Seaport Entertainment Group Reports First Quarter 2025 Results
“We had a productive start to the year, successfully internalizing our food and beverage operations, advancing programming across the Seaport, and positioning our businesses and partners for a successful launch into an active peak spring and summer season,” said Anton Nikodemus, Chairman, President and Chief Executive Officer of Seaport Entertainment Group. “In recent weeks, we celebrated the grand opening of GITANO NYC, kicked off the 2025 concert season on The Rooftop at Pier 17 with back-to-back sellouts, and watched the Las Vegas Aviators emerge as the first-place team in the MiLB Triple-A Pacific Coast League. Building on this strong momentum, we are well-positioned to capitalize on operational improvements, drive profitability, and further reduce cash burn.”
Select First Quarter 2025 Results
-
Net Loss of
( , or ($31.9) million $2.51 -
Non-GAAP Adjusted Net Loss Attributable to Common Stockholders of
( , or ($22.8) million $1.79 - Hired and onboarded employees of Creative Culinary Management Company LLC (“CCMC”), an indirect wholly owned subsidiary of Jean-Georges Restaurants, and entered into a shared services agreement with CCMC as the Company’s initial step to internalize food and beverage operations at most of its wholly owned and joint venture-owned restaurants at the Seaport.
- Signed a 74,497 square foot long-term lease with industry-leading immersive art and interactive experience creator Meow Wolf to bring its artistic blend of storytelling, technology and creative exploration to Pier 17.
- Announced the Seaport neighborhood as the host location for the New York City Wine & Food Festival in October 2025 with Chef Jean-Georges Vongerichten serving as Culinary Host for the event.
-
Disclosed plans to develop approximately 17,500 square feet of purpose-built meeting and event space on the fourth floor of Pier 17, with capacity for up to 800 guests and sweeping panoramic views of the Brooklyn Bridge, East River, and the
Brooklyn skyline.
Quarterly Results
The table below provides a summary of the Company’s unaudited consolidated and combined operating and financial results for the three months ended March 31, 2025 and March 31, 2024:
|
|
For the Three Months Ended March 31, 2025 |
|
For the Three Months Ended March 31, 2024 |
|
Variance
|
|
Total revenues1 |
$ |
16,069 |
$ |
14,511 |
$ |
1,558 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(31,538) |
$ |
(44,078) |
$ |
12,540 |
|
Net loss attributable to common stockholders |
$ |
(31,888) |
$ |
(44,078) |
$ |
12,190 |
|
Net loss attributable to common stockholders per share |
$ |
(2.51) |
$ |
(7.98) |
$ |
5.47 |
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Net Loss Attributable
|
$ |
(22,758) |
$ |
(34,644) |
$ |
11,886 |
|
Non-GAAP Adjusted Net Loss Attributable
|
$ |
(1.79) |
$ |
(6.27) |
$ |
4.48 |
|
|
|
||||||
Note: $ in thousands, except per share data. |
|||||||
1 Period-over-period total revenues comparability was impacted by the consolidation of the Tin Building by Jean-Georges as of January 1, 2025. In 2024, the Tin Building by Jean-Georges was an unconsolidated joint venture accounted for under the equity method in equity in earnings (losses) from unconsolidated ventures within our Statements of Operations. |
|||||||
2 See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of net loss attributable to the common stockholders to non-GAAP financial measures, including Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share. |
|||||||
Balance Sheet
As of March 31, 2025, the Company had
Investor Conference Call and Webcast
The Company will host a conference call to present its first quarter 2025 results on Tuesday, May 13, 2025, at 8:30 AM ET. During the call Chairman, President and CEO Anton Nikodemus and CFO Matt Partridge will address questions e‐mailed in advance by investors to: ir@seaportentertainment.com.
An audio webcast of the conference call will be available through the “Investors” section of the Company’s website at www.seaportentertainment.com. Please 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 until May 27, 2025.
To dial into the Telephone Conference Call:
Domestic: 1-877-407-3982
International: 1-201-493-6780
Conference Call Playback:
Domestic: 1-844-512-2921
International: 1-412-317-6671
Passcode: 13753311
About Seaport Entertainment Group
Seaport Entertainment Group (NYSE American: 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 our recent separation from, and relationship with, Howard Hughes; risks related to macroeconomic conditions; risks related to the impact of tariffs and global trade disruptions on us and our tenants, including the impact 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 Company’s ability to successfully identify, acquire, develop, and manage properties on terms that are favorable to it; 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
Non-GAAP Financial Measures
Our reported results are presented in accordance with accounting principles generally accepted in
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 income 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 income (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 provision 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 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 measures of net income (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.
