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, 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.

• Key assets include Pier 17, Tin Building, Las Vegas Ballpark, and air rights above Fashion Show Mall.

• Seeks growth through asset management, partnerships, acquisitions, and development projects.

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) in 2023, and $111.3M in 2022.

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

• Pro forma cash and equivalents post-offering: $192.9M as of June 30, 2024.

• Total assets: $796.6M (pro forma, June 30, 2024); total liabilities: $178.7M.

• Revenue for six months ended June 30, 2024: $48.6M; 2023: $115.7M; 2022: $119.0M.

• Significant impairment charges in 2023 due to delays in asset stabilization and market conditions.

Use of proceeds and capital allocation

• Net proceeds of ~$166.3M from the Rights Offering expected.

• Proceeds to be used for general operating, working capital, and other corporate purposes.

• Management retains broad discretion over allocation of funds.