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MGM Growth Properties

NYSE:MGP
Snowflake Description

Second-rate dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGP
NYSE
$9B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. The last earnings update was 17 days ago. More info.


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MGP Share Price and Events
7 Day Returns
-0.9%
NYSE:MGP
-0.3%
US REITs
0.2%
US Market
1 Year Returns
7.5%
NYSE:MGP
13.3%
US REITs
2.9%
US Market
MGP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
MGM Growth Properties (MGP) -0.9% -2.6% 1.5% 7.5% 37.2% -
US REITs -0.3% 3.5% 3.2% 13.3% 11.3% 24.8%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • MGP underperformed the REITs industry which returned 13.3% over the past year.
  • MGP outperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
MGP
Industry
5yr Volatility vs Market

Value

 Is MGM Growth Properties undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of MGM Growth Properties to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for MGM Growth Properties.

NYSE:MGP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MGP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.529 (1 + (1- 21%) (55.66%))
0.841
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.841 * 5.96%)
7.74%

Discounted Cash Flow Calculation for NYSE:MGP using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for MGM Growth Properties is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

MGM Growth Properties is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

NYSE:MGP DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (USD, Millions) Source Present Value
Discounted (@ 7.74%)
2019 675.24 Analyst x9 626.73
2020 717.46 Analyst x11 618.08
2021 735.26 Analyst x5 587.91
2022 763.04 Est @ 3.78% 566.30
2023 789.48 Est @ 3.46% 543.83
2024 815.09 Est @ 3.24% 521.13
2025 840.27 Est @ 3.09% 498.64
2026 865.33 Est @ 2.98% 476.62
2027 890.48 Est @ 2.91% 455.24
2028 915.89 Est @ 2.85% 434.59
Present value of next 10 years cash flows $5,329.08
NYSE:MGP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $915.89 × (1 + 2.73%) ÷ (7.74% – 2.73%)
$18,781.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $18,781.31 ÷ (1 + 7.74%)10
$8,911.85
NYSE:MGP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,329.08 + $8,911.85
$14,240.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,240.93 / 299.63
$47.36
NYSE:MGP Discount to Share Price
Calculation Result
Value per share (USD) From above. $47.36
Current discount Discount to share price of $31.59
= -1 x ($31.59 - $47.36) / $47.36
33.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price MGM Growth Properties is available for.
Intrinsic value
33%
Share price is $31.59 vs Future cash flow value of $47.36
Current Discount Checks
For MGM Growth Properties to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • MGM Growth Properties's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • MGM Growth Properties's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for MGM Growth Properties's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are MGM Growth Properties's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MGP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.96
NYSE:MGP Share Price ** NYSE (2019-05-23) in USD $31.59
United States of America REITs Industry PE Ratio Median Figure of 155 Publicly-Listed REITs Companies 32.92x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of MGM Growth Properties.

NYSE:MGP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MGP Share Price ÷ EPS (both in USD)

= 31.59 ÷ 0.96

32.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGM Growth Properties is overvalued based on earnings compared to the US REITs industry average.
  • MGM Growth Properties is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does MGM Growth Properties's expected growth come at a high price?
Raw Data
NYSE:MGP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 32.95x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
14.1%per year
United States of America REITs Industry PEG Ratio Median Figure of 141 Publicly-Listed REITs Companies 2.41x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:MGP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 32.95x ÷ 14.1%

2.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGM Growth Properties is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on MGM Growth Properties's assets?
Raw Data
NYSE:MGP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $22.52
NYSE:MGP Share Price * NYSE (2019-05-23) in USD $31.59
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.89x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NYSE:MGP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MGP Share Price ÷ Book Value per Share (both in USD)

= 31.59 ÷ 22.52

1.4x

* Primary Listing of MGM Growth Properties.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • MGM Growth Properties is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess MGM Growth Properties's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. MGM Growth Properties has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is MGM Growth Properties expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is MGM Growth Properties expected to grow at an attractive rate?
  • MGM Growth Properties's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • MGM Growth Properties's earnings growth is expected to exceed the United States of America market average.
  • MGM Growth Properties's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MGP Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MGP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 14.1%
NYSE:MGP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -1.4%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MGP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MGP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 952 734 115 5
2020-12-31 1,000 710 95 11
2019-12-31 974 708 90 8
NYSE:MGP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,058 -5 71
2018-12-31 1,002 580 67
2018-09-30 933 552 57
2018-06-30 834 536 49
2018-03-31 798 509 46
2017-12-31 766 483 42
2017-09-30 735 479 45
2017-06-30 725 466 45
2017-03-31 651 433 41
2016-12-31 468 298 30
2016-09-30 283 169 18
2016-06-30 111 35 7

