MGM Growth Properties posted its Q3 financial results for the period ended September 30, 2019, today, showing net income attributable to class A shareholders of $22.5m, or $0.24 per diluted share against a backdrop of $219.8m worth of rental revenue and adjusted EBITDA of $232.6m.
CEO James Stewart, in an update to investors, confirmed that it was the ninth time the firm had increased its shareholder dividend since the IPO in 2016, adding: “We are excited about the growth opportunities available to us in the market right now and continue to evaluate numerous prospects in the gaming and leisure spaces using a disciplined approach focused on sustainable, long-term value creation.”
According to the Q3 posting, the company had $153.5m of cash and cash equivalents as of September 30, 2019. Cash received from rent payments under the master lease for the three months ended September 30, 2019 was $236.5m.
During the quarter, the operating partnership entered into an interest rate swap agreement with a notional amount of $300m and also modified and extended certain of its existing interest rate swaps with a combined notional amount of $400m. As of September 30, 2019, the operating partnership pays a weighted average fixed rate of 1.707% on $1.5bn total notional amount of effective interest rate swap agreements.
“Our net leverage provides for ample flexibility and significant liquidity to fund future transactions accretively,” said Andy Chien, CFO of MGM Growth Properties. “We have utilized interest rate swaps to fix interest expense and now 93% of our debt is fixed rate. This is another example of executing on our long-term business strategy of delivering long-term growth for our shareholders by creating a stable and predictable stream of cash flows and opportunistically tapping the capital markets to hedge interest rate risk.”