MGM Resorts CEO Suggests More Real Estate Deals to Come
In the latest casino operator’s earnings conference call MGM Resorts International CEO James Murren confirmed that more real estate transactions could be on the way.
"The Bellagio real-estate transaction represents more to us than a smart financial deal. It provides a likely blueprint for the future," stated Murren. That blueprint could include the iconic MGM Grand property. Murren said a deal for the large casino complex could close in the early part of 2020.
The company just recently reported that it has entered into a definitive agreement to sell Circus Circus Las Vegas for $825 million to an affiliate of Treasure Island owner Phil Ruffin.
Murren added, "MGM Resorts has engaged in an exhaustive process to evaluate its owned real estate and remains committed to executing its asset-light strategy in a measured way that maximizes value for its shareholders. The company expects to utilize the proceeds from this [Circus Circus Las Vegas] transaction to enhance its capital allocation strategy and complement its strategic and operational flexibility."
As for the rest of its third-quarter performance, the company notes that it has seen a robust performance in rooms, and food and beverage. Also, it recently announced its exclusive partnership with Yahoo Sports and BetMGM – integrating the Yahoo Sports app in November with transactions to take place on the BetMGM platform. Yahoo Sports will be an official Digital Media Sports Partner of MGM Resorts.