MGM Resorts Unveils Special Dividend

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.

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