MGM Growth Properties

MGM Growth Properties LLC is a real estate investment trust based in Summerlin South, Nevada, that invests in large-scale destination entertainment and leisure resorts. The company has whole or majority ownership of 15 properties, all of which are operated by MGM Resorts International. The company leases the properties to MGM Resorts International via NNN leases and receives annual payments of $756.7 million.[1]

MGM Growth Properties LLC
TypePublic company
NYSE: MGP
FoundedOctober 23, 2015 (2015-10-23)
Headquarters
Summerlin South, Nevada
,
United States
Key people
Paul Salem, Chairman
James C. Stewart, CEO
Revenue $881 million (2019)
$275 million (2019)
Total assets $11.910 billion (2019)
Total equity $6.898 billion (2019)
OwnerMGM Resorts International (63.7%)
Websitemgmgrowthproperties.com
Footnotes / references
[1]

History

The company was formed on October 23, 2015.[1]

On April 25, 2016, the company became a public company via an initial public offering and acquired The Mirage, Mandalay Bay, Luxor Las Vegas, New York-New York Hotel and Casino, Monte Carlo Resort and Casino, Excalibur Hotel and Casino, The Park, Gold Strike Tunica, MGM Grand Detroit, and Beau Rivage from MGM Resorts International.[2][3]

On August 1, 2016, the company acquired the real estate assets related to the Borgata Hotel Casino and Spa from MGM.[4]

In September 2017, the company acquired MGM National Harbor for $1.2 billion.[5][6][7]

In July 2018, MGP bought Northfield Park, a racino in Ohio, for $1.02 billion. Hard Rock International remained as the property's manager.[8] In January 2019, the company bought another racino, Yonkers Raceway & Empire City Casino, for $625 million, and leased it to MGM Resorts.[9][10] On April 1, 2019, MGM Growth's majority owner, MGM Resorts International, bought the Rocksino's operating business from MGM Growth for $275 million in stock, assumed control from Hard Rock, and rebranded the property as MGM Northfield Park.[11][12] MGM Resorts leased the property from MGM Growth for initial rent of $60 million per year.[13]

In February 2020, MGP formed a joint venture with the Blackstone Real Estate Income Trust to own the real estate of Mandalay Bay and MGM Grand Las Vegas. The joint venture paid $2.1 billion to MGP for Mandalay Bay, and $2.4 billion to MGM Resorts for the MGM Grand. MGP took 50.1 percent ownership of the joint venture.[14][15][16]

Properties

References
  1. "MGM Growth Properties LLC 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "MGM Resorts International Announces Pricing Of Initial Public Offering By MGM Growth Properties LLC" (Press release). PR Newswire. April 19, 2016.
  3. Driebusch, Corrie (April 19, 2016). "MGM Growth Properties Raises $1.05 Billion in IPO". The Wall Street Journal.
  4. "MGM Growth Properties LLC and MGM Resorts International Complete Transactions for Acquisition of Borgata Hotel Casino & Spa" (Press release). PR Newswire. August 1, 2016.
  5. "MGM Resorts International And MGM Growth Properties LLC Announce Transaction On MGM National Harbor Casino Resort" (Press release). PR Newswire. September 5, 2017.
  6. Neibauer, Michael (September 5, 2017). "MGM National Harbor is changing hands — sort of — for nearly $1.2B". American City Business Journals.
  7. Velotta, Richard N. (September 5, 2017). "MGM subsidiary buying Maryland casino; $1B share repurchase OK'd". Las Vegas Review-Journal.
  8. Exner, Rich (July 11, 2018). "MGM Growth Properties closes $1.06 billion purchase of Hard Rock Rocksino". The Plain Dealer.
  9. Kinney, Jim (January 30, 2019). "MGM finalizes $850 million deal for Empire City Casino in Yonkers, New York". The Republican.
  10. "MGM Resorts International and MGM Growth Properties complete transaction to acquire Empire City Casino in Yonkers, New York" (Press release). MGM Resorts International. January 29, 2019 – via PR Newswire.
  11. Suttell, Scott (April 1, 2019). "With deal closing, the Hard Rock Rocksino officially becomes MGM Northfield Park". Crain Communications.
  12. Stutz, Howard (September 19, 2018). "MGM Resorts entering Ohio through acquisition of Hard Rock Rocksino operations". CDC Gaming Reports.
  13. "MGM Resorts International and MGM Growth Properties LLC announce agreement for Hard Rock Rocksino in Northfield, Ohio" (Press release). MGM Resorts International. September 19, 2018.
  14. "MGM Resorts, MGM Growth Properties and Blackstone Real Estate Income Trust announce completion of MGP/BREIT joint venture's acquisition of the MGM Grand Las Vegas and Mandalay Bay real estate for $4.6 billion" (Press release). MGM Resorts International. February 14, 2020. Retrieved 2020-10-03 – via PR Newswire.
  15. Sayre, Katherine; Gottfried, Miriam; Lombardo, Cara (January 14, 2020). "MGM Resorts Agrees to Sell MGM Grand, Mandalay Bay to Joint Venture Including Blackstone". The Wall Street Journal. Retrieved January 14, 2020.
  16. "MGM Resorts selling MGM Grand, Mandalay Bay for about $2.5B". Associated Press. January 14, 2020. Retrieved January 14, 2020.

Official website

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