SMRT

[CityFarmer]

SMRT Alpha will have an additional 41,000 square metres of commercial retail space at the Singapore Sports Hub to operate in April 2014.

Currently their total lettable space is 36,779sqm which means they will have an additional 1.1x lettable space come april. I am estimating around 130m in operating profit p.a. for the Rental segment once the Sports Hub starts operating. It should be noted that Rental is their main profit driver accounting for 70% of their non fare business.

With the upcoming rise in fares, we can expect SMRT to minimize its losses in the fare segment. I think investors should be more focused on the Rental and Advertising part of SMRT's business.

$130m in operating profit from rental on Sport Hub?

I took a glance on FCT's FY2013 revenue, it was $158m, with gross profit of $112m.

Will the "operating profit" from the Sport Hub alone more than FCT's full year gross profit? I really doubt so.

(not vested)

[yawnyawn]

130 millions of operating profit just on rentals?

How does the rental for sports hub works? Do they own the places?

AWARD OF BID
3.1 Agreements Entered Into
Pursuant to the award of the Bid, SMRT Alpha has today entered into the following agreements with Sportshub:
(a) the sub-lease (the “Sub-Lease”) setting out the terms of the lease of the Retail Area;
(b) the retail contract (the “Retail Contract”) for the management and operation of the Retail Area; and
© other ancillary agreements related to the Sub-Lease and the Retail Contract.

3.2 Sub-Lease
Under the Sub-Lease, Sportshub will lease the Retail Area to SMRT Alpha for a term of twelve (12) years commencing from the date on which the Retail Area is fully commissioned and ready for commercial and retail operations or activities (the “Commencement Date”).

The rent, payable by SMRT Alpha to Sportshub under the Sub-Lease, comprises fixed and additional rent components. In addition, service charges are also payable. The Sub-Lease provides that SMRT Alpha may sublet, underlet or licence to third parties the Retail Area or any part thereof subject to terms and conditions in the Sub-Lease.

3.3 Retail Contract
Under the Retail Contract, SMRT Alpha shall manage and operate the Retail Area for a term of twelve (12) years, unless the Retail Contract has been otherwise earlier terminated in accordance with its terms. The Retail Contract sets out the terms and conditions and standards of performance required of the management and operation of the Retail Area by SMRT Alpha.

SMRT Investments and Alphaplus, as shareholders of SMRT Alpha, are further required to inter alia provide a guarantee (the “Guarantee”) of up to S$15 million on a joint and several basis to Sportshub to guarantee the due and proper performance by SMRT Alpha of its duties and obligations under the Retail Contract. The Guarantee will only be effective upon certain conditions subsequent under the Retail Contract being met.

http://www.smrt.com.sg/Portals/0/PDFs/Do...rtshub.pdf

[yawnyawn]

SMRT Alpha will have an additional 41,000 square metres of commercial retail space at the Singapore Sports Hub to operate in April 2014.

Currently their total lettable space is 36,779sqm which means they will have an additional 1.1x lettable space come april. I am estimating around 130m in operating profit p.a. for the Rental segment once the Sports Hub starts operating. It should be noted that Rental is their main profit driver accounting for 70% of their non fare business.

With the upcoming rise in fares, we can expect SMRT to minimize its losses in the fare segment. I think investors should be more focused on the Rental and Advertising part of SMRT's business.

$130m in operating profit from rental on Sport Hub?

I took a glance on FCT's FY2013 revenue, it was $158m, with gross profit of $112m.

Will the "operating profit" from the Sport Hub alone more than FCT's full year gross profit? I really doubt so.

(not vested)

I was talking about the existing lettable space + upcoming Sports Hub. SMRT is already generating 73.2m of operating profit based on existing lettable space(excluding sports hub and using assumption that 4q14 op profit equals 3q14 op profit)

http://infopub.sgx.com/FileOpen/Presenta...eID=272775

[Investmentrealm]

SMRT needs to pay rent for the lease right? You mean after all the costs, they will earn an extra $50 million a year? That's easy money. Why didn't other companies bid for it too?

Anyway, that's provided they are successful. If it becomes another white elephant..

[weijian]

I was talking about the existing lettable space + upcoming Sports Hub. SMRT is already generating 73.2m of operating profit based on existing lettable space(excluding sports hub and using assumption that 4q14 op profit equals 3q14 op profit)

http://infopub.sgx.com/FileOpen/Presenta...eID=272775

I am afraid not all lettable spaces are created EQUAL and your extrapolation is a tad too optimistic.

- The 70+ mil of operating profit from SMRT's existing rental spaces is generated by a 1.9mil strong daily weekday ridership (source: SMRT AR2012) and well connected by a supporting network of buses, taxis and sheltered walkways.
- Not all MRT stations are created equal too. Although SMRT does not reveal individual station statistics, but i suspect its retailing crown jewels like Raffles Xchange or Woodlands Xchange are raking in more money on a per sqft basis. Sports Hub is located at Stadium MRT and IIRC, the last time i passed by, the 2-4 shop lots were still vacant.
- Granted, Sports Hub will host SEA GAMES 2015 and may be able to score big like Changi Airport T3 (ie. retailing as a secondary function of the building gets popular with the crowds and shoppers) but that would still restrict itself to be crowded on the weekends only.

