SEG

Overall Stabilization Timeline

• Management confirms it expects to complete full operational and financial stabilization by 2028, consistent with the original three+ year plan laid out when CEO Matt Partridge took office 9-10 months prior to this call
• The company has reached cash flow positive operation ahead of prior expectations

Venue & Leasing Updates

• The Lawn Club achieved an all-time record revenue in July, and expects a strong second half of the year; its year-over-year EBITDA decline stems only from a revenue shift of the former Sadie's Garden Bar to the standalone Sadie's venue, with aggregate combined revenue for the two venues higher than prior periods
• Sadie's has exceeded last year's performance, with very high visitor traffic
• Founding rooftop concert series sponsor Chase exited the sponsorship to prioritize exclusive cardholder experiences; management is in active conversations with potential replacement sponsors from multiple industries
• Upcoming major venue openings include Blue Museum and Meow Wolf, which is expected to open in late Q4 2027 or early Q1 2028
• Leasing activity is strengthening across the market; downtown office leasing is improving following a red hot summer for Midtown corridor office leasing, and pricing for available space is firmer than one year ago as available inventory is filled

Cost Management

• Management has prioritized reducing G&A expenses, targeting bringing G&A down to $27 million
• Additional G&A reductions are expected as existing multi-year service and consultant contracts near expiration, allowing for renegotiation or termination; full-year benefits of recent cost cutting progress will be reflected in 2027 results

Capital & Strategy

• A $50 million to $70 million CapEx plan is in place for committed projects through the 2028 stabilization period; management will only pursue new expansion opportunities if they are accretive long-term, with no pressure to deploy capital for growth's sake
• Management has increased transparency with shareholders through improved presentation materials, and expects to provide more detailed forward-looking information as the company approaches stabilization

• Stabilization timeline remains unchanged, with full stabilization still targeted for 2028, in line with prior guidance • 2028 stabilized EBITDA guidance is maintained, with no upward or downward revision; accelerated positive earnings generation ahead of plan is expected to reduce cumulative cash burn through the stabilization period • Total CapEx of $50 million to $70 million is planned for committed projects over the next two years through mid-2028, spread out to align with construction and opening timelines • G&A is targeted to fall to $27 million, with management expecting additional upside (further G&A reductions) beyond this target as contracts reset

No segment-level financial performance data (absolute values or revenue contribution percentages) was provided in this transcript. Only anecdotal operational updates for individual venues were shared, no formal segmented financial results were disclosed.

• The ramp-up of the company's new event space is the most volatile component of the pipeline, as it will require more intensive operational involvement, with actual performance varying between management's optimistic and conservative modeled scenarios • Replacement of the lost Chase rooftop sponsorship takes time, as multi-year sponsorship deals require extended negotiation, leaving a temporary gap in cash flow • Future cash burn levels remain uncertain until more clarity is achieved on opening timelines and capital costs for upcoming projects, which impacts capital allocation decisions

• Overall leasing progress depends on continued absorption of available inventory, and tenant mix alignment with the company's placemaking goals may extend leasing timelines

Q: The 50-70 million in planned CapEx is spread over what time period, and what is the remaining potential pre-G&A annual revenue from unsigned leases? Also, can G&A be reduced further below the 27 million target? / A: The full 50-70 million CapEx will be spent over the next two years, through mid-2028, aligned to construction and opening of Meow Wolf and other projects. Unsigned leases currently hold potential for just over 26 million in annual pre-G&A revenue, a number that may rise as leasing progresses. Additional G&A reductions are expected: many existing inherited 2-3 year service and consultant contracts will expire soon, allowing for renegotiation or termination, with full benefits of recent cost cuts hitting results in 2027.

Q: Have your 2028 stabilized EBITDA expectations changed after reaching cash flow positive ahead of plan, can you elaborate on the lost rooftop sponsor, and what is your plan to reverse Lawn Club's EBITDA decline? / A: Stabilized 2028 EBITDA expectations have not changed; reaching positive cash flow earlier only reduces expected total cash burn through stabilization. The former founding rooftop sponsor was Chase, which exited to prioritize exclusive cardholder experiences; management is in active talks with potential replacements, but multi-year sponsorship deals take time to negotiate. The Lawn Club's year-over-year EBITDA decline is just a revenue shift from moving Sadie's Garden Bar to the standalone Sadie's venue; Lawn Club hit a July revenue record and is set for a strong second half, with aggregate venue revenue up overall.

Q: Are there updates on the approved share repurchase program and $125 million shelf offering, and do you have plans for imminent capital raising? / A: The share repurchase program and shelf offering remain available as strategic tools. No decisions have been made on activating the buyback; management will gain more clarity on cash burn in 2027-2028 as opening timelines and capital costs firm up, and stock performance will also impact any buyback decision. There is no imminent capital raising planned; management remains focused on executing to reach 2028 stabilization with existing assets, and will only pursue opportunistic new investments if they are positive long-term capital allocation decisions.

Q: Have leasing rates trended firmer or softer over the past year, particularly in relation to local political conditions? / A: There is no visible impact of local political conditions on leasing rates or demand. Office leasing has been very strong in Midtown over the summer, and strength is now spreading downtown. Leasing pricing is broadly firmer than a year ago for the seaport, as available inventory is filled and progress on new venues increases the company's pricing power; demand is strong, and management is being judicious to curate a tenant mix that supports its placemaking goals.