provided by operating activities was mainly
attributable to $3.3 million decrease in accrued and other liabilities driven by
higher bonus payments this year as compared to fiscal 2021 as well as a $1.0
million lease incentive receivable recorded during the first quarter of 2022.

Investing Activities. Net cash used in investing activities increased $0.9
million to $2.6 million for the thirteen weeks ended March 27, 2022 from $1.7
million during the comparable period in 2021, mainly driven by a timing of our
new restaurant construction as compared to the same period last year.

Financing Activities. Net cash used by financing activities increased $20.9
million to $21.1 million for the thirteen weeks ended March 27, 2022 from $0.2
million during the comparable period in 2021 primarily due to a $19.7 million
increase in the repurchases of shares of common stock.

As of March 27, 2022, we had no other financing transactions, arrangements or
other relationships with any unconsolidated affiliates or related parties.
Additionally, we had no financing arrangements involving synthetic leases or
trading activities involving commodity contracts.

Capital resources

Long-term and short-term capital needs

There have been no material changes in our long-term or short-term capital requirements from what was previously disclosed in our annual report filed with the SECOND.


Contractual Obligations

There have been no material changes to our contractual obligations from what was previously disclosed in our annual report filed with the SECOND.

Off-balance sheet arrangements

From March 27, 2022we are not involved in any variable interest entity transactions and otherwise have no off-balance sheet arrangements.

Significant Accounting Policies and Estimates

There have been no material changes in significant accounting policies and estimates from what was previously disclosed in our annual report filed with the
SECOND.

Recent accounting pronouncements

For more information on new accounting pronouncements, see Note 2, Recent Accounting Pronouncements in the Notes to our Unaudited Condensed Consolidated Financial Statements.

Caution Regarding Forward-Looking Statements


Certain statements in this quarterly report on Form 10-Q that are not historical
facts are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements reflect the current
views of our senior management with respect to future events and our financial
performance. These statements include forward-looking statements with respect to
our business and industry in general. Statements that include the words
"expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may,"
"should," "anticipate" and similar statements of a future or forward looking
nature identify forward-looking statements for purposes of the federal
securities laws or otherwise. Forward-looking statements address matters that
involve risks and uncertainties. Accordingly, there are or will be important
factors that could cause our actual results to differ materially from those
indicated in these statements. We believe that these factors include, but are
not limited to, the following:

• the ultimate duration and severity of the COVID-19 pandemic and any new variants, and the effectiveness of measures taken, or measures that may be taken, by governmental authorities to contain the outbreak or address its impact;

•the impact of adverse economic factors, including inflation and the availability of credit, on our landlords and surrounding tenants;

•the success of our existing and new restaurants;

• our ability to identify suitable sites and to develop and expand our business;

• our ability to effectively manage our growth and the resulting changes in pre-opening costs;

•we operate most of our restaurants under long-term leases which we may not be able to renew and which we would be obligated to perform even if we closed our restaurants;

•changing economic conditions and consumer buying habits;

• damage to our reputation or lack of acceptance of our brand in existing or new markets;

•our expansion into markets that we do not know;

• economic and other trends and developments, including adverse weather conditions, in the local or regional areas in which our restaurants are located and more particularly in Texas where a large percentage of our restaurants are located;

•acts of violence or threats against our restaurants or the centers in which they are located;

•changes in food availability and costs;

• concerns about food safety and foodborne illness;

•increased competition in the restaurant industry and the segments in which we compete;

•the success of our marketing programs;

• the impact of new restaurant openings, including the effect on our existing restaurants when new restaurants open in the same markets and restaurant closures;

•the pressure on our infrastructure and resources caused by our growth;

•insufficiency of our insurance coverage and fluctuating insurance requirements and costs;

• the impact of security breaches of confidential customer information in connection with our electronic processing of credit and debit card transactions;

• inadequate protection of our intellectual property;

• failure of our computer system or breach of our network security;

•a major natural or man-made disaster;

•labour shortages and increases in our labor costs, including due to changes in government regulations;

•loss of key members of our management team;


•the impact of legislation and regulation regarding nutritional information and
new information or attitudes regarding diet and health or adverse opinions about
the health of consuming our menu offerings;

• the impact of federal, state and local laws and regulations, including with respect to liquor licensing and food service;

•the impact of litigation;

•the impact of impairments;

•the failure of our internal control over financial information;

• the impact of federal, state and local tax laws and the Internal Revenue Service’s disagreement with our tax position;

•the effect of changes in the accounting principles applicable to us;

•the impact of our indebtedness on our ability to invest in the ongoing needs of our business;

• our ability to obtain debt or other financing on favorable terms or not at all;

• volatility of our common stock price;

•the timing and amount of redemptions of our common stock;

• the impact of future sales of our common stock and any additional capital raised by us through the sale of our common stock or the granting of additional stock-based compensation;

• the impact of a rating of our shares by securities or industry analysts, the publication of negative research or reports, or the failure to publish reports on our activities;

•the effect of anti-takeover provisions in our charter documents and under
Delaware straight;

•the effect of our decision not to pay dividends for the foreseeable future;

•our ability to raise capital in the future; and

• other risks and uncertainties described from time to time in the Company’s annual report and other documents filed with the Security and Exchange Commission.

Although we believe that the expectations reflected in the forward-looking
statements are reasonable based on our current knowledge of our business and
operations, we cannot guarantee future results, levels of activity, performance
or achievements. The foregoing factors should not be construed as exhaustive and
should be read together with other cautionary statements included in this report
and in our Annual Report. If one or more of these or other risks or
uncertainties materialize, or if our underlying assumptions prove to be
incorrect, actual results may differ materially from what we anticipate. Any
forward-looking statements you read in this report reflect our views as of the
date of this report with respect to future events and are subject to these and
other risks, uncertainties and assumptions relating to our operations, results
of operations, growth strategy and liquidity. You should not place undue
reliance on these forward-looking statements and you should carefully consider
all of the factors identified in this report that could cause actual results to
differ. We assume no obligation to update these forward-looking statements,
except as required by law.

© Edgar Online, source Previews

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VICI PROPERTIES INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q) https://nowwashyourhands.com/vici-properties-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ Wed, 04 May 2022 20:27:19 +0000 https://nowwashyourhands.com/vici-properties-inc-managements-discussion-and-analysis-of-financial-condition-and-results-of-operations-form-10-q/ The following discussion and analysis of the financial position and operating results of VICI Properties Inc. and VICI Properties L.P. for the three months ended March 31, 2022 should be read in conjunction with the Financial Statements and related notes thereto and other financial information contained elsewhere in this Quarterly Report on Form 10-Q and […]]]>
The following discussion and analysis of the financial position and operating
results of VICI Properties Inc. and VICI Properties L.P. for the three months
ended March 31, 2022 should be read in conjunction with the Financial Statements
and related notes thereto and other financial information contained elsewhere in
this Quarterly Report on Form 10-Q and the audited consolidated financial
statements and related notes for the year ended December 31, 2021, which, in the
case of VICI Properties Inc., were included in our   Annual Report on Form 10-K
for the year ended December 31, 202    1   and in the case of VICI Properties
L.P. were included as an   exhibit     to     Form 8-K     file    d     on

April 18 , 2022 . All defined terms included herein have the same meaning as those set forth in the Notes to the Consolidated Financial Statements contained in this Quarterly Report on Form 10-Q.

              CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this Quarterly Report on Form 10-Q, including statements
such as "anticipate," "believe," "estimate," "expect," "intend," "plan,"
"project," "target," "can," "could," "may," "should," "will," "would" or similar
expressions, which constitute "forward-looking statements" within the meaning of
federal securities law. Forward-looking statements are based on our current
plans, expectations and projections about future events. We therefore caution
you therefore against relying on any of these forward-looking statements. They
give our expectations about the future and are not guarantees. These statements
involve known and unknown risks, uncertainties and other factors that may cause
our actual results, performance and achievements to materially differ from any
future results, performance and achievements expressed in or implied by such
forward-looking statements.

Currently, one of the most significant factors that could cause actual outcomes
to differ materially from our forward-looking statements is the impact of the
COVID-19 pandemic on our and our tenants' financial condition, results of
operations, cash flows and performance. The extent to which the COVID-19
pandemic continues to adversely affect our tenants, and ultimately impacts our
business and financial condition, depends on future developments which cannot be
predicted with confidence, including the impact of the actions taken to contain
the pandemic or mitigate its impact, including the availability, distribution,
public acceptance and efficacy of approved vaccines, new or mutated variants of
COVID-19 (including vaccine-resistant variants) or a similar virus, the direct
and indirect economic effects of the pandemic and containment measures on our
tenants, the ability of our tenants to successfully operate their businesses,
including the costs of complying with regulatory requirements necessary to keep
their respective facilities open, such as reduced capacity requirements, the
need to close any of the facilities as a result of the COVID-19 pandemic, and
the effects of the negotiated capital expenditure reductions and other
amendments to the Lease Agreements that we agreed to with certain tenants in
response to the COVID-19 pandemic. Each of the foregoing could have a material
adverse effect on our tenants' ability to satisfy their obligations under their
Lease Agreements with us, including their continued ability to pay rent in a
timely manner, or at all, and/or to fund capital expenditures or make other
payments required under their leases. Investors are cautioned to interpret many
of the risks identified under the section entitled "Risk Factors" in our

Annual Report on Form 10-K for the fiscal year ended the 31st of December202 1 , our quarterly Form 10-Q reports and our current Form 8-K reports have been enhanced due to the many ongoing negative effects of the COVID-19 pandemic.


The forward-looking statements included herein are based upon our current
expectations, plans, estimates, assumptions and beliefs that involve numerous
risks and uncertainties. Assumptions relating to the foregoing involve judgments
with respect to, among other things, future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond our control.
Although we believe that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, our actual results, performance
and achievements could differ materially from those set forth in the
forward-looking statements and may be affected by a variety of risks and other
factors, including, among others: risks associated with the MGP Transactions,
including our ability or failure to realize the anticipated benefits of the MGP
Transactions; the impact of changes in general economic conditions and market
developments, including rising inflation, consumer confidence, supply chain
disruptions, unemployment levels and depressed real estate prices resulting from
the severity and duration of any downturn in the U.S. or global economy; our
dependence on our tenants as tenants of our properties and their guarantors as
guarantors of the lease payments and the negative consequences any material
adverse effect on their respective businesses could have on us; the anticipated
benefits of the Partner Property Growth Fund; our borrowers' ability to repay
their outstanding loan obligations to us; our dependence on the gaming industry;
our ability to pursue our business and growth strategies may be limited by our
substantial debt service requirements and by the requirement that we distribute
90% of our REIT taxable income in order to qualify for taxation as a REIT and
that we distribute 100% of our REIT taxable income in order to avoid current
entity-level U.S. federal income taxes; our inability to maintain our

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qualification for taxation as a REIT; the impact of extensive regulation from
gaming and other regulatory authorities; the ability of our tenants to obtain
and maintain regulatory approvals in connection with the operation of our
properties, or the imposition of conditions to such regulatory approvals; the
possibility that our tenants may choose not to renew the Lease Agreements
following the initial or subsequent terms of the leases; restrictions on our
ability to sell our properties subject to the Lease Agreements; our tenants and
any guarantors' historical results may not be a reliable indicator of their
future results; our substantial amount of indebtedness, including indebtedness
assumed and incurred by us in connection with the completion of the MGP
Transactions, and ability to service, refinance and otherwise fulfill our
obligations under such indebtedness; our historical financial information may
not be reliable indicators of our future results of operations, financial
condition and cash flows; the impact of a rise in interest rates which have
begun increasing from historic lows, on us; our inability to successfully pursue
investments in, and acquisitions of, additional properties; the possibility that
we identify significant environmental, tax, legal or other issues that
materially and adversely impact the value of assets acquired or secured as
collateral (or other benefits we expect to receive) in any of our recently
completed transactions; the effects of our recently completed transactions on
us, including the future impact on our financial condition, financial and
operating results, cash flows, strategy and plans; the impact of changes to the
U.S. federal income tax laws; the impact and outcome of previous and potential
future litigation relating to the MGP Transactions; the possibility of adverse
tax consequences as a result of our recently completed transactions; increased
volatility in our stock price as a result of our recently completed
transactions; the impact of climate change, natural disasters, war, political
and public health conditions or uncertainty or civil unrest, violence or
terrorist activities or threats on our properties and changes in economic
conditions or heightened travel security and health measures instituted in
response to these events; the loss of the services of key personnel; the
inability to attract, retain and motivate employees; the costs and liabilities
associated with environmental compliance; failure to establish and maintain an
effective system of integrated internal controls; VICI's reliance on
distributions received from VICI LP to make distributions to our stockholders;
the potential impact on the amount of our cash distributions if we were to sell
any of our properties in the future; our ability to continue to make
distributions to holders of our common stock or maintain anticipated levels of
distributions over time; competition for transaction opportunities, including
from other REITs, investment companies, private equity firms and hedge funds,
sovereign funds, lenders, gaming companies and other investors that may have
greater resources and access to capital and a lower cost of capital or different
investment parameters than us; and additional factors discussed herein and
listed from time to time as "Risk Factors" in our filings with the SEC,
including without limitation, in our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.

