SEG

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Senior Vice President of Finance - Jason Wilk President and Chief Executive Officer - Matthew Partridge Chief Financial Officer and Treasurer - Lenah Elaiwat Operator: Greetings. Welcome to the Seaport Entertainment Group Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Jason Wilk, Senior Vice President of Finance. Thank you, Jason. You may begin. Jason Wilk: Thank you, operator, and good morning, everyone. With me today is our President and Chief Executive Officer, Matt Partridge; and our Chief Financial Officer and Treasurer, Lenah Elaiwat. Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q and other SEC filings. You can find our SEC reports, earnings release quarterly supplemental information and our most recent investor presentation on our website at seaportentertainment.com. With that, I will turn the call over to Matt. Matthew Partridge: Thanks, Jason, and good morning, everyone. On our last earnings call, I described the first quarter as a turning point for our company, and I'm excited to start today's call by sharing an important milestone for Seaport Entertainment Group. In the second quarter of 2026, we achieved positive operating EBITDA and positive non-GAAP adjusted net income for the first time in the company's history. This quarter's results reflect continued momentum since our inception, representing our seventh consecutive quarter of double-digit non-GAAP adjusted net income per share improvement and a 103% year-over-year improvement in Q2 as the highest comparable quarter of per share improvement during our 2-year existence. Our progress and improving trajectory towards profitability are a direct reflection of the work our team has been doing since our spin-off to stabilize the company and its operations. While we're proud of that financial results are beginning to reflect the hard work put in by our team, we want to maintain balanced expectations. Timing of new tenant openings, scheduling nuances related to our event, concert and baseball operations and the general seasonality of our businesses all create variability quarter-to-quarter. As a result, the next 3 quarters should show year-over-year improvement, but may not result in the same level of per share performance we achieved this quarter. As our tenants and new businesses open and stabilize, our events business continues to grow, and we realize the full year benefits of the changes we've made to improve our organizational efficiency, we anticipate an improved earnings profile in 2027 and even more so in 2028. This is further supported by the fact we have more than 194,000 square feet of non-income-producing space opening with new concepts in the next 18 months, including the Balloon Museum, Willett's, Flanker Kitchen and Sports Bar, and Hidden Boot Saloon, the new concept from the team behind Public Records, the Pier 17 event space and the Meow Wolf. That is more than $20 million of incremental annualized operating EBITDA that is yet to materialize in our numbers. As we work towards initial stabilization in 2028, we are focused on operating our assets in a way that delivers a more compelling growth profile than a traditional real estate investment company. This means day-to-day place making, marquee events, brand and culturally driven activations and sponsorships and customer engagement that not only brings people into our venues, but drives incremental revenue, percentage rent and improved leasing spreads. This quarter is a reflection of the progress we can continue to create as we emphasize disciplined execution, and it gives us conviction in our long-term plan. We're building a set of complementary businesses that we believe are capable of generating sustainable long-term operational cash flow and earnings growth. One of the key contributors to our improved financial performance has been our focus on optimizing our G&A cost structure. We have made meaningful progress this year towards reducing audit fees, technology costs and the reshaping of our organization. For some context, after adjusting for onetime leadership transition costs, we have reduced our trailing 12-month general and administrative costs by more than 20% over the past 9 months, going from $34 million in trailing 12-month G&A as of Q3 2025 to less than $27 million as of Q2 2026. We expect this trend to continue as the full year benefits of the changes we've made are holistically reflected in 2027, and we'll evaluate further opportunities to reduce costs through, among other things, the nonrenewal or renegotiation of expiring legacy contracts and service agreements. From a Seaport leasing perspective, activity has slowed a bit this quarter, though for good reason. We simply leased or programmed most of our available space. At spin, we had roughly 150,000 square feet of space available to lease or program or just under 200,000 square feet if we factor in the repositioning and leasing of the Tin Building. Today, that number stands at less than 50,000 square feet or just over 10% of the total space in the Seaport. The remaining vacant spaces continue to generate strong interest, especially after our recent leasing and programming announcements. However, the remaining spaces are generally smaller footprints with broader appeal, which is leading to more detailed negotiations as we work to identify the right tenants and deal structures for each space. As a result, we expect leasing timelines for the remaining spaces to take a bit longer, but we remain confident in our ability to drive overall leasing and programming demand and improve rent terms. One of the more notable leases we signed earlier this year is with the Balloon Museum. This was an ambitious project from the start, requiring us to deliver a white box to the tenant in less than 120 days and then working with the tenant towards their planned opening within 60 days thereafter. I'm pleased to say our team delivered on time and rent is expected to commence later this month. When open, we anticipate the Balloon Museum will be a key driver of additional foot traffic to the Seaport neighborhood, benefiting many of the businesses in the area. As an indoor ticketed experience, we also hope it will partially offset some of the seasonality related to the colder months when pedestrian activity typically slows. Combined with the rooftop at Pier 17 and the upcoming opening of Meow Wolf in 2028, the Balloon Museum adds to the neighborhood's growing roster of culturally relevant entertainment experiences, helping solidify the Seaport as one of New York City's premier entertainment destinations. On the rooftop at Pier 17, we are seeing continued strength in our concert business. During the second quarter, the rooftop hosted 22 shows, including 13 sellouts and achieved a 91% sell-through rate. Demand for our premium upsell offerings, including the Patron Patio, Heineken Silver Zone and the Liberty Club continues to build, and we are also seeing a higher average food and beverage spend per attendee. With more than 40 shows remaining in the 2026 season, the concert series continues to perform well and a growing demand for event-driven experiences on the rooftop reinforces the increasing value of the venue beyond concerts for our company and the broader community. I spoke about the growth of our events pipeline last quarter, and demand has continued with several high-profile events that have helped maintain the Seaport's position as a premier destination for sports, music, entertainment and cultural events. Some of our recent event highlights at the Seaport include hosting the first-ever live U.S. Men's National Team World Cup roster reveal and fan celebration in advance of the 2026 FIFA World Cup, which we previewed during our last earnings call. HBO Max's premier screening of the newest season of House of the Dragon. TNT Sports' first-ever Roland-Garros experience, which was an immersive 3-day fan experience with custom-built tennis court celebrating the iconic French Open, Aussie Barbecue, an annual music festival featuring Australian talent and culture, which relocated to the Seaport this year from Central Park Summer Stage and lululemon's Summer series, which kicked off their New York residency on the rooftop of Pier 17 with a packed Pilates session followed by a performance by DJ Kaskade. Part of what has helped drive increased event activity is our new restaurant concept, Sadie's and Sadie's Garden Bar. We previously shared that we envisioned Sadie's as the central hub of activity on the Cobblestones this summer, serving as a destination for sporting events, watch parties, live music, happy hours and cultural programming. That vision played out even better than we expected. One key driver behind the outperformance was the New York Knicks' historic NBA championship run, which brought thousands of fans to Sadie's and Sadie's Garden Bar, Lawn Club and other businesses throughout the Seaport for every post-season game. The excitement culminated with multiple game five watch parties that stretched from the Heineken River Deck on Pier 17 to the Cobble Stones at Sadie's, bringing more than 10,000 people to the Seaport. It was an unforgettable moment for New York City, and we're proud that Sadie's became a place for New Yorkers to experience the excitement together. That celebratory spirit rolled right into FIFA World Cup, driving strong visitation to the neighborhood from locals and tourists alike. Sadie's Garden Bar, in particular, benefited from consistent soccer programming, making it a go-to destination for fans looking for a great atmosphere to catch their favorite game. In addition to the 2026 activities driven by the FIFA World Cup, we also benefited from events tied to America's 250th anniversary. On July 4, Pier 17 welcomed 2 tall ships as part of the International Sail 250 celebration that took over the New York Waterfront. We also hosted the 50th anniversary of the Macy's 4th of July fireworks, including the NBC broadcast of the event on the rooftop of Pier 17, with Sadie's hosting a sold-out 4th of July block party as part of the broader holiday celebrations. Also as part of the America 250 celebrations, the South Street Seaport Museum is hosting the Promise of Liberty, a limited time exhibition featuring several of the nation's original founding documents, including the Declaration of Independence, the United States Constitution and an advanced copy of Dr. Martin Luther King Jr.'s I Have a Dream speech delivered during the March on Washington. It has truly been a special summer for the Seaport to play such a central role in the celebrations around this milestone anniversary. As one of New York City's oldest neighborhoods and a place deeply connected to the nation's early history, the Seaport provides a fitting backdrop for celebrating America's founding. The visibility and visitation our events and programming brings to the Seaport are invaluable and the financial benefits they bring have been a key catalyst to our improvement. We look forward to continuing the momentum with an ongoing slate of activities, which includes the return of Seaport Cinema, our popular outdoor movie series at Pier 17, Bastid's Barbecue a hip-hop music and food festival, which will take over Sadie's Garden Bar and The Cobblestones this weekend. The expansion of the Seaport Racket Club in celebration of Tennis' U.S. Open and the second year of New York City Wine and Food Festival, among many others. Moving West, the momentum is just as strong out in Las Vegas. The aviators opened the season in first place in the Pacific Coast League, and I'm excited to report they held that position through the first half of the season. As a result, they've secured their spot in the playoffs this fall. Additionally, in April, the team held its highest attended regular season game in franchise history with more than 11,000 fans. The Las Vegas ballpark also hosted a sold-out 6 game series with the Athletics, drawing more than 50,000 fans and 3 sold-out games of Banana Ball, the fast-paced high-energy version of baseball made popular by the Savannah Bananas. These non-aviator events resulted in the highest-grossing 1-day food and beverage sales and the highest grossing 1-day merchandise sales in the history of the ballpark. Combined with an increasing focus on expense management, we're encouraged by the progress made by our team in Las Vegas as they continue to deliver an amazing ballpark experience across multiple event types. Overall, everything I've discussed comes back to progress. We're making progress organizationally, operationally and financially. We said we were entering the year from the strongest position since our inception and that we expect our momentum will carry through 2027 with continued operating efficiency and cash flow improvement, allowing us to achieve initial stabilization of our existing assets by 2028. This quarter's results, our first with positive operating EBITDA in all segments along with positive non-GAAP adjusted net income, show that improving trajectory remains firmly intact. I'm optimistic about where we're headed and our opportunities for future growth. But none of this happens without our team, and I want to thank everyone across the organization for their continued commitment and hard work as we keep moving forward. With that, I'll turn it over to Lenah, who will walk through our second quarter financial performance in more detail. Lenah Elaiwat: Thanks, Matt, and good morning, everyone. As you've likely gathered from Matt's remarks, it's been a busy quarter. Our results show the meaningful progress we've made, reflecting the exceptional execution, hard work and dedication of our team. Before I walk through our Q2 results in detail, I want to remind everyone that we changed our segment reporting at the start of the year to better reflect how we view the business. We use operating EBITDA to report the overall performance of our 3 operating segments: landlord operations, hospitality and entertainment. We think the revised definition we shared during our last call gives a clearer, more comparable picture of how each operating business is performing. Unless we note otherwise, all operating EBITDA figures discussed today are net of intercompany transactions. For the quarter ending June 30, 2026, total operating EBITDA improved by $5.6 million from a loss of $1.1 million in the same quarter prior year to positive operating EBITDA of $4.5 million with all business segments generating positive results. The improvement was driven primarily by the benefits recognized from closing the Tin Building operations in Q1 of 2026 and the early termination of the Nike lease at Pier 17, along with several operational improvements that I'll outline shortly. As we previously disclosed in 2025, Nike exercised a lease termination option that revised their lease term to expire in Q1 of 2027, 3 years ahead of the original contractual end date. At that time, we received $2 million of termination fees with another $2 million due in Q1 of 2027, and we were continuing to receive contractual rent through the duration of this revised lease period. During the second quarter of this year, we entered into an agreement with Nike to terminate the lease effective April 30, 2026, and concurrently received the remaining termination payment and a payment for the majority of the remaining rent due under the lease. The full effects of these payments as well as our write-off of our straight-line rent balance related to this lease were recognized into rental income this quarter for a net effect of an additional $2.7 million in rental revenue year-over-year when compared to Nike's contractual rent revenue in prior year. Overall, rental revenue for the quarter increased $2.8 million or 67% year-over-year, mainly due to this transaction. This is a positive outcome for us as Nike surrendering of this space allows us to begin the construction of our planned event space in Pier 17 sooner than we originally anticipated. Additionally, year-over-year event-driven rental revenue increased across the property as demand for marquee events and activations has strengthened the Seaport's reputation as an entertainment destination. That growth, along with the start of GITANO's lease in April and Cork's opening that same month, fully offset the loss of rental income from the ESPN lease, which ended in the third quarter of 2025. I also want to share an update on the former IPIC Theater located in the Seaport. Blue Fox Entertainment, a global film distribution and film sales company, acquired the 46,000 square foot lease through IPIC's bankruptcy process, paying all outstanding balances. Blue Fox Entertainment plans to reimagine and rebrand the space to enhance the movie theater experience, and we look forward to working with their team. Within the landlord segment, operating costs continue to improve, down about $800,000 or 10% versus the prior year. The largest savings came from insurance premium reductions, along with reduced spending on cleaning, security and technology. Operating EBITDA for the quarter was $600,000, which improved by $3.6 million year-over-year. When excluding the effects of the Nike lease in both periods, landlord operating EBITDA improved by 23% over Q2 of prior year. Moving on to hospitality. This quarter also marks 2 important milestones within the segment. First, hospitality generated positive operating EBITDA of approximately $280,000, an improvement of $3.1 million year-over-year, driven primarily by a full quarter benefit of the closure of the Tin Building, which in prior year impacted EBITDA with a loss of $2.8 million. Second, Sadie's, our first internally developed and operated restaurant concept, generated positive operating EBITDA in its first full quarter of operation, which speaks to the strength of the concept and our team's execution. Further, Sadie's