Group 1: Company Overview - Seaport Entertainment Group Inc. (NYSE:SEG) is recognized as one of the best stocks to buy according to billionaire Bill Ackman, representing 0.64% of his total portfolio [1] - The company owns, operates, and develops assets, hospitality venues, and sponsorship-driven entertainment properties, establishing itself as an integrated experience real estate and leisure operator [6] Group 2: Institutional Investment - Bill Ackman's hedge fund retains a significant stake in Seaport Entertainment Group Inc., accounting for approximately 40% of the stock's total institutional investment, making him the largest institutional shareholder [2] - As of the end of Q4 2025, Ackman's holdings of over 5.02 million shares through Pershing Square Capital Management remain unchanged, totaling more than $99 million [3] Group 3: Market Performance - The stock has recorded a year-to-date (YTD) gain of over 15% as of March 5, 2026, outperforming its peers, while the Real Estate Services industry has seen a decline of over 16% in the same period [3] - Interest from other hedge funds has increased, with the number of funds bullish on Seaport rising from 8 to 12, despite a decrease in the total value of their stakes from approximately $150.87 million to $135.42 million [4] Group 4: Future Developments - Seaport Entertainment Group Inc. plans to open the internationally renowned Balloon Museum at the Seaport in summer 2026, aiming to enhance foot traffic and diversify revenue streams through immersive attractions [5]

Financial Data and Key Metrics Changes - The net loss attributable to common stockholders for Q4 2025 was $36.9 million, representing an 11% year-over-year improvement, while the full year net loss was $116.7 million, showing a 24% improvement [22] - Non-GAAP adjusted net loss for Q4 2025 was $17.5 million, a 9% improvement year-over-year, and for the full year, it was $54.1 million, reflecting a 49% improvement [22] - Total consolidated revenues for Q4 2025 were $29.5 million, a 7% year-over-year increase, while for the full year, revenues were $130.4 million, essentially flat compared to the previous year [23] Business Line Data and Key Metrics Changes - Hospitality segment revenues declined by 23% in Q4 2025 on a pro forma basis, primarily due to lower performance at the Tin Building [24] - Entertainment segment revenues increased by 68% year-over-year in Q4 2025, driven by the internalization of Enchant operations in Las Vegas [28] - Landlord segment rental revenue increased by 14% year-over-year in Q4 2025, mainly from private events rental revenue [30] Market Data and Key Metrics Changes - The Seaport neighborhood was approximately 90% leased or programmed as of December 31, 2025, leaving roughly 47,000 sq ft of vacancy [16] - The company anticipates additional stabilized EBITDA of more than $30 million from over 220,000 sq ft leased or programmed since becoming a standalone public company [16] Company Strategy and Development Direction - The company aims to position itself as a scalable, real estate-centric hospitality and entertainment company, focusing on improving existing assets and exploring new opportunities [3] - The Balloon Museum and Meow Wolf are expected to complement each other, enhancing the overall visitor experience at the Seaport [67] - The company plans to expand the Pier 17 event space from 17,500 sq ft to over 40,000 sq ft, targeting premium corporate and social events [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress and the potential for long-term financial stability following the sale of 250 Water Street, which eliminated $7 million of annual cash burn [6][9] - The company is optimistic about the upcoming events and programming, including the FIFA World Cup and America's 250-year anniversary, which are expected to drive visitation [52] Other Important Information - The company has a cash balance of over $87 million, which would increase to $163 million pro forma after the sale of 250 Water Street, providing liquidity for future investments [39][40] - The company is exploring the sale of its 21-unit apartment building at 85 South Street, which is nearly fully leased and cash flowing [70] Q&A Session Summary Question: How much of the $163 million cash is committed to current projects? - The company expects to spend around $70 million-$90 million to stabilize current projects, having spent about $30 million in 2025 [43] Question: What are the criteria for the buyback program? - The buyback program will be executed opportunistically, with no specific parameters or timing provided [62][63] Question: How does the Balloon Museum complement the Meow Wolf experience? - Both experiences are seen as complementary, enhancing the overall visitor experience and encouraging longer stays at the Seaport [67] Question: What is the status of the apartment building at 85 South Street? - The building is nearly 100% leased and cash flowing, with significant interest in the marketing process [70]

