After Barclays Center quarterly results drop, Forest City again downgrades revenue expectations, to $55M; interest exceeds net operating income
As I wrote in January, the arena's rankings--second nationally in 2014, according to several metrics--masked a significant decline in the Barclays Center's popularity compared to its slam-bang debut year: 27% in total tickets sold, and 28% in gross revenue.
"Results for the Barclays Center arena were down in the first quarter, compared with the same period in 2014, a function of the number and mix of events in the comparable quarters. Based on the ramp-up of the property and its performance to date, we are revising downward our estimate of annual arena NOI at full stabilization to $55 million ($30.3 million at our pro-rata share), from $65 million. While this is disappointing, Barclays Center continues to be a venue leader in ticket sales and revenues in the country, a vital anchor for our Pacific Park Brooklyn project, and an important economic driver for all of Brooklyn."
In 2014, the total first quarter revenues were $35,357,000, with operating expenses at $23,476,000. That leaves a profit of $11,881,000. Projected annually, that suggests NOI at $47.5 million.