Garden Bar generated a 125% increase in year-over-year revenue compared to prior year when the outdoor bar at the center of the Cobblestones was not managed directly by SEG. While Sadie's has exceeded expectations, fueled in large part by the Knicks championship run and World Cup activity, our legacy full-service restaurants have faced softer top line sales. In response, the hospitality team is continuing to evaluate opportunities to strengthen performance, including menu optimization, expanded programming and targeted marketing to build awareness and drive visitation. Turning to entertainment. Operating EBITDA declined $1 million or 23% year-over-year, driven mainly by the concert series on the rooftop at Pier 17. In Q2 of 2026, we incurred increased repair and maintenance expenses as well as increased operating expenses related to the rooftop. Concerts EBITDA was also affected by decreased sponsorship revenue compared to prior year following the nonrenewal of a legacy sponsor. While replacing sponsorship partners is a longer-term proposition, it also opens the door to diversified opportunities that align with our entertainment-focused strategy and customer base. In Las Vegas, the team delivered higher operating EBITDA year-over-year despite hosting 7 fewer Aviators home games. Those results came from a focused strategy of disciplined cost management, matching game day expenses to attendance to continue improving operating costs. Las Vegas operating EBITDA also benefited from hosting the sold-out 3-day Banana Ball series as well as the 6 game sold-out Athletics run. The Athletics games drove an increase in quarterly merchandise sales of over 50% year-over-year. When excluding merchandise sold during the Athletics games at Las Vegas Ballpark, the Aviators retail sales increased 8% year-over-year despite 7 fewer games. Increasing merchandise sales has been a focus of the team this season. The family-friendly nature of the ballpark and Summerlin community allows the team to find fun and creative ways to engage the community with theme nights and related merchandise. Looking ahead, the remainder of the Aviators season promises plenty of excitement, including another chance at the Pacific Coast League Championship this September. In looking at G&A, a continued key initiative has been reducing our corporate cost structure towards stabilization, and we're seeing those efforts reflected in our quarterly results. General and administrative expense totaled $6.6 million in the second quarter, a $1.7 million or 20% improvement compared to $8.3 million in the second quarter of last year. When excluding restructuring-related severance costs and leadership transition costs, second quarter G&A improved by $2.9 million or 35% when compared to prior year and $1.2 million or 18% when sequentially compared to Q1 of 2026, as we've continued to streamline our cost structure. In other income or loss, we recorded a net expense of approximately $700,000 in the second quarter, mainly reflecting certain nonrecurring items such as preopening costs for Sadie's, Tin Building wind-down costs and certain legal expenses. In Q2 of 2026, we also recorded an additional $1.4 million loss on the sale of 250 Water Street. This loss is related to the estimated post-closing obligations required under the purchase and sale agreement and will be funded by the escrow that was set up at closing. During the quarter, we recorded net interest income of approximately $700,000, down approximately $100,000 or 14% from prior year, reflecting a lower interest rate environment. Equity and earnings or losses from unconsolidated ventures declined approximately $0.5 million or 61% year-over-year, reflecting lower EBITDA from Lawn Club and reduced earnings from the Jean-Georges Restaurant Group. At Lawn Club, revenue grew year-over-year, though higher operational costs resulted in lower net income. At Jean-Georges Restaurant Group, performance has been challenged thus far in '26 as new restaurants ramp up. Their team continues to focus on driving value through increased license and management fee income while improving existing restaurant operations. Second quarter net loss attributable to common stockholders improved 29% year-over-year to $10.5 million, while net loss per share improved to $0.82 from $1.16 loss in the second quarter of 2025. These year-over-year improvements reflect the benefits of stronger operational execution across multiple businesses, the Tin Building closure, termination revenue from Nike and continued progress on our G&A cost initiatives. On the balance sheet, capital expenditures totaled $14.8 million in the second quarter, with the majority invested in landlord work related to Balloon Museum, Flanker Kitchen and Sports Bar, Hidden Boot Saloon and other maintenance projects. We completed landlord work and delivered the Tin Building space to the Balloon Museum in June of 2026. And as Matt mentioned, we expect the museum to open soon and rent to commence concurrently with opening. At quarter end, we held a net cash position of $88.9 million with $127 million of cash, cash equivalents and restricted cash as of June 30, 2026. Of note, during the quarter, we received $20.8 million of the $27.8 million escrow related to the 250 Water Street post-closing obligations. Our only outstanding debt remains the $38.1 million Las Vegas ballpark loan, and we paid approximately $1 million of recurring principal payments during the quarter. We continue to maintain a strong balance sheet, which gives us flexibility as we deploy capital and keep improving operations. Before we open the call for questions, I wanted to close with the milestone mentioned earlier, positive non-GAAP adjusted net income of $320,000. This represents an improvement of $7.7 million year-over-year from a non-GAAP adjusted net loss of $7.4 million. On a per share basis, non-GAAP adjusted net income attributable to common stockholders was $0.02 compared to a loss of $0.58 per share a year ago. As we've noted, this quarter's results benefited from the accelerated Nike payment and other favorable timing items. However, they also reflect the progress we've made over the past 2 years, stabilizing operations, corporate costs and repositioning our assets since spin. With that, we'll go ahead and start the Q&A portion of the call. Operator: [Operator Instructions] Our first question comes from Matthew Erdner with Jones Trading. Matthew Erdner: Congrats on the continued progress. So you guys still have a pretty strong cash position. I'm just trying to get a scope of what you guys are thinking for continued CapEx or investment into the properties as you continue to re-tenant. Is it still kind of that $70 million to $90-ish million range? Lenah Elaiwat: Yes, that $70 million to $90 million, so we've spent about $20 million over the first half of the year. And so we're thinking that $50 million to $70 million remaining is still the right number for a lot of the projects and committed capital we have already announced. Matthew Erdner: Got it. That's helpful. And then could you kind of speak about the event space and what you guys are putting in there now that you have your hands back on that actual space, what you guys are thinking? And then how are you looking to kind of program that out? Matthew Partridge: Matt, thanks for the questions. We're really excited about the event space. It's going to have a dedicated entrance on the ground floor of Pier 17 with dedicated elevator transportation up to both the second, third and fourth floor of the Pier. All 3 floors will have sweeping views of the Manhattan Skyline, the Brooklyn Bridge, the Brooklyn Skyline, the East River. So it's pretty unique space. The way that we're designing it is to be as flexible as possible because in our minds, we're going to have everything from traditional corporate offsites to small convention style programming to product launches and consumer-facing opportunities. And we're designing some elements of it to factor in the consumer-facing, consumer engagement side of things. So it's going to be able to accommodate a lot of different program types, but it's going to have all the infrastructure to make it as easy as possible for people to come and activate. Matthew Erdner: Got it. That's awesome. And then as it relates to the remaining space, you mentioned a little bit about the discussions there. Have you guys looked or, I guess, thought about any internally developed concepts similar to Sadie's that you would put in there? Or are you going to just lease that out to somebody over the near term? Matthew Partridge: The way we think about internal concepts is we want to operate the stuff that's systemically important. Sadie's being at the center of the Cobblestones with the Garden Bar and putting the LED screen out there for watch parties like the Knicks and World Cup and things like that, combined with the open container district we have associated with it, that's a systemically important operation within the Seaport. Same with the concert venue, same with the event space. But the small shop space, some of the smaller remaining restaurant spaces we have, those aren't as systemically important. And so we'd look to shift the operating execution over to a third-party tenant who's going to live and breathe it every day. A big emphasis that we have from a leasing perspective is getting one of ones down here. We don't want chains. We want people who are going to live and breathe their businesses, be entrepreneurial about how they operate them and provide something unique to the neighborhood and the community and the people who come to the Seaport. And so that's what -- like I said in the prepared comments, that's what's taking longer is finding those right people, understanding how they think about their businesses and the value proposition to the customer base that comes down here and also where we're headed with Balloon Museum opening, Meow Wolf in the event space. Matthew Erdner: Right, right. That makes sense. And then as it relates to the stuff that's in progress of opening up, have there been any delays in timing or construction, anything like that? Matthew Partridge: No, not really. I mean the event space is a bit of a fluid process, just given the negotiations that we had to go through with Nike, but we're obviously on the other side of that. I think Balloon Museum has gone as quickly as feasible given the amount of work that was done in that space. And I think we still feel good about the path that Meow Wolf is on. Those are obviously the big ones that are on deck. And then the restaurants and things like that with Public Records and Flanker and Hidden Boot Saloon, those are all on pace. Matthew Erdner: Awesome. And then a couple more for me, and then I'll hop out. 85 South, are you guys still kind of exploring, I guess, selling that? Matthew Partridge: We are. We've had some starts and stops. I think as I mentioned on the last call, with 250 Water Street, we were required, given the materiality of the asset to disclose a little bit more, but it puts us at a competitive disadvantage when we're negotiating with different potential buyers. So for 85 South, like I said, we've had starts and stops, but we'll probably be relatively quiet in terms of progress until we get to a transaction just to maintain as much negotiating leverage as possible. Matthew Erdner: Got it. That makes sense. And then Matt, since you've joined, you guys have had a bunch of progress. How does it kind of align with the expectations when you decided to come over versus where you are now? Just kind of put a big picture at the Seaport. Matthew Partridge: I mean I'd love to say this was all planned out, and we're right on track. Things ebb and flow. We get lucky here or there. We have setbacks here and there. So it's not a linear path, but I can't say enough how proud I am of the team and how much progress we've made, especially over the last, call it, 9, 10 months since I stepped into the seat. Everybody has run really hard towards executing on the strategy. And I think, look, we've always said it was going to take 3-plus years to stabilize everything, and I think we're right on track with that for 2028 being that initial stabilization year. Operator: Our next question comes from Ross Haberman with RLH Investments. Ross Haberman: Nice quarter, Matt. You guys are really coming along here. Lenah, can I go back to the $50 million to $70 million in CapEx, which you referred to. What is the -- that's over, what, the next 2 years. Is that correct? Lenah Elaiwat: Yes, it's over the next 2 years. It's until we reach that stabilization point and get through all of the projects we've committed to. Matthew Partridge: And Ross, I would just elaborate that you know how these things go, dollars typically trail construction progress. So even though something like Meow Wolf may open late Q4 2027, early Q1 2028, dollars will trail that opening just as we close out the projects. So to Lenah's point, it's about 2 years to put us into mid-2028 before we expect all the dollars to get out the door. Ross Haberman: In the past, you threw out a number that if all these projects were -- if all these leases were in place, how much revenue or cash flow they would generate. What is that number today? What you haven't signed? Matthew Partridge: Yes, we still have that out there. It's in the supplemental. Give me one sec, Ross. Ross Haberman: I'm sorry, Mr. Matt. I apologize. Lenah Elaiwat: Yes, it's around $26 million. Matthew Partridge: It's just over $26 million, Ross. And as we continue to make progress from a leasing standpoint, yes, the additional -- as we keep making progress from a leasing standpoint, hopefully, that number will increase. But obviously, as things open and as we lap over things like Nike and ESPN no longer being in the historical trailing 12, that number will move around. Ross Haberman: And that's a pre-G&A number? Matthew Partridge: Correct. Ross Haberman: Is there more room? You said you hope to get the G&A down to about $27 million. Is there more room on that to lower that further? Matthew Partridge: Yes, I think so. I mean we'll -- we're going to start budgeting this month for 2027, and that will continue to be a focus. We inherited some existing service contracts and arrangements that had 2-, 3-year lives on them. So we're coming up on the expiration of some of those where we can either renegotiate them or move on from them. And some of those are related to systems, some of those are related to consultants and other relationships. So it will continue to be an emphasis, but I think we've made a lot of progress and not all of that progress is reflected in the number in Q2. So we'll start to see the full year benefits of that as we get into 2027. Operator: Our next question comes from Dan Joseph with Apparent Capital. Dan Joseph: Congratulations. This was an outstanding quarter, great progress for the company. I also want to call out your presentation and materials, particularly Pages 47 through 49. For me personally, I thought that was incredible progress, very transparent, very good communication and continues to help me understand the company in a better and better way. So thank you, guys, for continuing to lean into improving the way that you communicate with us as shareholders. Matthew Partridge: Thanks, Dan. Always happy to provide information as we can. I think you know things move around, so that limits our ability to be forward-looking, but I think we're getting to a better and better stabilization point where we'll be able to start providing more forward-looking information in the coming months and quarters. Dan Joseph: That's great. So on that subject, from a stabilization standpoint, as you now are in the cash flow positive realm kind of ahead of expectations, have your expectations for stabilized EBITDA in 2028 changed at all? Matthew Partridge: I wouldn't say they've changed. I think, obviously, if we can continue to accelerate positive earnings earlier, that's going to help with cash burn. Q1 is obviously a seasonally slower month, so that's going to be a harder one to get to a positive place. But the event space, Balloon Museum opening, eventually Meow Wolf and all the other concepts that are in the queue are obviously going to help. How the event space ramps up in terms of business and bookings and things like that, I think, is an area where we have different iterations of models. Obviously, we have optimistic models and conservative models related to that. But our team is very focused on putting structure around that and getting that ramped up as quickly as possible. I'd say that's probably the most volatile component of what we have in the queue right now given how operationally involved it will be. Dan Joseph: Got it. A couple of questions on some of the challenges that you guys are having. You mentioned the loss of a sponsor at the rooftop. Could you elaborate on that a little bit? Matthew Partridge: Yes, it was Chase. They had historically been a founding sponsor when the Pier and rooftop concert series were launched. They've had some turnover or change in the team that we were working with, and they've looked to prioritize what I would call more exclusive and unique experiences for their cardholders. And so we're in active conversations with different groups, whether in the financial services world or entertainment world or everything in between about replacing that sponsorship income. Those deals don't happen overnight. The team that we have is a terrific team who's got a lot of deep relationships. And so -- but these are typically multiple year deals, and so they take a lot longer to negotiate and ultimately replace that cash flow. Dan Joseph: Got it. And Lawn Club, you mentioned that the EBITDA at the Lawn Club was down. Is there a plan in place to kind of reverse that trend? Do