MGM Resorts International releases investor presentation

The 32-page report, issued Monday on MGM's investor relations website, makes only one reference to MGM Springfield. It notes that the property is expected to open in the second half of 2017 in a section also touting MGM National Harbor in Maryland set to open in 2016 and MGM Cotai in China which is also expected to open in 2016.

Land & Buildings, a Connecticut-based hedge fund founded and operated by investor and former Citigroup analyst Jonathan Litt, is pushing MGM to convert its land assets to a real estate investment trust, or REIT, and spin off its lodging and entertainment businesses. Litt's group also wants MGM to prepay its debt and pay a special dividend to shareholders with money Litt wants MGM to get by selling its operations in Macau or by spinning those operations off into a separate company. This, according to a Land & Buildings shareholders proposal, made public in March.

A Real Estate Investment Trust is a company that operates real estate and must, by law, distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends. An REIT is also allowed to deduct dividends paid to shareholders from its taxable income, thus providing a tax savings to investors.

In its proposal, Land & Buildings said shares of Penn National Gaming had a 77 percent rally following an REIT announcement.
Litt has a slate of candidates he wants to get elected to the MGM board at the MGM annual meeting May 28.
in response, MGM said the proposal, "has a narrow, short-term focus and makes numerous financial, structural and tax assumptions that appear unsupported or are factually incorrect."

MGM says its stock has outperformed both peer companies, like Wynn Resorts, and the Dow Jones domestic gaming index, an average of stocks in the industry.

MGM also touted strong domestic performance, particularity in Las Vegas. The company has had trouble in Macau where a slowing Chinese economy and crackdowns on corruption have hurt business.

In February, MGM reported a loss of 31 cents per share for the year 2014, compared with a 35 cent-a-share loss for the year 2013. it also reported d a net loss of $150 million for 2014, compared with a net loss of $172 million for the year before.
Casino revenue at MGM's domestic resorts increased 5 percent in its most recently reported quarter compared with the same three monthsof 2013.

In mid-day trading on Monday, MGM Resorts Stock (MGM on the New York Stock Exchange) was $21.84 a share, up 41 cents or 1.89 percent.

The industry as a whole was also having a good morning. The Dow Jones U.S. Gaming Index was up 2.29 percent.