ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
DELAWARE (MGM Growth Properties LLC)
DELAWARE (MGM Growth Properties Operating Partnership LP)
|
47-5513237
81-1162318
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
|
Accelerated filer
|
|
Non-accelerated filer
X
|
|
Small reporting company
|
|
Emerging growth company
|
Large accelerated filer
|
|
Accelerated filer
|
|
Non-accelerated filer
X
|
|
Small reporting company
|
|
Emerging growth company
|
•
|
enhances investors’ understanding of MGP and the Operating Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
|
•
|
eliminates duplicative disclosure and provides a more streamlined and readable presentation since a substantial portion of the disclosure applies to both MGP and the Operating Partnership, which we believe will assist investors in getting all relevant information on their investment in one place rather than having to access and review largely duplicative reports; and
|
•
|
creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.
|
|
|
Page
|
PART I.
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
MGM Growth Properties LLC:
|
|
|
||
|
||
|
||
|
||
|
MGM Growth Properties Operating Partnership LP:
|
|
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
PART II.
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
March 31, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|||||||
Real estate investments, net
|
$
|
9,019,620
|
|
|
$
|
9,079,678
|
|
Cash and cash equivalents
|
368,298
|
|
|
360,492
|
|
||
Tenant and other receivables, net
|
4,612
|
|
|
9,503
|
|
||
Prepaid expenses and other assets
|
11,154
|
|
|
10,906
|
|
||
Above market lease, asset
|
45,768
|
|
|
46,161
|
|
||
Total assets
|
$
|
9,449,452
|
|
|
$
|
9,506,740
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||
Liabilities
|
|
|
|
||||
Debt, net
|
$
|
3,606,973
|
|
|
$
|
3,621,942
|
|
Due to MGM Resorts International and affiliates
|
816
|
|
|
166
|
|
||
Accounts payable, accrued expenses and other liabilities
|
4,829
|
|
|
10,478
|
|
||
Above market lease, liability
|
47,735
|
|
|
47,957
|
|
||
Accrued interest
|
27,018
|
|
|
26,137
|
|
||
Dividend payable
|
94,109
|
|
|
94,109
|
|
||
Deferred revenue
|
80,567
|
|
|
72,322
|
|
||
Deferred income taxes, net
|
25,368
|
|
|
25,368
|
|
||
Total liabilities
|
3,887,415
|
|
|
3,898,479
|
|
||
Commitments and contingencies (
Note 12
)
|
|
|
|
||||
Shareholders’ equity
|
|
|
|
||||
Class A shares: no par value, 1,000,000,000 shares authorized, 57,500,000 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
1,363,270
|
|
|
1,363,130
|
|
||
Accumulated deficit
|
(40,692
|
)
|
|
(29,758
|
)
|
||
Accumulated other comprehensive income
|
295
|
|
|
445
|
|
||
Total Class A shareholders’ equity
|
1,322,873
|
|
|
1,333,817
|
|
||
Noncontrolling interest
|
4,239,164
|
|
|
4,274,444
|
|
||
Total shareholders’ equity
|
5,562,037
|
|
|
5,608,261
|
|
||
Total liabilities and shareholders’ equity
|
$
|
9,449,452
|
|
|
$
|
9,506,740
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues
|
|
|
|
||||
Rental revenue
|
$
|
163,177
|
|
|
$
|
—
|
|
Tenant reimbursements and other
|
20,722
|
|
|
—
|
|
||
|
183,899
|
|
|
—
|
|
||
Expenses
|
|
|
|
||||
Depreciation
|
61,684
|
|
|
51,476
|
|
||
Property transactions, net
|
6,855
|
|
|
874
|
|
||
Property taxes
|
20,487
|
|
|
13,236
|
|
||
Property insurance
|
—
|
|
|
2,384
|
|
||
Amortization of above market lease, net
|
171
|
|
|
—
|
|
||
General and administrative
|
2,680
|
|
|
—
|
|
||
|
91,877
|
|
|
67,970
|
|
||
Operating income (loss)
|
92,022
|
|
|
(67,970
|
)
|
||
Non-operating income (expense)
|
|
|
|
||||
Interest income
|
678
|
|
|
—
|
|
||
Interest expense
|
(44,636
|
)
|
|
—
|
|
||
Other non-operating
|
(134
|
)
|
|
—
|
|
||
|
(44,092
|
)
|
|
—
|
|
||
Income (loss) before income taxes
|
47,930
|
|
|
(67,970
|
)
|
||
Provision for income taxes
|
(1,238
|
)
|
|
—
|
|
||
Net income (loss)
|
46,692
|
|
|
(67,970
|
)
|
||
Less: Net (income) loss attributable to noncontrolling interest
|
(35,344
|
)
|
|
67,970
|
|
||
Net income attributable to Class A shareholders
|
$
|
11,348
|
|
|
$
|
—
|
|
|
|
|
|
||||
Weighted average Class A shares outstanding:
|
|
|
|
||||
Basic
|
57,506,195
|
|
|
N/A
|
|
||
Diluted
|
57,784,240
|
|
|
N/A
|
|
||
|
|
|
|
||||
Net income per Class A share (basic)
|
$
|
0.20
|
|
|
N/A
|
|
|
Net income per Class A share (diluted)
|
$
|
0.20
|
|
|
N/A
|
|
|
|
|
|
|
||||
Dividends declared per Class A share
|
$
|
0.3875
|
|
|
N/A
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Net income (loss)
|
$
|
46,692
|
|
|
$
|
(67,970
|
)
|
Other comprehensive loss
|
|
|
|
||||
Unrealized loss on cash flow hedges, net
|
(634
|
)
|
|
—
|
|
||
Other comprehensive loss
|
(634
|
)
|
|
—
|
|
||
Comprehensive income (loss)
|
46,058
|
|
|
(67,970
|
)
|
||
Less: Comprehensive income attributable to noncontrolling interests
|
(34,860
|
)
|
|
—
|
|
||
Comprehensive income (loss) attributable to Class A shareholders
|
$
|
11,198
|
|
|
$
|
(67,970
|
)
|
|
Three Months Ended
March 31, |
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
46,692
|
|
|
$
|
(67,970
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation
|
61,684
|
|
|
51,476
|
|
||
Property transactions, net
|
6,855
|
|
|
874
|
|
||
Amortization of deferred financing costs and debt discount
|
2,806
|
|
|
—
|
|
||
Amortization related to above market lease, net
|
171
|
|
|
—
|
|
||
Provision for income taxes
|
1,238
|
|
|
—
|
|
||
Amortization of deferred revenue
|
(235
|
)
|
|
—
|
|
||
Straight-line rental revenues
|
(677
|
)
|
|
—
|
|
||
Share-based compensation
|
188
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Tenant and other receivables, net
|
4,891
|
|
|
—
|
|
||
Prepaid expenses and other assets
|
(704
|
)
|
|
—
|
|
||
Due to MGM Resorts International and affiliates
|
650
|
|
|
—
|
|
||
Accounts payable, accrued expenses and other liabilities
|
(5,249
|
)
|
|
—
|
|
||
Accrued interest
|
881
|
|
|
—
|
|
||
Net cash provided by (used in) operating activities
|
119,191
|
|
|
(15,620
|
)
|
||
Cash flows from investing activities
|
|
|
|
||||
Capital expenditures for property and equipment funded by Parent
|
—
|
|
|
(111,241
|
)
|
||
Net cash used in investing activities
|
—
|
|
|
(111,241
