☒ | 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) | 47-5513237 | ||||||
Delaware | (MGM Growth Properties Operating Partnership LP) | 81-1162318 | ||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Shares, no par value | MGP | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Large accelerated filer | ☐ | Accelerated filer | ☐ | Non-accelerated filer | ☒ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
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. | ||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
Real estate investments, net | $ | 8,369,090 | $ | 10,827,972 | |||||||
Lease incentive asset | 512,166 | 527,181 | |||||||||
Investment in unconsolidated affiliate | 807,936 | — | |||||||||
Cash and cash equivalents | 655,169 | 202,101 | |||||||||
Prepaid expenses and other assets | 26,537 | 31,485 | |||||||||
Above market lease, asset | 40,260 | 41,440 | |||||||||
Operating lease right-of-use assets | 280,430 | 280,093 | |||||||||
Total assets | $ | 10,691,588 | $ | 11,910,272 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY | |||||||||||
Liabilities | |||||||||||
Debt, net | $ | 3,516,477 | $ | 4,307,354 | |||||||
Due to MGM Resorts International and affiliates | 275 | 774 | |||||||||
Accounts payable, accrued expenses and other liabilities | 139,606 | 37,421 | |||||||||
Accrued interest | 50,753 | 42,904 | |||||||||
Dividend and distribution payable | 147,941 | 147,349 | |||||||||
Deferred revenue | 143,505 | 108,593 | |||||||||
Deferred income taxes, net | 29,909 | 29,909 | |||||||||
Operating lease liabilities | 340,106 | 337,956 | |||||||||
Total liabilities | 4,368,572 | 5,012,260 | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Redeemable noncontrolling interest | 700,000 | — | |||||||||
Shareholders' equity | |||||||||||
Class A shares*: no par value, 1,000,000,000 shares authorized, 131,455,410 and 113,806,820 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
|
— | — | |||||||||
Additional paid-in capital | 2,970,905 | 2,766,325 | |||||||||
Accumulated deficit | (400,294) | (244,381) | |||||||||
Accumulated other comprehensive loss | (52,583) | (7,045) | |||||||||
Total Class A shareholders' equity | 2,518,028 | 2,514,899 | |||||||||
Noncontrolling interest | 3,104,988 | 4,383,113 | |||||||||
Total shareholders' equity | 5,623,016 | 6,898,012 | |||||||||
Total liabilities, redeemable noncontrolling interest, and shareholders' equity | $ | 10,691,588 | $ | 11,910,272 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue | $ | 188,303 | $ | 219,847 | $ | 580,138 | $ | 636,575 | |||||||||||||||
Ground lease and other | 6,039 | 6,164 | 18,116 | 18,618 | |||||||||||||||||||
Total Revenues | 194,342 | 226,011 | 598,254 | 655,193 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Depreciation | 58,240 | 71,957 | 178,692 | 223,062 | |||||||||||||||||||
Property transactions, net | — | 9,921 | 194,990 | 11,344 | |||||||||||||||||||
Ground lease expense | 5,920 | 5,920 | 17,760 | 17,760 | |||||||||||||||||||
Acquisition-related expenses | — | 92 | 980 | 8,891 | |||||||||||||||||||
General and administrative | 3,476 | 4,476 | 12,089 | 12,305 | |||||||||||||||||||
Total Expenses | 67,636 | 92,366 | 404,511 | 273,362 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Income from unconsolidated affiliate | 25,210 | — | 64,026 | — | |||||||||||||||||||
Interest income | 533 | 241 | 3,903 | 2,189 | |||||||||||||||||||
Interest expense | (59,974) | (63,048) | (164,549) | (190,973) | |||||||||||||||||||
Gain (loss) on unhedged interest rate swaps, net | 7,701 | — | (2,831) | — | |||||||||||||||||||
Other | (36) | (306) | (18,817) | (806) | |||||||||||||||||||
(26,566) | (63,113) | (118,268) | (189,590) | ||||||||||||||||||||
Income from continuing operations before income taxes | 100,140 | 70,532 | 75,475 | 192,241 | |||||||||||||||||||
Provision for income taxes | (2,732) | (1,979) | (6,364) | (5,771) | |||||||||||||||||||
Income from continuing operations, net of tax | 97,408 | 68,553 | 69,111 | 186,470 | |||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 16,216 | |||||||||||||||||||
Net income | 97,408 | 68,553 | 69,111 | 202,686 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | (54,030) | (46,038) | (34,465) | (138,358) | |||||||||||||||||||
Net income attributable to Class A shareholders | $ | 43,378 | $ | 22,515 | $ | 34,646 | $ | 64,328 | |||||||||||||||
Weighted average Class A shares outstanding: | |||||||||||||||||||||||
Basic | 131,567,362 | 93,165,443 | 128,788,161 | 89,440,552 | |||||||||||||||||||
Diluted | 131,699,969 | 93,322,940 | 128,935,079 | 89,645,109 | |||||||||||||||||||
Per Class A share data | |||||||||||||||||||||||
Income from continuing operations per Class A share (basic) | $ | 0.34 | $ | 0.24 | $ | 0.27 | $ | 0.67 | |||||||||||||||
Income from discontinued operations per Class A share (basic) | — | — | — | 0.05 | |||||||||||||||||||
Earnings per Class A share (basic) | $ | 0.34 | $ | 0.24 | $ | 0.27 | $ | 0.72 | |||||||||||||||
Income from continuing operations per Class A share (diluted) | $ | 0.34 | $ | 0.24 | $ | 0.27 | $ | 0.67 | |||||||||||||||
Income from discontinued operations per Class A share (diluted) | — | — | — | 0.05 | |||||||||||||||||||
Earnings per Class A share (diluted) | $ | 0.34 | $ | 0.24 | $ | 0.27 | $ | 0.72 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income | $ | 97,408 | $ | 68,553 | $ | 69,111 | $ | 202,686 | |||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Unrealized gain (loss) on cash flow hedges | 729 | (19,270) | (101,982) | (65,657) | |||||||||||||||||||
Other comprehensive income (loss) | 729 | (19,270) | (101,982) | (65,657) | |||||||||||||||||||
Comprehensive income (loss) | 98,137 | 49,283 | (32,871) | 137,029 | |||||||||||||||||||
