The latest 13F filing from Pershing Square Capital Management (Bill Ackman) offers a clear snapshot of how one of the world’s most concentrated, high-conviction investors is positioning his U.S. equity book. Ackman is known for running a deliberately small portfolio, emphasizing dominant franchises, long duration cash flows, and situations where operational improvement or strategic change can unlock substantial value.This quarter’s filing reinforces that philosophy. Pershing Square remains highly concentrat ...

Financial Data and Key Metrics Changes - Total consolidated revenues for Q3 2025 were $45.1 million, reflecting a 1% year-over-year increase compared to pro forma Q3 2024 [24] - Third-quarter net loss attributable to common stockholders was $33.2 million, a year-over-year decline of approximately $700,000 or 2%, with a net loss per share of $2.61, improving by $3.28 per share or 56% compared to Q3 2024 [31] - Non-GAAP adjusted net loss attributable to common stockholders for Q3 was $7.2 million, representing an improvement of around $18 million or 71% versus the comparable period in 2024 [32] Business Line Data and Key Metrics Changes - Hospitality revenues declined 4% year-over-year in Q3, primarily due to lower revenues at the Tin Building and softness in certain legacy standalone restaurants [25] - Same-store hospitality revenue rose 11%, driven by the success of the Long Club and the strong launch of Dutano [25] - Entertainment segment revenues decreased 5% year-over-year, primarily due to hosting seven fewer concerts at the Rooftop at Pier 17 compared to the prior year [26] Market Data and Key Metrics Changes - International visitation to New York City remains below pre-pandemic levels, currently at about 90% of 2019 volume, while domestic travel remains resilient [6][7] - Total New York City visitation is projected to reach almost 65 million visitors in 2025, surpassing 2024 levels and approaching pre-pandemic visitation levels [7] Company Strategy and Development Direction - The company aims to refine its focus and priorities to stabilize and optimize operating models, emphasizing financial discipline and thoughtful capital deployment [4] - Plans include further reinvestment into existing assets to fill vacancies and improve space utilization, while also seeking opportunities to create long-term value through partnerships in real estate-driven hospitality and entertainment [5] - The company is committed to enhancing the Seaport as a cultural and experiential destination, leveraging events to drive foot traffic and awareness [45][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the mixed picture of the New York City market, with a focus on curating high-quality experiences to drive visitation and customer spending [10] - The company remains optimistic about the performance of new concepts and events, which are expected to enhance the overall guest experience and drive incremental spending [16][18] - Management plans to outline a go-forward strategy for the Tin Building in the next earnings call, indicating a focus on improving operational efficiency [53] Other Important Information - The sale of 250 Water Street is expected to positively impact historical cash burn by more than $7 million, eliminating interest expenses and related carrying costs [10] - The company has completed technology initiatives to centralize point-of-sale and procurement systems across hospitality businesses, enhancing purchasing power and financial visibility [14] Q&A Session Summary Question: What are the biggest levers to drive profitability? - Management highlighted the importance of getting tenants open and operational, focusing on operational models, and creating efficiencies in G&A to achieve break-even and profitability [37] Question: Can you discuss the demand for prospective spaces? - Management noted strong demand for restaurant space and is focusing on finding the right partners and experiences for the community [38][39] Question: What is the expected timing for tenant openings? - Management anticipates increased velocity in tenant openings in the back half of the year, with specific timelines for various tenants [40][41] Question: How will special events drive exposure and awareness? - Management emphasized that events like the Macy's Wine and Food Festival are crucial for marketing and pulling visitors to the Seaport, enhancing its position as a cultural destination [43][44] Question: Will the restructuring with Jean-Georges lead to break-even in 2026? - Management stated that they are not in a position to provide forward guidance on the Tin Building's performance in 2026 but are focused on outlining plans in the next earnings call [52][53] Question: What are the expectations for capital expenditures in Q4? - Management indicated that capital expenditures for Q4 will likely be light, with a ramp-up expected in the first half of 2026 [59]