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Deferred financing costs
|
(526
|
)
|
|
—
|
|
||
Repayment of debt principal
|
(16,750
|
)
|
|
—
|
|
||
Dividends and distributions paid
|
(94,109
|
)
|
|
—
|
|
||
Net cash transfers from Parent
|
—
|
|
|
126,861
|
|
||
Net cash (used in) provided by financing activities
|
(111,385
|
)
|
|
126,861
|
|
||
Cash and cash equivalents
|
|
|
|
||||
Net increase for the period
|
7,806
|
|
|
—
|
|
||
Balance, beginning of period
|
360,492
|
|
|
—
|
|
||
Balance, end of period
|
$
|
368,298
|
|
|
$
|
—
|
|
Supplemental cash flow disclosures
|
|
|
|
||||
Interest paid
|
$
|
40,949
|
|
|
$
|
—
|
|
Non-cash investing and financing activities
|
|
|
|
||||
Non-Normal Tenant Improvements by Tenant
|
$
|
8,480
|
|
|
$
|
—
|
|
Accrual of dividends and distributions payable to Class A shareholders and Operating Partnership unit holders
|
$
|
94,109
|
|
|
$
|
—
|
|
Allocation of tax attributes (to) from Parent
|
$
|
—
|
|
|
$
|
(14,695
|
)
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|||||||
Real estate investments, net
|
$
|
9,019,620
|
|
|
$
|
9,079,678
|
|
Cash and cash equivalents
|
368,298
|
|
|
360,492
|
|
||
Tenant and other receivables, net
|
4,612
|
|
|
9,503
|
|
||
Prepaid expenses and other assets
|
11,154
|
|
|
10,906
|
|
||
Above market lease, asset
|
45,768
|
|
|
46,161
|
|
||
Total assets
|
$
|
9,449,452
|
|
|
$
|
9,506,740
|
|
|
|
|
|
||||
LIABILITIES AND PARTNERS' CAPITAL
|
|||||||
Liabilities
|
|
|
|
||||
Debt, net
|
$
|
3,606,973
|
|
|
$
|
3,621,942
|
|
Due to MGM Resorts International and affiliates
|
816
|
|
|
166
|
|
||
Accounts payable, accrued expenses and other liabilities
|
4,829
|
|
|
10,478
|
|
||
Above market lease, liability
|
47,735
|
|
|
47,957
|
|
||
Accrued interest
|
27,018
|
|
|
26,137
|
|
||
Dividend payable
|
94,109
|
|
|
94,109
|
|
||
Deferred revenue
|
80,567
|
|
|
72,322
|
|
||
Deferred income taxes, net
|
25,368
|
|
|
25,368
|
|
||
Total liabilities
|
3,887,415
|
|
|
3,898,479
|
|
||
Commitments and contingencies (
Note 12
)
|
|
|
|
||||
Partners' capital
|
|
|
|
||||
General partner
|
—
|
|
|
—
|
|
||
Limited partners: 242,862,136 Operating Partnership units issued and outstanding as of March 31, 2017 and December 31, 2016
|
5,562,037
|
|
|
5,608,261
|
|
||
Total partners' capital
|
5,562,037
|
|
|
5,608,261
|
|
||
Total liabilities and partners’ capital
|
$
|
9,449,452
|
|
|
$
|
9,506,740
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues
|
|
|
|
||||
Rental revenue
|
$
|
163,177
|
|
|
$
|
—
|
|
Tenant reimbursements and other
|
20,722
|
|
|
—
|
|
||
|
183,899
|
|
|
—
|
|
||
Expenses
|
|
|
|
||||
Depreciation
|
61,684
|
|
|
51,476
|
|
||
Property transactions, net
|
6,855
|
|
|
874
|
|
||
Property taxes
|
20,487
|
|
|
13,236
|
|
||
Property insurance
|
—
|
|
|
2,384
|
|
||
Amortization of above market lease, net
|
171
|
|
|
—
|
|
||
General and administrative
|
2,680
|
|
|
—
|
|
||
|
91,877
|
|
|
67,970
|
|
||
Operating income (loss)
|
92,022
|
|
|
(67,970
|
)
|
||
Non-operating income (expense)
|
|
|
|
||||
Interest income
|
678
|
|
|
—
|
|
||
Interest expense
|
(44,636
|
)
|
|
—
|
|
||
Other non-operating
|
(134
|
)
|
|
—
|
|
||
|
(44,092
|
)
|
|
—
|
|
||
Income (loss) before income taxes
|
47,930
|
|
|
(67,970
|
)
|
||
Provision for income taxes
|
(1,238
|
)
|
|
—
|
|
||
Net income (loss)
|
46,692
|
|
|
(67,970
|
)
|
||
|
|
|
|
||||
Weighted average Operating Partnership units outstanding:
|
|
|
|
||||
Basic
|
242,868,331
|
|
|
N/A
|
|
||
Diluted
|
243,146,376
|
|
|
N/A
|
|
||
|
|
|
|
||||
Net income per Operating Partnership unit (basic)
|
$
|
0.19
|
|
|
N/A
|
|
|
Net income per Operating Partnership unit (diluted)
|
$
|
0.19
|
|
|
N/A
|
|
|
|
|
|
|
||||
Distributions declared per Operating Partnership unit
|
$
|
0.3875
|
|
|
N/A
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Net income (loss)
|
$
|
46,692
|
|
|
$
|
(67,970
|
)
|
Unrealized loss on cash flow hedges, net
|
(634
|
)
|
|
—
|
|
||
Comprehensive income (loss)
|
$
|
46,058
|
|
|
$
|
(67,970
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income (loss)
|
$
|
46,692
|
|
|
$
|
(67,970
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation
|
61,684
|
|
|
51,476
|
|
||
Property transactions, net
|
6,855
|
|
|
874
|
|
||
Amortization of deferred financing costs and debt discount
|
2,806
|
|
|
—
|
|
||
Amortization related to above market lease, net
|
171
|
|
|
—
|
|
||
Provision for income taxes
|
1,238
|
|
|
—
|
|
||
Amortization of deferred revenue
|
(235
|
)
|
|
—
|
|
||
Straight-line rental revenues
|
(677
|
)
|
|
—
|
|
||
Share-based compensation
|
188
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Tenant and other receivables, net
|
4,891
|
|
|
—
|
|
||
Prepaid expenses and other assets
|
(704
|
)
|
|
—
|
|
||
Due to MGM Resorts International and affiliates
|
650
|
|
|
—
|
|
||
Accounts payable, accrued expenses and other liabilities
|
(5,249
|
)
|
|
—
|
|
||
Accrued interest
|
881
|
|
|
—
|
|
||
Net cash provided by (used in) operating activities
|
119,191
|
|
|
(15,620
|
)
|
||
Cash flows from investing activities
|
|
|
|
||||
Capital expenditures for property and equipment funded by Parent
|
—
|
|
|
(111,241
|
)
|
||
Net cash used in investing activities
|
—
|
|
|
(111,241
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Deferred financing costs
|
(526
|
)
|
|
—
|
|
||
Repayment of debt principal
|
(16,750
|
)
|
|
—
|
|
||
Distributions paid
|
(94,109
|
)
|
|
—
|
|
||
Net cash transfers from Parent
|
—
|
|
|
126,861
|
|
||
Net cash (used in) provided by financing activities
|
(111,385
|
)
|
|
126,861
|
|
||
Cash and cash equivalents
|
|
|
|
||||
Net increase for the period
|
7,806
|
|
|
—
|
|
||
Balance, beginning of period
|
360,492
|
|
|
—
|
|
||
Balance, end of period
|
$
|
368,298
|
|
|
$
|
—
|
|
Supplemental cash flow disclosures
|
|
|
|
||||
Interest paid
|
$
|
40,949
|
|
|
$
|
—
|
|
Non-cash investing and financing activities
|
|
|
|
||||
Non-Normal Tenant Improvements by Tenant
|
$
|
8,480
|
|
|
$
|
—
|
|
Accrual of distributions payable to Operating Partnership unit holders
|
$
|
94,109
|
|
|
$
|
—
|
|
Allocation of tax attributes (to) from Parent
|
$
|
—
|
|
|
$
|
(14,695
|
)
|
Buildings and building improvements
|
