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Seaport Entertainment Group Inc. (SEG)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 was operationally mixed: total revenue was essentially flat year-over-year at $22.84M (−0.3% YoY), but net loss attributable to common stockholders widened to $(41.6)M; non-GAAP adjusted net loss improved to $(19.2)M, reflecting better flow-through and one-time items .
  • Hospitality revenue rose, supported by non-comparable concepts, while sponsorship/events declined due to reduced winter programming; management highlighted ongoing Tin Building underperformance and actions to fix the model in 2025 .
  • Liquidity strengthened materially: SEG ended 2024 with ~$167.8M cash and $102.4M debt; rights offering was >2x oversubscribed, providing strategic flexibility for leasing/programming Seaport vacancies and growth initiatives .
  • No formal 2025 guidance; management expects Q1 2025 hospitality revenue headwinds from strategic hour reductions (margin-positive), and plans more detailed KPIs starting with Q1 2025 results; G&A stabilization targeted by Q2 2025 with further improvements thereafter .

What Went Well and What Went Wrong

  • What Went Well

    • Strength in consolidated hospitality revenue (+6.5% YoY); overall hospitality across consolidated/unconsolidated up 12.8% YoY, driven by Lawn Club, Dead Rabbit pop-up, and strong Pier 17 restaurants (The Fulton, Malibu Farm) .
    • Improved landlord economics: rental revenue up ~15% YoY on Alexander Wang lease commencement; combined segment profitability improved ~20% YoY in Q4 .
    • Strategic progress and pipeline: long-term lease signed with Meow Wolf (~74.5k–75k RSF) targeting >1M annual visitors; Gitano NYC opening; extended Live Nation partnership for Rooftop at Pier 17; winter glass enclosure to enable year-round programming from fall/winter 2025 .

  • What Went Wrong

    • Same-store hospitality down 3.5% YoY on Tin Building underperformance; higher hospitality opex/payroll (some one-time) pressured segment operating income .
    • Sponsorship/events revenue fell 13.6% due to reduced winter programming (a choice to improve flow-through), weighing on total revenue mix .
    • Equity losses impacted by a $10M write-off of Jean-Georges Restaurants warrants; while non-GAAP adjusted results improved, GAAP net loss increased YoY; G&A still elevated with transition items .

Financial Results

Consolidated quarterly comparables

MetricQ4 2023Q3 2024Q4 2024
Total Revenues ($USD ‘000s)$22,903 $39,697 $22,844
Net Loss Attributable to Common SH ($USD ‘000s)$(36,008) $(32,511) $(41,626)
Diluted EPS ($)$(6.52) $(5.89) $(3.63)
Non-GAAP Adjusted Net Loss ($USD ‘000s)$(27,951) —$(19,189)
Non-GAAP Adjusted EPS ($)$(5.06) —$(1.67)

Revenue mix (Q4 YoY)

Revenue Component ($USD ‘000s)Q4 2023Q4 2024
Sponsorships, events, entertainment$9,980 $8,619
Hospitality$7,318 $7,793
Rental$5,601 $6,434
Other$4 $(2)
Total$22,903 $22,844

KPIs and notable items

KPI / ItemQ4 2024Commentary
Hospitality revenue (overall, incl. unconsolidated) YoY+12.8% Strength from non-comparable concepts (Lawn Club, Dead Rabbit pop-up), and strong performance at The Fulton and Malibu Farm .
Same-store hospitality YoY−3.5% Tin Building underperformance .
Rental revenue YoY+14.8% (calc. from table) Alexander Wang lease commencement; held opex relatively flat .
Other income~$2.0M One-time legacy lawsuit settlement .
Combined segment profitability~+20% YoY Improved flow-through .
Cash, cash equivalents, restricted$167.8M Post rights offering bolster.
Total debt$102.4M; no meaningful maturities until Q3 2029 WA maturity ~8.7 yrs; effective WA rate 7.8% (40% fixed at 4.9%; 60% floating 12.2% before TRS; TRS reduces floating to 9.7%) .

Versus estimates

  • S&P Global consensus for Q4 2024 EPS and revenue was not available; no numeric comparison possible. Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue2025Not providedNot provided; Q1 2025 hospitality revenue expected to face headwinds from strategic hour reductions (margin-positive) Maintained (no formal guidance)
Margins/Segment OI2025Not providedExpect gains in segment operating income over time as leasing, cost actions, and best practices scale Maintained (qualitative)
G&A2025Not providedQ2 2025 targeted as stabilization point; expected to decline thereafter as savings/renegotiations flow through New qualitative color
OI&E2025Not providedOne-time ~$2M other income in Q4 from legacy settlement; no run-rate guidance N/A
Tax rate2025Not providedNot provided Maintained (none)
Capex/TI/Leasing2025Not providedSignificant cash earmarked for landlord work, TI, leasing commissions for Seaport reprogramming New qualitative color
Debt/MaturitiesMulti-year—No meaningful maturities until Q3 2029; WA maturity ~8.7 yrs Informational