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • MGM Growth Properties's earnings are expected to grow by 14.1% yearly, however this is not considered high growth (20% yearly).
  • MGM Growth Properties's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MGP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from MGM Growth Properties Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MGP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.24 1.37 1.03 3.00
2020-12-31 1.22 1.32 1.02 5.00
2019-12-31 1.06 1.13 1.00 3.00
NYSE:MGP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.96
2018-12-31 0.94
2018-09-30 0.81
2018-06-30 0.71
2018-03-31 0.71
2017-12-31 0.68
2017-09-30 0.78
2017-06-30 0.78
2017-03-31 0.72
2016-12-31 0.52
2016-09-30 0.31
2016-06-30 0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • MGM Growth Properties is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess MGM Growth Properties's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
MGM Growth Properties has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has MGM Growth Properties performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare MGM Growth Properties's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • MGM Growth Properties has delivered over 20% year on year earnings growth in the past 5 years.
  • MGM Growth Properties's 1-year earnings growth is less than its 5-year average (53.9% vs 79.9%)
  • MGM Growth Properties's earnings growth has exceeded the US REITs industry average in the past year (53.9% vs 16%).
Earnings and Revenue History
MGM Growth Properties's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from MGM Growth Properties Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MGP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,057.87 71.19 16.51
2018-12-31 1,002.44 67.07 16.18
2018-09-30 932.99 57.18 14.05
2018-06-30 833.57 48.72 13.51
2018-03-31 797.64 46.26 13.42
2017-12-31 765.70 41.78 12.19
2017-09-30 735.30 45.45 8.69
2017-06-30 725.00 45.01 8.51
2017-03-31 651.45 41.29 10.19
2016-12-31 467.55 29.94 9.90
2016-09-30 283.40 17.54 11.96
2016-06-30 110.90 6.95 11.79
2016-03-31 0.00 9.97
2015-12-31 0.00
2015-09-30 -64.56 10.70
2015-06-30 -122.80 11.06
2015-03-31 -184.52 11.46
2014-12-31 0.00 11.63
2013-12-31 -253.87 12.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • MGM Growth Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • MGM Growth Properties used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • Unable to establish if MGM Growth Properties improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess MGM Growth Properties's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
MGM Growth Properties has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is MGM Growth Properties's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up MGM Growth Properties's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • MGM Growth Properties's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • MGM Growth Properties's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of MGM Growth Properties's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from MGM Growth Properties Company Filings, last reported 1 month ago.

NYSE:MGP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,716.92 5,286.66 84.65
2018-12-31 5,845.51 4,672.55 80.32
2018-09-30 5,915.20 4,684.72 87.80
2018-06-30 5,974.30 3,923.22 323.61
2018-03-31 6,032.55 3,925.20 307.62
2017-12-31 6,067.74 3,934.63 271.02
2017-09-30 5,840.35 3,943.18 1,139.85
2017-06-30 5,507.34 3,604.61 377.28
2017-03-31 5,562.04 3,608.50 371.07
2016-12-31 5,608.26 3,621.94 362.37
2016-09-30 5,648.50 3,620.68 340.28
2016-06-30 4,970.03 3,134.79 338.03
2016-03-31 6,103.16 0.00
2015-12-31 6,058.96 0.00
2015-09-30 6,015.70 0.00
2015-06-30 6,059.40 0.00
2015-03-31 6,127.35 0.00
2014-12-31 6,127.35 0.00
2013-12-31 6,296.86 0.00
  • MGM Growth Properties's level of debt (78.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 78.7% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess MGM Growth Properties's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. MGM Growth Properties has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is MGM Growth Properties's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.89%
Current annual income from MGM Growth Properties dividends. Estimated to be 6.05% next year.
If you bought $2,000 of MGM Growth Properties shares you are expected to receive $118 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • MGM Growth Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • MGM Growth Properties's dividend is above the markets top 25% of dividend payers in United States of America (3.7%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MGP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 184 Stocks 3.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MGP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.99 5.00
2020-12-31 1.91 10.00
2019-12-31 1.87 9.00
NYSE:MGP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-15 1.860 5.821
2018-12-14 1.790 6.089
2018-09-17 1.750 6.185
2018-06-15 1.720 5.680
2018-03-15 1.680 5.985
2017-12-15 1.680 6.092
2017-09-15 1.580 5.338
2017-06-15 1.580 5.320
2017-03-15 1.550 5.591
2016-12-15 1.550 6.114
2016-09-15 1.550 6.177
2016-08-04 1.430 5.550