20 to 40 years
|
Land improvements
|
10 to 20 years
|
Fixtures and integral equipment
|
3 to 20 years
|
|
March 31, 2017
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Derivative asset - interest rate swaps
|
$
|
2,770
|
|
|
$
|
—
|
|
|
$
|
2,770
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Senior secured credit facility:
|
|
|
|
|
|
|
|
||||||||
Senior secured term loan A facility
|
285,000
|
|
|
|
|
285,000
|
|
|
|
||||||
Senior secured term loan B facility
|
1,842,947
|
|
|
|
|
1,842,947
|
|
|
|
||||||
Senior secured revolving credit facility
|
—
|
|
|
|
|
—
|
|
|
|
||||||
$1,050 million 5.625% senior notes, due 2024
|
1,110,375
|
|
|
|
|
1,110,375
|
|
|
|
||||||
$500 million 4.50% senior notes, due 2026
|
484,375
|
|
|
|
|
484,375
|
|
|
|
||||||
Derivative liability - interest rate swaps
|
1,525
|
|
|
|
|
1,525
|
|
|
|
||||||
|
$
|
3,724,222
|
|
|
$
|
—
|
|
|
$
|
3,724,222
|
|
|
$
|
—
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
|
(in thousands)
|
||||||
Land
|
$
|
4,143,513
|
|
|
$
|
4,143,513
|
|
Buildings, building improvements, land improvements and integral equipment
|
7,324,486
|
|
|
7,324,657
|
|
||
|
11,467,999
|
|
|
11,468,170
|
|
||
Less: Accumulated depreciation
|
(2,448,379
|
)
|
|
(2,388,492
|
)
|
||
|
$
|
9,019,620
|
|
|
$
|
9,079,678
|
|
Year ending December 31,
|
(in thousands)
|
||
2017
|
$
|
496,275
|
|
2018
|
670,651
|
|
|
2019
|
682,764
|
|
|
2020
|
695,119
|
|
|
2021
|
707,721
|
|
|
2022
|
662,137
|
|
|
Thereafter
|
2,099,134
|
|
|
March 31,
|
|
December 31,
|
||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Senior secured credit facility:
|
|
|
|
||||
Senior secured term loan A facility
|
$
|
285,000
|
|
|
$
|
292,500
|
|
Senior secured term loan B facility
|
1,831,500
|
|
|
1,840,750
|
|
||
Senior secured revolving credit facility
|
—
|
|
|
—
|
|
||
$1,050 million 5.625% senior notes, due 2024
|
1,050,000
|
|
|
1,050,000
|
|
||
$500 million 4.50% senior notes, due 2026
|
500,000
|
|
|
500,000
|
|
||
|
3,666,500
|
|
|
3,683,250
|
|
||
Less: Unamortized discount and debt issuance costs
|
(59,527
|
)
|
|
(61,308
|
)
|
||
|
$
|
3,606,973
|
|
|
$
|
3,621,942
|
|
Year ending December 31,
|
(
in thousands
)
|
||
2017
|
$
|
25,125
|
|
2018
|
33,500
|
|
|
2019
|
33,500
|
|
|
2020
|
33,500
|
|
|
2021
|
247,250
|
|
|
Thereafter
|
3,293,625
|
|
|
|
$
|
3,666,500
|
|
|
|
|
|
|
|
|
|
Fair Value Asset (Liability)
|
|||||||||
Effective Date
|
|
Maturity Date
|
|
Notional Amount
|
|
Fixed Rate
|
|
March 31, 2017
|
|
December 31, 2016
|
|||||||
(in thousands, except percentages)
|
|||||||||||||||||
December 8, 2016
|
|
November 30, 2021
|
|
$
|
500,000
|
|
|
1.825
|
%
|
|
$
|
2,770
|
|
|
$
|
1,879
|
|
January 31, 2017
|
|
November 30, 2021
|
|
700,000
|
|
|
1.964
|
%
|
|
(1,525
|
)
|
|
N/A
|
|
|||
|
|
|
|
$
|
1,200,000
|
|
|
|
|
$
|
1,245
|
|
|
$
|
1,879
|
|
|
Class A
Shares |
|
Additional
Paid-in Capital |
|
Accumulated
Deficit |
|
Other Comprehensive Income
|
|
Total Shareholders' Equity
|
|
Non-controlling
Interest |
|
Total
Shareholders’ Equity |
||||||||||||||
|
(in thousands, except per share amounts)
|
||||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
—
|
|
|
$
|
1,363,130
|
|
|
$
|
(29,758
|
)
|
|
$
|
445
|
|
|
1,333,817
|
|
|
$
|
4,274,444
|
|
|
$
|
5,608,261
|
|
|
Net income - January 1, 2017 to March 31, 2017
|
—
|
|
|
—
|
|
|
11,348
|
|
|
—
|
|
|
11,348
|
|
|
35,344
|
|
|
46,692
|
|
|||||||
Other comprehensive loss - cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|
(150
|
)
|
|
(484
|
)
|
|
(634
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
144
|
|
|
188
|
|
|||||||
Deemed contribution - tax sharing agreement
|
|
|
|
|
|
|
|
|
—
|
|
|
1,238
|
|
|
1,238
|
|
|||||||||||
Dividends declared, $0.3875 per Class A share
|
—
|
|
|
—
|
|
|
(22,282
|
)
|
|
—
|
|
|
(22,282
|
)
|
|
(71,827
|
)
|
|
(94,109
|
)
|
|||||||
Other
|
—
|
|
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
305
|
|
|
401
|
|
|||||||
Balance at March 31, 2017
|
$
|
—
|
|
|
$
|
1,363,270
|
|
|
$
|
(40,692
|
)
|
|
$
|
295
|
|
|
$
|
1,322,873
|
|
|
$
|
4,239,164
|
|
|
$
|
5,562,037
|
|
|
General Partner
|
|
Limited Partner
|
|
Total Partners' Capital
|
||||||
|
(in thousands, except per unit amounts)
|
||||||||||
Balance at January 1, 2017
|
$
|
—
|
|
|
$
|
5,608,261
|
|
|
$
|
5,608,261
|
|
Net income - January 1, 2017 to March 31, 2017
|
—
|
|
|
46,692
|
|
|
46,692
|
|
|||
Other comprehensive loss - cash flow hedges
|
—
|
|
|
(634
|
)
|
|
(634
|
)
|
|||
Share-based compensation
|
—
|
|
|
188
|
|
|
188
|
|
|||
Deemed contribution - tax sharing agreement
|
—
|
|
|
1,238
|
|
|
1,238
|
|
|||
Distributions declared, $0.3875 per Operating Partnership unit
|
—
|
|
|
(94,109
|
)
|
|
(94,109
|
)
|
|||
Other
|
—
|
|
|
401
|
|
|
401
|
|
|||
Balance at March 31, 2017
|
$
|
—
|
|
|
$
|
5,562,037
|
|
|
$
|
5,562,037
|
|
|
Changes in Fair Value of Effective Cash Flow Hedge
|
|
Total
|
||||
|
(in thousands)
|
||||||
Balance at December 31, 2016
|
$
|
1,879
|
|
|
$
|
1,879
|
|
Other comprehensive income before reclassifications
|
2,052
|
|
|
2,052
|
|
||
Amounts reclassified from accumulated other comprehensive income
|
(2,686
|
)
|
|
(2,686
|
)
|
||
Net current period other comprehensive loss
|
(634
|
)
|
|
(634
|
)
|
||
Balance at March 31, 2017
|
1,245
|
|
|
1,245
|
|
||
Accumulated other comprehensive (income) attributable to noncontrolling interest
|
(950
|
)
|
|
(950
|
)
|
||
Accumulated other comprehensive income attributable to Class A shareholders
|
$
|
295
|
|
|
$
|
295
|
|
|
Three Months Ended March 31,
|
||
|
2017
|
||
|
(in thousands, except share and per share amounts)
|
||
Basic net income per share
|
|
||
Numerator:
|
|
||
Net income attributable to Class A shares
|
$
|
11,348
|
|
Denominator:
|
|
||
Basic weighted average Class A shares outstanding
|
57,506,195
|
|
|
Basic net income per Class A share
|
$
|
0.20
|
|
|
|
||
|
Three Months Ended March 31,
|
||
|
2017
|
||
|
(in thousands, except share and per share amounts)
|
||
Diluted net income per share
|
|
||
Numerator:
|
|
||
Net income attributable to Class A shares
|
$
|
11,348
|
|
Denominator:
|
|
||
Basic weighted average Class A shares outstanding
|
57,506,195
|
|
|
Effect of dilutive shares for diluted net income per Class A share
