LAS VEGAS SANDS CORP. The following discussion should be read in conjunction with, and is qualified in its entirety by, the condensed consolidated financial statements and the notes thereto, and other financial information included in this Form 10-Q. Certain statements in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. See "Special Note Regarding Forward-Looking Statements." COVID-19 Pandemic In earlyJanuary 2020 , an outbreak of a respiratory illness caused by a novel coronavirus ("COVID-19") was identified and the disease has since spread rapidly across the world causing theWorld Health Organization to declare the outbreak of a pandemic onMarch 12, 2020 (the "COVID-19 Pandemic"). Governments around the world mandated actions to contain the spread of the virus that included stay-at-home orders, quarantines, capacity limits, closures of non-essential businesses and significant restrictions on travel. The government actions varied based upon a number of factors, including the extent and severity of the COVID-19 Pandemic within their respective countries and jurisdictions. Visitation to theMacao Special Administrative Region ("Macao") ofthe People's Republic of China ("China") has decreased substantially as a result of various government policies limiting or discouraging travel. As of the date of this report, other than people from mainlandChina who in general may enterMacao without quarantine subject to them holding the appropriate travel documents, a negative COVID-19 test result and a green health-code, there remains in place a complete ban on entry or a need to undergo various quarantine requirements depending on the person's residency and recent travel history. Our operations inMacao will continue to be impacted and subject to changes in the government policies ofMacao, China ,Hong Kong and other jurisdictions inAsia addressing travel and public health measures associated with COVID-19.Macao began administering the COVID-19 vaccine to front-line health workers onFebruary 9, 2021 , and to the general population onMarch 3, 2021 . OnMarch 3, 2021 , the negative COVID-19 test requirement to enter casinos was removed. Various other health safeguards implemented by theMacao government remain in place, including mandatory mask protection, limitation on the number of seats per table game, slot machine spacing and temperature checks. Management is currently unable to determine when the remaining measures will be eased or cease to be necessary. As of the date of this report, most businesses are allowed to remain open, subject to social distancing and health code checking requirements as designated by theMacao government. In support of theMacao government's initiatives to fight the COVID-19 Pandemic, we provided one tower (approximately 2,100 hotel rooms) at the Sheraton GrandMacao to theMacao government to house individualswho returned toMacao for quarantine purposes. This tower has been utilized for quarantine purposes on several occasions during 2020 and 2021. FromOctober 4, 2021 , an additional tower (approximately 1,800 hotel rooms) at the Sheraton Grand Macao was provided. OurMacao gaming operations remained open during the nine months endedSeptember 30, 2021 , compared to the same period in 2020 when ourMacao gaming operations were suspended fromFebruary 5, 2020 toFebruary 19, 2020 due to a government mandate, except for gaming operations at The Londoner Macao, which resumed onFebruary 27, 2020 . Some of ourMacao hotel facilities were also closed during the casino suspension in response to the decrease in visitation and were gradually reopened fromFebruary 20, 2020 , with the exception of the ConradMacao , at The Londoner Macao (the "Conrad hotel"), which reopened onJune 13, 2020 . Operating hours at restaurants across ourMacao properties are continuously being adjusted in line with fluctuations in guest visitation. The majority of retail outlets in ourMacao shopping malls are open with reduced operating hours. The timing and manner in which these areas will return to full operation are currently unknown. Our ferry operations betweenMacao andHong Kong remain suspended. The timing and manner in which our normal ferry operations will be able to resume are currently unknown. 30 -------------------------------------------------------------------------------- Table of Contents OurMacao operations have been significantly impacted by the reduced visitation toMacao . TheMacao government announced total visitation from mainlandChina toMacao decreased to 1.6 million visits during the quarter endedMarch 31, 2021 , from 2.3 million visits during the quarter endedMarch 31, 2020 , and increased to a total of 2.0 million visits during the quarter endedJune 30, 2021 , from approximately 46,000 visits during the quarter endedJune 30, 2020 . Total visitation increased to a total of approximately 1.1 million visits in July andAugust 2021 as compared to 267,000 visits during the same two-month period in 2020. TheMacao government also announced gross gaming revenue increased by 75.6% during the nine months endedSeptember 30, 2021 , as compared to the same period in 2020. As of the date of this report, entry intoSingapore is largely limited toSingapore citizens and permanent residents, with certain visitors allowed from specified countries on a quarantine-free basis, subject to certain requirements and health control measures. Additionally, there are no stay-at-home orders or curfews except for certain individuals arriving intoSingapore who are subject to quarantine and individualswho may be assessed to have been exposed to COVID-19 as a result of the government's contact tracing efforts. All operations are currently subject to limited capacities and other social distancing measures. EffectiveOctober 13, 2021 , only fully vaccinated individuals or those with a valid negative pre-event test result are allowed to enter the casino and other attractions.Singapore started administering the COVID-19 vaccine to front-line health workers onDecember 30, 2020 , and continues to roll-out the vaccine to the general population. Our operations at Marina Bay Sands will continue to be impacted and subject to changes in the government policies ofSingapore and other jurisdictions inAsia addressing travel and public health measures associated with COVID-19. These government policies will continue to impact (i) the number of people allowed at business-to-business events, sporting events and live performances; (ii) closure or limited seating at food and beverage or entertainment establishments; and (iii) casino capacity limits, among other restrictions. During the nine months endedSeptember 30, 2021 , gaming operations at Marina Bay Sands were closed onMay 17 untilMay 18, 2021 and onJuly 22 untilAugust 4, 2021 due to pandemic-related measures in consultation with theSingapore government authorities. As a result of the border closures, visitation toMarina Bay Sands continues to be impacted by the effects of the COVID-19 Pandemic. TheSingapore Tourism Board ("STB") announced total visitation toSingapore decreased to approximately 70,000 visits during the quarter endedMarch 31, 2021 , as compared to 2.7 million visits during the same period in 2020, and increased to approximately 50,000 visits during the quarter endedJune 30, 2021 , as compared to 4,000 visits during the same period in 2020. Total visitation increased to a total of approximately 34,000 visits in July andAugust 2021 as compared to 16,000 visits during the same two-month period in 2020. EffectiveJune 1, 2021 , pursuant to State ofNevada and Nevada Gaming Control Board decisions, all capacity limits, restrictions on large gatherings and other restrictions, which had been implemented in response to the impact of the COVID-19 Pandemic, were lifted and ourLas Vegas Operating Properties are operating under pre-pandemic guidelines.Las Vegas started administering the COVID-19 vaccine in early 2021 and, effectiveApril 5, 2021 , all individuals, 16 and older are eligible to receive the vaccine. During the nine months endedSeptember 30, 2021 , ourLas Vegas Operating Properties were open subject to various capacity limits in place at various times throughout the year. This compares to the same period in 2020 when ourLas Vegas Operating Properties operations were suspended onMarch 18, 2020 , due to a government mandate, and onJune 4, 2020 ,The Venetian Tower ,The Palazzo Tower and select food and beverage outlets reopened, with certain operations subject to reduced capacity. Convention, meeting and certain entertainment related operations remained closed for a portion of the nine months endedSeptember 30, 2020 . Visitation to ourLas Vegas Operating Properties continues to be impacted by the effects of the COVID-19 Pandemic; however, visitation has increased as restrictions have been lifted. TheLas Vegas Convention and Visitors Authority announced for the quarters endedMarch 31, 2021 andJune 30, 2021 , visitation toLas Vegas decreased to 5.1 million visits and increased to 8.4 million visits, respectively, as compared to 8.4 million visits and 1.3 million visits during the same periods in 2020, respectively. Total visitation increased to a total of 6.3 million visits in July andAugust 2021 , as compared to 3.0 million during the same two-month period in 2020. TheLas Vegas Convention and Visitors Authority also announced for the quarters endedMarch 31, 2021 andJune 30, 2021 , gross 31 -------------------------------------------------------------------------------- Table of Contents gaming revenue for the Las Vegas Strip decreased to$1.17 billion and increased to$1.75 billion , respectively, as compared to$1.47 billion and$245 million during the same periods in 2020, respectively. Total gross gaming revenue increased to$1.42 billion in July andAugust 2021 , as compared to$647 million during the same two-month period in 2020. At ourMacao properties andMarina Bay Sands , we are adhering to social distancing requirements, which include reduced seating at table games