Seaport Entertainment Group Reports Fourth Quarter and Full Year 2024 Results

NEW YORK--(BUSINESS WIRE)--March 10, 2025-- 

Seaport Entertainment Group Inc. (NYSE American: SEG) ("Seaport Entertainment Group," "SEG" or the "Company") announced today its operating and financial results for the quarter and year ended December 31, 2024.

"Following a transformative year marked by our transition to a standalone public company, we are encouraged by the progress we're making to drive strategic growth and optimize future cash flow. In the last ninety days, we've leased nearly 100,000 square feet to renowned entertainment and hospitality concepts Meow Wolf and GITANO and onboarded the foundational team to internalize our food and beverage operations," said Anton Nikodemus, Chairman, President and Chief Executive Officer of Seaport Entertainment Group. "As we look forward into 2025, we see incredible opportunities to enhance the Seaport and Las Vegas Ballpark while also exploring long-term monetization strategies for our 250 Water Street development site--whether through an outright sale or a strategic development partnership. None of this would be possible without our team's hard work and dedication and I'm truly excited about the opportunities ahead as we continue to build on our momentum."

Select Fourth Quarter 2024 Highlights

   -- Net Loss of ($41.6) million, or ($3.63) per basic and diluted share 
      attributable to common stockholders. 
 
   -- Non-GAAP Adjusted Net Loss Attributable to Common Stockholders of ($19.2) 
      million, or ($1.67) per basic and diluted share. 
 
   -- Generated net proceeds of approximately $166.8 million through the 
      previously announced rights offering, issuing seven million shares of 
      common stock at a price per share of $25.00. 
 
   -- Signed a license agreement with The Dead Rabbit to brand The Rooftop at 
      Pier 17 food & beverage operations during the Company's holiday and 
      winter programming. 
 
   -- Entered into an interim license agreement and long-term lease with Tulum 
      based Grupo Gitano to open its first permanent, year-round New York 
      dining and nightlife experience, GITANO NYC, in 13,605 square feet at 
      Pier 17. 
 
   -- Extended the Company's programming agreement with Live Nation for five 
      years, effective January 1, 2025, for The Rooftop at Pier 17, the 
      Company's one-of-a-kind live music experience with panoramic views of 
      some of New York City's most iconic landmarks. 
 
   -- Launching year-round concert and event programming in partnership with 
      Live Nation for The Rooftop at Pier 17 utilizing a seasonal 
      floor-to-ceiling glass enclosure, commencing in fall/winter 2025. 

Select Full Year 2024 Highlights

   -- Completed the previously announced separation from predecessor parent 
      company Howard Hughes Holdings Inc. $(HHH)$ ("Howard Hughes") on July 
      31, 2024 (the "Separation"), and is now an independent, standalone 
      publicly traded company. 
 
   -- Net Loss of ($153.2) million, or ($16.82) per basic and diluted share 
      attributable to common stockholders. 
 
   -- Non-GAAP Adjusted Net Loss Attributable to Common Stockholders of 
      ($106.6) million, or ($11.70) per basic and diluted share. 

Other Recent Highlights

   -- Hired and onboarded employees of Creative Culinary Management Company LLC 
      ("CCMC"), an indirect wholly owned subsidiary of Jean-Georges Restaurants, 
      and entered into a shared services agreement with CCMC as the Company's 
      initial step to internalize food and beverage operations at most of its 
      wholly owned and joint venture-owned restaurants at the Seaport. 
 
   -- Signed a 74,497 square foot long-term lease with industry-leading 
      immersive art and interactive experience creator Meow Wolf to bring its 
      artistic blend of storytelling, technology and creative exploration to 
      Pier 17 in 2027. 