Less: Comprehensive (income) loss attributable to noncontrolling interests | (54,443) | (33,001) | 27,291 | (93,298) | |||||||||||||||||||
Comprehensive income (loss) attributable to Class A shareholders | $ | 43,694 | $ | 16,282 | $ | (5,580) | $ | 43,731 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 69,111 | $ | 202,686 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Income from discontinued operations, net | — | (16,216) | |||||||||
Depreciation | 178,692 | 223,062 | |||||||||
Property transactions, net | 194,990 | 11,344 | |||||||||
Amortization of deferred financing costs and debt discount | 7,314 | 9,602 | |||||||||
Loss on retirement of debt | 18,129 | — | |||||||||
Non-cash ground lease, net | 778 | 778 | |||||||||
Deemed contributions - tax sharing agreement | 6,364 | 5,599 | |||||||||
Straight-line rental revenues, excluding amortization of lease incentive asset | 38,046 | 29,783 | |||||||||
Amortization of deferred revenue on non-normal tenant improvements | (1,134) | (1,636) | |||||||||
Loss on unhedged interest rate swaps, net | 2,831 | — | |||||||||
Share-based compensation | 1,996 | 1,608 | |||||||||
Deferred income taxes | — | (3,913) | |||||||||
Amortization of lease incentive asset | 15,015 | 11,355 | |||||||||
Income from unconsolidated affiliate | (64,026) | — | |||||||||
Distributions from unconsolidated affiliate | 58,090 | — | |||||||||
Park MGM transaction | — | (605,625) | |||||||||
Distributions received from discontinued operations and other | — | 40,165 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Prepaid expenses and other assets | 1,003 | (659) | |||||||||
Due to MGM Resorts International and affiliates | (499) | 71 | |||||||||
Accounts payable, accrued expenses and other liabilities | 628 | (3,832) | |||||||||
Accrued interest | 7,849 | 11,311 | |||||||||
Net cash provided by (used in) operating activities - continuing operations | 535,177 | (84,517) | |||||||||
Cash flows from investing activities | |||||||||||
Proceeds from sale of Mandalay Bay real estate assets, net | 58,615 | — | |||||||||
Proceeds from Northfield OpCo transaction | — | 3,779 | |||||||||
Net cash provided by investing activities - continuing operations | 58,615 | 3,779 | |||||||||
Cash flows from financing activities | |||||||||||
Net repayments under bank credit facility | (1,603,750) | (566,813) | |||||||||
Proceeds from issuance of bridge loan facility | 1,304,625 | — | |||||||||
Proceeds from issuance of debt | 800,000 | 750,000 | |||||||||
Deferred financing costs | (11,307) | (9,983) | |||||||||
Repayment of assumed debt and bridge facilities | — | (245,950) | |||||||||
Proceeds from issuance of Class A shares, net | 524,616 | 699,362 | |||||||||
Redemption of Operating Partnership units | (700,000) | — | |||||||||
Dividends and distributions paid | (453,778) | (395,005) | |||||||||
Other | (1,130) | (1,342) | |||||||||
Net cash provided by (used in) financing activities - continuing operations | (140,724) | 230,269 | |||||||||
Cash flows from discontinued operations, net | |||||||||||
Cash flows provided by operating activities, net | — | 15,591 | |||||||||
Cash flows used in investing activities, net | — | (12) | |||||||||
Cash flows used in financing activities, net | — | (37,900) | |||||||||
Net cash used in discontinued operations | — | (22,321) | |||||||||
Change in cash and cash equivalents classified as assets held for sale | — | (22,321) | |||||||||
Cash and cash equivalents | |||||||||||
Net increase for the period | 453,068 | 149,531 | |||||||||
Balance, beginning of period | 202,101 | 3,995 | |||||||||
Balance, end of period | $ | 655,169 | $ | 153,526 | |||||||
Supplemental cash flow disclosures | |||||||||||
Interest paid | $ | 143,604 | $ | 169,646 | |||||||
Non-cash investing and financing activities | |||||||||||
Accrual of dividend and distribution payable to Class A shareholders and Operating Partnership unit holders | $ | 147,941 | $ | 138,730 | |||||||
Empire City transaction assets acquired | $ | — | $ | 625,000 | |||||||
Redemption of Operating Partnership units relating to Northfield OpCo transaction | $ | — | $ | 301,373 | |||||||
Investment in MGP BREIT Venture | $ | 802,000 | $ | — | |||||||
MGP BREIT Venture assumption of bridge loan facility | $ | 1,304,625 | $ | — |
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Class A Shareholders' Equity | Noncontrolling Interest | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 131,455 | $ | — | $ | 2,987,682 | $ | (379,587) | $ | (52,899) | $ | 2,555,196 | $ | 3,114,250 | $ | 5,669,446 | |||||||||||||||||||||||||||||||||||
Net income* | — | — | — | 43,378 | — | 43,378 | 45,871 | 89,249 | ||||||||||||||||||||||||||||||||||||||||||
Reclassification and remeasurements of temporary equity* | — | — | (17,055) | — | — | (17,055) | 13,575 | (3,480) | ||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges* | — | — | — | — | 316 | 316 | 308 | 624 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation* | — | — | 277 | — | — | 277 | 308 | 585 | ||||||||||||||||||||||||||||||||||||||||||
Deemed contribution - tax sharing agreement* | — | — | — | — | — | — | 2,335 | 2,335 | ||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared ($0.4875 per Class A share)*
|
— | — | — | (64,085) | — | (64,085) | (71,660) | (135,745) | ||||||||||||||||||||||||||||||||||||||||||
Other* | — | — | 1 | — | — | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 131,455 | $ | — | $ | 2,970,905 | $ | (400,294) | $ | (52,583) | $ | 2,518,028 | $ | 3,104,988 | $ | 5,623,016 |
Class A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Class A Shareholders' Equity | Noncontrolling Interest | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | 113,807 | $ | — | $ | 2,766,325 | $ | (244,381) | $ | (7,045) | $ | 2,514,899 | $ | 4,383,113 | $ | 6,898,012 | |||||||||||||||||||||||||||||||||||
