MGM GROWTH PROPERTIES LLC REPORTS SECOND QUARTER FINANCIAL RESULTS
Las Vegas, Nevada, August 7, 2018 – MGM Growth Properties LLC (“MGP” or the “Company”) (NYSE: MGP) today reported financial results for the quarter ended June 30, 2018. Net income attributable to MGP Class A shareholders for the quarter was $13.1 million, or $0.18 per dilutive share.
Financial highlights for the second quarter of 2018:
Rental revenue was $186.6 million;
Net income was $48.1 million, or $0.18 per diluted Operating Partnership unit;
Funds From Operations(1) (“FFO”) was $130.0 million, or $0.49 per diluted Operating Partnership unit;
Adjusted Funds From Operations(2) (“AFFO”) was $145.6 million, or $0.55 per diluted Operating Partnership unit;
Adjusted EBITDA(3) was $190.4 million; and
General and administrative expenses were $2.8 million.
On May 28, 2018, the Company entered into an agreement to acquire the real property associated with the Empire City Casino's race track and casino (“Empire City”) from MGM Resorts International (“MGM Resorts”) for total consideration of $625 million, which will include the assumption of approximately $245 million of debt, with the balance through the issuance of operating partnership units to MGM Resorts. Empire City will be added to the existing Master Lease between MGM Resorts and MGP. As a result, the annual rent payment to MGP will increase by $50 million. Consistent with the Master Lease terms, 90% of this rent will be fixed and contractually grow at 2% per year until 2022. In addition, pursuant to the Master Lease, MGP will have a right of first offer with respect to certain undeveloped land adjacent to the property to the extent MGM Resorts develops additional gaming facilities and chooses to sell or transfer the property in the future. The transactions are expected to close in the first quarter of 2019, subject to regulatory approvals and other customary closing conditions.
On April 4, 2018, the Company entered into an agreement with Milstein Entertainment LLC to acquire the Hard Rock Rocksino Northfield Park ("Rocksino") for approximately $1.06 billion, which was completed on July 6, 2018. 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.
“In the second quarter of this year, MGP celebrated its second year of being a public company. We announced the acquisition of the real estate assets of the Empire City Casino in New York, the signing and subsequent completion of the Hard Rock Rocksino Northfield acquisition and a $0.04 increase to our dividend, which brings MGP’s annualized dividend up to $1.72, over 20% higher than our dividend at IPO,” said James Stewart, CEO of MGM Growth Properties. “We are excited for the remainder of the year and look forward to continue executing on our business plan, to add high quality properties, such as the Rocksino and Empire City, accretively to our portfolio and sustainably grow our dividend over time.”
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The following information was filed by Mgm Growth Properties Llc (MGP) on Tuesday, August 7, 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: 0001628280-18-010642 Submitted to the SEC: Tue Aug 07 2018 2:03:01 PM EST Accepted by the SEC: Tue Aug 07 2018 Period: Saturday, June 30, 2018 Industry: Real Estate Investment Trusts