Opinions
Joshua Varghese
MGM Growth Properties LLC.
MGP-N
TOP PICK
Dec 02, 2019
$30.300
Stock price when the opinion was issued
REAL ESTATE
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TOP PICK
The spin off MGM Resorts -- the casino operator. The properties are leased back to the casino operator. The lease is low cost to the REIT. A strong business set up for the macro risks out there. A relatively new REIT structure that could catch on with investors. Yield 6.27% (Analysts’ price target is $35.73)
REAL ESTATE
Was a spin-out of MGM (the casino). They structure a master lease to this parent. These rents are bullet-proof. Cash flows within MGM are strong (from gambling), even if there will be a recession. You're buying good long-term cash flow, supported by an investment-grade tenant. Also, they can buy more quality assets, some within gambling, some outside, which leads to more accretion. Offers stability yet growth. Pays a 6.1% yield. (Analysts’ price target is $36.15)