The MGM Growth Properties real estate investment trust (REIT) spun off from American casino operator MGM Resorts International in 2015 has reportedly hinted that it may be interested in buying any venues put up for sale by Las Vegas Sands Corporation.
According to a report from CDC Gaming Reports, the revelation came as part of a Tuesday conference call to discuss the Nevada firm’s third-quarter financial results in which it detailed that aggregated revenues had fallen by 14% year-on-year to $194.3 million. The source explained that the Las Vegas-headquartered enterprise also recorded a 25.4% comparable drop in adjusted income before interest, tax, depreciation and amortization for the three-month period to $173.5 million with its net income hitting $43.7 million.
Las Vegas Sands Corporation is reportedly said to be considering selling The Venetian Resort Hotel Casino with its 3,000-room The Palazzo hotel as well as the nearby Sands Expo and Convention Center and anticipates such an arrangement would see it bring in at least $6 billion. The whispered move for the three Las Vegas Strip properties would purportedly moreover represent an American exit for the operator with its six casino resorts in Macau and Singapore having last year brought in some 85% of its $13.7 billion in annual revenues.
James Stewart serves as the Chief Executive Officer for MGM Growth Properties and he reportedly responded to a direct question concerning Las Vegas Sands Corporation by declaring that his company ‘would definitely be interested’ in acquiring the three Las Vegas venues. The boss purportedly furthermore proclaimed that the trio ‘are going to be set up for some very very significant growth once we get to the other side of coronavirus’ and that any tenant would have ‘to be one who has a great incentive to keep on paying the rent’.
Stewart reportedly told investors…
“If we can go to bed at night without having anything keep us up over worrying about is the rent going to get paid, it’s absolutely a deal that we should do. I think the attractiveness of Las Vegas and our venues here is going to only increase compared to those other cities given space and the ability to creatively sort of structure that space.”
MGM Growth Properties already holds majority interests in twelve casino resorts operated by MGM Resorts International including seven along the Las Vegas Strip encompassing The Mirage Las Vegas, Mandalay Bay Resort and Casino Las Vegas, Park MGM Las Vegas, Excalibur Hotel and Casino Las Vegas, Luxor Las Vegas, MGM Grand Las Vegas and New York-New York Hotel and Casino Las Vegas. While Stewart reportedly heralded the performance of these venues, he additionally pronounced that his firm’s Gold Strike Tunica, MGM Northfield Park and MGM National Harbor regional venues had achieved record third-quarter adjusted property earnings.
Stewart reportedly affirmed…
“We are encouraged by the improvement and ramp-up of operations across our portfolio and we’re also pleased to see weekend occupancies in Las Vegas recovering. We’re long-term believers in Las Vegas as one of the premier destinations for business and leisure travel in the world.”