MGM Growth Properties 2021 net income jumps to $205.5m
Company finishes year with $41.5m in net income during Q4.
MGM Growth Properties (MGP) on Thursday unveiled its financial results for the quarter and year ending December 31, 2021.
The company reported net income attributable to MGP Class A shareholders for the fourth quarter was $52m, or $0.33 per dilutive share, and for the year $205.5m, or $1.36 per dilutive share.
Both the quarterly and full-year income figures were higher than the pandemic-affected reportings for 2020. For Q4 2020 the company had net income of $41.5m, or $0.31 per dilutive share, while full-year 2020 was $76.1m, or $0.59 per dilutive share.
MGP listed a number of financial highlights for the fourth quarter of 2021, including consolidated rental revenue of $193m, consolidated net income of $87m, or $0.32 per diluted Operating Partnership unit, and consolidated adjusted EBITDA $249.4m.
For full year 2021, MGP posted consolidated rental revenue of $757.9m, consolidated net income of $359.2m, or $1.33 per diluted Operating Partnership unit, and adjusted EBITDA of $979.2 million.
Adjusted EBITDA for Q4 2020 was $240.2m, while the company’s full-year 2020 Adjusted EBITDA was $955.3m.
As of December 31, 2021, there were approximately 268.1m Operating Partnership units outstanding in the Operating Partnership, of which MGM owned approximately 111.4m, or 41.5%, while MGP owns the remaining 58.5%.
On October 29, 2021, MGP acquired the real estate assets of MGM Springfield from MGM for $400m of cash consideration. MGM Springfield was added to the MGM-MGP Master Lease between the Company and MGM and, as a result, the annual rent payment increased by $30m.
On December 13, 2021, MGM entered into an agreement to sell the equity interests of The Mirage to an affiliate of Seminole Hard Rock Entertainment. Upon closing, the master lease agreement between MGP and MGM (or MGM’s master lease with VICI, in the event that the VICI transaction is consummated prior to closing) will be amended and restated to reflect a $90m reduction in annual cash rent and a new lease will be entered into with Hard Rock to reflect an initial $90m annual cash rent. The transaction is expected to close during the second half of 2022, subject to certain closing conditions, including, but not limited to, the consummation or termination of the VICI transaction.
MGM Growth Properties is a publicly traded real estate investment trust engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP, together with its joint venture, currently owns a portfolio of properties, consisting of 13 destination resorts in Las Vegas and elsewhere across the United States, MGM Northfield Park in Northfield, Ohio, Empire Resort Casino in Yonkers, NY, as well as a retail and entertainment district, The Park in Las Vegas.
As of December 31, 2021, MGP’s portfolio of destination resorts, the Park, Empire Resort Casino, and MGM Northfield Park, collectively comprised approximately 32,700 hotel rooms, 1.7m casino square footage, and 3.6m convention square footage.
MGP said in a statement it expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.
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