MGM Growth Properties Reports Third-Quarter Earnings Before VICI Acquisition

MGM Growth Properties (MGP) experienced a decline in its third-quarter earnings before being acquired by VICI Properties for a hefty $17.2 billion. Income remained consistent at $194.3 million.

MGP, which possesses a collection of hotels managed by MGM Resorts, including the renowned MGM Grand, Mandalay Bay, and The Mirage, witnessed revenue mirroring that of 2020. This encompassed $188.3 million in rental income and $6 million in ground lease revenue.

Nevertheless, expenditures escalated by 9.5% to $74 million. Depreciation constituted the most substantial expense, although it decreased by 1.0% to $57.6 million. The surge in costs was primarily attributed to $6.3 million in newly incurred acquisition-related expenses. The company also incurred $5.9 million in ground lease expenses and $3.9 million in management fees.

Consequently, MGP’s operating income dwindled to $120.3 million, representing a 5.1% reduction.