Seaport Entertainment Gr (NYSE:SEG) reported a second consecutive quarter of positive operating EBITDA in the third quarter of 2026, though extreme heat in Las Vegas and canceled concerts in New York left results below management’s expectations.
Operating EBITDA was $362,000, compared with a loss of $2.9 million a year earlier. Chief Financial Officer and Treasurer Lenah Elaiwat said the hospitality and entertainment segments generated positive operating EBITDA, while landlord operations posted a loss.
Seaport’s net loss attributable to common stockholders narrowed 75% to $8.4 million, or 65 cents per share, from $2.61 per share a year earlier. Its non-GAAP adjusted net loss fell to $3 million, or 23 cents per share, from $7.2 million, or 57 cents per share.
Weather Disruptions Weigh on Entertainment Revenue
Partridge said record-setting heat during a long Las Vegas Aviators home stand hurt individual and group ticket sales and attendance, reducing concession and merchandise sales. The average high on home game dates was 110 degrees in July and 105 degrees in August, he said.
In New York, a late-September nor’easter forced the cancellation of two sold-out concerts that management expected to be among the season’s most profitable. Other shows were rescheduled, reducing day-of-show attendance and spending.
Despite the disruptions, entertainment operating EBITDA rose 26% year over year to $2.3 million, helped by lower variable costs and other expense reductions, Elaiwat said. Concert series revenue fell 18%, reflecting three fewer shows, lower-priced artists, reduced sponsorship revenue and weather-related challenges. Las Vegas revenue declined 4%, while operating EBITDA there increased 15%.
Partridge said the Rooftop at Pier 17 finished the year with an 86% sell-through rate across 61 shows. He also said the company is expanding the Las Vegas Ballpark calendar beyond baseball, including three sold-out nights of Cosmic Baseball in October and the return of the Enchant holiday attraction in November. Ticket sales for Enchant were pacing ahead of last year, he said.
New Openings and Leasing Plans
The hospitality segment posted operating EBITDA of approximately $234,000, an improvement of $3.7 million from a year earlier. Elaiwat attributed the gain primarily to the closure of the loss-making Tin Building food hall operations in the first quarter. Sadie’s, an internally developed restaurant, generated positive operating EBITDA with double-digit margins, she said.
Landlord rental revenue declined 24% year over year, as the quarter was the first full period without rent from Nike or ESPN. Excluding their prior-year contributions, rental revenue increased 22%, reflecting new income from the Balloon Museum, Gitano, Cork and docking activities at Pier 17.
Partridge said the Balloon Museum, which opened in August in the Tin Building, has helped lift activity at nearby businesses. Mister Dips’ comparable revenue increased 15% year over year since the opening, he said. During the question-and-answer session, Partridge characterized his understanding of museum attendance—roughly 1,500 to 2,000 people a day depending on the day—as anecdotal, noting that Seaport does not operate the attraction.
The company has more than 160,000 square feet of signed concepts and tenants that have yet to open. Flanker Kitchen + Sports Bar and Hidden Boot Saloon are now expected to open in late first quarter or early second quarter 2027 after contractor-related delays. Partridge said those issues were largely behind the projects and that he was not aware of anything likely to cause further delays, while noting that approvals can make timelines volatile.
A Public Service concept and a Pier 17 event space are planned to open in early to mid-2027, while Meow Wolf has a preliminary early-2028 opening. Seaport also plans an in-house bakery for mid-2027 and has signed a 10-year lease with Brooklyn DOP for a pizzeria expected to open in mid-to-late 2027.
Spending and Balance Sheet
Quarterly capital expenditures totaled $13.9 million. Asked about an estimated $35 million to $55 million in remaining spending to reach stabilization, Elaiwat said the company was tracking toward the high end of that range while continuing to assess project scopes and costs.
Seaport ended the quarter with a $72.2 million net cash position, including $110.3 million in cash equivalents and restricted cash. Its only outstanding debt was a $38.1 million Las Vegas Ballpark loan. The September sale of 85 South Street generated approximately $7.2 million in net proceeds after credits, taxes and closing costs, Elaiwat said.
General and administrative expenses fell 65% to $6.2 million, though the prior-year quarter included substantial leadership transition costs. Excluding those costs, quarterly G&A declined 4%. Partridge said management expects further incremental savings as it renegotiates or replaces existing contracts.
About Seaport Entertainment Gr (NYSE:SEG)
Seaport Entertainment Group Inc (NYSE:SEG) is an entertainment and hospitality company focused on owning, operating and developing destinations that combine dining, retail, sports, entertainment and real estate. Its activities are centered on creating mixed-use experiences that attract visitors, residents and event attendees.
The company’s portfolio includes the Seaport district in Lower Manhattan, a large-scale waterfront destination featuring restaurants, shops, entertainment venues, public spaces and cultural attractions.
