James Stewart, CEO of MGM Growth Properties LLC (NYSE: MGP), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.
Stewart described the REIT as a leader in the diversification of entertainment activities in Las Vegas. On the Las Vegas Strip, approximately one third of revenue is generated by casino gaming—the rest comes from restaurants, bars and live entertainment, he said.
There’s also been a significant push into live sports in Las Vegas, with the opening two years ago of the T-Mobile Arena, Stewart said.
Earlier this year, MGM entered the Northeast Ohio market with the acquisition of the Hard Rock Rocksino. Geographic diversification is not a goal in and of itself, Stewart explained. The focus for acquisitions is more on finding deals that are accretive to adjusted funds from operations (AFFO) and on assets that have enduring value, he added.
Stewart also noted that the acquisition market for MGM is less competitive than for other real estate segments, as the company really only has three other REIT competitors.