and a decreased number of active slot machines on the casino floor. Additionally, there is uncertainty around the impact the COVID-19 Pandemic will continue to have on operations in future periods. If ourIntegrated Resorts are not permitted to resume normal operations, travel restrictions such as those related to the China Individual Visit Scheme and other global restrictions on inbound travel from other countries are not modified or eliminated, or the global response to contain the COVID-19 Pandemic escalates or is unsuccessful, our operations, cash flows and financial condition will be further materially impacted. While ourMacao andSingapore properties were open and operating at reduced levels due to lower visitation and the implementation of required safety measures as described above during the nine months endedSeptember 30, 2021 , the current economic and regulatory environment on a global basis and in each of our jurisdictions continues to evolve. We cannot predict the manner in which governments will react as the global and regional impact of the COVID-19 Pandemic changes over time, which could significantly alter our current operations. We have a strong balance sheet and sufficient liquidity in place, including total cash and cash equivalents balance, excluding restricted cash and cash equivalents, of$1.64 billion and access to$1.50 billion ,$2.0 billion and$436 million of available borrowing capacity from our LVSC Revolving Facility, 2018 SCL Revolving Facility and 2012 Singapore Revolving Facility, respectively, and3.69 billion Singapore dollars ("SGD," approximately$2.71 billion at exchange rates in effect onSeptember 30, 2021 ) under our Singapore Delayed Draw Term Facility, exclusively for capital expenditures for the Marina Bay Sands expansion project (subject to restrictions as described further below under Development Projects), as ofSeptember 30, 2021 . We believe we are able to support continuing operations, complete the major construction projects that are underway and respond to the current COVID-19 Pandemic challenges. We have taken various mitigating measures to manage through the current environment, including a cost and capital expenditure reduction program to minimize cash outflow of non-essential items. Operations We view each of ourIntegrated Resort properties as an operating segment. Our operating segments inMacao consist of The Venetian Macao; The Londoner Macao; The Parisian Macao; ThePlaza Macao and Four Seasons Macao; and the Sands Macao. Our operating segment inSingapore isMarina Bay Sands . OnMarch 2, 2021 , we entered into definitive agreements to sell ourLas Vegas real property and operations, including The Venetian Resort Las Vegas and theSands Expo and Convention Center , for a total enterprise value of$6.25 billion toPioneer OpCo, LLC , an affiliate of certain funds managed by affiliates of Apollo Global Management, Inc., and VICI Properties L.P, a subsidiary of VICI Properties Inc. The closing of the transaction is subject to regulatory review and other closing conditions and we anticipate the closing of the transaction in the first quarter of 2022. Macao Subconcession Gaming inMacao is administered by the government through concession agreements awarded to three different concessionaires and three subconcessionaires, of whichVenetian Macau Limited ("VML," a subsidiary of Sands China Ltd.) is one. These concession agreements expire onJune 26, 2022 . If VML's subconcession is not extended or renewed, VML may be prohibited from conducting gaming operations inMacao , and VML could cease to generate revenues from the gaming operations when the subconcession agreement expires onJune 26, 2022 . In addition, all of VML's casino premises and gaming-related equipment could be automatically transferred to theMacao government without any compensation to VML. It is possible theMacao government could change or interpret the associated gaming laws in a manner that could negatively impact us. Under our SCL senior notes indentures, upon the occurrence of any event resulting from any change in Gaming Law (as defined in the indentures) after which none of Sands China Ltd. ("SCL") subsidiaries own or manage casino or gaming areas or operate casino games of fortune and chance inMacao in substantially the same 32 -------------------------------------------------------------------------------- Table of Contents manner as they are owning or managing casino or gaming areas or operating casino games as of the issue date of the SCL senior notes, for a period of 30 consecutive days or more, and such event has a material adverse effect on the financial condition, business, properties or results of operations of SCL and its subsidiaries, taken as a whole, holders of the SCL senior notes can require us to repurchase all or any part of the SCL senior notes at par, plus any accrued and unpaid interest (the "Investor Put Option"). Additionally, under the 2018 SCL Credit Facility, the events that trigger an Investor Put Option under the SCL senior notes (as described above) would be an event of default, which may result in commitments being immediately cancelled, in whole or in part, and the related outstanding balances and accrued interest, if any, becoming immediately due and payable. The subconcession not being extended or renewed and the potential impact if holders of the notes and the agent have the ability to, and make the election to, accelerate the repayment of our debt would have a material adverse effect on our business, financial condition, results of operations and cash flows. We intend to follow the process for a concession renewal once the process and requirements are announced by theMacao government. We are actively monitoring developments with respect to theMacao government's concession renewal process and continue to believe our subconcession will be extended or renewed beyondJune 26, 2022 . Critical Accounting Policies and Estimates For a discussion of our significant accounting policies and estimates, please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations" presented in our 2020 Annual Report on Form 10-K filed onFebruary 5, 2021 . There were no newly identified significant accounting estimates during the nine months endedSeptember 30, 2021 , nor were there any material changes to the critical accounting policies and estimates discussed in our 2020 Annual Report. Recent Accounting Pronouncements See related disclosure at "Item 1 - Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 1 - Organization and Business of Company - Recent Accounting Pronouncements." Operating Results Key Operating Revenue Measurements Operating revenues at The Venetian Macao, The Londoner Macao, The ParisianMacao , ThePlaza Macao and Four Seasons Macao,Marina Bay Sands and ourLas Vegas Operating Properties are dependent upon the volume of patronswho stay at the hotel, which affects the price charged for hotel rooms and our gaming volume. Operating revenues at Sands Macao are principally driven by the volume of gaming patronswho visit the property on a daily basis. Management utilizes the following volume and pricing measures in order to evaluate past performance and assist in forecasting future revenues. The various volume measurements indicate our ability to attract patrons to ourIntegrated Resorts . In casino operations, win and hold percentages indicate the amount of revenue to be expected based on volume. In hotel operations, average daily rate and revenue per available room indicate the demand for rooms and our ability to capture that demand. In mall operations, base rent per square foot indicates our ability to attract and maintain profitable tenants for our leasable space. The following are the key measurements we use to evaluate operating revenues: Casino revenue measurements forMacao andSingapore :Macao andSingapore table games are segregated into two groups: Rolling Chip play (composed of VIP players) and Non-Rolling Chip play (mostly non-VIP players). The volume measurement for Rolling Chip play is non-negotiable gaming chips wagered and lost. The volume measurement for Non-Rolling Chip play is table games drop ("drop"), which is net markers issued (credit instruments), cash deposited in the table drop boxes and gaming chips purchased and exchanged at the cage. Rolling Chip and Non-Rolling Chip volume measurements are not comparable as they are two distinct measures of volume. The amounts wagered and lost for Rolling Chip play are substantially higher than the amounts dropped for Non-Rolling Chip play. Slot handle, also a volume measurement, is the gross amount wagered for the period cited. 33 -------------------------------------------------------------------------------- Table of Contents We view Rolling Chip win as a percentage of Rolling Chip volume, Non-Rolling Chip win as a percentage of drop and slot hold (amount won by the casino) as a percentage of slot handle. Win or hold percentage represents the percentage of Rolling Chip volume, Non-Rolling Chip drop or slot handle that is won by the casino and recorded as casino revenue. Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis. Our Rolling Chip table games are expected to produce a win percentage of 3.15% to 3.45% inMacao andSingapore , and our Non-Rolling Chip table games have produced a trailing 12-month win percentage of 26.7%, 21.6%, 22.3%, 22.1%, 16.9% and 16.6% at The Venetian Macao, The Londoner Macao, The Parisian Macao, ThePlaza Macao and Four Seasons Macao, Sands Macao andMarina Bay Sands , respectively. Our slot machines have produced a trailing 12-month hold percentage of 3.9%, 3.9%, 3.3%, 5.7%, 3.3% and 4.3% at The Venetian Macao, The Londoner Macao, The Parisian Macao, ThePlaza Macao and Four Seasons Macao, Sands Macao andMarina Bay Sands , respectively. Actual win and hold percentages may vary from our expected win percentage and the trailing 12-month win and hold percentages. Generally, slot machine play is conducted on a cash basis. InMacao andSingapore , 15.2% and 8.1%, respectively, of our table games play was conducted on a credit basis for the nine months endedSeptember 30, 2021 . Casino revenue measurements for theU.S. : The volume measurements in theU.S. are slot handle, as previously described, and table games drop, which is the total amount of cash and net markers issued (credit instruments) deposited in the table drop box. We view table games win as a percentage of drop and slot hold as a percentage of slot handle. Our win and hold percentages are calculated before discounts, commissions, deferring revenue associated with our loyalty programs and allocating casino revenues related to goods and services provided to patrons on a complimentary basis. Based upon our mix of table games, our table games are expected to produce a win percentage of 18% to 26% for Baccarat and 16% to 24% for non-Baccarat. Our slot machines have produced a trailing 12-month hold percentage of 8.4%. Actual win and hold percentages may vary from our expected win percentage and the trailing 12-month win and hold percentages. Similar toMacao andSingapore , slot machine play is generally conducted on a cash basis. Approximately 53.9% of our table games play at ourLas Vegas Operating Properties , for the nine months endedSeptember 30, 2021 , was conducted on a credit basis. Hotel revenue measurements: Performance indicators used are occupancy rate (a volume indicator), which is the average percentage of available hotel rooms occupied during a period and average daily room rate ("ADR," a price indicator), which is the average price of occupied rooms per day. Available rooms exclude those rooms unavailable for occupancy during the period due to renovation, development or other requirements (such as government mandated closure, lodging for team members and usage by theMacao andSingapore governments for quarantine measures). The calculations of the occupancy rate and ADR include the impact of rooms provided on a complimentary basis. Revenue per available room ("RevPAR") represents a summary of hotel ADR and occupancy. Because not all available rooms are occupied, ADR is normally higher than RevPAR. Reserved rooms where the guests do not show up for their stay and lose their deposit, or where guests check out early, may be re-sold to walk-in guests. Mall revenue measurements: Occupancy, base rent per square foot and tenant sales per square foot are used as performance indicators. Occupancy represents gross leasable occupied area ("GLOA") divided by gross leasable area ("GLA") at the end of the reporting period. GLOA is the sum of: (1) tenant occupied space under lease and (2) tenants no longer occupying space, but paying rent. GLA does not include space currently under development or not on the market for lease. Base rent per square foot is the weighted average base or minimum rent charge in effect at the end of the reporting period for all tenants that would qualify to be included in occupancy. Tenant sales per square foot is the reported comparable sales for the trailing 12 months divided by the comparable square footage for the same period. Only tenants that have been open for a minimum of 12 months are included in the tenant sales per square foot calculation. Three Months EndedSeptember 30, 2021 Compared to the Three Months EndedSeptember 30, 2020 Summary Financial Results Our financial results have improved as a result of increased visitation as COVID-19 Pandemic travel restrictions have been lifted in some jurisdictions, and social distancing measures and operating capacity limitations have eased. See "COVID-19 Pandemic" for further information. Net revenues for the three months endedSeptember 30, 2021 , were$857 million , compared to$446 million for the three months endedSeptember 30, 2020 . 34 -------------------------------------------------------------------------------- Table of Contents Operating loss was$316 million for the three months endedSeptember 30, 2021 , compared to$523 million for the three months endedSeptember 30, 2020 . Net loss from continuing operations was$594 million for the three months endedSeptember 30, 2021 , compared to$664 million for the three months endedSeptember 30, 2020 . Operating Revenues Our net revenues consisted of the following: Three Months Ended September 30, Percent 2021 2020 Change (Dollars in millions) Casino $ 533$ 281 89.7 % Rooms 100 35 185.7 % Food and beverage 42 31 35.5 % Mall 165 83 98.8 % Convention, retail and other 17 16 6.3 % Total net revenues $ 857$ 446 92.2 % Consolidated net revenues were$857 million for the three months endedSeptember 30, 2021 , an increase of$411 million compared to$446 million for the three months endedSeptember 30, 2020 . The increase is due to a$444 million increase at ourMacao operations, partially offset by a$33 million decrease at Marina Bay Sands. The increase at ourMacao operations was due to increased visitation compared to the three months endedSeptember 30, 2020 ; however, tighter border restrictions were introduced in late July andSeptember 2021 as a result of increased positive COVID-19 cases in the region. The$33 million decrease at Marina Bay Sands was primarily due to lower visitation and the closure of the property fromJuly 22 to August 4, 2021 . Net casino revenues increased$252 million compared to the three months endedSeptember 30, 2020 . The change was driven by a$307 million increase at ourMacao operations due to higher visitation across our properties resulting in increased Non-Rolling Chip drop, Rolling Chip volume and slot handle. Casino revenues at Marina Bay Sands decreased$55 million due to a decrease in Rolling Chip volume and slot handle, driven by the temporary closure of gaming operations at the property fromJuly 22 to August 4, 2021 . The following table summarizes the results of our casino activity: Three Months Ended September 30, 2021 2020 Change (Dollars in millions) Macao Operations: The Venetian Macao Total net casino revenues $ 176$ 32 450.0 % Non-Rolling Chip drop $ 632$ 118 435.6 % Non-Rolling Chip win percentage 27.9 % 22.5 % 5.4 pts Rolling Chip volume $ 781$ 188 315.4 % Rolling Chip win percentage 2.22 % 3.93 % (1.71) pts Slot handle $ 362$ 101 258.4 % Slot hold percentage 3.8 % 4.6 % (0.8) pts The Londoner Macao Total net casino revenues $ 80$ 5 1,500.0 % Non-Rolling Chip drop $ 388$ 29 1,237.9 % Non-Rolling Chip win percentage 20.5 % 19.5 % 1.0 pts Rolling Chip volume$ 1,266 $ - 100.0 % Rolling Chip win percentage 2.04 % - % 2.04 pts Slot handle $ 225$ 36 525.0 % Slot hold percentage 3.8 % 2.9 % 0.9 pts 35
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Three Months Ended
2021 2020 Change
(Dollars in millions)
The Parisian Macao
Total net casino revenues $ 75 $ 26 188.5 %
Non-Rolling Chip drop $ 246 $ 44 459.1 %
Non-Rolling Chip win percentage 22.8 % 19.3 % 3.5 pts
Rolling Chip volume $ 175 $ 335 (47.8) %
Rolling Chip win percentage 16.12 % 6.13 % 9.99 pts
Slot handle $ 153 $ 44 247.7 %
Slot hold percentage 3.1 % 5.9 % (2.8) pts
The Plaza Macao and Four Seasons Macao
Total net casino revenues $ 44 $ 10 340.0 %
Non-Rolling Chip drop $ 269 $ 41 556.1 %
Non-Rolling Chip win percentage 20.0 % 14.6 % 5.4 pts
Rolling Chip volume $ 308 $ 397 (22.4) %
Rolling Chip win percentage 2.40 % 2.84 % (0.44) pts
Slot handle $ 7 $ - 100.0 %
Slot hold percentage 9.7 % - % 9.7 pts
Sands Macao
Total net casino revenues $ 16 $ 11 45.5 %
Non-Rolling Chip drop $ 89 $ 46 93.5 %
Non-Rolling Chip win percentage 17.4 % 17.9 % (0.5) pts
Rolling Chip volume $ 137 $ 129 6.2 %
Rolling Chip win percentage 0.11 % 2.67 % (2.56) pts
Slot handle $ 147 $ 67 119.4 %
Slot hold percentage 3.4 % 3.1 % 0.3 pts
Singapore Operations:
Marina Bay Sands
Total net casino revenues $ 142 $ 197 (27.9) %
Non-Rolling Chip drop $ 638 $ 421 51.5 %
Non-Rolling Chip win percentage 11.7 % 17.8 % (6.1) pts
Rolling Chip volume $ 459 $ 1,477 (68.9) %
Rolling Chip win percentage 4.05 % 4.23 % (0.18) pts
Slot handle $ 2,299 $ 2,636 (12.8) %
Slot hold percentage 4.2 % 4.5 % (0.3) pts
U.S. Operations:
Las Vegas Operating Properties (1)
Total net casino revenues $ 141 $ 59 139.0 %
Table games drop $ 440 $ 425 3.5 %
Table games win percentage 20.7 % 8.0 % 12.7 pts
Slot handle $ 1,057 $ 588 79.8 %
Slot hold percentage 8.7 % 8.4 % 0.3 pts
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(1) The Las Vegas Operating Properties are classified as a discontinued
operation held for sale.
In our experience, average win percentages remain fairly consistent when
measured over extended periods of time with a significant volume of wagers, but
can vary considerably within shorter time periods as a result of the statistical
variances associated with games of chance in which large amounts are wagered.
36
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Room revenues increased $65 million compared to the three months ended September
30, 2020 . The increase was primarily due to increased occupancy rates and
increased RevPAR driven by higher visitation across our properties compared to
the three months ended September 30, 2020 . The following table summarizes the
results of our room activity:
Three Months Ended
2021 2020 Change
(Room revenues in millions)
Macao Operations:
The Venetian Macao
Total room revenues $ 18 $ 3 500.0 %
Occupancy rate 48.4 % 7.6 % 40.8 pts
Average daily room rate (ADR) $ 149 $ 198 (24.7) %
Revenue per available room (RevPAR) $ 72 $ 15 380.0 %
The Londoner Macao
Total room revenues $ 22 $ 2 1,000.0 %
Occupancy rate 38.8 % 4.0 % 34.8 pts
Average daily room rate (ADR) $ 155 $ 129 20.2 %
Revenue per available room (RevPAR) $ 60 $ 5 1,100.0 %
The Parisian Macao
Total room revenues $ 12 $ 4 200.0 %
Occupancy rate 52.5 % 12.7 % 39.8 pts
Average daily room rate (ADR) $ 116 $ 131 (11.5) %
Revenue per available room (RevPAR) $ 61 $ 17 258.8 %
The Plaza Macao and Four Seasons Macao
Total room revenues $ 11 $ 1 1,000.0 %
Occupancy rate 41.3 % 8.7 % 32.6 pts
Average daily room rate (ADR) $ 439 $ 260 68.8 %
Revenue per available room (RevPAR) $ 181 $ 23 687.0 %
Sands Macao
Total room revenues $ 2 $ - N.M.
