Last month casino news was filled with Land and Buildings Investment Management requesting MGM Resorts put their property into a real estate investment trust (REIT). On April 27, 2015 it was announced that Jonathan Litt, founder of Land and Buildings Investment Management is concerned with MGM Resorts most recent investments. He says investing in Maryland, Massachusetts and Macau could lead MGM Resorts into bankruptcy.

MGM Resorts invested $9 billion into CityCenter, nearly bankrupting the company according to Litt. He stated investing in Springfield Massachusetts, National Harbor Maryland, and Macau could put the casino-resort owner into a bigger gamble that will lead to solvency issues.

Litt feels MGM Resorts has continually been an underperformer with poor decisions in investments.
In a statement he said, “The Company is embarking on another $5 billion investment for development,” but it will take three years to see if the projects can make the investment worthwhile.

Litt is also upset that one of his nominees for a board position was forced off Vail Resorts. Litt further states MGM should sell some real estate and enter into a REIT because the trust would not have to pay corporate income taxes.
Land and Buildings Investment Management is less than a 1% shareholder in the company, with a $3.79 million investment. It is not enough shares to sway votes on projects but the fund tried to place its own candidates onto the board of directors in a recent election.

Leave a Reply

Your email address will not be published.