Seaport Entertainment Group Inc.

Good morning and welcome to Seaport Entertainment Group's first quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow today's formal presentation. And as a reminder, today's call is being recorded. I would now like to turn the call over to Jason Wilk, Senior Vice President of Finance. Please go ahead.

Thank you, Operator. And good morning, everyone. With me today is our President and Chief Executive Officer, Matt Partridge, and our Chief Financial Officer and Treasurer, Lena Eliwot. Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the company's Form 10-K, Form 10-Q, and other SEC filings. You can find our SEC reports, earnings release, and quarterly supplemental information on our website at seaportentertainment.com. With that, I will turn the call over to Matt.

Thanks, Jason, and good morning, everyone. Let's start with the headline items from the first four months of 2026, some of which we discussed during our previous earnings call in March, but are still incredibly important accomplishments as we continue to position the organization as a scalable, real estate-centric hospitality and entertainment company. To start the year, we completed the sale of 250 Water Street, generating more than $75 million of liquidity and eliminating ongoing carry costs. We leased the tin building to Lux Entertainment, the operator of the interactive contemporary art experience Balloon Museum, transitioning the property to a leased and soon-to-be cash-flowing asset. We opened Sadie's Restaurant and Garden Bar, our self-developed new American restaurant, which has received very positive initial reviews and has exceeded our expectations. We announced our arts, culture, and hospitality-focused partnership with Public Service, the creative and curatorial team behind the highly acclaimed concept Public Records, to develop a new offering for the Seaport. We've developed a comprehensive calendar of seasonal, sporting, cultural, and evergreen programming, which serves as the foundation for guest engagement and increased visitation. And during the first quarter, we generated a 21% year-over-year improvement in our non-GAAP adjusted net loss, which adjusts our GAAP net loss for certain non-cash and non-recurring items. These achievements represent significant progress towards improving liquidity and cash flow, stabilizing and optimizing operations, and creating sustainable long-term value for our shareholders, community, and other stakeholders. Said differently, this is the turning point, and as a result of our progress, we believe we are on a path to drive positive long-term operational cash flow and earnings growth. That said, we are still early in building what Seaport Entertainment Group can become. The broader opportunity for strategic positioning of our company is centered on real estate assets with market specifics, multi-revenue ecosystems that drive outsized demand to the destinations through integrated experiences and curated placemaking. Consumer wallet shares being structurally reallocated towards time, social connections, and place-based spending. As screens get louder, digital content gets more crowded, and AI makes it harder to know what is real, we believe people will place even greater value on memorable in-person experiences they can feel and share with others. People want human connection, and that is where we are right now. By creating places, events, and activations that bring people together, we are giving them a reason to come back and building lasting value. This should ultimately result in more tenant and concept success, leading to long-term growth in rents and operational cash flow, and in turn, improving overall real estate and organizational value. We know there is still a considerable amount of work to be done, and it's not going to happen overnight. The disciplined execution and a common focus is what will carry our progress forward as we create a financially viable community-driven destination that are grounded in live entertainment, food and beverage, arts and culture, and event-based experiences. At the Seaport in New York, many of our recent announcements will be supported by the long-term growth we are seeing in our nearby residential population and the momentum in New York City tourism. Lower Manhattan is home to more than 70,000 residents, continues to be one of the fastest-growing residential districts in New York City, and it's set to benefit from nearly 9,000 new units in the pipeline, driven by ongoing office conversions and ground-up development projects. From a tourism perspective, in spite of policy actions and geopolitical events that have created headwinds for growth and visitation, New York City's 2026 visitation is expected to grow by more than 1 million visitors as it benefits from several large events, including the FIFA World Cup and America's 250th anniversary. We plan to leverage both events through a growing programming calendar tied to these unique experiences. Taken all together, these market dynamics reinforce our confidence in the underlying demand trends that support the seaport. While some of this demand will be transient due to the one-time nature of the associated events, the addition of year-round experience-led anchors like the Balloon Museum opening later this summer and Meow Wolf opening late 2027 or early 2028, will drive consistent visitation even during seasonally slower periods, as well as longer time spent in the neighborhood and increased spending in adjacent businesses. One of our businesses expected to benefit the most from the improved demand trends in our active programming calendar is the recently opened Sadie's Restaurant and Garden Bar. As I mentioned earlier, Sadie's is our first self-developed restaurant concept, which offers an approachable new American menu, including familiar favorites and daily brunch. With it, we opened Sadie's Garden Bar, one of the largest outdoor bars in Manhattan that can accommodate up to 1,000 guests. One of Sadie's differentiators is the scale and flexibility of its space, which is being combined with our robust programming calendar to drive consistent traffic and events to the neighborhood. In April, Sadie's Garden Bar hosted part of the neighborhood-wide New York Jets Draft Night Fan Fest, bringing thousands of visitors to the seaport. It also played host to our Kentucky Derby event in early May, resulting in strong attendance, guest engagement, and food and beverage sales. Opening a new restaurant is no small accomplishment, and one on this scale is even more impressive. I couldn't be more proud of the Sadie's team for what they've achieved in such a short period of time. As we look ahead to the summer, we envision Sadie's as the central hub of activity on the historic cobblestones. With its outdoor video wall, we expect to continue our momentum with sporting event watch parties, live music, and other cultural programming, including serving as a key destination for viewing the World Cup. In addition to Sadie's, we recently announced our long-term agreement with Public Service, the team behind Public Records, to open their first experience in Manhattan in