Seaport Entertainment Gr Q2 Earnings Call Highlights

Seaport Entertainment 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.

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 bankr...