Seaport Entertainment Group (SEG) investor relations material

Executive summary

• Completed the sale of 250 Water Street for $143 million, generating $76.1 million in net proceeds, improving liquidity, and eliminating ongoing carry costs.

• Transitioned Tin Building to a leased asset with Lux Entertainment for the Balloon Museum after closure by Jean-Georges, and opened Sadie's Restaurant & Garden Bar, exceeding expectations.

• Announced partnership with Public Service for a new arts and hospitality concept and expanded programming calendar to drive guest engagement.

• Generated a 21% year-over-year improvement in non-GAAP adjusted net loss, reflecting operational progress.

• Net loss attributable to common stockholders increased 38% year-over-year to $44.1 million for Q1 2026, driven by lower hospitality and rental revenues, higher depreciation, and increased other losses.

Financial highlights

• Total revenues declined 20.7% year-over-year to $12.7 million, with hospitality revenue down 34% and rental revenue down 27%.

• Total operating EBITDA loss improved by $3.1 million or 21% year-over-year to a loss of $11.8 million, despite revenue decline.

• Net loss attributable to common stockholders was $44.1 million, or $3.47 per share, up from $2.51 per share year-over-year, mainly due to accelerated depreciation and restructuring costs.

• Non-GAAP adjusted net loss improved by 21% to $17.9 million, or $1.41 per share.

• Cash, cash equivalents, and restricted cash totaled $144.7 million as of March 31, 2026, with a net cash position of $105.6 million.

Outlook and guidance

• Capital expenditures for stabilization remain at $70 million–$90 million through 2028, with $6 million spent in Q1.

• Management expects continued momentum into the busiest period of the year, driven by new openings and event programming.

• Expect incremental improvements to rental revenue as new tenants commence leases and cost reduction initiatives continue.

• Pier 17 event space expected to be operational by mid-2027, with early access to space secured after Nike lease termination.

• Ongoing focus on optimizing corporate overhead, with expectations for further reductions over the next 12 months.