MGM Growth Properties posts dividend rise

During the third quarter of the year, MGM Growth Properties posted a dividend increase, as shown in the company’s financial report.

US.- MGM Growth Properties shared its third-quarter financial results and revealed a solid performance. They reached US$22.5 million in net income attributable to class A shareholders, or US$0.24 per diluted share. It posted a backdrop of US$219.8 million worth of rental revenue and adjusted EBITDA of US$232.6m.

“We are excited about the growth opportunities available to us in the market right now,” CEO James Stewart said. “Moreover to continue to evaluate numerous prospects in the gaming and leisure spaces using a disciplined approach focused on sustainable, long-term value creation.”

“Our net leverage provides for ample flexibility and significant liquidity to fund future transactions accretively,” CFO Andy Chien added. “We have utilized interest rate swaps to fix interest expense and now 93% of our debt is fixed rate. This is another example of executing on our long-term business strategy of delivering long-term growth for our shareholders by creating a stable and predictable stream of cash flows and opportunistically tapping the capital markets to hedge interest rate risk.”

Recent MGM deals

MGM Resorts International announced this week that it has agreed on the sale of two casinos in the Las Vegas Strip. MGM and the Blackstone Group will create a joint venture to purchase the Bellagio. They’ll then lease it back to an MGM subsidiary for US$245 million each year. The company is also selling the Circus Circus for US$825 million to Treasure Island casino owner Phil Ruffin.

In the joint venture, MGM Resorts will have a 5% ownership stake and US$4.2 billion in cash. Between the Bellagio transaction and the pending Circus Circus sale, the Company is expecting to receive gross proceeds of approximately US$5 billion and estimated net cash proceeds (including expected transaction costs) of US$4.3 billion.