Las Vegas Sands Cuts Dividends, Affirms Expansion Plans and Possible Purchases

Las Vegas Sands last week cancelled its dividend program but said it was continuing expansion plans in Macau and Singapore, and for the first time CEO Sheldon Adelson (l.) said he would be looking for resort acquisitions to add to its portfolio.

Las Vegas Sands Cuts Dividends, Affirms Expansion Plans and Possible Purchases

The impact of the coronavirus has closed integrated resorts owned by Las Vegas Sands in Las Vegas, Macau and Singapore. As a result, said Chairman and CEO Sheldon Adelson, the company will cancel its dividend program, which last year yielded $2.37 billion—$1.22 billion for Adelson himself, as the company’s largest shareholder.

“I am known for the phrase, ‘Yay dividends!,’ and I assure you that it is still my mantra,” Adelson said in a statement. “As I look forward to the day — soon let us hope — when this terrible virus is no longer of concern — I see many strategic opportunities for our company precisely because of our financial strength.”

Adelson said the company would continue its plans to transform Sands Cotai Central in Macau into the Londoner, project estimated at around $2 billion, and an addition, including a third hotel tower, to Marina Bay Sands in Singapore, with a price tag of $3.3 billion.

Most surprisingly, however, is the LVS attention to buying existing casino resorts for the first time in its history. LVS has always been a developer and has never bought an existing property. Adelson says he’s looking to take advantage of discounts brought on by the virus. He’s targeting large luxury casino resorts in tourist destinations that have MICE possibilities, mirroring the current LVS properties.