Financial Data and Key Metrics Changes - The net loss attributable to common stockholders for Q4 2025 was $36.9 million, representing an 11% year-over-year improvement, while the full year net loss was $116.7 million, reflecting a 24% improvement [22] - Non-GAAP adjusted net loss for Q4 2025 was $17.5 million, a 9% improvement year-over-year, and for the full year, it was $54.1 million, showing a 49% improvement [22] - Total consolidated revenues for Q4 2025 were $29.5 million, a 7% year-over-year increase, while full year revenues were $130.4 million, essentially flat compared to the previous year [23] Business Line Data and Key Metrics Changes - Hospitality segment revenues declined by 23% in Q4 2025 on a pro forma basis, primarily due to lower performance at the Tin Building [24] - Entertainment segment revenues increased by 68% year-over-year in Q4 2025, driven by the internalization of Enchant operations in Las Vegas [28] - Landlord segment rental revenue increased by 14% year-over-year in Q4 2025, mainly from private events rental revenue [30] Market Data and Key Metrics Changes - The Seaport neighborhood was approximately 90% leased or programmed as of December 31, 2025, leaving roughly 47,000 sq ft of vacancy [16] - The company has leased or programmed more than 220,000 sq ft since becoming a standalone public company, which is expected to result in additional stabilized EBITDA of over $30 million [16] Company Strategy and Development Direction - The company aims to position itself as a scalable, real estate-centric hospitality and entertainment company, focusing on improving operations and expanding offerings [3] - The sale of 250 Water Street is expected to generate net proceeds of approximately $75 million, eliminating $7 million of annual cash burn related to interest expense [5][6] - The company plans to expand the Pier 17 event space from 17,500 sq ft to over 40,000 sq ft, targeting premium corporate and social events [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress and the potential for long-term financial stability, particularly with the new Balloon Museum and other attractions [9][40] - The company anticipates continued margin improvement in 2026 across its operations, particularly in Las Vegas, as it applies learnings from previous experiences [18] Other Important Information - The company has received board approval for a $150 million shelf registration statement and a $50 million stock repurchase program, providing flexibility for future capital allocation [18] - Capital expenditures in Q4 2025 totaled $2.8 million, with full year expenditures at $30.8 million, primarily related to various development projects [38] Q&A Session Summary Question: How much of the $163 million cash is committed to current projects? - The company expects to spend around $70 million-$90 million to stabilize current projects, having spent about $30 million in 2025 [43] Question: What are the criteria for the buyback program? - The buyback program will be executed opportunistically, with no specific parameters or timing publicly disclosed [62][63] Question: How does the Balloon Museum complement the Meow Wolf experience? - Both attractions are seen as complementary, providing a full day of activities for visitors and enhancing the overall appeal of the Seaport [67][68] Question: What is the status of the apartment building at 85 South Street? - The building is nearly fully leased and cash flowing, with significant interest in the marketing process for potential monetization [70] Question: How does the company view the Las Vegas properties compared to New York? - The Las Vegas ballpark is considered a valuable asset, with opportunities for improved profitability through better cost controls and creative ticketing strategies [74]

Financial Data and Key Metrics Changes - The net loss attributable to common stockholders for Q4 2025 was $36.9 million, representing an 11% year-over-year improvement, while the full year net loss was $116.7 million, reflecting a 24% improvement [23] - Non-GAAP adjusted net loss for Q4 2025 was $17.5 million, a 9% improvement year-over-year, and for the full year, it was $54.1 million, showing a 49% improvement [23] - Total consolidated revenues for Q4 2025 were $29.5 million, a 7% year-over-year increase, while full year revenues were $130.4 million, essentially flat compared to the previous year [24] Business Line Data and Key Metrics Changes - Hospitality segment revenues declined by 23% in Q4 2025 on a pro forma basis, primarily due to lower performance at the Tin Building [25] - Entertainment segment revenues increased by 68% year-over-year in Q4 2025, driven by the internalization of Enchant operations in Las Vegas [29] - Landlord segment rental revenue increased by 14% year-over-year in Q4 2025, mainly from private events rental revenue [31] Market Data and Key Metrics Changes - The Seaport neighborhood was approximately 90% leased or programmed as of December 31, 2025, leaving roughly 47,000 sq ft of vacancy [17] - The company anticipates that leasing or programming more than 220,000 sq ft since becoming a standalone public company will result in additional stabilized EBITDA of over $30 million [17] Company Strategy and Development Direction - The company aims to position itself as a scalable, real estate-centric hospitality and entertainment company, focusing on improving operations and expanding offerings [3] - The sale of 250 Water Street is expected to eliminate $7 million of annual cash burn and provide additional capital for strategic priorities [6] - The company plans to expand the Pier 17 event space from 17,500 sq ft to over 40,000 sq ft, targeting large-scale meetings and events [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress and the potential for long-term financial stability, highlighting the positive momentum from 2025 into 2026 [20] - The company is focused on improving its cost structure and operational efficiency, with expectations for continued margin improvement in 2026 [19] Other Important Information - The company has a strong cash position of over $87 million, which would increase to $163 million pro forma after the sale of 250 Water Street, providing liquidity for future investments [41][42] - The company is exploring the sale of its 21-unit apartment building at 85 South Street, which is nearly fully leased and cash flowing [70] Q&A Session Summary Question: How much of the $163 million cash is committed to current projects? - The company expects to spend around $70 million-$90 million to stabilize existing projects, targeting a total of $100 million-$125 million for stabilization [45] Question: What are the criteria for the buyback program? - The buyback program will be executed opportunistically, with no specific parameters or timing publicly disclosed [62][64] Question: How does the Balloon Museum complement the Meow Wolf experience? - Both experiences are seen as complementary, providing a full day opportunity for visitors at the Seaport [67] Question: What is the status of the apartment building at 85 South Street? - The building is nearly 100% leased and cash flowing, with significant interest in the marketing process [68] Question: How do the Las Vegas properties fit into the company's overall strategy? - The Las Vegas ballpark is positioned well within a growing community, and the company sees opportunities to enhance profitability through better cost controls and creative ticketing strategies [72]

Core Viewpoint - Seaport Entertainment Group Inc. and Lux Entertainment are set to open the Balloon Museum, a contemporary art venue, at the Tin Building in Summer 2026, enhancing the cultural offerings in the Seaport neighborhood [1] Company Summary - Seaport Entertainment Group Inc. (NYSE: SEG) is collaborating with Lux Entertainment to launch the Balloon Museum, which is recognized for its contemporary art format [1] - The Balloon Museum will serve as the U.S. flagship location, aiming to attract a diverse audience and enrich the local cultural landscape [1] Industry Summary - The opening of the Balloon Museum is expected to create a community-oriented, experiential art destination, appealing to visitors of all ages and contributing to the cultural vibrancy of the Seaport area [1]