Casino hotel real estate investment firm MGM Growth Properties has today announced details and figures for the second quarter of 2020 operation as rental revenue reaches almost 200 million dollars despite the global Covid-19 pandemic.
The quarter results ended in June 2020 and the company stated that despite the economic challenges brought about by Coronavirus, MGM Growth Properties continued to receive rental payments in full and on time.
MGM Growth Properties, established in 2015, currently owns multiple casino properties including: Las Vegas Strip casino resort The Mirage, luxury casino Mandalay Bay, Egypt inspired Luxor Las Vegas and world-renowned MGM Grand Detroit.
In addition, the company continued to execute its strategy of shareholder return and added two members to its Board of Directors.
James Stewart of MGM Growth Properties commented on the report and explained the figures in detail:
“Despite the economic challenges brought by the COVID-19 pandemic, we continue to receive our rental payments in full and on time. In the second quarter of 2020, we continued to execute on our strategy of returning value to shareholders via the accretive redemption of 30.3 million Operating Partnership units, which allowed us to increase our dividend for the eleventh time in four years.
We also have an opportunity for further accretion through the agreement to redeem an additional $700 million worth of units from MGM. In addition, we welcomed two new members to our Board of Directors and we look forward to leveraging their broad real estate and transaction expertise to further drive our business strategy in the coming years.”
For the second quarter of 2020, the company received rental payments of more than two-hundred million dollars despite the unprecedented times relating to the global health crisis.
Andy Chien, also of MGM Growth Properties spoke out about the second quarter operations:
“During the second quarter, we successfully completed the issuance of $800 million in aggregate principal amount of 4.625% senior notes due 2025.
The offering permanently finances the initial redemption and was upsized from the initial offering of $500 million in light of significant investor demand.
This transaction provided us additional liquidity at an attractive rate and allowed us to significantly reduce our secured debt.
We have no debt maturities until 2023 and maintain adequate liquidity to meet our financial commitments. Our pro rata net leverage of 4.6x is below our long-term target of 5.0-5.5x, providing funding flexibility for future accretive opportunities.”
For more information on MGM Growth Properties’ second quarter results and figures click here.