you see upside there? How do you guys look at Lawn Club as -- and obviously, it's a meaningful contributor. Lenah Elaiwat: Dan, yes, Lawn Club is certainly a meaningful contributor to us. And a part of the decline year-over-year is that in prior year, the Lawn Club operated the Sadie's Garden Bar. And so that was a tremendous benefit to the Lawn Club at the time that effectively got shifted over to Sadie's. So the Lawn Club team is doing a great job in trying to make up that revenue and continuing activations inside and outside the space. So we definitely see the progress they're making. And it was -- for us, it's more of a shift from one venue to another versus a decline at the Lawn Club that would be a serious issue. Matthew Partridge: Yes, Dan, just anecdotally, I think Lawn Club hit an all-time record in revenue for July. So they're not slowing down. I think -- and obviously, the Sadie's Garden Bar, given our comments earlier, has performed better than last year. So I think everybody is in the aggregate coming out ahead. It's just shifting where the revenue is coming from. And I think Lawn Club will have a very strong back half of the year based on how they've reforecasted and their expectations for the remainder of Q3 and into Q4. Dan Joseph: Yes. That's helpful. So that doesn't feel like a negative. That actually feels like a positive just given the strength of Sadie's. I mean, as you know, I've been down there and the Sadie's traffic is unbelievable. So I look at that from a positive light. One more question, which at the last call, you mentioned having -- the Board having approved share repurchase program. as well as having the shelf offering, I think, for $125 million for the potential launch when the stock strengthens. Any kind of new news or information that you can share on the share repurchase program or any plans to raise capital? Or are you kind of standing pat right now on that front? Matthew Partridge: No, I wouldn't say there's any new news. We continue to view the shelf and the buyback program as tools. I think as we continue to get clarity in terms of opening time lines and things like that and capital costs and stuff like that, we'll have a better sense of cash burn as we get into 2027 and ultimately 2028, and that will certainly influence whether or not the share buyback program becomes more actionable. Obviously, the performance of the stock will also impact that. But I think generally, what you and investors should expect is that we won't talk about share buybacks until they happen if they do happen. And as we've said, it is a tool in the toolbox. I think beyond that, from a capital raising standpoint, no, we don't -- we haven't suggested there's any imminent capital raising. And I think from our standpoint, we're focused on executing and continuing to march towards that 2028 stabilization point with the existing asset base. As I've said in the past, we're going to be opportunistic in evaluating other opportunities. But as I've also said, we're not going to race towards something or feel like we have to do something just to put capital to work. We want to do it because it's the right investment decision and the right capital allocation decision for the company long term. Dan Joseph: Makes sense. It's really smart. As you know, I think you guys are just doing a great job blocking, tackling and making really great strategic decisions. So again, congratulations on everything. I don't want to monopolize any more time. Looking forward to seeing the Balloon museum when it opens up and continued good work ahead. Operator: Our next question comes from Ross Haberman with RLH Investments. Ross Haberman: Sorry, guys, I left out one question. Could you talk in general about leasing rates and prices given the political environment in the city? What are you seeing there? What kind of trends if there are any? Matthew Partridge: I wouldn't say there's any trends in relation to politics or anything along those lines. I think if you look at the city broadly, there's an inordinate amount of strength in the Midtown corridor. Office has been red hot during the summer in terms of office leasing, and I think we're starting to see some of that play out downtown. I would say the Seaport is a little bit unique in that there was, including our property, a decent amount of inventory on the market available. And as we continue to chip away at that inventory and fill in the occupancy, that's going to give us more pricing power. And I think we're starting to see that, especially as we make different announcements that are relevant to potential tenants. So for us, it's not a demand issue. It's a use consideration, and we're trying to be judicious in terms of how we evaluate the tenant mix and the place making that we're trying to create down here. Ross Haberman: I was just trying to get a general sense if prices are firmer today or not today or less than they were a year ago or so. Matthew Partridge: I would say they're firmer today, broadly speaking. And I think certainly for the Seaport, they're firmer just given all the progress that we've made. Operator: We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Matt Partridge for closing comments. Matthew Partridge: Thanks, everybody, for joining us today. We really appreciate the support and look forward to sharing updates on the progress on the next earnings call in November. Have a great rest of the summer break. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Seaport Entertainment Group. The Motley Fool has a disclosure policy. Seaport Entertainment (SEG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Seaport Entertainment Gr? Here are five stocks we like better. Seaport Entertainment posted its first positive operating EBITDA and adjusted net income: Second-quarter operating EBITDA reached $4.5 million, up from a $1.1 million loss, while adjusted net income was $320,000 versus a $7.4 million loss a year earlier. The Nike lease termination boosted landlord results and allows earlier construction of a planned Pier 17 event venue. Seaport also expects more than $20 million in incremental annualized operating EBITDA from over 194,000 square feet of upcoming tenant openings. Cost reductions and a strong balance sheet support the outlook: G&A expense fell 20% year over year, while the company ended the quarter with $127 million in cash and restricted cash against $38.1 million of debt. Management expects continued year-over-year improvement, with broader earnings gains projected in 2027 and 2028. Seaport Entertainment Gr (NYSE:SEG) reported its first quarter of positive operating EBITDA and positive non-GAAP adjusted net income in the second quarter of 2026, as the company benefited from improved operations, lower corporate costs, the closure of the Tin Building and payments associated with the early termination of Nike’s Pier 17 lease. For the quarter ended June 30, total operating EBITDA improved by $5.6 million year over year, reaching positive $4.5 million compared with a $1.1 million loss in the prior-year period. President and CEO Matt Partridge said all three operating segments—Landlord Operations, Hospitality and Entertainment—generated positive operating EBITDA during the quarter. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “This quarter’s results reflect continued momentum since our inception,” Partridge said, adding that the company recorded its seventh consecutive quarter of double-digit improvement in non-GAAP adjusted net income per share. Non-GAAP adjusted net income totaled $320,000, or $0.02 per share, compared with an adjusted net loss of $7.4 million, or $0.58 per share, a year earlier. Net loss attributable to common stockholders narrowed 29% to $10.5 million, or $0.82 per share, from $1.16 per share in the prior-year quarter. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Chief Financial Officer and Treasurer Lenah Elaiwat said rental revenue rose $2.8 million, or 67%, year over year, primarily because of the Nike lease termination agreement. Nike had previously exercised an option to shorten its lease term, and in the second quarter Seaport agreed to terminate the lease effective April 30, 2026. The company received the remaining termination payment as well as a payment representing most of the remaining rent under the lease. The transaction, including the write-off of the related straight-line rent balance, contributed a net $2.7 million year-over-year increase in rental revenue, Elaiwat said. → No Hangover: Revisiting Microsoft One Week After Earnings The early surrender also enables Seaport to begin construction earlier on its planned event space at Pier 17. Partridge described the future venue as a flexible, multi-floor space with a dedicated entrance and views of the Manhattan skyline, Brooklyn Bridge, Brooklyn skyline and East River. The company expects the space to support corporate off-sites, convention-style events, product launches and consumer-facing programming. Landlord Operations generated operating EBITDA of $600,000, an improvement of $3.6 million year over year. Excluding the effects of the Nike lease in both periods, landlord operating EBITDA rose 23%, according to Elaiwat. Segment operating costs declined about $800,000, or 10%, driven largely by lower insurance premiums and reduced cleaning, security and technology spending. Seaport also said Blue Fox Entertainment acquired the 46,000-square-foot former iPic Theaters lease through iPic’s bankruptcy process and paid all outstanding balances. Blue Fox plans to reimagine and rebrand the theater space. Partridge said leasing activity slowed during the quarter because much of the Seaport’s available space has already been leased or programmed. Available space has declined to less than 50,000 square feet, or just over 10% of the property, from roughly 150,000 square feet at the company’s spin-off. The company expects more than 194,000 square feet of currently non-income-producing space to open with new concepts over the next 18 months. These projects include the Balloon Museum, Willett’s, Flanker Kitchen + Sports Bar, Hidden Boot Saloon, a concept from the team behind Public Records, the Pier 17 event space and The Owl. Partridge said the openings represent more than $20 million in incremental annualized operating EBITDA that has not yet been reflected in results. Seaport delivered the Tin Building space to the Balloon Museum in June, and rent is expected to begin when the museum opens. The company said it still expects Meow Wolf, Public Records, Flanker and Hidden Boot Saloon to remain on schedule. Capital expenditures totaled $14.8 million in the quarter, primarily for landlord work tied to the Balloon Museum, Flanker, Hidden Boot Saloon and maintenance projects. Elaiwat said Seaport has spent about $20 million of its expected $70 million to $90 million stabilization-related capital program during the first half of the year, leaving approximately $50 million to $70 million to be spent over the next two years. Hospitality produced approximately $280,000 in positive operating EBITDA, improving by $3.1 million from the prior year. The improvement reflected a full-quarter benefit from closing the Tin Building, which had generated a $2.8 million EBITDA loss in the comparable period. Sadie’s, Seaport’s internally developed restaurant concept, produced positive operating EBITDA in its first full quarter of operation. Sadie’s Garden Bar revenue increased 125% from a year earlier. Management said the venue benefited from activity surrounding the New York Knicks’ playoff run and FIFA World Cup programming, though legacy full-service restaurants experienced softer sales. Entertainment operating EBITDA declined $1 million, or 23%, year over year. Elaiwat attributed the decline principally to higher repair, maintenance and operating costs at the Rooftop at Pier 17, as well as lower sponsorship revenue following the non-renewal of a legacy sponsor. Partridge identified Chase as the departing sponsor and said replacing sponsorships can take time because agreements are generally multiyear arrangements. The rooftop hosted 22 concerts during the quarter, including 13 sellouts, with a 91% sell-through rate. Seaport said premium offerings and food-and-beverage spending per attendee continued to increase. In Las Vegas, operating EBITDA increased despite seven fewer Aviators home games. The Las Vegas Ballpark benefited from sold-out Banana Ball events and a six-game Athletics series. Merchandise sales rose more than 50% year over year due to the Athletics games; excluding those games, Aviators retail sales increased 8%. General and administrative expense fell 20% to $6.6 million. Excluding restructuring severance and leadership-transition costs, G&A declined 35% year over year and 18% sequentially. Partridge said trailing 12-month G&A has fallen to less than $27 million as of the second quarter from $34 million as of the third quarter of 2025. At quarter-end, Seaport held $127 million in cash equivalents and restricted cash, representing a net cash position of $88.9 million. Its only outstanding debt was the $38.1 million Las Vegas Ballpark loan, and the company made about $1 million of recurring principal payments during the quarter. Management said the next three quarters should show year-over-year improvement, although results may not match the second quarter because of seasonality, tenant opening schedules and event timing. The company continues to target initial stabilization of its existing assets in 2028, with Partridge saying the full-year benefits of operational changes and new openings should support an improved earnings profile in 2027 and further gains in 2028. Seaport Entertainment Group Inc develops, owns, and operates a portfolio of entertainment and real estate assets primarily in the New York City and Las Vegas. It operates through three segments: Landlord Operations; Hospitality; and Sponsorships, Events, and Entertainment. The company's Landlord Operations segment engages in the holding of ownership interests in and operation of physical real estate assets, such as restaurant, retail, office, and entertainment properties, as well as residential units in Seaport. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Seaport Entertainment Gr Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved positive operating EBITDA and non-GAAP adjusted net income for the first time, marking a significant milestone in the company's two-year history. Performance was driven by the strategic closure of the Tin Building, the early termination of the Nike lease at Pier 17, and disciplined G&A cost reductions. Reduced trailing 12-month G&A costs by over 20% in the past nine months by optimizing audit fees, technology costs, and organizational structure. Leasing activity has transitioned to a more selective phase, with only 10% of total Seaport space remaining vacant, allowing for more detailed negotiations with unique, 'one-of-one' tenants. The successful launch of Sadie's, the first internally developed restaurant concept, validated the strategy of operating systemically important assets to drive neighborhood foot traffic. Management attributes the quarter's success to a shift toward disciplined execution and place-making that delivers a growth profile superior to traditional real estate companies. Anticipates an improved earnings profile in 2027 and 2028 as over 194,000 square feet of non-income-producing space, including the Balloon Museum and Meow Wolf, becomes operational. Expects approximately $20 million of incremental annualized operating EBITDA to materialize over the next 18 months from upcoming tenant openings. Management projects the next three quarters will show year-over-year improvement, though results may vary due to seasonality and the timing of new tenant openings. The company plans to invest between $50 million and $70 million in remaining committed CapEx over the next two years to reach the 2028 stabilization target. Future G&A reductions are expected as legacy service contracts expire and are renegotiated or non-renewed throughout 2027. The early termination of the Nike lease resulted in a $2.7 million net year-over-year increase in rental revenue and allows for earlier construction of a new event space. Blue Fox Entertainment acquired the former IPIC Theater lease through bankruptcy, resolving outstanding balances and planning a rebranding of the 46,000 square foot space. Recorded an additional $1.4 million loss on the sale of 250 Water Street related to estimated post-closing obligations funded by escrow. The company maintains a strong liquidity position with $127 million in total cash and only $38.1 million in outstanding debt. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The space will feature a dedicated ground-floor entrance and flexible infrastructure to accommodate corporate offsites, product launches, and consumer activations. Management aims to make the venue a premier destination with sweeping views of the Manhattan and Brooklyn skylines. Management intends to internally operate only 'systemically important' venues like Sadie's and the concert rooftop that drive district-wide traffic. Smaller retail and restaurant footprints will be leased to entrepreneurial third-party tenants to ensure unique, non-chain offerings for the community. The non-renewal of a legacy founding sponsor (Chase) impacted entertainment EBITDA this quarter. Management is in active discussions with new potential partners in financial services and entertainment, though these multi-year deals take time to finalize. The board-approved share buyback program and shelf offering are viewed as 'tools in the toolbox' to be used based on cash burn clarity and stock performance. Management emphasized they will not rush into capital deployment or acquisitions just to put money to work, prioritizing long-term investment quality.