Net income* | — | — | — | 34,646 | — | 34,646 | 27,865 | 62,511 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A shares* | 17,524 | — | 443,363 | — | (646) | 442,717 | 63,481 | 506,198 | ||||||||||||||||||||||||||||||||||||||||||
MGP BREIT Venture Transaction* | — | — | 8,228 | — | 59 | 8,287 | 55,617 | 63,904 | ||||||||||||||||||||||||||||||||||||||||||
Partial redemption of temporary equity* | — | — | (15,260) | — | (4,772) | (20,032) | 12,500 | (7,532) | ||||||||||||||||||||||||||||||||||||||||||
Reclassification and remeasurements of temporary equity* | — | — | (233,913) | — | — | (233,913) | (1,177,617) | (1,411,530) | ||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges* | — | — | — | — | (40,226) | (40,226) | (47,799) | (88,025) | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation* | — | — | 816 | — | — | 816 | 933 | 1,749 | ||||||||||||||||||||||||||||||||||||||||||
Deemed contribution - tax sharing agreement* | — | — | — | — | — | — | 5,317 | 5,317 | ||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared ($1.4500 per share)*
|
— | — | — | (190,559) | — | (190,559) | (216,924) | (407,483) | ||||||||||||||||||||||||||||||||||||||||||
Other* | 124 | — | 1,346 | — | 47 | 1,393 | (1,498) | (105) | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 131,455 | $ | — | $ | 2,970,905 | $ | (400,294) | $ | (52,583) | $ | 2,518,028 | $ | 3,104,988 | $ | 5,623,016 |
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Class A Shareholders' Equity | Noncontrolling Interest | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 92,639 | $ | — | $ | 2,237,385 | $ | (194,469) | $ | (9,696) | $ | 2,033,220 | $ | 4,353,312 | $ | 6,386,532 | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | 22,515 | — | 22,515 | 46,038 | 68,553 | ||||||||||||||||||||||||||||||||||||||||||
Deemed contribution - tax sharing agreement | — | — | — | — | — | — | 1,979 | 1,979 | ||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared $0.4700 per Class A share)
|
— | — | — | (44,870) | — | (44,870) | (93,860) | (138,730) | ||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A shares | 2,829 | — | 70,338 | — | (200) | 70,138 | 15,925 | 86,063 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 166 | — | — | 166 | 353 | 519 | ||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | — | — | — | — | (6,233) | (6,233) | (13,037) | (19,270) | ||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (426) | — | — | (426) | (916) | (1,342) | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 95,468 | $ | — | $ | 2,307,463 | $ | (216,824) | $ | (16,129) | $ | 2,074,510 | $ | 4,309,794 | $ | 6,384,304 |
Class A Shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Par Value | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Class A Shareholders' Equity | Noncontrolling Interest | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 70,911 | $ | — | $ | 1,712,671 | $ | (150,908) | $ | 4,208 | $ | 1,565,971 | $ | 4,279,535 | $ | 5,845,506 | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | 64,328 | — | 64,328 | 138,358 | 202,686 | ||||||||||||||||||||||||||||||||||||||||||
Deemed contribution - tax sharing agreement | — | — | — | — | — | — | 5,599 | 5,599 | ||||||||||||||||||||||||||||||||||||||||||
Dividends and distributions declared ($1.4025 per share)
|
— | — | — | (130,244) | — | (130,244) | (284,436) | (414,680) | ||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A shares | 24,480 | — | 594,279 | — | 469 | 594,748 | 104,614 | 699,362 | ||||||||||||||||||||||||||||||||||||||||||
Northfield OpCo transaction | — | — | (27,441) | — | 2 | (27,439) | (271,518) | (298,957) | ||||||||||||||||||||||||||||||||||||||||||
Empire City transaction | — | — | 23,940 | — | (195) | 23,745 | 355,305 | 379,050 | ||||||||||||||||||||||||||||||||||||||||||
Park MGM transaction | — | — | 2,512 | — | (16) | 2,496 | 29,379 | 31,875 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 494 | — | — | 494 | 1,114 | 1,608 | ||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | — | — | — | — | (20,597) | (20,597) | (45,060) | (65,657) | ||||||||||||||||||||||||||||||||||||||||||
Other | 77 | — | 1,008 | — | — | 1,008 | (3,096) | (2,088) | ||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | 95,468 | $ | — | $ | 2,307,463 | $ | (216,824) | $ | (16,129) | $ | 2,074,510 | $ | 4,309,794 | $ | 6,384,304 |
September 30, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
Real estate investments, net | $ | 8,369,090 | $ | 10,827,972 | |||||||
Lease incentive asset | 512,166 | 527,181 | |||||||||
Investment in unconsolidated affiliate | 807,936 | — | |||||||||
Cash and cash equivalents | 655,169 | 202,101 | |||||||||
Prepaid expenses and other assets | 26,537 | 31,485 | |||||||||
Above market lease, asset | 40,260 | 41,440 | |||||||||
Operating lease right-of-use assets | 280,430 | 280,093 | |||||||||
Total assets | $ | 10,691,588 | $ | 11,910,272 | |||||||
LIABILITIES, REDEEMABLE CAPITAL, AND PARTNERS' CAPITAL | |||||||||||
Liabilities | |||||||||||
Debt, net | $ | 3,516,477 | $ | 4,307,354 | |||||||
Due to MGM Resorts International and affiliates | 275 | 774 | |||||||||
Accounts payable, accrued expenses and other liabilities | 139,606 | 37,421 | |||||||||
Accrued interest | 50,753 | 42,904 | |||||||||
Distribution payable | 147,941 | 147,349 | |||||||||
Deferred revenue | 143,505 | 108,593 | |||||||||
Deferred income taxes, net | 29,909 | 29,909 | |||||||||
Operating lease liabilities | 340,106 | 337,956 | |||||||||
Total liabilities | 4,368,572 | 5,012,260 | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Redeemable capital | 700,000 | — | |||||||||
Partners’ capital | |||||||||||
General partner | — | — | |||||||||
Limited partners*: 303,467,998 and 313,509,363 Operating Partnership units issued and outstanding as of September 30, 2020 and December 31, 2019, respectively.
