MGM Resorts reports improved fourth-quarter earnings during 2016
February 17, 2017 9:48 AM
by Robert Mann
Buoyed by revenue generated by its new National Harbor casino near Washington D.C. and the recovering performance of its 10 Las Vegas properties, MGM Resorts International has reported improved fourth-quarter earnings during 2016.
Although the company missed estimates by 10 cents a share, MGM bested revenue projections by $20 million.
MGM Chairman and CEO Jim Murren in a statement announcing the company’s earnings said, “We are excited about the outlook for 2017, including the full year contributions from MGM National Harbor and Borgata, the continued favorable Las Vegas dynamics supported by our investments including T-Mobile Arena and the Park Theater, the opening of MGM Cotai in Macau, and our persistent drive for continuous improvement throughout all aspects of our company.”
MGM National Harbor opened to strong business in early December. The company completed the acquisition of Boyd Gaming’s 50 percent share of ownership of Borgata, considered Atlantic City’s top property, in August.
MGM Growth Properties, the triple-net Real Estate Investment Trust (REIT) serving as landlord to 10 MGM properties in the United States also reported its earnings this week announcing adjusted funds from operations of $119 million and net income of $12.4 million for the fourth quarter of 2016. The report covers the final quarter of its first year as a standalone real estate investment trust spun-off from MGM Resorts.
James Stewart, CEO of MGM Growth Properties, said “2016 was an extraordinary debut year for MGM Growth Properties and our shareholders. The Company’s $1.2 billion initial public offering was one of the largest of the year and was named International Financing Review magazine’s 2016 U.S. IPO of the year.”
Generally under a triple net lease agreement, the tenant must pay property taxes, building insurance and maintenance or repairs in addition to rent.