approximately 11,000 square feet of previously vacant space in the cobblestone. For those who are not familiar, Public Records is an experience-driven hospitality and music concept located in Brooklyn that blends food and beverage, live music performances, and art with thoughtfully designed spaces and creating a single cohesive destination. The public service team is an incredible group of tastemakers with a strong track record of generating consistent demand through a continuously evolving platform that has helped define culture in New York City. While this new project is expected to open in 2027 and more details will be announced in the coming months, it reflects the continued demand we're seeing for experience-driven destinations and reinforces the seaport's unique position as a home for these concepts. Speaking of experience-driven concepts, we kicked off the 2026 concert series at the rooftop at Pier 17 on May 2nd with a sold-out show from Mika. This year's lineup is our largest ever with nearly 70 confirmed shows, roughly half of which are already on sale and seeing strong demand. Some of the more notable acts include Belle and Sebastian, Billy Currington and Kit Moore, Jimmy World, Lupe Fiasco, Passion Pit, and Sam Barber. We are also welcoming back many returning artists this season, which speaks to the exceptional experience our team continues to deliver for both fans and artists. Alongside the expanded lineup, we are continuing to improve the premium experience, growing offerings like the Liberty Club, Heineken Silver Zone, and Patron Patio, while introducing new social engagement tools designed to enhance the guest experience, expand venue visibility, and increase guest spending. Beyond concerts, our events pipeline continues to grow due to our demonstrated ability to curate, produce, and host large-scale activations such as the New York City Wine and Food Festival and Macy's 4th of July Fireworks. In addition to the return of many of these marquee events, we have a strong pipeline of several high-profile one-off activations being hosted in the Seaport, with a recent standout being Spotify's BTS Swimside fan experience on the rooftop at Pier 17 in March. The 2,000-person event marked the group's first U.S. performance in four years and is a powerful example of our ability to attract high-impact experiences from culturally relevant brands. Moreover, it was recently announced that the Rooftop will host U.S. Soccer's first-ever live U.S. men's national team World Cup roster reveal and fan celebration later this month. While we have a tremendous amount of momentum in our programming calendar, we continue to make progress on our expanded event space at Pier 17. This remains a priority due to its ability to generate high margin revenue and increase our operational scale, especially given it is a fully enclosed indoor facility with unique market positioning and amenities. We're refining the scope and timing, but we currently expect to have the space operational by mid-2027. On the concept and tenant build-out side of things, execution remains a top priority, and we are making great progress across several material projects. Pier 17, we recently achieved an important milestone with the delivery of the landlord-required work for Meow Wolf. Meow Wolf will now take the handoff and push forward with their build-out for a late 2027 or early 2028 opening. Work is also ongoing for Flanker Kitchen and Sports Bar and Hidden Boots Saloon, with Flanker expected to open in late 2026 and Hidden Boots Saloon targeting an opening date in early 2027. The 10 building, the Landlord Work for the Blue Museum's flagship U.S. location, is progressing on schedule, with delivery to the tenant expected in late June. Current projections have the museum opening this summer. Notably, the exhibition will feature a major installation by Marina Abramovich, the renowned contemporary artist who has exhibited across some of the world's most esteemed museums and cultural institutions. Her installation, combined with other notable artists and the museum's interactive curation, will deliver an experience that we believe will be on par with some of the most in-demand cultural experiences in New York City. Against that backdrop and all of the progress we've highlighted, we're encouraged by how our vision for the seaport is coming together. In Las Vegas, our focus remains on delivering a high-quality guest experience at the Las Vegas Ballpark while continuing to refine our operating model to drive greater efficiency and profitability. A key part of that strategy is leaning into our position as a true local offering, which is differentiated from the major league sports franchises on the Strip. The Las Vegas Aviators provide a more approachable, family-friendly, and community-oriented experience. This is supported by consistent programming and fan-friendly promotions that drive repeat visitation at an accessible price point. That positioning is being bolstered by continued growth in the Summerlin community and the surrounding area. Today, Summerlin is home to more than 125,000 residents with a long-term plan to reach approximately 200,000 at full build-out, creating a growing and highly engaged customer base near the ballpark. We remain focused on ticket pacing and pricing, expanding programming through theme nights, in-game experiences, and non-baseball activations, leaning into our robust merchandising strategy and driving operational efficiencies. As we enter our second year operating our Holiday Activation Enchant, we expect improved execution and stronger margins as we build on last year's learnings. Looking at the 2026 Las Vegas Aviators season, we're seeing encouraging early results. Coming off of our 2025 Pacific Coast League Championship, the Aviators are once again sitting in first place in the PCL, and I'm proud to say our Las Vegas ballpark will once again host the AAA Minor League Championship game this fall for the fifth year in a row. In March, we hosted two sold-out games between the Athletics and the Los Angeles Angels, welcoming more than 20,000 attendees and driving year-over-year growth in ticket revenue. We're seeing that demand continue across both group and season ticket sales for the Aviators, supported by a full calendar of themed promotions and fan-focused programming, with solid pacing for individual ticket sales for many of the upcoming games. This strong start reflects the consistent demand in the market and aligns with our position as one of the top-performing teams in minor league baseball. To wrap it up, we've had a very productive first quarter, and we're entering the rest of the year from the strongest position since our inception. We are very excited about the momentum we are building, which will carry into 2027 and ultimately stabilize our existing assets in 2028. I want to recognize our entire team for their hard work and commitment. Our results and continuing improvement are a product of their energy and dedication, and they should be incredibly proud of what they've accomplished. With that, I'll turn it over to Lena to talk through our first quarter financial performance in detail.