|
278,045
|
|
|
Weighted average shares for diluted net income per Class A share
|
57,784,240
|
|
|
Diluted net income per Class A share
|
$
|
0.20
|
|
|
Three Months Ended March 31,
|
||
|
2017
|
||
|
(in thousands, except unit and per unit amounts)
|
||
Basic net income per Operating Partnership unit
|
|
||
Numerator:
|
|
||
Net income
|
$
|
46,692
|
|
Denominator:
|
|
||
Basic weighted average Operating Partnership units outstanding
|
242,868,331
|
|
|
Basic net income per Operating Partnership unit
|
$
|
0.19
|
|
|
|
||
|
Three Months Ended March 31,
|
||
|
2017
|
||
|
(in thousands, except unit and per unit amounts)
|
||
Diluted net income per Operating Partnership unit
|
|
||
Numerator:
|
|
||
Net income
|
$
|
46,692
|
|
Denominator:
|
|
||
Basic weighted average Operating Partnership units outstanding
|
242,868,331
|
|
|
Effect of dilutive shares for diluted net income per Operating Partnership unit
|
278,045
|
|
|
Weighted average shares for diluted net income per Operating Partnership unit
|
243,146,376
|
|
|
Diluted net income per Operating Partnership unit
|
$
|
0.19
|
|
|
(in thousands)
|
||
Year ending December 31,
|
|
||
2017
|
$
|
4,816
|
|
2018
|
6,688
|
|
|
2019
|
6,688
|
|
|
2020
|
7,014
|
|
|
2021
|
7,027
|
|
|
Thereafter
|
703,516
|
|
|
Total minimum lease payments
|
$
|
735,749
|
|
CONSOLIDATING BALANCE SHEET INFORMATION
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
March 31, 2017
|
||||||||||||||||||
|
|
Operating
|
|
|
|
Guarantor
|
|
|
|
|
||||||||||
|
|
Partnership
|
|
Co-Issuer
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Real estate investments, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,019,620
|
|
|
$
|
—
|
|
|
$
|
9,019,620
|
|
Cash and cash equivalents
|
|
368,298
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
368,298
|
|
|||||
Tenant and other receivables, net
|
|
319
|
|
|
—
|
|
|
4,293
|
|
|
—
|
|
|
4,612
|
|
|||||
Intercompany
|
|
717,674
|
|
|
—
|
|
|
—
|
|
|
(717,674
|
)
|
|
—
|
|
|||||
Prepaid expenses and other assets
|
|
11,154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,154
|
|
|||||
Investments in subsidiaries
|
|
8,195,645
|
|
|
—
|
|
|
—
|
|
|
(8,195,645
|
)
|
|
—
|
|
|||||
Above market lease, asset
|
|
—
|
|
|
—
|
|
|
45,768
|
|
|
—
|
|
|
45,768
|
|
|||||
|
|
$
|
9,293,090
|
|
|
$
|
—
|
|
|
$
|
9,069,681
|
|
|
$
|
(8,913,319
|
)
|
|
$
|
9,449,452
|
|
Debt, net
|
|
3,606,973
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,606,973
|
|
|||||
Due to MGM Resorts International and affiliates
|
|
—
|
|
|
—
|
|
|
816
|
|
|
—
|
|
|
816
|
|
|||||
Intercompany
|
|
—
|
|
|
—
|
|
|
717,674
|
|
|
(717,674
|
)
|
|
—
|
|
|||||
Accounts payable, accrued expenses, and other liabilities
|
|
2,953
|
|
|
—
|
|
|
1,876
|
|
|
—
|
|
|
4,829
|
|
|||||
Above market lease, liability
|
|
—
|
|
|
—
|
|
|
47,735
|
|
|
—
|
|
|
47,735
|
|
|||||
Accrued interest
|
|
27,018
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,018
|
|
|||||
Distribution payable
|
|
94,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,109
|
|
|||||
Deferred revenue
|
|
—
|
|
|
—
|
|
|
80,567
|
|
|
—
|
|
|
80,567
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
—
|
|
|
25,368
|
|
|
—
|
|
|
25,368
|
|
|||||
Total liabilities
|
|
3,731,053
|
|
|
—
|
|
|
874,036
|
|
|
(717,674
|
)
|
|
3,887,415
|
|
|||||
General partner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Limited partners
|
|
5,562,037
|
|
|
—
|
|
|
8,195,645
|
|
|
(8,195,645
|
)
|
|
5,562,037
|
|
|||||
Total partners' capital
|
|
5,562,037
|
|
|
—
|
|
|
8,195,645
|
|
|
(8,195,645
|
)
|
|
5,562,037
|
|
|||||
Total liabilities and partners' capital
|
|
$
|
9,293,090
|
|
|
$
|
—
|
|
|
$
|
9,069,681
|
|
|
$
|
(8,913,319
|
)
|
|
$
|
9,449,452
|
|
CONSOLIDATING BALANCE SHEET INFORMATION
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Operating
|
|
|
|
Guarantor
|
|
|
|
|
||||||||||
|
|
Partnership
|
|
Co-Issuer
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Real estate investments, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,079,678
|
|
|
$
|
—
|
|
|
$
|
9,079,678
|
|
Cash and cash equivalents
|
|
360,492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360,492
|
|
|||||
Tenant and other receivables, net
|
|
2,059
|
|
|
—
|
|
|
7,444
|
|
|
—
|
|
|
9,503
|
|
|||||
Intercompany
|
|
880,823
|
|
|
—
|
|
|
—
|
|
|
(880,823
|
)
|
|
—
|
|
|||||
Prepaid expenses and other assets
|
|
9,167
|
|
|
—
|
|
|
1,739
|
|
|
—
|
|
|
10,906
|
|
|||||
Investments in subsidiaries
|
|
8,100,942
|
|
|
—
|
|
|
—
|
|
|
(8,100,942
|
)
|
|
—
|
|
|||||
Above market lease, asset
|
|
—
|
|
|
—
|
|
|
46,161
|
|
|
—
|
|
|
46,161
|
|
|||||
|
|
$
|
9,353,483
|
|
|
$
|
—
|
|
|
$
|
9,135,022
|
|
|
$
|
(8,981,765
|
)
|
|
$
|
9,506,740
|
|
Debt, net
|
|
3,621,942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,621,942
|
|
|||||
Due to MGM Resorts International and affiliates
|
|
—
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
166
|
|
|||||
Intercompany
|
|
—
|
|
|
—
|
|
|
880,823
|
|
|
(880,823
|
)
|
|
—
|
|
|||||
Accounts payable, accrued expenses, and other liabilities
|
|
3,034
|
|
|
—
|
|
|
7,444
|
|
|
—
|
|
|
10,478
|
|
|||||
Above market lease, liability
|
|
—
|
|
|
—
|
|
|
47,957
|
|
|
—
|
|
|
47,957
|
|
|||||
Accrued interest
|
|
26,137
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,137
|
|
|||||
Distribution payable
|
|
94,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94,109
|
|
|||||
Deferred revenue
|
|
—
|
|
|
—
|
|
|
72,322
|
|
|
—
|
|
|
72,322
|
|
|||||
Deferred income taxes, net
|
|
—
|
|
|
—
|
|
|
25,368
|
|
|
—
|
|
|
25,368
|
|
|||||
Total liabilities
|
|
3,745,222
|
|
|
—
|
|
|
1,034,080
|
|
|
(880,823
|
)
|
|
3,898,479
|
|
|||||
General partner
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Limited partners
|
|
5,608,261
|
|
|
—
|
|
|
8,100,942
|
|
|
(8,100,942
|
)
|
|
5,608,261
|
|
|||||
Total partners' capital
|
|
5,608,261
|
|
|
—
|
|
|
8,100,942
|
|
|
(8,100,942
|
)
|
|
5,608,261
|
|
|||||
Total liabilities and partners' capital
|
|
$
|
9,353,483
|
|
|
$
|
—
|
|
|
$
|
9,135,022
|
|
|
$
|
(8,981,765
|
)
|
|
$
|
9,506,740
|
|
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME INFORMATION
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31, 2017
