MGM Growth Properties LLC Class A common shares representing limited liability company interests (MGP) Company Bio
MGM Growth Properties will own six large scale entertainment and gaming resorts on the strip in Las Vegas. These include Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxur, and Excalibur, as well as The Park, a dining and entertainment complex located between New York-New York and Monte Carlo. Combined, these properties represent 24% of total hotel rooms on the strip and about 35% of the privately owned convention and meeting space. Outside of Las Vegas, MGP also will own three other casino-resort properties, such as MGM Grand Detroit, and Beau Rivage and Gold Strike Tunica, both of which are located in Mississippi.
MGP Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for MGM Growth Properties LLC with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that MGM Growth Properties LLC ranked in the 89th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1547.67% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for MGP, they are:
Its compound free cash flow growth rate, as measured over the past 3.17 years, is 0.66% -- higher than 87.39% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 86.41% of its sector Real Estate.
46% of the company's capital comes from equity, which is greater than just 24.91% of stocks in our cash flow based forecasting set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CLNC, KRG, PEB, RVI, and WELL can be thought of as valuation peers to MGP, in the sense that they are in the Real Estate sector and have a similar price forecast based on DCF valuation.
MGM Growth Properties Operating Partnership LP (the "Operating Partnership") and MGP Finance Co-Issuer, Inc. (together with the Operating Partnership, the "Issuers"), consolidated subsidiaries of MGM Growth Properties LLC (NYSE: MGP) (the "Company"), have completed the issuance of $800 million in aggregate principal amount of 4.625% senior notes due 2025 (the "notes") at par. The $800 million aggregate principal amount of the notes represented an increase of $300 million from the originally announced offering size of $500 million.
Two MGM Growth Properties (MGP) subsidiaries propose to offer $500M of senior notes due 2025 to raise capital to repay $494M of drawings under MGM Growth Properties Operating Partnership's revolving credit facility.The company drew down from the credit facility primarily to improve its liquidity position in light of the COVID-19...
LAS VEGAS, June 2, 2020 /PRNewswire/ -- MGM Growth Properties Operating Partnership LP (the "Operating Partnership") and MGP Finance Co-Issuer, Inc. (together, the "Issuers"), consolidated subsidiaries of MGM Growth Properties LLC (NYSE: MGP) (the "Company"), today announced that the…