MGM Growth Properties Continue Long Term Strategy In First Quarter 2020

MGM Growth Properties Continue Long Term Strategy In First Quarter 2020

The highly anticipated MGM Growth Properties quarterly financial report has been released today for the months of January through March 2020 and the firm reports a net loss of $49.7 million.

The report from the firm, a real estate investment trust, states that for the first quarter of this year, the majority of which was dominated by the Covid-19 pandemic, it has a rental revenue of just over 200 million dollars, general and administrative expenses of almost 5 million dollars and income from ‘unconsolidated affiliate’ of just over thirteen million dollars.

Chief executive officer of MGM Growth Properties James Stewart commented on the report and figures:

“In the first quarter of 2020 we continued to execute on our long-term strategy with the investment in the MGP BREIT Venture, which was immediately accretive to adjusted AFFO and added an iconic Las Vegas Strip resort to our portfolio.”

Stewart concluded with details of the company’s activities relating to the figures, including the current ongoing Coronavirus crisis:

“While we are also cognizant of the severe and unique challenges the COVID-19 pandemic is having on global and domestic economies, we are pleased that our tenant has continued to make rental payments in full and on time and based upon its publicly reported liquidity position, we believe our tenant’s liquidity position is sufficient to cover its expected rental obligations.”

Andy Chien, MGM’s chief financial officer also spoke out about the results by highlighting the firm’s main focus of strong balance sheet maintenance through the crisis and described the position the company is in:

“We remain focused on maintaining a strong balance sheet through this challenging economic environment. With $1.8 billion of available liquidity and no debt maturities until 2023, we are well positioned to meet our financial commitments and, at the appropriate time, allocate capital to continue creating value for our shareholders.”

During the first quarter,  MGM Growth Properties closed the sale of Mandalay Bay and its investment in Blackstone Real Estate Investment Trust.

You can view the full report here.

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