MGM Resorts International is planning to put some of its casino- resort real estate properties into a new another company to push the values for its shareholders and to give opportunity to both companies of having flexibility and growth.
In a report of sltrib.com [Salt Lake Tribune], the company said that they will build a real estate trust called MGM Growth Properties LLC which hold 10 of its properties. MGM Resorts CEO Jim Murren said "We're in it together. We want to see (MGM Growth Partners) grow, and grow rapidly."
The company has also reported its third quarter result and it yielded a stronger results with $66.4 million profit. The company's shares have earned 12 cents per share due to "robust recovery in Las Vegas and a healthy convention calendar." The results are pleasurable since the company had lost $20.3 million, or 4 cents per share. As proof of the company's recovery, its "expanded convention center in Mandalay Bay is already fully booked for 2016."
The report has also detailed the partition of the companies once the real estate spin off has taken effect.
"MGM Resorts says it will still own and operate the Bellagio, MGM Grand and Circus-Circus properties in Las Vegas and its stakes in the Las Vegas Strip CityCenter, MGM China, Borgata in New Jersey and under construction Las Vegas arena.
The new company would own Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor, Excalibur, The Park pedestrian mall that's under construction between New York-New York and Monte Carlo and three regional properties in Michigan and Mississippi."
According to abcnews.go.com, Murren has been looking into different options on how to pull off the company's new step in making it grow. The company has been thinking of "spinning off all its properties as suggested by a small investor." However, Murren had disagreed and said that it "was ill-conceived on almost every front."
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