The Atlanta Braves may be lacking on the field this season, but the team’s multi-use development near Truist Park, called The Battery, continues to be a steady source of income.
Atlanta Braves Holdings (ABH), the team’s parent company, reported on Thursday that revenue derived from The Battery jumped to $25 million in the second quarter—a 49% increase compared to the same period last year.
The increase can be attributed to the in-place leases associated with the April acquisition of Pennant Park, which is 34 acres of office space adjacent to the mixed-use development, along with over 2,700 parking spaces. The transaction increased The Battery’s footprint by more than 30%.
The development-related revenue also increased in the second quarter due to additional rental income stemming from an influx of various lease commencements, offsetting recent lease terminations and higher sponsorship revenue.
Braves chief financial officer Jill Robinson told investors that ABH is on pace to reel in about $20 million in additional net operating income this year due to the Pennant Park transaction and the opening of the Truist Securities headquarters building.
The Battery—which includes office space, residential units, retail and entertainment options—has gained attention across the sports industry since Truist Park opened in 2017; more franchises are looking to emulate the concept as they seek additional revenue streams related to real estate.
With The Battery, the Braves are looking to provide value to shareholders and unlock their stock, which they believe has been undervalued by Wall Street. The franchise recently hit the two-year anniversary of its split-off from parent company Liberty Media into a separate publicly traded company (Atlanta Braves Holdings).
The mixed-use development was one of the key reasons the Braves were selected as the host team for last month’s MLB All-Star Game. Atlanta was supposed to host in 2021, but the league pulled the All-Star Game from the city in protest to a controversial Georgia voting law.
While the Braves’ real estate portfolio was highlighted in the second quarter earnings, the team also touched on its steady baseball revenue, which grew to $287 million (up 8% from the year prior). The increase was driven by the growth of broadcasting revenue and increases on season tickets and existing sponsorship contracts.
The Braves recently made history competing in the MLB Speedway Classic at Bristol Motor Speedway. The first MLB game in Tennessee, which was suspended one day due to rain, snapped the all-time regular season single-game attendance with 91,032 tickets sold.