|
5,623,016 | 6,898,012 | |||||||||
Total partners’ capital | 5,623,016 | 6,898,012 | |||||||||
Total liabilities, redeemable capital, and partners’ capital | $ | 10,691,588 | $ | 11,910,272 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Rental revenue | $ | 188,303 | $ | 219,847 | $ | 580,138 | $ | 636,575 | |||||||||||||||
Ground lease and other | 6,039 | 6,164 | 18,116 | 18,618 | |||||||||||||||||||
Total Revenues | 194,342 | 226,011 | 598,254 | 655,193 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Depreciation | 58,240 | 71,957 | 178,692 | 223,062 | |||||||||||||||||||
Property transactions, net | — | 9,921 | 194,990 | 11,344 | |||||||||||||||||||
Ground lease expense | 5,920 | 5,920 | 17,760 | 17,760 | |||||||||||||||||||
Acquisition-related expenses | — | 92 | 980 | 8,891 | |||||||||||||||||||
General and administrative | 3,476 | 4,476 | 12,089 | 12,305 | |||||||||||||||||||
Total Expenses | 67,636 | 92,366 | 404,511 | 273,362 | |||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||
Income from unconsolidated affiliate | 25,210 | — | 64,026 | — | |||||||||||||||||||
Interest income | 533 | 241 | 3,903 | 2,189 | |||||||||||||||||||
Interest expense | (59,974) | (63,048) | (164,549) | (190,973) | |||||||||||||||||||
Gain (loss) on unhedged interest rate swaps, net | 7,701 | — | (2,831) | — | |||||||||||||||||||
Other | (36) | (306) | (18,817) | (806) | |||||||||||||||||||
(26,566) | (63,113) | (118,268) | (189,590) | ||||||||||||||||||||
Income from continuing operations before income taxes | 100,140 | 70,532 | 75,475 | 192,241 | |||||||||||||||||||
Provision for income taxes | (2,732) | (1,979) | (6,364) | (5,771) | |||||||||||||||||||
Income from continuing operations, net of tax | 97,408 | 68,553 | 69,111 | 186,470 | |||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 16,216 | |||||||||||||||||||
Net income | $ | 97,408 | $ | 68,553 | $ | 69,111 | $ | 202,686 | |||||||||||||||
Weighted average Operating Partnership units outstanding | |||||||||||||||||||||||
Basic | 303,579,950 | 292,867,986 | 315,642,201 | 290,661,305 | |||||||||||||||||||
Diluted | 303,712,557 | 293,025,483 | 315,789,119 | 290,865,862 | |||||||||||||||||||
Per Operating Partnership unit data | |||||||||||||||||||||||
Income from continuing operations per Operating Partnership unit (basic) | $ | 0.32 | $ | 0.23 | $ | 0.22 | $ | 0.64 | |||||||||||||||
Income from discontinued operations per Operating Partnership unit (basic) | — | — | — | 0.06 | |||||||||||||||||||
Earnings per Operating Partnership unit (basic) | $ | 0.32 | $ | 0.23 | $ | 0.22 | $ | 0.70 | |||||||||||||||
Income from continuing operations per Operating Partnership unit (diluted) | $ | 0.32 | $ | 0.23 | $ | 0.22 | $ | 0.64 | |||||||||||||||
Income from discontinued operations per Operating Partnership unit (diluted) | — | — | — | 0.06 | |||||||||||||||||||
Earnings per Operating Partnership unit (diluted) | $ | 0.32 | $ | 0.23 | $ | 0.22 | $ | 0.70 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net income | $ | 97,408 | $ | 68,553 | $ | 69,111 | $ | 202,686 | |||||||||||||||
Unrealized gain (loss) on cash flow hedges | 729 | (19,270) | (101,982) | (65,657) | |||||||||||||||||||
Comprehensive income (loss) | $ | 98,137 | $ | 49,283 | $ | (32,871) | $ | 137,029 |
Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 69,111 | $ | 202,686 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Income from discontinued operations, net | — | (16,216) | |||||||||
Depreciation | 178,692 | 223,062 | |||||||||
Property transactions, net | 194,990 | 11,344 | |||||||||
Amortization of deferred financing costs and debt discount | 7,314 | 9,602 | |||||||||
Loss on retirement of debt | 18,129 | — | |||||||||
Non-cash ground lease, net | 778 | 778 | |||||||||
Deemed contributions - tax sharing agreement | 6,364 | 5,599 | |||||||||
Straight-line rental revenues, excluding amortization of lease incentive asset | 38,046 | 29,783 | |||||||||
Amortization of deferred revenue on non-normal tenant improvements | (1,134) | (1,636) | |||||||||
Loss on unhedged interest rate swaps, net | 2,831 | — | |||||||||
Share-based compensation | 1,996 | 1,608 | |||||||||
Deferred income taxes | — | (3,913) | |||||||||
Amortization of lease incentive asset | 15,015 | 11,355 | |||||||||
Income from unconsolidated affiliate | (64,026) | — | |||||||||
Distributions from unconsolidated affiliate | 58,090 | — | |||||||||
Park MGM transaction | — | (605,625) | |||||||||
Distributions received from discontinued operations and other | — | 40,165 | |||||||||
Change in operating assets and liabilities: | |||||||||||
Prepaid expenses and other assets | 1,003 | (659) | |||||||||
Due to MGM Resorts International and affiliates | (499) | 71 | |||||||||
Accounts payable, accrued expenses and other liabilities | 628 | (3,832) | |||||||||
Accrued interest | 7,849 | 11,311 | |||||||||
Net cash provided by (used in) operating activities - continuing operations | 535,177 | (84,517) | |||||||||
Cash flows from investing activities | |||||||||||
Proceeds from sale of Mandalay Bay real estate assets, net | 58,615 | — | |||||||||
Proceeds from Northfield OpCo transaction | — | 3,779 | |||||||||
Net cash provided by investing activities - continuing operations | 58,615 | 3,779 | |||||||||
Cash flows from financing activities | |||||||||||
Net repayments under bank credit facility | (1,603,750) | (566,813) | |||||||||
Proceeds from issuance of bridge loan facility | 1,304,625 | — | |||||||||
