MGM Growth Properties (MGP) Misses Q4 EPS by 2c, Revenues Miss

MGM Growth Properties (NYSE: MGP) reported Q4 EPS of $0.25, $0.02 worse than the analyst estimate of $0.27. Revenue for the quarter came in at $225.89 million versus the consensus estimate of $229.38 million.

Financial highlights for the fourth quarter of 2019:

• Rental revenue was $219.8 million;
• Consolidated net income was $72.9 million, or $0.24 per diluted Operating Partnership unit;
• Funds From Operations(1) ("FFO") was $144.0 million, or $0.47 per diluted Operating Partnership unit;
• Adjusted Funds From Operations(2) ("AFFO") was $177.5 million, or $0.58 per diluted Operating Partnership unit;
• Adjusted EBITDA(3) was $233.0 million; and
• General and administrative expenses were $4.2 million.

"2019 was a year of significant growth for MGP as we closed three accretive transactions, acquiring the real estate assets of Empire City Casino from a third party, selling the previously acquired operations of Northfield Park to MGM and monetizing the Park MGM improvements, which resulted in $160 million of additional rent and further demonstrated the power of our leading partnership with our tenant, MGM Resorts," said James Stewart, CEO of MGP. "2020 is off to an exciting start as we expect to complete the transaction to acquire majority ownership of MGM Grand Las Vegas, an iconic casino resort on the Las Vegas Strip, in the near term and we are looking forward to continuing to seek opportunities to grow our portfolio this year and executing on all facets of our business plan to prudently deliver shareholder value."

"2019 was marked by many significant achievements for MGP, highlighted by three dividend increases that resulted in an annualized dividend of $1.88 per share which represents a total increase of $0.09 per share year over year," said Andy Chien, CFO of MGP. "We received strong support from the capital markets as demonstrated by the two successful follow-on equity offerings and the issuance of $750 million in senior notes. These capital market transactions positioned the balance sheet to expand our portfolio throughout the year and also provided the flexibility to fund future transactions, while remaining in our target leverage range."

For earnings history and earnings-related data on MGM Growth Properties (MGP) click here.

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