Financial Data and Key Metrics Changes - Total consolidated revenues for Q3 2025 were $45.1 million, reflecting a 1% year-over-year increase compared to pro forma Q3 2024 [23] - Net loss attributable to common stockholders was $33.2 million, a year-over-year decline of approximately $700,000 or 2%, with a net loss per share of $2.61, improving by $3.28 per share or 56% compared to Q3 2024 [31] - Non-GAAP adjusted net loss attributable to common stockholders for Q3 was $7.2 million, representing an improvement of around $18 million or 71% versus the comparable period in 2024 [32] Business Line Data and Key Metrics Changes - Hospitality revenues declined 4% year-over-year in Q3, primarily due to lower revenues at the Tin Building and certain legacy standalone restaurants [24] - Same-store hospitality revenue rose 11%, driven by the success of the Long Club and the strong launch of Dutano [25] - Entertainment segment revenues decreased 5% year-over-year, mainly due to hosting seven fewer concerts at the Rooftop at Pier 17 compared to the prior year [26] Market Data and Key Metrics Changes - International visitation to New York City remains below pre-pandemic levels, currently at about 90% of 2019 volume, while domestic travel remains resilient [5] - Total New York City visitation is projected to reach almost 65 million visitors in 2025, surpassing 2024 levels and approaching pre-pandemic visitation levels [6] - The Manhattan office market has shown strength, with leasing activity exceeding pre-COVID levels, particularly in financial services, technology, and media industries [6] Company Strategy and Development Direction - The company aims to refine its focus and priorities to stabilize and optimize operating models, emphasizing financial discipline and thoughtful capital deployment [4] - Plans include reinvestment into existing assets to improve space utilization and drive customer engagement, while also seeking opportunistic growth in real estate-driven hospitality and entertainment platforms [5] - The company is committed to enhancing the Seaport as a cultural and experiential destination, leveraging marquee events to drive visitation and awareness [39] Management's Comments on Operating Environment and Future Outlook - Management noted that the New York City market presents a mixed picture, with challenges in international tourism but resilience in domestic travel [5] - The company is optimistic about the performance of new hospitality concepts and events, which are expected to drive customer spending and engagement [12][16] - Management expressed confidence in the sale of 250 Water Street, which is expected to positively impact cash burn and eliminate associated interest expenses [10] Other Important Information - The company completed several technology initiatives, including centralizing point-of-sale and procurement systems across hospitality businesses, enhancing financial visibility and reporting accuracy [13] - The sale of 250 Water Street is expected to close by December 15, with an increased sale price of $152 million [10] - General and administrative expenses during the quarter were $18 million, reflecting a year-over-year reduction of 2% [30] Q&A Session Summary Question: What are the biggest levers to drive profitability? - Management highlighted the importance of getting tenants open and operational, focusing on operational efficiencies, and filling remaining vacancies as key drivers for profitability [35] Question: Can you discuss the demand for prospective spaces? - Management noted strong demand for restaurant space and is focusing on finding the right partners and experiences for the community [36] Question: What is the timing for opening new tenants? - Management anticipates that velocity will pick up in the back half of the year, with several openings expected before Meow Wolf [38] Question: What are the expectations for the Tin Building's break-even in 2026? - Management stated that they are not in a position to provide forward guidance on the Tin Building's performance in 2026 but will outline plans in the next earnings call [41] Question: What are the capital expenditures expected for Q4? - Management indicated that capital expenditures for Q4 will be somewhat light, with a ramp-up expected in the first half of 2026 [45]