Proceeds from issuance of debt | 800,000 | 750,000 | |||||||||
Deferred financing costs | (11,307) | (9,983) | |||||||||
Repayment of assumed debt and bridge facilities | — | (245,950) | |||||||||
Proceeds from issuance of OP units by MGP | 524,616 | 699,362 | |||||||||
Redemption of OP units | (700,000) | — | |||||||||
Distributions paid | (453,778) | (395,005) | |||||||||
Other | (1,130) | (1,342) | |||||||||
Net cash provided by (used in) financing activities - continuing operations | (140,724) | 230,269 | |||||||||
Cash flows from discontinued operations, net | |||||||||||
Cash flows provided by operating activities, net | — | 15,591 | |||||||||
Cash flows used in investing activities, net | — | (12) | |||||||||
Cash flows used in financing activities, net | — | (37,900) | |||||||||
Net cash used in discontinued operations | — | (22,321) | |||||||||
Change in cash and cash equivalents classified as assets held for sale | — | (22,321) | |||||||||
Cash and cash equivalents | |||||||||||
Net increase for the period | 453,068 | 149,531 | |||||||||
Balance, beginning of period | 202,101 | 3,995 | |||||||||
Balance, end of period | $ | 655,169 | $ | 153,526 | |||||||
Supplemental cash flow disclosures | |||||||||||
Interest paid | $ | 143,604 | $ | 169,646 | |||||||
Non-cash investing and financing activities | |||||||||||
Accrual of distribution payable to Operating Partnership unit holders | $ | 147,941 | $ | 138,730 | |||||||
Empire City transaction assets acquired | $ | — | $ | 625,000 | |||||||
Redemption of Operating Partnership units relating to Northfield OpCo transaction | $ | — | $ | 301,373 | |||||||
Investment in MGP BREIT Venture | $ | 802,000 | $ | — | |||||||
MGP BREIT Venture assumption of bridge loan facility | $ | 1,304,625 | $ | — |
General Partner | Limited Partners | Total Partners' Capital | |||||||||||||||
Balance at June 30, 2020 | $ | — | $ | 5,669,446 | $ | 5,669,446 | |||||||||||
Net income* | — | 89,249 | 89,249 | ||||||||||||||
Reclassification and remeasurements of temporary equity* | — | (3,480) | (3,480) | ||||||||||||||
Cash flow hedges* | — | 624 | 624 | ||||||||||||||
Share-based compensation* | — | 585 | 585 | ||||||||||||||
Deemed contribution - tax sharing agreement* | — | 2,335 | 2,335 | ||||||||||||||
Distributions declared ($0.4875 per unit)
|
— | (135,745) | (135,745) | ||||||||||||||
Other* | — | 2 | 2 | ||||||||||||||
Balance at September 30, 2020 | $ | — | $ | 5,623,016 | $ | 5,623,016 |
General Partner | Limited Partners | Total Partners' Capital | |||||||||||||||
Balance at January 1, 2020 | $ | — | $ | 6,898,012 | $ | 6,898,012 | |||||||||||
Net income* | — | 62,511 | 62,511 | ||||||||||||||
Issuance of Operating Partnership units* | — | 506,198 | 506,198 | ||||||||||||||
MGP BREIT Venture Transaction* | — | 63,904 | 63,904 | ||||||||||||||
Partial redemption of temporary equity* | — | (7,532) | (7,532) | ||||||||||||||
Reclassification and remeasurements of temporary equity* | — | (1,411,530) | (1,411,530) | ||||||||||||||
Cash flow hedges* | — | (88,025) | (88,025) | ||||||||||||||
Share-based compensation* | — | 1,749 | 1,749 | ||||||||||||||
Deemed contribution - tax sharing agreement* | — | 5,317 | 5,317 | ||||||||||||||
Distributions declared ($1.4500 per unit)*
|
— | (407,483) | (407,483) | ||||||||||||||
Other* | — | (105) | (105) | ||||||||||||||
Balance at September 30, 2020 | $ | — | $ | 5,623,016 | $ | 5,623,016 |
General Partner | Limited Partners |
Total
Partners' Capital |
|||||||||||||||
Balance at June 30, 2019 | $ | — | $ | 6,386,532 | $ | 6,386,532 | |||||||||||
Net income | — | 68,553 | 68,553 | ||||||||||||||
Deemed contribution - tax sharing agreement | — | 1,979 | 1,979 | ||||||||||||||
Distributions declared ($0.4700 per unit)
|
— | (138,730) | (138,730) | ||||||||||||||
Issuance of Operating Partnership units | — | 86,063 | 86,063 | ||||||||||||||
Share-based compensation | — | 519 | 519 | ||||||||||||||
Cash flow hedges | — | (19,270) | (19,270) | ||||||||||||||
Other | — | (1,342) | (1,342) | ||||||||||||||
Balance at September 30, 2019 | $ | — | $ | 6,384,304 | $ | 6,384,304 |
General Partner | Limited Partners | Total Partners' Capital | |||||||||||||||
Balance at January 1, 2019 | $ | — | $ | 5,845,506 | $ | 5,845,506 | |||||||||||
Net income | — | 202,686 | 202,686 | ||||||||||||||
Deemed contribution - tax sharing agreement | — | 5,599 | 5,599 | ||||||||||||||
Distributions declared ($1.4025 per unit)
|
— | (414,680) | (414,680) | ||||||||||||||
Issuance of Operating Partnership units | — | 699,362 | 699,362 | ||||||||||||||
Northfield OpCo transaction | — | (298,957) | (298,957) | ||||||||||||||
Empire City transaction | — | 379,050 | 379,050 | ||||||||||||||
Park MGM transaction | — | 31,875 | 31,875 | ||||||||||||||
Share-based compensation | — | 1,608 | 1,608 | ||||||||||||||
Cash flow hedges | — | (65,657) | (65,657) | ||||||||||||||
Other | — | (2,088) | (2,088) | ||||||||||||||
Balance at September 30, 2019 | $ | — | $ | 6,384,304 | $ | 6,384,304 |
(in thousands) | |||||
As of June 30, 2020 | $ | 700,000 | |||
Reclassification and remeasurement adjustments | 3,480 | ||||
Attribution of: | |||||
Net income | 8,159 | ||||
Cash flow hedges | 105 | ||||
Share-based compensation | 54 | ||||
Deemed contribution - tax sharing agreement | 397 | ||||
MGP dividends and Operating Partnership distributions declared | (12,196) | ||||
Other | 1 | ||||
As of September 30, 2020 | $ | 700,000 |
(in thousands) | |||||
