Thank you for sharing!

Your article was successfully shared with the contacts you provided.

VAIL, CO-Vail Resorts’ record-breaking results for its fiscal year got a big boost from its real estate holdings, according to the publicly traded company. And there is more good real estate news on the horizon, the company’s CEO reports. According to the company’s latest earnings report, net income for the fiscal year were $23.1 million, or 64 cents per diluted share, compared to a net loss of $6 million, or a loss of 17 cents per diluted share, for the same period last year.

Revenues for the fiscal year are $540.9 million, a $39.9 million or 8%, increase from the $501 million posted during the same period last year. Mountain expense increased $23 million, or 6.2%, to $391.9 million. Lodging revenue for the fiscal year grew $15.9 million, or 8.8%, to $196.4 million. Lodging expense increased $11.5 million, or 6.9%, to $177.5 million. Resort revenue, the combination of mountain and lodging revenue, rose $55.8 million, or 8.2%, to $737.2 million, and resort expense increased 6.4% to $569.4 million, up $34.5 million.

Real estate revenue for the fiscal year grew $27.7 million to $72.8 million. Real estate expense increased $41.5 million, as expected, to $58.3 million due primarily to the timing and mix of real estate projects, as well as the previously announced $15.1 million credit to operating expense in fiscal 2004 associated with the Smith Creek Metropolitan District (SCMD) bond payoff. Total revenue increased $83.4 million, or 11.5%, to $810 million, and total segment operating expense increased $76 million, or 13.8%, to $627.6 million. Income from operations for the fiscal year improved $6.5 million, or 7.9%, to $88.3 million compared to $81.8 million for the same period last year.

“Perhaps most intriguing of all, our real estate division made spectacular progress in fiscal 2005,” says Adam Aron, CEO and chairman of Vail Resorts. Aron says with $155 million in for-sale properties, the company is poised to generate significant real estate profits in the immediate future. “We have binding contracts on all 67 condominiums at the Arrabelle at Vail Square, and on all 16 of the Gore Creek Place residences,” he says.

He notes that in the fourth quarter of fiscal 2005, the company announced plans for the Ritz-Carlton Residences, Vail project, as well as the acquisition of two parcels of land to create a six-acre development parcel in the Lionshead area of Vail.

“The Front Door project in Vail Village also looms large on the horizon,” Aron says. “We expect these three projects in Vail to feature as much as 500,000 sf or more of residential development opportunity.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.