Quarterly Results

The table below provides a summary of the Company's consolidated operating and financial results for the three months ended December 31, 2024:

 
                    For the      For the 
                     Three        Three 
                     Months       Months 
                     Ended        Ended             Variance 
                    December     December         to Comparable 
                    31, 2024     31, 2023      Period in Prior Year 
                   ----------   ----------   ----------------------- 
Total Revenues    $    22,844  $    22,903  $       (59)      (0.3%) 
 
Net loss          $  (41,276)  $  (36,008)  $    (5,286)     (14.6%) 
Net loss 
 attributable to 
 common 
 stockholders     $  (41,626)  $  (36,008)  $    (5,618)     (15.6%) 
Net loss 
 attributable to 
 common 
 stockholders 
 per share        $    (3.63)  $    (6.52)  $       2.89       44.4% 
 
Non-GAAP 
 Adjusted Net 
 Loss 
 Attributable to 
 Common 
 Stockholders(1)  $  (19,189)  $  (27,951)  $      8,762       31.3% 
Non-GAAP 
 Adjusted Net 
 Loss 
 Attributable to 
 Common 
 Stockholders 
 Per Share(1)     $    (1.67)  $    (5.06)  $       3.39       67.0% 
 
Note: $ in thousands, except per share data. 
(1) See the "Non-GAAP Financial Measures" section and tables at the 
end of this press release for a discussion and reconciliation of net 
loss attributable to the common stockholders to non-GAAP financial 
measures, including Non-GAAP Adjusted Net Loss Attributable to 
Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to 
Common Stockholders Per Share. 
 

Year-to-Date Results

The table below provides a summary of the Company's consolidated operating and financial results for the twelve months ended December 31, 2024, which includes periods during Howard Hughes' ownership prior to the Company's Separation:

 
                    For the       For the 
                     Twelve       Twelve 
                     Months       Months 
                     Ended         Ended             Variance 
                    December     December          to Comparable 
                    31, 2024     31, 2023      Period in Prior Year 
                   ----------   -----------   ---------------------- 
Total Revenues    $   111,136  $    115,678  $    (4,542)     (3.9%) 
 
Net loss          $ (152,625)  $  (838,065)  $    685,440      81.8% 
Net loss 
 attributable to 
 common 
 stockholders     $ (153,212)  $  (838,065)  $    684,853      81.7% 
Net loss 
 attributable to 
 common 
 stockholders 
 per share        $   (16.82)  $   (151.77)  $     134.95      88.9% 
 
Non-GAAP 
 Adjusted Net 
 Loss 
 Attributable to 
 Common 
 Stockholders(1)  $ (106,598)  $   (80,065)  $   (26,533)    (33.1%) 
Non-GAAP 
 Adjusted Net 
 Loss 
 Attributable to 
 Common 
 Stockholders 
 Per Share(1)     $   (11.70)  $    (14.50)  $       2.80      19.3% 
 
Note: $ in thousands, except per share data. 
(1) See the "Non-GAAP Financial Measures" section and tables at the 
end of this press release for a discussion and reconciliation of net 
loss attributable to the common stockholders to non-GAAP financial 
measures, including Non-GAAP Adjusted Net Loss Attributable to 
Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to 
Common Stockholders Per Share. 
 

Capital Markets and Balance Sheet

As of December 31, 2024, the Company had $167.8 million in cash, cash equivalents and restricted cash and $102.4 million of consolidated debt outstanding at an effective weighted-average interest rate of 7.8%. As of December 31, 2024, 40% of consolidated debt was fixed at a weighted-average interest rate of 4.9% and the remaining 60% of the Company's consolidated debt is floating at a weighted-average interest rate of 12.2% before the effects of the Company's total return swap, which reduces the effective rate of the floating rate debt to 9.7%. Additionally, 100% of the Company's outstanding debt is asset-specific, secured debt, and the weighted-average maturity of the Company's consolidated debt is approximately 8.7 years. The Company has no meaningful debt maturities until Q3 2029.

During the quarter ended December 31, 2024, the Company completed the previously announced rights offering, issuing 7,000,000 shares of common stock at a price per share of $25.00, generating net proceeds to the Company of approximately $166.8 million.

Investor Conference Call and Webcast

The Company will host a conference call to present its fourth quarter and full year 2024 results on Tuesday, March 11, 2025, at 8:30 AM ET. During the call Chairman, CEO and President Anton Nikodemus and CFO Matt Partridge will address questions e--mailed in advance by investors to: ir@seaportentertainment.com.

An audio webcast of the conference call will be available through the "Investors" section of the Company's website at www.seaportentertainment.com. Please log in ten minutes prior to the scheduled start time to register. A replay of the audio webcast will be available on the Company's website shortly after the conclusion of the call until March 25, 2025.

