CZR - The Las Vegas Strip Is Changing Before Our Eyes
Las Vegas has gone through a number of transformations over the last half-century, going from mob town to mega-resorts built by junk bonds to an REIT haven. A largely unseen trend in the city over the last half decade has been the sale of a vast majority of the Las Vegas Strip's real estate to investment firms called real estate investment trusts (REIT).
MGM Resorts (NYSE: MGM) started MGM Growth Properties (NYSE: MGP) in 2016, Caesars Entertainment (NASDAQ: CZR) followed with VICI Properties (NYSE: VICI) in 2017, which helped fund its merger with Eldorado Resorts . And along the way, Blackstone , Simon Property Group , Invesco , Crown Acquisitions, and others have acquired real estate in Las Vegas. The goal of most of these deals has been to monetize real estate and maintain the hotel and casino operations in an "asset-light" entity.
This week, the monetization of real estate took a massive step forward when MGM Growth Properties agreed to be acquired by VICI Properties. Once the deal is closed, VICI Properties will own a majority of the real estate on the Las Vegas Strip, a huge shift of power in the industry.
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The Las Vegas Strip Is Changing Before Our Eyes