VICI - MGM Growth Properties: Let It Ride On VICI Merger

• There is little arb opportunity left in the MGP-VICI deal but also low risk of it falling through.
• Owning MGP now will get you VICI at a 1.6% discount and a slightly higher dividend before the merger closes.
• The combined REIT will own one-of-a-kind properties on the Las Vegas Strip and regional casinos with insurmountable barriers to entry.
• The companies collected all rent payments during the pandemic and have long-term contracts with rent escalators.
• The debt could be upgraded to investment grade, allowing for additional accretive growth in the future.

For further details see: