Home Archives for October 2019

Month: October 2019

MGM Resorts Selling Bellagio Assets to Blackstone for Approximately $4.2 Billion

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MGM Resorts International (NYSE: MGM) said it has agreed to form a joint venture with Blackstone Real Estate Income Trust (BREIT) that will acquire MGM’s Bellagio real estate assets. MGM will receive a 5% stake in the joint venture and cash of approximately $4.2 billion.

MGM Resorts is a tenant of MGM Growth Properties LLC (NYSE: MGP).

The joint venture will lease the Bellagio assets back to a subsidiary of MGM Resorts for an initial annual rent of $245 million.

FTSE Nareit All REITs Index Rose 2.1% in September

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REIT returns outpaced the broader market in September and for the year-to-date, as a moderate growth and low interest rate environment continued to favor the sector.

The total returns of the FTSE Nareit All REITs Index rose 2.1% in September, outpacing the S&P 500, which rose 1.9% during the same period. The total returns of the FTSE Nareit Mortgage REIT Index gained 6.7% last month, while the yield on the 10-year Treasury rose 0.2%.

For the year to Sept. 30, the FTSE Nareit All REITs Index was 27.4% higher, while the S&P 500 was 20.6% higher.

Institutional Investors Paying Increased Attention to Public Real Estate Platforms

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In the latest edition of Nareit’s REIT Report podcast, Gil Menna, co-chair of the REITs and real estate M&A practice at law firm Goodwin, discussed the climate surrounding mergers and acquisitions (M&A) and initial public offering (IPO) activity.

M&A activity has been light in 2019 compared to previous years, in large part due to an “anemic” REIT market performance last year, Menna said.