SMRT

[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