Any of the assumptions underlying forward-looking statements could be
inaccurate. You are cautioned not to place undue reliance on any forward-looking
statements. All forward-looking statements are made as of the date of this
Quarterly Report on Form 10-Q and the risk that actual results, performance and
achievements will differ materially from the expectations expressed herein will
increase with the passage of time. Except as otherwise required by the Federal
securities laws, we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, changed circumstances or any other reason. In light of the significant
uncertainties inherent in forward-looking statements, the inclusion of such
forward-looking statements should not be regarded as a representation by us.

PREVIEW


We are an owner and acquirer of experiential real estate assets across leading
gaming, hospitality, entertainment and leisure destinations. Following the
closing of the MGP Transactions on April 29, 2022, our national, geographically
diverse portfolio currently consists of 43 market leading properties, including
Caesars Palace Las Vegas, Harrah's Las Vegas, the Venetian Resort, Mandalay Bay
and MGM Grand, five of the most iconic entertainment facilities on the Las Vegas
Strip. Our entertainment facilities are leased to leading brands that seek to
drive consumer loyalty and value with guests through superior services,
experiences, products and continuous innovation. Across over 122 million square
feet, our well-maintained properties are currently located across urban,
destination and drive-to markets in fifteen states, contain approximately 58,700
hotel rooms and feature over 450 restaurants, bars, nightclubs, and sportsbooks.

Our portfolio also includes four real estate debt investments that we have
originated for strategic reasons in connection with transactions that may
provide the potential to convert our investment into the ownership of certain of
the underlying real estate in the future. In addition, we own approximately 34
acres of undeveloped or underdeveloped land on and adjacent to the Las Vegas
Strip that is leased to Caesars, which we may look to monetize as appropriate.
VICI also owns and operates four championship golf courses located near certain
of our properties, two of which are in close proximity to the Las Vegas Strip.

We lease our properties to subsidiaries of, or entities managed by, Caesars,
MGM, Apollo, Penn National, Seminole Hard Rock, Century Casinos, JACK
Entertainment and EBCI, with Caesars and MGM being our largest tenants. We
believe we have a mutually beneficial relationship with each of our tenants, all
of which are leading owners and operators of gaming, entertainment and leisure
properties. Our long-term triple-net Lease Agreements with our tenants provide
us with a highly

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predictable revenue stream with embedded growth potential. We believe our
geographic diversification limits the effect of changes in any one market on our
overall performance. We are focused on driving long-term total returns through
managing experiential asset growth and allocating capital diligently,
maintaining a highly productive tenant base, and optimizing our capital
structure to support external growth. As a growth focused public real estate
investment trust with long-term investments, we expect our relationship with our
partners will position us for the acquisition of additional properties across
leisure and hospitality over the long-term. Despite the ongoing uncertainty
surrounding the COVID-19 pandemic, we continue to evaluate and opportunistically
pursue accretive acquisitions or investments that arise in the market.

Our portfolio is competitively positioned and well-maintained. Pursuant to the
terms of the Lease Agreements, which require our tenants to invest in our
properties, and in line with our tenants' commitment to build guest loyalty, we
anticipate our tenants will continue to make strategic value-enhancing
investments in our properties over time, helping to maintain their competitive
position. In addition, given our scale and deep industry knowledge, we believe
we are well-positioned to execute highly complementary single-asset and
portfolio acquisitions, as well as other investments, to augment growth as
market conditions allow, with a focus on disciplined capital allocation.

We conduct our operations as a real estate investment trust ("REIT") for U.S.
federal income tax purposes. We generally will not be subject to U.S. federal
income taxes on our taxable income to the extent that we annually distribute all
of our net taxable income to stockholders and maintain our qualification as a
REIT. We believe our election of REIT status, combined with the income
generation from the Lease Agreements, will enhance our ability to make
distributions to our stockholders, providing investors with current income as
well as long-term growth, subject to the macroeconomic impact of the COVID-19
pandemic and market conditions more broadly. We conduct our real property
business through VICI OP and our golf course business through a taxable REIT
subsidiary (a "TRS"), VICI Golf.

The financial information included in this Quarterly Report on Form 10-Q is our
consolidated results (including the real property business and the golf course
business) for the three months ended March 31, 2022.

Impact of the COVID-19 pandemic on our activities


Since the emergence of the COVID-19 pandemic in early 2020, among the broader
public health, societal and global impacts, the pandemic has resulted in
governmental and/or regulatory actions imposing, among other things, temporary
closures or restrictions from time to time on our tenants' operations at our
properties and our golf course operations. Although all of our leased properties
and our golf courses are currently open and operating, without restriction in
some jurisdictions, they remain subject to any current or future operating
limitations, restrictions or closures imposed by governmental and/or regulatory
authorities. While our tenants' recent performance at many of our leased
properties has been at or above pre-pandemic levels, our tenants may continue to
face additional challenges and uncertainty due to the impact of the COVID-19
pandemic, such as complying with operational and capacity restrictions and
ensuring sufficient employee staffing and service levels, and the sustainability
of maintaining improved operating margins and financial performance. Due to
prior closures, operating restrictions and other factors, our tenants'
operations, liquidity and financial performance have been adversely affected,
and the ongoing nature of the pandemic, including emerging variants, may further
adversely affect our tenants' businesses and, accordingly, our business and
financial performance could be adversely affected in the future.

All of our tenants have fulfilled their rent obligations through April 2022 and
we regularly engage with our tenants in connection with their business
performance, operations, liquidity and financial results. As a triple-net
lessor, we believe we are generally in a strong creditor position and
structurally insulated from operational and performance impacts of our tenants,
both positive and negative. However, the full extent to which the COVID-19
pandemic continues to adversely affect our tenants, and ultimately impacts us,
depends on future developments which cannot be predicted with confidence,
including the actions taken to contain the pandemic or mitigate its impact,
including the availability, distribution, public acceptance and efficacy of
approved vaccines, new or mutated variants of COVID-19 (including
vaccine-resistant variants) or a similar virus, the direct and indirect economic
effects of the pandemic and containment measures on our tenants, our tenants'
financial performance and any future operating limitations or closures. For more
information, refer to the section entitled "Risk Factors" in our   Annual Report
on Form 10-K for the year ended December 31, 202    1   and as updated from time
to time in our other filings with the SEC.

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SIGNIFICANT ACTIVITIES IN 2022

Acquisition and investment activity


•MGP Transactions. On April 29, 2022, we closed on the previously announced MGP
Transactions governed by the MGP Master Transaction Agreement, pursuant to which
we acquired MGP for total consideration of $17.2 billion, inclusive of the
assumption of approximately $5.7 billion of debt. Upon closing, the MGP
Transactions added $1,012.2 million of annualized rent to our portfolio from 15
Class A entertainment casino resort properties spread across nine regions and
comprising 36,000 hotel rooms, 3.6 million square feet of meeting and convention
space and hundreds of food, beverage and entertainment venues. Under the terms
of the MGP Master Transaction Agreement, holders of MGP Common Shares received
1.366 shares of our newly issued common stock in exchange for each Class A
common share of MGP. The fixed Exchange Ratio represented an agreed upon price
of $43.00 per share of MGP Class A common shares based on VICI's trailing 5-day
volume weighted average price of $31.47 as of July 30, 2021. MGM received $43.00
per unit in cash for the redemption of the majority of its MGP OP units that it
holds for total cash consideration of approximately $4.404 billion and also
retained approximately 12.2 million units in VICI OP. The MGP Class B share that
was held by MGM was cancelled and ceased to exist.

Simultaneous with the closing of the Mergers on April 29, 2022, we entered into
the MGM Master Lease. The MGM Master Lease has an initial term of 25 years, with
three 10-year tenant renewal options and has an initial total annual rent of
$860.0 million. Rent under the MGM Master Lease escalates at a rate of 2.0% per
annum for the first 10 years and thereafter at the greater of 2.0% per annum or
the increase in the consumer price index ("CPI"), subject to a 3.0% cap. The
initial total annual rent under the MGM Master Lease will be reduced by $90.0
million to $770.0 million, upon the close of MGM's pending sale of the
operations of the Mirage to Hard Rock and entrance into the Mirage Lease, as
further described below. Additionally, we retained MGP's existing 50.1%
ownership stake in the BREIT JV, which owns the real estate assets of MGM Grand
Las Vegas and Mandalay Bay. The BREIT JV Lease remained unchanged and provides
for current total annual base rent of approximately $303.8 million, of which
approximately $152.2 million is attributable to MGP's investment in the BREIT
JV, and an initial term of thirty years with two 10-year tenant renewal options.
Rent under the BREIT JV Lease escalates at a rate of 2.0% per annum for the
first fifteen years and thereafter at the greater of 2.0% per annum or CPI,
subject to a 3.0% cap. The tenant's obligations under the MGM Master Lease and
the BREIT JV Lease continue to be guaranteed by MGM.

•BigShots Loan. Subsequent to quarter end, on April 7, 2022, we entered into the
BigShots Loan with BigShots Golf, a subsidiary of ClubCorp, an Apollo fund
portfolio company, under which we agreed to provide up to $80.0 million of
mortgage financing ("BigShots Loan") for the construction of certain new
BigShots Golf facilities throughout the United States. The BigShots Loan bears
interest at a rate of 10.0% per annum and has an initial term of five years with
two successive 12-month extension options, subject to certain conditions. Our
commitment to fund the loan will be subject to customary terms and conditions
and disbursement of funds to the borrower will be based upon construction of the
applicable BigShots Golf facilities. In addition, we entered into a right of
first offer and call right agreement, pursuant to which (i) we have a call right
to acquire the real estate assets associated with any BigShots Golf facility
financed by us, which transaction will be structured as a sale leaseback, and
(ii) for so long as the BigShots Loan remains outstanding and we continue to
hold a majority interest therein, subject to additional terms and conditions, we
will have a right of first offer on any multi-site mortgage, mezzanine,
preferred equity, or other similar financing that is treated as debt to be
obtained by BigShots Golf (or any of its affiliates) in connection with the
development of BigShots Golf facilities.

•Venetian Acquisition. On February 23, 2022, we closed on the previously
announced transaction to acquire all of the land and real estate assets
associated with the Venetian Resort from LVS for $4.0 billion in cash, and the
Venetian Tenant acquired the operating assets of the Venetian Resort for $2.25
billion, of which $1.2 billion is in the form of a secured term loan from LVS
and the remainder was paid in cash. We funded the Venetian Acquisition with (i)
$3.2 billion in net proceeds from the physical settlement of the March 2021
Forward Sale Agreements and the September 2021 Forward Sale Agreements, (ii) an
initial draw on the Revolving Credit Facility of $600.0 million, and (iii) cash
on hand. Simultaneous with the closing of the Venetian Acquisition, we entered
into the Venetian Lease with the Venetian Tenant. The Venetian Lease has an
initial total annual rent of $250.0 million and an initial term of 30 years,
with two ten-year tenant renewal options. The annual rent is subject to
escalation equal to the greater of 2.0% and the increase in the CPI, capped at
3.0%, beginning in the earlier of (i) the beginning of the third lease year, and
(ii) the month following the month in which the net revenue generated by the
Venetian Resort returns to its 2019 level (the year immediately prior to the
onset of the COVID-19 pandemic) on a trailing twelve-month basis.

