MGM Growth Properties explained

MGM Growth Properties, LLC
Fate:Acquired by Vici Properties
Location City:Summerlin South, Nevada
Location Country:United States
Revenue: $881 million (2019)
Net Income: $275 million (2019)
Assets: $11.9 billion (2019)
Equity: $6.9 billion (2019)
Footnotes:[1]

MGM Growth Properties, LLC (MGP) was a real estate investment trust based in Summerlin South, Nevada, that invested in large-scale casino properties. The company had whole or majority ownership of 15 properties, all of which were operated by MGM Resorts International. The company leased the properties to MGM Resorts via triple-net leases.[1] The company was acquired by Vici Properties in April 2022 for $17.2 billion.

History

The company was formed on October 23, 2015.[1]

On April 25, 2016, the company became a public company via an initial public offering and acquired The Mirage, Mandalay Bay, Luxor Las Vegas, New York-New York Hotel and Casino, Monte Carlo Resort and Casino, Excalibur Hotel and Casino, The Park, Gold Strike Tunica, MGM Grand Detroit, and Beau Rivage from MGM Resorts International.[2] [3]

On August 1, 2016, the company acquired the real estate assets related to the Borgata Hotel Casino and Spa from MGM.[4]

In September 2017, the company acquired MGM National Harbor for $1.2 billion.[5] [6] [7]

In July 2018, MGP bought Northfield Park, a racino in Ohio, for $1.02 billion. Hard Rock International remained as the property's manager.[8] In January 2019, the company bought another racino, Yonkers Raceway & Empire City Casino, for $625 million, and leased it to MGM Resorts.[9] [10] In April 2019, MGM Resorts bought Northfield's operating business from MGM Growth for $275 million in stock, assumed control from Hard Rock, and rebranded the property as MGM Northfield Park.[11] [12] MGM Resorts leased the property from MGM Growth for initial rent of $60 million per year.[13]

In February 2020, MGP formed a joint venture with the Blackstone Real Estate Income Trust to own the real estate of Mandalay Bay and MGM Grand Las Vegas. The joint venture paid $2.1 billion to MGP for Mandalay Bay, and $2.4 billion to MGM Resorts for the MGM Grand. MGP took 50.1 percent ownership of the joint venture.[14] [15] [16]

In May 2021, MGP agreed to buy the real estate of MGM Springfield from MGM Resorts for $400 million. The property would be leased back to MGM Resorts for initial rent of $30 million per year.[17]

In August 2021, MGP agreed to be acquired by Vici Properties for $17.2 billion (consisting of $4.4 billion of cash, $5.7 billion of assumed debt, and the remainder in stock).[18] [19] The sale was completed on April 29, 2022.[20]

Properties

The properties owned by MGM Growth Properties at the time of its acquisition were:

Notes and References

  1. Web site: MGM Growth Properties LLC 2019 Form 10-K Annual Report . U.S. Securities and Exchange Commission.
  2. MGM Resorts International Announces Pricing Of Initial Public Offering By MGM Growth Properties LLC . . April 19, 2016.
  3. News: MGM Growth Properties Raises $1.05 Billion in IPO . Corrie . Driebusch . . April 19, 2016 . subscription.
  4. MGM Growth Properties LLC and MGM Resorts International Complete Transactions for Acquisition of Borgata Hotel Casino & Spa . . August 1, 2016.
  5. MGM Resorts International And MGM Growth Properties LLC Announce Transaction On MGM National Harbor Casino Resort . . September 5, 2017.
  6. News: MGM National Harbor is changing hands — sort of — for nearly $1.2B . Michael . Neibauer . . September 5, 2017.
  7. News: MGM subsidiary buying Maryland casino; $1B share repurchase OK'd . Richard N. . Velotta . . September 5, 2017.
  8. News: MGM Growth Properties closes $1.06 billion purchase of Hard Rock Rocksino . The Plain Dealer . Rich . Exner . July 11, 2018.
  9. News: MGM finalizes $850 million deal for Empire City Casino in Yonkers, New York . The Republican . Jim . Kinney . January 30, 2019.
  10. MGM Resorts International and MGM Growth Properties complete transaction to acquire Empire City Casino in Yonkers, New York . MGM Resorts International . . January 29, 2019.
  11. News: With deal closing, the Hard Rock Rocksino officially becomes MGM Northfield Park . . Scott . Suttell . April 1, 2019.
  12. News: MGM Resorts entering Ohio through acquisition of Hard Rock Rocksino operations. CDC Gaming Reports. Howard . Stutz . September 19, 2018.
  13. MGM Resorts International and MGM Growth Properties LLC announce agreement for Hard Rock Rocksino in Northfield, Ohio . MGM Resorts International . September 19, 2018.
  14. MGM Resorts, MGM Growth Properties and Blackstone Real Estate Income Trust announce completion of MGP/BREIT joint venture's acquisition of the MGM Grand Las Vegas and Mandalay Bay real estate for $4.6 billion. MGM Resorts International. February 14, 2020. 2020-10-03. PR Newswire.
  15. Web site: Sayre . Katherine . Gottfried . Miriam . Lombardo . Cara . MGM Resorts Agrees to Sell MGM Grand, Mandalay Bay to Joint Venture Including Blackstone . The Wall Street Journal . January 14, 2020 . January 14, 2020.
  16. News: MGM Resorts selling MGM Grand, Mandalay Bay for about $2.5B . January 14, 2020 . Associated Press . January 14, 2020.
  17. News: MGM sells Springfield property to real estate trust MGM Growth Properties; no impact expected on day-to-day casino operations. MassLive. Jim. Kinney. May 11, 2021. 2021-05-12.
  18. News: Casino Owner Vici Properties to Buy MGM Growth Properties. Wall Street Journal. Dave Sebastian. August 4, 2021. 2021-08-04.
  19. VICI Properties Inc. Announces $17.2 Billion Strategic Acquisition of MGM Growth Properties LLC. Vici Properties. August 4, 2021. MGM Growth Properties. August 5, 2021. August 17, 2021. https://web.archive.org/web/20210817042044/https://www.mgmgrowthproperties.com/news-releases/news-release-details/2021/VICI-Properties-Inc.-Announces-17.2-Billion-Strategic-Acquisition-of-MGM-Growth-Properties-LLC/default.aspx. dead.
  20. Web site: 2022-04-29 . VICI Properties Inc. Completes $17.2 Billion Strategic Acquisition of MGM Growth Properties LLC . 2022-05-01 . www.businesswire.com . en.

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