MGM Growth Properties sees Q2 profit edge up ahead of VICI acquisition

MGM Growth Properties (MGP), the real estate investment trust spun off from MGM Resorts International, reported a 7.1% year-on-year rise in net profit for the second quarter of its 2021 financial year, ahead of its anticipated acquisition by VICI Properties.


Total revenue for the three months through to 30 June amounted to $194.3m (£140.2m/€165.3m), which was level with the same period in 2020. Rental revenue remained flat at $188.3m, as did ground lease revenue at $6.0m.

The quarter saw MGP agree to acquire the real estate assets of MGM Springfield from MGM Resorts for $400.0m in cash. This will see MGM Springfield added to its existing master lease with MGM and the annual rent payment increase by $30.0m.

The MGM Springfield deal is expected to close in the fourth quarter of this year, subject to regulatory approvals from the Massachusetts Gaming Commission and other customary closing conditions.

In terms of costs for the quarter, total expenses reached $68.3m, which was again largely in line with the corresponding period last year. Consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to $244.3m.

Read the full story on iGB North America.