Occupancy rate 63.2 % 14.5 % 48.7 pts
Average daily room rate (ADR) $ 134 $ 159 (15.7) %
Revenue per available room (RevPAR) $ 85 $ 23 269.6 %
Singapore Operations:
Marina Bay Sands
Total room revenues $ 35 $ 25 40.0 %
Occupancy rate 71.7 % 55.5 % 16.2 pts
Average daily room rate (ADR) $ 235 $ 257 (8.6) %
Revenue per available room (RevPAR) $ 169 $ 143 18.2 %
U.S. Operations:
Las Vegas Operating Properties (1)
Total room revenues $ 142 $ 41 246.3 %
Occupancy rate 96.9 % 43.7 % 53.2 pts
Average daily room rate (ADR) $ 228 $ 174 31.0 %
Revenue per available room (RevPAR) $ 221 $ 76 190.8 %
__________________________
N.M. Not Meaningful
(1)
37
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Food and beverage revenues increased $11 million compared to the three months
ended September 30, 2020 . The increase was due to increased visitation during
the quarter as compared to the three months ended September 30, 2020 .
Mall revenues increased $82 million compared to the three months ended September
30, 2020 . The increase was primarily due to a $62 million decrease in rent
concessions granted to our mall tenants in Macao and Singapore compared to the
three months ended September 30, 2020 , as well as a $27 million increase in
turnover rent. These items were partially offset by a decrease in occupancy
percentages across our Macao mall operations.
For further information related to the financial performance of our malls, see
"Additional Information Regarding our Retail Mall Operations." The following
table summarizes the results of our malls on the Cotai Strip in Macao and in
Singapore :
Three Months Ended
2021 2020 Change
(Mall revenues in millions)
Macao Operations:
Shoppes at Venetian
Total mall revenues $ 49 $ 27 81.5 %
Mall gross leasable area (in square feet) 814,731 812,934 0.2 %
Occupancy 78.7 % 84.9 % (6.2) pts
Base rent per square foot $ 296 $ 302 (2.0) %
Tenant sales per square foot(1) $ 1,368 $ 935 46.3 %
Shoppes at Londoner(2)
Total mall revenues $ 13 $ 9 44.4 %
Mall gross leasable area (in square feet) 520,302 525,497 (1.0) %
Occupancy 60.4 % 85.6 % (25.2) pts
Base rent per square foot $ 138 $ 100 38.0 %
Tenant sales per square foot(1) $ 1,240 $ 476 160.5 %
Shoppes at Parisian
Total mall revenues $ 10 $ 6 66.7 %
Mall gross leasable area (in square feet) 296,322 295,963 0.1 %
Occupancy 76.7 % 82.5 % (5.8) pts
Base rent per square foot $ 146 $ 152 (3.9) %
Tenant sales per square foot(1) $ 683 $ 407 67.8 %
Shoppes at Four Seasons
Total mall revenues $ 52 $ 13 300.0 %
Mall gross leasable area (in square feet) 244,193 242,425 0.7 %
Occupancy 94.3 % 94.3 % - pts
Base rent per square foot $ 550 $ 544 1.1 %
Tenant sales per square foot(1) $ 6,298 $ 2,830 122.5 %
Singapore Operations:
The Shoppes at Marina Bay Sands
Total mall revenues $ 41 $ 28 46.4 %
Mall gross leasable area (in square feet) 622,073 620,213 0.3 %
Occupancy 97.5 % 95.0 % 2.5 pts
Base rent per square foot $ 265 $ 257 3.1 %
Tenant sales per square foot(1) $ 1,480 $ 1,225 20.8 %
__________________________
Note: This table excludes the results of our mall operations at Sands Macao. As a result of the COVID-19 Pandemic, tenants were provided rent concessions during the three months endedSeptember 30, 2021 and 2020. Base rent per square foot presented above excludes the impact of these rent concessions. 38 -------------------------------------------------------------------------------- Table of Contents (1) Tenant sales per square foot is the sum of reported comparable sales for the trailing 12 months divided by the comparable square footage for the same period. (2) The Shoppes at Londoner will feature up to an estimated 600,000 square feet of gross leasable area upon completion of all phases of the renovation, rebranding and expansion to The Londoner Macao. Operating Expenses Our operating expenses consisted of the following:
Three Months Ended
Percent
2021 2020 Change
(Dollars in millions)
Casino $ 451 $ 274 64.6 %
Rooms 40 28 42.9 %
Food and beverage 55 54 1.9 %
Mall 17 13 30.8 %
Convention, retail and other 21 22 (4.5) %
Provision for credit losses 3 24 (87.5) %
General and administrative 223 196 13.8 %
Corporate 64 33 93.9 %
Pre-opening 6 5 20.0 %
Development 13 3 333.3 %
Depreciation and amortization 262 248 5.6 %
Amortization of leasehold interests in land 14 14 - %
Loss on disposal or impairment of assets 4 55 (92.7) %
Total operating expenses $ 1,173 $ 969 21.1 %
Operating expenses were $1.17 billion for the three months ended September 30,
2021 , an increase of $204 million compared to $969 million for the three months
ended September 30, 2020 , primarily driven by a $177 million increase in casino
expenses, due to an increase in gaming taxes as a result of increased gaming
revenues as well as increases in corporate and general and administrative
expenses.
Casino expenses increased $177 million compared to the three months ended
September 30, 2020 . The increase was primarily attributable to a $143 million
increase in gaming taxes due to increased revenues, as previously described.
Room expenses increased $12 million compared to the three months ended September
30, 2020 , driven by increases of $8 million and $4 million at our Macao
properties and Marina Bay Sands , respectively. These increases are consistent
with the increase in room revenue.
Provision for credit losses decreased $21 million compared to the three months
ended September 30, 2020 . The decrease was primarily driven by an increase in
the aging of patron receivables recorded for the period ended September 30, 2020
in connection with the impact of the COVID-19 Pandemic. The amount of this
provision can vary over short periods of time because of factors specific to the
patrons who owe us money from gaming activities. We believe the amount of our
provision for credit losses in the future will depend upon the state of the
economy, our credit standards, our risk assessments and the judgment of our
employees responsible for granting credit.
General and administrative expenses increased $27 million compared to the three
months ended September 30, 2020 , due primarily to increases of $17 million and
$10 million at Marina Bay Sands and our Macao properties, respectively. The
increases were primarily driven by increases in marketing and property
operations costs.
Corporate expenses increased $31 million compared to the three months ended
September 30, 2020 , primarily due to a $19 million increase in payroll and
related costs, driven by no bonus expense recorded during the three months ended
September 30, 2020 . The remainder of the increase is due to increases in
information technology costs and legal fees.
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Pre-opening expenses represent personnel and other costs incurred prior to the
opening of new ventures, which are expensed as incurred.
Development expenses increased $10 million compared to the three months ended
September 30, 2020 , and include the costs associated with our evaluation and
pursuit of new business opportunities, primarily in Florida and Texas , as well
as digital gaming related efforts. Development costs are expensed as incurred.
Loss on disposal or impairment of assets decreased $51 million compared to the
three months ended September 30, 2020 . The losses incurred for the three months
ended September 30, 2021 and September 30, 2020 , were primarily due to asset
disposals and demolition costs related to The Londoner Macao.