As of January 14, 2020 | $ | — | |||
Reclassification and remeasurement adjustments | 1,411,530 | ||||
Attribution of: | |||||
Net income | 6,600 | ||||
Partial redemption of temporary equity | (692,468) | ||||
MGP's issuance of Class A shares and Operating Partnership's issuance of units | 18,418 | ||||
MGP BREIT Venture Transaction | 16,136 | ||||
Cash flow hedges | (13,957) | ||||
Share-based compensation | 247 | ||||
Deemed contribution - tax sharing agreement | 1,047 | ||||
MGP dividends and Operating Partnership distributions declared | (46,887) | ||||
Other | (666) | ||||
As of September 30, 2020 | $ | 700,000 |
September 30, 2020 | December 31, 2019 | ||||||||||
(in thousands) | |||||||||||
Land | $ | 3,431,228 | $ | 4,631,013 | |||||||
Buildings, building improvements, land improvements and integral equipment | 7,426,639 | 9,293,483 | |||||||||
10,857,867 | 13,924,496 | ||||||||||
Less: Accumulated depreciation | (2,488,777) | (3,096,524) | |||||||||
$ | 8,369,090 | $ | 10,827,972 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2020 | 2020 | |||||||
(in thousands) | ||||||||
Net revenues | $ | 98,681 | $ | 247,800 | ||||
Income from continuing operations | 50,320 | 127,799 | ||||||
Net income | 50,320 | 127,799 |
Year ending December 31, | (in thousands) | ||||
2020 (excluding the nine months ended September 30, 2020 | $ | 206,941 | |||
2021 | 839,012 | ||||
2022 | 784,336 | ||||
2023 | 764,861 | ||||
2024 | 733,161 | ||||
Thereafter | 893,014 | ||||
Total | $ | 4,221,325 |
September 30, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
(in thousands) | |||||||||||
Senior secured credit facility: | |||||||||||
Senior secured term loan A facility | $ | — | $ | 399,125 | |||||||
Senior secured term loan B facility | — | 1,304,625 | |||||||||
Senior secured revolving credit facility | 100,000 | — | |||||||||
5.625% senior notes, due 2024
|
1,050,000 | 1,050,000 | |||||||||
4.625% senior notes, due 2025
|
800,000 | — | |||||||||
4.50% senior notes, due 2026
|
500,000 | 500,000 | |||||||||
5.75% senior notes, due 2027
|
750,000 | 750,000 | |||||||||
4.50% senior notes, due 2028
|
350,000 | 350,000 | |||||||||
3,550,000 | 4,353,750 | ||||||||||
Less: Unamortized discount and debt issuance costs | (33,523) | (46,396) | |||||||||
$ | 3,516,477 | $ | 4,307,354 |
Notional Amount | Weighted Average Fixed Rate | Fair Value Asset (Liability) | Effective Date | Maturity Date | |||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||||||||
$ | 300,000 | 1.158 | % | $ | (11,911) | September 6, 2019 | December 31, 2024 | ||||||||||||||||||||||
400,000 | 2.252 | % | (56,080) | October 1, 2019 | December 31, 2029 | ||||||||||||||||||||||||
900,000 | 1.801 | % | (42,641) | November 30, 2021 | December 31, 2024 | ||||||||||||||||||||||||
$ | 1,600,000 | $ | (110,632) | ||||||||||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
$ | 1,200,000 | 1.844 | % | $ | (23,935) | May 3, 2017 | November 30, 2021 | ||||||||||||||||||||||
$ | 1,200,000 | $ | (23,935) | ||||||||||||||||||||||||||
$ | (134,567) |
Notional Amount | Weighted Average Fixed Rate | Fair Value Asset (Liability) | Effective Date | Maturity Date | |||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||||||||
$ | 600,000 | 1.902 | % | $ | (4,106) | May 3, 2017 | November 30, 2021 | ||||||||||||||||||||||
300,000 | 1.158 | % | 6,529 | September 6, 2019 | December 31, 2024 | ||||||||||||||||||||||||
400,000 | 2.252 | % | (18,743) | October 1, 2019 | December 31, 2029 | ||||||||||||||||||||||||
900,000 | 1.801 | % | (4,915) | November 30, 2021 | December 31, 2024 | ||||||||||||||||||||||||
$ | 2,200,000 | $ | (21,235) | ||||||||||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
$ | 600,000 | 1.786 | % | $ | (2,736) | May 3, 2017 | November 30, 2021 | ||||||||||||||||||||||
$ | 600,000 | $ | (2,736) | ||||||||||||||||||||||||||
$ | (23,971) |
Cash Flow Hedges | Other | Total | |||||||||||||||
(in thousands) | |||||||||||||||||
Balance at June 30, 2020 | $ | (45,768) | $ | (7,131) | $ | (52,899) | |||||||||||
Other comprehensive loss before reclassifications | (5,675) | — | (5,675) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense | 6,404 | — | 6,404 | ||||||||||||||
Other comprehensive income | 729 | — | 729 | ||||||||||||||
Less: Other comprehensive income attributable to noncontrolling interest | (413) | — | (413) | ||||||||||||||
Balance at September 30, 2020 | $ | (45,452) | $ | (7,131) | $ | (52,583) | |||||||||||
Balance at December 31, 2019 | $ | (5,226) | $ | (1,819) | $ | (7,045) | |||||||||||
Other comprehensive loss before reclassifications | (115,688) | — | (115,688) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive loss to interest expense | 13,706 | — | 13,706 | ||||||||||||||
Other comprehensive loss | (101,982) | — | (101,982) | ||||||||||||||
Other changes in accumulated other comprehensive loss: | |||||||||||||||||
Class A share issuances | — | (646) | (646) | ||||||||||||||
Issuance of OP Units | — | 59 | 59 | ||||||||||||||
Partial redemption of temporary equity | — | (4,772) | (4,772) | ||||||||||||||
Other | — | 47 | 47 | ||||||||||||||
Changes in accumulated other comprehensive loss: | (101,982) | (5,312) | (107,294) | ||||||||||||||
Less: Other comprehensive loss attributable to noncontrolling interest | 61,756 | — | 61,756 | ||||||||||||||
Balance at September 30, 2020 | $ | (45,452) | $ | (7,131) | $ | (52,583) | |||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands, except share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Income from continuing operations, net of tax | $ | 97,408 | $ | 68,553 | $ | 69,111 | $ | 186,470 | |||||||||||||||