This article first appeared on GuruFocus. Total Operating EBITDA: Improved by $5.6 million year-over-year to positive $4.5 million, with all business segments generating positive results. Non-GAAP Adjusted Net Income: Positive $320,000, an improvement of $7.7 million year-over-year from a loss of $7.4 million. Non-GAAP Adjusted EPS: $0.02 per share, compared to a loss of $0.58 per share in the prior year quarter. Net Loss: Attributable to common stockholders improved 29% year-over-year to $10.5 million. Net Loss Per Share: Improved to $0.82 from a $1.16 loss in Q2 2025. Rental Revenue: Increased $2.8 million or 67% year-over-year, mainly due to the Nike lease termination transaction. Landlord Segment Operating EBITDA: $600,000, improved by $3.6 million year-over-year; excluding Nike lease effects, improved by 23%. Hospitality Segment Operating EBITDA: Positive approximately $280,000, an improvement of $3.1 million year-over-year. Entertainment Segment Operating EBITDA: Declined $1 million or 23% year-over-year, driven by rooftop concert expenses and decreased sponsorship revenue. General and Administrative Expense: Totaled $6.6 million, a $1.7 million or 20% improvement year-over-year; excluding restructuring costs, improved by $2.9 million or 35%. Capital Expenditures: Totaled $14.8 million in the second quarter. Cash Position: Net cash of $88.9 million, with $127 million in cash equivalents and restricted cash as of June 30, 2026. Las Vegas Ballpark Merchandise Sales: Increased over 50% year-over-year, driven by Athletics games; Aviators retail sales increased 8% year-over-year despite 7 fewer games. Sadie's Garden Bar Revenue: Increased 125% year-over-year compared to when the outdoor bar was not managed directly by SEG. Warning! GuruFocus has detected 6 Warning Signs with SEG. Is SEG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Seaport Entertainment Group Inc (NYSE:SEG) achieved positive operating EBITDA and positive non-GAAP adjusted net income for the first time in company history, marking a significant financial milestone. The company has successfully reduced its trailing 12-month general and administrative costs by over 20% in the past nine months, from $34 million to less than $27 million. Leasing activity is strong, with available space at the Seaport reduced from roughly 150,000 square feet to less than 50,000 square feet, representing just over 10% of total space. The rooftop concert series at Pier 17 performed well, hosting 22 shows with a 91% sell-through rate and strong demand for premium upsell offerings. The Las Vegas Aviators secured a playoff spot, and the ballpark hosted record-breaking events, including a sold-out six-game series with The Athletics and Banana Ball, driving record food and beverage and merchandise sales. The company's first internally developed restaurant concept, Sadie's, generated positive operating EBITDA in its first full quarter, exceeding expectations. Management anticipates more than $20 million in incremental annualized operating EBITDA from over 194,000 square feet of non-income producing space opening in the next 18 months. The company's legacy full-service restaurants have faced softer top-line sales, requiring ongoing evaluation of menu optimization and marketing strategies. Entertainment segment operating EBITDA declined 23% year-over-year due to increased repair and maintenance expenses and decreased sponsorship revenue following the non-renewal of a legacy sponsor (Chase). Equity in earnings from unconsolidated ventures declined 61% year-over-year, reflecting lower EBITDA from Lawn Club and reduced earnings from the John George Restaurant Group. The company expects quarterly variability due to tenant opening timing, event scheduling, and seasonality, and does not expect the same level of per-share performance in the next three quarters. Leasing timelines for the remaining vacant spaces are expected to take longer as the company seeks the right tenants and deal structures for smaller footprints. The company recorded an additional $1.4 million loss on the sale of 250 Water Street related to estimated post-closing obligations. Q: What is the company's updated outlook for capital expenditures and the timeline for spending?A: CFO Lenah Elaiwat confirmed the company's CapEx guidance remains in the $70 million to $90 million range for the full year, with approximately $20 million spent in the first half of 2026. The remaining $50 million to $70 million is earmarked for committed projects over the next two years, aligning with the company's path to initial stabilization in 2028. CEO Matt Partridge added that spending will trail construction progress, with dollars expected to be fully deployed by mid-2028. Q: Can you provide details on the new event space at Pier 17 and how it will be programmed?A: CEO Matt Partridge described the new event space as highly flexible, featuring a dedicated ground-floor entrance and elevator access to the second, third, and fourth floors, all with sweeping views of the Manhattan skyline and Brooklyn Bridge. The design will accommodate a wide range of uses, from corporate offsites and small conventions to product launches and consumer-facing activations, with infrastructure built in to make it easy for clients to activate the space. Q: Will the company use internally developed concepts like Sadie's for the remaining vacant space, or will it lease to third parties?A: CEO Matt Partridge explained that the company will continue to operate systemically important venues internally, such as Sadie's, the concert venue, and the event space. However, for smaller restaurant and shop spaces, the company will prioritize leasing to third-party tenants who can provide unique, entrepreneurial concepts. He emphasized a focus on securing "one-of-ones" rather than chains, which is why negotiations for the remaining spaces are taking longer. Q: Are there any delays in the construction or opening timelines for the upcoming tenants and projects?A: CEO Matt Partridge stated there are no significant delays. The Balloon Museum is on track to open shortly, and the event space is progressing well following the Nike lease termination. Meow Wolf and the new restaurant concepts, including Public Records, Flanker, and Hidden Boot Saloon, are all on pace with their expected timelines. Q: What is the status of the potential sale of 85 South Street?A: CEO Matt Partridge confirmed the company is still exploring a sale but has experienced "starts and stops" in the process. He noted that the company will remain quiet on progress until a transaction is reached to maintain negotiating leverage, similar to the approach taken with the 250 Water Street sale. Q: How does the company's current performance compare to initial expectations when Matt Partridge took over as CEO?A: CEO Matt Partridge acknowledged that the path has not been linear, with both lucky breaks and setbacks. However, he expressed pride in the team's execution over the past nine to ten months and confirmed the company remains on track with its three-plus-year plan to achieve initial stabilization of existing assets by 2028. Q: What is the expected annualized operating EBITDA contribution from the new leases and projects that have not yet opened?A: CEO Matt Partridge confirmed the figure is just over $26 million in annualized operating EBITDA, as detailed in the supplemental materials. This represents the potential contribution from over 194,000 square feet of non-income producing space, including the Balloon Museum, Meow Wolf, and other new concepts, which is yet to materialize in current financial results. Q: Is there further room to reduce general and administrative (G&A) costs below the current run rate?A: CEO Matt Partridge indicated there is more room for improvement. The company is beginning its 2027 budgeting process and will continue to focus on cost reduction. He noted that several legacy service contracts and arrangements are coming up for expiration, providing opportunities to renegotiate or eliminate them, with full-year benefits expected to be reflected in 2027. Q: Have expectations for stabilized EBITDA in 2028 changed given the company's faster-than-expected progress?A: CEO Matt Partridge stated that expectations have not changed, but accelerating positive earnings earlier will help with cash burn. He identified the event space as the most volatile component of the pipeline, with models ranging from optimistic to conservative. The company remains focused on ramping up bookings and operations for the event space as quickly as possible. Q: Can you elaborate on the loss of a rooftop sponsor and the plan to replace that revenue?A: CEO Matt Partridge revealed that Chase, a founding sponsor of the Pier 17 rooftop concert series, did not renew its agreement due to a shift in their marketing priorities toward more exclusive experiences. The company is in active discussions with potential replacement sponsors across financial services, entertainment, and other sectors. He noted that these are typically multi-year deals, so replacing the sponsorship income will take time. Q: What is driving the decline in Lawn Club's EBITDA, and is there a plan to reverse the trend?A: CFO Lenah Elaiwat explained that the year-over-year decline is primarily due to the shift of the Sadie's Garden Bar operation from the Lawn Club to SEG's direct management. This is a transfer of revenue between venues rather than a fundamental decline. CEO Matt Partridge added that the Lawn Club achieved an all-time record revenue month in July, and the team expects a strong second half of the year. Q: Are there any updates on the share repurchase program or plans to raise capital?A: CEO Matt Partridge stated there is no new news. The shelf offering and buyback program remain tools in the toolbox. The company will gain better clarity on cash burn as opening timelines and capital costs firm up, which will influence whether the buyback becomes actionable. He reiterated that there is no imminent capital raising, and the company is focused on executing its plan to reach 2028 stabilization. Q: What are the current trends in leasing rates and pricing in the New York City market?A: CEO Matt Partridge noted that leasing rates are firmer today than a year ago, both broadly in the city and specifically at the Seaport. He highlighted strength in the Midtown office corridor and said the Seaport is gaining pricing power as the company fills in occupancy. He emphasized that demand is not an issue; rather, the company is being judicious in evaluating tenant mix to support its place For the complete transcript of the earnings call, please refer to the full earnings call transcript.

