MGM Resorts global, the Las Vegas casino owner that’s been under pressure from an activist investor, said it will put its properties into a real estate investment trust to help cut debt and boost the stock price.
Advertisement
“We have exhaustively and thoughtfully explored a wide range of opportunities to leverage our valuable real estate assets and are pleased that this transaction will further position MGM Resorts for sustained success”, MGM Resorts Chairman and CEO Jim Murren said in a statement.
The REIT will assume about $4 billion in debt.
The company said the 10 properties include more than 24,000 hotel rooms and that it will continue to manage and operate the properties. These include seven Las Vegas resorts and three regional casino resorts. It makes so much sense.
Shares of MGM Resorts worldwide rose $1.31, or 6.1 percent, to $23.08 in morning trading Thursday.
Overall, MGM Resorts reported a profit of $66.4 million, or 12 cents a share, compared with a year-earlier loss of $ 20.3 million, or four cents a share.
The chief executive of MGM Resorts worldwide has agreed to join other top company officials at a meeting with city officials in Springfield to discuss changes in a casino project. Net revenue company wide declined 8 percent to $2.28 billion.
Advertisement
The six Las Vegas resorts, excluding The Park entertainment district, contributed about 35 percent of wholly owned domestic resorts’ operating income in 2014.
