Seaport Entertainment Group (SEG) Q4 2024 earnings summary

Executive summary

• Completed separation from Howard Hughes Holdings, becoming an independent public company in July 2024 and trading on NYSE American as of August 2024.

• Built a new operations-centric team and internalized food and beverage operations by onboarding Creative Culinary Management Company employees.

• Leased nearly 100,000 sq. ft. to Meow Wolf and GITANO, expanding entertainment and hospitality offerings.

• Signed multi-year agreements with Live Nation and The Dead Rabbit for Pier 17 programming.

• Focused on improving underperforming assets, especially the Seaport in NYC, and expanding in Las Vegas.

Financial highlights

• Q4 2024 total consolidated revenues were $22.8 million, largely flat year-over-year; full year 2024 revenues were $111.1 million, down 3.9%.

• Consolidated hospitality revenue increased 6.5% in Q4; overall hospitality revenue up 12.8%, but same-store hospitality revenues down 3.5%.

• Rental revenues rose nearly 15% in Q4, driven by new leases.

• Q4 2024 net loss attributable to common stockholders was $41.6 million, up $5.6 million (16%) year-over-year; full year 2024 net loss was $153.2 million, a significant improvement from $838.1 million in 2023.

• Non-GAAP adjusted net loss was $19.2 million in Q4, an improvement of $8.8 million (31%) year-over-year; full year 2024 Non-GAAP adjusted net loss was $106.6 million, up from $80.1 million in 2023.

• Net loss per share improved by $2.89 (44%) to $3.63 in Q4; adjusted net loss per share improved by $3.39 (67%) to $1.67.

Outlook and guidance

• No formal forward guidance provided due to ongoing business transitions; more robust disclosure and operational metrics expected starting Q1 2025.

• Exploring monetization strategies for the 250 Water Street development, including potential sale or partnership.

• Anticipate headwinds for hospitality revenue in Q1 2025 due to strategic reductions in operating hours, but expect improved profitability and demand as repositioning efforts take hold.

• Plans to enhance Seaport and Las Vegas Ballpark assets and launch year-round programming at Pier 17.