Seaport Entertainment Group Inc. Q2 FY2025 earnings call

• 250 Water Street: Had tremendous interest from potential partners, evaluating options to maximize value, optimistic for near-future update to reduce cash burn and reach operational breakeven in 2026.
• Internalization of Food and Beverage: Finalized agreements to obtain 100% of Jean-Georges' interest in Tin Building joint venture, transitioned to new license agreements, enabling direct management of hospitality operations for operational efficiencies.
• Leasing: Signed 2 long-term leases (Willett's NYC and Cork Wine Bar) in Seaport neighborhood; Nike early termination of lease, $4M termination payment, creating optionality for neighborhood business expansion.
• Pier 17 Updates: Substantially completed riverdeck bar, successful Macy's Fourth of July event, NYC Wine & Food Festival in October, strong Rooftop concert series (22 shows, 15 sold-out), Patrón Patio opened, winter enclosure in planning.
• Las Vegas Aviators: In second place in Pacific Coast League, secured playoff spot, game day activations driving attendance and reducing sales volatility.
• Hospitality Segment: Gitano grand opening contributed to same-store growth, cost containment initiatives offset revenue declines, focus on stabilizing Tin Building and developing amended operating plan.

Entertainment Segment: Drove majority of second quarter consolidated revenue increase, up 16% year-over-year, benefiting from 11 additional concerts, higher sponsorship and concession revenue for Las Vegas Aviators and Ballpark. Operating EBITDA in Q2 2025 increased by 122%. Hospitality Segment: Revenues declined 15% compared to pro forma Q2 2024. Total hospitality revenues, including unconsolidated ventures, decreased 4% year-over-year, while same-store hospitality revenue increased 1% during the second quarter. Landlord Segment: Operating EBITDA for Q2 2025 increased 50% compared to Q2 2024, reflecting reduction in predecessor company expense allocations and nonrepeating prior period items.

• Anticipate sharing broader long-term plan for the company in coming months.
• Hopeful uplisting to NYSE and index inclusions will be positive catalysts for improved visibility and trading volume.
• Expect continued momentum in events business, expansion at Las Vegas Ballpark during baseball off-season.

• Uncertainty around completion of 250 Water Street transaction.
• Weather impacts on events attendance and game day attendance.
• Volatility in game day attendance due to last-minute weather disruptions or competing events.