Seaport Entertainment Group (SEG) Q1 2026 earnings summary

Executive summary

• Completed the sale of 250 Water Street in February 2026, generating $143 million in gross proceeds, $76.1 million in net proceeds after debt repayment, and strengthening liquidity.

• 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.

• Leased Tin Building to Lux Entertainment for the Balloon Museum after the closure of Tin Building by Jean-Georges, transitioning it to a cash-flowing asset.

• Opened Sadie's Restaurant & Garden Bar and transitioned GITANO NYC to a third-party lease, enhancing recurring revenue streams and guest engagement.

• Announced partnership with Public Service for a new arts, culture, and hospitality concept.

Financial highlights

• Q1 2026 total revenues declined 21% 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.

• Non-GAAP adjusted net loss improved 21% year-over-year to $17.9 million.

• Net loss per share was $3.47, up from $2.51 year-over-year; operating loss widened to $42.5 million from $32.7 million.

• Cash, cash equivalents, and restricted cash totaled $144.7 million as of March 31, 2026, up from $77.8 million at year-end 2025.

Outlook and guidance

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

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

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

• Management believes current liquidity and access to capital markets are sufficient for obligations and planned capital expenditures.

• Ongoing focus on cost efficiencies and further G&A reductions anticipated.