Saturday, June 25, 2022

LVS mulls sale of Singapore retail assets


Las Vegas Sands Corp. chairman and CEO says he’s considering selling Marina Bay Sands’ retail assets after a government-imposed moratorium expires next year, Bloomberg reports.

Sheldon Adelson in a conference call after LVS announced its first quarter results said the company had been speaking with potential buyers about the retail assets.

“We have been approached. We have been talking to people,” said Adelson. Capitalization rates at the 800,000 square-foot mall, located in Singapore’s prominent downtown district are attractive, and we may or may not sell a portion.”

LVS’ Macau operation reported 16Q1 profit fell 9.6 percent year on year, the result of a challenging operating environment in the region.

The results, which were below analyst expectations, saw total net revenue for Sands China down 7.9 percent to $1.6 billion in the first quarter of 2016, compared to $1.8 billion the year before. In Singapore, the strong U.S. dollar, as well as low win percentage on rolling chip negatively impacted on financial results.

Operating income was down 41.7 percent to $186 million, down from $319 million in the first quarter of 2015.

Property generated adjusted EBITDA was $274.9 million, down 33.8 percent compared to 15Q1.

According to Adelson, Las Vegas Sands “always have thoughts of monetizing anything” except its core casino assets. The company’s casino license in Singapore restricts it from doing so until 2017, and Adelson said he will discuss this with the city-state’s government in May.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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