[yawnyawn]

Just for comparison, Causeway point fy13 revenue was 75m and net property income was 54.5m. Net lettable area of Sports Hub is 5% greater than CWP. We can expect Sports Hub when in operation to generate similar revenue to CWP.

Yes, SMRT will need to pay rent for the lease. I did not take into account of that and i will revise my estimate once details of the rent is provided.

[Investmentrealm]

Just for comparison, Causeway point fy13 revenue was 75m and net property income was 54.5m. Net lettable area of Sports Hub is 5% greater than CWP. We can expect Sports Hub when in operation to generate similar revenue to CWP.

Yes, SMRT will need to pay rent for the lease. I did not take into account of that and i will revise my estimate once details of the rent is provided.

It's not really a fair comparison. First, there own the place n dont have to pay lease. Second, there are huge human traffic there everyday. Lots of people stay there. Nobody stays near sports hub. People will be there when there are events. Look at the flyers.. Or esplanades. Wonder how these shops survive.

[opmi]

Just for comparison, Causeway point fy13 revenue was 75m and net property income was 54.5m. Net lettable area of Sports Hub is 5% greater than CWP. We can expect Sports Hub when in operation to generate similar revenue to CWP.

Yes, SMRT will need to pay rent for the lease. I did not take into account of that and i will revise my estimate once details of the rent is provided.

It's not really a fair comparison. First, there own the place n dont have to pay lease. Second, there are huge human traffic there everyday. Lots of people stay there. Nobody stays near sports hub. People will be there when there are events. Look at the flyers.. Or esplanades. Wonder how these shops survive.

look no further - Singapore Indoor Stadium. Very niche crowd. Weekend crowd.

Sportshub folks are betting events driving traffic. And hopefully selling overpriced stuff (like popcorn in cinemas). I guess.

[CityFarmer]

It seems the news is timely for this thread. Base on the info, 24 major events for this year, starting in April. Will the hub beat Causeway Point crowd over about 36 weekends plus weekdays during the same period? I will bet for the Causeway Point. How about you?

(not vested)

SportsHub unveils list of events it will host for this year

SINGAPORE — Thirteen sports and 11 entertainment events will form the spread of activities that will be held at the Singapore Sports Hub when the S$1.33 billion Kallang facility opens in April.

Major sports events will include the rugby World Club 10s in June, the Singapore-Malaysia football derby in August, the Asean Football Federation Suzuki Cup tournament at the end of the year, the Women’s Tennis Association (WTA) Championships (October) and the Singapore Swim Stars featuring a host of world-class swimmers in September.

There will also be concerts at the Sports Hub by American singers Lionel Richie (in April) and Taylor Swift (in June) and Taiwanese superstar Jay Chou (November).

SportsHub Chief Executive Officer Philippe Collin Delavaud said: “Beyond spectator events, the Singapore Sports Hub will offer community programming, sports experience initiatives and public facilities open to all, young and old.
...
http://www.todayonline.com/singapore/spo...-host-year

[yawnyawn]

It seems the news is timely for this thread. Base on the info, 24 major events for this year, starting in April. Will the hub beat Causeway Point crowd over about 36 weekends plus weekdays during the same period? I will bet for the Causeway Point. How about you?

(not vested)

SportsHub unveils list of events it will host for this year

SINGAPORE — Thirteen sports and 11 entertainment events will form the spread of activities that will be held at the Singapore Sports Hub when the S$1.33 billion Kallang facility opens in April.

Major sports events will include the rugby World Club 10s in June, the Singapore-Malaysia football derby in August, the Asean Football Federation Suzuki Cup tournament at the end of the year, the Women’s Tennis Association (WTA) Championships (October) and the Singapore Swim Stars featuring a host of world-class swimmers in September.

There will also be concerts at the Sports Hub by American singers Lionel Richie (in April) and Taylor Swift (in June) and Taiwanese superstar Jay Chou (November).

SportsHub Chief Executive Officer Philippe Collin Delavaud said: “Beyond spectator events, the Singapore Sports Hub will offer community programming, sports experience initiatives and public facilities open to all, young and old.
...
http://www.todayonline.com/singapore/spo...-host-year

Besides the 24 major events happening in 2014, we can also expect visitors to spend time in the malls after doing their sports, be it dragon boating, netball, rock wall climbing etc. Not forgetting the sports museum and the sports library will be a good place for tourists and schools to plan their excursions.

From the Straits Times, The hub is also home to a 6,000-capacity indoor aquatic centre, a 3,000-capacity multi-purpose indoor arena and a water sports centre featuring dragon boating, kayaking and canoeing in the Kallang Basin. There is also a 41,000 sq m retail and waterfront area as well as a sports museum and sports library.

With facilities such as courts for volleyball and basketball, facilities for lawn bowls, a skate park, a climbing wall as well as running and cycling circuits, you do not have to be a professional athlete to enjoy these offerings.

The Singapore Sports Hub will be a place where Singaporeans can shop, play, cheer and roar under one roof.

Of course CWP will win by the number of visits right now. But overtime I expect Sports Hub to do as well as CWP given that it can provide something different to visitors as compared to other malls in SG. Let's see the tenant mix when it opens, I will prefer a higher mix of F&B as I feel that there is an attraction with dining at the waterfront.

(Not vested too)