Segment Adjusted Property EBITDA
The following table summarizes information related to our segments (see "Item
1 - Financial Statements - Notes to Condensed Consolidated Financial
Statements - Note 10 - Segment Information" for a reconciliation of consolidated
adjusted property EBITDA to net loss from continuing operations):
Three
Months Ended
Percent
2021 2020 Change
(Dollars in millions)
Macao:
The Venetian Macao $ 40 $ (78) (151.3) %
The Londoner Macao (33) (71) (53.5) %
The Parisian Macao 5 (40) (112.5) %
The Plaza Macao and Four Seasons Macao 42 (15) (380.0) %
Sands Macao (21) (26) (19.2) %
Ferry Operations and Other (1) (3) (66.7) %
32 (233) (113.7) %
Marina Bay Sands 15 70 (78.6) %
Consolidated adjusted property EBITDA(1) $ 47 $ (163) (128.8) %
Las Vegas Operating Properties(2) $ 132 $ (40) (430.0) %
__________________________
(1) Consolidated adjusted property EBITDA, which is a non-GAAP financial measure, is used by management as the primary measure of the operating performance of our segments. Consolidated adjusted property EBITDA is net income (loss) from continuing operations before stock-based compensation expense, corporate expense, pre-opening expense, development expense, depreciation and amortization, amortization of leasehold interests in land, gain or loss on disposal or impairment of assets, interest, other income or expense, gain or loss on modification or early retirement of debt and income taxes. Consolidated adjusted property EBITDA is a supplemental non-GAAP financial measure used by management, as well as industry analysts, to evaluate operations and operating performance. In particular, management utilizes consolidated adjusted property EBITDA to compare the operating profitability of its operations with those of its competitors, as well as a basis for determining certain incentive compensation.Integrated Resort companies have historically reported adjusted property EBITDA as a supplemental performance measure to GAAP financial measures. In order to view the operations of their properties on a more stand-alone basis,Integrated Resort companies, includingLas Vegas Sands Corp. , have historically excluded certain expenses that do not relate to the management of specific properties, such as pre-opening expense, development expense and corporate expense, from their adjusted property EBITDA calculations. Consolidated adjusted property EBITDA should not be interpreted as an alternative to income from operations (as an indicator of operating performance) or to cash flows from operations (as a measure of liquidity), in each case, as determined in accordance with GAAP. We have significant uses of cash flow, including capital expenditures, dividend payments, interest payments, debt principal repayments and income taxes, which are not reflected in consolidated adjusted property EBITDA. Not all companies calculate adjusted property EBITDA in the same manner. As a result, our presentation of consolidated adjusted property EBITDA may not be directly comparable to similarly titled measures presented by other companies. (2)The Las Vegas Operating Properties are classified as a discontinued operation held for sale. 40 -------------------------------------------------------------------------------- Table of Contents Adjusted property EBITDA at ourMacao operations increased$265 million compared with the three months endedSeptember 30, 2020 , primarily due to increases in casino, room, food and beverage and mall revenues driven by increased visitation at our properties. Adjusted property EBITDA at Marina Bay Sands decreased$55 million compared to the three months endedSeptember 30, 2020 , primarily due to a decrease in casino revenue due to the aforementioned closure of property fromJuly 22 to August 4, 2021 . Discontinued Operations Adjusted property EBITDA at ourLas Vegas Operating Properties increased$172 million compared to the three months endedSeptember 30, 2020 , primarily due to increased visitation to the property as capacity limits, restrictions on large gatherings and other restrictions were lifted, effectiveJune 1, 2021 , and theLas Vegas Operating Properties operated under pre-pandemic guidelines. Interest Expense The following table summarizes information related to interest expense: Three Months Ended September 30, 2021 2020 (Dollars in millions) Interest cost $ 160$ 139 Less - capitalized interest (3) (5) Interest expense, net $ 157$ 134 Weighted average total debt balance$ 14,574 $ 14,004 Weighted average interest rate 4.4 %
4.0 %
Interest cost increased$21 million compared to the three months endedSeptember 30, 2020 , resulting from an increase in our weighted average total debt balance due to the issuance of the 2026 and 2030 SCL Senior Notes onJune 4, 2020 and draws on the SCL revolver during the three months endedMarch 31, 2021 . Additionally, the weighted average interest rate increased from 4.0% to 4.4% during the three months endedSeptember 30, 2021 , as a result of the expiration of interest rate swaps inAugust 2020 related to the SCL senior notes that were issued in 2018. Other Factors Affecting Earnings Loss on early retirement of debt of$137 million for the three months endedSeptember 30, 2021 was due to the issuance of new SCL senior notes, which funds were utilized to repay the outstanding borrowings under the SCL senior notes due in 2023. The loss on early retirement of debt was comprised of a$131 million make-whole premium payment to retire the 2023 senior notes and$6 million of unamortized deferred financing costs (see "Item 1 - Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 3 - Long-Term Debt - SCL Senior Notes"). Other expense was$12 million for the three months endedSeptember 30, 2021 , compared to$5 million for the three months endedSeptember 30, 2020 . The change from prior period was due primarily to a$17 million increase in foreign transaction losses driven by the impact of foreign currency exchange rate increase of 235 basis points on theU.S. dollar denominated debt held by SCL, offset by a$7 million increase in foreign currency transaction gains driven by the impact of the foreign currency exchange rate increase of 404 basis points onSingapore dollar denominated intercompany debt reported inU.S. dollars. Our income tax benefit was$27 million on a loss before income taxes of$621 million for the three months endedSeptember 30, 2021 , resulting in a (4.3)% effective income tax rate. This compares to a 0.8% effective income tax rate for the three months endedSeptember 30, 2020 . The income tax benefit for the three months endedSeptember 30, 2021 , reflects a 17% statutory tax rate on ourSingapore operations and a 21% corporate income tax on our domestic operations. Our operations inMacao are subject to a 12% statutory income tax rate, but in connection with the 35% gaming tax, our subsidiaries inMacao and their peers receive an income tax exemption on gaming operations throughJune 2022 . 41 -------------------------------------------------------------------------------- Table of Contents The net loss attributable to our noncontrolling interests was$127 million for the three months endedSeptember 30, 2021 , compared to$166 million for the three months endedSeptember 30, 2020 . These amounts are related to the noncontrolling interest of SCL. Nine Months EndedSeptember 30, 2021 Compared to the Nine Months EndedSeptember 30, 2020 Summary Financial Results Our financial results have slightly improved as a result of increased visitation as travel restrictions connected with the COVID-19 Pandemic and social distancing measures and operating capacity limitations have eased. Our gaming operations remained open during the nine months endedSeptember 30, 2021 , with the exception of our gaming operations inSingapore , which closed for short intervals, compared to the same period in 2020 in which gaming operations inMacao andSingapore were suspended at various times throughout the period. See "COVID-19 Pandemic" for further information. Net revenues for the nine months endedSeptember 30, 2021 , were$3.23 billion , compared to$1.93 billion for the nine months endedSeptember 30, 2020 . Operating loss was$551 million compared to$1.27 billion for the nine months endedSeptember 30, 2020 . Net loss from continuing operations was$1.15 billion for the nine months endedSeptember 30, 2021 , compared to$1.60 billion for the nine months endedSeptember 30, 2020 . Operating Revenues Our net revenues consisted of the following: Nine Months Ended September 30, Percent 2021 2020 Change (Dollars in millions) Casino $ 2,241$ 1,352 65.8 % Rooms 311 181 71.8 % Food and beverage 148 101 46.5 % Mall 469 228 105.7 % Convention, retail and other 57 63 (9.5) % Total net revenues $ 3,226$ 1,925 67.6 % Consolidated net revenues were$3.23 billion for the nine months endedSeptember 30, 2021 , an increase of$1.30 billion compared to$1.93 billion for the nine months endedSeptember 30, 2020 , due to increases of$1.22 billion and$86 million at ourMacao operations andMarina Bay Sands , respectively. The increases were driven by increased visitation, as well as temporary closures ofMarina Bay Sands fromApril 7, 2020 throughJune 18, 2020 , with gaming operations closed throughJune 30, 2020 , and ourMacao gaming operations fromFebruary 5, 2020 toFebruary 19, 2020 , with the exception of The Londoner Macao, which resumed onFebruary 27, 2020 , and with the hotel facilities temporarily closed during the casino suspension. 42 -------------------------------------------------------------------------------- Table of Contents Net casino revenues increased$889 million compared to the nine months endedSeptember 30, 2020 , driven by increased visitation, as well as ourMacao properties andMarina Bay Sands being closed for a portion of the nine months endedSeptember 30, 2020 . Revenues at ourMacao operations andMarina Bay Sands increased$864 million and$25 million , respectively, driven by increases in Non-Rolling Chip drop, Rolling Chip volume and slot handle. The following table summarizes the results of our casino activity:
Nine Months Ended
2021 2020 Change
(Dollars in millions)
Macao Operations:
The Venetian Macao
Total net casino revenues $ 749 $ 288 160.1 %
Non-Rolling Chip drop $ 2,539 $ 951 167.0 %
Non-Rolling Chip win percentage 27.6 % 26.4 % 1.2 pts
Rolling Chip volume $ 3,522 $ 2,566 37.3 %
Rolling Chip win percentage 4.15 % 3.03 % 1.12 pts
Slot handle $ 1,376 $ 597 130.5 %
Slot hold percentage 3.8 % 4.3 % (0.5) pts
The Londoner Macao
Total net casino revenues $ 304 $ 129 135.7 %
Non-Rolling Chip drop $ 1,347 $ 590 128.3 %
Non-Rolling Chip win percentage 21.1 % 21.7 % (0.6) pts
Rolling Chip volume $ 2,915 $ 167 1,645.5 %
Rolling Chip win percentage 3.39 % 5.85 % (2.46) pts
Slot handle $ 709 $ 413 71.7 %
Slot hold percentage 3.8 % 4.2 % (0.4) pts
The Parisian Macao
Total net casino revenues $ 203 $ 111 82.9 %
Non-Rolling Chip drop $ 903 $ 440 105.2 %
Non-Rolling Chip win percentage 22.0 % 23.3 % (1.3) pts
Rolling Chip volume $ 321 $ 2,607 (87.7) %
Rolling Chip win percentage 8.53 % 1.65 % 6.88 pts
Slot handle $ 620 $ 495 25.3 %
Slot hold percentage 3.1 % 3.7 % (0.6) pts
The Plaza Macao and Four Seasons Macao
Total net casino revenues $ 233 $ 101 130.7 %
Non-Rolling Chip drop $ 874 $ 270 223.7 %
Non-Rolling Chip win percentage 21.8 % 25.9 % (4.1) pts
Rolling Chip volume $ 2,273 $ 2,586 (12.1) %
Rolling Chip win percentage 5.10 % 2.75 % 2.35 pts
Slot handle $ 29 $ 37 (21.6) %
Slot hold percentage 5.9 % 4.7 % 1.2 pts
43--------------------------------------------------------------------------------
Table of Contents
Nine Months Ended September 30,
2021 2020 Change
(Dollars in millions)
Sands Macao
Total net casino revenues $ 84 $ 80 5.0 %
Non-Rolling Chip drop $ 341 $ 324 5.2 %
Non-Rolling Chip win percentage 16.4 % 18.9 % (2.5) pts
Rolling Chip volume $ 953 $ 855 11.5 %
Rolling Chip win percentage 4.49 % 3.19 % 1.30 pts
Slot handle $ 466 $ 420 11.0 %
Slot hold percentage 3.4 % 3.1 % 0.3 pts
Singapore Operations:
Marina Bay Sands
Total net casino revenues $ 668 $ 643 3.9 %
Non-Rolling Chip drop $ 1,865 $ 1,524 22.4 %
Non-Rolling Chip win percentage 16.3 % 19.3 % (3.0) pts
Rolling Chip volume $ 2,583 $ 8,239 (68.6) %
Rolling Chip win percentage 5.52 % 3.63 % 1.89 pts
Slot handle $ 9,209 $ 5,600 64.4 %
Slot hold percentage 4.2 % 4.4 % (0.2) pts
U.S. Operations:
Las Vegas Operating Properties (1)
Total net casino revenues $ 304 $ 175 73.7 %
Table games drop $ 1,137 $ 969 17.3 %
Table games win percentage 16.0 % 13.9 % 2.1 pts
Slot handle $ 2,683 $ 1,382 94.1 %
Slot hold percentage 8.5 % 7.9 % 0.6 pts
__________________________
(1) The Las Vegas Operating Properties are classified as a discontinued
operation held for sale. Due to statewide closure of non-essential services as a
result of the COVID-19 Pandemic, the property temporarily closed on March 18,
2020 , and reopened on June 4, 2020 .
