The company's general plan is to build both core and noncore assets, then sell the noncore to pay down or off a project's debt, said Sheldon G. Adelson, chairman and CEO. The same procedure will be followed for The Venetian Macau.
"Of course, we have to wait until the commercial market improves," Adelson said. "We will consider selling the retail when we can get the price we're looking for."
For example, the company sold The Shoppes at the Palazzo in Las Vegas to General Growth Properties for a $291 million down payment in March 2008, a shortfall of $202 million that remains in flux due to the latter company's bankruptcy.
"General Growth is a misnomer right now. It's General Shrink," Adelson said. "We don't know [what's happening]. It's up to the bankruptcy court."
Despite the economy, room occupancy remained strong in Las Vegas, totaling 90%. Cost-cutting measures have strengthened the balance sheet, and the May opening of the Bethlehem (PA) Sands resort was well-received. Gaming volumes at The Venetian Macao remain healthy, with visits rising 10.3% over the first six months of 2008, the company reported.
Construction continues on schedule for a first quarter 2010 opening for the Marina Bay Sands in Singapore. In addition, "We hope to restart some of the projects we've stopped in the not too distant future," Adelson said.
Net revenue for the second quarter was $1.06 billion, down 48% from the same period in 2008. Consolidated adjusted property EBITDAR decreased 14.0% to $247.6 million.
In contrast, archrival Wynn Resorts reported second-quarter net revenues of $723.3 million, compared to $825.2 million in the second quarter of 2008, despite the opening of the Wynn Encore hotel in December 2008. Consolidated adjusted property EBITDA decreased 18.7% to $192.7 million.
Las Vegas Sands Corp. owns and operates the Venetian Resort-Hotel-Casino, the Palazzo Resort-Hotel-Casino, and the Sands Expo and Convention Center in Las Vegas and the Sands Casino Resort Bethlehem in eastern Pennsylvania, and the Venetian Macao Resort-Hotel and the Sands Macao in Macao. The company also owns the Four Seasons Hotel Macao and is developing the Marina Bay Sands resort in Singapore.
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