NEW YORK, August 05, 2026--(BUSINESS WIRE)--Seaport Entertainment Group Inc. (NYSE: SEG) ("Seaport Entertainment Group," "SEG," "we," "our," or the "Company") announced today its operating and financial results for the quarter ended June 30, 2026. "The second quarter was our strongest to date, with each business segment profitable for the first time in our two-year history. Our emphasis on delivering unique in-person experiences through a growing events calendar and increased set of offerings are resulting in more visitors, more energy, and more reasons to return to our destinations," said Matt Partridge, President and Chief Executive Officer of Seaport Entertainment Group. "With the upcoming opening of Balloon Museum at the Tin Building, the Las Vegas Aviators once again positioned for a playoff run, and an exciting pipeline of new concepts and activations coming to both New York and Las Vegas, we believe the progress we’ve made is building momentum to deliver long-term value for our communities, shareholders and partners." Recent Updates Successfully opened Sadie’s and Sadie’s Garden Bar in the Seaport, with Sadie’s Garden Bar generating a 125% increase in year-over-year revenue compared to non-SEG managed operations in the prior year. Hosted the 50th annual Macy's 4th of July Fireworks® at the Seaport as part of America's 250th anniversary celebrations. Appointed Rebecca Sachs as Chief Administrative Officer and Corporate Secretary. The Las Vegas Aviators clinched a spot in the 2026 Pacific Coast League Playoffs, marking their second consecutive appearance in the MiLB Triple-A Playoffs. Finalized the lease termination with Nike and received $3.7 million in accelerated rent and termination fees; the Company regained possession of the space, enabling the commencement of its buildout of the Pier 17 Event Space. Net Loss Attributable to Common Stockholders improved 29.2% year-over-year to ($10.5) million and, on a per share basis, improved 29.3% year-over-year to ($0.82) per basic and diluted share. Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders improved 104.3% year-over-year to $0.3 million and, on a per share basis, improved 103.4% to $0.02 per basic and diluted share. Select Year-to-Date 2026 Results Completed the sale of the 250 Water Street development site for $143.0 million in February 2026, generating net proceeds of $76.1 million after repaying $61.3 million of variable-rate debt and closing costs. Executed a five-year lease with Lux Entertainment to open its U.S. flagship of Balloon Museum, the award-winning interactive contemporary art experience, in the Tin Building. Announced a 10-year management and lease agreement with Brooklyn-based arts, culture, and hospitality company, Public Service, the creative and curatorial team behind Public Records. The Rooftop at Pier 17 named by the 2026 Rolling Stone Audio Awards as the Best Outdoor Music Venue in the country. Leased or programmed occupancy of the Seaport neighborhood at 89%. Net Loss Attributable to Common Stockholders increased (16.9%) year-over-year to ($54.6) million and, on a per share basis, increased (16.0%) year-over-year to ($4.27) per basic and diluted share. Non-GAAP Adjusted Net Loss Attributable to Common Stockholders improved 41.8% year-over-year to ($17.6) million and, on a per share basis, improved 42.4% to ($1.37) per basic and diluted share. Quarterly Results The table below provides a summary of the Company’s unaudited consolidated operating and financial results for the three months ended June 30, 2026 and June 30, 2025: Year-to-Date Results The table below provides a summary of the Company’s unaudited consolidated operating and financial results for the six months ended June 30, 2026 and June 30, 2025: Balance Sheet As of June 30, 2026, the Company had $127.0 million in cash, cash equivalents and restricted cash and $38.1 million of debt outstanding at a fixed interest rate of 4.9%. The Company’s outstanding debt is asset-specific, secured debt, and the maturity date is in 2038. Investor Conference Call and Webcast The Company will host a conference call to present its second quarter 2026 results on Thursday, August 6, 2026, at 8:30 AM ET. A live audio webcast of the conference call will be available in listen-only mode through the "Investors" section of the Company’s website at www.seaportentertainment.com. Participants are encouraged to log in ten minutes prior to the scheduled start time to register. A replay of the audio webcast will be available on the Company’s website shortly after the conclusion of the call and until August 20, 2026. To dial into the live Telephone Conference Call: Domestic: 1-877-407-3982International: 1-201-493-6780 Conference Call Playback: Domestic: 1-844-512-2921International: 1-412-317-6671Passcode: 13761098 About Seaport Entertainment Group Seaport Entertainment Group (NYSE: SEG) is a premier entertainment and hospitality company that owns, operates, and develops a unique collection of assets positioned at the intersection of entertainment and real estate. Seaport Entertainment Group’s focus is to deliver unparalleled experiences through a combination of restaurant, entertainment, sports, retail and hospitality offerings integrated into one-of-a-kind real estate that redefine entertainment and hospitality. For more information, please visit www.seaportentertainment.com. Safe Harbor and Forward-Looking Statements This press release includes forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to: risks related to macroeconomic conditions; risks related to the impact of tariffs and global trade disruptions on the Company and its tenants, including impacts on inflation, interest rates, supply chains and consumer sentiment and spending; changes in discretionary consumer spending patterns or consumer tastes or preferences; risks associated with the Company’s investments in real estate assets and trends in the real estate industry; the Company’s ability to obtain operating and development capital on favorable terms, or at all; the availability of debt and equity capital; the Company’s ability to renew its leases or re-lease available space; the Company’s ability to compete effectively; the impact of uncertainty around, and disruptions to, the Company’s supply chain; risks related to the concentration of the Company’s properties and operations in New York City and the Las Vegas area; social, political and economic instability, unrest and other circumstances beyond the Company’s control which could adversely affect the Company’s business operations; adverse changes in laws or regulations governing the Company’s operation, changes in the interpretation thereof, or newly enacted laws or regulations could require changes to the Company’s business practices, adversely impact the Company’s revenues and/or impose additional costs on the Company; extreme weather conditions or climate change that may cause property damage or interrupt business; the impact of water and electricity shortages on the Company’s business; the Company’s ability to successfully identify, acquire, develop, and manage properties on terms that are favorable to it; the contamination of the Company’s properties by hazardous or toxic substances; catastrophic events or geopolitical conditions that may disrupt the Company’s business; actual or threatened terrorist activity and other acts of violence, or the perception of a heightened threat of such events; losses that are not insured or that exceed the applicable insurance limits; risks related to the disruption or failure of information technology networks and related systems – both the Company’s and those operated and managed by third parties; the Company’s ability to attract and retain key personnel; the Company’s inability to control certain properties due to the joint ownership of such property and inability to successfully attract desirable strategic partners, including joint venture partners; risks related to the concentration of ownership of the Company’s common stock by Pershing Square; risks related to the Company’s separation from, and relationship with, Howard Hughes Holdings Inc. ("Howard Hughes"); and the other factors detailed in the Company’s filings with the SEC. Forward-looking statements speak only as of the date of this press release. The Company is under no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Non-GAAP Financial Measures Our reported results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also disclose Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders and Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders Per Share, each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they provide a meaningful supplement to the Company’s operating performance and period-over-period changes without regard to certain potential distortions or certain non-cash items. Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders and Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders Per Share do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements. Accordingly, they should not be considered alternatives to net loss as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. To derive Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders, GAAP net loss attributable to common stockholders is adjusted to exclude depreciation and amortization, as well as gains and losses from the sale of assets, gains or losses on extinguishment of debt, and provisions for impairment, and these adjustments include the pro rata share of such adjustments of unconsolidated subsidiaries. Additionally, adjustments are made for non-cash revenues and expenses such as straight-line rental revenue and expenses, amortization of above- and below-market lease related intangibles, and non-cash compensation; other non-recurring items such as termination fees, leadership transition costs, corporate restructuring costs, and legal settlements; and certain capitalized items such as capitalized interest. Please see the reconciliation table provided in this press release for a reconciliation of Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders and Non-GAAP Adjusted Net Income (Loss) Attributable to Common Stockholders Per Share to the most directly comparable GAAP measure of net loss. Availability of Information on SEG’s Website and Social Media Channels Investors and others should note that SEG routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the SEG Investor Relations website. The Company uses these channels as well as social media channels (e.g., LinkedIn www.linkedin.com/company/new-york-seaportentertainment) as a means of disclosing information about the Company's business to our customers, employees, investors, and the public. While not all of the information that the Company posts to the SEG Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in SEG to review the information that it shares through its website and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Email Alerts" in the "Resources" section of the SEG Investor Relations website at https://ir.seaportentertainment.com/resources/email-alerts. The contents of these websites are not incorporated by reference into this press release or any report or document SEG files with the SEC, and any references to the websites are intended to be inactive textual references only. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805036530/en/ Contacts Investor Relations:Seaport Entertainment Group Inc.T: (212) [email protected] Media Relations:[email protected]

NEW YORK, May 06, 2026--(BUSINESS WIRE)--Seaport Entertainment Group Inc. (NYSE: SEG) ("Seaport Entertainment Group," "SEG," "we," "our," or the "Company") announced today its operating and financial results for the quarter ended March 31, 2026. "We entered 2026 with strong momentum, and the energy across our portfolio is building as we move into our busiest period of the year. With Sadie’s opening, Balloon Museum coming to the Tin Building, The Rooftop at Pier 17 concert series returning, and the Las Vegas Aviators’ season underway, we are giving people more reasons to show up, connect, and engage," said Matt Partridge, President and Chief Executive Officer of Seaport Entertainment Group. "In a world where digital content is everywhere, in person experiences matter more and more, and the authenticity of those experiences is central to creating the kinds of moments that drive visitation, deepen guest engagement, and build long-term value across our destinations." Recent Updates Disclosed the previously announced 10-year management and lease agreement signed in Q4 2025 with a Brooklyn-based arts, culture, and hospitality concept is with Public Service, the creative and curatorial team behind Public Records. Public Service is opening its first experience in Manhattan within the Seaport in approximately 11,000 square feet in the historic Cobblestones. Opened Sadie’s, an all-day New American neighborhood restaurant, and Sadie’s Garden Bar, an expansive outdoor bar on the historic Cobblestones that hosts regular programming and large-scale events. Transitioned GITANO NYC, a modern Mexican waterfront restaurant and nightlife destination occupying approximately 15,000 square feet on Pier 17, from a license agreement to a lease effective April 1, 2026. Select First Quarter 2026 Results Completed the sale of the 250 Water Street development site for $143.0 million in February 2026, generating net proceeds of $76.1 million after repaying $61.3 million of variable-rate debt and closing costs. Executed a five-year lease with Lux Entertainment to open its U.S. flagship of Balloon Museum, the award-winning interactive contemporary art experience, in the Tin Building. Lux Entertainment further announced the museum will feature a major installation from renowned artist, Marina Abramović. The Rooftop at Pier 17 was named by the 2026 Rolling Stone Audio Awards as the Best Outdoor Music Venue in the country. Q1 2026 Net Loss Attributable to Common Stockholders increased 38.3% year-over-year to ($44.1) million and, on a per share basis, increased 38.2% year-over-year to ($3.47) per basic and diluted share. Q1 2026 Non-GAAP Adjusted Net Loss Attributable to Common Stockholders improved 21.4% year-over-year to ($17.9) million and, on a per share basis, improved 21.2% to ($1.41) per basic and diluted share. Quarterly Results The table below provides a summary of the Company’s unaudited consolidated operating and financial results for the three months ended March 31, 2026 and March 31, 2025: Balance Sheet As of March 31, 2026, the Company had $144.7 million in cash, cash equivalents, and restricted cash and $39.1 million of debt outstanding at a fixed interest rate of 4.9%. The Company’s outstanding debt is asset-specific, secured debt, and the maturity date is in 2038. Investor Conference Call and Webcast The Company will host a conference call to present its first quarter 2026 results on Thursday, May 7, 2026, at 8:30 AM ET. A live audio webcast of the conference call will be available in listen-only mode through the "Investors" section of the Company’s website at www.seaportentertainment.com. Participants are encouraged to log in ten minutes prior to the scheduled start time to register. A replay of the audio webcast will be available on the Company’s website shortly after the conclusion of the call and until May 21, 2026. To dial into the Telephone Conference Call: Domestic: 1-800-717-1738 International: 1-646-307-1865 Conference Call Playback: Domestic: 1-844-512-2921 International: 1-412-317-6671 Passcode: 1111876 About Seaport Entertainment Group Seaport Entertainment Group (NYSE: SEG) is a premier entertainment and hospitality company formed to own, operate, and develop a unique collection of assets positioned at the intersection of entertainment and real estate. Seaport Entertainment Group’s focus is to deliver unparalleled experiences through a combination of restaurant, entertainment, sports, retail, and hospitality offerings integrated into one-of-a-kind real estate that redefine entertainment and hospitality. For more information, please visit www.seaportentertainment.com. Safe Harbor and Forward-Looking Statements This press release includes forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to: risks related to macroeconomic conditions; risks related to the impact of tariffs and global trade disruptions on the Company and its tenants, including impacts on inflation, interest rates, supply chains and consumer sentiment and spending; changes in discretionary consumer spending patterns or consumer tastes or preferences; risks associated with the Company’s investments in real estate assets and trends in the real estate industry; the Company’s ability to obtain operating and development capital on favorable terms, or at all; the availability of debt and equity capital; the Company’s ability to renew its leases or re-lease available space; the Company’s ability to compete effectively; the impact of uncertainty around, and disruptions to, the Company’s supply chain; risks related to the concentration of the Company’s properties and operations in New York City and the Las Vegas area; social, political and economic instability, unrest and other circumstances beyond the Company’s control which could adversely affect the Company’s business operations; adverse changes in laws or regulations governing the Company’s operation, changes in the interpretation thereof, or newly enacted laws or regulations could require changes to the Company’s business practices, adversely impact the Company’s revenues and/or impose additional costs on the Company; extreme weather conditions or climate change that may cause property damage or interrupt business; the impact of water and electricity shortages on the Company’s business; the Company’s ability to successfully identify, acquire, develop, and manage properties on terms that are favorable to it; the contamination of the Company’s properties by hazardous or toxic substances; catastrophic events or geopolitical conditions that may disrupt the Company’s business; actual or threatened terrorist activity and other acts of violence, or the perception of a heightened threat of such events; losses that are not insured or that exceed the applicable insurance limits; risks related to the disruption or failure of information technology networks and related systems – both the Company’s and those operated and managed by third parties; the Company’s ability to attract and retain key personnel; the Company’s inability to control certain properties due to the joint ownership of such property and inability to successfully attract desirable strategic partners, including joint venture partners; risks related to the concentration of ownership of the Company’s common stock by Pershing Square; risks related to the Company’s separation from, and relationship with, Howard Hughes Holdings Inc. ("Howard Hughes"); and the other factors detailed in the Company’s filings with the SEC. Forward-looking statements speak only as of the date of this press release. The Company is under no obligation to publicly update or revise and forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Non-GAAP Financial Measures Our reported results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also disclose Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share, each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they provide a meaningful supplement to the Company’s operating performance and period-over-period changes without regard to certain potential distortions or certain non-cash items. Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements. Accordingly, they should not be considered alternatives to net loss as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures. To derive Non-GAAP Adjusted Net Loss Attributable to Common Stockholders, GAAP net loss attributable to common stockholders is adjusted to exclude depreciation and amortization, as well as gains and losses from the sale of assets, gains or losses on extinguishment of debt, and provisions for impairment, and these adjustments include the pro rata share of such adjustments of unconsolidated subsidiaries. Additionally, adjustments are made for non-cash revenues and expenses such as straight-line rental revenue and expenses, amortization of above- and below-market lease related intangibles, and non-cash compensation; other non-recurring items such as termination fees, leadership transition costs, corporate restructuring costs, and legal settlements; and certain capitalized items such as capitalized interest. Please see the reconciliation table provided in this press release for a reconciliation of Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share to the most directly comparable GAAP measure of net loss. Availability of Information on SEG’s Website and Social Media Channels Investors and others should note that SEG routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the SEG Investor Relations website. The Company uses these channels as well as social media channels (e.g., LinkedIn www.linkedin.com/company/new-york-seaportentertainment) as a means of disclosing information about the Company's business to our customers, employees, investors, and the public. While not all of the information that the Company posts to the SEG Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in SEG to review the information that it shares through its website and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Email Alerts" in the "Resources" section of the SEG Investor Relations website at https://ir.seaportentertainment.com/resources/email-alerts. The contents of these websites are not incorporated by reference into this press release or any report or document SEG files with the SEC, and any references to the websites are intended to be inactive textual references only. View source version on businesswire.com: https://www.businesswire.com/news/home/20260506515731/en/ Contacts Investor Relations: Seaport Entertainment Group Inc. T: (212) 732-8257 [email protected] Media Relations: [email protected]

This article first appeared on GuruFocus. Net Loss Improvement: 24% year-over-year improvement in net loss for 2025. Non-GAAP Adjusted Net Loss Improvement: 49% year-over-year improvement in non-GAAP adjusted net loss for 2025. Revenue: Fourth quarter 2025 revenue was $29.5 million, a 7% increase year-over-year; full year 2025 revenue was $130.4 million, flat compared to 2024. Hospitality Revenue Decline: 23% decline in Q4 2025 on a pro forma basis, primarily due to lower performance of the Tin Building. Entertainment Revenue Increase: 68% increase in Q4 2025 year-over-year, driven by internalization of operations in Las Vegas. Landlord Rental Revenue Increase: 14% increase in Q4 2025 year-over-year on a pro forma basis. Consolidated Segment Adjusted EBITDA: Improved by $1.3 million year-over-year in Q4 2025 on a pro forma basis. General and Administrative Expenses: $6.8 million in Q4 2025, a 31% improvement year-over-year. Interest Expense: Increased by $3.3 million in Q4 2025 compared to the prior year quarter. Cash and Cash Equivalents: Year-end 2025 balance was over $87 million; pro forma balance post-250 Water Street sale was $163 million. Long-term Debt: Reduced to $100.4 million by year-end 2025. Warning! GuruFocus has detected 4 Warning Sign with SEG. Is SEG fairly valued? Test your thesis with our free DCF calculator. Release Date: March 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Seaport Entertainment Group Inc (NYSE:SEG) achieved a 24% year-over-year improvement in net loss and a 49% improvement in non-GAAP adjusted net loss for 2025. The sale of 250 Water Street generated net proceeds of approximately $75 million, eliminating $7 million of annual cash burn related to interest expense and carrying costs. The new lease with Lux Entertainment for the Balloon Museum is expected to improve the company's pro forma annual EBITDA by more than $22 million. SEG's Las Vegas Aviators won the 2025 Pacific Coast League Championship, enhancing the Seaport's reputation as a premier event destination. The company has a strong cash position with $163 million in cash, restricted cash, and cash equivalents, providing liquidity and optionality for future investments. The process of finalizing the sale of 250 Water Street took longer than anticipated, indicating potential challenges in executing large transactions. The closure of the Tin Building as a culinary experience highlights historical challenges and the need for a fundamental repositioning of the asset. Hospitality segment revenues declined by 23% in Q4 2025 on a pro forma basis, primarily due to lower performance of the Tin Building. Interest expense increased by $3.3 million in Q4 2025 compared to the prior year, due to the suspension of interest capitalization on 250 Water Street. The landlord segment's 2025 consolidated adjusted EBITDA declined 55% year-over-year on a pro forma basis, primarily due to nonrecurring charges. Q: How much of the $163 million cash pro forma is committed to current projects at the Seaport, and what are the plans for the remaining funds? A: Lenah Elaiwat, CFO, stated that approximately $70 million to $90 million is expected to be used for current projects, with an initial target range of $100 million to $125 million for stabilization. CEO Matthew Partridge added that they are evaluating opportunities in hospitality, entertainment, and event spaces, and may also consider using the buyback program depending on stock performance. Q: Are there any internal hurdles for achieving a 20% return on the event space investment? A: Matthew Partridge, CEO, explained that while the hospitality space typically has low margins, the events business offers better margins. They aim to leverage existing talent to improve flow-through and focus on growing earnings efficiently, though no specific financial targets have been set yet. Q: What is the status of the remaining space at the Seaport, and what growth can it drive? A: Matthew Partridge, CEO, mentioned that over 50,000 square feet remain, with one-third being restaurant-oriented. They are considering complementary restaurant concepts and expect the Balloon Museum and other attractions to drive visitation, benefiting existing and future food and beverage operations. Q: What are the plans for special events at the Seaport, and how will they drive engagement? A: Matthew Partridge, CEO, highlighted plans for diverse programming, including concerts, cultural events, and sporting events like the FIFA World Cup. These initiatives aim to attract visitors and support local businesses, creating a vibrant community hub. Q: What criteria will trigger the stock buyback program, and how will it be executed? A: Matthew Partridge, CEO, stated that while they believe the stock is undervalued, buybacks will be used opportunistically. The decision will be made by the Board, considering stock performance and capital allocation alternatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, March 5, 2026 at 8:30 a.m. ET Chief Executive Officer — Matthew Morris Partridge Chief Financial Officer — Lina Eliwat Need a quote from a Motley Fool analyst? Email [email protected] Matthew Morris Partridge: Thanks, Jason, and good morning, everyone. As we outlined during our inaugural earnings call last March, our focus in the first full year as a stand-alone public company was to address multiple opportunities for improvement, including outsized priorities within the Seaport, as we work to position the organization as a scalable real estate-centric hospitality and entertainment company. Looking back and taking stock of our accomplishments, we made tremendous progress in 2025 and year to date 2026, addressing these opportunities. Some of our more notable achievements in 2025 include generating a 24% year-over-year improvement in our net loss, a 49% year-over-year improvement in our non-GAAP adjusted net loss, leasing, programming, and finalizing development plans for approximately 153,000 square feet across the Seaport, including signing agreements with Meow Wolf, Planker Kitchen and Sports Bar, Hidden Boots Saloon, Willits NYC, Cork Wine Bar, and other exciting additions I will discuss shortly, internalizing food and beverage operations across many of our company wholly owned and joint venture owned restaurants in the Seaport neighborhood, Las Vegas Aviators winning the 2025 Pacific Coast League championship, the franchise's first PCL title since 1988, and hosting and competing in the Minor League Baseball Triple-A National Championship Game, further establishing the Seaport as a premier event destination by hosting multiple rooftop and neighborhood-wide marquee events, including more than 60 concerts, the Macy’s Fourth of July Fireworks, and the New York City Wine and Food Festival, and putting 250 Water Street under contract to sell, which subsequently closed last month, early February. The process of finalizing the sale of 250 Water Street was longer than anticipated. After completing additional diligence and evaluating market conditions, we believe this transaction represented the best risk-adjusted outcome for the company. The transaction will generate net proceeds of approximately million after we work through some post-closing obligations, which should largely be resolved in 2026. With the sale complete, we have eliminated $7 million of cash burn related to interest expense and carry costs, and we now have additional capital on our balance sheet and a clearer runway to execute against our strategic priorities. In addition to the 250 Water Street sale, the other significant announcement in early 2026 was the closure of the Tin Building in its current form as a culinary experience. We are very appreciative of Chef Jean-Georges, his team, and the Tin Building staff for their partnership, dedication, and effort. Tin Building was an ambitious undertaking and Chef Jean-Georges created a truly beautiful and distinct destination. Our partnership with the Chef and his team remains strong, and we look forward to continuing to work with them both at the Seaport and more broadly as a 25% owner in Jean-Georges Restaurants. Given the historical challenges of the Tin Building, we conducted a comprehensive assessment of the operating model and evaluated a range of alternatives. In the end, we concluded that the asset required a fundamental repositioning of both its use and operating structure to achieve long-term sustainability. As a result, we signed a new lease with Lux Entertainment to bring their highly Balloon Museum experience to the Tin Building, which will serve as their flagship U.S. location. For those of you who are less familiar with the concept, Balloon Museum is an award-winning large-format interactive contemporary art experience. To date, the Balloon Museum exhibitions have toured through 23 major cities across Europe, North America, and Asia, often within historic and landmark buildings and with works from internationally recognized artists. They have welcomed more than 7 million visitors globally, and when set alongside Meow Wolf, the Rooftop at Pier 17 concerts, existing and new restaurant offerings, our recently announced expanded event space, and other retail, cultural, and event-driven initiatives, Balloon Museum further complements the growing set of experiences within the Seaport that we believe will drive broad-based visitation by local residents, New Yorkers, and tourists alike. Under our agreement with Lux Entertainment, the initial lease term is five years with two five-year extension options. The base rent includes annual contractual escalations and a percentage rent component above a contractually established revenue threshold. From a capital standpoint, work is under way at an estimated cost of approximately $5 million with delivery to the tenant expected by the 2026. Lux Entertainment will complete its interior fit-out at its own expense, and they anticipate opening this summer. Strategically, this agreement fundamentally changes the financial profile of the Tin Building, transitioning it from a negative cash-burning operation to a stabilized positive free cash-flowing asset that further complements the broader programming of the neighborhood. When compared to the financial performance of the Tin Building in 2025, the Balloon Museum lease has the opportunity to improve the company's pro forma annual EBITDA by more than $22 million. This progress has positioned us for long-term financial stability, something this collection of assets has not experienced in recent history. In terms of our go-forward focus, we have some very exciting things on the horizon. During the fourth quarter, we signed a ten-year agreement with a renowned Brooklyn-based 11,000 square feet in the historic cobblestones. We plan to announce our partner and the name of the project in the coming months, and we believe this new concept, which is centered around a multifaceted, evolving hospitality and music experience, further expands on the diversified programming we are curating throughout the Seaport neighborhood. Additionally, we will open a new 400-seat, 1,000-person open container district that will be anchored by a new restaurant called Sadie’s. Sadie’s will occupy the first and second floors of a previously vacant restaurant space located at 19 Fulton Street and will include the outdoor garden bar that sits at the center of the historic pedestrian-only cobblestones. The restaurant and bar will feature New American food at an accessible price point, filling a need for a larger format communal and approachable restaurant within the Seaport. Sadie’s will also have a robust programming calendar featuring celebrations for seasonal, sporting, and cultural moments including events centered around music-driven activations, the Kentucky Derby, People World Cup, U.S. Open, America 250, Oktoberfest, and other evergreen programming. And finally, in January, we made the difficult decision to close the Malibu Farm location at Pier 17. We have had preliminary discussions regarding several replacement concepts that we believe could be additive to our overall plan for the Seaport, including replacing some of the culinary gaps that have been created with the closing of the Tin Building. Beyond the incoming entertainment and food and beverage opportunities, we intend to expand the previously announced Pier 17 event space from 17,500 square feet to more than 40,000 square feet across three floors with a focus on premium corporate, not-for-profit, convention, and social events. This will create one of the largest multifaceted event spaces in New York City featuring