44
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Room revenues increased $130 million compared to the nine months ended September
30, 2020 . The increase was primarily due to increased occupancy rates and
increased RevPAR driven by higher visitation across our properties, as well as
our properties being closed for a portion of the nine months ended September 30,
2020 . The following table summarizes the results of our room activity:
Nine Months Ended
2021 2020 Change
(Room revenues in millions)
Macao Operations:
The Venetian Macao
Total room revenues $ 61 $ 25 144.0 %
Occupancy rate 51.5 % 17.7 % 33.8 pts
Average daily room rate (ADR) $ 155 $ 232 (33.2) %
Revenue per available room (RevPAR) $ 80 $ 41 95.1 %
The Londoner Macao
Total room revenues $ 69 $ 29 137.9 %
Occupancy rate 39.9 % 16.7 % 23.2 pts
Average daily room rate (ADR) $ 158 $ 171 (7.6) %
Revenue per available room (RevPAR) $ 63 $ 29 117.2 %
The Parisian Macao
Total room revenues $ 41 $ 18 127.8 %
Occupancy rate 52.6 % 18.5 % 34.1 pts
Average daily room rate (ADR) $ 118 $ 158 (25.3) %
Revenue per available room (RevPAR) $ 62 $ 29 113.8 %
The Plaza Macao and Four Seasons Macao
Total room revenues $ 34 $ 6 466.7 %
Occupancy rate 44.5 % 19.9 % 24.6 pts
Average daily room rate (ADR) $ 439 $ 321 36.8 %
Revenue per available room (RevPAR) $ 195 $ 64 204.7 %
Sands Macao
Total room revenues $ 7 $ 3 133.3 %
Occupancy rate 68.6 % 28.2 % 40.4 pts
Average daily room rate (ADR) $ 138 $ 173 (20.2) %
Revenue per available room (RevPAR) $ 95 $ 49 93.9 %
Singapore Operations:
Marina Bay Sands
Total room revenues $ 99 $ 100 (1.0) %
Occupancy rate 67.4 % 69.1 % (1.7) pts
Average daily room rate (ADR) $ 228 $ 361 (36.8) %
Revenue per available room (RevPAR) $ 154 $ 250 (38.4) %
U.S. Operations:
Las Vegas Operating Properties (1)
Total room revenues $ 294 $ 177 66.1 %
Occupancy rate 76.2 % 61.2 % 15.0 pts
Average daily room rate (ADR) $ 209 $ 230 (9.1) %
Revenue per available room (RevPAR) $ 160 $ 141 13.5 %
__________________________
(1)The Las Vegas Operating Properties are classified as a discontinued operation held for sale. Due to statewide closure of non-essential services as a result of the COVID-19 Pandemic, the property temporarily closed onMarch 18, 2020 , and reopened onJune 4, 2020 . 45 -------------------------------------------------------------------------------- Table of Contents Food and beverage revenues increased$47 million compared to the nine months endedSeptember 30, 2020 . The increase was mainly due to increases of$34 million and$13 million at ourMacao properties andMarina Bay Sands , respectively. The increase was due to increased visitation during the nine months endedSeptember 30, 2021 . Mall revenues increased$241 million compared to the nine months endedSeptember 30, 2020 . The increase was primarily due to a$195 million decrease in rent concessions granted to our mall tenants inMacao andSingapore compared to the nine months endedSeptember 30, 2020 , as well as a$55 million increase in turnover rent and$6 million in government grants. These items were partially offset by a decrease in occupancy percentages for ourMacao mall operations. For further information related to the financial performance of our malls, see "Additional Information Regarding our Retail Mall Operations." The following table summarizes the results of our malls on the Cotai Strip inMacao and inSingapore :
Nine Months Ended September 30,(1)
2021 2020 Change
(Mall revenues in millions)
Macao Operations:
Shoppes at Venetian
Total mall revenues $ 144 $ 74 94.6 %
Mall gross leasable area (in square feet) 814,731 812,934 0.2 %
Occupancy 78.7 % 84.9 % (6.2) pts
Base rent per square foot $ 296 $ 302 (2.0) %
Tenant sales per square foot(2) $ 1,368 $ 935 46.3 %
Shoppes at Londoner(3)
Total mall revenues $ 42 $ 25 68.0 %
Mall gross leasable area (in square feet) 520,302 525,497 (1.0) %
Occupancy 60.4 % 85.6 % (25.2) pts
Base rent per square foot $ 138 $ 100 38.0 %
Tenant sales per square foot(2) $ 1,240 $ 476 160.5 %
Shoppes at Parisian
Total mall revenues $ 30 $ 16 87.5 %
Mall gross leasable area (in square feet) 296,322 295,963 0.1 %
Occupancy 76.7 % 82.5 % (5.8) pts
Base rent per square foot $ 146 $ 152 (3.9) %
Tenant sales per square foot(2) $ 683 $ 407 67.8 %
Shoppes at Four Seasons
Total mall revenues $ 125 $ 39 220.5 %
Mall gross leasable area (in square feet) 244,193 242,425 0.7 %
Occupancy 94.3 % 94.3 % - pts
Base rent per square foot $ 550 $ 544 1.1 %
Tenant sales per square foot(2) $ 6,298 $ 2,830 122.5 %
Singapore Operations:
The Shoppes at Marina Bay Sands
Total mall revenues $ 127 $ 73 74.0 %
Mall gross leasable area (in square feet) 622,073 620,213 0.3 %
Occupancy 97.5 % 95.0 % 2.5 pts
Base rent per square foot $ 265 $ 257 3.1 %
Tenant sales per square foot(2) $ 1,480 $ 1,225 20.8 %
__________________________
Note: This table excludes the results of our mall operations at Sands Macao. As a result of the COVID-19 Pandemic, tenants were provided rent concessions during the nine months endedSeptember 30, 2021 and 2020. Base rent per square foot presented above excludes the impact of these rent concessions. 46 -------------------------------------------------------------------------------- Table of Contents (1) As GLA, occupancy, base rent per square foot and tenant sales per square foot are calculated as ofSeptember 30, 2021 and 2020, they are identical to the summary presented herein for the three months endedSeptember 30, 2021 and 2020, respectively. (2) Tenant sales per square foot is the sum of reported comparable sales for the trailing 12 months divided by the comparable square footage for the same period. (3) The Shoppes at Londoner will feature up to an estimated 600,000 square feet of gross leasable area upon completion of all phases of the renovation, rebranding and expansion to The Londoner Macao. Convention, retail and other revenues decreased$6 million compared to the nine months endedSeptember 30, 2020 , due primarily toMarina Bay Sands , driven by lower Skypark and convention revenue due to the COVID-19 Pandemic described above. Operating Expenses Our operating expenses consisted of the following: Nine Months Ended September 30, Percent 2021 2020 Change (Dollars in millions) Casino $ 1,603$ 1,109 44.5 % Rooms 124 101 22.8 % Food and beverage 186 177 5.1 % Mall 48 41 17.1 % Convention, retail and other 62 79 (21.5) % Provision for credit losses 9 52 (82.7) % General and administrative 667 615 8.5 % Corporate 169 145 16.6 % Pre-opening 15 14 7.1 % Development 59 18 227.8 % Depreciation and amortization 775 745 4.0 % Amortization of leasehold interests in land 42 41 2.4 % Loss on disposal or impairment of assets 18 62 (71.0) % Total operating expenses $ 3,777$ 3,199 18.1 % Operating expenses were$3.78 billion for the nine months endedSeptember 30, 2021 , an increase of$578 million compared to$3.20 billion for the nine months endedSeptember 30, 2020 . The increase was primarily driven by a$494 million increase in casino expenses, as well as increases in general and administrative expenses and development expenses. Casino expenses increased$494 million compared to the nine months endedSeptember 30, 2020 . The increase was primarily attributable to an increase of$436 million in gaming taxes due to increased casino revenues, as previously described. Room expenses increased$23 million compared to the nine months endedSeptember 30, 2020 . The increase was driven by increases of$15 million and$8 million at ourMacao properties andMarina Bay Sands , respectively. Food and beverage expenses increased$9 million compared to the nine months endedSeptember 30, 2020 , due to increases of$5 million and$4 million at ourMacao properties andMarina Bay Sands , respectively. These increases are consistent with the increase in food and beverage revenues. Convention, retail and other expenses decreased$17 million compared to the nine months endedSeptember 30, 2020 , driven by a$11 million decrease related to the closure of the ferry terminals inFebruary 2020 . Additionally, convention, retail and other expenses at ourMacao properties decreased$6 million , primarily as a result of the cancellation of MICE and entertainment events due to the COVID-19 Pandemic. The provision for credit losses was$9 million for the nine months endedSeptember 30, 2021 , compared to$52 million for the nine months endedSeptember 30, 2020 . The decrease was primarily due to an increased level of 47 -------------------------------------------------------------------------------- Table of Contents provision recorded during the nine months endedSeptember 30, 2020 , due to the aging of patron receivables in connection with the impact of the COVID-19 Pandemic. The amount