Seaport Entertainment Group Reports First Quarter 2026 Results
NEW YORK–(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:
|
|
For the Three Months Ended March 31, 2026 |
For the Three Months Ended March 31, 2025 |
Variance to Comparable Period in Prior Year |
||||||||||||
|
Total revenues |
$ |
12,737 |
|
$ |
16,069 |
|
$ |
(3,332 |
) |
(20.7 |
%) |
||||
|
|
|
|
|
|
|||||||||||
|
Net loss |
$ |
(43,753 |
) |
$ |
(31,538 |
) |
$ |
(12,215 |
) |
(38.7 |
%) |
||||
|
Net loss attributable to common stockholders |
$ |
(44,103 |
) |
$ |
(31,888 |
) |
$ |
(12,215 |
) |
(38.3 |
%) |
||||
|
Net loss attributable to common stockholders per share |
$ |
(3.47 |
) |
$ |
(2.51 |
) |
$ |
(0.96 |
) |
(38.2 |
%) |
||||
|
|
|
|
|
|
|||||||||||
|
Non-GAAP Adjusted Net Loss Attributable to Common Stockholders1 |
$ |
(17,880 |
) |
$ |
(22,758 |
) |
$ |
4,878 |
|
21.4 |
% |
||||
|
Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share1 |
$ |
(1.41 |
) |
$ |
(1.79 |
) |
$ |
0.38 |
|
21.2 |
% |
||||
|
Note: $ in thousands, except per share data. |
||
|
1 |
|
See the “Non-GAAP Financial Measures” and “Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss Attributable to Common Stockholders” sections in this press release for a discussion and reconciliation of net loss attributable to 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, 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.
|
Seaport Entertainment Group Inc. Consolidated Balance Sheets (in thousands, except par value amounts) |
||||||||
|
|
|
|
|
|
||||
|
|
|
(Unaudited) |
|
|
||||
|
|
|
March 31, 2026 |
|
December 31, 2025 |
||||
|
ASSETS |
|
|
|
|
||||
|
Buildings and equipment |
|
$ |
514,821 |
|
|
$ |
537,243 |
|
|
Less: accumulated depreciation |
|
|
(223,599 |
) |
|
|
(225,662 |
) |
|
Land |
|
|
9,497 |
|
|
|
9,497 |
|
|
Net investment in real estate |
|
|
300,719 |
|
|
|
321,078 |
|
|
Assets held for sale |
|
|
— |
|
|
|
137,441 |
|
|
Investments in unconsolidated ventures |
|
|
17,061 |
|
|
|
16,676 |
|
|
Cash and cash equivalents |
|
|
114,828 |
|
|
|
77,808 |
|
|
Restricted cash |
|
|
29,867 |
|
|
|
9,586 |
|
|
Accounts receivable, net |
|
|
6,886 |
|
|
|
7,149 |
|
|
Deferred expenses, net |
|
|
9,781 |
|
|
|
3,539 |
|
|
Operating lease right-of-use assets, net |
|
|
44,657 |
|
|
|
45,102 |
|
|
Other assets, net |
|
|
18,006 |
|
|
|
31,743 |
|
|
Total assets |
|
$ |
541,805 |
|
|
$ |
650,122 |
|
|
|
|
|
|
|
||||
|
LIABILITIES |
|
|
|
|
||||
|
Mortgages payable, net |
|
$ |
38,361 |
|
|
$ |
38,348 |
|
|
Mortgages payable related to assets held for sale |
|
|
— |
|
|
|
61,300 |
|
|
Operating lease obligations |
|
|
56,605 |
|
|
|
56,527 |
|
|
Accounts payable and other liabilities |
|
|
24,009 |
|
|
|
27,540 |
|
|
Total liabilities |
|
|
118,975 |
|
|
|
183,715 |
|
|
|
|
|
|
|
||||
|
EQUITY |
|
|
|
|
||||
|
Preferred stock, $0.01 par value, 20,000 shares authorized, none issued or outstanding |
|
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value, 480,000 shares authorized, 12,806 issued and outstanding as of March 31, 2026, and 12,777 issued and outstanding issued or outstanding as of December 31, 2025 |
|
|
129 |
|
|
|
128 |
|
|
Additional paid in capital |
|
|
625,306 |
|
|
|
624,781 |
|
|
Accumulated deficit |
|
|
(212,505 |
) |
|
|
(168,402 |
) |
|
Total Stockholders’ equity |
|
|
412,930 |
|
|
|
456,507 |
|
|
Noncontrolling interest in subsidiary |
|
|
9,900 |
|
|
|
9,900 |
|
|
Total equity |
|
|
422,830 |
|
|
|
466,407 |
|
|
Total liabilities and equity |
|
$ |
541,805 |
|
|
$ |
650,122 |
|
|
Seaport Entertainment Group Inc. Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) |
||||||||
