MGM Resorts International announced the completion of the redemption of approximately 37.1 million of its operating partnership units of MGM Growth Properties (MGP) Operating Partnership LP, the operator’s affiliated real estate investment trust, netting aggregate cash proceeds of approximately $1.2 billion.
Following the redemption, MGM Resorts’ ownership in the Operating Partnership was reduced from 53 percent to 42.1 percent.
“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 percent, from 61 percent just one year ago,” said Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts.
“Our strong liquidity position has been an invaluable asset to the company through the crisis. As the broader recovery in our core business and our cost efficiency efforts begin to pave a tangible path to free cash flow generation, we will remain prudent in allocating our capital to maximize shareholder value, including executing on key growth opportunities, maintaining a strong balance sheet, and returning cash to shareholders.”
MGM created the MGM Growth Properties in 2015, and once owned 73 percent as the sole operating partner of the REIT.