Financial Performance - Total revenues for Q3 2025 were $45.05 million, an increase of 14.3% compared to $39.43 million in Q3 2024[7] - Net loss for Q3 2025 was $33.2 million, or $2.61 per share, a 55.7% improvement from a net loss of $5.89 per share in Q3 2024[7] - Non-GAAP Adjusted Net Loss for Q3 2025 was $7.2 million, or $0.57 per share, significantly improved by 71.2% from a loss of $25.08 million in Q3 2024[7] - Year-to-date total revenues for 2025 reached $100.92 million, up 15.2% from $87.61 million in the same period of 2024[10] - Year-to-date net loss was $79.9 million, or $6.29 per share, a 68.9% improvement from a net loss of $20.21 per share in the first nine months of 2024[11] - Total revenues for the three months ended September 30, 2025, increased to $45,050,000, up 14% from $39,430,000 in the same period of 2024[27] - Hospitality revenue rose to $16,603,000, a significant increase of 85% compared to $8,954,000 in Q3 2024[27] - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $33,214,000, compared to a loss of $32,511,000 in Q3 2024[29] - Non-GAAP adjusted net loss attributable to common stockholders for the three months ended September 30, 2025, was $7,218,000, compared to $25,078,000 in Q3 2024[29] - Operating income (loss) for the three months ended September 30, 2025, was a loss of $33,898,000, compared to a loss of $20,091,000 in the same period of 2024[27] - Earnings per share attributable to common shareholders for the three months ended September 30, 2025, was $(2.61), an improvement from $(5.89) in Q3 2024[27] Assets and Liabilities - Total assets decreased to $699,074,000 as of September 30, 2025, down from $743,556,000 at the end of 2024[25] - Cash and cash equivalents decreased to $106,215,000 from $165,667,000 at the end of 2024, reflecting a decline of 36%[25] - Total liabilities increased to $203,333,000 as of September 30, 2025, compared to $172,174,000 at the end of 2024[25] Corporate Developments - The company entered into an agreement to sell the 250 Water Street development site for $150.5 million[5] - Approximately 113,100 square feet of space within the Seaport neighborhood has been leased, programmed, or has development plans established[5] - The company completed a corporate restructuring, converting various management agreements into new license agreements with Jean-Georges Restaurants[5] - As of September 30, 2025, the company had $116.8 million in cash and cash equivalents, with $101.4 million of consolidated debt at a weighted-average interest rate of 7.3%[13] - The company was uplisted to the NYSE and added to the Russell 2000 Index and Russell Microcap Index[5] Share Information - Total weighted average shares for the three months ended September 30, 2025, were 12,720,000, compared to 5,522,000 in Q3 2024[29]

