Skycity Entertainment Group Ltd – Fund Manager Investment Commentary & Insights

In December 2025, Collins St Asset Management commented that Skycity Entertainment Group Ltd (ASX:SKC) is showing improving operational momentum—rising foot traffic, lower costs and a recovering consumer environment—and that monetisation of non‑core assets (notably a car park potentially realising NZ$225 million) and reinstatement of a dividend could materially re‑rate the stock. Across recent fund manager commentary the consensus is that SKC’s monopoly domestic casinos, convention assets and related real estate represent structural value and resilience relative to peers, but that the shares remain deeply unloved due to sector controversies and heightened regulatory scrutiny; managers highlight clear opportunities from asset sales (Tower/carpark proceeds cited at around NZ$415 million in one view), recovery in domestic demand and online gaming growth, while flagging operational headwinds including lower VIP spend, elevated compliance and pre‑opening costs, one‑off normalisations and balance sheet pressure that led to a NZ$240 million equity raise which some investors saw as unnecessarily dilutive versus monetising assets; actionable considerations are to track progress on asset sales and use of proceeds (debt reduction and dividends), management capital allocation decisions and regulatory developments, with potential upside tied to dividend reinstatement and a modest PE re‑rating from current depressed multiples toward historical levels, and the principal risks being regulatory intervention, further revenue softness or continued dilution from capital actions.