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In connection with the Venetian Acquisition, we entered into the Venetian PGFA
with the Venetian Tenant. Under the Venetian PGFA, we agreed to provide up to
$1.0 billion for various development and construction projects affecting the
Venetian Resort to be identified by the Venetian Tenant and that satisfy certain
criteria more particularly set forth in the Venetian PGFA, in consideration of
additional incremental rent to be paid by the Venetian Tenant under the Venetian
Lease and calculated in accordance with a formula set forth in the Venetian
PGFA.

In addition, LVS agreed with the Venetian Tenant pursuant to the Contingent
Lease Support Agreement entered into simultaneously with the closing of the
Venetian Acquisition to provide lease payment support designed to guarantee the
Venetian Tenant's rent obligations under the Venetian Lease through 2023,
subject to early termination if EBITDAR (as defined in such agreement) generated
by the Venetian Resort in 2022 equals or exceeds $550.0 million, or a tenant
change of control occurs. We are a third-party beneficiary of the Contingent
Lease Support Agreement and have certain enforcement rights pursuant thereto.
The Contingent Lease Support Agreement is limited to coverage of the Venetian
Tenant's rent obligations and does not cover any environmental expenses,
litigation claims, or any cure or enforcement costs. The obligations of the
Venetian Tenant under the Venetian Lease are not guaranteed by Apollo or any of
its affiliates. After the termination of the Contingent Lease Support Agreement,
the Venetian Tenant will be required to provide a letter of credit to secure
seven and one-half months of the rent, real estate taxes and assessments and
insurance obligations of the Venetian Tenant if the operating results from the
Venetian Resort do not exceed certain thresholds.

Financing and capital markets activity


•Issuance of Exchange Notes. Subsequent to quarter-end, in connection with the
closing of the MGP Transactions on April 29, 2022, the VICI Issuers issued
$4,110.0 million in aggregate principal amount of Exchange Notes in exchange for
the validly tendered and not validly withdrawn MGP OP Notes pursuant to the
settlement of the Exchange Offers and Consent Solicitations (each, as defined in
  Note 3 - Property Transactions  ). The Exchange Notes were issued with the
same interest rate, maturity date and redemption terms as the corresponding
series of MGP OP Notes. Following the issuance of the Exchange Notes pursuant to
the settlement of the Exchange Offers and Consent Solicitations, $90.0 million
in aggregate principal amount of MGP OP Notes remained outstanding. See   Note 7
- Debt   for additional information.

•Issuance of April 2022 Notes. Subsequent to quarter-end, in connection with the
closing of the MGP Transactions on April 29, 2022, VICI LP issued (i) $500.0
million in aggregate principal amount of 4.375% 2025 Notes, (ii) $1,250.0
million in aggregate principal amount of 4.750% 2028 Notes, (iii) $1,000.0
million in aggregate principal amount of 4.950% 2030 Notes, (iv) $1,500.0
million in aggregate principal amount of 5.125% 2032 Notes, and (v) $750.0
million in aggregate principal amount of 5.625% 2052 Notes, in each case under a
supplemental indenture dated as of April 29, 2022, between VICI LP and the
Trustee (as defined in   Note 7 - Debt  ). We used the net proceeds of the
offering to (i) fund the consideration for the redemption of a majority of the
VICI OP Units received by MGM in the Partnership Merger for $4,404.0 million in
cash in connection with the closing of the MGP Transactions on April 29, 2022,
and (ii) pay down the outstanding $600.0 million balance on our Revolving Credit
Facility. The weighted average interest rate for the senior notes issued in the
April 2022 Notes Offering is 5.00%, and the adjusted weighted average interest
rate, after taking into account the impact of the forward starting interest rate
swaps and treasury locks, is 4.51%.

•Settlement of September 2021 Forward Sale Agreements and March 2021 Forward
Sale Agreements. On February 18, 2022, we physically settled the September 2021
Forward Sale Agreements and the March 2021 Forward Sale Agreements in exchange
for total net proceeds of approximately $3.2 billion, which were used to pay for
a portion of the purchase price of the Venetian Acquisition.

•Entry into New Unsecured Credit Agreement. On February 8, 2022, we entered into
the Credit Facilities pursuant to the Credit Agreement, comprised of (i) the
Revolving Credit Facility in the amount of $2.5 billion scheduled to mature on
March 31, 2026 and (ii) the Delayed Draw Term Loan in the amount of $1.0 billion
scheduled to mature on March 31, 2025. Concurrently, we terminated our Secured
Revolving Credit Facility (including the first priority lien on substantially
all of VICI PropCo's and its existing and subsequently acquired wholly owned
material domestic restricted subsidiaries' material assets) and 2017 Credit
Agreement (as defined in   Note 7 - Debt  ). The Credit Facilities include the
option to increase the revolving loan commitments by up to $1.0 billion in the
aggregate and increase the delayed draw term loan commitments or add one or more
new tranches of term loans by up to $1.0 billion in the aggregate, in each case,
to the extent that any one or more lenders (from the syndicate or otherwise)
agree to provide such additional credit extensions. Borrowings under the Credit
Facilities will bear interest, at VICI LP's option, (i) with respect to the
Revolving Credit Facility, at a rate based on SOFR (including a credit spread
adjustment) plus a margin ranging from 0.775% to 1.325% or a base rate plus a
margin ranging from 0.00% to 0.325%, in each case, with

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the actual margin determined according to VICI LP's debt ratings, and (ii) with
respect to the Delayed Draw Term Loan, at a rate based on SOFR (including a
credit spread adjustment) plus a margin ranging from 0.85% to 1.60% or a base
rate plus a margin ranging from 0.00% to 0.60%, in each case, with the actual
margin determined according to VICI LP's debt ratings. On February 18, 2022, we
drew on the Revolving Credit Facility in the amount of $600.0 million to fund a
portion of the purchase price of the Venetian Acquisition. On April 29, 2022 we
repaid the outstanding balance of the Revolving Credit Facility using the
proceeds from the April 2022 Notes and cash on hand.

•Entry into Forward-Starting Interest Rate Swap Agreements and U.S. Treasury
Rate Locks. From December 2021 through March 2022, we entered into five
forward-starting interest rate swap agreements with third-party financial
institution having an aggregate notional amount of $2,500.0 million.
Additionally, in April 2022, we entered into two U.S. Treasury Rate Lock
agreements with a notional amount of $500.0 million. The interest rate swap
agreements and treasury locks were intended to reduce the variability in the
forecasted interest expense related to the fixed-rate debt we expected to incur
in connection with closing the MGP Transactions. Subsequent to quarter-end, in
connection with the April 2022 Notes offering we settled the outstanding
forward-starting interest rate swaps and treasury locks for net proceeds of
$206.8 million. Since the forward-starting swaps and treasury locks were hedging
the interest rate risk on the April 2022 Notes, the unrealized gain in
Accumulated other comprehensive income will be amortized over the term of the
respective derivative instruments, which matches that of the underlying note, as
a reduction in interest expense.

CURRENT ACTIVITY


•Mirage Severance Lease. On December 13, 2021, in connection with MGM's
agreement to sell the operations of the Mirage Hotel & Casino to Hard Rock, we
agreed to enter into the Mirage Lease, and enter into an amendment to the MGM
Master Lease relating to the sale of the Mirage. The Mirage Lease will have
initial annual base rent of $90.0 million with other economic terms
substantially similar to the MGM Master Lease, including a base term of 25 years
with three 10-year tenant renewal options, escalation of 2.0% per annum (with
escalation of the greater of 2.0% and CPI, capped at 3.0%, beginning in lease
year 11) and minimum capital expenditure requirements of 1.0% of annual net
revenue. Upon the closing of the sale of the Mirage, the MGM Master Lease will
be amended to account for MGM's divestiture of the Mirage operations and will
result in a reduction of the initial annual base rent under the MGM Master Lease
by $90.0 million. We expect these transactions to be completed in the second
half of 2022, and they remain subject to customary closing conditions and
regulatory approvals. Additionally, subject to certain conditions, we may fund
up to $1.5 billion of Hard Rock's redevelopment plan for the Mirage through our
Partner Property Growth Fund if Hard Rock elects to seek third-party financing
for such redevelopment. Specific terms of the redevelopment and related funding
remain under discussion and subject to final documentation.

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RESULTS OF OPERATIONS


The results of operations discussion of VICI and VICI LP are presented combined
as there are no material differences between the two reporting entities.
Further, Golf revenues and Golf expenses, which are wholly attributable to VICI,
are shown as separate line items in the Statement of Operations of VICI.

segments


Our real property business and our golf course business represent our two
reportable segments. The real property business segment consists of leased real
property and loan investments and represents the substantial majority of our
business. The golf course business segment, which is a wholly-owned subsidiary
of VICI, consists of four golf courses, with each being operating segments that
are aggregated into one reportable segment. The results of each reportable
segment presented below are consistent with the way our management assesses
these results and allocates resources.

                                                           Three Months Ended March 31,
(In thousands)                                                2022                  2021             Variance
Revenues
Income from sales-type leases                          $       326,735      

$290,146 $36,589


Income from lease financing receivables and loans               72,878             70,377              2,501
Other income                                                     8,386              6,974              1,412
Golf revenues                                                    8,626              6,813              1,813
Total revenues                                                 416,625            374,310             42,315

Operating expenses
General and administrative                                       9,466              8,085              1,381
Depreciation                                                       776                792                (16)
Other expenses                                                   8,386              6,974              1,412
Golf expenses                                                    5,285              4,506                779
Change in allowance for credit losses                           80,820             (4,380)            85,200
Transaction and acquisition expenses                               755              8,721             (7,966)
Total operating expenses                                       105,488             24,698             80,790

Interest expense                                               (68,142)           (77,048)             8,906
Interest income                                                     93                 19                 74

Income before income taxes                                     243,088            272,583            (29,495)
Income tax expense                                                (400)              (484)                84
Net income                                                     242,688            272,099            (29,411)
Less: Net income attributable to non-controlling
interest                                                        (2,305)            (2,298)                (7)

Net income attributable to ordinary shareholders $240,383

$269,801 ($29,418)

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Revenue


For the three months ended March 31, 2022 and 2021, our revenue was comprised of
the following items:

                           Three Months Ended March 31,
(In thousands)                 2022                   2021         Variance
Leasing revenue     $       389,754                $ 350,038      $ 39,716
Income from loans             9,859                   10,485          (626)
Other income                  8,386                    6,974         1,412
Golf revenues                 8,626                    6,813         1,813
   Total revenues   $       416,625                $ 374,310      $ 42,315


Leasing Revenue

The following table details the components of our income from sales-type and
financing receivables leases:

                                                         Three Months Ended March 31,
(In thousands)                                              2022                  2021             Variance
Income from sales-type leases                        $       326,735        

$290,146 $36,589


Income from lease financing receivables (1)                   63,019             59,892              3,127
   Total leasing revenue                                     389,754            350,038             39,716
Non-cash adjustment (2)                                      (35,553)           (27,877)            (7,676)
   Total contractual leasing revenue                 $       354,201          $ 322,161          $  32,040

____________________

(1) Represents the Harrah's Original Call Properties and the JACK
Cleveland/Thistledown Lease, both of which were sale leaseback transactions. In
accordance with ASC 842, since the lease agreements were determined to meet the
definition of a sales-type lease and control of the asset is not considered to
have transferred to us, such lease agreements are accounted for as financings
under ASC 310.
(2) Amounts represent the non-cash adjustment to income from sales-type leases
and lease financing receivables in order to recognize income on an effective
interest basis at a constant rate of return over the term of the leases.

Leasing revenue is generated from rent from our Lease Agreements. Total leasing
revenue increased $39.7 million during the three months ended March 31, 2022,
compared to the three months ended March 31, 2021. Total contractual leasing
revenue increased $32.0 million during the three months ended March 31, 2022,
compared to the three months ended March 31, 2021. The increase was primarily
driven by the addition of the Venetian Lease to our portfolio in February of
2022 as well as the annual escalators from our Leases.

Loan income


Income from loans decreased $0.6 million during the three months ended March 31,
2022, compared to the three months ended March 31, 2021. The decrease was driven
by repayment of the $70.0 million ROV term loan with JACK Entertainment in
October 2021, partially offset by the addition of the Great Wolf Mezzanine Loan
to our real estate investment portfolio in June 2021.

Other income


Other income increased $1.4 million during the three months ended March 31, 2022
compared to the three months ended March 31, 2021, driven primarily by the
additional income and offsetting expense as a result of the assumption of
certain sub-leases in connection with the Venetian Acquisition. The Lease
Agreements require the tenants to pay all costs associated with such ground and
use sub-leases and provide for their direct payment to the landlord.

