LEASES

12 Months Ended

Dec. 31, 2024

The Company leases real estate, land underlying certain of its properties, and various equipment under operating and, to a lesser extent, finance lease arrangements.

Real estate assets and land. The Company leases the real estate assets of its domestic properties pursuant to triple net lease agreements, which are classified as operating leases. The triple net structure of the leases requires the Company to pay substantially all costs associated with each property, including real estate taxes, insurance, utilities and routine maintenance (with each lease obligating the Company to spend a specified percentage of net revenues at the properties on capital expenditures), in addition to the annual cash rent. Each of the triple net leases also requires the Company to comply with certain financial covenants, which, if not met, would require the Company to maintain either cash security or one or more letters of credit in favor of the landlord in amounts ranging from six months to two years of rent.

Bellagio lease. The Company leases the real estate assets of Bellagio from a venture in which it has a 5% ownership interest (the “Bellagio REIT Venture”). The Bellagio lease commenced November 15, 2019 and has an initial term of 30 years with two 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 10 years and, thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year, subject to a cap of 3% during the 11th through 20th years and 4% thereafter. Annual cash rent payments for the lease year that commenced on December 1, 2024 increased to $270 million as a result of the 2% fixed annual escalator.

Mandalay Bay and MGM Grand Las Vegas lease. The Company leases the real estate assets of Mandalay Bay and MGM Grand Las Vegas from subsidiaries of VICI. The Mandalay Bay and MGM Grand Las Vegas lease commenced February 14, 2020 and has an initial term of 30 years with two 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 15 years and, thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year, subject to a cap of 3%. Annual cash rent payments for the lease year that commenced on February 29, 2024 increased to $316 million as a result of the 2% fixed annual escalator.

Aria and Vdara lease. The Company leases the real estate assets of Aria and Vdara from funds managed by The Blackstone Group, Inc. The Aria and Vdara lease commenced September 28, 2021 and has an initial term of 30 years with three 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 15 years, and thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year, subject to a cap of 3%. Annual cash rent payments for the lease year that commenced on October 1, 2024 increased to $228 million as a result of the 2% fixed annual escalator.

The VICI lease and ground subleases. The Company leases the real estate assets of Luxor, New York-New York, Park MGM, Excalibur, The Park, MGM Grand Detroit, Beau Rivage, Borgata, Empire City, MGM National Harbor, MGM Northfield Park, and MGM Springfield from VICI. The VICI lease commenced April 29, 2022 and has an initial term of 25 years, with three 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 10 years, and thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year subject to a cap of 3%. Additionally, the VICI lease provides VICI with a right of first offer with respect to any further gaming development by the Company on the undeveloped land adjacent to Empire City, which VICI may exercise should the Company elect to sell the property. Annual cash rent payments for the first lease year that commenced on April 29, 2022 was $860 million. In December 2022, in connection with the sale of the operations of The Mirage, the VICI lease was amended to remove The Mirage and to reflect a $90 million reduction in annual cash rent, thereby reducing the annual cash rent payments to $770 million. In February 2023, in connection with the sale of the operations of Gold Strike Tunica, the VICI lease was amended to remove Gold Strike Tunica and to reflect a $40 million reduction in annual cash rent, thereby reducing the annual cash rent payments to $730 million. The modifications resulted in reassessment of the lease classification and remeasurement of the VICI lease, with the lease continuing to be accounted for as an operating lease and $1.3 billion of net operating lease ROU and $1.3 billion of lease liabilities allocable to The Mirage were derecognized, and $507 million of net operating lease ROU and $516 million of lease liabilities allocable to Gold Strike Tunica were derecognized (see Note 4). Annual cash rent payments for the lease year that commenced on May 1, 2024 increased to $759 million as a result of the 2% fixed annual escalator.

The Company is also required to pay the rent payments under the ground leases of the Borgata, Beau Rivage, and National Harbor through the term of the VICI lease. The ground subleases of Beau Rivage and National Harbor are classified as operating leases and the ground sublease of Borgata is classified as a finance lease.

