MGM reflects on activity as financial results are reported

MGM reflects on activity as financial results are reported

MGM Growth Properties, the real estate investment trust behind ownership of casino properties operated by MGM Resorts, has today reflected on its activity for the previous twelve months as its financial results are reported.

Over the entire twelve months last year, the company has a consolidated rental revenue of over $760 million and a consolidated net income of more than $160 million.

During a challenging year for the gaming, entertainment and hospitality sectors, the company was able to maintain a solid footing by successfully completing a number of transactions as part of its overall business strategy.

Through a joint venture, the company was able to acquire majority of ownership of MGM Grand Las Vegas, a hotel and casino located on the Las Vegas Strip in Nevada and home of the largest single hotel in the United States.

Although the investment trust faced unprecedented times, it was still able to remain focused and committed to growing the business and delivering long term value for shareholders, particularly due to the business model’s strength and consistent rent collection record.

MGM Growth Properties leases its properties, including leisure resorts to MGM Resorts International. Its latest activity was completed during the uncertain period last year, which saw the joint venture with The Blackstone Group, an American alternative investment management company based in New York City. Such joint investments included the acquisition of Mandalay Bay, a 43-story luxury resort and casino on the Las Vegas Strip.

Overall, the company was able to ride the storm of the global pandemic despite casinos being shuttered for the majority of the year. Each casino was still able to pay rent to the firm, in which it collected more than $200 million in rental payments in the last quarter of the year along, bringing the total to over $840 million for the year.

The chief executive officer of MGM Growth Properties commented:

While 2020 presented a unique set of challenges, MGP successfully completed transactions that put us on a solid footing to continue to execute on our long-term business strategy.

We acquired majority ownership of the real estate assets of the MGM Grand Las Vegas through our joint venture with Blackstone and completed $1.4 billion of unit redemption transactions that helped grow the company and diversify our shareholder base.

The strength of our business model was again demonstrated through our 100% rent collection record and 3.7% annualized dividend increase over the year.

We remain focused on continuing to grow the company and deliver long-term shareholder value.

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