To dial into the Telephone Conference Call:

Domestic: 1-877-407-3982

International: 1-201-493-6780

Conference Call Playback:

Domestic: 1-844-512-2921

International: 1-412-317-6671

Passcode: 13751952

About Seaport Entertainment Group (NYSE American: SEG)

Seaport Entertainment Group (NYSE American: SEG) is a premier entertainment and hospitality company formed to own, operate, and develop a unique collection of assets positioned at the intersection of entertainment and real estate. Seaport Entertainment Group's focus is to deliver unparalleled experiences through a combination of restaurant, entertainment, sports, retail and hospitality offerings integrated into one-of-a-kind real estate that redefine entertainment and hospitality. For more information, please visit www.seaportentertainment.com.

Safe Harbor and Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include, but are not limited to, statements concerning the Company's plans, goals, objectives, outlook, expectations, and intentions. Forward-looking statements are based on the Company's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause the Company's results to differ materially from current expectations include, but are not limited to: risks related to our recent separation from, and relationship with, Howard Hughes; risks related to macroeconomic conditions; changes in discretionary consumer spending patterns or consumer tastes or preferences; risks associated with the Company's investments in real estate assets and trends in the real estate industry; the Company's ability to obtain operating and development capital on favorable terms, or at all; the availability of debt and equity capital; the Company's ability to renew its leases or re-lease available space; the Company's ability to compete effectively; the Company's ability to successfully identify, acquire, develop, and manage properties on terms that are favorable to it; the impact of uncertainty around, and disruptions to, the Company's supply chain; risks related to the concentration of the Company's properties in Manhattan and the Las Vegas area; extreme weather conditions or climate change that may cause property damage or interrupt business; the impact of water and electricity shortages on the Company's business; the contamination of the Company's properties by hazardous or toxic substances; catastrophic events or geopolitical conditions that may disrupt the Company's business; actual or threatened terrorist activity and other acts of violence, or the perception of a heightened threat of such events; losses that are not insured or that excess the applicable insurance limits; risks related to the disruption or failure of information technology networks and related systems -- both ours and those operated and managed by third parties; regulatory and legal requirements applicable to our assets; the Company's ability to attract and retain key personnel; the Company's inability to control certain properties due to the joint ownership of such property and inability to successfully attract desirable strategic partners, including joint venture partners; the concentration of ownership of our common stock by Pershing Square; and the other factors detailed in the Company's filings with the Securities and Exchange Commission (the "SEC"). Forward-looking statements speak only as of the date of this press release. The Company is under no obligation to publicly update or revise and forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

Our reported results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). We also disclose Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share, each of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they provide meaningful supplement of the Company's operating performance and period-over-period changes without regard to certain potential distortions or certain non-cash items.

Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements. Accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operating activities as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

To derive Non-GAAP Adjusted Net Loss Attributable to Common Stockholders, GAAP net income (loss) attributable to common stockholders is adjusted to exclude depreciation and amortization, as well as gains and losses from the sale of assets, gains or losses on extinguishment of debt, and provision for impairment, and these adjustments include the pro rata share of such adjustments of unconsolidated subsidiaries. Additionally, adjustments are made for non-cash revenues and expenses such as straight-line rental revenue and expenses, above- and below-market lease related intangibles, and non-cash compensation; other non-recurring items such as termination fees and legal settlements; and certain capitalized items such as capitalized interest. Please see the reconciliation table provided in this press release for a reconciliation of Non-GAAP Adjusted Net Loss Attributable to Common Stockholders and Non-GAAP Adjusted Net Loss Attributable to Common Stockholders Per Share to the most directly comparable GAAP measures of net income.

Availability of Information on SEG's Website and Social Media Channels

Investors and others should note that SEG routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the SEG Investor Relations website. The Company uses these channels as well as social media channels (e.g., LinkedIn www.linkedin.com/company/new-york-seaportentertainment) as a means of disclosing information about the Company's business to our customers, employees, investors, and the public. While not all of the information that the Company posts to the SEG Investor Relations website or on the Company's social media channels is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in SEG to review the information that it shares through its website and on the Company's social media channels. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting "Email Alerts" in the "Resources" section of the SEG Investor Relations website at https://ir.seaportentertainment.com/resources/email-alerts. The contents of these websites are not incorporated by reference into this press release or any report or document SEG files with the SEC, and any references to the websites are intended to be inactive textual references only.