Golf revenue


Revenues from VICI's golf operations increased $1.8 million during the three
months ended March 31, 2022, compared to the three months ended March 31, 2021.
The change was primarily driven by an increase in rounds played at the golf
courses and an increase in the contractual fees paid to us by Caesars for the
use of our golf courses, pursuant to a golf course use agreement.


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Functionnary costs

For the three months ended March 31, 2022 and 2021, our operating expenses consisted of the following:

                                                        Three Months Ended March 31,
(In thousands)                                            2022                2021             Variance
General and administrative                            $    9,466          $   8,085          $   1,381
Depreciation                                                 776                792                (16)
Other expenses                                             8,386              6,974              1,412
Golf expenses                                              5,285              4,506                779
Change in allowance for credit losses                     80,820             (4,380)            85,200
Transaction and acquisition expenses                         755              8,721             (7,966)
   Total operating expenses                           $  105,488          $  24,698          $  80,790

General and administrative expenses


General and administrative expenses increased $1.4 million for the three months
ended March 31, 2022, as compared to the three months ended March 31, 2021. The
increase was primarily driven by an increase in compensation, including
stock-based compensation.

Other expenses


Other expenses increased $1.4 million during the three months ended March 31,
2022 compared to the three months ended March 31, 2021, driven primarily by the
additional income and offsetting expense as a result of the assumption of
certain sub-leases in connection with the Venetian Acquisition. The Lease
Agreements require the tenants to pay all costs associated with such ground and
use sub-leases and provide for their direct payment to the landlord.

Golf fees


Expenses from golf operations for VICI increased $0.8 million during the three
months ended March 31, 2022, compared to the three months ended March 31, 2021.
The change was primarily driven by an increase in rounds of golf played across
our golf courses.

Change in allowance for credit losses


Under ASU No. 2016-13 - Financial Instruments-Credit Losses (Topic 326), we are
required to record an estimated credit loss for our (i) Investments in leases -
sales-type, (ii) Investments in leases - financing receivables and (iii)
Investments in loans. During the three months ended March 31, 2022, we
recognized a $80.8 million increase in our allowance for credit losses primarily
driven by (i) the initial CECL allowance in relation to (a) the Venetian
Acquisition and classification of the Venetian Lease as a sales-type lease, (b)
the estimated future funding commitments under the Venetian PGFA and (c) the
sales-type sub-lease agreements we assumed in connection with the Venetian
Acquisition and are required to present gross and (ii) the increase in the
reasonable and supportable period, or R&S Period, probability of default, or PD,
of our tenants and their parent guarantors as a result of market volatility
during the first quarter of 2022. This was partially offset by a decrease in the
Long-Term Period PD as a result of a standard annual update made to the
Long-Term PD default study we utilize to estimate our CECL allowance.

During the three months ended March 31, 2021, we recognized a $4.4 million
decrease in our allowance for credit losses primarily driven by the decrease in
the R&S Period PD of our tenants and their parent guarantors as a result of an
improvement in their economic outlook due to the reopening of a majority of
their gaming operations and relative performance of such operations during the
first quarter of 2021.

Transaction and acquisition costs


Transaction and acquisition expenses decreased $8.0 million during the three
months ended March 31, 2022 compared to the three months ended March 31, 2021.
Changes in transaction and acquisition expenses are related to fluctuations in
(i) costs incurred for investments during the period that are not capitalizable
under GAAP and (ii) costs incurred for investments that we are no longer
pursuing.

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Non-operating income and expenses

For the three months ended March 31, 2022 and 2021, our non-operating income and expenses included the following:

(In thousands)        2022           2021         Variance
Interest expense   $ (68,142)     $ (77,048)     $  8,906
Interest income           93             19            74


Interest Expense

Interest expense decreased $8.9 million during the three months ended March 31,
2022, as compared to the three months ended March 31, 2021. The decrease during
the three months ended March 31, 2022 was primarily related to the full
repayment of the Term Loan B Facility and termination of interest rate swap
agreements in September 2021, partially offset by (i) the amortization of the
commitment fees associated with the Venetian Acquisition Bridge Facility and the
MGP Transactions Bridge Facility (ii) the commitment fees on the Revolving
Credit Facility and Delayed Draw Term Loan and (iii) additional interest on the
$600.0 million draw on the Revolving Credit Facility.

Additionally, the weighted average annualized interest rate on our debt decreased to 3.97% in the three months ended March 31, 20224.05% in the three months ended March 31, 2021due to a lower effective interest rate on $600.0 million outstanding under the revolving credit facility for a portion of the time during the three months ended March 31, 2022
compared to the $600.0 million uncovered portion of term loan facility B outstanding during the three months ended March 31, 2021.

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RECONCILIATION OF NON-GAAP MEASURES


We present VICI's Funds From Operations ("FFO"), FFO per share, Adjusted Funds
From Operations ("AFFO"), AFFO per share, and Adjusted EBITDA, which are not
required by, or presented in accordance with, generally accepted accounting
principles in the United States ("GAAP"). These are non-GAAP financial measures
and should not be construed as alternatives to net income or as an indicator of
operating performance (as determined in accordance with GAAP). We believe FFO,
FFO per share, AFFO, AFFO per share and Adjusted EBITDA provide a meaningful
perspective of the underlying operating performance of VICI's business.

FFO is a non-GAAP financial measure that is considered a supplemental measure
for the real estate industry and a supplement to GAAP measures. Consistent with
the definition used by the National Association of Real Estate Investment Trusts
(NAREIT), we define FFO as VICI's net income (or loss) attributable to common
stockholders (computed in accordance with GAAP) excluding (i) gains (or losses)
from sales of certain real estate assets, (ii) depreciation and amortization
related to real estate, (iii) gains and losses from change in control and (iv)
impairment write-downs of certain real estate assets and investments in entities
when the impairment is directly attributable to decreases in the value of
depreciable real estate held by the entity.

AFFO is a non-GAAP financial measure that we use as a supplemental operating
measure to evaluate VICI's performance. We calculate VICI's AFFO by adding or
subtracting from FFO non-cash leasing and financing adjustments, non-cash change
in allowance for credit losses, non-cash stock-based compensation expense,
transaction costs incurred in connection with the acquisition of real estate
investments, amortization of debt issuance costs and original issue discount,
other non-cash interest expense, non-real estate depreciation (which is
comprised of the depreciation related to our golf course operations), capital
expenditures (which are comprised of additions to property, plant and equipment
related to our golf course operations), impairment charges related to
non-depreciable real estate, gains (or losses) on debt extinguishment and
interest rate swap settlements, other non-recurring non-cash transactions and
non-cash adjustments attributable to non-controlling interest with respect to
certain of the foregoing.

We calculate VICI’s adjusted EBITDA by adding or subtracting AFFO contractual interest expense and interest income (collectively, interest expense, net) and income tax expense.


These non-GAAP financial measures: (i) do not represent VICI's cash flow from
operations as defined by GAAP; (ii) should not be considered as an alternative
to VICI's net income as a measure of operating performance or to cash flows from
operating, investing and financing activities; and (iii) are not alternatives to
VICI's cash flow as a measure of liquidity. In addition, these measures should
not be viewed as measures of liquidity, nor do they measure our ability to fund
all of our cash needs, including our ability to make cash distributions to our
stockholders, to fund capital improvements, or to make interest payments on our
indebtedness. Investors are also cautioned that FFO, FFO per share, AFFO, AFFO
per share and Adjusted EBITDA, as presented, may not be comparable to similarly
titled measures reported by other real estate companies, including REITs, due to
the fact that not all real estate companies use the same definitions. Our
presentation of these measures does not replace the presentation of VICI's
financial results in accordance with GAAP.

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Reconciliation of VICI's Net Income to FFO, FFO per Share, AFFO, AFFO per Share
and Adjusted EBITDA

                                                                   Three Months Ended March 31,
(In thousands, except share data and per share data)               2022                    2021
Net income attributable to common stockholders              $       240,383          $      269,801
Real estate depreciation                                                  -                       -
FFO                                                                 240,383                 269,801
Non-cash leasing and financing adjustments                          (35,564)                (27,852)
Non-cash change in allowance for credit losses                       80,820                  (4,380)
Non-cash stock-based compensation                                     2,630                   2,277
Transaction and acquisition expenses                                    755                   8,721
Amortization of debt issuance costs and original issue
discount                                                             15,977                   6,691
Other depreciation                                                      746                     760
Capital expenditures                                                   (454)                 (1,233)

Non-cash adjustments attributable to non-controlling
interest                                                                202                     227
AFFO                                                                305,495                 255,012
Interest expense, net                                                52,072                  70,338
Income tax expense                                                      400                     484
Adjusted EBITDA                                             $       357,967          $      325,834

Net income per common share
Basic                                                       $          0.35          $         0.50
Diluted                                                     $          0.35          $         0.50
FFO per common share
   Basic                                                    $          0.35          $         0.50
Diluted                                                     $          0.35          $         0.50
AFFO per common share
Basic                                                       $          0.45          $         0.48
Diluted                                                     $          0.44          $         0.47
Weighted average number of shares of common stock outstanding
   Basic                                                        684,341,045             536,480,505
   Diluted                                                      687,914,683             544,801,802


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CASH AND CAPITAL RESOURCES

Liquidity

From March 31, 2022our available cash balances, our capacity under our revolving credit facility and our deferred draw term loan were as follows:


(In thousands)                                   March 31, 2022
Cash and cash equivalents                       $       568,702

Capacity under the revolving credit facility (1) 1,900,000 Capacity under the deferred draw term loan (1)

             1,000,000
Total                                           $     3,468,702


____________________

(1)In addition, the Credit Facilities include the option to increase the
revolving loan commitments by up to $1.0 billion and increase the Delayed Draw
Term Loan commitments or add one or more new tranches of term loans by up to
$1.0 billion in the aggregate, in each case, to the extent that any one or more
lenders (from the syndicate or otherwise) agree to provide such additional
credit extensions.

We believe that we have sufficient liquidity to meet our material cash
requirements, including our contractual obligations and commitments as well as
our additional funding requirements, primarily through currently available cash
and cash equivalents, cash received under our Lease Agreements, existing
borrowings from banks, including our Delayed Draw Term Loan and undrawn capacity
under our Revolving Credit Facility, and proceeds from future issuances of debt
and equity securities (including issuances under our ATM Agreement) for the next
12 months and in future periods.

All of the Lease Agreements call for an initial term of between fifteen and
thirty years with additional tenant renewal options and are designed to provide
us with a reliable and predictable long-term revenue stream. However, the
COVID-19 pandemic has adversely impacted our tenants and their financial
condition, and may continue to do so, due to the impact of operating
restrictions and limitations imposed from time to time, as well as potential
property reclosures. In the event our tenants are unable to make all of their
contractual rent payments as provided by the Lease Agreements, we believe we
have sufficient liquidity from the other sources discussed above to meet all of
our contractual obligations for a significant period of time. Additionally, we
do not have any debt maturities until 2025. For more information, refer to the
risk factors incorporated by reference into   Part II. Item 1A. Risk Factors
herein from our   Annual Report on Form 10-K for the year ended December 31,
2021  .

Our cash flows from operations and our ability to access capital resources could
be adversely affected due to uncertain economic factors and volatility in the
financial and credit markets, including as a result of the COVID-19 pandemic. In
particular, in connection with the COVID-19 pandemic and its impact on our
tenants' operations and financial performance, we can provide no assurances that
our tenants will not default on their leases or fail to make full rental
payments if their businesses become challenged due to, among other things,
current or future adverse economic conditions. In addition, any such tenant
default or failure to make full rental payments could impact our operating
performance and result in us not satisfying the financial covenants applicable
to our outstanding indebtedness, which could result in us not being able to
incur additional debt, or result in a default. Further, current or future
economic conditions could impact our tenants' ability to meet capital
improvement requirements or other obligations required in our Lease Agreements
that could result in a decrease in the value of our properties.

Our ability to raise funds through the issuance of debt and equity securities
and access to other third-party sources of capital in the future will be
dependent on, among other things, uncertainties related to COVID-19 and the
impact of our response and our tenants' responses to COVID-19, general economic
conditions, general market conditions for REITs, market perceptions and the
trading price of our stock. We will continue to analyze which sources of capital
are most advantageous to us at any particular point in time, but the capital
markets may not be consistently available on terms we deem attractive, or at
all.

