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Back in 2015, MGM Growth Properties LLC was founded.
The Real Estate Investment Trust (REIT) is based in Summerlin South, Nevada, invests in large-scale destination entertainment and leisure resorts.
The company also has a whole or majority ownership of 15 properties, all which are operated by MGM Resorts International.
MGM Growth Properties LLC became a public company in 2016 and acquired The Mirage, Luxor Las Vegas, New York-New York Hotel and Casino, Monte Carlo Resort and Casino, Excalibur Hotel and Casino, The Park, Gold Strike Tunica, MGM Grand Detroit and Beau Rivage from MGM Resorts International.
The REIT has acquired numerous properties since then and in February 2020, in a joint venture with Blackstone Real Estate Income Trust, to own the real estate of Mandalay Bay and MGM Grand Las Vegas (with a 50.1% stake in both).
The company’s latest acquisition in May 2021 was MGM Springfield real estate for $400 million in cash.
So, as a growth-oriented public real estate entity, MGP 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.
Source: Schwab.com
So, let’s take a look at MGP, I do own several shares and it’s current price as of today is $35.045. The company has a market cap at $16.9 billion and have 487 million outstanding shares.
Aside from the pandemic closures, MGM Properties has been actively strong.
For me, what made this REIT attractive was the fact that MGM Growth Properties owns iconic AAA Four Diamond casino or luxury resorts in Las Vegas.
MGM Grand, Mandalay Bay, The Mirage, Park MGM, Luxor, New York New York, Excalibur and the Park, that is actually quite amazing properties to have in a portfolio.
And outside of Las Vegas, they have the MGM National Harbor in Metro D.C., the Borgata in Atlantic City, MGM Grand Destroit, MGM Northfield Park in Ohio and Empire City Casino in Manhattan.
And there is the Beau Rivage in Biloxi Mississippi, Gold Strike Tunica in Northern Mississippi and MGM Springfield in Springfield, MA.
What this means is 3,5000,000 meeting/convention space square footage, 27,400+ hotel rooms, 1,500,000+ total casino square footage and 744 total cares combined.
And with around 78,000 employees, seeing how the company has grown since 2015, that is amazing.
MGM Growth Properties LLC has a fantastic portfolio!
Looking at the data, according to Inside Monitor, there has not been any insider buying or sales. In 2020, there were 6,100 shares purchased and 240,933 shares sold. Although, there were option exercises in the months of March and April.
According to the Holdings Channel, the top funds holding MGP are Capital Research Global Investors (13,428,249), Barrow Hanley Mewhinney & Strauss LLC (12,178,416), Capital World Investors (11,190,000), Vanguard Group Inc. (9,295,003).
In the latest news, Deutsche Bank analyst Carlo Santarelli maintained a Buy rating on MGM Growth Properties, setting a price target of $41, approx. 20.55% above the share price of $34.01 (May 12th). TipRanks Analysts set a Moderate Buy rating of shares with an average price target of $38.50. The analysts price targets range from a high of $42 to a low of $34.
According to TipRanks.com, Deutsche Bank analyst Carlo Santarelli is currently ranked with 5 stars on a 0-5 stars ranking scale, with an average return of 23.9% and a 66.22% success rate.
Source: Schwab.com
With a quarterly dividend of $0.495, an annual dividend rate of $1.98 and an annual dividend yield of 5.69%, it is no doubt a REIT that pays its dividends and has a very good annual dividend yield. In fact, the dividends have increased from $1.04 in 2016, $1.60 in 2017 and now $1.98 in 2021.
I’m all about passive income and dividend-based income is great! So, if you have one share at $35, that is $1.98 annually. 10 shares ($350) is $19.80 annually. 100 ($3,500 invested) shares is $198 annually and 1,000 shares ($35,000 invested) is $1,980 annually.
On March 30th, MGM Growth Properties, LLC traded their ex-dividend for their respective upcoming dividend. MGM Growth Properties LLC paid its quarterly dividend of $0.495 on April 15th.
With a high conviction towards this company for its portfolio and its quarterly dividend pay, for me, it’s why I invested in MGP.
As always, perform due diligence and do a lot of research before investing. Talk to a financial advisor and find out if MGM Growth Properties LLC (NYSE: MGP) is a perfect investment for you.
