Seaport Entertainment Turns the Corner: Positive EBITDA, G&A Discipline, and a Summer of World Cup Events
First positive operating EBITDA and adjusted net income in company history; management eyes 2028 stabilization.
SEG · Earnings Call · 2026-08-06
A Milestone Quarter
Seaport Entertainment Group delivered its first positive operating EBITDA and positive non-GAAP adjusted net income in its two-year history. As CEO Matt Partridge put it: “we achieved positive operating EBITDA and positive non-GAAP adjusted net income for the first time in the company's history” — Matthew Partridge, President and Chief Executive Officer · 2026-08-06. With initial stabilization already visible, the stock has rallied 18.9% over the past 90 days, breaking above its prior resistance.Operational Momentum and Marquee Events
Leasing activity has accelerated after a busy spring. At spin, roughly 150,000 square feet were available to lease; today that stands below 50,000 square feet, or just over 10% of total space. New tenants such as the Balloon Museum and the upcoming event space at Pier 17 are expected to drive incremental foot traffic. This summer the Seaport has been a central stage for the FIFA World Cup, with the first-ever live U.S. Men's National Team roster reveal, a sold-out July 4th block party, and record-breaking watch parties during the Knicks' championship run. Las Vegas also contributed, with the Aviators clinching a playoff spot and the ballpark hosting a sold-out Athletics series and a sold-out Banana Ball series, driving record merchandise and food-and-beverage sales. Management noted that these non-Aviator events resulted in the highest-grossing 1-day food-and-beverage and merchandise sales in park history.Cost Discipline and a Strengthened Balance Sheet
The company has slashed trailing-twelve-month G&A by more than 20% over the past nine months, from $34 million to under $27 million. Effective SG&A peaked at $19 million in Q2 2024 and fell to $8 million in Q2 2026, a 58% reduction that underscores management's cost discipline. CFO Lenah Elaiwat noted that the quarter included an accelerated Nike lease termination payment, contributing $2.7 million to rental revenue, but the underlying improvement is broad-based. Capital expenditures continue to guide to $70–90 million over the next two years, with $50–70 million remaining, funding the Balloon Museum, Flanker Kitchen, Hidden Boot Saloon, and the Pier 17 event space. Competition for the remaining vacant space remains strong, with management aiming for unique, one-of-one concepts rather than chains.Looking to 2028
Management is guiding to further improvement in 2027 and 2028, with more than $20 million of incremental annualized operating EBITDA waiting to materialize as new concepts open.The event space, in particular, is a wildcard: “It's going to have a dedicated entrance on the ground floor of Pier 17 with dedicated elevator transportation up to both the second, third and fourth floor of the Pier.” — Matthew Partridge, President and Chief Executive Officer · 2026-08-06 As prior calls noted, the company has been focused on the existing asset base: “we are sort of at the front end of this. Obviously, we have been focused on the existing asset base.” — Matthew Morris Partridge, President and Chief Executive Officer · 2026-03-05 And on CapEx, management reaffirmed stability: “I think the $70 million to $90 million is still the number.” — Matthew Partridge, President and Chief Executive Officer · 2026-05-07 In response to a question on expectations, Matt said: “we've always said it was going to take 3-plus years to stabilize everything, and I think we're right on track with that for 2028 being that initial stabilization year.” — Matthew Partridge, President and Chief Executive Officer · 2026-08-06 With the 2028 stabilization target on track, Seaport Entertainment is beginning to look like less of a real estate bet and more of an experiential platform.That is more than $20 million of incremental annualized operating EBITDA that is yet to materialize in our numbers.