MGM Growth Properties (MGP) experienced a decline in earnings during the third quarter, prior to being acquired by VICI Properties for a sum of $17.2 billion. Their income remained consistent at $194.3 million.
MGP possesses a substantial portfolio of hotels managed by MGM Resorts, encompassing renowned establishments such as the MGM Grand, Mandalay Bay, and The Mirage. Similar to the preceding year, their revenue comprised $188.3 million in rental income and $6 million in ground rent.
However, their expenditures escalated, registering an increase of 9.5% to $74 million. The most significant expense was depreciation, which nonetheless decreased by 1.0% to $57.6 million. The surge in costs was primarily attributed to $6.3 million in fresh expenses incurred from acquisitions, along with $5.9 million in ground rent payments and $3.9 million in management fees.
Consequently, MGP’s operating income amounted to $120.3 million, reflecting a reduction of 5.1%.