|
|
|
|
|
|
||||
|
|
|
Three months ended March 31, |
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
REVENUES |
|
|
||||||
|
Hospitality revenue |
$ |
5,108 |
|
$ |
7,735 |
|
||
|
Entertainment revenue |
|
4,498 |
|
|
4,209 |
|
||
|
Rental revenue |
|
2,782 |
|
|
3,789 |
|
||
|
Other revenue |
|
349 |
|
|
336 |
|
||
|
Total revenues |
|
12,737 |
|
|
16,069 |
|
||
|
|
|
|
||||||
|
EXPENSES |
|
|
||||||
|
Hospitality costs |
|
10,227 |
|
|
15,742 |
|
||
|
Entertainment costs |
|
7,288 |
|
|
7,077 |
|
||
|
Operating costs |
|
6,984 |
|
|
8,079 |
|
||
|
General and administrative |
|
8,056 |
|
|
9,782 |
|
||
|
Depreciation and amortization |
|
20,113 |
|
|
8,091 |
|
||
|
Total expenses |
|
52,668 |
|
|
48,771 |
|
||
|
|
|
|
||||||
|
OTHER |
|
|
||||||
|
Provision for Impairment |
|
(339 |
) |
|
— |
|
||
|
Other income (loss), net |
|
(2,249 |
) |
|
— |
|
||
|
Total other |
|
(2,588 |
) |
|
— |
|
||
|
Operating loss |
|
(42,519 |
) |
|
(32,702 |
) |
||
|
Interest income (expense) |
|
(270 |
) |
|
994 |
|
||
|
Equity in earnings (losses) from unconsolidated ventures |
|
(964 |
) |
|
170 |
|
||
|
Loss before income taxes |
|
(43,753 |
) |
|
(31,538 |
) |
||
|
Income tax expense (benefit) |
|
— |
|
|
— |
|
||
|
Net loss |
|
(43,753 |
) |
|
(31,538 |
) |
||
|
Preferred distributions to noncontrolling interest in subsidiary |
|
(350 |
) |
|
(350 |
) |
||
|
Net loss attributable to common stockholders |
$ |
(44,103 |
) |
$ |
(31,888 |
) |
||
|
|
|
|
||||||
|
Total weighted average shares |
|
|
||||||
|
Basic |
|
12,723 |
|
|
12,694 |
|
||
|
Diluted |
|
12,723 |
|
|
12,694 |
|
||
|
|
|
|
||||||
|
Net loss per share attributable to common stockholders |
|
|||||||
|
Basic |
$ |
(3.47 |
) |
$ |
(2.51 |
) |
||
|
Diluted |
$ |
(3.47 |
) |
$ |
(2.51 |
) |
||
|
Seaport Entertainment Group Inc. Reconciliation of Net Loss to Non-GAAP Adjusted Net Loss Attributable to Common Stockholders (in thousands, except per share amounts) (Unaudited) |
||||||||
|
|
|
|
|
|
||||
|
|
|
Three months ended March 31, |
||||||
|
|
|
|
2026 |
|
|
|
2025 |
|
|
Net loss |
$ |
(43,753 |
) |
$ |
(31,538 |
) |
||
|
Preferred distributions to noncontrolling interest in subsidiary |
|
(350 |
) |
|
(350 |
) |
||
|
Net loss attributable to common stockholders |
|
(44,103 |
) |
|
(31,888 |
) |
||
|
Adjustments: |
|
|
||||||
|
Depreciation and amortization |
|
20,446 |
|
|
8,098 |
|
||
|
Lease termination fee income |
|
(570 |
) |
|
— |
|
||
|
Non-cash compensation |
|
1,091 |
|
|
2,037 |
|
||
|
Restructuring costs |
|
3,397 |
|
|
— |
|
||
|
Straight line rent, net |
|
1,250 |
|
|
655 |
|
||
|
Capitalized interest |
|
— |
|
|
(1,660 |
) |
||
|
Provision for impairment |
|
339 |
|
|
— |
|
||
|
Other income |
|
270 |
|
|
— |
|
||
|
Non-GAAP adjusted net loss attributable to common stockholders |
|
(17,880 |
) |
|
(22,758 |
) |
||
|
|
|
|
||||||
|
Total weighted average shares |
|
|
||||||
|
Basic |
|
12,723 |
|
|
12,694 |
|
||
|
Diluted |
|
12,723 |
|
|
12,694 |
|
||
|
|
|
|
||||||
|
Non-GAAP adjusted net loss per share attributable to common stockholders |
||||||||
|
Basic |
$ |
(1.41 |
) |
$ |
(1.79 |
) |
||
|
Diluted |
$ |
(1.41 |
) |
$ |
(1.79 |
) |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260506515731/en/
Investor Relations:
Seaport Entertainment Group Inc.
T: (212) 732-8257
[email protected]
Media Relations:
[email protected]
KEYWORDS: New York United States North America
INDUSTRY KEYWORDS: Construction & Property Entertainment General Entertainment Restaurant/Bar Other Travel Retail Destinations Other Construction & Property Travel
MEDIA:
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