Group 1 - Seaport Entertainment Group (SEG) is a spinoff from Howard Hughes Holdings (HHH) and consists of a collection of non-core assets [1] - The analysis of SEG was conducted shortly after its public market debut in August [1]

Financial Performance - Net loss attributable to common stockholders decreased by $703.7 million, or 96%, to $32.5 million for the three months ended September 30, 2024, compared to $736.2 million in the prior-year period[205]. - Total revenue for the three months ended September 30, 2024, was $39.7 million, a decrease of $789, or 2%, from $40.5 million in the same period of 2023[202]. - General and administrative costs increased by $11.1 million, or 154%, to $18.3 million for the three months ended September 30, 2024, compared to $7.2 million in the prior-year period[208]. - Total expenses for the three months ended September 30, 2024, were $64.5 million, an increase of $7.6 million, or 13%, from $56.9 million in the same period of 2023[202]. - Hospitality revenue decreased by $1.9 million, or 17%, to $8.8 million for the three months ended September 30, 2024, compared to $10.7 million in the prior-year period[202]. - Sponsorships, events, and entertainment revenue increased by $221, or 1%, to $24.7 million for the three months ended September 30, 2024, compared to $24.5 million in the prior-year period[202]. - Total revenue for the nine months ended September 30, 2024, decreased by $4.5 million, or 5%, to $88.3 million compared to $92.8 million in the prior-year period[214]. - Sponsorships, events, and entertainment revenue declined by $3.1 million, or 6%, while hospitality revenue decreased by $3.9 million, or 15%[214]. Operational Highlights - The Company completed its spin-off from HHH on July 31, 2024, with HHH contributing $23.4 million in capital to support operations[184][185]. - The Company operates in three segments: Landlord Operations, Hospitality, and Sponsorships, Events, and Entertainment, focusing on strategic acquisitions and partnerships for growth[178]. - The Company aims to leverage the growing consumer appetite for unique restaurant experiences to expand its culinary footprint[182]. - Seasonality significantly impacts operations, with increased revenue during warmer months and potential revenue losses due to weather-related disruptions[192][193]. - The weighted average remaining term of leases for retail, office, and other properties is approximately seven years, excluding renewal options[194]. - The Company recognizes all economic interest in the Tin Building by Jean-Georges joint venture, impacting overall results of operations[190]. - The Aviators, a Triple-A Minor League Baseball team, play at the Las Vegas Ballpark, which has a capacity of 10,000, contributing to the Company's entertainment segment[183]. - The Company is exploring opportunities for year-round entertainment at the Rooftop at Pier 17, which hosts a popular Summer Concert Series[183]. Cash Flow and Financing - As of September 30, 2024, the company's cash and cash equivalents were $23.7 million, compared to $1.8 million as of December 31, 2023[251]. - Cash used in operating activities increased by $19.8 million to $48.0 million for the nine months ended September 30, 2024, compared to $28.2 million in the prior-year period[258]. - Cash used in investing activities rose by $3.6 million to $82.2 million for the nine months ended September 30, 2024, compared to $78.6 million in the prior-year period[260]. - Cash provided by financing activities increased by $22.8 million to $114.1 million for the nine months ended September 30, 2024, compared to $91.3 million in the prior-year period[261]. - The company commenced a $175 million Rights Offering in September 2024, issuing 7.0 million shares at a subscription price of $25.00 per share, resulting in total gross proceeds of $175.0 million[256]. - The company expects the additional liquidity from the Rights Offering to be sufficient to fund operations until cash generation from operating activities begins[259]. - The variable rate mortgage related to 250 Water Street was refinanced on July 31, 2024, with HHH paying down $53.7 million of the outstanding principal balance[252]. - The company’s ability to fund operations and development projects will depend on future cash flow management and access to debt or equity financing on acceptable terms[253]. Cost Management - General and administrative costs increased by $33.8 million, or 171%, to $53.5 million, primarily due to a $23.8 million rise in separation costs[217]. - Depreciation and amortization expense decreased by $18.9 million, or 47%, to $21.1 million, attributed to prior impairment recognized on buildings and equipment[218]. - Interest expense, net rose by $7.1 million, or 381%, to $8.9 million, mainly due to a decrease in amounts capitalized to development assets[219]. - Hospitality costs decreased by $0.1 million, or 1%, to $8.4 million for the three months ended September 30, 2024, compared to $8.5 million in the prior-year period[233]. Legal and Compliance - As of September 30, 2024, the company believes there were no pending lawsuits or claims that could have a material adverse effect on its business or financial condition[284]. - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control[283].

Financial Performance - Seaport Entertainment Group reported a net loss of $32.5 million, or $5.89 per share, for Q3 2024, a significant improvement from a net loss of $736.2 million, or $133.31 per share, in Q3 2023[3]. - Total revenues for Q3 2024 were $39.7 million, slightly down from $40.5 million in the same quarter last year, representing a decrease of 1.9%[3]. - Year-to-date revenues for the nine months ended September 30, 2024, totaled $88.3 million, down 4.8% from $92.8 million in the same period of 2023[8]. - The net loss for the nine months ended September 30, 2024, was $111.3 million, a reduction of 86.1% compared to a net loss of $802.1 million in the prior year[8]. - Operating loss for the three months ended September 30, 2024, was $(20,000,000), significantly improved from a loss of $(688,895,000) in the same quarter of 2023[19]. - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(32,511,000), compared to $(736,154,000) in 2023[19]. - Basic earnings per share for the three months ended September 30, 2024, was $(5.89), an improvement from $(133.31) in the same period of 2023[19]. Revenue Breakdown - Sponsorships, events, and entertainment revenue increased slightly to $24,703,000 from $24,482,000, while hospitality revenue decreased to $8,817,000 from $10,677,000[19]. - Total revenues for the three months ended September 30, 2024, were $39,697,000, a decrease of 1.95% from $40,486,000 in the same period of 2023[19]. Expenses and Costs - Total expenses rose to $64,495,000 for the three months ended September 30, 2024, compared to $56,912,000 in 2023, marking an increase of 13.5%[19]. - General and administrative expenses surged to $18,319,000 in Q3 2024, up from $7,220,000 in Q3 2023, reflecting a 153% increase[19]. - Depreciation and amortization expenses decreased to $7,694,000 in Q3 2024 from $13,636,000 in Q3 2023, a reduction of 43.5%[19]. - Interest expense for the three months ended September 30, 2024, was $(3,133,000), compared to $(592,000) in the same period of 2023, indicating an increase in interest costs[19]. Cash and Debt Position - As of September 30, 2024, the company had $27.8 million in cash and cash equivalents, with an additional $5.0 million available under its revolving credit facility[9]. - The company has $103.4 million in consolidated debt with a weighted-average interest rate of 8.0%, and 41% of this debt is fixed at a weighted-average interest rate of 4.9%[9]. Strategic Initiatives - The company completed a rights offering on October 17, 2024, issuing 7,000,000 shares at $25.00 per share, generating net proceeds of approximately $166.7 million[4]. - Seaport Entertainment Group extended its programming agreement with Live Nation for The Rooftop at Pier 17 for five years, effective January 1, 2025[5]. - The company plans to launch year-round concert and event programming at The Rooftop at Pier 17 starting in fall/winter 2025[5]. - The company is focusing on long-term value creation through strategic partnerships and enhancing operational efficiencies to strengthen cash flow[6].