iconic, expansive views of the East River, Brooklyn Bridge, and Manhattan and Brooklyn skyline. All levels will be accessible via a dedicated ground floor elevator entrance and staircases with connectivity to the Rooftop at Pier 17. The event space will also leverage Pier 17’s other unique attributes including proximity to major transportation hubs, an access-controlled driveway, and adjacency to a dense mix of entertainment and dining options. Furthermore, the expanded event space at Pier 17 provides several strategic benefits to the company including further positioning the Seaport as a destination for large-scale meetings and events through integrated partnerships with third-party planners and caterers, creating a compelling weather contingency option that improves the rooftop’s utilization for non-concert events, diversifying our revenue sources with incremental weekday and off-peak demand, leveraging our existing infrastructure and capabilities—which were on display during our campus-wide activations during the New York City Wine and Food Festival and mid-July 4 fireworks—and improving utilization of space that was previously positioned for office use. While we are still finalizing some of the details for this project, including timing, we currently expect this initiative to generate long-term unlevered cash-on-cash returns above 20% with an estimated payback period under five years. We will provide more information about the event space on our first quarter earnings call. At the Rooftop at Pier 17, which was recently named by the 2026 Rolling Stone Audio Awards as the Best Outdoor Music Venue in the United States, our team is ramping up for the 2026 Seaport Concert Series, which begins May 2. This year builds on a strong 2025 season that delivered our highest ever total attendance and all-time highs in customer experience and staff friendliness scores. From a revenue optimization standpoint, we are focused on expanding premium upsell offerings at the Liberty Club and Patriot. These initiatives are designed to drive incremental high-margin revenue while enhancing the overall guest experience with more customized and differentiated hospitality offerings. Taking a step back and looking at the Seaport overall, as of December 31, the Seaport neighborhood was approximately 90% leased or programmed, leaving roughly 47,000 square feet of vacancy. On a pro forma basis for the Malibu Farm closure, this number is closer to 53,000 square feet. For the remaining vacancy, we are predominantly focused on complementary daily-needs and amenity-oriented tenants and incremental food and beverage opportunities where we have existing restaurant infrastructure. Since we became a stand-alone public company in August 2024, we have leased or programmed more than 220,000 square feet which we anticipate will result in additional stabilized EBITDA of more than $30 million. Lastly, before we shift along to Vegas, I do want to highlight that we are continuing to explore the sale of our 21-unit apartment building at 85 South Street. We will provide further updates on that transaction if or when it is completed. Moving west, the team in Las Vegas is transitioning from the winter activation, Enchant, back to regular season baseball programming. During the fourth quarter, we internalized the day-to-day operations of Enchant to strengthen our customer engagement and introduce new audiences to the ballpark. This process resulted in some transitional costs, but overall better positions us for improved execution and profitability in 2026. In terms of early demand for the baseball season, group and season ticket sales are pacing ahead of last year, including strong momentum for Big League Weekend when the Athletics face the Angels on March, followed by Opening Day for the Las Vegas Aviators, March 27. Additionally, after last year's hiatus, Las Vegas Ballpark will once again host the Savannah Bananas for three games starting April 30 with ticket sales currently outpacing 2024 levels. Overall, we are excited about the support for the team and how it is materializing in ticket sales. And from an operating standpoint, we expect incremental efficiencies in 2026 as we apply the learnings from Enchant and better control certain variable expenses. As a result, we expect continued margin improvement in 2026 across the entire Las Vegas operation. At the corporate level, we recently received Board approval to file a $150 million shelf registration statement and a $50 million stock repurchase program. The shelf gives us flexibility and allows us to access the capital markets efficiently in the future if a strategic opportunity makes sense. At the same time, with a strong balance sheet and our recent momentum, maintaining optionality to buy back stock could be a good long-term capital allocation decision. Both programs are tools for us as a public company that provide the ability to be opportunistic, but neither should be interpreted as an immediate plan to issue or repurchase securities. Finally, before I turn it over to Lina, I want to sincerely thank our team for their resilience and hard work and compassion. Their support of the company and fellow team members, especially through these transitional moments, has been tremendous. I am proud of the progress we have made. I am confident we will continue building on the strong momentum we saw through year-end 2025 and into 2026. With that, I will now turn the call over to Lina. Lina Eliwat: Thanks, Matt. Before I get into the company's fourth quarter and full year financial performance, I would like to remind everyone of some changes made at the start of 2025, including renaming our Sponsorship, Events, and Entertainment segment to Entertainment. In conjunction with this change, we reallocated sponsorship and events revenues and expenses to the respective segments that most appropriately reflect the source of the sponsorship or event. These changes are reflected in both the current and prior-year periods presented on our consolidated and combined statements of operations. Beginning in 2025, and in conjunction with the internalization of our food and beverage operations, we consolidated the Tin Building into our Hospitality segment. In prior years, the Tin Building was accounted for as an unconsolidated joint venture, and our share of net loss was reflected in the equity in earnings or losses from unconsolidated ventures line on our consolidated and combined statements of operations. In an effort to provide more comparable information, we will refer to the 2024 operating results on a pro forma basis reflecting the inclusion of the Tin Building as a consolidated entity during the prior-year period when providing year-over-year comparisons on this call. In addition, we will reference operating EBITDA, which excludes losses on assets held for sale, impairment charges, and other nonrecurring items included in other income or loss related to the segment or on a consolidated basis, to provide more comparable operating results. Fourth quarter and full year 2025 net loss attributable to common stockholders was $36.9 million and $116.7 million, respectively, representing a year-over-year improvement of 11% for Q4 2025 and 24% for the full year 2025. On a per share basis, net loss attributable to common stockholders was $2.89 in Q4 2025 and $9.18 for the full year 2025, representing a 2045% improvement, respectively. Non-GAAP adjusted net loss attributable to common stockholders was $17.5 million for the fourth quarter 2025 and $54.1 million for the full year, representing improvements of 949%, respectively, compared to the same periods in 2024. On a per share basis, non-GAAP adjusted net loss was $1.30 for the fourth quarter 2025 and $4.26 for the full year 2025, representing a year-over-year improvement of 184%, respectively. In the fourth quarter 2025, total consolidated revenues were $29.5 million, a 7% year-over-year increase when compared to pro forma 2024. For the full year 2025, total consolidated revenues were $130.4 million, which is essentially flat to full year 2024 consolidated revenue on a pro forma basis. As a reminder, consolidated revenues exclude the financial results of our unconsolidated ventures, such as the Lawn Club and our investment in Jean-Georges Restaurants, since they are reflected in the equity in earnings or losses from unconsolidated ventures line on our consolidated and combined statements of operations. In Hospitality, fourth quarter revenues declined 23% on a pro forma basis, primarily driven by lower performance at the Tin Building and unfavorable year-over-year comparisons resulting from events and activations in Q4 2024 that did not repeat in 2025. One of those activations was a holiday-themed partnership on the Rooftop at Pier 17 with The Dead Rabbit, a world-renowned Irish cocktail bar in Lower Manhattan. Another was a large-scale private event across multiple venues at Pier 17. Total food and beverage revenues within the Hospitality segment, inclusive of Lawn Club, declined 15% year over year. On a same-store basis, food and beverage revenue declined 20%, the most meaningful difference relating to Gitano, which was not included in the same-store revenues in the fourth quarter due to it being under construction during 2024. In the fourth quarter 2025, Hospitality consolidated adjusted EBITDA, including earnings from unconsolidated ventures, improved by $11 million year over year on a pro forma basis, mainly as a result of the $10 million impairment charge recognized in the prior year relating to warrants of Jean-Georges Restaurants, which were nearing expiration. Excluding this impairment and other items included in other income and loss, Hospitality operating EBITDA improved by 17% year over year on a pro forma basis, driven by better flow-through at the Tin Building, continued growth at the Lawn Club and Gitano—which continues to drive increased revenue as they refine their operations—as well as the cost savings realized from the internalization of food and beverage operations earlier in 2025. During the full year 2025, Hospitality revenue declined by 16% on a pro forma basis. The decline was primarily driven by overall performance at the Tin Building, reflecting both the closure of certain venues within the building and increasing top-line softness, as well as declines from certain legacy stand-alone restaurants. This was partially offset by the continued growth of Gitano and the incremental revenue generated from larger events such as the Macy’s Fourth of July Fireworks event. Total 2025 food and beverage revenue, including Lawn Club, declined 8% year over year. On a same-store basis, food and beverage revenue declined 5%. This more moderate decline reflects the exclusion of the non–Dead Rabbit holiday activation and closure of some of the Tin Building outlets in 2025. For the full year 2025, Hospitality consolidated adjusted EBITDA increased $10.5 million year over year on a pro forma basis, mainly reflective of the $10 million Jean-Georges warrant impairment recorded in 2024. Excluding other income and losses—which was primarily impacted by a one-time favorable Hospitality expense reimbursement in 2024—along with excluding the 2024 warrant impairment charge, Hospitality operating EBITDA increased 25% year over year. The improvement was predominantly driven by the internalization of food and beverage operations, disciplined cost-cutting controls at the Tin Building, more measured marketing spend across the portfolio, and continued strong performance at the Lawn Club and Gitano. Turning to the Entertainment segment, fourth quarter revenues increased 68% year over year, primarily driven by the internalization of Enchant’s operations in Las Vegas. Partially offsetting this initiative was the timing of Las Vegas Aviators sponsorship revenue, the absence of the seasonal holiday activations on the Rooftop at Pier 17 in 2025, and two fewer concerts in New York during the prior year’s comparable quarter. Despite hosting fewer shows during the period, concert series food and beverage revenue increased 3% year over year, driven by increased per-show attendance and higher per-customer spend. With the concert and baseball season ending in October, Q4 2025 Entertainment operating EBITDA increased 18% year over year, mainly from better flow-through achieved by foregoing the seasonal holiday activation on the Rooftop at Pier 17, but partially offset by the lower concert count compared to 2024. Total 2025 year-over-year Entertainment revenues increased 14% due to the internalization of Enchant operations in Las Vegas, increased sponsorship revenue in both New York and Las Vegas, and new revenue from previously referenced larger-format events. On a full-year basis, adjusted EBITDA for the Entertainment segment increased by 124% when compared to the prior year, benefiting from improved collections and reduced bad debt, as well as better flow-through by foregoing the seasonal holiday activation on the Rooftop at Pier 17. Our concert business also benefited from the internalization of food and beverage operations as well as strategic reductions in per-show operating expenses. Within the Landlord segment, fourth quarter rental revenue increased 14% year over year on a pro forma basis. This is mainly from the growth of our private events rental revenue, with large-scale events such as New York City Wine and Food Festival contributing to the current quarter improvements. These gains are partially offset by the termination of the ESPN lease in 2025, resulting in the loss of year-over-year comparable rental revenue in 2025. Landlord consolidated adjusted EBITDA declined by $10.1 million on a pro forma basis, primarily driven by a $7 million write-down of 250 Water Street to its final sales price. It was further impacted by the nonrepeating $2 million legal settlement proceeds recognized in 2024. Excluding these nonrecurring items, Landlord operating EBITDA declined 37% year over year on a pro forma basis as expenses increased relating to the timing of accrual for operating expenses such as cleaning, security, and utilities, along with the effects of the nonrepeating rent reserves placed in 2024. For the full year of 2025, rental revenue increased 21% year over year on a pro forma basis, driving most of the Landlord’s 18% year-over-year revenue growth. The increases to rental revenue were driven by private event rental activity—most notably Jordan Brand’s The One Tournament Global Finals event and the New York City Wine and Food Festival—as well as termination income associated with our Nike office lease, and a decrease in rent reserves compared to prior year. As a reminder, Nike exercised their termination within their lease but remains a tenant of Pier 17 through February 2027. The Landlord segment’s 2025 consolidated adjusted EBITDA declined 55% year over year on a pro forma basis, primarily due to $13.4 million of one-time nonrecurring charges. These include an $11 million loss on the write-down of 250 Water Street in conjunction with its classification as held for sale and a $2 million write-off of capital spent on the rooftop winter structure. Excluding these nonrecurring items, the Landlord segment operating EBITDA for the full year increased 36% year over year on a pro forma basis. The improvement reflects the previously mentioned revenue growth, reduced overhead compared to the pre-spin structure in prior year, and improved operating expense savings year over year. Overall, consolidated segment adjusted EBITDA for the fourth quarter 2025—which reflects segment performance before G&A, interest, depreciation, amortization, and includes results from unconsolidated ventures—improved by $1.3 million year over year on a pro forma basis. Excluding the nonrecurring items discussed earlier, such as the loss on 250 Water Street, the prior-year warrant impairment, and the favorable legal settlement recognized in the prior year, consolidated operating EBITDA increased 5% year over year on a pro forma basis in the fourth quarter. For the full year 2025, consolidated segment adjusted EBITDA improved by $2.8 million on a pro forma basis. Excluding the nonrecurring items—the 250 Water Street for-sale loss, the rooftop winter structure write-off, the prior-year warrant impairment, the favorable Hospitality expense reimbursement and legal settlement recorded in the prior year—consolidated operating EBITDA increased 33%, or more than $13 million, year over year on a pro forma basis. Overall, with total year-over-year revenue relatively stable, this bottom-line improvement was driven by reduced costs as our operating stabilizes in our first full year as a stand-alone public company as well as overall cost optimization initiatives we have implemented across each segment in 2025. During Q4 2025, we incurred general and administrative expenses of $6.8 million, an improvement of 31% when compared to the fourth quarter of prior year. For the full year 2025, G&A expenses were $42.8 million, representing a 32% improvement compared to 2024. Prior-year G&A was higher overall due to our predecessor’s cost structure and transitional expenses related to our separation from Howard Hughes. While there were significant G&A improvements achieved in 2025 through streamlining and optimizing operations, they were partially offset by $12 million in expenses related to our leadership transition. As we continue to stabilize our operating model, we expect to continue to improve upon our cost structure with Q4 2024 as our new benchmark. During the fourth quarter 2025, interest expense increased by $3.3 million compared to the comparable prior-year quarter, primarily due to interest expense capitalized on 250 Water Street in 2024 that did not recur in the current period and a decrease in interest earned on invested cash. As a reminder, we suspended interest capitalization on 250 Water Street midway through Q3 once the asset was classified as held for sale, resulting in higher reported interest expense in the fourth quarter 2025. For the full year, net interest income totaled just under $0.5 million, compared to net interest expense of $6.8 million in the prior year, a $7.2 million year-over-year improvement driven by higher interest income on invested cash, increased interest capitalization earlier in the year prior to the held-for-sale classification of 250 Water Street, and lower amortization of finance costs following our separation. Compared to 2024, equity in earnings or losses from unconsolidated ventures improved by $9.7 million year over year on a pro forma basis, and for the full year improved $11.5 million year over year on a pro forma basis. This is mainly a result of the $10 million impairment of the warrant previously described in 2024. Excluding the warrant impairment, equity in earnings or losses from unconsolidated ventures declined approximately $300,000 in the fourth quarter year over year on a pro forma basis and increased 169%, or $1.5 million, on a pro forma basis for full year. This is reflective of continued strength at the Lawn Club as it scaled through its second full year of operations. Capital expenditures in the fourth quarter 2025 totaled $2.8 million. For the full year, capital expenditures totaled $30.8 million. Excluding capitalized costs associated with 250 Water Street development, the majority of spending was related to Meow Wolf landlord work, rooftop winter structure, completion of Gitano and Riverdeck Bar build-outs, as well as other landlord work and maintenance capital costs across our existing operations. Long-term debt outstanding as of year-end was reduced to $100.4 million, reflecting a $1 million decrease primarily related to the scheduled principal amortization on the Las Vegas Ballpark loan. Net debt to gross sales at year end was approximately 2%. Subsequent to year end, and in conjunction with the sale of 250 Water Street, we paid off the $61.3 million variable-rate loan associated with the property, further strengthening our balance sheet. Our year-end 2025 cash, restricted cash, and cash equivalents balance was just over $87 million, and pro forma to reflect the proceeds from the sale of 250 Water Street, our cash, restricted cash, and cash equivalents balance would be $163 million. As we move through 2026, our cash position provides meaningful liquidity and optionality for the company as we explore various investment and capital allocation opportunities for the long-term benefit of the organization and our shareholders. With the progress made, we have materially improved the company's financial performance, strengthened the company's balance sheet, and laid the groundwork for sustainable long-term growth and value creation. We will now open for questions. Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. You may press 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from Matthew Erdner with JonesTrading. Please go ahead. Matthew Erdner: Hey, good morning, guys. Thanks for taking the question, and congrats on all the progress so far. Lina, you just mentioned that you guys have $163 million cash pro forma. How much of that is committed to, you know, current projects and getting them online at the Seaport? And then with whatever is remaining there, you know, what are you guys kind of targeting there for deployment? Lina Eliwat: Hey, Matt. Good morning. So we spent about $30 million in 2025 in capital. With our expectation for everything we have announced plus existing vacancy to get to stabilization is another—we expect around another $70 to $90 million. We had initially said at the onset a range of $100 to $125 million to get to stabilization. So I believe we are still, you know, expecting to target something within that range. Matthew Morris Partridge: Hey, Matt. In terms of capital allocation, you know, we are sort of at the front end of this. Obviously, we have been focused on the existing asset base. I think we are going to look at a lot of different things. Right? We are evaluating or we are starting to evaluate opportunities in the hospitality, entertainment, and event spaces. Obviously, that is core to what we are doing at the Seaport and what we do out in Las Vegas at the ballpark. I think we could potentially look at other assets similar to the Seaport, we could look at companies that operate within those businesses that have scalable intellectual property and brand recognition. But we could also be opportunistic and utilize the buyback program that we announced from a capital allocation standpoint and effectively reinvest into the company, depending on where the stock is trading. So we are going to be opportunistic. And I do not think we have any definitive path yet because we are sort of at the forefront of evaluating the opportunity. So— Matthew Erdner: Got it. That makes sense, and that is helpful. And then you know, you mentioned on the event space, kind of that 20% return there. Are there any internal hurdles that you guys are looking to achieve, you know, as you guys deploy this cash? Matthew Morris Partridge: I think it depends on the business. You know, obviously, the hospitality space is notorious for relatively low margins. I think the events business is a much better margin-oriented business. I think where we see some opportunity potentially is to leverage the existing team. We have a lot of talent in the building, and obviously, they are doing a great job executing on what we have. So if we can find things that complement the existing skill set, that is going to improve the flow-through of whatever we allocate capital to. So it is a moving target. I would not say we have any hard and fast financial targets yet, but, you know, we are obviously focused on growing earnings as efficiently as possible with the best flow-through possible. Matthew Erdner: Yep. Yep. Got it. And then, you know, as it relates to the remaining space at the Seaport, you know, have you had any discussions there? And then, you know, I guess, what additional growth do you think that can drive on top of the—call it, $33 million, $32 million of EBITDA that has been leased. Matthew Morris Partridge: Yeah. So we have, like Lina said—or maybe I said in the prepared remarks—we have got a little over 50,000 square feet left. You know, I would say a third of that is probably restaurant-oriented space, and it also includes the former Malibu Farm space. So we will be looking at some restaurant concepts that are complementary to all the stuff that we have announced and what still exists at the Seaport. I think beyond that, you know, we have got the Balloon Museum coming. We have Meow Wolf coming. We have the event space, and then we have the Rooftop at Pier 17 concert series. That is a great set of anchors. And then the removal of the Tin Building F&B, you know, I think that the anchor—or the amount of people that the anchors will drive—will benefit all the businesses, and then pulling some of the food and beverage supply out with the closure of the Tin Building and positioning it to Balloon Museum is going to help all the other F&B that we have either announced exist down here or that we will look to fill the existing vacancy with. Matthew Erdner: Got it. Got it. And then, you know, as it relates to kind of the special events, you know, you had the Wine and Food Festival last year. You know, do you have anything set up like that so far across the year? Is it, you know, going to be event-driven stuff like you said around the World Cup, you know, people going to the bars, interacting in the cobblestones and whatnot? Matthew Morris Partridge: Yeah. I think Sadie’s is definitely going to be a unique asset for us to program around. The Lawn Club has been very successful doing a lot of corporate events and social event-related business. And so I think those two concepts with the open container that we announced are going to give us a lot of flexibility. We are going to look at everything from doing concerts on the cobblestones or concerts out on the pier—obviously, we do them up on the Rooftop as well. I think FIFA and the World Cup are going to be a unique event this year. It is also America’s 250-year anniversary. So there will be a lot of activity during the summer around that, especially with the Fourth of July fireworks. We are going to do a lot of programming around cultural events and sporting events because I think, you know, whether it is watch parties, whether it is community-oriented events like what we have coming up this weekend around Holi, you know, we are going to do a lot of stuff down here, which I think will bring a lot of people down to the Seaport. It will give them an opportunity to experience everything we have down here, and it will support the businesses that we have got down here. Matthew Erdner: Yeah. Yeah. That is awesome. And then last one for me, and I will step out. Lina, you touched on it a little bit about G&A, but is there anything that we should expect kind of as a run rate throughout the year? Lina Eliwat: We have definitely been trending positively throughout the year on G&A, stabilizing our organizational structure, working through technology initiatives. We hope to continue that trend into 2026. Right now, I think Q4 is our new reference point, and we are continuing to try and refine that. But I would use Q4 as our reference point for right now. Matthew Morris Partridge: Yeah. I think it will be a little up and down, Matt. You know, Q1 is going to have some transitional costs related to the closures that we have announced, plus some other changes to the team. And then I think that will benefit us in the back half of the year. But it will be a little up and down this year. But I think, to Lina’s point, Q4 is a good reference point moving forward, and hopefully we can improve upon it. Matthew Erdner: Got it. Awesome. Thank you, guys. Appreciate it, and look forward to the continued progress. Matthew Morris Partridge: Thanks, Matt. Thanks, Matt. Operator: Next question, Patrick Stedelhofer with Kahn Brothers Group. Please go ahead. Patrick Stedelhofer: Hey, good morning, and congrats on all the recent announcements. Lina Eliwat: Thanks, Patrick. Patrick Stedelhofer: My first question is around the kind of criteria for the buyback. You have this great slide on the deck that shows that, you know, the stock is trading at $0.50 of a dollar or probably less than that. And, obviously, that is a great hurdle rate. And so a lot of companies use buybacks on weakness, but you could argue the stock has—it's been all weakness. So I am just curious what would cause you to pull the trigger on this buyback program, kind of when would you ramp it up? And how do you think about allocating it given what an incredible return on investment you can earn by doing this buyback program, which we are very happy to see. Matthew Morris Partridge: I appreciate the question. You know, for the buyback program, we will not put out any public comments related to parameters or timing. We will report after things are executed on, if and when we use it. Obviously, we think the stock is undervalued, especially given the slide that you are referencing in our supplemental. But we are also cognizant that we are building an organization that can grow over time, and we have relatively limited float. So that is always a consideration when you are using buybacks. This is my fifth public company that I have been part of. We have had buyback programs at all but one of them, and we use them opportunistically. And I think opportunistic is the approach that we will use, but that ultimately will be a Board decision, and we will continue to have those conversations with the Board as we look at the performance of the stock and our relative alternatives from a capital allocation perspective. Patrick Stedelhofer: Got it. And then the new Balloon Museum, just how do you view that as either complementing or competing with the Meow Wolf experience coming a year later? Just how do these two go together? Matthew Morris Partridge: Great question. You know, I think the Balloon Museum is definitely complementary. Both of those teams—the Meow Wolf team and the Balloon Museum—know each other, and there is a lot of mutual respect for one another. We spoke with Meow Wolf before moving forward with the Balloon Museum, and they were very supportive of it. So they are going to be complementary to one another. They are both ticketed experiences. They both have done very well in other markets. The Balloon Museum was here in 2023 and did exceptionally well a little farther up the river on Pier 36. So, you know, I think activity breeds more, and having them both open down here really gives the local population, New Yorkers, visitors—everybody—sort of a full-day opportunity to spend at the Seaport. Right? You can come down here for brunch, you can go to the Balloon Museum, you can have lunch, you can go to the Seaport Museum or do some shopping, stay for dinner and a concert, go out to some bars. So we are really trying to create a district that can support the local community because we have got a growing residential population down here, but that can also be a destination for an entire day for a family, a couple, an individual, or anybody in between. Patrick Stedelhofer: That is great. And on this apartment building you are monetizing or maybe monetizing, could you provide any more details around—kind of is it fully leased? Is it cash flowing? Just anything you can share about what you might be able to achieve by monetizing that asset. Matthew Morris Partridge: It is cash flowing. You know, there is a component of the units that are rent-stabilized. It is almost 100% leased. I think we have one or two vacant units. It has got a lot of interest. Obviously, we launched it at the end of 2025, the marketing process, knowing that it would be sort of a slow process to end the year and start the year, but the interest is definitely ramped up. So, you know, unlike 250 Water Street where we had some disclosure obligations related to the materiality of that sale, we will probably speak more to 85 South Street if and when we sell it rather than providing more real-time updates, just because providing real-time updates can sometimes put us at a competitive disadvantage when we are trying to work through a transaction. Patrick Stedelhofer: Understood. Every bit helps. And then last one from us, just how do you think about Vegas versus New York? Obviously, you have a lot happening at the Seaport and you are kind of local there. How do the Vegas properties still fit into the company given both the geographic remoteness of it and all the—just the less news from there. Thanks a lot. Matthew Morris Partridge: Yeah. I think, look, in Las Vegas, we have got a phenomenal facility with the ballpark. You know, it is at the center of Howard Hughes’s Summerlin community that they continue to add amenities to and grow the population around the ballpark. The fan base of the Aviators is largely a local population, so we would love to see Howard Hughes continuing to invest in that project. That ultimately will inure benefit to the baseball team. I think things like Enchant are where we can add a lot of value—doing 40 days of holiday activation and bringing that in-house and, ultimately, over the long term, being able to implement better cost controls and be a little more creative from a ticketing perspective because we have got a great ticketing team out there. Doing things like that in the off-season is only going to help the profitability of that overall operation out there. So I think we have got some room to create value. That being said, you know, I think live sports is a great business. It is a business that has seen tremendous value appreciation over time. So, you know, if and when somebody has an interest in the team, we will always listen. But I think we would pay some pretty high premium on the team and the ballpark given the quality of the facility and the quality of the operation that we have out there. Patrick Stedelhofer: Wonderful. Thank you so much. Matthew Morris Partridge: Thanks, Patrick. Operator: Thank you. I would like to turn the floor over to Matt for closing remarks. Matthew Morris Partridge: Thanks, everybody. Appreciate the interest and support. We look forward to providing more updates on our first quarter earnings call in early May. Have a great rest of the week. Operator: This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation. Before you buy stock in Seaport Entertainment Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Seaport Entertainment Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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