Seaport Entertainment Group (SEG) Registration Filing summary

Company overview and business model

• Owns, operates, and develops entertainment and real estate assets, primarily 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.

• Focuses on integrating real estate with restaurant, retail, and leisure offerings 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/bars and a 25% interest in Jean-Georges Restaurants.

Financial performance and metrics

• Net loss of $79.1M for the six months ended June 30, 2024; net losses of $838.1M (including $672.5M impairment) and $111.3M for 2023 and 2022, respectively.

• Negative operating cash flow: $39.1M (six months ended June 30, 2024), $50.8M (2023), $29.5M (2022).

• Total assets as of June 30, 2024: $796.6M (pro forma); cash and equivalents: $235.1M (pro forma).

• Revenue for six months ended June 30, 2024: $48.6M; for 2023: $115.7M.

• Hospitality segment revenue: $33.0M in 2023 (down 23% from 2022); Sponsorships, Events, and Entertainment: $60.6M in 2023 (up 9% from 2022).

Use of proceeds and capital allocation

• Net proceeds from the $175M Rights Offering will be used for general operating, working capital, and other corporate purposes.

• Management retains broad discretion over allocation of proceeds.

• Liquidity sources include $23.4M cash contributed by HHH, Rights Offering proceeds, and a $5M revolving credit facility.