|
||||||||||||||||||
|
|
Operating
|
|
|
|
Guarantor
|
|
|
|
|
||||||||||
|
|
Partnership
|
|
Co-Issuer
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Rental revenue
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
163,177
|
|
|
$
|
—
|
|
|
$
|
163,177
|
|
Tenants reimbursements and other
|
|
—
|
|
|
—
|
|
|
20,722
|
|
|
—
|
|
|
20,722
|
|
|||||
|
|
—
|
|
|
—
|
|
|
183,899
|
|
|
—
|
|
|
183,899
|
|
|||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation
|
|
—
|
|
|
—
|
|
|
61,684
|
|
|
—
|
|
|
61,684
|
|
|||||
Property transactions, net
|
|
—
|
|
|
—
|
|
|
6,855
|
|
|
—
|
|
|
6,855
|
|
|||||
Property taxes
|
|
—
|
|
|
—
|
|
|
20,487
|
|
|
—
|
|
|
20,487
|
|
|||||
Amortization of above market lease, net
|
|
—
|
|
|
—
|
|
|
171
|
|
|
—
|
|
|
171
|
|
|||||
General and administrative
|
|
2,680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,680
|
|
|||||
|
|
2,680
|
|
|
—
|
|
|
89,197
|
|
|
—
|
|
|
91,877
|
|
|||||
Operating income (loss)
|
|
(2,680
|
)
|
|
—
|
|
|
94,702
|
|
|
—
|
|
|
92,022
|
|
|||||
Equity in earnings of subsidiaries
|
|
93,464
|
|
|
—
|
|
|
—
|
|
|
(93,464
|
)
|
|
—
|
|
|||||
Non-operating expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
|
678
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
678
|
|
|||||
Interest expense
|
|
(44,636
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,636
|
)
|
|||||
Other non-operating
|
|
(134
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(134
|
)
|
|||||
|
|
(44,092
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44,092
|
)
|
|||||
Income (loss) before income taxes
|
|
46,692
|
|
|
—
|
|
|
94,702
|
|
|
(93,464
|
)
|
|
47,930
|
|
|||||
Provision for income taxes
|
|
—
|
|
|
—
|
|
|
(1,238
|
)
|
|
—
|
|
|
(1,238
|
)
|
|||||
Net income (loss)
|
|
$
|
46,692
|
|
|
$
|
—
|
|
|
$
|
93,464
|
|
|
$
|
(93,464
|
)
|
|
$
|
46,692
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss)
|
|
46,692
|
|
|
—
|
|
|
93,464
|
|
|
(93,464
|
)
|
|
46,692
|
|
|||||
Unrealized loss on cash flow hedges
|
|
(634
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(634
|
)
|
|||||
Comprehensive income (loss)
|
|
$
|
46,058
|
|
|
$
|
—
|
|
|
$
|
93,464
|
|
|
$
|
(93,464
|
)
|
|
$
|
46,058
|
|
CONSOLIDATING STATEMENT OF CASH FLOWS INFORMATION
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended March 31, 2017
|
||||||||||||||||||
|
|
Operating
|
|
|
|
Guarantor
|
|
|
|
|
||||||||||
|
|
Partnership
|
|
Co-Issuer
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
|
$
|
(43,309
|
)
|
|
$
|
—
|
|
|
$
|
162,500
|
|
|
$
|
—
|
|
|
$
|
119,191
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash used in investing activities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deferred financing costs
|
|
(526
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(526
|
)
|
|||||
Repayment of debt principal
|
|
(16,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,750
|
)
|
|||||
Distributions paid
|
|
(94,109
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(94,109
|
)
|
|||||
Cash received by Parent on behalf of Guarantor Subsidiaries
|
|
162,500
|
|
|
—
|
|
|
(162,500
|
)
|
|
—
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
|
51,115
|
|
|
—
|
|
|
(162,500
|
)
|
|
—
|
|
|
(111,385
|
)
|
|||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase for the period
|
|
7,806
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,806
|
|
|||||
Balance, beginning of period
|
|
360,492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
360,492
|
|
|||||
Balance, end of period
|
|
$
|
368,298
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
368,298
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Net revenues
|
$
|
183,899
|
|
|
$
|
—
|
|
Operating income (loss)
|
92,022
|
|
|
(67,970
|
)
|
||
Net income (loss)
|
46,692
|
|
|
(67,970
|
)
|
||
Net income attributable to Class A shareholders
|
11,348
|
|
|
—
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(in thousands)
|
||||||
Net income (loss)
|
$
|
46,692
|
|
|
$
|
(67,970
|
)
|
Depreciation
|
61,684
|
|
|
51,476
|
|
||
Property transactions, net
|
6,855
|
|
|
874
|
|
||
Funds From Operations
|
115,231
|
|
|
(15,620
|
)
|
||
Amortization of financing costs
|
2,806
|
|
|
—
|
|
||
Non-cash compensation expense
|
188
|
|
|
—
|
|
||
Net effect of straight-line rent and amortization of deferred revenue
|
(912
|
)
|
|
—
|
|
||
Amortization of above market lease, net
|
171
|
|
|
—
|
|
||
Provision for income taxes
|
1,238
|
|
|
—
|
|
||
Adjusted Funds From Operations
|
118,722
|
|
|
(15,620
|
)
|
||
Interest income
|
(678
|
)
|
|
—
|
|
||
Interest expense
|
44,636
|
|
|
—
|
|
||
Amortization of financing costs
|
(2,806
|
)
|
|
—
|
|
||
Adjusted EBITDA
|
$
|
159,874
|
|
|
$
|
(15,620
|
)
|
|
|
|
|
|
|
|
|
Fair Value Asset (Liability)
|
|||||||||
Effective Date
|
|
Maturity Date
|
|
Notional Amount
|
|
Fixed Rate
|
|
March 31, 2017
|
|
December 31, 2016
|
|||||||
(in thousands, except percentages)
|
|||||||||||||||||
December 8, 2016
|
|
November 30, 2021
|
|
$
|
500,000
|
|
|
1.825
|
%
|
|
$
|
2,770
|
|
|
$
|
1,879
|
|
January 31, 2017
|
|
November 30, 2021
|
|
700,000
|
|
|
1.964
|
%
|
|
(1,525
|
)
|
|
N/A
|
|
|||
|
|
|
|
$
|
1,200,000
|
|
|
|
|
$
|
1,245
|
|
|
$
|
1,879
|
|
|
|
Debt maturing in
|
|
Fair Value
March 31,
|
||||||||||||||||||||||||||||
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total
|
|
2017
|
||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
Fixed-rate
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,550.0
|
|
|
$
|
1,550.0
|
|
|
$
|
1,594.8
|
|
Average interest rate
|
|
|
|
|
|
|
|
|
|
|
|
5.262
|
%
|
|
5.262
|
%
|
|
|
||||||||||||||
Variable rate
|
|
$
|
25.1
|
|
|
$
|
33.5
|
|
|
$
|
33.5
|
|
|
$
|
33.5
|
|
|
$
|
247.3
|
|
|
$
|
1,743.6
|
|
|
$
|
2,116.5
|
|
|
$
|
2,127.9
|
|
Average interest rate
|
|
3.466
|
%
|
|
3.466
|
%
|
|
3.466
|
%
|
|
3.466
|
%
|
|
3.697
|
%
|
|
3.250
|
%
|
|
3.315
|
%
|
|
|
•
|
We are dependent on MGM (including its subsidiaries) unless and until we substantially diversify our portfolio, and an event that has a material adverse effect on MGM’s business, financial position or results of operations could have a material adverse effect on our business, financial position or results of operations.
