MGM Resorts International unveiled a special dividend of $400
million from its CityCenter joint venture that will be split
between the casino operator and Dubai World, its partner on the Las
Vegas complex.
MGM Resorts shares rose 2.2% to $22.06 in recent premarket
trading.
"CityCenter is a rapidly appreciating asset and has demonstrated
significant operating growth since opening," said Jim Murren, MGM
chairman and chief executive and chairman of CityCenter. "Both
members believe that CityCenter's strong financial position and
future free cash flow profile firmly positions it to begin to
return capital to its shareholders."
The owners will each receive $200 million and City Center
approved a regular dividend policy under which its will make annual
distributions of as much as 35% of excess cash flow, subject to
approval by CityCenter's board.
The giant Las Vegas gambling, hotel, shopping and condominium
complex opened at the end of 2009.
City Center had been marketed during the height of the real
estate boom before the recession hit as a lively mixed-use new
urban center. But the number of condos was scaled back as the
economy cooled and because one of the towers was halted by a
construction defect.
Write to Tess Stynes at tess.stynes@wsj.com
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