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Material Cash Requirements

Contractual Obligations

Our short-term obligations consist primarily of regular interest payments on our
debt obligations, dividends to our common stockholders, normal recurring
operating expenses, recurring expenditures for corporate and administrative
needs, certain lease and other contractual commitments related to our golf
operations and certain non-recurring expenditures. For more information on our
material contractual commitments refer to   Note 10 - Commitments and Contingent
Liabilities  .

Our long-term obligations consist primarily of principal payments on our
outstanding debt obligations and future funding commitments under our lease and
loan agreements. As of March 31, 2022, we have $5.4 billion of debt obligations
outstanding, none of which are maturing in the next twelve months. For a summary
of principal debt balances and their maturity dates and principal terms, refer
to   Note 7 - Debt  . For a summary of our future funding commitments under our
loan portfolio, refer to   Note 4 - Real Estate Portfolio  .

As described in our leases, capital expenditures for properties under the Lease
Agreements are the responsibility of the tenants. Minimum capital expenditure
spending requirements of the tenants pursuant to the Lease Agreements are
described in   Note 4 - Real Estate Portfolio  .

Information concerning our material contractual obligations and commitments to
make future payments under contracts such as our indebtedness and future minimum
lease commitments under operating leases is included in the following table as
of March 31, 2022. Amounts in this table omit, among other things,
non-contractual commitments and items such as dividends and recurring or
non-recurring operating expenses and other expenditures, including acquisitions
and other investments.

                                                                                                      Payments Due By Period
                                                                                                                                                                 2026 and
(In thousands)                                           Total              2022 (remaining)             2023               2024               2025             Thereafter

Long-term debt, capital

                  November 2019 Notes(1)
                  2026 Maturity                      $ 1,250,000          $               -          $       -          $       -          $       -          $  1,250,000
                  2029 Maturity                        1,000,000                          -                  -                  -                  -             1,000,000
                  February 2020 Notes(1)
                  2025 Maturity                          750,000                          -                  -                  -            750,000                     -
                  2027 Maturity                          750,000                          -                  -                  -                  -               750,000
                  2030 Maturity                        1,000,000                          -                  -                  -                  -             1,000,000
                  Revolving Credit Facility
                  (2)                                    600,000                          -                  -                  -                  -               600,000
Scheduled interest payments (3)                        1,324,114                    163,822            218,753            219,080            205,889               516,570
Total debt contractual obligations                     6,674,114                    163,822            218,753            219,080            955,889    

5,116,570

Leases and contracts

                  Future funding commitments -
                  loan investments and lease
                  agreements(4)                           45,327                     30,327                  -                  -                  -                15,000
                  Operating lease for Cascata
                  Golf Course Land                        18,579                        714                970                990              1,009                14,895
                  Golf maintenance contract
                  for Rio Secco and Cascata
                  Golf Course                              6,043                      2,590              3,453                  -                  -                     -
                  Office leases                            7,489                        697                857                857                899                 4,179
Total leases and contract obligations                     77,438                     34,327              5,280              1,847              1,908                34,075

Total contractual commitments                        $ 6,751,552          $         198,149          $ 224,034          $ 220,927          $ 957,797          $  5,150,645


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________________________________________

(1) The 2025 Notes, 2026 Notes, 2027 Notes, 2029 Notes and 2030 Notes will
mature on February 15, 2025, December 1, 2026, February 15, 2027, December 1,
2029 and August 15, 2030, respectively.
(2) On February 8, 2022, we entered into the Credit Agreement providing for the
Credit Facilities, comprised of the Revolving Credit Facility in the amount of
$2.5 billion and the Delayed Draw Term Loan in the amount of $1.0 billion, and
concurrently terminated our Secured Revolving Credit Facility (including the
first priority lien on substantially all of VICI PropCo's and its existing and
subsequently acquired wholly owned material domestic restricted subsidiaries'
material assets) and 2017 Credit Agreement. Refer to   Note 7 - Debt   for
further information regarding the Credit Agreement.
(3) Subsequent to quarter end, on April 29, 2022, in connection with the closing
of the MGP Transactions, we issued the April 2022 Notes, the Exchange Notes and
assumed the MGP OP Notes, each as further described in   Note 7 - Debt  . The
April 2022 Notes, Exchange Notes and MGP OP Notes all provide for fixed interest
rates and will add approximately $456.3 million in annual interest expense.
(4) The allocation of our future funding commitments is based on the
construction draw schedule, commitment funding date or expiration date, as
applicable, however we may be obligated to fund these commitments earlier than
such date.

Additional funding needs


In addition to the contractual obligations and commitments set forth in the
table above, we have and may enter into additional agreements that commit us to
potentially acquire properties in the future, fund future property improvements
or otherwise provide capital to our tenants, borrowers and other counterparties,
including through our put-call agreements and Partner Property Growth Fund.

Cash flow analysis


The table below summarizes our cash flows for the three months ended March 31,
2022 and 2021:

                                                             Three Months Ended March 31,
(In thousands)                                                 2022                   2021               Variance

Cash, cash equivalents and restricted cash

          Provided by operating activities              $       298,173          $   155,726          $    142,447
          (Used in) provided by investing activities         (4,028,245)              32,409            (4,060,654)
          Provided by (used in) financing activities          3,559,160             (181,598)            3,740,758
          Net (decrease) increase in cash, cash
          equivalents and restricted cash                      (170,912)               6,537              (177,449)
          Cash, cash equivalents and restricted cash,
          beginning of period                                   739,614              315,993               423,621
          Cash, cash equivalents and restricted cash,
          end of period                                 $       568,702          $   322,530          $    246,172

Cash flow from operating activities


Net cash provided by operating activities increased $142.4 million for the three
months ended March 31, 2022 compared with the three months ended March 31, 2021.
The increase is primarily driven by an increase in cash rental from the addition
of the Venetian Lease to our real estate portfolio in February 2022 and the
annual escalators on our Lease Agreements.

Cash flow from investing activities

Net cash used in investing activities increased $4,060.7 million for the three months ended March 31, 2022 compared to the three months ended March 31, 2021.

In the three months ended March 31, 2022the main sources and uses of cash flow from investing activities included:

• Payments for the acquisition of Venetian for a total cost of $4,012.1 millionincluding acquisition costs;

• Payments to fund part of the Greater Wolf Ready Mezzanine in an amount of
$15.6 million; and

In the three months ended March 31, 2021the main sources and uses of cash flow from investing activities include:

• Product of net maturities of short-term investments of $20.0 million;

• Proceeds from the partial repayment of the amended and restated ROV loan of $20.0 million; and

• Final payment for the financing of a new gaming terrace at the JACK Thistledown Racino in $6.0 million.

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Cash flow from financing activities


Net cash provided by financing activities increased $3,740.8 million for the
three months ended March 31, 2022, compared with the three months ended March
31, 2021.

In the three months ended March 31, 2022the main sources and uses of cash in financing activities included:


•Net proceeds from the sale of an aggregate of $3,219.1 million of our common
stock pursuant to the full physical settlement of the September 2021 Forward
Sale Agreements and March 2021 Forward Sale Agreements;

• Initial draw of $600.0 million on our revolving credit facility;

• Dividend payments of $227.9 million;

• Debt issue costs of $27.3 million;

• Purchase of shares for withholding tax as part of the acquisition of stock-based compensation for employees of $2.7 million; and

•Distribution of $2.1 million non-controlling interest.

In the three months ended March 31, 2021the main sources and uses of cash from financing activities included:

• Dividend payments of $178.0 million;

•Distribution of $2.1 million non-controlling interests; and

• Purchase of shares for withholding tax as part of the acquisition of stock-based compensation for employees of $1.5 million.

Debt

For a summary of our debt obligations at March 31, 2022refer to Note 7 – Indebtedness.


Covenants

Our debt obligations are subject to certain customary financial and protective
covenants that restrict our ability to incur additional debt, sell certain asset
and restrict certain payments, among other things. In addition, these covenants
are subject to a number of important exceptions and qualifications, including,
with respect to the restricted payments covenant, the ability to make unlimited
restricted payments to maintain our REIT status. At March 31, 2022, we were in
compliance with all debt-related covenants.

Distributor policy


We intend to make regular quarterly distributions to holders of shares of our
common stock. Dividends declared (on a per share basis) during the three months
ended March 31, 2022 and 2021 were as follows:

                                                 Three Months Ended March 31, 2022
  Declaration Date              Record Date                Payment Date                      Period                     Dividend
                                                                                   January 1, 2022 - March 31,
   March 10, 2022             March 24, 2022               April 7, 2022                      2022                   $    0.3600


                                                 Three Months Ended March 31, 2021
  Declaration Date              Record Date                Payment Date                      Period                     Dividend
                                                                                   January 1, 2021 - March 31,
   March 11, 2021             March 25, 2021               April 8, 2021                      2021                   $    0.3300


Federal income tax law requires that a REIT distribute annually at least 90% of
its REIT taxable income (with certain adjustments), determined without regard to
the dividends paid deduction and excluding any net capital gains, and that it
pay tax at regular corporate rates to the extent that it annually distributes
less than 100% of its REIT taxable income, determined without regard to the
dividends paid deduction and including any net capital gains. In addition, a
REIT will be required to pay a 4% nondeductible excise tax on the amount, if
any, by which the distributions it makes in a calendar year are less than the
sum of 85% of its ordinary income, 95% of its capital gain net income and 100%
of its undistributed income from prior years.

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We intend to continue to make distributions to our stockholders to comply with
the REIT requirements of the Internal Revenue Code of 1986, as amended (the
"Code"), and to avoid or otherwise minimize paying entity level federal income
or excise tax (other than at any TRS of ours). We may generate taxable income
greater than our income for financial reporting purposes prepared in accordance
with GAAP. Further, we may generate REIT taxable income greater than our cash
flow from operations after operating expenses and debt service as a result of
differences in timing between the recognition of REIT taxable income and the
actual receipt of cash or the effect of nondeductible capital expenditures, the
creation of reserves or required debt or amortization payments.

Significant Accounting Policies and Estimates


A complete discussion of our critical accounting policies and estimates is
included in our   Annual Report on Form 10-K for the year ended December 31,
202    1   and VICI LP's Management's Discussion and Analysis of Financial
Condition and Results of Operations included as an   exhibit to the Current
Report on Form 8-K filed on     April     18    , 2022  . There have been no
significant changes in our critical policies and estimates for the three months
ended March 31, 2022.

© Edgar Online, source Previews

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Multi-crore scam in Haryana, pvt company admins booked: The Tribune India https://nowwashyourhands.com/multi-crore-scam-in-haryana-pvt-company-admins-booked-the-tribune-india/ Sun, 01 May 2022 00:06:00 +0000 https://nowwashyourhands.com/multi-crore-scam-in-haryana-pvt-company-admins-booked-the-tribune-india/ Tribune press service Bhartesh Singh Thakur Chandigarh, April 30 A multi-million dollar scam has surfaced in Grameen Kaushal Yojana of the Haryana State Rural Livelihood Mission (HSRLM). The company contracted for the project is said to have siphoned off crores, while the training center rental deeds and the company’s bank guarantee turned out […]]]>


Tribune press service

Bhartesh Singh Thakur

Chandigarh, April 30

A multi-million dollar scam has surfaced in Grameen Kaushal Yojana of the Haryana State Rural Livelihood Mission (HSRLM). The company contracted for the project is said to have siphoned off crores, while the training center rental deeds and the company’s bank guarantee turned out to be fake.

HSRLM obtains objectives and mandates from the Ministry of Rural Development (MoRD), and it allocates work to various providers and agencies, in addition to monitoring program implementation. ISEE Staffing Solutions Private Limited, Bengaluru, has been contracted for the vocational training of 1,050 rural youths in Haryana on the condition that at least 750 of them find employment within 36 months. The contract was for Rs 8.43 crore.

A Memorandum of Understanding (MoU) was signed between the HSRLM and ISSE Staffing Solutions on September 8, 2021, where Director T Hari Prasad represented the firm.

Vocational training was scheduled to start from November 28, 2021. On October 28, 2021, HSRLM released 25% of the contract amount (Rs 2.09 crore) to the company.