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, MGM Growth Properties has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but MGM Growth Properties only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of MGM Growth Properties's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (346x coverage).
X
Income/ dividend checks
We assess MGM Growth Properties's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can MGM Growth Properties afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. MGM Growth Properties has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of MGM Growth Properties's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
James Stewart
COMPENSATION $3,541,157
AGE 52
TENURE AS CEO 3.1 years
CEO Bio

Mr. James C. Stewart is Chief Executive Officer of MGM Growth Properties LLC since April 2016. Mr. Stewart serves as Chief Executive Officer of MGP Finance Co-Issuer, Inc. and MGM Growth Properties Operating Partnership LP since April 2016. He also serves as President and Director of MGP Finance Co-Issuer, Inc. Mr. Stewart was employed by MGM in January 2016. He is the Chief Executive Officer and Manager at MGP Lessor, LLC. Prior to this, Mr. Stewart served as a Managing Director of Greenhill & Co., Inc. from 2009 to 2015, during which time he founded their Los Angeles Office and was responsible for the Gaming, Lodging and Leisure sector. From 2006 to 2009, Mr. Stewart was a Managing Director of UBS Investment Bank and served as Co-Head of the Los Angeles Office and was responsible for the Gaming and Leisure sector. Mr. Stewart worked in Morgan Stanley’s New York and Los Angeles offices from 1992 to 2005, advising on a number of significant gaming industry, real estate and other transactions and rising from Associate to Managing Director. Mr. Stewart started his career as a financial analyst at Salomon Brothers Inc. from 1988 to 1990. Mr. Stewart earned his Master of Business Administration with distinction from the Tuck School of Business at Dartmouth College, where he was named an Amos Tuck Scholar and his Bachelor of Commerce from the University of Calgary.

CEO Compensation
  • James's compensation has been consistent with company performance over the past year, both up more than 20%.
  • James's remuneration is lower than average for companies of similar size in United States of America.
Management Team

James Stewart

TITLE
Chief Executive Officer
COMPENSATION
$4M
AGE
52
TENURE
3.1 yrs

Andy Chien

TITLE
CFO & Treasurer
COMPENSATION
$1M
AGE
42
TENURE
3.1 yrs

Andrew Hagopian

TITLE
Secretary

Knicks Lau

TITLE
Controller
Board of Directors Tenure

Average tenure and age of the MGM Growth Properties board of directors in years:

3.2
Average Tenure
57
Average Age
  • The tenure for the MGM Growth Properties board of directors is about average.
Board of Directors

Jim Murren

TITLE
Chairman of the Board
AGE
56
TENURE
3.2 yrs

Tom Roberts

TITLE
Lead Independent Director
COMPENSATION
$262K
AGE
71

Mike Rietbrock

TITLE
Director
COMPENSATION
$213K
AGE
49
TENURE
3.2 yrs

Bill Hornbuckle

TITLE
Director
AGE
60
TENURE
3.2 yrs

John McManus

TITLE
Director
AGE
51
TENURE
3.2 yrs

Dan Taylor

TITLE
Director
COMPENSATION
$203K
AGE
61
TENURE
3.2 yrs

Bob Smith

TITLE
Director
COMPENSATION
$213K
AGE
57
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess MGM Growth Properties's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. MGM Growth Properties has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is MGM Growth Properties LLC's (NYSE:MGP) CEO Paid At A Competitive Rate?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for MGM Growth Properties How Does James Stewart's Compensation Compare With Similar Sized Companies? … It looks like MGM Growth Properties LLC pays its CEO less than similar sized companies.

