MGP - MGM Resorts unloads Springfield property to MGM Growth Properties

Bank of America weighs in on the sale of MGM Resorts' (MGM) property in Springfield to MGM Growth Properties (MGP) for $400M. Analyst Shaun Kelly says the transaction represents a 13.3X rent multiple/7.5% cap rate and should be 1% to 2% accretive to MGP AFFO/share. MGP is expected to fund a portion of the transaction via equity given high leverage relative to target ranges. "This deal came slightly quicker than we had expected and should provide modest accretion to MGP while further bolstering balance sheet strength for MGM. However, it does little to change the narrative on either stock in our view as 1) MGP has now largely exhausted its embedded pipeline with MGM and 2) MGM will need further, more significant action to become truly asset-light." At the end of Q1, MGM Resorts held a 42% economic interest in the operating partnership of MGP. Read further details on the

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MGM Resorts unloads Springfield property to MGM Growth Properties