Spin-off and Capital Contribution - The Company completed its spin-off from Howard Hughes Holdings Inc. on July 31, 2024, distributing all outstanding shares of common stock to HHH's stockholders [166]. - Prior to the Separation, the Company received a capital contribution of $23.4 million from HHH to support its operating, investing, and financing activities [167]. Business Segments and Operations - The Company operates through three segments: Hospitality, Entertainment, and Landlord Operations, focusing on asset management, partnerships, acquisitions, and development projects [160]. - The Tin Building by Jean-Georges, completed in Q3 2022, is fully leased and has shown improved operating results in 2024 compared to the previous year [179]. - The Las Vegas Aviators, a Triple-A Minor League Baseball team, plays at the Las Vegas Ballpark, which has a capacity of 10,000, contributing to the Company's entertainment segment [164]. - The Company aims to fill vacancies in its Landlord Operations portfolio, which is under a long-term ground lease from the City of New York [165]. - The Company's operations are highly seasonal, with increased revenue typically occurring from May through October due to outdoor events and favorable weather conditions [180]. Financial Performance - Total revenue for the three months ended September 30, 2025, increased by 14% to $45.05 million, driven by an 85% increase in hospitality revenue to $16.60 million [192]. - Hospitality costs surged by 115% to $19.92 million for the same period, contributing to an operating loss of $33.90 million, which is a 69% increase compared to the prior year [192]. - Net loss attributable to common stockholders for the three months ended September 30, 2025, increased by 2% to $33.20 million, primarily due to a $7.20 million decrease in other income [193]. - For the nine months ended September 30, 2025, total revenue rose by 15% to $100.92 million, with hospitality revenue increasing by 79% to $39.52 million [200]. - General and administrative expenses decreased by 33% to $36.01 million for the nine months ended September 30, 2025, largely due to a reduction in prior separation costs [200]. - The company incurred leadership transition costs of $11.5 million for the three months ended September 30, 2025, with no such costs recorded in the prior-year period [191]. - Rental revenue decreased by 32% to $13.64 million for the nine months ended September 30, 2025, reflecting challenges in the rental segment [200]. Adjusted EBITDA and Losses - Hospitality Adjusted EBITDA losses decreased by $2.3 million for the nine months ended September 30, 2025, compared to the prior-year period [212]. - Landlord Operations Adjusted EBITDA loss increased by $4.3 million compared to the prior-year period, primarily due to a $4.0 million loss recognized on assets held for sale [224]. - The company recorded a loss on assets held for sale of $3.99 million for both the three and nine months ended September 30, 2025, indicating asset management challenges [192]. Cash Flow and Liquidity - Cash used in operating activities decreased by $21.4 million to $26.6 million in the nine months ended September 30, 2025, compared to $48.0 million in the prior-year period [242]. - Cash used in investing activities decreased by $61.1 million to $21.1 million in the nine months ended September 30, 2025, compared to $82.2 million in the prior-year period [243]. - Cash provided by financing activities decreased by $117.5 million to cash used in financing activities of $3.4 million in the nine months ended September 30, 2025, compared to cash provided of $114.1 million in the prior-year period [244]. - As of September 30, 2025, cash and cash equivalents were $106.2 million, down from $165.7 million as of December 31, 2024 [234]. - Management believes existing cash balances and access to capital markets provide adequate liquidity to meet current and long-term obligations [239]. Interest Expense and Debt - Interest expense decreased by 96% to $0.13 million for the three months ended September 30, 2025, compared to $3.13 million in the prior-year period [198]. - As of September 30, 2025, the company had third-party mortgages payable of $101.4 million related to the 250 Water Street development [235]. - As of September 30, 2025, the weighted average interest rate on the $40.1 million of fixed-rate indebtedness outstanding was 4.92% per annum [264]. - If short-term interest rates had been 1% higher, interest expense would have increased by approximately $0.2 million and $0.5 million for the three and nine months ended September 30, 2025, respectively [264].

Core Viewpoint - Seaport Entertainment Group Inc. reported its operating and financial results for the quarter ended September 30, 2025, highlighting successful events and positioning efforts for the Seaport as a key destination [1] Financial Performance - The company hosted significant events such as the Macy's 4th of July Fireworks celebration and the New York City Wine & Food Festival, indicating strong operational performance [1] Strategic Initiatives - The company is focused on transforming the Seaport into a must-visit location, showcasing its commitment to enhancing the visitor experience and driving engagement [1]

Group 1 - Seaport Entertainment Group and Carver Road Hospitality announced the opening of Flanker Kitchen + Sports Bar in Fall 2026 [1] - The venue will be approximately 14,000 square feet and serve as the East Coast flagship for the Flanker brand [1] - Flanker New York City aims to expand its integrated dining and entertainment concept in key markets across the country [1]

Investment Rating - The report maintains an "Outperform" rating for the industry [1] Core Insights - The demand for lawn and pool robots is surging due to technological upgrades, with domestic companies competing vigorously [5] - The global lawn mower market is projected to reach $10 billion by 2024, with a compound annual growth rate (CAGR) of 2% from 2013 to 2023 [3] - The penetration rate of robotic lawn mowers is expected to increase significantly, driven by advancements in technology [3][29] Summary by Sections 1. Overseas Lawn Demand and Market Size - The lawn care culture in Europe and the U.S. has led to a substantial market for lawn mowers, with 180 million private gardens [3][12] - The global lawn mower market is expected to reach approximately $10.8 billion in 2024, with a CAGR of 2.1% from 2013 to 2023 [13][15] 2. Rapid Iteration of Boundaryless Smart Lawn Mowers - The introduction of RTK satellite differential positioning technology has significantly improved the performance of robotic lawn mowers, leading to a sales explosion [3][30] - By the first half of 2025, global sales of robotic lawn mowers are expected to grow by 327% year-on-year, reaching 2.34 million units [29] 3. Competitive Landscape of the Robotic Lawn Mower Industry - Traditional leaders like Husqvarna and Worx still hold significant market share, but domestic companies such as Ninebot, Ecovacs, and Mamotion are rapidly gaining ground [40][42] - Domestic companies are leveraging technological advantages and innovative product iterations to capture market share in overseas markets [42] 4. Pool Robot Market Dynamics - The global pool robot market is projected to reach $2.5 billion by 2024, with a CAGR of 16% from 2019 to 2024 [6] - The penetration rate of pool robots is expected to rise from 18% in 2019 to 26% in 2024, with further growth anticipated by 2029 [6] 5. Investment Recommendations - The report suggests focusing on companies like Stone Technology, Guangfeng Technology, and Ecovacs, which are well-positioned to benefit from the technological advancements in the industry [5]

