You calculate the occupied sqft of the Pier 17 as 47% x 147,514 sqft (not including the rooftop). But then to calculate the final occupancy of 25% if ESPN leaves you are doing ((69,332-17,000)/212,514). I guess there is a mistake there. It should be ((69,332-17,000)/147,514) = 35%.
Thanks for reading and for the comments/questions. Regarding the ESPN lease, you are correct with your numbers above. Should ESPN leave, occupancy falls to 35% at Pier 17. I did not see that 12% of the rental income figure you cited for the ESPN lease—I went off a public report. That said, the two errors are not referenced in the calculation of the stabilized rental revenue figure used to calculate the value of the business.
Regarding the aviators and ballpark, the delta between the reported $30.8m in 2023 revenue from the aviators and ballpark is sponsorship/naming rights revenue. The aviators have a 20-year $80m naming rights contract with the Las Vegas Convention and Visitors Authority ($4m/yr). The remainder comes from team sponsorships and other sponsorships throughout the stadium.
Your question on the F&B: It's an educated guess. They stated, "Sponsorships, events, and entertainment revenue increased $4.9 million, or 9%, to $60.6 million for the year ended December 31, 2023, compared to $55.7 million in the prior-year period. This change was primarily due to a $1.3 million increase in Aviators baseball and special event ticket sales, a $1.4 million increase in the Las Vegas Ballpark concession sales," So I tried calculating the per-game F&B revenue, factoring in the number of events and games played at the ballpark to come up with F&B revenue/game.
Also I have some doubts regarding the ESPN issue and the Pier 17. The company discloses that the tenant could be leaving by the end of 2025 and this represents 12% of total rental revenue 2023. (this would represent USD 2.6 M). Taking your USD 1.5 M pro year and rental revenue 2023 of USD 22 M I get ca. 7%.
I have some doubts regarding the Aviators Valuation because I have also found that the Company Reporting has some discrepancies.
For example
Preliminary Prospectus 13.09.2024 (p.114 of the Document or p.149 from PDF Version) states that they sold approx 6800 tickets por game in 2023. However in the page 108 (or 143 of the PDF Version) they say that they sold 388000 tickets in 2023 (that makes 5713 por game vs the 6800 above). And also if we take the price per ticket of USD 23,32 and the 6800 we have almost USD 12 M of baseball game revenue. However they release that revenue in 2023 was USD 9.0 M.
In addition you have 2023 Revenue for Ballpark & Aviators USD 23,5 revenue and the company said also in the prospectus that the "Aviators and Ballpark generated approximately USD 33.4 M in revenue"
You calculate the occupied sqft of the Pier 17 as 47% x 147,514 sqft (not including the rooftop). But then to calculate the final occupancy of 25% if ESPN leaves you are doing ((69,332-17,000)/212,514). I guess there is a mistake there. It should be ((69,332-17,000)/147,514) = 35%.
ESPN represents 25% of current occupancy.
Thanks for reading and for the comments/questions. Regarding the ESPN lease, you are correct with your numbers above. Should ESPN leave, occupancy falls to 35% at Pier 17. I did not see that 12% of the rental income figure you cited for the ESPN lease—I went off a public report. That said, the two errors are not referenced in the calculation of the stabilized rental revenue figure used to calculate the value of the business.
Regarding the aviators and ballpark, the delta between the reported $30.8m in 2023 revenue from the aviators and ballpark is sponsorship/naming rights revenue. The aviators have a 20-year $80m naming rights contract with the Las Vegas Convention and Visitors Authority ($4m/yr). The remainder comes from team sponsorships and other sponsorships throughout the stadium.
Your question on the F&B: It's an educated guess. They stated, "Sponsorships, events, and entertainment revenue increased $4.9 million, or 9%, to $60.6 million for the year ended December 31, 2023, compared to $55.7 million in the prior-year period. This change was primarily due to a $1.3 million increase in Aviators baseball and special event ticket sales, a $1.4 million increase in the Las Vegas Ballpark concession sales," So I tried calculating the per-game F&B revenue, factoring in the number of events and games played at the ballpark to come up with F&B revenue/game.
thanks for your reply!
the 12% I took it from company disclosure. They say that there is a tenant contract expiring in 2025 and it represents 12%
Also I have some doubts regarding the ESPN issue and the Pier 17. The company discloses that the tenant could be leaving by the end of 2025 and this represents 12% of total rental revenue 2023. (this would represent USD 2.6 M). Taking your USD 1.5 M pro year and rental revenue 2023 of USD 22 M I get ca. 7%.
What I am not seeing?
Thanks in advance
Hi!
Good Article and good insights. Thanks
I have some doubts regarding the Aviators Valuation because I have also found that the Company Reporting has some discrepancies.
For example
Preliminary Prospectus 13.09.2024 (p.114 of the Document or p.149 from PDF Version) states that they sold approx 6800 tickets por game in 2023. However in the page 108 (or 143 of the PDF Version) they say that they sold 388000 tickets in 2023 (that makes 5713 por game vs the 6800 above). And also if we take the price per ticket of USD 23,32 and the 6800 we have almost USD 12 M of baseball game revenue. However they release that revenue in 2023 was USD 9.0 M.
In addition you have 2023 Revenue for Ballpark & Aviators USD 23,5 revenue and the company said also in the prospectus that the "Aviators and Ballpark generated approximately USD 33.4 M in revenue"
I do not get how did you reach the F&B numbers.
Best regards,
Hernán