Simply Wall St -

Should We Be Cautious About MGM Growth Properties LLC's (NYSE:MGP) ROE Of 4.2%?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of MGM Growth Properties LLC (NYSE:MGP). … Check out our latest analysis for MGM Growth Properties? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's Why I Think MGM Growth Properties (NYSE:MGP) Is An Interesting Stock

So if you're like me, you might be more interested in profitable, growing companies, like MGM Growth Properties (NYSE:MGP). … How Fast Is MGM Growth Properties Growing Its Earnings Per Share. … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats).

Simply Wall St -

Did You Miss MGM Growth Properties's (NYSE:MGP) 19% Share Price Gain?

For example, the MGM Growth Properties LLC (NYSE:MGP) share price is up 19% in the last year, clearly besting than the market return of around 4.3% (not including dividends). … MGM Growth Properties hasn't been listed for long, so it's still not clear if it is a long term winner. … During the last year MGM Growth Properties grew its earnings per share (EPS) by 40%.

Simply Wall St -

MGM Growth Properties LLC (NYSE:MGP): What Does The Future Look Like?

On 31 December 2018, MGM Growth Properties LLC (NYSE:MGP) released its earnings update. … it seems that analyst forecasts are fairly optimistic, … with earnings expected to grow by 39% in the upcoming year,

Simply Wall St -

Does MGM Growth Properties LLC's (NYSE:MGP) February Stock Price Reflect Its Future Growth?

MGM Growth Properties LLC (NYSE:MGP) closed yesterday at $31.32, which left some investors asking whether the high earnings potential can still be justified at this price. … See our latest analysis for MGM Growth Properties? … MGM Growth Properties is poised for significantly high earnings growth in the near future

Simply Wall St -

How To Look At MGM Growth Properties LLC (NYSE:MGP)

real estate investment trust (REIT) based in Las Vegas, United States. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … They have to meet certain requirements in order to become a REIT, meaning they should be analyzed a different way.

Simply Wall St -

Is MGM Growth Properties LLC's (NYSE:MGP) Growth Strong Enough To Justify Its October Share Price?

MGM Growth Properties LLC (NYSE:MGP) closed yesterday at $27.67, which left some investors asking whether the high earnings potential can still be justified at this price. … See our latest analysis for MGM Growth Properties? … MGM Growth Properties's growth potential is very attractive

Simply Wall St -

Why You Shouldn't Look At MGM Growth Properties LLC's (NYSE:MGP) Bottom Line

real estate investment trust (REIT) based in Las Vegas, United States. … REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities … These items can distort the bottom line and not necessarily reflective of MGP’s daily operations.

Simply Wall St -

Is MGM Growth Properties LLC's (NYSE:MGP) CEO Being Overpaid?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Company Info

Description

MGM Growth Properties LLC (NYSE:MGP) is one of the leading publicly traded real estate investment trusts engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts, whose diverse amenities include casino gaming, hotel, convention, dining, entertainment and retail offerings. MGP currently owns a portfolio of properties, consisting of 11 premier destination resorts in Las Vegas and elsewhere across the United States, the MGM Northfield Park in Northfield, OH, Empire Resort Casino in Yonkers, NY, as well as a retail and entertainment district, The Park in Las Vegas. As of December 31, 2018, our destination resorts, the Park, and MGM Northfield Park collectively comprise approximately 27,400 hotel rooms, 2.7 million convention square footage, 150 retail outlets, 300 food and beverage outlets and 20 entertainment venues. As a growth-oriented public real estate entity, MGP expects its relationship with MGM Resorts and other entertainment providers to attractively position MGP for the acquisition of additional properties across the entertainment, hospitality and leisure industries.

Details
Name: MGM Growth Properties LLC
MGP
Exchange: NYSE
Founded: 2015
$9,498,209,914
$2,859,781,826
299,628,073
Website: http://www.mgmgrowthproperties.com
Address: MGM Growth Properties LLC
1980 Festival Plaza Drive,
Suite 750,
Las Vegas,
Nevada, 89135,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MGP Class A Shares New York Stock Exchange US USD 20. Apr 2016
DB 293 Class A Shares Deutsche Boerse AG DE EUR 20. Apr 2016
Number of employees
Current staff
Staff numbers
0
MGM Growth Properties employees.
Industry
Hotel and Resort REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 00:44
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.