Group 1 - Seaport Entertainment Group (NYSE: SEG) is a real estate holding company with diverse real estate assets, hospitality interests, and ownership of a minor league baseball team [1] - The analysis covers developments and performance of Seaport Entertainment Group over the past five months [1]

Financial Data and Key Metrics Changes - Total consolidated revenues during Q2 2025 were $39.8 million, a 1% year-over-year increase compared to pro forma Q2 2024 [24] - Entertainment segment revenues increased by 16% year-over-year, driven by 11 additional concerts and higher sponsorship and concession revenue [24] - Net loss attributable to common stockholders was negative $14.8 million, representing a year-over-year improvement of $20.2 million or 58% [30] - Non-GAAP adjusted net loss attributable to common stockholders for Q2 was negative $7.4 million, an improvement of $21 million or 74% versus the comparable period in 2024 [30] - General and administrative expenses during the quarter were $8.3 million, resulting in a year-over-year reduction of 55% [28] Business Line Data and Key Metrics Changes - Hospitality segment revenues declined 15% compared to pro forma Q2 2024, while same-store hospitality revenue increased by 1% during the second quarter [25][18] - Entertainment operating EBITDA in Q2 2025 increased by 122%, benefiting from lower per show production expenses and a non-repeating bad debt provision [25] - Same-store hospitality revenues were up 1%, while overall hospitality revenues declined 4% year-over-year, indicating notable sequential improvements from the first quarter [18] Market Data and Key Metrics Changes - Rental revenue for the quarter increased by 10% year-over-year, driven by contractual rent escalations and higher percentage rents [26] - Other revenue, including sponsorship income related to landlord-managed assets, declined by 26% [26] Company Strategy and Development Direction - The company is focused on creating operational efficiencies and has internalized food and beverage operations at Seaport, transitioning away from management agreements [5] - The company aims to achieve operational breakeven by 2026 and is exploring strategic partnerships for the 250 Water Street project [4] - The company is actively working to expand its hospitality and entertainment offerings, including the development of a winter enclosure at Pier 17 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the interest in the 250 Water Street project and the potential for strategic partnerships [4] - The company is encouraged by the momentum in programming and leasing, with strong interest from prospective tenants [7] - Management acknowledged the challenges faced but emphasized the progress made in stabilizing operations and building a foundation for future growth [32] Other Important Information - The company successfully uplisted from the NYSE American to the New York Stock Exchange and was added to the Russell 2000 and Russell Microcap indexes [22] - Capital expenditures in Q2 2025 totaled $6.7 million, primarily related to various venue developments and improvements [30] - Long-term debt outstanding as of June 30 totaled $101.4 million, with a negative net debt position reflecting strong cash balances [31] Q&A Session Summary Question: What are the expectations for the 250 Water Street project? - Management indicated there is significant interest from potential strategic partners and that they are evaluating options to maximize value [4] Question: How is the company addressing the challenges in the hospitality segment? - Management highlighted cost containment initiatives and operational efficiencies that have helped offset revenue declines [18][19] Question: What is the outlook for the entertainment segment moving forward? - Management expressed confidence in the continued success of the entertainment segment, citing strong concert attendance and upcoming events [11][10]