MGM: Land & Buildings Decides To Go Big by Stock Pucker
- L&B is taking on one of the best-known casino operators, despite being relatively unknown itself.
- L&B thinks in the base case there’s upside to $33 a share, and in the bull case, $55 a share.
- It appears that MGM’s stock has been pressured of late due to Macau concerns, perhaps, justifiably.
Land & Buildings (“L&B”) has been quietly waging battles in the real estate space for some time. Its specialty is REITs and real estate companies. During October of last year, we noted that L&B was working on unlocking value in Pennsylvania REIT ($PEI). It’s the fund’s second-largest holding.
It’s now taking on the $10 billion market cap casino operator, MGM ($MGM). L&B has put together a 50-page presentation on MGM.
It’s also nominated four directors for the 11-person board. Its four nominees include the former Hilton CFO – Matt Hart; former Equity Office CEO – Richard Kincaid; former PE firm and law firm partner – Marc Weisman; and L&B founder – Jonathan Litt. Read the full piece here.
