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