 
                    Seaport Entertainment Group 
 
         Condensed Consolidated and Combined Balance Sheets 
              (in thousands except par value amounts) 
 
                                             December     December 
                                             31, 2024     31, 2023 
                                            ----------  ------------ 
ASSETS 
Buildings and equipment                     $ 522,667   $ 528,299 
Less: accumulated depreciation               (215,484)   (203,208) 
Land                                            9,497       9,497 
Developments                                  146,461     102,874 
                                             --------    -------- 
Net investment in real estate                 463,141     437,462 
Investments in unconsolidated ventures         28,326      37,459 
Cash and cash equivalents                     165,667       1,834 
Restricted cash                                 2,178      42,011 
Accounts receivable, net                        5,246      13,672 
Deferred expenses, net                          4,515       4,379 
Operating lease right-of-use assets, net       38,682      40,884 
Other assets, net                              35,801      39,112 
                                             --------    -------- 
      Total assets                          $ 743,556   $ 616,813 
                                             ========    ======== 
 
LIABILITIES 
Mortgages payable, net                      $ 101,593   $ 155,628 
Operating lease obligations                    47,470      48,153 
Accounts payable and other liabilities         23,111      28,139 
                                             --------    -------- 
      Total liabilities                       172,174     231,920 
                                             --------    -------- 
Commitments and Contingencies                      --          -- 
EQUITY 
Preferred stock, $0.01 par value, 20,000 
shares authorized, none issued or 
outstanding                                        --          -- 
Common stock, $0.01 par value, 480,000 
shares authorized, 12,708 issued and 
outstanding in 2024 and none issued or 
outstanding in 2023                               127          -- 
Additional paid in capital                    613,015          -- 
Accumulated deficit                           (51,660)         -- 
Net parent investment                              --     384,893 
                                             --------    -------- 
Stockholders' equity                          561,482     384,893 
                                             --------    -------- 
Noncontrolling interest in subsidiary           9,900          -- 
                                             --------    -------- 
      Total equity                            571,382     384,893 
      Total liabilities and equity          $ 743,556   $ 616,813 
                                             ========    ======== 
 
 
 
                    Seaport Entertainment Group 
 
   Condensed Consolidated and Combined Statements of Operations 
                (in thousands except share amounts) 
 
                         (Unaudited) 
                      Three months ended     Twelve months ended 
                         December 31,            December 31, 
                     --------------------  ------------------------ 

                       2024       2023        2024        2023 
                      -------    -------    --------    -------- 
REVENUES 
   Sponsorships, 
    events, and 
    entertainment 
    revenue          $  8,619   $  9,980   $  56,153   $  60,623 
   Hospitality 
    revenue             7,793      7,318      29,528      32,951 
   Rental revenue       6,434      5,601      25,363      22,096 
   Other revenue           (2)         4          92           8 
                      -------    -------    --------    -------- 
      Total 
       revenues        22,844     22,903     111,136     115,678 
                      =======    =======    ========    ======== 
 
EXPENSES 
   Sponsorships, 
    events, and 
    entertainment 
    costs               8,156     10,478      43,757      47,466 
   Hospitality 
    costs               8,694      7,449      31,002      31,432 
   Operating costs      9,989      9,947      44,429      41,219 
   Provision for 
    (recovery of) 
    doubtful 
    accounts             (195)       368       2,363         459 
   General and 
    administrative      9,783     10,823      63,269      30,536 
   Depreciation and 
    amortization       13,684      8,396      34,785      48,432 
   Other                   --         30          --          81 
                      -------    -------    --------    -------- 
      Total 
       expenses        50,111     47,491     219,605     199,625 
                      =======    =======    ========    ======== 
 
