MGM Growth Properties LLC filed SEC Form 8-K: Other Events
(MGM Growth Properties LLC) |
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(MGM Growth Properties Operating Partnership LP) |
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(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
MGM Growth Properties LLC | Emerging growth company | |
MGM Growth Properties Operating Partnership LP | Emerging growth company |
MGM Growth Properties LLC | ☐ | |
MGM Growth Properties Operating Partnership LP | ☐ |
Item 8.01 |
Other Events. |
Company |
2022E P/AFFO Multiples |
2022E AV/EBITDA Multiples |
P/(D) to NAV |
|||||||||
Realty Income Corporation |
18.9x | 18.8x | 31 | % | ||||||||
W.P. Carey Inc. |
15.6x | 17.7x | 20 | % | ||||||||
Gaming & Leisure Properties, Inc. |
13.1x | 14.6x | 13 | % | ||||||||
STORE Capital, Inc. |
17.4X | 17.1x | 38 | % | ||||||||
National Retail Properties, Inc. |
16.3x | 17.3x | 13 | % | ||||||||
Spirit Realty Capital, Inc. |
15.3x | 15.8x | 20 | % | ||||||||
EPR Properties |
12.4x | 14.6x | 5 | % | ||||||||
MGP* |
14.2x | 15.8x | 10 | % |
* | MGP is included for reference, but was not used as a selected company for purposes of these calculations. |
Company |
2022E P/AFFO Multiples |
2022E AV/EBITDA Multiples |
P/(D) to NAV |
|||||||||
Realty Income Corporation |
18.9x | 18.8x | 31 | % | ||||||||
W.P. Carey Inc. |
15.6x | 17.7x | 20 | % | ||||||||
Gaming & Leisure Properties, Inc. |
13.1x | 14.6x | 13 | % | ||||||||
STORE Capital, Inc. |
17.4x | 17.1x | 38 | % | ||||||||
National Retail Properties, Inc. |
16.3x | 17.3x | 13 | % | ||||||||
Spirit Realty Capital, Inc. |
15.3x | 15.8x | 20 | % | ||||||||
EPR Properties |
12.4x | 14.6x | 5 | % | ||||||||
VICI* |
15.8x | 17.4x | 23 | % |
* | VICI is included for reference, but was not used as a selected company for purposes of these calculations. |
Transaction Announcement Date |
Acquiror |
Target |
Premium Paid to Unaffected Stock Price |
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May 2021 |
Equity Commonwealth |
Monmouth Real Estate Investment Corporation |
28 | % | ||||
April 2021 |
Realty Income Corporation |
VEREIT, Inc. |
19 | % | ||||
May 2018 |
The Blackstone Group L.P. |
Gramercy Property Trust |
22 | % | ||||
October 2013 |
American Realty Capital Properties, Inc. |
Cole Real Estate Investments |
19 | % | ||||
May 2013 |
American Realty Capital Properties, Inc. |
CapLease, Inc. |
17 | % | ||||
September 2012 |
Realty Income Corp. |
American Realty Capital Trust |
7 | % | ||||
November 2007 |
Gramercy Capital Corp. |
American Financial Realty Trust |
23 | % |
March 2007 |
Redford Holdco (Macquarie Bank/Kaupthing) |
Spirit Finance Corp. |
12 | % | ||||
October 2006 |
GE Capital |
Trustreet Properties |
35 | % | ||||
October 2006 |
Record Realty Trust (Allco Finance Group) |
Government Property Trust |
17 | % | ||||
September 2005 |
DRA Advisors, Inc. |
Capital Automotive REIT |
8 | % | ||||
July 2001 |
Commercial Net Lease Realty |
Captec Net Lease Realty, Inc. |
21 | % | ||||
March 2001 |
GE Capital |
Franchise Finance Corporation of America |
11 | % |
• | a perpetuity growth method – under which Evercore calculated a range of terminal values for MGP by applying perpetuity growth rates ranging from 1.50% to 2.50%, which were based on Evercore’s professional judgment and experience |
