Macau and Singapore Demand Remain Strong Amid a Tremulous Macro Environment

Las Vegas Sands' Macao resorts (66% of 2019 EBITDA) is seeing strong revenue growth in 2023 after China's removal of COVID-19 restrictions in early January. We continue to think Las Vegas Sands and the Macau gaming enclave are also well positioned for long-term growth. Not only does Sands hold a dominant mass and nongaming position on the attractive Cotai Strip, but we think it will reinvest proceeds from the $6.25 billion sale of its Vegas assets (closed in early 2022) in its Asian assets, strengthening the brand locally. Meanwhile, Sands' position in the profitable Singapore gaming market (34% of 2019 EBITDA), where a duopoly remains in place through 2030, is buoyed by the company expanding its presence with the renovation of its existing towers in 2023-25 and eventual development of a fourth tower, which we think can open in 2029, solidifying our view of the firm's long-term growth.