Income from continuing operations attributable to noncontrolling interest | (54,030) | (46,038) | (34,465) | (126,924) | |||||||||||||||||||
Adjustment related to redeemable noncontrolling interests | 1,232 | — | — | — | |||||||||||||||||||
Income from continuing operations attributable to Class A shares - basic and diluted | 44,610 | 22,515 | 34,646 | 59,546 | |||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 16,216 | |||||||||||||||||||
Income from discontinued operations attributable to noncontrolling interest | — | — | — | (11,434) | |||||||||||||||||||
Income from discontinued operations attributable to Class A shares - basic and diluted | — | — | — | 4,782 | |||||||||||||||||||
Net income attributable to Class A shares - basic and diluted | $ | 44,610 | $ | 22,515 | $ | 34,646 | $ | 64,328 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average Class A shares outstanding — basic
|
131,567,362 | 93,165,443 | 128,788,161 | 89,440,552 | |||||||||||||||||||
Effect of dilutive shares for diluted net income per Class A share (1)
|
132,607 | 157,497 | 146,918 | 204,557 | |||||||||||||||||||
Weighted average Class A shares outstanding — diluted
|
131,699,969 | 93,322,940 | 128,935,079 | 89,645,109 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands, except share amounts) | |||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Income from continuing operations, net of tax | $ | 97,408 | $ | 68,553 | $ | 69,111 | $ | 186,470 | |||||||||||||||
Adjustment related to redeemable capital | 1,232 | — | — | — | |||||||||||||||||||
Income from continuing operations, net of tax, attributable to unitholders - basic and diluted | 98,640 | 68,553 | 69,111 | 186,470 | |||||||||||||||||||
Income from discontinued operations, net of tax - basic and diluted | — | — | — | 16,216 | |||||||||||||||||||
Net income attributable to unitholders - basic and diluted | $ | 98,640 | $ | 68,553 | $ | 69,111 | $ | 202,686 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average Operating Partnership units outstanding — basic
|
303,579,950 | 292,867,986 | 315,642,201 | 290,661,305 | |||||||||||||||||||
Effect of dilutive shares for diluted net income per Operating Partnership unit (1)
|
132,607 | 157,497 | 146,918 | 204,557 | |||||||||||||||||||
Weighted average Operating Partnership units outstanding — diluted
|
303,712,557 | 293,025,483 | 315,789,119 | 290,865,862 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Total revenues | $ | 194,342 | $ | 226,011 | $ | 598,254 | $ | 655,193 | |||||||||||||||
Total expenses | 67,636 | 92,366 | 404,511 | 273,362 | |||||||||||||||||||
Income from continuing operations, net of tax | 97,408 | 68,553 | 69,111 | 186,470 | |||||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | 16,216 | |||||||||||||||||||
Net income | 97,408 | 68,553 | 69,111 | 202,686 | |||||||||||||||||||
Net income attributable to Class A shareholders | 43,378 | 22,515 | 34,646 | 64,328 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Net income (1)
|
$ | 97,408 | $ | 68,553 | $ | 69,111 | $ | 202,686 | |||||||||||||||
Depreciation (2)
|
58,240 | 71,957 | 178,692 | 223,062 | |||||||||||||||||||
Share of depreciation of unconsolidated affiliate | 10,464 | — | 26,361 | — | |||||||||||||||||||
Property transactions, net | — | 9,921 | 194,990 | 11,344 | |||||||||||||||||||
Funds From Operations | 166,112 | 150,431 | 469,154 | 437,092 | |||||||||||||||||||
Amortization of financing costs and cash flow hedges | 6,003 | 3,369 | 13,096 | 10,016 | |||||||||||||||||||
Share of amortization of financing costs of unconsolidated affiliate | 65 | — | 162 | — | |||||||||||||||||||
Non-cash compensation expense | 639 | 519 | 1,996 | 1,608 | |||||||||||||||||||
Straight-line rental revenues, excluding lease incentive asset | 13,632 | 11,664 | 38,046 | 29,783 | |||||||||||||||||||
Share of straight-line rental revenues of unconsolidated affiliate | (12,866) | — | (32,084) | — | |||||||||||||||||||
Amortization of lease incentive asset and deferred revenue on non-normal tenant improvements | 4,627 | 4,501 | 13,881 | 9,719 | |||||||||||||||||||
Acquisition-related expenses | — | 92 | 980 | 8,891 | |||||||||||||||||||
Non-cash ground lease rent, net | 260 | 259 | 778 | 778 | |||||||||||||||||||
Other expenses | 36 | 306 | 18,817 | 806 | |||||||||||||||||||
(Gain) loss on unhedged interest rate swaps, net | (7,701) | — | 2,831 | — | |||||||||||||||||||
Provision for income taxes - REIT | 2,732 | 1,979 | 6,364 | 5,771 | |||||||||||||||||||
Other, net - discontinued operations | — | — | — | 3,707 | |||||||||||||||||||
Adjusted Funds From Operations | 173,539 | 173,120 | 534,021 | 508,171 | |||||||||||||||||||
Interest income (1)
|
(533) | (241) | (3,903) | (2,189) | |||||||||||||||||||
Interest expense (1)
|
59,974 | 63,048 | 164,549 | 190,973 | |||||||||||||||||||
Share of interest expense of unconsolidated affiliate | 13,731 | — | 33,672 | — | |||||||||||||||||||
Amortization of financing costs and cash flow hedges | (6,003) | (3,369) | (13,096) | (10,016) | |||||||||||||||||||
Share of amortization of financing costs of unconsolidated affiliate | (65) | — | (162) | — | |||||||||||||||||||
Provision for income taxes - discontinued operations | — | — | — | 2,890 | |||||||||||||||||||
Adjusted EBITDA | $ | 240,643 | $ | 232,558 | $ | 715,081 | $ | 689,829 |
