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MGM Resorts (MGM) Reduces Ownership in MGP Operating Partnership
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MGM Resorts International (MGM - Free Report) recently completed the redemption of nearly 37.1 million of its operating partnership units of MGM Growth Properties (MGP) Operating Partnership LP for nearly $1.2 billion. Following the news, shares of MGM Resorts increased 5.1% on Mar 15. Notably, the stock has gained 81.9% in the past six months, compared with the industry’s rally of 45.6%.
After the redemption, MGM Resorts now owns 42.1% in the Operating Partnership, compared with earlier ownership of 53%. Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts said “Today's announcement further demonstrates our commitment to the company's asset-light strategy as we have significantly reduced our ownership stake in MGP to 42%, from 61% just one year ago.”
Cash from the proceeds will be utilized in enhancing shareholder value, which includes executing on key growth opportunities, maintaining a strong balance sheet, and returning cash to shareholders.
The company’s superior business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations are the primary growth drivers. In the past few years, the company has taken various initiatives to align every recognized brand into one global entertainment brand. This resulted in a disciplined business model with a unified view of strategy.
Focus on Sports Betting
Instead of being a capital intensive, brick & mortar real estate business; the company intends to be a developer, manager and operator of major gaming, hospitality and entertainment properties. The company stated that it wants to focus on sports and live entertainment.
Sports betting and iGaming continues to be a major growth driver following the legalization of sports betting outside Nevada. The company continues to focus on sports betting expansion.
MGM Resorts, which shares space with Wynn Resorts, Limited (WYNN - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Boyd Gaming Corporation (BYD - Free Report) , has a Zacks Rank #4 (Sell).
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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MGM Resorts (MGM) Reduces Ownership in MGP Operating Partnership
MGM Resorts International (MGM - Free Report) recently completed the redemption of nearly 37.1 million of its operating partnership units of MGM Growth Properties (MGP) Operating Partnership LP for nearly $1.2 billion. Following the news, shares of MGM Resorts increased 5.1% on Mar 15. Notably, the stock has gained 81.9% in the past six months, compared with the industry’s rally of 45.6%.
After the redemption, MGM Resorts now owns 42.1% in the Operating Partnership, compared with earlier ownership of 53%. Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts said “Today's announcement further demonstrates our commitment to the company's asset-light strategy as we have significantly reduced our ownership stake in MGP to 42%, from 61% just one year ago.”
Cash from the proceeds will be utilized in enhancing shareholder value, which includes executing on key growth opportunities, maintaining a strong balance sheet, and returning cash to shareholders.
The company’s superior business model, extensive non-gaming revenue opportunities, high-quality assets and attractive property locations are the primary growth drivers. In the past few years, the company has taken various initiatives to align every recognized brand into one global entertainment brand. This resulted in a disciplined business model with a unified view of strategy.
Focus on Sports Betting
Instead of being a capital intensive, brick & mortar real estate business; the company intends to be a developer, manager and operator of major gaming, hospitality and entertainment properties. The company stated that it wants to focus on sports and live entertainment.
Sports betting and iGaming continues to be a major growth driver following the legalization of sports betting outside Nevada. The company continues to focus on sports betting expansion.
MGM Resorts, which shares space with Wynn Resorts, Limited (WYNN - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Boyd Gaming Corporation (BYD - Free Report) , has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>