of this provision can vary over short periods of time because of factors specific to the patronswho owe us money from gaming activities. We believe the amount of our provision for credit losses in the future will depend upon the state of the economy, our credit standards, our risk assessments and the judgment of our employees responsible for granting credit. General and administrative expenses increased$52 million compared to the nine months endedSeptember 30, 2020 , due to increases of$34 million and$18 million at Marina Bay Sands and ourMacao properties, respectively. The increases were primarily driven by increases in marketing, payroll and property operations costs. Corporate expenses increased$24 million compared to the to the nine months endedSeptember 30, 2020 , primarily due to a$23 million increase in payroll and related costs, driven by no bonus expense recorded during the nine months endedSeptember 30, 2020 . Pre-opening expenses represent personnel and other costs incurred prior to the opening of new ventures, which are expensed as incurred. Development expenses increased$41 million compared to the nine months endedSeptember 30, 2020 , and include the costs associated with our evaluation and pursuit of new business opportunities, primarily inFlorida andTexas , as well as our digital gaming related efforts. Development costs are expensed as incurred. Loss on disposal or impairment of assets decreased$44 million compared to the nine months endedSeptember 30, 2020 , The losses incurred for the nine months endedSeptember 30, 2021 andSeptember 30, 2020 , were primarily due to asset disposals and demolition costs related to The Londoner Macao. Segment Adjusted Property EBITDA The following table summarizes information related to our segments (see "Item 1 - Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 10 - Segment Information" for a reconciliation of consolidated adjusted property EBITDA to net loss):
Nine Months Ended
Percent
2021 2020 Change
(Dollars in millions)
Macao:
The Venetian Macao $ 230 $ (126) (282.5) %
The Londoner Macao (61) (150) (59.3) %
The Parisian Macao (3) (124) (97.6) %
The Plaza Macao and Four Seasons Macao 156 (5) (3,220.0) %
Sands Macao (52) (58) (10.3) %
Ferry Operations and Other (6) (15) (60.0) %
264 (478) (155.2) %
Marina Bay Sands 271 239 13.4 %
Consolidated adjusted property EBITDA $ 535 $ (239) (323.8) %
Las Vegas Operating Properties (1) $ 136 $ (74) (283.8) %
____________________
(1)The Las Vegas Operating Properties are classified as a discontinued operation held for sale. Due to statewide closure of non-essential services as a result of the COVID-19 Pandemic, the property temporarily closed onMarch 18, 2020 , and reopened onJune 4, 2020 . Adjusted property EBITDA at ourMacao operations increased$742 million compared to the nine months endedSeptember 30, 2020 , primarily due to increased casino, mall and room operations driven by increased visitation. 48 -------------------------------------------------------------------------------- Table of Contents Adjusted property EBITDA at Marina Bay Sands increased$32 million compared to the nine months endedSeptember 30, 2020 . The increase was primarily due to increased casino and mall operations driven by increased visitation. Discontinued Operations Adjusted property EBITDA at ourLas Vegas Operating Properties increased$210 million compared to the nine months endedSeptember 30, 2020 . The increase was primarily due to increased casino and room operations driven by increased visitation to the property as capacity limits, restrictions on large gatherings and other restrictions were lifted, effectiveJune 1, 2021 , and theLas Vegas Operating Properties operated under pre-pandemic guidelines. Interest Expense The following table summarizes information related to interest expense: Nine Months Ended September 30, 2021 2020 (Dollars in millions) Interest cost $ 480$ 389 Less - capitalized interest (11) (13) Interest expense, net $ 469$ 376 Weighted average total debt balance$ 14,509 $ 13,190 Weighted average interest rate 4.4 %
3.9 %
Interest cost increased$91 million compared to the nine months endedSeptember 30, 2020 , resulting from an increase in our weighted average total debt balance due to the issuance of the 2026 and 2030 SCL Senior Notes onJune 4, 2020 , and draws on the SCL revolver during the three months endedMarch 31, 2021 . Additionally, the weighted average interest rate increased from 3.9% to 4.4% during the nine months endedSeptember 30, 2021 as a result of the expiration of interest rate swaps inAugust 2020 related to the SCL senior notes that were issued in 2018. Other Factors Affecting Earnings Loss on early retirement of debt of$137 million for the nine months endedSeptember 30, 2021 , was due to the issuance of new SCL senior notes, which funds were utilized to repay the outstanding borrowings under the senior notes due in 2023. The loss on early retirement of debt was comprised of a$131 million make-whole premium payment to retire the 2023 senior notes and$6 million of unamortized deferred financing costs written-off (see "Item 1 - Financial Statements - Notes to Condensed Consolidated Financial Statements - Note 3 - Long-Term Debt - SCL Senior Notes"). Other expense was$19 million for the nine months endedSeptember 30, 2021 , compared to other income of$29 million for the nine months endedSeptember 30, 2020 . The change from prior period was due primarily to a$50 million increase in foreign transaction losses driven by the impact of a foreign currency exchange rate increase of 732 basis points on theU.S. dollar denominated debt held by SCL. Our income tax benefit was$19 million on a loss before income taxes of$1.17 billion for the nine months endedSeptember 30, 2021 , resulting in a (1.6)% effective income tax rate. This compares to a (0.2)% effective income tax rate for the nine months endedSeptember 30, 2020 . The income tax benefit for the nine months endedSeptember 30, 2021 , reflects a 17% statutory tax rate on ourSingapore operations, a 21% corporate income tax on our domestic operations and a zero percent tax rate on ourMacao gaming operations due to our income tax exemption inMacao . OurU.S. operations recorded tax benefits associated with the pre-tax book losses, primarily related toU.S. corporate and interest expense incurred during the nine months endedSeptember 30, 2021 . OurU.S. tax benefit was partially offset by a valuation allowance recorded on certainU.S. foreign tax credits, which we no longer expect to utilize due to lower royalty income resulting from a decrease in revenues fromMacao andSingapore compared to prior estimates. The net loss attributable to our noncontrolling interests was$241 million for the nine months endedSeptember 30, 2021 , compared to$381 million for the nine months endedSeptember 30, 2020 . These amounts were primarily related to the noncontrolling interest of SCL. 49 -------------------------------------------------------------------------------- Table of Contents Additional Information Regarding our Retail Mall Operations We own and operate retail malls at ourIntegrated Resorts at The Venetian Macao, ThePlaza Macao and Four Seasons Macao, The Londoner Macao, The Parisian Macao andMarina Bay Sands . Management believes being in the retail mall business and, specifically, owning some of the largest retail properties inAsia will provide meaningful value for us, particularly as the retail market inAsia continues to grow. Our malls are designed to complement our other unique amenities and service offerings provided by ourIntegrated Resorts . Our strategy is to seek out desirable tenants that appeal to our patrons and provide a wide variety of shopping options. We generate our mall revenues primarily from leases with tenants through minimum base rents, overage rents, and reimbursements for common area maintenance ("CAM") and other expenditures. The following tables summarize the results of our mall operations on the Cotai Strip and at Marina Bay Sands for the three and nine months endedSeptember 30, 2021 and 2020: Shoppes at Shoppes at Four Shoppes at Shoppes at The Shoppes at Marina Venetian Seasons Londoner Parisian Bay Sands (In millions) For the three months endedSeptember 30, 2021 Mall revenues: Minimum rents(1)$ 45 $ 29 $ 8 $ 7 $ 35 Overage rents 4 20 3 1 6 Rent concessions(2) (8) - (1) (1) (6) Total overage rents, rent concessions and other (4) 20 2 - - CAM, levies and direct recoveries 8 3 3 3 6 Total mall revenues 49 52 13 10 41 Mall operating expenses: Common area maintenance 3 1 1 1 4 Marketing and other direct operating expenses 1 1 1 1 1 Mall operating expenses 4 2 2 2 5 Property taxes(4) - - - - 2 Mall-related expenses(5) $ 4 $ 2 $ 2 $ 2 $ 7 For the three months endedSeptember 30, 2020 Mall revenues: Minimum rents(1)$ 49 $ 31 $ 9 $ 9 $ 34 Overage rents 3 - - - 2 Rent concessions(2) (32) (20) (5) (6) (13) Total overage rents and rent concessions (29) (20) (5) (6) (11) CAM, levies and direct recoveries 7 2 5 3 5 Total mall revenues 27 13 9 6 28 Mall operating expenses: Common area maintenance 2 1 2 1 3 Marketing and other direct operating expenses 1 - - - 1 Mall operating expenses 3 1 2 1 4 Property taxes(4) - - - - 1 Recovery of credit losses (1) - - (1) - Mall-related expenses(5) $ 2 $ 1 $ 2 $ - $ 5 50