|
•
|
We depend on our properties for all of our anticipated cash flows.
|
•
|
We may not be able to re-lease our properties following the expiration or termination of the Master Lease.
|
•
|
Our sole material assets are Operating Partnership units representing 23.7% of the ownership interests in the Operating Partnership, over which we have operating control through our ownership of its general partner, and our ownership interest in the general partner of the Operating Partnership. Because our interest in the Operating Partnership represents our only cash-generating asset, our cash flows and distributions depend entirely on the performance of the Operating Partnership and its ability to distribute cash to us.
|
•
|
The Master Lease restricts our ability to sell the properties or our interests in the Operating Partnership and Landlord.
|
•
|
We will have future capital needs and may not be able to obtain additional financing on acceptable terms.
|
•
|
Covenants in our debt agreements may limit our operational flexibility, and a covenant breach or default could materially adversely affect our business, financial position or results of operations.
|
•
|
Rising expenses could reduce cash flow and funds available for future acquisitions and distributions.
|
•
|
We have a limited operating history and the Predecessor historical financial information included in this Quarterly Report on Form 10-Q may not be a reliable indicator of future results.
|
•
|
We are dependent on the gaming industry and may be susceptible to the risks associated with it, which could materially adversely affect our business, financial position or results of operations.
|
•
|
Because a majority of our major gaming resorts are concentrated on the Las Vegas Strip (the “Strip”), we are subject to greater risks than a company that is more geographically diversified.
|
•
|
Our pursuit of investments in, and acquisitions or development of, additional properties (including our acquisition of the ROFO Properties) may be unsuccessful or fail to meet our expectations.
|
•
|
We may face extensive regulation from gaming and other regulatory authorities, and our operating agreement provides that any of our shares held by investors who are found to be unsuitable by state gaming regulatory authorities are subject to redemption.
|
•
|
Required regulatory approvals can delay or prohibit future leases or transfers of our gaming properties, which could result in periods in which we are unable to receive rent for such properties.
|
•
|
Net leases may not result in fair market lease rates over time, which could negatively impact our income and reduce the amount of funds available to make distributions to shareholders.
|
•
|
Our dividend yield could be reduced if we were to sell any of our properties in the future.
|
•
|
There can be no assurance that we will be able to make distributions to our Operating Partnership unitholders and Class A shareholders or maintain our anticipated level of distributions over time.
|
•
|
An increase in market interest rates could increase our interest costs on existing and future debt and could adversely affect the price of our Class A shares.
|
•
|
MGP is controlled by MGM, whose interests in our business may conflict with ours or yours.
|
•
|
We are dependent on MGM for the provision of administration services to our operations and assets.
|
•
|
MGM’s historical results may not be a reliable indicator of its future results.
|
•
|
Our operating agreement contains provisions that reduce or eliminate duties (including fiduciary duties) of our directors, officers and others.
|
•
|
If MGM engages in the same type of business we conduct, our ability to successfully operate and expand our business may be hampered.
|
•
|
The Master Lease and other agreements governing our relationship with MGM were not negotiated on an arm’s-length basis and the terms of those agreements may be less favorable to us than they might otherwise have been in an arm’s-length transaction.
|
•
|
In the event of a bankruptcy of the Tenant, a bankruptcy court may determine that the Master Lease is not a single lease but rather multiple severable leases, each of which can be assumed or rejected independently, in which case underperforming leases related to properties we own that are subject to the Master Lease could be rejected by the Tenant while tenant-favorable leases are allowed to remain in place.
|
•
|
MGM may undergo a change of control without the consent of us or of our shareholders.
|
•
|
If MGP does not qualify to be taxed as a REIT, or fails to remain qualified to be taxed as a REIT, it will be subject to U.S. federal income tax as a regular corporation and could face a substantial tax liability, which would have an adverse effect on our business, financial condition and results of operations.
|
•
|
Legislative or other actions affecting REITs could have a negative effect on us.
|
3.1
|
|
|
Amended and Restated Limited Partnership Agreement of MGM Growth Properties Operating Partnership LP, dated as of February 2, 2017
|
|
|
|
|
31.1
|
|
|
Certification of Chief Executive Officer of MGM Growth Properties LLC pursuant to Rule 13a-14(a) and 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
31.2
|
|
|
Certification of Chief Executive Officer of MGM Growth Properties Operating Partnership LP pursuant to Rule 13a-14(a) and 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
31.3
|
|
|
Certification of Chief Financial Officer of MGM Growth Properties LLC pursuant to Rule 13a-14(a) and15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
31.4
|
|
|
Certification of Chief Financial Officer of MGM Growth Properties Operating Partnership LP pursuant to Rule 13a-14(a) and 15d-14(a) of the Exchange Act, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
32.1
|
|
|
Certification of Chief Executive Officer of MGM Growth Properties LLC pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
|
|
|
32.2
|
|
|
Certification of Chief Executive Officer of MGM Growth Properties Operating Partnership LP pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
|
|
|
32.3
|
|
|
Certification of Chief Financial Officer of MGM Growth Properties LLC pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
|
|
|
32.4
|
|
|
Certification of Chief Financial Officer of MGM Growth Properties Operating Partnership LP pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
|
|
|
|
101
|
|
|
The following information from each of the MGM Growth Properties LLC and MGM Growth Properties Operating Partnership LP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 formatted in eXtensible Business Reporting Language: (i) Condensed Consolidated Balance Sheets at March 31, 2017 (unaudited) and December 31, 2016 (audited); (ii) Unaudited Condensed Combined and Consolidated Statements of Operations and Comprehensive Loss for the three-months ended March 31, 2017 and 2016; (iii) Unaudited Condensed Combined and Consolidated Statements of Cash Flows for the three-months ended March 31, 2017 and 2016; and (vi) Condensed Notes to Unaudited Condensed Combined and Consolidated Financial Statements.
