James Stewart, CEO of MGM Growth Properties LLC (NYSE: MGP), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.
MGM Growth Properties went public in April. Since then, the company has focused on “prudently and sustainably” growing adjusted funds from operations and its dividend, Stewart said.
Stewart outlined the company’s multi-pronged strategy for growth. Components include a guaranteed escalator of about 2 percent annually on 100 percent of leases, and the right of first offer on two new developments - MGM National Harbor in Maryland and MGM Springfield in Massachusetts.
Stewart said the supply-and-demand outlook for existing gaming and leisure operators in Las Vegas is “fantastic” for the next few years.
“This year, we are almost certainly going to get record visitation. The sky’s the limit for Las Vegas,” Stewart said.
As for competition, Stewart pointed to the shortage of land in Las Vegas on which to build a competitive, integrated resort. Even if land were available and a project shovel-ready, it would be three years before it could even open, he pointed out.
“We see absolutely no meaningful supply coming online and a lot of spending to drive visitation, so it’s a really great dynamic,” Stewart said.