Wynn Resorts’ Strong Finances Power Self-Funded UAE Expansion

Wynn Resorts is able to self-fund its $900 million investment in the Wynn Al Marjan Island development in the United Arab Emirates thanks to its good financial position, according to CBRE Credit Research.

Analysts point to Wynn’s projected gains in cash flow and “strong internal liquidity” as key factors.

In addition to allaying worries, Wynn Al Marjan Island’s self-funding may increase the parent company’s financial clout.

CEO of Wynn Craig Billings had earlier declared a 50/50 debt-to-equity ratio, in which Wynn would invest 40 percent of the equity. According to CBRE experts, Wynn’s leverage ratio will gradually drop as a result of the project.

Additionally, it is anticipated that Wynn’s free cash flow will surpass all other companies’ by 2026, with the help of growing cash flow from Wynn Macau Ltd. and potential dividends to shareholders.

Despite the ownership structure based on stock, CBRE highlights Wynn’s substantial cash reserves, characterizing funding as “a non-issue.” For the parent company, existing assets already generate sizable annual fees.

In general, CBRE thinks that if Wynn’s projections for the UAE project and its profits come to pass, the company’s creditworthiness will rise. Wynn’s portfolio gains a significant asset with this move, increasing its worldwide diversification.

Original Story by: Inside Asian Gaming