Seaport Entertainment Group (SEG) Registration Filing summary

Company overview and business model

• Owns, operates, and develops entertainment-focused real estate assets in NYC and Las Vegas, including the Seaport, Las Vegas Aviators, Las Vegas Ballpark, and a 25% stake in Jean-Georges Restaurants.

• Business segments: Landlord Operations, Hospitality, and Sponsorships, Events, and Entertainment.

• Strategy centers on integrating real estate with hospitality, live events, and sports to create mixed-use destinations.

• Seaport assets include Pier 17, Tin Building, Fulton Market Building, and 250 Water Street development site.

• Hospitality segment includes six restaurants and bars, plus a 25% interest in Jean-Georges Restaurants.

Financial performance and metrics

• Net loss of $44.1 million for Q1 2024; net losses of $838.1 million in 2023 (including a $672.5 million impairment) and $111.3 million in 2022.

• Q1 2024 revenues: $14.7 million; 2023 revenues: $115.7 million; 2022 revenues: $119.0 million.

• Negative operating cash flow: $(18.8) million in Q1 2024; $(50.8) million in 2023; $(29.6) million in 2022.

• Cash and restricted cash as of March 31, 2024: $44.1 million; total assets: $614.7 million; total liabilities: $225.6 million.

• Significant impairment charges in 2023 due to delays in achieving profitability and market challenges.

Use of proceeds and capital allocation

• Net proceeds from the $175 million rights offering will be used for general operating, working capital, and other corporate purposes.

• Management retains broad discretion over allocation of proceeds.

• Capital raised will strengthen liquidity and support business plan execution.