The company was instructed to open a subsidiary zero-balance account and transfer the allocated amount to a State Nodal Account (SNA), in line with new MoRD guidelines. After various reminders and follow-ups, only Rs 50.80 lakh was transferred on December 30, 2021.

As 75% of the total allocated funds were spent within a month, HSRLM officials were suspicious. Some officials visited the company’s respective centers and reportedly found that nothing had been done for regime compliance.

It was found that the rental agreements submitted and approved by HSRLM and the funds transferred to the seller by subletting the property for the training centers were not the same as those submitted at the time of signing the MoU by the Society.

All acts provided by the company have been performed with its own sister companies. Even the bank guarantee of Rs 1.05 crore submitted by the company at the time of signing the MoU was found to be fake, according to a January 28 communication from the Bank of Baroda.

Previously, the company approached the High Court of Punjab and Haryana to obtain the release of the balance. On March 15, the High Court ordered the Panchkula Police to file a situation report. An FIR was registered for alleged criminal breach of trust, cheating, forgery and criminal conspiracy on March 17. Besides ISEE Staffing Solutions, SKV Industrial Associates and Sri Sringeri Education Trust have been named in the FIR along with their directors and representatives.

On April 21, a lower court rejected early bail applications for company director T Hari Prasad, his father-in-law TL Radhapathy (also a company director), his wife TR Sindhuja ( Trustee of the Sri Sringeri Education Trust) and Ms Divya. Prasad (Treasurer of SKV Industrial Associates). The allegations were “extremely serious” and “questioning in police custody may also be required”, the court said.

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OFFICE PROPERTIES INCOME TRUST Management’s Report on Financial Condition and Results of Operations (Form 10-Q) https://nowwashyourhands.com/office-properties-income-trust-managements-report-on-financial-condition-and-results-of-operations-form-10-q/ Thu, 28 Apr 2022 20:43:20 +0000 https://nowwashyourhands.com/office-properties-income-trust-managements-report-on-financial-condition-and-results-of-operations-form-10-q/ The following information should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and with our 2021 Annual Report. OVERVIEW (in thousands of dollars, except per share and per square foot data) We are a real estate investment […]]]>

The following information should be read in conjunction with our condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and with our 2021 Annual Report.

OVERVIEW (in thousands of dollars, except per share and per square foot data)


We are a real estate investment trust, or REIT, organized under Maryland law. As
of March 31, 2022, our wholly owned properties were comprised of 174 properties
and we had noncontrolling ownership interests of 51% and 50% in two
unconsolidated joint ventures that own three properties containing approximately
444,000 rentable square feet. As of March 31, 2022, our properties are located
in 32 states and the District of Columbia and contain approximately 22,941,000
rentable square feet. As of March 31, 2022, our properties were leased to 298
different tenants with a weighted average remaining lease term (based on
annualized rental income) of approximately 6.1 years. The U.S. government is our
largest tenant, representing approximately 19.4% of our annualized rental income
as of March 31, 2022. The term annualized rental income as used herein is
defined as the annualized contractual base rents from our tenants pursuant to
our lease agreements as of March 31, 2022, plus straight line rent adjustments
and estimated recurring expense reimbursements to be paid to us, and excluding
lease value amortization.

The COVID-19 pandemic and the various governmental and market responses intended
to contain and mitigate the spread of the virus and its detrimental public
health impact have had a significant impact on the global economy, including the
U.S. economy. Many of the restrictions that had been imposed in the United
States during the pandemic have since been lifted and commercial activity in the
United States generally has increasingly returned to pre-pandemic practices and
operations. We are continuing to closely monitor the impact of the COVID-19
pandemic on all aspects of our business. To date, the COVID-19 pandemic has not
had a significant adverse impact on our business and we continue to believe that
our financial resources, the characteristics of our portfolio, including the
diversity of our tenant base, both geographically and by industry, and the
financial strength and resources of our tenants, will enable us to withstand the
COVID-19 pandemic.

The ultimate adverse impact of the COVID-19 pandemic is highly uncertain and
subject to change. As a result, we do not yet know the full extent of potential
impacts on our business and operations, our tenants' businesses and operations
or the global economy as a whole. For more information and risks relating to the
COVID-19 pandemic on us and our business, see Part I, Item 1A, "Risk Factors",
of our 2021 Annual Report.

Property Operations

Unless otherwise noted, the data presented in this section includes properties
classified as held for sale as of March 31, 2022 and excludes three properties
owned by two unconsolidated joint ventures in which we own 51% and 50%
interests. For more information regarding our properties classified as held for
sale and our two unconsolidated joint ventures, see Note 3 to our Condensed
Consolidated Financial Statements included in Part I, Item 1 of this Quarterly
Report on Form 10-Q.

Occupancy data for our properties as of March 31, 2022 and 2021 was as follows
(square feet in thousands):

                                                              All Properties (1)                             Comparable Properties (2)
                                                                  March 31,                                          March 31,
                                                        2022                      2021                     2022                      2021
Total properties (3)                                             174                      180                    163                      163
Total rentable square feet (4)                             22,941                   24,568                    20,503                   20,497
Percent leased (5)                                           88.8  %                  90.8  %                   91.2  %                  91.7  %



(1)Based on properties we owned on March 31, 2022 and 2021, respectively.
(2)Based on properties we owned continuously since January 1, 2021; excludes
properties classified as held for sale and properties undergoing significant
redevelopment, if any, and three properties owned by two unconsolidated joint
ventures in which we own 51% and 50% interests.
(3)Includes one leasable land parcel.
(4)Subject to changes when space is remeasured or reconfigured for tenants.
(5)Percent leased includes (i) space being fitted out for tenant occupancy
pursuant to our lease agreements, if any, and (ii) space which is leased, but is
not occupied or is being offered for sublease by tenants, if any, as of the
measurement date.

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The average effective rental rate per square foot of our properties for the three months ended March 31, 2022 and 2021 are as follows:


                                                                      Three 

Months ended March, 31st,

                                                                     2022                      2021

Average effective rental rate per square foot (1):

 All properties (2)                                           $          

$29.40 25.95

 Comparable properties (3)                                    $          

$27.24 26.97




(1)Average effective rental rate per square foot represents annualized total
rental income during the period specified divided by the average rentable square
feet leased during the period specified.
(2)Based on properties we owned on March 31, 2022 and 2021, respectively.
(3)Based on properties we owned continuously since January 1, 2021; excludes
properties classified as held for sale and properties undergoing significant
redevelopment, if any, and three properties owned by two unconsolidated joint
ventures in which we own 51% and 50% interests.

During the three months ended March 31, 2022, changes in rentable square feet
leased and available for lease at our properties were as follows (square feet in
thousands):

                                                                            

Three months completed March 31, 2022

                                                      Leased                          Available for Lease                        Total
Beginning of period                                      20,817                                 2,454                               23,271
Changes resulting from:

Disposition of properties                                  (163)                                 (167)                                (330)
Lease expirations                                          (853)                                  853                                    -
Lease renewals (1)                                          336                                  (336)                                   -
New leases (1)                                              236                                  (236)                                   -

End of period                                            20,373                                 2,568                               22,941


(1) Based on leases entered into during the three months ended March 31, 2022.


Leases at our properties totaling approximately 853,000 rentable square feet
expired during the three months ended March 31, 2022. During the three months
ended March 31, 2022, we entered into new and renewal leases as summarized in
the following table (square feet in thousands):

                                                                     Three 

Months ended March 31, 2022

                                                              New Leases           Renewals            Total
Rentable square feet leased                                         236                336               572
Weighted average rental rate change (by rentable                    6.7  %             3.8  %            5.1  %
square feet)
Tenant leasing costs and concession commitments (1)         $    26,855     

$5,893 $32,748
Tenant Lease Costs and Concession Commitments per Leasable Square Foot (1)

                                    $    113.66           $  17.56          $  57.26
Weighted (by square feet) average lease term (years)               10.4               10.9              10.7

Total lease costs and concession commitments per leasable square foot per year (1)

                           $     10.94     

$1.61 $5.36

(1)Includes commitments made for rental expenses and concessions, such as tenant improvements, rental commissions, tenant reimbursements and free rent.

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During the three months ended March 31, 2022, changes in effective rental rates
per square foot achieved for new leases and lease renewals at our properties
that commenced during the three months ended March 31, 2022, when compared to
prior effective rental rates per square foot in effect for the same space (and
excluding space acquired vacant), were as follows (square feet in thousands):

                                                                        

Three months completed March 31, 2022

                                             Old Effective Rent Per       New Effective Rent Per
                                                Square Foot (1)              Square Foot (1)               Rentable Square Feet
New leases                                   $              8.47          $              7.86                           252
Lease renewals                               $             27.43          $             29.08                           492
Total leasing activity                       $             21.00          $             21.89                           744

(1) Effective rental rates include our tenants’ contractual base rents under our leases, plus estimated straight-line rent adjustments and expense reimbursements payable to us, and exclude depreciation of rental value.


During the three months ended March 31, 2022 and 2021, amounts capitalized at
our properties for lease related costs, building improvements and development,
redevelopment and other activities were as follows:

                                                                        Three Months Ended March 31,
                                                                       2022                      2021

Lease related costs (1)                                        $           8,664          $          6,970
Building improvements (2)                                                  2,783                     4,526
Recurring capital expenditures                                            11,447                    11,496
Development, redevelopment and other activities (3)                       37,524                     4,906
Total capital expenditures                                     $          

48,971 $16,402



(1)Lease related costs generally include capital expenditures used to improve
tenants' space or amounts paid directly to tenants to improve their space and
leasing related costs, such as brokerage commissions and other tenant
inducements.
(2)Building improvements generally include expenditures to replace obsolete
building components and expenditures that extend the useful life of existing
assets.
(3)Development, redevelopment and other activities generally include capital
expenditure projects that reposition a property or result in new sources of
revenue.

In addition to the capital expenditures described above, we contributed $1,070
to one of our unconsolidated joint ventures during the three months ended
March 31, 2022. Also, as of March 31, 2022, we have estimated unspent leasing
related obligations of $128,009, of which we expect to spend $78,134 over the
next 12 months.

As of March 31, 2022, we had leases at our properties totaling approximately
1,482,000 rentable square feet that were scheduled to expire through March 31,
2023. As of April 27, 2022, we expect tenants with leases totaling approximately
543,000 rentable square feet that are scheduled to expire through March 31,
2023, to not renew their leases upon expiration and we cannot be sure as to
whether other tenants will renew their leases upon expiration. As a result of
the COVID-19 pandemic, its economic impact and the uncertainty of whether
certain market practices and trends in response to the pandemic will be
sustained or increased, overall leasing activity has been volatile and may
remain so until office property market conditions meaningfully improve and
stabilize for a sustained period. However, we remain focused on proactive
dialogues with our existing tenants and overall tenant retention. Prevailing
market conditions and government and other tenants' needs at the time we
negotiate and enter leases or lease renewals will generally determine rental
rates and demand for leased space at our properties, and market conditions and
our tenants' needs are beyond our control. Whenever we renew or enter into new
leases for our properties, we intend to seek rents which are equal to or higher
than our historical rents for the same properties; however, our ability to
maintain or increase the rents for our current properties will depend in large
part upon market conditions, which are beyond our control. We cannot be sure of
the rental rates which will result from our ongoing negotiations regarding lease
renewals or any new or renewed leases we may enter; also, we may experience
material declines in our rental income due to vacancies upon lease expirations
or early terminations or lower rents upon lease renewal or reletting.
Additionally, we may incur significant costs to renew our leases with current
tenants or lease our properties to new tenants.