Seaport Entertainment Group
Consolidated Balance Sheets (in thousands, except par value amounts) |
||||||
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
||
|
|
March
|
|
December
|
||
ASSETS |
|
|
|
|
|
|
Buildings and equipment |
|
$ |
539,360 |
|
$ |
522,667 |
Less: accumulated depreciation |
|
|
(214,956) |
|
|
(215,484) |
Land |
|
|
9,497 |
|
|
9,497 |
Developments |
|
|
145,168 |
|
|
146,461 |
Net investment in real estate |
|
|
479,069 |
|
|
463,141 |
Investments in unconsolidated ventures |
|
|
19,461 |
|
|
28,326 |
Cash and cash equivalents |
|
|
129,921 |
|
|
165,667 |
Restricted cash |
|
|
2,079 |
|
|
2,178 |
Accounts receivable, net |
|
|
11,336 |
|
|
5,246 |
Deferred expenses, net |
|
|
4,410 |
|
|
4,515 |
Operating lease right-of-use assets, net |
|
|
38,078 |
|
|
38,682 |
Other assets, net |
|
|
34,060 |
|
|
35,801 |
Total assets |
|
$ |
718,414 |
|
$ |
743,556 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Mortgages payable, net |
|
$ |
101,605 |
|
$ |
101,593 |
Operating lease obligations |
|
|
47,308 |
|
|
47,470 |
Accounts payable and other liabilities |
|
|
28,442 |
|
|
23,111 |
Total liabilities |
|
|
177,355 |
|
|
172,174 |
Commitments and Contingencies |
|
|
— |
|
|
— |
EQUITY |
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
127 |
|
|
127 |
Additional paid in capital |
|
|
614,580 |
|
|
613,015 |
Accumulated deficit |
|
|
(83,548) |
|
|
(51,660) |
Total Stockholders' equity |
|
|
531,159 |
|
|
561,482 |
Noncontrolling interest in subsidiary |
|
|
9,900 |
|
|
9,900 |
Total equity |
|
|
541,059 |
|
|
571,382 |
Total liabilities and equity |
|
$ |
718,414 |
|
$ |
743,556 |
Seaport Entertainment Group
Consolidated and Combined Statements of Operations (in thousands, except per share amounts) (Unaudited) |
||||||
Three months ended
|
||||||
2025 |
2024 |
|||||
REVENUES |
|
|
|
|
|
|
Hospitality revenue |
|
$ |
7,735 |
|
$ |
4,077 |
Entertainment revenue |
|
|
4,209 |
|
|
3,564 |
Rental revenue |
|
|
3,789 |
|
|
6,537 |
Other revenue |
|
|
336 |
|
|
333 |
Total revenues |
|
|
16,069 |
|
|
14,511 |
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
Hospitality costs |
|
|
15,742 |
|
|
6,268 |
Entertainment costs |
|
|
7,077 |
|
|
6,381 |
Operating costs |
|
|
8,079 |
|
|
8,563 |
General and administrative |
|
|
9,782 |
|
|
16,554 |
Depreciation and amortization |
|
|
8,091 |
|
|
8,074 |
Total expenses |
|
|
48,771 |
|
|
45,840 |
|
|
|
|
|
|
|
OTHER |
|
|
|
|
|
|
Other income, net |
|
|
— |
|
|
8 |
Total other |
|
|
— |
|
|
8 |
Operating loss |
|
|
(32,702) |
|
|
(31,321) |
Interest income (expense) |
|
|
994 |
|
|
(2,546) |
Equity in earnings (losses) from unconsolidated ventures |
|
|
170 |
|
|
(10,211) |
Loss before income taxes |
|
|
(31,538) |
|
|
(44,078) |
Income tax expense (benefit) |
|
|
— |
|
|
— |
Net loss |
|
|
(31,538) |
|
|
(44,078) |
Preferred distributions to noncontrolling interest in subsidiary |
|
|
(350) |
|
|
— |
Net loss attributable to common stockholders |
|
$ |
(31,888) |
|
$ |
(44,078) |
|
|
|
|
|
|
|
Total weighted average shares |
|
|
|
|
|
|
Basic |
|
|
12,694 |
|
|
5,522 |
Diluted |
|
|
12,694 |
|
|
5,522 |
|
|
|
|
|
|
|
| Net loss per share attributable to common stockholders | ||||||
| Basic | $ |
(2.51) |
$ |
(7.98) |
||
| Diluted | $ |
(2.51) |
$ |
(7.98) |
||
Seaport Entertainment Group
Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss Attributable to Common Stockholders (in thousands, except per share amounts) (Unaudited) |
||||||
Three months ended
|
||||||
|
|
2025 |
|
2024 |
||
Net loss |
|
$ |
(31,538) |
|
$ |
(44,078) |
Preferred distributions to noncontrolling interest in subsidiary |
|
|
(350) |
|
|
— |
Net loss attributable to common stockholders |
|
|
(31,888) |
|
|
(44,078) |
Adjustments: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
8,098 |
|
|
9,070 |
Non-cash compensation |
|
|
2,037 |
|
|
658 |
Straight line rent, net |
|
|
655 |
|
|
381 |
Capitalized interest |
|
|
(1,660) |
|
|
(667) |
Other income |
|
|
— |
|
|
(8) |
Non-GAAP adjusted net loss attributable to common stockholders |
|
|
(22,758) |
|
|
(34,644) |
|
|
|
|
|
|
|
Total weighted average shares |
|
|
|
|
|
|
Basic |
|
|
12,694 |
|
|
5,522 |
Diluted |
|
|
12,694 |
|
|
5,522 |
|
|
|
|
|
|
|
Non-GAAP adjusted net loss per share attributable to common stockholders |
||||||
Basic |
|
$ |
(1.79) |
|
$ |
(6.27) |
Diluted |
|
$ |
(1.79) |
|
$ |
(6.27) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250512222772/en/
Investor Relations:
Seaport Entertainment Group Inc.
T: (212) 732-8257
ir@seaportentertainment.com
Media Relations:
The Door
theseaport@thedooronline.com
Source: Seaport Entertainment Group Inc.
