MGM GROWTH PROPERTIES REPORTS SECOND QUARTER FINANCIAL RESULTS
Las Vegas, Nevada, August 6, 2019 – MGM Growth Properties LLC (“MGP” or the “Company”) (NYSE: MGP) today reported financial results for the quarter ended June 30, 2019. Net income attributable to MGP’s Class A shareholders for the quarter was $21.9 million, or $0.24 per diluted share.
Other financial highlights for the second quarter of 2019 included:
Rental revenue of $219.8 million;
Consolidated net income of $67.8 million, or $0.23 per diluted Operating Partnership unit;
Funds From Operations(1) (“FFO”) of $147.6 million, or $0.51 per diluted Operating Partnership unit;
Adjusted Funds From Operations(2) (“AFFO”) of $172.8 million, or $0.59 per diluted Operating Partnership unit;
Adjusted EBITDA(3) of $233.3 million; and
General and administrative expenses were $3.7 million.
On April 1, 2019, the Company completed the sale of the operations of Northfield Park (the “Northfield OpCo”) to MGM Resorts International (“MGM”) for contractual consideration of $275 million, plus working capital and other customary adjustments, which resulted in approximately 9.4 million Operating Partnership units ultimately being redeemed by the Operating Partnership. The Company retained the associated real estate assets, added the real estate to the master lease and increased the annual rent to $60 million. Subsequently, MGM rebranded Northfield OpCo to MGM Northfield Park. The Company’s results for Northfield OpCo for the six months ended June 30, 2019 are reflected in discontinued operations on the consolidated statement of operations and the related assets and liabilities have been classified as assets held for sale and liabilities related to assets held for sale as of December 31, 2018 on the consolidated balance sheet.
“MGP continued to execute on its strategy in the second quarter,” said James Stewart, CEO of MGM Growth Properties. “In the beginning of the quarter, we transferred the operations of Northfield Park to MGM Resorts and simultaneously added the property to the Master Lease. This transaction along with our third base rent escalator brought our current annualized rental revenue to $946 million, a 72% increase since our IPO. We are looking forward to the remainder of 2019 and continuing to successfully execute our business plan of accretively adding premier market leading properties to our world class portfolio and generating long-term shareholder value with a disciplined approach.”
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The following information was filed by Mgm Growth Properties Operating Partnership Lp on Tuesday, August 6, 2019 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: 0001628280-19-010194 Submitted to the SEC: Tue Aug 06 2019 6:02:02 PM EST Accepted by the SEC: Wed Aug 07 2019 Period: Sunday, June 30, 2019 Industry: Real Estate Investment Trusts