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As of March 31, 2022, our lease expirations by year are as follows (square feet
in thousands):

                                                                                                                                         Annualized
                                 Number of Leases                  Leased                   Percent of            Cumulative            Rental Income         Percent of            Cumulative
         Year (1)                    Expiring             Square Feet Expiring (2)            Total            Percent of Total           Expiring               Total           Percent of Total
2022                                       53                       1,167                         5.7  %                  5.7  %       $     28,607                 5.0  %                  5.0  %
2023                                       63                       2,531                        12.4  %                 18.1  %             82,679                14.5  %                 19.5  %
2024                                       55                       3,232                        15.9  %                 34.0  %             85,660                15.0  %                 34.5  %
2025                                       48                       2,122                        10.4  %                 44.4  %             45,395                 7.9  %                 42.4  %
2026                                       39                       1,831                         9.0  %                 53.4  %             48,635                 8.5  %                 50.9  %
2027                                       33                       1,926                         9.5  %                 62.9  %             50,265                 8.8  %                 59.7  %
2028                                       17                       1,288                         6.3  %                 69.2  %             50,050                 8.7  %                 68.4  %
2029                                       20                       1,038                         5.1  %                 74.3  %             30,196                 5.3  %                 73.7  %
2030                                       14                         520                         2.6  %                 76.9  %             15,562                 2.7  %                 76.4  %
2031 and thereafter                        50                       4,718                        23.1  %                100.0  %            134,980                23.6  %                100.0  %
Total                                     392                      20,373                       100.0  %                               $    572,029               100.0  %

Weighted average remaining lease term (in years)                    5.9                                                                      6.1



(1)The year of lease expiration is pursuant to current contract terms. Some of
our leases allow the tenants to vacate the leased premises before the stated
expirations of their leases with little or no liability. As of March 31, 2022,
tenants occupying approximately 4.2% of our rentable square feet and responsible
for approximately 4.6% of our annualized rental income as of March 31, 2022
currently have exercisable rights to terminate their leases before the stated
terms of their leases expire. Also, in 2022, 2023, 2024, 2025, 2026, 2027, 2028,
2029, 2030, 2031, 2035, 2037 and 2040, early termination rights become
exercisable by other tenants who currently occupy an additional approximately
1.1%, 2.9%, 2.6%, 3.9%, 1.2%, 0.7%, 1.2%, 0.5%, 0.7%, 0.1%, 0.4%, 0.1% and 0.3%
of our rentable square feet, respectively, and contribute an additional
approximately 1.2%, 4.0%, 2.9%, 7.6%, 1.5%, 1.2%, 1.4%, 1.0%, 0.8%, 0.1%, 0.5%,
0.2% and 0.4% of our annualized rental income, respectively, as of March 31,
2022. In addition, as of March 31, 2022, pursuant to leases with 14 of our
tenants, these tenants have rights to terminate their leases if their respective
legislature or other funding authority does not appropriate rent amounts in
their respective annual budgets. These 14 tenants occupy approximately 6.0% of
our rentable square feet and contribute approximately 6.8% of our annualized
rental income as of March 31, 2022.
(2)Leased square feet is pursuant to leases existing as of March 31, 2022, and
includes (i) space being fitted out for tenant occupancy pursuant to our lease
agreements, if any, and (ii) space which is leased, but is not occupied or is
being offered for sublease by tenants, if any. Square feet measurements are
subject to changes when space is remeasured or reconfigured for new tenants.

We generally will seek to renew or extend the terms of leases at properties with
tenants when they expire. Because of the capital many of our single tenants have
invested in the properties they lease from us and because many of these
properties appear to be of strategic importance to such tenants' businesses, we
believe that it is likely that these tenants will renew or extend their leases
prior to when they expire. However, recent shifts in workplace practices,
including as a result of the COVID-19 pandemic, have resulted in a significant
increase in alternative work arrangements, including work from home practices.
It is uncertain to what extent and how long work from home arrangements may
continue, or if other hybrid work arrangements will continue or increase.
Despite these shifts in workplace practices, our recent leasing activity and
negotiations for vacant or expiring space may suggest that there is an improving
demand environment for office space. However, if these arrangements continue or
increase, our tenants may not seek to renew or extend their leases when they
expire, or may seek to renew their leases for less space than they currently
occupy. If we are unable to extend or renew our leases, or we renew leases for
reduced space, it may be time consuming and expensive to relet some of these
properties.

We believe that recent government budgetary and spending priorities and
enhancements in technology have resulted in a decrease in government office use
for employees. Furthermore, over the past several years, government tenants have
reduced their space utilization per employee and consolidated government tenants
into existing government owned properties. This activity has reduced the demand
for government leased space. Our historical experience with respect to
properties of the type we own that are majority leased to government tenants has
been that government tenants frequently renew leases to avoid the costs and
disruptions that may result from relocating their operations. However, efforts
to manage space utilization rates may result in our tenants exercising early
termination rights under our leases, vacating our properties upon expiration of
our leases in order to relocate, or renewing their leases for less space than
they currently occupy. Also, our government tenants' desire to reconfigure
leased office space to manage utilization per employee may require us to spend
significant amounts for tenant improvements, and tenant relocations are often
more prevalent in those circumstances. Increasing uncertainty with respect to
government agency budgets and funding to implement relocations, consolidations
and reconfigurations has resulted in delayed decisions by some of our government
tenants and their reliance on short term lease renewals; however, activity prior
to the outbreak of the COVID-19 pandemic suggested that the U.S. government had
begun to shift its leasing strategy to include longer term leases and was
actively exploring 10 to 20 year lease terms at renewal, in some instances.
However, the COVID-19

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pandemic and its aftermath have had negative impacts on government budgets and
resources. Although there have been indications that certain of those impacts
may not have been as negative as originally expected, it is unclear what the
effect of these impacts will be on government demand for leasing office space.
Given the significant uncertainties, including as to the COVID-19 pandemic and
its economic impact and the extent to which certain market trends, such as work
from home practices, may continue or increase, we are unable to reasonably
project what the financial impact of market conditions or changing government
circumstances will be on the demand for leased space at our properties and our
financial results for future periods.

As of March 31, 2022, we derive 22.2% of our annualized rental income from our
properties located in the metropolitan Washington, D.C. market area, which
includes Washington, D.C., Northern Virginia and suburban Maryland. A downturn
in economic conditions in this area could result in reduced demand from tenants
for our properties or reduce the rents that our tenants in this area are willing
to pay when our leases expire or terminate and when renewal or new terms are
negotiated. Additionally, in recent years there has been a decrease in demand
for new leased office space by the U.S. government in the metropolitan
Washington, D.C. market area, and that could increase competition for government
tenants and adversely affect our ability to retain government tenants when our
leases expire.

Our manager, RMR, employs a tenant review process for us. RMR assesses tenants
on an individual basis based on various applicable credit criteria. In general,
depending on facts and circumstances, RMR evaluates the creditworthiness of a
tenant based on information concerning the tenant that is provided by the tenant
and, in some cases, information that is publicly available or obtained from
third party sources. We consider investment grade tenants to include: (a)
investment grade rated tenants; (b) tenants with investment grade rated parent
entities that guarantee the tenant's lease obligations; and/or (c) tenants with
investment grade rated parent entities that do not guarantee the tenant's lease
obligations. As of March 31, 2022, tenants contributing 52.6% of annualized
rental income were investment grade rated (or their payment obligations were
guaranteed by an investment grade rated parent) and tenants contributing an
additional 11.0% of annualized rental income were subsidiaries of an investment
grade rated parent (although these parent entities were not liable for the
payment of rents).

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From March 31, 2022tenants representing 1% or more of our total annualized rental income were as follows (square feet in thousands):

                                                                                                                                               % of Total
                                                                                                  % of Leased           Annualized          Annualized Rental
                   Tenant                         Credit Rating                 Sq. Ft.             Sq. Ft.           Rental Income              Income
  1    U.S. Government                           Investment Grade               4,100                   20.1  %       $   110,949                      

19.4%

  2    Alphabet Inc. (Google)                    Investment Grade                 386                    1.9  %            23,713                      

4.1%

  3    Shook, Hardy & Bacon L.L.P.                  Not Rated                     596                    2.9  %            19,187                      

3.4%

  4    IG Investments Holdings LLC                  Not Rated                     333                    1.6  %            15,991                      

2.8%

  5    Bank of America Corporation               Investment Grade                 577                    2.8  %            15,766                       2.8  %
  6    State of California                       Investment Grade                 523                    2.6  %            15,696                       2.7  %
  7    Commonwealth of Massachusetts             Investment Grade                 311                    1.5  %            12,260                       2.1  %
  8    CareFirst Inc.                               Not Rated                     207                    1.0  %            11,498                       2.0  %
  9    Northrop Grumman Corporation              Investment Grade                 337                    1.7  %            11,465                       2.0  %
 10    Tyson Foods, Inc.                         Investment Grade                 248                    1.2  %            11,042                       1.9  %

Sonesta International Hotels

 11    Corporation (1)                              Not Rated                     230                    1.1  %            10,745                      

1.9%

 12    CommScope Holding Company Inc           Non Investment Grade               228                    1.1  %             9,370                       1.6  %
 13    State of Georgia                          Investment Grade                 308                    1.5  %             7,383                       1.3  %
 14    PNC Bank                                  Investment Grade                 441                    2.2  %             6,924                       1.2  %
 15    Micro Focus International plc           Non Investment Grade               215                    1.1  %             6,905                       1.2  %
 16    Compass Group plc                         Investment Grade                 267                    1.3  %             6,703                       1.2  %
 17    ServiceNow, Inc.                          Investment Grade                 149                    0.7  %             6,637                       1.2  %
 18    Allstate Insurance Co.                    Investment Grade                 468                    2.3  %             6,479                      

1.1%

Automatic data processing,

 19    Inc.                                      Investment Grade                 289                    1.4  %             6,087                      

1.1%

 20    Church & Dwight Co., Inc.                 Investment Grade                 250                    1.2  %             6,037                       1.1  %

       Total                                                                   10,463                   51.2  %       $   320,837                      56.1  %


(1)In June 2021, we entered into a 30-year lease with Sonesta. The lease relates
to the redevelopment of a property we own in Washington, D.C to a mixed use and
Sonesta's lease relates to the planned hotel component of the property. The term
of the lease commences upon our delivery of the completed hotel, which is
estimated to occur in the first quarter of 2023. For more information about our
lease with Sonesta, see Note 10 to our Condensed Consolidated Financial
Statements included in Part I, Item I of this Quarterly Report on Form 10-Q.

Disposal activities

In the three months ended March 31, 2022we sold four properties of approximately 330,000 leasable square feet for a total selling price of
$29,470excluding closing costs.


We continue to evaluate our portfolio to strategically recycle capital and are
currently in various stages of marketing for sale more than 30 properties
containing over 3,000,000 rentable square feet. As of April 27, 2022, we have
entered into agreements to sell two properties containing approximately 470,000
rentable square feet, including one property that was classified as held for
sale as of March 31, 2022, for an aggregate sales price of $38,300, excluding
closing costs. These sales are expected to occur before the end of the second
quarter of 2022. However, these sales are subject to conditions; accordingly, we
cannot be sure that we will complete these sales or that these sales will not be
delayed or the terms will not change.

For more information on our disposal activities, see Note 3 to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Fundraising activities

In April 2022we prepaid, at par plus accrued interest, a mortgage note secured by property with an outstanding principal balance of $24,863an annual interest rate of 4.22% and a maturity in July 2022 using cash on hand.

Segment information

We operate in one line of business: the ownership of real estate.

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© Edgar Online, source Previews

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Service restoration indicates the essential qualities of a good water damage restoration company https://nowwashyourhands.com/service-restoration-indicates-the-essential-qualities-of-a-good-water-damage-restoration-company/ Wed, 27 Apr 2022 07:14:01 +0000 https://nowwashyourhands.com/service-restoration-indicates-the-essential-qualities-of-a-good-water-damage-restoration-company/ Service Restoration is a leading company offering many disaster restoration services. In a recent update, the agency shared the essential qualities of a good water damage restoration company. Minneapolis, Minnesota – April 27, 2022 – In an article on the website, Service Restoration declared the qualities of an excellent water damage restoration company. A good […]]]>

Service Restoration is a leading company offering many disaster restoration services. In a recent update, the agency shared the essential qualities of a good water damage restoration company.

Minneapolis, Minnesota – April 27, 2022 – In an article on the website, Service Restoration declared the qualities of an excellent water damage restoration company.

A good water restoration company in minneapolis must be properly equipped to be in a better position to handle all the mess. The company will not have to rent equipment because it already has the required equipment. They should be equipped with rails and portable water extraction units, fans and dehumidifiers.

Another critical aspect of a professional Restoration after water damage in Minneapolis company is its availability. A reliable water restoration company should be available 24/7 because water damage is not something anyone plans for. In fact, in most cases, it happens when you least expect it. Remember that waiting a long time to access water restoration services can cost a lot of money due to loss of property.

Professionalism is key to finding good water damage restoration services in minneapolis. It is expected that such a company would have the necessary knowledge to handle all issues related to flooding. You can tell the professionalism of a company by looking at their certifications and seeing their plan to solve a problem.