The Cosmopolitan lease. The Company leases the real estate assets of The Cosmopolitan from a subsidiary of Blackstone Real Estate Investment Trust, Inc. The Cosmopolitan lease commenced May 17, 2022 and has an initial term of 30 years with three 10-year renewal periods, exercisable at the Company’s option, with a fixed 2% rent escalator for the first 15 years, and thereafter, an escalator equal to the greater of 2% and the CPI increase during the prior year, subject to a cap of 3%. Annual cash rent payments for the lease year that commenced on June 1, 2024 was $208 million.

MGM China land concessions. MGM Grand Paradise has MGM Macau and MGM Cotai land concession contracts with the government of Macau, each with an initial 25-year contract term ending in April 2031 and January 2038, respectively, with a right to renew for further consecutive periods of 10 years, at MGM Grand Paradise’s option. The land leases are classified as operating leases.

Other information: Components of lease costs and other information related to the Company’s leases were:


	Year Ended December 31,
	2024		2023		2022
	(In thousands)
Operating lease cost, primarily classified within “General and administrative”(1)	$	2,300,373	$	2,306,640	$	1,986,853

Finance lease costs
Interest expense	$	32,251	$	9,899	$	9,233
Amortization expense	58,845		65,629		76,039
Total finance lease costs	$	91,096	$	75,528	$	85,272

(1)Operating lease cost includes $331 million for each of the years ended December 31, 2024, 2023, and 2022, related to the Bellagio lease, which is held with a related party.


	December 31,
	2024		2023
	(In thousands)
Operating leases
Operating lease ROU assets, net(1)	$	23,532,287	$	24,027,465
Operating lease liabilities - current, classified within “Other accrued liabilities”	$	98,021	$	74,988
Operating lease liabilities - long-term(2)	25,076,139		25,127,464
Total operating lease liabilities	$	25,174,160	$	25,202,452

Finance leases
Finance lease ROU assets, net, classified within “Property and equipment, net”	$	304,645	$	85,783
Finance lease liabilities - current, classified within “Other accrued liabilities”	$	74,191	$	9,166
Finance lease liabilities - long-term, classified within “Other long-term obligations”	243,256		85,391
Total finance lease liabilities	$	317,447	$	94,557

Weighted average remaining lease term (years)
Operating leases	24		25
Finance leases	8		22

Weighted average discount rate (%)
Operating leases	7		7
Finance leases	6		6

(1)As of December 31, 2024 and 2023, operating lease ROU assets, net included $3.4 billion and $3.5 billion related to the Bellagio lease, respectively.

(2)As of December 31, 2024 and 2023, operating lease liabilities – long-term included $3.8 billion related to the Bellagio lease. As of December 31, 2024, operating lease liabilities – current included $3 million related to the Bellagio lease.


	Year Ended December 31,
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities	(In thousands)
Operating cash outflows from operating leases	$	1,833,022	$	1,802,577	$	1,535,637
Operating cash outflows from finance leases	15,939		6,332		6,654
Financing cash outflows from finance leases(1)	54,798		71,611		84,139

ROU assets obtained in exchange for new lease liabilities
Operating leases	$	6,658	$	15,089	$	15,538,208
Finance leases	275,455		3,073		87,856

(1)Included within “Other” within “Cash flows from financing activities” on the consolidated statements of cash flows.

Maturities of lease liabilities were as follows:


	Operating Leases		Finance Leases
Year ending December 31,	(In thousands)
2025	$	1,869,121	$	89,936
2026	1,890,132		81,782
2027	1,918,449		81,371
2028	1,945,486		29,445
2029	1,972,177		7,046
Thereafter	46,972,294		121,202
Total future minimum lease payments	56,567,659		410,782
Less: Amount of lease payments representing interest	(31,393,499)		(93,335)
Present value of future minimum lease payments	25,174,160		317,447
Less: Current portion	(98,021)		(74,191)
Long-term portion of lease liabilities	$	25,076,139	$	243,256

LEASES