OTHER 
   Provision for 
    impairment             --         --          --    (672,492) 
   Other income 
    (loss), net         2,014          7       6,729          33 
                      -------    -------    --------    -------- 
      Total other       2,014          7       6,729    (672,459) 
                      -------    -------    --------    -------- 
Operating income 
 (loss)               (25,253)   (24,581)   (101,740)   (756,406) 
Interest income 
 (expense)              2,138     (1,317)     (6,751)     (3,166) 
Equity earnings 
 (losses) from 
 unconsolidated 
 ventures             (18,161)   (12,298)    (42,571)    (80,633) 
Loss on early 
 extinguishment of 
 debt                      --          1      (1,563)        (47) 
                      -------    -------    --------    -------- 
Income (loss) 
 before income 
 taxes                (41,276)   (38,195)   (152,625)   (840,252) 
Income tax expense 
 (benefit)                 --     (2,187)         --      (2,187) 
                      -------    -------    --------    -------- 
Net loss              (41,276)   (36,008)   (152,625)   (838,065) 
Preferred 
 distributions to 
 noncontrolling 
 interest in 
 subsidiary              (350)        --        (587)         -- 
                      -------    -------    --------    -------- 
Net loss 
 attributable to 
 common 
 stockholders        $(41,626)  $(36,008)  $(153,212)  $(838,065) 
                      =======    =======    ========    ======== 
 
Total weighted 
average shares 
   Basic               11,474      5,522       9,108       5,522 
   Diluted             11,474      5,522       9,108       5,522 
 
Earnings (loss) per 
share attributable 
to common 
shareholders 
Basic                $  (3.63)  $  (6.52)  $  (16.82)  $ (151.77) 
Diluted              $  (3.63)  $  (6.52)  $  (16.82)  $ (151.77) 
 
 
 
                    Seaport Entertainment Group 
 
 Reconciliation of Non-GAAP Financial Measures to Net Income (Loss) 
                (in thousands except share amounts) 
                            (Unaudited) 
 
                       Three months ended     Twelve months ended 
                          December 31,            December 31, 
                      --------------------  ------------------------ 
                        2024       2023        2024        2023 
                       -------    -------    --------    -------- 
   Net loss           $(41,276)  $(36,008)  $(152,625)  $(838,065) 
   Preferred 
    distributions to 
    noncontrolling 
    interest in 
    subsidiary            (350)        --        (587)         -- 
                       -------    -------    --------    -------- 
   Net loss 
    attributable to 
    common 
    stockholders       (41,626)   (36,008)   (153,212)   (838,065) 
Adjustments: 
   Depreciation and 
    amortization        14,628      9,245      39,320      53,082 
   Provision for 
    impairment          10,000         --      10,000     709,493 
   Loss on early 
    extinguishment 
    of debt                 --         (1)      1,563          47 
   Non-cash 
    compensation         2,254        288       3,212       1,495 
   Straight line 
    rent, net              529        491       2,876       2,453 
   Capitalized 
    interest            (2,960)    (1,959)     (3,628)     (8,537) 
   Other (income) 
    loss(1)             (2,014)        (7)     (6,729)        (33) 
                       -------    -------    --------    -------- 
      Non-GAAP 
       adjusted net 
       loss 
       attributable 
       to common 
       stockholders    (19,189)   (27,951)   (106,598)    (80,065) 
                       =======    =======    ========    ======== 
 
Total weighted 
average shares 
   Basic                11,474      5,522       9,108       5,522 
   Diluted              11,474      5,522       9,108       5,522 
 
Non-GAAP adjusted net loss attributable to common stockholders per 
share 
   Basic              $  (1.67)  $  (5.06)  $  (11.70)  $  (14.50) 
   Diluted            $  (1.67)  $  (5.06)  $  (11.70)  $  (14.50) 
 
(1) Other (income) loss primarily includes the financial results 
from non-recurring legal settlements during the three months ended 
December 31, 2024 and non-recurring reimbursements received from 
CCMC, a wholly owned subsidiary of Jean-Georges Restaurants that 
provides management services for certain retail and food and 
beverage businesses that the Company owns, either wholly or through 
partnerships with third parties during the three months ended 
September 30, 2024 relating to prior period operating expenses. 
 

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    CONTACT:    Investor Relations: 

Seaport Entertainment Group Inc.

T: (212) 732-8257

ir@seaportentertainment.com

Media Relations:

The Door

theseaport@thedooronline.com

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March 10, 2025 16:30 ET (20:30 GMT)