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Shoppes at
Shoppes at Four Shoppes at Shoppes at The Shoppes at Marina
Venetian Seasons Londoner Parisian Bay Sands
(In millions)
For the nine months ended September 30,
2021
Mall revenues:
Minimum rents(1) $ 137 $ 91 $ 22 $ 23 $ 108
Overage rents 10 28 13 3 14
Rent concessions(2) (25) (1) (3) (4) (20)
Other(3) - - - - 6
Total overage rents and rent
concessions (15) 27 10 (1) -
CAM, levies and direct recoveries 22 7 10 8 19
Total mall revenues 144 125 42 30 127
Mall operating expenses:
Common area maintenance 9 4 5 3 12
Marketing and other direct operating
expenses 4 2 2 2 4
Mall operating expenses 13 6 7 5 16
Property taxes(4) 1 - - - 5
Provision for (recovery of) credit
losses (1) - - 3 -
Mall-related expenses(5) $ 13 $ 6 $ 7 $ 8 $ 21
For the nine months ended September 30,
2020
Mall revenues:
Minimum rents(1) $ 146 $ 91 $ 28 $ 27 $ 102
Overage rents 4 1 2 - 5
Rent concessions(2) (100) (60) (19) (19) (48)
Total overage rents and rent
concessions (96) (59) (17) (19) (43)
CAM, levies and direct recoveries 24 7 14 8 14
Total mall revenues 74 39 25 16 73
Mall operating expenses:
Common area maintenance 8 3 5 3 9
Marketing and other direct operating
expenses 4 1 1 2 3
Mall operating expenses 12 4 6 5 12
Property taxes(4) 1 - - - 2
Provision for credit losses - - 1 - -
Mall-related expenses(5) $ 13 $ 4 $ 7 $ 5 $ 14
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Note: These tables exclude the results of our mall operations at Sands Macao.
(1)Minimum rents include base rents and straight-line adjustments of base rents.
(2)Rent concessions were provided to tenants as a result of the COVID-19
Pandemic and the impact on mall operations.
(3)The amount for Marina Bay Sands of $6 million related to a grant provided by
the Singapore government to lessors to support small and medium enterprises
impacted by the COVID-19 Pandemic in connection with their rent obligations.
(4)Commercial property that generates rental income is exempt from property tax
for the first six years for newly constructed buildings in Cotai. Each property
is also eligible to obtain an additional six-year exemption, provided certain
qualifications are met. To date, The Venetian Macao, The Plaza Macao and Four
Seasons Macao, The Londoner Macao and The Parisian Macao have obtained a second
exemption. The exemption for The Venetian Macao and The Plaza Macao and Four
Seasons Macao expired in August 2019 and August 2020 , respectively, and the
exemption for The Londoner Macao and The Parisian Macao will be expiring in
December 2027 and September 2028 , respectively.
(5)Mall-related expenses consist of CAM, marketing fees and other direct
operating expenses, property taxes and provision for credit losses, but excludes
depreciation and amortization and general and administrative costs.
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It is common in the mall operating industry for companies to disclose mall net
operating income ("NOI") as a useful supplemental measure of a mall's operating
performance. Because NOI excludes general and administrative expenses, interest
expense, impairment losses, depreciation and amortization, gains and losses from
property dispositions, allocations to noncontrolling interests and provision for
income taxes, it provides a performance measure that, when compared year over
year, reflects the revenues and expenses directly associated with owning and
operating commercial real estate properties and the impact on operations from
trends in occupancy rates, rental rates and operating costs.
In the tables above, we believe taking total mall revenues less mall-related
expenses provides an operating performance measure for our malls. Other mall
operating companies may use different methodologies for deriving mall-related
expenses. As such, this calculation may not be comparable to the NOI of other
mall operating companies.
Development Projects
We regularly evaluate opportunities to improve our product offerings, such as
refreshing our meeting and convention facilities, suites and rooms, retail
malls, restaurant and nightlife mix and our gaming areas, as well as other
anticipated revenue-generating additions to our Integrated Resorts .
Macao
Our construction work on the conversion of Sands Cotai Central into the new
destination Integrated Resort , The Londoner Macao, is progressing. This project
is being delivered in phases, which started in 2020 and will continue throughout
2021. Upon completion, The Londoner Macao will feature new attractions and
features internally and externally from London , including some of London's most
recognizable landmarks, such as the Houses of Parliament and the Elizabeth Tower
(commonly known as "Big Ben"). The Londoner Macao Hotel opened in January 2021
with 594 London-themed suites, including 14 exclusive Suites by David Beckham .
The Integrated Resort also features Londoner Court, which opened on September
16, 2021 and includes approximately 370 luxury suites. The expansion of our
retail offerings, which have been rebranded as Shoppes at Londoner, is
progressing.
We anticipate the total costs associated with The Londoner Macao development
project described above and the completed The Grand Suites at Four Seasons to be
approximately $2.2 billion , of which $1.9 billion has been spent as of September
30, 2021 . The ultimate costs and completion dates for The Londoner Macao
development are subject to change as we complete the project. We expect to fund
our developments through a combination of cash on hand, borrowings from the 2018
SCL Credit Facility and surplus from operating cash flows.
Singapore
In April 2019 , our wholly owned subsidiary, Marina Bay Sands Pte. Ltd. ("MBS")
and the Singapore Tourism Board (the "STB") entered into a development agreement
(the "Development Agreement") pursuant to which MBS will construct a
development, the MBS Expansion Project , which will include a hotel tower with a
rooftop attraction, convention and meeting facilities and a state-of-the-art
live entertainment arena with approximately 15,000 seats. The Development
Agreement provides for a total project cost of approximately SGD 4.5 billion
(approximately $3.31 billion at exchange rates in effect on September 30, 2021 ).
The amount of the total project cost will be finalized as we complete design and
development and begin construction. In connection with the Development
Agreement, MBS entered into a lease with the STB for the parcels of land
underlying the project. In April 2019 and in connection with the lease, MBS
provided various governmental agencies in Singapore the required premiums,
deposits, stamp duty, goods and services tax and other fees in an aggregate
amount of approximately SGD 1.54 billion (approximately $1.14 billion at
exchange rates in effect at the time of the transaction). We amended our 2012
Singapore Credit Facility to provide for the financing of the development and
construction costs, fees and other expenses related to the MBS Expansion Project
pursuant to the Development Agreement. On June 18, 2020 , we further amended the
2012 Singapore Credit Facility, which, among other things, extended to June 30,
2021 , the deadline for delivering the construction cost estimate and the
construction schedule for the MBS Expansion Project . On September 7, 2021 , we
amended the 2012 Singapore Credit Facility, which further extended this deadline
to March 31, 2022 . We are in the process of reviewing the budget and timing of
the MBS expansion based on the impact of the COVID-19 Pandemic and other
factors. If we do not meet the March 31, 2022 deadline, we will not
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Table of Contents be permitted to make further draws on the Singapore Delayed Draw Term Facility until these items are delivered to lenders. Other We continue to evaluate additional development projects in each of our markets and pursue new development opportunities globally. Liquidity and Capital Resources Cash Flows - Summary Our cash flows consisted of the following:
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