September 30, 2020 | December 31, 2019 | ||||||||||
Balance Sheet | (in thousands) | ||||||||||
Real estate investments, net | $ | 8,369,090 | $ | 10,827,972 | |||||||
Other assets | 1,514,562 | 1,082,300 | |||||||||
Debt, net | 3,516,477 | 4,307,354 | |||||||||
Other liabilities | 852,095 | 704,906 | |||||||||
Redeemable capital | 700,000 | — |
Nine Months Ended | |||||
September 30, 2020 | |||||
Income Statement | (in thousands) | ||||
Total revenues | $ | 598,254 | |||
Income from continuing operations, net of tax | 5,084 | ||||
Net income | 5,084 |
Declaration Date | Record Date | Distribution/ Dividend Per Unit/ Share | Payment Date | |||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||
March 13, 2020 | March 31, 2020 | $ | 0.4750 | April 15, 2020 | ||||||||||||||||||||||||||||
June 15, 2020 | June 30, 2020 | $ | 0.4875 | July 15, 2020 | ||||||||||||||||||||||||||||
September 15, 2020 | September 30, 2020 | $ | 0.4875 | October 15, 2020 | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||
March 15, 2019 | March 29, 2019 | $ | 0.4650 | April 15, 2019 | ||||||||||||||||||||||||||||
June 14, 2019 | June 28, 2019 | $ | 0.4675 | July 15, 2019 | ||||||||||||||||||||||||||||
September 13, 2019 | September 30, 2019 | $ | 0.4700 | October 15, 2019 |
Third Amendment to Loan Agreement, dated as of July 15, 2020, among Mandalay PropCo, LLC and MGM Grand PropCo, LLC, collectively as Borrower, and Wilmington Trust, National Association, solely in its capacity as trustee for the benefit of the holders of BX Commercial Mortgage Trust 2020-VIVA, Commercial Mortgage Pass-Through Certificates, Series 2020-VIVA, as Lender
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101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH |
Inline XBRL Taxonomy Extension Schema Document
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Inline XBRL Taxonomy Extension Calculation Linkbase Document
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Inline XBRL Taxonomy Extension Definition Linkbase Document
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Inline XBRL Taxonomy Extension Label Linkbase Document
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Inline XBRL Taxonomy Extension Presentation Linkbase Document
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104 |
The cover page from the Registrants’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 has been formatted in Inline XBRL.
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* |
Exhibits 32.1, 32.2, 32.3 and 32.4 shall not be deemed filed with the SEC, nor shall they be deemed incorporated by reference in any filing with the SEC under the Exchange Act or the Securities Act of 1933, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.
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MGM Growth Properties LLC | ||||||||
Date: November 2, 2020 | By: | /s/ JAMES C. STEWART | ||||||
James C. Stewart | ||||||||
Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: November 2, 2020 | /s/ ANDY H. CHIEN | |||||||
Andy H. Chien | ||||||||
Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) |
MGM Growth Properties Operating Partnership LP | ||||||||
By: MGM Growth Properties OP GP LLC, its general partner | ||||||||
Date: November 2, 2020 | By: | /s/ JAMES C. STEWART | ||||||
James C. Stewart | ||||||||
Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: November 2, 2020 | /s/ ANDY H. CHIEN | |||||||
Andy H. Chien | ||||||||
Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer) |
Name of Subsidiary | Issuer/Guarantor Status | |||||||
MGP Finance Co-Issuer, Inc. | (1) | |||||||
MGP Lessor Holdings, LLC | (2) | |||||||
MGP Lessor, LLC | (2) | |||||||
MGP Lessor II, LLC | (2) | |||||||
MGP Yonkers Realty Sub, LLC (3) | (2) | |||||||
YRL Associates, L.P. (3) | (2) |
(1) | Co-Issuer of the Notes. | ||||
(2) | Guarantor of the Notes. | ||||
(3) | With respect to the 4.625% notes due 2025, the guarantees by MGP Yonkers Realty Sub, LLC and YRL Associates, L.P. are subject to receipt of all necessary gaming regulatory approvals |
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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | 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 | |||||||
d) | 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | 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; | |||||||
d) | 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | 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 | |||||||
d) | 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/ ANDY H. CHIEN | ||
Andy H. Chien | ||
Chief Financial Officer and Treasurer |
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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
c) | 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; | |||||||
d) | 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/ ANDY H. CHIEN | ||
Andy H. Chien | ||
Chief Financial Officer and Treasurer
MGM Growth Properties OP GP LLC, the sole general partner of MGM Growth Properties Operating Partnership LP
|
/s/ JAMES C. STEWART | ||
James C. Stewart | ||
Chief Executive Officer | ||
November 2, 2020 |
/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 |
||
November 2, 2020 |
/s/ ANDY H. CHIEN | ||
Andy H. Chien | ||
Chief Financial Officer and Treasurer | ||
November 2, 2020 |
/s/ ANDY H. CHIEN |
||
Andy H. Chien | ||
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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November 2, 2020 |