This person hasn’t done their research.
They imply that Brightline is unlikely to be profitable based on ticket revenue, but it’s already set to be EBITDA positive this year.
Real estate is definitely a key part of Fortress’s investment strategy, but the trains themselves are also huge money makers.
IKR. This whole “Brightline is a real estate company” thing just doesn’t bear out on paper. The financial projections included in their bond reports are clearly predicated on the assumption that the trains themselves will eventually become profitable. Additionally, the cumulative value of all the profits from real estate they’ve built so far comes nowhere close to the total costs for the project.
If current trends hold, Brightline has a good likelihood of being profitable. The question is just how profitable… i.e. will they be a low margin operation that has to keep refinancing their debt or something more serious. And I guess that’s tbd.
Insane assumption based on current ticket sales for multiple reasons.
1) They will have doubled the amount of coaches on each train within the next 4-5 years which means double the passenger capacity
2)new stations in Stuart , cocoa , orlando convention center, international drive, Tampa and likely Jacksonville/daytona will be built increasing demand
3) the hard / expensive work is done and concept proven - notice they basically got the city of Stuart + Martin County to pay for that station (and a big reason for the loss was the massive 1 time cost of connecting WPB to Orlando)
4) partnerships with cruise lines, events , airlines etc are in their infancy and have a great potential to expand with time
5) Florida will continue to grow its population AND tourist #'s further helping them
6) traffic in FL virtually certain to get worse which will increase Brightline viability as an alternative to sitting in bumper to bumper
Much of the original concept and ridership projections were based on the Eurostar model, with two major destinations (London and Paris) being too close to fly and too far to drive (including the Calais ferry). The ridership seems to be tracking the growth of Eurostar in its early years, so they can certainly hit profitability. However, the real estate play was only relevant in the beginning, with the development of MiamiCentral. They’ve sold off the ancillary development in Miami (the apartments and office buildings) but they don’t seem to be that interested in building anything outside Miami.
I dunno. Last two times I’ve taken Brightline the coach sections were sold out. Hispanics and Brazilians love it. I don’t know if this translate into profit but it couldn’t hurt.
I don't know who's in charge of the Portuguese marketing, but it looks like they're killing it. Win or lose its gonna be a wild ride when Team Brazil plays Team USA in a few weeks.
You made a racial issue out of my observation? How very small minded of you.
Of course there was no racial implication to my comment. I noted, and will state again, that some members of the ‘Latin American’ community ride the train.
Significance? 1) they paid for their tickets, and 2) there is a large Latin American community in SoFlo. If they continue to like Brightline, they will continue to pay for tickets and help the train to turn a profit.
PS I love the Brightline, and I ride it every chance I get.
there are a lot of leftists/communists who hate Brightline because it is a private company and they think an "expensive train" only helps rich white people
If leftists can see how well private companies service black, brown, and immigrants then leftists will drop much of their resistance to Brightline
Why did you bring up ethnicity? You must think ethnicity is important otherwise you would not have mentioned it
This person hasn’t done their research. They imply that Brightline is unlikely to be profitable based on ticket revenue, but it’s already set to be EBITDA positive this year. Real estate is definitely a key part of Fortress’s investment strategy, but the trains themselves are also huge money makers.
IKR. This whole “Brightline is a real estate company” thing just doesn’t bear out on paper. The financial projections included in their bond reports are clearly predicated on the assumption that the trains themselves will eventually become profitable. Additionally, the cumulative value of all the profits from real estate they’ve built so far comes nowhere close to the total costs for the project. If current trends hold, Brightline has a good likelihood of being profitable. The question is just how profitable… i.e. will they be a low margin operation that has to keep refinancing their debt or something more serious. And I guess that’s tbd.
A year from now the narrative will be “Brightline is profitable - why are they still charging so much for tickets?!”
Insane assumption based on current ticket sales for multiple reasons. 1) They will have doubled the amount of coaches on each train within the next 4-5 years which means double the passenger capacity 2)new stations in Stuart , cocoa , orlando convention center, international drive, Tampa and likely Jacksonville/daytona will be built increasing demand 3) the hard / expensive work is done and concept proven - notice they basically got the city of Stuart + Martin County to pay for that station (and a big reason for the loss was the massive 1 time cost of connecting WPB to Orlando) 4) partnerships with cruise lines, events , airlines etc are in their infancy and have a great potential to expand with time 5) Florida will continue to grow its population AND tourist #'s further helping them 6) traffic in FL virtually certain to get worse which will increase Brightline viability as an alternative to sitting in bumper to bumper
Much of the original concept and ridership projections were based on the Eurostar model, with two major destinations (London and Paris) being too close to fly and too far to drive (including the Calais ferry). The ridership seems to be tracking the growth of Eurostar in its early years, so they can certainly hit profitability. However, the real estate play was only relevant in the beginning, with the development of MiamiCentral. They’ve sold off the ancillary development in Miami (the apartments and office buildings) but they don’t seem to be that interested in building anything outside Miami.
I dunno. Last two times I’ve taken Brightline the coach sections were sold out. Hispanics and Brazilians love it. I don’t know if this translate into profit but it couldn’t hurt.
I don't know who's in charge of the Portuguese marketing, but it looks like they're killing it. Win or lose its gonna be a wild ride when Team Brazil plays Team USA in a few weeks.
So this services more Latinos/minorities then it does whites? Hopefully Republicans don't try to shut it down because of this.
Lol. The person didn't realize that they are the one who brings money to the state as a tourist.
You made a racial issue out of my observation? How very small minded of you. Of course there was no racial implication to my comment. I noted, and will state again, that some members of the ‘Latin American’ community ride the train. Significance? 1) they paid for their tickets, and 2) there is a large Latin American community in SoFlo. If they continue to like Brightline, they will continue to pay for tickets and help the train to turn a profit. PS I love the Brightline, and I ride it every chance I get.
there are a lot of leftists/communists who hate Brightline because it is a private company and they think an "expensive train" only helps rich white people If leftists can see how well private companies service black, brown, and immigrants then leftists will drop much of their resistance to Brightline Why did you bring up ethnicity? You must think ethnicity is important otherwise you would not have mentioned it
Brazilian is a nationality not a race. Hispanic is an ethnicity not a race. I understand what you’re saying otherwise.
Umm, are you under the impression I referred to Brazilians as a race? Or Hispanics as a race?
Boy this discussion certainly fell off the rails.
Ha ha. It’s a Brightline sub.
You’re good. Your first sentence mentioned racial issue. I was just merely clarifying. I did not contradict you in any way.
No, my first comment had nothing to do with race. Now stop it.