- SEG
+4.59% - NKE
-0.71%
Key Points
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Seaport Entertainment posted its first positive operating EBITDA and adjusted net income: Second-quarter operating EBITDA reached $4.5 million, up from a $1.1 million loss, while adjusted net income was $320,000 versus a $7.4 million loss a year earlier.
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The Nike lease termination boosted landlord results and allows earlier construction of a planned Pier 17 event venue. Seaport also expects more than $20 million in incremental annualized operating EBITDA from over 194,000 square feet of upcoming tenant openings.
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Cost reductions and a strong balance sheet support the outlook: G&A expense fell 20% year over year, while the company ended the quarter with $127 million in cash and restricted cash against $38.1 million of debt. Management expects continued year-over-year improvement, with broader earnings gains projected in 2027 and 2028.
Seaport Entertainment Gr (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.
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“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.
Nike Termination and Landlord Results
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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.
