MGM Growth Properties reports Q3 net income of $97m

• Rental revenue of $188.3 million;
• Consolidated net income of $97.4 million, or $0.32 per diluted Operating Partnership unit;
• Funds From Operations(1) ("FFO") of $166.1 million, or $0.55 per diluted Operating Partnership unit;
• Adjusted Funds From Operations(2) ("AFFO") of $173.5 million, or $0.57 per diluted Operating Partnership unit;
• Adjusted EBITDA(3) of $240.6 million;
• General and administrative expenses of $3.5 million; and
• Income from unconsolidated affiliate of $25.2 million.

"We are pleased with our industry leading performance during the quarter and are further encouraged now that all the properties in our portfolio have been re-opened to the public," said James Stewart, CEO of MGM Growth Properties. "We continued to collect 100% of our rent through October, demonstrating the strength of our master lease and liquidity position of our tenant despite the ongoing economic challenges caused by COVID-19. We continue to seek opportunities to grow our portfolio and execute on our business strategy to prudently deliver shareholder value."

The Company had $655.2 million of cash and cash equivalents as of September 30, 2020. Cash received from rent payments for the three months ended September 30, 2020 was $206.9 million. Cash received from distributions from our unconsolidated affiliate, MGP BREIT Venture, for the three months ended September 30, 2020 was $22.9 million.

On October 15, 2020, the Operating Partnership made a cash distribution of $147.9 million relating to the third quarter dividend, $83.9 million of which was paid to subsidiaries of MGM Resorts and $64.1 million of which was paid to MGP. Simultaneously, MGP paid a cash dividend of $0.4875 per share.

"Our balance sheet remains strong and flexible to capitalize on future accretive opportunities, including the opportunity to redeem an additional $700 million of units from MGM," said Andy Chien, CFO of MGM Growth Properties. "We have no debt maturities until 2023 and our pro rata net leverage of 4.6x remains below our long-term target of 5.0-5.5x."