Q3 2025 Seaport Entertainment Group Inc Earnings Call Transcript
Key Points
- Seaport Entertainment Group Inc (SEG) plans to allocate capital from the sale of 250 Water Street to deliver long-term value, including reinvestment into existing assets to improve space utilization and drive customer engagement.
- The Manhattan office market has shown strength, with leasing activity exceeding pre-COVID levels, particularly benefiting from office to residential conversions in Lower Manhattan.
- SEG's hospitality operations have seen newer concepts outperform due to strong social and corporate demand, with same-store food and beverage revenues up 8% and overall hospitality revenues increasing 3% year-over-year.
- The Rooftop at Pier 17 has achieved a 5-spot improvement in Pollstar's worldwide top 200 club rankings, hosting 35 concerts with an 86% sell-through rate, driving nearly 100,000 visitors to the Seaport.
- SEG has completed technology initiatives to centralize point-of-sale and procurement systems, enhancing purchasing power, financial visibility, and reporting accuracy across its hospitality businesses.
- International visitation to New York City remains below pre-pandemic levels, impacting higher spending patterns typically associated with international guests.
- Hospitality revenues declined 4% year-over-year in the third quarter, mainly due to lower revenues at the Tin Building and softness among certain legacy stand-alone restaurants.
- Entertainment segment revenues declined 5% year-over-year, primarily due to hosting fewer concerts at the Rooftop at Pier 17 compared to the prior year.
- Landlord segment adjusted EBITDA decreased 45% year-over-year due to noncash charges, including a $4 million loss on 250 Water Street and a $2 million write-off related to the rooftop winter structure.
- SEG's total segment adjusted EBITDA for the third quarter declined by $7 million compared to Q3 2024 on a pro forma basis, reflecting financial performance challenges across segments.
Greetings, and welcome to the Seaport Entertainment Group third quarter 2025 earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Jason Wilk, Senior Vice President of Finance. Thank you. You may begin.
Thank you, operator, and good morning, everyone. With me today is our President and Chief Executive Officer, Matt Partridge, and our Interim Chief Financial Officer, Lenah Elaiwat.
Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10
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