|
|
MGM Growth Properties LLC
|
|
|
|
|
Date: May 5, 2017
|
By:
|
/s/ JAMES C. STEWART
|
|
|
James C. Stewart
|
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
Date: May 5, 2017
|
|
/s/ ANDY H. CHIEN
|
|
|
Andy H. Chien
|
|
|
Chief Financial Officer and Treasurer (Principal Financial Officer)
|
|
MGM Growth Properties Operating Partnership LP
|
|
|
By: MGM Growth Properties OP GP LLC, its general partner
|
|
|
|
|
Date: May 5, 2017
|
By:
|
/s/ JAMES C. STEWART
|
|
|
James C. Stewart
|
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
Date: May 5, 2017
|
|
/s/ ANDY H. CHIEN
|
|
|
Andy H. Chien
|
|
|
Chief Financial Officer and Treasurer (Principal Financial Officer)
|
ARTICLE 1
|
DEFINED TERMS 1
|
Section 1.1
|
Definitions 1
|
ARTICLE 2
|
ORGANIZATIONAL MATTERS 14
|
Section 2.1
|
Organization 14
|
Section 2.2
|
Name 14
|
Section 2.3
|
Resident Agent; Principal Office 14
|
Section 2.4
|
Power of Attorney 14
|
Section 2.5
|
Term 16
|
Section 2.6
|
Number of Partners 16
|
Section 2.7
|
Partnership Interests are Securities 16
|
ARTICLE 3
|
PURPOSE 16
|
Section 3.1
|
Purpose and Business 16
|
Section 3.2
|
Powers 17
|
Section 3.3
|
Partnership Only for Purposes Specified 17
|
Section 3.4
|
Representations and Warranties by the Parties 17
|
ARTICLE 4
|
CAPITAL CONTRIBUTIONS 19
|
Section 4.1
|
Capital Contributions of the Partners 19
|
Section 4.2
|
Loans by Third Parties 20
|
Section 4.3
|
Additional Funding and Capital Contributions 20
|
Section 4.4
|
Stock Plans and Equity Plans 22
|
Section 4.5
|
Other Contribution Provisions 25
|
Section 4.6
|
Capital Accounts 25
|
Section 4.7
|
No Preemptive Rights 26
|
ARTICLE 5
|
DISTRIBUTIONS 26
|
Section 5.1
|
Requirement and Characterization of Distributions 26
|
Section 5.2
|
Distributions in Kind 26
|
Section 5.3
|
Distributions upon Liquidation 27
|
ARTICLE 6
|
ALLOCATIONS 27
|
Section 6.1
|
Timing and Amount of Allocations of Net Income and Net Loss 27
|
Section 6.2
|
General Allocations 27
|
Section 6.3
|
Regulatory Allocations 27
|
Section 6.4
|
Tax Allocations 29
|
ARTICLE 7
|
MANAGEMENT AND OPERATIONS OF BUSINESS 30
|
Section 7.1
|
Management 30
|
Section 7.2
|
Certificate of Limited Partnership 33
|
Section 7.3
|
Restrictions on General Partner’s Authority 33
|
Section 7.4
|
Reimbursement of the General Partner and MGP 35
|
Section 7.5
|
Outside Activities of the General Partner 36
|
Section 7.6
|
Contracts with Affiliates 36
|
Section 7.7
|
Indemnification 37
|
Section 7.8
|
Liability of Indemnitees 39
|
Section 7.9
|
Modification of Duties 40
|
Section 7.10
|
Other Matters Concerning the General Partner 40
|
Section 7.11
|
Title to Partnership Assets 41
|
Section 7.12
|
Reliance by Third Parties 41
|
ARTICLE 8
|
RIGHTS AND OBLIGATIONS OF LIMITED PARTNERS 42
|
Section 8.1
|
Limitation of Liability 42
|
Section 8.2
|
Management of Business 42
|
Section 8.3
|
Outside Activities of Unrestricted Persons 42
|
Section 8.4
|
Return of Capital 43
|
Section 8.5
|
Rights of Limited Partners Relating to the Partnership 43
|
Section 8.6
|
Redemption Rights 44
|
ARTICLE 9
|
BOOKS, RECORDS, ACCOUNTING AND REPORTS 49
|
Section 9.1
|
Records and Accounting 49
|
Section 9.2
|
Fiscal Year 49
|
Section 9.3
|
Reports 49
|
ARTICLE 10
|
TAX MATTERS 49
|
Section 10.1
|
Preparation of Tax Returns 49
|
Section 10.2
|
Tax Matters Representative 50
|
Section 10.3
|
Withholding 50
|
Section 10.4
|
State and Local Tax Sharing 51
|
ARTICLE 11
|
TRANSFERS AND WITHDRAWALS 52
|
Section 11.1
|
Transfer 52
|
Section 11.2
|
Substituted Limited Partners 52
|
Section 11.3
|
Assignees 53
|
Section 11.4
|
General Provisions 53
|
Section 11.5
|
REIT Termination Transaction 54
|
ARTICLE 12
|
ADMISSION OF PARTNERS 55
|
Section 12.1
|
Admission of Successor General Partner 55
|
Section 12.2
|
Admission of Additional Limited Partners 55
|
Section 12.3
|
Amendment of Agreement and Certificate of Limited Partnership 56
|
ARTICLE 13
|
DISSOLUTION AND LIQUIDATION 56
|
Section 13.1
|
Dissolution 56
|
Section 13.2
|
Winding Up 57
|
Section 13.3
|
Rights of Limited Partners 58
|
Section 13.4
|
Notice of Dissolution 58
|
Section 13.5
|
Cancellation of Certificate of Limited Partnership 58
|
Section 13.6
|
Reasonable Time for Winding Up 58
|
Section 13.7
|
Waiver of Partition 58
|
Section 13.8
|
Liability of Liquidator 58
|
ARTICLE 14
|
AMENDMENT OF PARTNERSHIP AGREEMENT; CONSENTS 59
|
Section 14.1
|
Amendments 59
|
Section 14.2
|
Action by the Partners 59
|
ARTICLE 15
|
GENERAL PROVISIONS 60
|
Section 15.1
|
Addresses and Notice 60
|
Section 15.2
|
Titles and Captions 60
|
Section 15.3
|
Pronouns and Plurals 60
|
Section 15.4
|
Further Action 60
|
Section 15.5
|
Binding Effect 60
|
Section 15.6
|
Creditors 60
|
Section 15.7
|
Waiver 61
|
Section 15.8
|
Counterparts 61
|
Section 15.9
|
Applicable Law; Waiver of Jury Trial 61
|
Section 15.10
|
Invalidity of Provisions 61
|
Section 15.11
|
Entire Agreement 61
|
Section 15.12
|
No Rights as Shareholders 62
|
Section 15.13
|
Sole Discretion 62
|
Section 1.1
|
Definitions
.
|
(a)
|
a Capital Contribution (other than a
de minimis
Capital Contribution, within the meaning of Regulations Section 1.704-1(b)(2)(iv)(f)(5)(i)) to the Partnership by a new or existing Partner as consideration for Partnership Units, if the General Partner reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership;
|
(b)
|
the distribution by the Partnership to a Partner of more than a
de minimis
amount (within the meaning of Regulations Section 1.704-1(b)(2)(iv)(f)(5)(i)) of Partnership property as consideration for the redemption of Partnership Units, if the General Partner reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership;
|
(c)
|
the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); and
|
(d)
|
at such other times as the General Partner shall reasonably determine necessary or advisable in order to comply with Regulations Sections 1.704-1(b) and 1.704-2.
