MGM GROWTH PROPERTIES LLC REPORTS THIRD QUARTER FINANCIAL RESULTS
Las Vegas, Nevada, November 1, 2018 – MGM Growth Properties LLC (“MGP” or the “Company”) (NYSE: MGP) today reported financial results for the quarter ended September 30, 2018 for its real estate investment trust (“REIT”) operations and its taxable REIT subsidiary (“TRS”) operations. Net income attributable to MGP Class A shareholders for the quarter was $19.5 million, or $0.27 per diluted share.
Financial highlights for the third quarter of 2018:
Rental revenue was $186.6 million;
Consolidated net income was $69.9 million, or $0.26 per diluted Operating Partnership unit; which consisted of $57.7 million of net income from the REIT, and $12.2 million of net income from the TRS;
Funds From Operations(1) (“FFO”) was $131.5 million , or $0.49 per diluted Operating Partnership unit;
Adjusted Funds From Operations(2) (“AFFO”) was $154.8 million, or $0.58 per diluted Operating Partnership unit;
Adjusted EBITDA(3) was $212.0 million; and
General and administrative expenses were $3.4 million.
On July 6, 2018, the Company completed its previously announced acquisition of the Hard Rock Rocksino Northfield Park (“Northfield”), which comprises the TRS operations. The Company funded the acquisition with cash on hand and borrowings under its senior secured credit facility. Simultaneously with the close, the Company entered into a new agreement with Hard Rock to continue to serve as the manager of the property.
On September 18, 2018, the Company entered into an agreement to sell the operations of Northfield to a subsidiary of MGM Resorts International (“MGM Resorts”) for approximately $275 million plus net working capital adjustments. The TRS will concurrently liquidate and the real estate assets of Northfield will be added to the existing master lease between MGM Resorts and the Company. As a result, the annual rent payment under the master lease will increase by $60 million, prorated for the remainder of the lease year. Consistent with the master lease terms, 90% of this rent will be fixed and contractually grow at 2% per year until 2022. The transaction is expected to close in the first half of 2019, subject to regulatory approvals and other customary closing conditions. The transaction was approved by the Company’s Conflicts Committee.
“We are excited to present our results of operations and transaction activity for our third quarter,” said James Stewart, CEO of MGM Growth Properties. “We announced the closing of the acquisition of the real estate and operations and the subsequent sale of the operations of Northfield to MGM Resorts for $275 million. Northfield just recorded its best quarter ever in terms of revenue, EBITDA and market share. We are thrilled to partner with MGM Resorts who will introduce their award-winning M Life Rewards program to further drive growth at Northfield. Additionally, MGM Springfield opened its doors in August and we are excited to see that Right of First Offer property come online and enter the Massachusetts market.”
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The following information was filed by Mgm Growth Properties Operating Partnership Lp on Thursday, November 1, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Form Type: 10-Q Quarterly Report Accession Number: 0001628280-18-013662 Submitted to the SEC: Mon Nov 05 2018 6:01:40 PM EST Accepted by the SEC: Tue Nov 06 2018 Period: Sunday, September 30, 2018 Industry: Real Estate Investment Trusts