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Current Period (Q4 2024)Trend
Seaport programming/leasingExtended Live Nation 5 years; Dead Rabbit license; rights offering completed Meow Wolf 20-yr lease (~75k RSF) with >1M expected annual visitors; Gitano NYC opening; Live Nation extension reaffirmed; winter glass enclosure to enable year-round Rooftop programming from fall/winter 2025 Accelerating pipeline and year-round activation
Tin Building optimization—Consolidate concepts, centralize purchasing, expand bar seats, improve event business; 2025 priority to reduce cash burn Active turnaround underway
Financial disclosureNo investor call in Q3 No formal guidance yet; will add robust KPIs starting Q1 2025 Improving transparency ahead
Balance sheet/capitalRights offering closed; ~$166.7M net proceeds ~$167.8M cash, $102.4M debt; >2x oversubscribed rights offering; focus on TI/leasing/landlord work; growth optionality Stronger liquidity enabling execution
250 Water Street—Exploring sale/partnership; legacy 421-a abatement enhances attractiveness Monetization optionality
Las Vegas—Aviators/ballpark programming; evaluate concerts/corporate/community events on non-game days Incremental revenue initiatives

Management Commentary

  • “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.” — Anton Nikodemus, CEO .
  • “Given their performance in other markets, we anticipate Meow Wolf drawing more than 1 million people to the Seaport each year… more than 5x what is generated by our concerts.” — Anton Nikodemus .
  • “Overall, we improved our combined business segments profitability by nearly 20% during the fourth quarter of 2024 versus 2023.” — Matt Partridge, CFO .
  • “We will not be providing formal guidance for the foreseeable future… We anticipate providing… additional disclosure starting with our first quarter 2025 operating and financial results.” — Matt Partridge .

Q&A Highlights

  • Format: The company solicited questions in advance and incorporated them into prepared remarks; the transcript does not include a traditional live Q&A section .
  • Clarifications provided in remarks:
    • Near-term: Q1 2025 hospitality revenue headwinds from strategic reductions in hours (margin-positive) .
    • G&A: “Q2 2025 being a stabilization point,” with further declines expected thereafter as savings/renegotiations take hold .
    • Capital allocation: Cash prioritized for Seaport leasing/programming (TI, landlord work, commissions), plus selective growth (e.g., Bryant Park opportunity) .

Estimates Context

  • Q4 2024: Wall Street consensus for EPS and revenue was not available in S&P Global at the time of review; therefore, no numeric “vs. consensus” comparison can be made. Values retrieved from S&P Global.*
  • Forward coverage is thin; for Q3 2025 (next fiscal quarter available), S&P Global shows:
    • EPS Consensus Mean: −$0.76 (1 estimate)*
    • Revenue Consensus Mean: $46.90M (1 estimate)*
    • EBITDA Consensus Mean: −$3.18M (1 estimate; note large negative “actual” in dataset out of scope for this recap)*
      Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Liquidity is a differentiator: ~$168M cash vs. ~$102M debt and no meaningful maturities until Q3 2029 give SEG runway to execute leasing/programming and operational fixes without near-term balance sheet pressure .
  • The 2024 rights offering (>2x oversubscribed) and strong cash position support accelerated activation of Seaport vacancies and selective growth (e.g., Bryant Park), a potential catalyst path over 12–24 months .
  • Year-round Rooftop activation (glass enclosure) and the Meow Wolf lease are structural demand drivers; Meow Wolf’s expected >1M annual visitors could materially lift traffic to the district, benefiting hospitality and tenants .
  • Tin Building turnaround is pivotal: 2025 focus on simplifying concepts, improving margins, and reducing cash burn—execution here is key for margin trajectory .
  • Near term, Q1 2025 revenue optics may be softer due to strategic hour reductions, but with positive margin intent; watch for Q2 2025 G&A stabilization and new disclosure to gauge progress .
  • Segment flow-through improved in Q4; continued rental strength and better mix from non-comparable concepts can support margin recovery as programming scales .
  • Optionality at 250 Water Street (sale/partner) offers potential balance-sheet monetization; any transaction update would be a notable stock catalyst .

Footnotes:

  • Values retrieved from S&P Global.

Sources:

  • Q4 2024 press release and financials (8-K/Ex-99.1)
  • Q3 2024 press release and financials (8-K/Ex-99.1)
  • Rights offering 8-K and press release (closing/terms)
  • Q4 2024 earnings call transcript (prepared remarks)