LAS VEGAS (AP) - MGM Resorts International plans to create a real estate investment trust in order to help boost value for its shareholders and give it more flexibility.
LAS VEGAS (AP) — MGM Resorts International plans to create a real estate investment trust in order to help boost value for its shareholders and give it more flexibility.
The casino operator's shares jumped more than 10 percent in Thursday premarket trading.
MGM Resorts said that the REIT, which will be called MGM Growth Properties LLC, will include real estate associated with 10 of its premier properties. These include seven Las Vegas resorts and three regional casino resorts. The Bellagio and MGM Grand Las Vegas are not included.
The REIT will assume about $4 billion in debt.
MGM Resorts will keep a "substantial economic interest" in the real estate investment trust. It will lease the properties from the REIT under a long-term master lease and continue to manage and run the properties.
The transaction is expected to be completed in 2016's first quarter.