{"id":124371,"date":"2020-01-15T09:35:58","date_gmt":"2020-01-15T17:35:58","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=124371"},"modified":"2020-03-04T14:14:58","modified_gmt":"2020-03-04T22:14:58","slug":"analysts-like-mgm-latest-real-estate-deals-see-more-coming","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/","title":{"rendered":"MGM Analysts Cheer Latest Asset Sales, Some Forecast Cash For Japan, More Real Estate Moves"},"content":{"rendered":"

On Tuesday, MGM Resorts International (NYSE:MGM) announced the sales of Mandalay Bay and MGM Grand for $4.6 billion, moves that are being cheered by analysts that see cash being freed up to reduce debt and pursue Japan aspirations.<\/p>\n

\"\"
(Image: pymnts.com)<\/figcaption><\/figure>\n

A partnership consisting of MGM Growth Properties (NYSE:MGP) and Blackstone Real Estate Income Trust (BREIT) is acquiring the two iconic Las Vegas Strip venues in a transaction that’s expected to close in the current quarter.<\/p>\n

As Macquarie gaming and leisure analyst Chad Beynon<\/span> points out, the $2.5 billion, a 15.75x multiple to rent the operator commanded for MGM Grand, is the second-highest price point the company has netted on a real estate<\/a> sale, after the $4.25 billion (17.3x annual rent) divestment of the Bellagio last year.<\/p>\n

MGM has other avenues for monetizing various holdings, something Beynon believes the company will pursue over the near-term as part of its \u201casset-light\u201d quest.<\/p>\n

Following the sale of the PropCo, MGM\u2019s remaining real estate includes MGM Springfield, its 50% ownership in CityCenter, and its 56% ownership of MGM Macau,\u201d said the analyst. \u201cMGM is shifting its focus from both an operator and real estate owner to an operator of gaming and leisure assets.\u201d<\/span><\/p><\/blockquote>\n

Beynon believes a sale\/leaseback, the deal structure used for the Bellagio, Mandalay Bay, and Grand sales, \u201ccould be forthcoming\u201d for MGM Springfield and CityCenter.<\/span><\/strong><\/p>\n

Cash For Japan<\/span><\/h2>\n

Morningstar analyst Dan Wasiolek said his firm is \u201cmixed\u201d on the terms of the Grand sale, but noted that MGM’s recent divestments raise cash for the pursuit of an integrated resort license in Japan.<\/span><\/p>\n

\n

\u201cThe transaction values Grand at just 7 times its earnings before interest, taxes, depreciation and amortization (EBITDA) average over the past four years (2016-19) for relatively flat EBITDA growth over that time,\u201d said Wasiolek. \u201cWe view this as disappointing, as it compares with the 7% consolidated MGM EBITDA compound annual growth rate (CAGR) we forecast through 2023, and the 11 times 2019 EV\/EBITDA our $40 fair value estimate implies for the company.\u201d<\/span><\/p>\n<\/div>\n

Between the Grand and Mandalay transaction and deals completed last year to unload Bellagio and Circus Circus, MGM is bringing in more than $8 billion in cash<\/a>, capital Wasiolek sees as \u201cdry powder for a potential Japan gaming license.\u201d<\/span><\/p>\n

The Morningstar analyst said it’s \u201cincreasingly likely\u201d MGM wins the Osaka concession<\/a>, particularly because rivals Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN) are focusing on other parts of Japan.<\/p>\n

Shoring up the Balance Sheet<\/h2>\n

Beynon notes MGM is targeting $3.50 per share of free cash flow (FCF) this year, well above the consensus estimate of $2.93, and that the recent real estate transactions, along with a debt redemption last November, provide a bridge to that $3.50 target.<\/p>\n

The analyst expects the gaming company will use the influx of cash to bolster its balance sheet and repurchase its stock.<\/p>\n

Beynon has an \u201coutperform\u201d rating on MGM with a $37 price target, implying upside of almost 12 percent from where the stock trades at this writing.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

On Tuesday, MGM Resorts International (NYSE:MGM) announced the sales of Mandalay Bay and MGM Grand for $4.6 billion, moves that are being cheered by analysts that see cash being freed up to reduce debt and pursue Japan aspirations. A partnership consisting of MGM Growth Properties (NYSE:MGP) and Blackstone Real Estate Income Trust (BREIT) is acquiring […]<\/p>\n","protected":false},"author":46,"featured_media":128957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\nAnalysts Like MGM Latest Real Estate Deals, See More Coming<\/title>\n<meta name=\"description\" content=\"MGM announced sales of MGM Grand and Mandalay Bay on Tuesday, drawing applause from analysts that like the influx of cash.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Analysts Like MGM Latest Real Estate Deals, See More Coming\" \/>\n<meta property=\"og:description\" content=\"MGM announced sales of MGM Grand and Mandalay Bay on Tuesday, drawing applause from analysts that like the influx of cash.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-15T17:35:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-03-04T22:14:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/\",\"url\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/\",\"name\":\"Analysts Like MGM Latest Real Estate Deals, See More Coming\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg\",\"datePublished\":\"2020-01-15T17:35:58+00:00\",\"dateModified\":\"2020-03-04T22:14:58+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM announced sales of MGM Grand and Mandalay Bay on Tuesday, drawing applause from analysts that like the influx of cash.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg\",\"width\":1000,\"height\":600,\"caption\":\"(Image: pymnts.com)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"MGM Analysts Cheer Latest Asset Sales, Some Forecast Cash For Japan, More Real Estate Moves\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Analysts Like MGM Latest Real Estate Deals, See More Coming","description":"MGM announced sales of MGM Grand and Mandalay Bay on Tuesday, drawing applause from analysts that like the influx of cash.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Analysts Like MGM Latest Real Estate Deals, See More Coming","og_description":"MGM announced sales of MGM Grand and Mandalay Bay on Tuesday, drawing applause from analysts that like the influx of cash.","og_url":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-01-15T17:35:58+00:00","article_modified_time":"2020-03-04T22:14:58+00:00","og_image":[{"width":1000,"height":600,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/","url":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/","name":"Analysts Like MGM Latest Real Estate Deals, See More Coming","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg","datePublished":"2020-01-15T17:35:58+00:00","dateModified":"2020-03-04T22:14:58+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"MGM announced sales of MGM Grand and Mandalay Bay on Tuesday, drawing applause from analysts that like the influx of cash.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/MGM-Resorts-Intl.jpg","width":1000,"height":600,"caption":"(Image: pymnts.com)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/analysts-like-mgm-latest-real-estate-deals-see-more-coming\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"MGM Analysts Cheer Latest Asset Sales, Some Forecast Cash For Japan, More Real Estate Moves"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/124371"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=124371"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/124371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/128957"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=124371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=124371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=124371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}