|
Section 2.1
|
Organization
|
Section 2.2
|
Name
|
Section 2.3
|
Resident Agent; Principal Office
|
Section 2.4
|
Power of Attorney
|
Section 2.5
|
Term
|
Section 2.6
|
Number of Partners
|
Section 2.7
|
Partnership Interests are Securities
|
Section 3.1
|
Purpose and Business
|
Section 3.2
|
Powers
|
Section 3.3
|
Partnership Only for Purposes Specified
|
Section 3.4
|
Representations and Warranties by the Parties
|
Section 4.1
|
Capital Contributions of the Partners
|
Section 4.2
|
Loans by Third Parties
|
Section 4.3
|
Additional Funding and Capital Contributions
|
Section 4.4
|
Stock Plans and Equity Plans
|
Section 4.5
|
Other Contribution Provisions
|
Section 4.6
|
Capital Accounts
|
Section 4.7
|
No Preemptive Rights
|
Section 5.1
|
Requirement and Characterization of Distributions
|
Section 5.2
|
Distributions in Kind
|
Section 5.3
|
Distributions upon Liquidation
|
Section 6.1
|
Timing and Amount of Allocations of Net Income and Net Loss
|
Section 6.2
|
General Allocations
|
Section 6.3
|
Regulatory Allocations
|
Section 6.4
|
Tax Allocations
|
Section 7.1
|
Management
|
Section 7.2
|
Certificate of Limited Partnership
|
Section 7.3
|
Restrictions on General Partner’s Authority
|
Section 7.4
|
Reimbursement of the General Partner and MGP
|
Section 7.5
|
Outside Activities of the General Partner
|
Section 7.6
|
Contracts with Affiliates
|
Section 7.7
|
Indemnification
|
Section 7.8
|
Liability of Indemnitees
|
Section 7.9
|
Modification of Duties
|
Section 7.10
|
Other Matters Concerning the General Partner
|
Section 7.11
|
Title to Partnership Assets
|
Section 7.12
|
Reliance by Third Parties
|
Section 8.1
|
Limitation of Liability
|
Section 8.2
|
Management of Business
|
Section 8.3
|
Outside Activities of Unrestricted Persons
|
Section 8.4
|
Return of Capital
|
Section 8.5
|
Rights of Limited Partners Relating to the Partnership
|
Section 8.6
|
Redemption Rights
|
Section 10.1
|
Preparation of Tax Returns
|
Section 10.2
|
Tax Matters Representative
|
Section 10.3
|
Withholding
|
Section 10.4
|
State and Local Tax Sharing
|
Section 11.1
|
Transfer
|
Section 11.2
|
Substituted Limited Partners
|
Section 11.3
|
Assignees
|
Section 11.4
|
General Provisions
|
Section 11.5
|
REIT Termination Transaction
|
Section 12.1
|
Admission of Successor General Partner
|
Section 12.2
|
Admission of Additional Limited Partners
|
Section 12.3
|
Amendment of Agreement and Certificate of Limited Partnership
|
Section 13.1
|
Dissolution
|
Section 13.2
|
Winding Up
|
Section 13.3
|
Rights of Limited Partners
|
Section 13.4
|
Notice of Dissolution
|
Section 13.5
|
Cancellation of Certificate of Limited Partnership
|
Section 13.6
|
Reasonable Time for Winding Up
|
Section 13.7
|
Waiver of Partition
|
Section 13.8
|
Liability of Liquidator
|
Section 14.1
|
Amendments
|
Section 14.2
|
Action by the Partners
|
Section 15.1
|
Addresses and Notice
|
Section 15.2
|
Titles and Captions
|
Name and Address of Partner
|
|
Capital Contributions
|
Partnership Units
|
Percentage Interest
|
|||
|
|
|
|
|
|||
General Partner
MGM Growth Properties OP GP LLC
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
--
|
|
--
|
100% General Partner Interest
|
|
||
|
|
|
|
||||
COMMON UNITS
|
|
|
|
||||
Limited Partners
|
|
|
|
||||
MGM Growth Properties LLC
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
1,207,500,000
|
|
57,500,000.00
|
23.67
|
%
|
|
MGM Grand Detroit, LLC
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
525,178,323
|
|
25,008,491.57
|
10.30
|
%
|
|
Mandalay Corp.
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
1,105,265,246
|
|
52,631,678.36
|
21.67
|
%
|
|
Ramparts, Inc.
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
361,695,633
|
|
17,223,601.57
|
7.09
|
%
|
|
New Castle Corp.
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
370,136,438
|
|
17,625,544.65
|
7.26
|
%
|
|
MGM Resorts Mississippi, Inc.
875 Beach Boulevard
Biloxi, MS 39530
|
$
|
169,754,635
|
|
8,083,554.03
|
3.33
|
%
|
|
Victoria Partners
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
275,246,451
|
|
13,106,973.89
|
5.40
|
%
|
|
Park District Holdings, LLC
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
20,434,470
|
|
973,070.00
|
0.40
|
%
|
|
The Mirage Casino-Hotel, LLC
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
113,761,344
|
|
5,417,206.85
|
2.23
|
%
|
|
New York-New York Hotel & Casino, LLC
3950 Las Vegas Boulevard South
Las Vegas, NV 89119
|
$
|
76,667,104
|
|
3,650,814.50
|
1.50
|
%
|
|
Beau Rivage Resorts, LLC
875 Beach Boulevard
Biloxi, MS 39530
|
$
|
299,860,356
|
|
14,279,064.58
|
5.88
|
%
|
|
Marina District Development Company, LLC
One Borgata Way
Atlantic City, NJ 08401
|
$
|
630,150,000
|
|
27,362,136.34
|
11.27
|
%
|
No. ___________
|
_______________ COMMON UNITS
|
By: _____________________
|
By: _____________________
|
1.
|
I have reviewed this quarterly report on Form 10-Q of MGM Growth Properties LLC;
|
|
|
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
|
|
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
b)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
c)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
|
|
|
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
|
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ JAMES C. STEWART
|
James C. Stewart
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of MGM Growth Properties Operating Partnership LP;
|
|
|
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
|
|
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
b)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
|
|
|
|
|
c)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
|
|
|
|
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
|
|
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ JAMES C. STEWART
|
James C. Stewart
|
Chief Executive Officer
MGM Growth Properties OP GP LLC, the sole general partner of MGM Growth Properties Operating Partnership LP
|
1.
|
I have reviewed this quarterly report on Form 10-Q of MGM Growth Properties LLC;
|
|
|
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
|
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
|
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
|
|
|
|
|
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
|
|
|
b)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
|
|
|
c)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ ANDY H. CHIEN
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Andy H. Chien
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Chief Financial Officer and Treasurer
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1.
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I have reviewed this quarterly report on Form 10-Q of MGM Growth Properties Operating Partnership LP;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:
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a)
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designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
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c)
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disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
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a)
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all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ ANDY H. CHIEN
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Andy H. Chien
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Chief Financial Officer and Treasurer
MGM Growth Properties OP GP LLC, the sole general partner of MGM Growth Properties Operating Partnership LP
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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/s/ JAMES C. STEWART
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James C. Stewart
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Chief Executive Officer
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May 5, 2017
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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/s/ JAMES C. STEWART
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James C. Stewart
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Chief Executive Officer
MGM Growth Properties OP GP LLC, the sole general partner of MGM Growth Properties Operating Partnership LP
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May 5, 2017
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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/s/ ANDY H. CHIEN
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Andy H. Chien
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Chief Financial Officer and Treasurer
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May 5, 2017
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(1)
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The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
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/s/ ANDY H. CHIEN
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Andy H. Chien
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Chief Financial Officer and Treasurer
MGM Growth Properties OP GP LLC, the sole general partner of MGM Growth Properties Operating Partnership LP
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May 5, 2017
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