812215101 Filings — Seaport Entertainment Group Inc. - FilingSpy
812215101
Seaport Entertainment Group Inc.
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A hospitality and entertainment real-estate company that owns the historic Seaport District in Lower Manhattan, runs the rooftop concert venue at Pier 17, and fields the Las Vegas Aviators Triple-A baseball team at Las Vegas Ballpark. It was spun off from Howard Hughes Holdings in July 2024, taking its name from the centuries-old maritime waterfront it stewards. Its Las Vegas baseball team is named for the aviation-loving Howard Hughes, founder of the parent company.
Hospitality costs fell faster than revenue, narrowing the operating loss, while the 250 Water Street sale proceeds lifted cash to $117.8M.
The operating loss narrowed sharply as cost cuts in the Hospitality outpaced a decline from restaurant closures. Revenue fell 14% to $34.3 million and the operating loss improved to $11.1 million from $16.0 million a year ago, driven by a 61% drop in Hospitality costs that more than offset the loss of Tin Building and Malibu Farms revenue. The company holds $117.8 million in cash after the 250 Water Street sale, but the core business is still burning cash and the Tin Building renovation for a new tenant is just beginning.
Key takeaways
The operating loss narrowed to $11.1 million from $16.0 million a year ago, as a 61% drop in Hospitality costs to $6.9 million outpaced the 's 54% decline to $7.0 million following the closures of the Tin Building by Jean-Georges and Malibu Farms.
Total fell 14% to $34.3 million, with the Hospitality decline partially offset by a 67% increase in Rental revenue to $7.1 million, which included lease termination income and accelerated rents.
Entertainment was nearly flat at $19.6 million, but higher operating costs at The Rooftop at Pier 17 pushed the 's down 22% to $3.7 million.
Section summaries
Management's Discussion and Analysis
Net loss narrowed in Q2 FY2026 as hospitality cost cuts and rental growth offset revenue declines from restaurant closures.
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Total fell 14% to $34.3M, driven by a 54% drop in Hospitality revenue to $7.0M following the closures of the Tin Building by Jean-Georges and Malibu Farms.
Cash and equivalents rose to $117.8 million at quarter-end from $77.8 million at year-end 2025, primarily because the February 2026 sale of 250 Water Street for $143.0 million provided $130.0 million in net investing cash, which was used to repay the associated $61.3 million mortgage.
and rose 84% to $26.9 million for the six-month period, driven by asset disposals and accelerated depreciation tied to the Tin Building closure.
fell 63% to $37.3 million, reflecting the mortgage repayment from the 250 Water Street sale proceeds.
What changed
The Q1 FY2026 watch item on the pace of operating cash burn showed a mixed result: cash used in operations was $1.4 million in Q2, an improvement from $10.3 million in Q1, but the six-month total of $11.7 million still represents a steady draw on reserves.
The Q1 FY2026 watch item on the quarterly run rate of and remains elevated at $26.9 million for the first half, and the filing does not indicate when the accelerated schedule on Tin Building assets will taper.
The Q1 FY2026 watch item on Landlord Operations occupancy showed no reported improvement from the 55% level at year-end 2025, and the now faces a temporary loss of rental income from the Tin Building space during its renovation for Lux Entertainment.
The FY2025 watch item on whether general and administrative expenses would fall back toward the $8.3 million quarterly run rate was not resolved: the filing does not break out G&A separately for the quarter, and leadership transition costs from 2025 were not flagged as recurring.
What to watch
The timeline and cost of the Tin Building renovation for Lux Entertainment, and when the new tenant begins paying rent, which will determine when Landlord Operations rental recovers from the current intercompany-elimination and closure-driven trough.
Whether the Hospitality 's cost cuts are sustainable or reflect one-time savings from restaurant closures, and what the segment's base looks like without the Tin Building and Malibu Farms.
The pace of operating cash burn against the $117.8 million cash balance, and whether the Q2 improvement to a $1.4 million outflow is sustained or was a seasonal effect.
Whether Landlord Operations occupancy rises from the 55% reported at year-end 2025 as the Meow Wolf lease and other leasing efforts convert programmed space into occupied, rent-paying tenants.
Rental rose 67% to $7.1M, boosted by lease termination income and accelerated rents, partially offsetting lower intercompany rent from the Tin Building closure.
Hospitality costs dropped 61% to $6.9M, outpacing the decline and helping reduce the 's loss by $6.6M.
Entertainment was nearly flat at $19.6M, but higher operating costs at The Rooftop at Pier 17 pushed down 22% to $3.7M.
Cash provided by investing activities swung to $115.2M, primarily from the $143.0M sale of 250 Water Street, which was used to pay off the related mortgage.
and surged 84% to $26.9M for the six-month period due to asset disposals and accelerated depreciation from the Tin Building by Jean-Georges closure.
Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk With respect to our fixed-rate mortgage payable, increases in interest rates could make it more difficult to refinance such debt when it becomes due. As of June 30, 2026, the weighted average interest rate on the $38.1 million of fixed-rate indebtedness outsta…
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Interest Rate Risk
With respect to our fixed-rate mortgage payable, increases in interest rates could make it more difficult to refinance such debt when it becomes due. As of June 30, 2026, the weighted average interest rate on the $38.1 million of fixed-rate indebtedness outstanding was 4.92% per annum, with principal paydowns at various dates through December 15, 2038.
For additional information concerning our debt and management’s estimation process to arrive at a fair value of our debt as required by GAAP, please refer to the Liquidity and Capital Resources section above in Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 4 – Mortgages Payable, Net in the Unaudited Notes to the Consolidated Financial Statements included in this Quarterly Report.
We are currently and expect from time to time in the future to be involved in legal proceedings that arise in the ordinary course of our business. Management periodically assesses our liabilities and contingencies in connection with these matters based upon the latest informatio…
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We are currently and expect from time to time in the future to be involved in legal proceedings that arise in the ordinary course of our business. Management periodically assesses our liabilities and contingencies in connection with these matters based upon the latest information available. The results of any current or future litigation cannot be predicted with certainty; however, as of June 30, 2026, we believe there were no pending lawsuits or claims against us that, individually or in the aggregate, could have a material adverse effect on our business, results of operations or financial condition. For more information, see Note 6 - Commitments and Contingencies in the Unaudited Notes to the Consolidated Financial Statements included in this Quarterly Report.
There were no material changes to the risk factors set forth in the section titled “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. You should carefully read and consider the risks and uncertainties described in such Annua…
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There were no material changes to the risk factors set forth in the section titled “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. You should carefully read and consider the risks and uncertainties described in such Annual Report, together with all of the other information included in this Quarterly Report, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Cautionary Statement Regarding Forward-Looking Statements” and our Unaudited Consolidated Financial Statements and related Notes, as well as other documents that we file with the SEC from time to time.