Seaport Entertainment Gr NYSE: SEG reported its first quarter of positive operating EBITDA and positive non-GAAP adjusted net income in the second quarter of 2026, as the company benefited from improved operations, lower corporate costs, the closure of the Tin Building and payments associated with the early termination of Nike’s Pier 17 lease.
For the quarter ended June 30, total operating EBITDA improved by $5.6 million year over year, reaching positive $4.5 million compared with a $1.1 million loss in the prior-year period. President and CEO Matt Partridge said all three operating segments—Landlord Operations, Hospitality and Entertainment—generated positive operating EBITDA during the quarter.
“This quarter’s results reflect continued momentum since our inception,” Partridge said, adding that the company recorded its seventh consecutive quarter of double-digit improvement in non-GAAP adjusted net income per share.
Non-GAAP adjusted net income totaled $320,000, or $0.02 per share, compared with an adjusted net loss of $7.4 million, or $0.58 per share, a year earlier. Net loss attributable to common stockholders narrowed 29% to $10.5 million, or $0.82 per share, from $1.16 per share in the prior-year quarter.
Nike Termination and Landlord Results
Chief Financial Officer and Treasurer Lenah Elaiwat said rental revenue rose $2.8 million, or 67%, year over year, primarily because of the Nike lease termination agreement. Nike had previously exercised an option to shorten its lease term, and in the second quarter Seaport agreed to terminate the lease effective April 30, 2026.
The company received the remaining termination payment as well as a payment representing most of the remaining rent under the lease. The transaction, including the write-off of the related straight-line rent balance, contributed a net $2.7 million year-over-year increase in rental revenue, Elaiwat said.
The early surrender also enables Seaport to begin construction earlier on its planned event space at Pier 17. Partridge described the future venue as a flexible, multi-floor space with a dedicated entrance and views of the Manhattan skyline, Brooklyn Bridge, Brooklyn skyline and East River. The company expects the space to support corporate off-sites, convention-style events, product launches and consumer-facing programming.
Landlord Operations generated operating EBITDA of $600,000, an improvement of $3.6 million year over year. Excluding the effects of the Nike lease in both periods, landlord operating EBITDA rose 23%, according to Elaiwat. Segment operating costs declined about $800,000, or 10%, driven largely by lower insurance premiums and reduced cleaning, security and technology spending.
Seaport also said Blue Fox Entertainment acquired the 46,000-square-foot former iPic Theaters lease through iPic’s bankruptcy process and paid all outstanding balances. Blue Fox plans to reimagine and rebrand the theater space.
Leasing, Development and Capital Spending
Partridge said leasing activity slowed during the quarter because much of the Seaport’s available space has already been leased or programmed. Available space has declined to less than 50,000 square feet, or just over 10% of the property, from roughly 150,000 square feet at the company’s spin-off.
The company expects more than 194,000 square feet of currently non-income-producing space to open with new concepts over the next 18 months. These projects include the Balloon Museum, Willett’s, Flanker Kitchen + Sports Bar, Hidden Boot Saloon, a concept from the team behind Public Records, the Pier 17 event space and The Owl. Partridge said the openings represent more than $20 million in incremental annualized operating EBITDA that has not yet been reflected in results.
Seaport delivered the Tin Building space to the Balloon Museum in June, and rent is expected to begin when the museum opens. The company said it still expects Meow Wolf, Public Records, Flanker and Hidden Boot Saloon to remain on schedule.
Capital expenditures totaled $14.8 million in the quarter, primarily for landlord work tied to the Balloon Museum, Flanker, Hidden Boot Saloon and maintenance projects. Elaiwat said Seaport has spent about $20 million of its expected $70 million to $90 million stabilization-related capital program during the first half of the year, leaving approximately $50 million to $70 million to be spent over the next two years.
Hospitality and Entertainment Performance
Hospitality produced approximately $280,000 in positive operating EBITDA, improving by $3.1 million from the prior year. The improvement reflected a full-quarter benefit from closing the Tin Building, which had generated a $2.8 million EBITDA loss in the comparable period.
Sadie’s, Seaport’s internally developed restaurant concept, produced positive operating EBITDA in its first full quarter of operation. Sadie’s Garden Bar revenue increased 125% from a year earlier. Management said the venue benefited from activity surrounding the New York Knicks’ playoff run and FIFA World Cup programming, though legacy full-service restaurants experienced softer sales.
Entertainment operating EBITDA declined $1 million, or 23%, year over year. Elaiwat attributed the decline principally to higher repair, maintenance and operating costs at the Rooftop at Pier 17, as well as lower sponsorship revenue following the non-renewal of a legacy sponsor. Partridge identified Chase as the departing sponsor and said replacing sponsorships can take time because agreements are generally multiyear arrangements.
The rooftop hosted 22 concerts during the quarter, including 13 sellouts, with a 91% sell-through rate. Seaport said premium offerings and food-and-beverage spending per attendee continued to increase.
In Las Vegas, operating EBITDA increased despite seven fewer Aviators home games. The Las Vegas Ballpark benefited from sold-out Banana Ball events and a six-game Athletics series. Merchandise sales rose more than 50% year over year due to the Athletics games; excluding those games, Aviators retail sales increased 8%.
Balance Sheet and Outlook
General and administrative expense fell 20% to $6.6 million. Excluding restructuring severance and leadership-transition costs, G&A declined 35% year over year and 18% sequentially. Partridge said trailing 12-month G&A has fallen to less than $27 million as of the second quarter from $34 million as of the third quarter of 2025.
At quarter-end, Seaport held $127 million in cash equivalents and restricted cash, representing a net cash position of $88.9 million. Its only outstanding debt was the $38.1 million Las Vegas Ballpark loan, and the company made about $1 million of recurring principal payments during the quarter.
Management said the next three quarters should show year-over-year improvement, although results may not match the second quarter because of seasonality, tenant opening schedules and event timing. The company continues to target initial stabilization of its existing assets in 2028, with Partridge saying the full-year benefits of operational changes and new openings should support an improved earnings profile in 2027 and further gains in 2028.
About Seaport Entertainment Gr (NYSE:SEG)
Seaport Entertainment Group Inc develops, owns, and operates a portfolio of entertainment and real estate assets primarily in the New York City and Las Vegas. It operates through three segments: Landlord Operations; Hospitality; and Sponsorships, Events, and Entertainment. The company's Landlord Operations segment engages in the holding of ownership interests in and operation of physical real estate assets, such as restaurant, retail, office, and entertainment properties, as well as residential units in Seaport.
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