• | a terminal multiple method (EV/EBITDA Multiple) – under which Evercore calculated a range of terminal values for MGP by applying enterprise value (“EV”) to EBITDA multiples ranging from 14.50x to 16.50x, which were based on Evercore’s professional judgment and experience |
• | a perpetuity growth method – under which Evercore calculated a range of terminal values for VICI by applying perpetuity growth rates ranging from 1.50% to 2.50%, which were based on Evercore’s professional judgment and experience |
• | a terminal multiple method (EV/EBITDA Multiple) – under which Evercore calculated a range of terminal values for VICI by applying EV to EBITDA multiples ranging from 16.50x to 18.50x, which were based on Evercore’s professional judgment and experience |
Premium Paid Transactions |
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Announcement Date |
Acquirer |
Target |
1 Day Premium to Share Price (%) |
30 Day Premium to Share Price (%) |
30 Day VWAP Premium to Share Price (%) |
|||||||||||
July 2021 | Kite Realty Group Trust | Retail Properties of America, Inc. | 13 | % | 14 | % | 13 | % | ||||||||
June 2021 | Ventas, Inc. | New Senior Investment Group Inc. | 32 | % | 37 | % | 14 | % | ||||||||
May 2021 | Equity Commonwealth | Monmouth Real Estate Investment Corporation | 27 | % (1) |
N/A | N/A | ||||||||||
April 2021 | Realty Income Corporation | VEREIT, Inc. | 17 | % | 25 | % | 17 | % | ||||||||
April 2021 | Kimco Realty, Corp. | Weingarten Realty Investors (2) |
11 | % | 9 | % | 12 | % | ||||||||
October 2019 | Prologis, Inc. | Liberty Property Trust | 21 | % | 19 | % | 20 | % | ||||||||
March 2019 | Cousins Properties, Inc. | Tier REIT, Inc. | 16 | % | 23 | % | 15 | % | ||||||||
April 2018 | Prologis, Inc. | DCT Industrial Trust Inc. | 16 | % | 18 | % | 20 | % | ||||||||
August 2017 | Invitation Homes, Inc. | Starwood Waypoint Homes | 1 | % | 0 | % | (3 | %) | ||||||||
June 2017 | Digital Realty Trust, Inc. | DuPont Fabros Technology, Inc. | 15 | % | 21 | % | 12 | % | ||||||||
May 2017 | Sabra Health Care REIT, Inc. | Care Capital Properties, Inc. | 12 | % | 18 | % | 11 | % | ||||||||
April 2017 | RLJ Lodging Trust | FelCor Lodging Trust Incorporated | 17 | % | 6 | % | 13 | % | ||||||||
November 2016 | Regency Centers Corporation | Equity One, Inc. | 13 | % | 3 | % | 9 | % | ||||||||
August 2016 | Mid-America Apartment Communities, Inc. |
Post Properties, Inc. | 17 | % | 19 | % | 14 | % | ||||||||
April 2016 | Cousins Properties, Inc. | Parkway Properties, Inc. | 13 | % | 15 | % | 11 | % | ||||||||
October 2014 | Omega Healthcare Investors, Inc. | Aviv REIT, Inc. | 16 | % | 28 | % | 16 | % | ||||||||
June 2013 | Mid-America Apartment Communities, Inc. |
Colonial Properties Trust | 11 | % | 6 | % | 4 | % | ||||||||
Mean |
16 | % | 16 | % | 12 | % | ||||||||||
Median |
16 | % | 18 | % | 13 | % |
(1) | Based on share price as of December 11, 2020 prior to Blackwells’ unsolicited proposal. |
(2) | Included approximately $370 million cash ($2.89 per share and 128.68 million shares outstanding). |
MGM Growth Properties LLC | ||||||
Date: October 22, 2021 | By: | /s/ Jessica Cunningham | ||||
Name: Jessica Cunningham | ||||||
Title: Secretary | ||||||
MGM Growth Properties Operating Partnership LP | ||||||
Date: October 22, 2021 | By: | /s/ Jessica Cunningham | ||||
Name: Jessica Cunningham | ||||||
Title: Secretary |