About service restoration

Restoration of services is an IICRC certified company specializing in a wide range of disaster restoration services. Service Restoration provides water, fire, storm and crime scene damage restoration and works with sewer and mold issues. The catering team has years of experience and invests in the latest state-of-the-art technology and equipment to provide reliable services. Disaster restoration experts guarantee a 60-minute response time, free estimates, 24/7 availability, 365 days a year.

Media Contact
Company Name: Restoration of services
Contact person: Dan Schmidt
E-mail: Send an email
Call: (612) 260-2500
Address:1909 Nicollet Avenue
City: Minneapolis
State: MN
Country: United States
Website: https://servicerestoration.com/minneapolis-mn/

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Why is the majority of leased federal offshore waters not producing? | Rigzone https://nowwashyourhands.com/why-is-the-majority-of-leased-federal-offshore-waters-not-producing-rigzone/ Mon, 25 Apr 2022 08:29:34 +0000 https://nowwashyourhands.com/why-is-the-majority-of-leased-federal-offshore-waters-not-producing-rigzone/ According to the Department of the Interior (DOI), of the more than 11 million acres of federal offshore waters already under lease in the United States, 75.58%, or 8.29 million acres, are non-productive. . When asked why this is the case, National Ocean Industries Association President Erik Milito told Rigzone that it takes time and […]]]>

According to the Department of the Interior (DOI), of the more than 11 million acres of federal offshore waters already under lease in the United States, 75.58%, or 8.29 million acres, are non-productive. .

When asked why this is the case, National Ocean Industries Association President Erik Milito told Rigzone that it takes time and capital to develop an offshore oil and gas lease and said that there was no guarantee that a lease block would contain commercially viable quantities of hydrocarbons.

“Oil and gas discovery is a prospective business and companies must tap into a large network of lease blocks to identify and develop commercially viable discoveries. Non-performing leases are not “inactive”. Just because there’s no surface activity in a rental block doesn’t mean it’s ‘inactive,’” Milito said.

“Companies routinely bid on and win many leases based on a single concept or geological model, but underground geological structures rarely exactly match surface lease blocks on the map. Energy companies may have to re-examine their seismic data or develop a new geological model during the term of the lease, which takes time,” Milito added.

“Under no circumstances is the Lease Block idle and the more Lease Blocks a company has to explore, the greater the likelihood that it will find commercially viable quantities of hydrocarbons which it can then produce for the benefit of our nation. Internationally, data shows that offshore companies continue to drill dry holes during the exploration of new resources, costing tens of millions of dollars, sometimes exceeding $100 million, with each well failing,” a- he continued.

When asked the same question, Leslie Beyer, chief executive of the Energy Workforce and Technology Council, told Rigzone that not all leases are guaranteed to be productive and pointed out that offshore is much more capital intensive and takes more time to move from investment to construction. go out and produce.

Also responding to the question, Dominika Rzechorzek, oil and gas analyst at Fitch Solutions, said securing an offshore lease is one of the first steps in developing an upstream project.

“Additional studies and exploratory work on the area of ​​the lease, after it has been secured, are common before determining other future investments. Typically, the time to first production after getting a lease takes years rather than months for offshore acreage, so…many leases may be in the early stages,” Rzechorzek told Rigzone .

“Our federal acreage analysis for the last three licensing years (2018-2020) places approximately 4.6 million acres in the very early stages of exploration, or about half of the 8.29 million acres of non-performing leases … mentioned [above]added Rzechorzek.

The Fitch Solutions analyst also noted that exploration and production projects in the United States, including offshore, are subject to strict regulatory and environmental standards and, therefore, must obtain a number of permits. various agencies and regulators before actual drilling or full-scale production can begin.

Another group of active, non-performing leases are leases that see owners delay exploration and production activities in response to factors such as market conditions and/or changing corporate strategies, pointed out. Rzechorzek.

“Offshore exploration and production projects tend to be capital intensive and time consuming, making them susceptible to changes in market sentiment, changes in the regulatory or legal framework, including tougher environmental standards “said the analyst.

How do companies use their list of federal offshore leases?

According to Milito, a whole symphony of companies, engineers, scientists and experts are embarking on the sorting, valuation, exploration and development of offshore lease blocks.

“It takes time and significant investment to explore and develop an offshore lease block. Investment costs for offshore exploration and development are significant, with total project costs routinely running into the billions of dollars,” he said.

“Typically, it takes years of development, including several years of seismic exploration, a year or more to contract and schedule a drilling rig for an exploration well, and then up to 10 months to complete. the exploration well, then another two to three years for other drilling, then a few more years for the installation of the facilities,” Milito added.

“However, leases near existing production facilities can be put into production quite quickly – perhaps within 12 months – due to known geology and reserves, and the ability to drill the well of safe and efficient way and link it to the existing installation. ,” he continued

All the while, in addition to bidding potentially millions of dollars for each rental block, companies are paying rent to the federal government on non-performing leases, Milito said.

“Annual rental rates can cost hundreds of thousands of dollars per rental block. Companies are also required under federal lease regulations to develop a lease quickly or return it to the government,” Milito added.

“Rental fees are essentially fees paid for having a non-productive lease. In general, leases that do not produce at the end of their term are returned to the government, which can then re-let them and generate additional revenue. The resources invested by the company to acquire and maintain the lease are lost if the lease is returned to the government,” he continued.

Rzechorzek pointed out that exploration and production companies are pursuing strong seismic studies and exploration work to determine the potential of each lease.

“If the company encounters hydrocarbons during the exploration phase, the company further assesses the commercial viability of the discovery. Concessions adjacent to existing fields or sharing a similar geological structure are likely reduced by existing development projects , but would still require significant exploration effort to confirm commercial reserves,” the analyst said.

“Leases adjacent to existing generation infrastructure could offer the possibility of connections if the distances involved were both technically and commercially viable. On the other hand, frontier acreage, with little to no existing exploration and infrastructure, could offer higher return and riskier opportunities and could provide first mover advantage,” Rzechorzek said.

“Companies seek either ‘risk-free’ leases or more frontier opportunities depending on a number of things including market sentiment, oil price forecasts and specific company strategy, among others,” the analyst continued.

Rules and regulations

A White House fact sheet last month pointed out that President Biden was calling on Congress “to make companies pay royalties on wells in their leases that they haven’t used in years.”

According to the fact sheet, businesses that produce from their leased acres and existing wells will not face higher fees, but businesses that “continue to sit on non-producing acres will have to choose to start producing or pay a fee for each inactive”. well and unused acre”.

Although Rigzone asked both the DOI and the Department of Energy whether the rule would apply to offshore federal waters, it is unclear at the time of writing whether or not it would.

When asked how a rule requiring companies to pay fees on wells from offshore federal leases they haven’t used in years would impact production in U.S. offshore federal waters in the short and In the long term, Rzechorzak said Fitch Solutions would need more details to assess the impact of such a rule.

“In our view, however, tighter regulations for U.S. oil and gas producers would further weaken investor sentiment and could lead to lower capital spending across the board, both on land and in federal waters,” the analyst said.

“It would likely impact long-term production, given the time it takes to bring a well online. In the short term, production could see some increase, if producers had a number of wells in the later stages of the development process, which could be expedited to avoid fines,” Rzechorzak added.

“However, the overall impact depends on the details of such a rule, including the costs of fees associated with abandoning the well or restarting production,” Rzechorzak continued.

When asked the same question, Milito noted that some of the budget items announced by the Biden administration could dramatically change the country’s offshore energy outlook.

“They include punitive tax measures that would fundamentally weaken one of the United States’ most important economic, energy, emissions, and national security assets. By increasing the cost of operating in the United States, you encourage investment dollars to go elsewhere and you will end up moving energy production away from the United States,” Milito said.

“Time and time again we have seen how moving production out of the United States does not address energy demand and reducing emissions, it is just a gift to the growers most emitters, not to mention bad actors like Russia which uses its energy resources as geopolitics. tool,” he added.

“Given the dire geopolitical situation highlighted by the Russian invasion of Ukraine, policymakers must bring the conversation and decision-making back to reality and collaborate on policies that promote national security through oil production and of gas in the United States, while advancing technologies to continually reduce emissions,” Milito continued.

Responding to the question, Beyer said, “Instead of calling on Congress to create new taxes and levies targeting energy production in the United States and release additional oil from our emergency reserves, we urge the president to direct the DOI to immediately restart the federal leasing program, as already required by law, and to sit down and have a constructive discussion with U.S. energy producers about steps we can take to work together to provide America and our allies with true energy security”.

Rigzone showed this article to the DOI asking if the organization would like to send a comment for inclusion. The DOI has chosen not to provide comment.

To contact the author, send an e-mail andreas.exarheas@rigzone.com

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Century approves free rent and short-term lease with startup transportation company: NorthEscambia.com https://nowwashyourhands.com/century-approves-free-rent-and-short-term-lease-with-startup-transportation-company-northescambia-com/ Thu, 21 Apr 2022 13:45:18 +0000 https://nowwashyourhands.com/century-approves-free-rent-and-short-term-lease-with-startup-transportation-company-northescambia-com/ The City of Century has approved a three-month rent-free lease with a startup transportation company. On Tuesday evening, the council approved the lease with Metro Rapid Transport and their for-profit medical and other non-emergency transportation services business. The city will review the lease before it ends and consider options for the future; there is no […]]]>

The City of Century has approved a three-month rent-free lease with a startup transportation company.

On Tuesday evening, the council approved the lease with Metro Rapid Transport and their for-profit medical and other non-emergency transportation services business.

The city will review the lease before it ends and consider options for the future; there is no automatic renewal or extension. During the three months, the company will have to pay for utilities, but the city does not currently have a separate electric meter for the 1,000 square foot portion of the building leased by Metro Rapid.

The board unanimously approved the zero dollar lease for the first three months. In February, the council received a business plan from Metro Rapid that indicated the company had budgeted $20,000 for a facility rental, plus $25,000 to renovate the facility.

“I don’t want to deprive Century of the benefit of having a public transit system,” Council Chairman Luis Gomez, Jr. said.

“After the three months, we come back to council and make it clear how much we’re doing on this lease right now and how much we can afford,” owner Trina James-Tanner said. “The century is small. There’s not a lot of money going through. So it’s not like I’m going to jump in and start making a thousand dollars a day from what I do.

“I try to help the elderly. I try to help the handicapped. So if you all could work with me that would be great, she added.

City Attorney Matt Dannheisser, who drafted the lease, refrained from suggesting a dollar amount for the lease, citing insufficient knowledge of the Century Business Center.

Dannheisser said in an email that he was instructed to refrain from including any requirements that Metro Rapid’s principal landlords personally guarantee rent and other obligations. The city did not do any due diligence on the owners of the business.

“Please recognize that because Metro Rapid is a new company (having been established in December 2021) it may have few assets. Similarly, in the event of breach of any of the terms of the lease (including, for example, breach of the insurance or indemnification requirements of Sections 11 and 12), the City may have difficulty in effectively enforcing its rights under the lease,” Dannheisser warned.

Under the lease, Metro Rapid accepts the premises “as is”, with the city assuming no responsibility for repairs or alterations.

Metro Rapid also has the non-exclusive right to use the paved parking surfaces and driveway. The lease also allows the company to use part of the property east of the Century Business Center as a bus parking area, but buses and other vehicles are not permitted in the Century Business Center at any time. Their use is limited to overnight and temporary parking for less than 12 hours. They are not authorized to make repairs or maintain vehicles on the property.

Metro Rapid must also maintain liability insurance with limits of at least $1 million per person or $2 million for injuries to more than one person and $250,000 for property damage.

Metro Rapid Transport plans to operate 18 hours a day, six days a week, in accordance with its business plan and to be based in the “North Pensacola area”.

The proposed fares for the service are $2.50 “in town” or $5 round trip. For “out of town” rides, it will cost $45 for the first 30 miles ($90 round tip) plus 20 cents per additional mile, according to the company’s undated business plan submitted to the city.

Metro Transit estimates that nearly $4.2 million is needed to establish and maintain service for three years. The plan says they were able to generate about $8,000 in home equity from the owner, are applying for state funding, and are working to establish a line of credit with the Navy Federal Credit Union. .

Pictured: Trina James-Tanner, owner of Metro Rapid Transport, addresses Century City Council. Photos from NorthEscambia.com, click to enlarge.

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