{"id":157303,"date":"2020-12-02T18:21:35","date_gmt":"2020-12-03T02:21:35","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=157303"},"modified":"2020-12-03T11:22:20","modified_gmt":"2020-12-03T19:22:20","slug":"mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/","title":{"rendered":"MGM Hauls In $700 Million Following Second Redemption of MGP Units"},"content":{"rendered":"

MGM Resorts International (NYSE:MGM) raised $700 million in the second sale of units in gaming real estate investment trust (REIT) MGM Growth Properties (NYSE:MGP).<\/p>\n

\"Mirage
The Mirage on the Las Vegas Strip. Operator MGM Resorts said it redeemed more shares of REIT MGM Growth. (Image: Pinterest)<\/figcaption><\/figure>\n

The Mandalay Bay operator made the announcement after the close of US markets Wednesday, noting it plans to use the $700 million influx of capital \u201cfor general corporate purposes.\u201d The REIT and the gaming company had a previous deal in place in which the latter could redeem $1.4 billion of the equity it owns in the former. The first $700 million tranche<\/a> on that agreement was executed in May.<\/p>\n

Today’s announcement reflects our continued focus on enhancing our balance sheet to strengthen our financial flexibility,\u201d said MGM CEO Bill Hornbuckle in a statement.<\/p><\/blockquote>\n

With the second $700 million divestment of MGP equity in the books, MGM Resorts has $5.9 billion worth of liquidity, giving it one of the industry’s tidiest balance sheets and likely the company’s strongest financial positions in decades.<\/p>\n

Good News for the REIT, Too<\/h2>\n

While the benefits for MGM in the transaction are obvious \u2013 it’s raising cash at a time when the industry continues grappling with COVID-19 \u2013 MGP isn’t being left out in the cold.<\/p>\n

\n

The transaction will allows the casino landlord to boost its acquired funds from operations (AFFO), a critical metric in valuing REITs, on a single-digit basis. That’s while allowing it to keep pro rata net leverage at 5.3x, within the company’s stated goal of 5x to 5.5x. MGP funded the transaction with proceeds in an $800 million June debt sale<\/a>.<\/p>\n<\/div>\n

With the $1.4 billion agreement complete, MGM’s interest in the real estate company falls to 53 percent from 56.7 percent following the May $700 million sale.<\/p>\n

That’s actually a positive for MGP. Broadly speaking, Wall Street likes the REIT.<\/a> But some analysts and investors speculate the company could be better off with more independence and less oversight from MGM.<\/p>\n

The Mirage operator is MGP’s only tenant, while rival gaming REITs have multiple clients, giving those competitors more rental income diversification. By virtue of its relationship with MGM, the REIT is levered to trends in Las Vegas, where it owns the real estate of all MGM-operated venues aside from Bellagio.<\/strong><\/p>\n

Other Ways to Raise Cash, if Needed<\/h2>\n

Should MGM need to raise more capital, it has other avenues in addition to its remaining 53 percent interest in MGP.<\/p>\n

The Excalibur operator owns all assets associated with MGM Springfield in Massachusetts, half of CityCenter in Las Vegas, and 56 percent of MGM China. Bellagio and the Bay State venue are the only real estate pieces in MGM’s domestic portfolio not owned by MGP.<\/p>\n

As for the REIT, it remains to be seen what its next corporate move is. But last month, reports surfaced<\/a> that MGP could make a run at buying the Venetian, Palazzo, and Sands Convention Center from Las Vegas Sands if the landlord can find a credible operator partner.<\/p>\n","protected":false},"excerpt":{"rendered":"

MGM Resorts International (NYSE:MGM) raised $700 million in the second sale of units in gaming real estate investment trust (REIT) MGM Growth Properties (NYSE:MGP). The Mandalay Bay operator made the announcement after the close of US markets Wednesday, noting it plans to use the $700 million influx of capital \u201cfor general corporate purposes.\u201d The REIT […]<\/p>\n","protected":false},"author":46,"featured_media":157304,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nMGM Continues Paring MGP Stake, Sells $700 Million of REIT Equity<\/title>\n<meta name=\"description\" content=\"MGM sold another $700 million worth of stock in MGM Growth Properties, bolstering its balance sheet in the process.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MGM Continues Paring MGP Stake, Sells $700 Million of REIT Equity\" \/>\n<meta property=\"og:description\" content=\"MGM sold another $700 million worth of stock in MGM Growth Properties, bolstering its balance sheet in the process.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/\" \/>\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=\"2020-12-03T02:21:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-03T19:22:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1320\" \/>\n\t<meta property=\"og:image:height\" content=\"990\" \/>\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\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/\",\"url\":\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/\",\"name\":\"MGM Continues Paring MGP Stake, Sells $700 Million of REIT Equity\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg\",\"datePublished\":\"2020-12-03T02:21:35+00:00\",\"dateModified\":\"2020-12-03T19:22:20+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"MGM sold another $700 million worth of stock in MGM Growth Properties, bolstering its balance sheet in the process.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg\",\"width\":1320,\"height\":990,\"caption\":\"The Mirage on the Las Vegas Strip. Operator MGM Resorts said it redeemed more shares of REIT MGM Growth. (Image: Pinterest)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#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 Hauls In $700 Million Following Second Redemption of MGP Units\"}]},{\"@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":"MGM Continues Paring MGP Stake, Sells $700 Million of REIT Equity","description":"MGM sold another $700 million worth of stock in MGM Growth Properties, bolstering its balance sheet in the process.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/","og_locale":"en_US","og_type":"article","og_title":"MGM Continues Paring MGP Stake, Sells $700 Million of REIT Equity","og_description":"MGM sold another $700 million worth of stock in MGM Growth Properties, bolstering its balance sheet in the process.","og_url":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-12-03T02:21:35+00:00","article_modified_time":"2020-12-03T19:22:20+00:00","og_image":[{"width":1320,"height":990,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.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\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/","url":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/","name":"MGM Continues Paring MGP Stake, Sells $700 Million of REIT Equity","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg","datePublished":"2020-12-03T02:21:35+00:00","dateModified":"2020-12-03T19:22:20+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"MGM sold another $700 million worth of stock in MGM Growth Properties, bolstering its balance sheet in the process.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/12\/mirage.jpg","width":1320,"height":990,"caption":"The Mirage on the Las Vegas Strip. Operator MGM Resorts said it redeemed more shares of REIT MGM Growth. (Image: Pinterest)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/mgm-continues-paring-mgp-stake-sells-700-million-of-reit-equity\/#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 Hauls In $700 Million Following Second Redemption of MGP Units"}]},{"@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\/157303"}],"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=157303"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/157303\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/157304"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=157303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=157303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=157303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}