MGM Growth Properties LLC (NYSE:MGP) already owns integrated resorts on the Las Vegas Strip, but the company isn’t being shy about its intent to potentially add to its Sin City portfolio.
MGP, which was spun off from MGM Resorts International in April 2016, depends on its Strip venues for less than half of its earnings before interest, taxes, depreciation and amortization (EBITDA), down from a high of 73 percent, but that still sizable percentage wouldn’t prevent the real estate investment trust (REIT) from increasing its Las Vegas footprint.
In the largest US gaming destination, MGP owns Excalibur, Luxor, Mandalay Bay, The Mirage, New York-New York and Park MGM, all of which are operated by MGM Resorts. The real estate company also owns The Park, a dining and entertainment area that connects New York-New York, Park MGM and T-Mobile Arena.
Last month, news broke that MGM is mulling sales of Bellagio and MGM Grand, two of its crown jewels on the Strip. While MGP would make for a logical buyer of one or both of those venues due to its established relationship with MGM, some analysts believe the casino operator could look beyond the real estate company in an effort to fetch higher prices for the properties.
Source – casino.org