[Management View]
Seaport Entertainment's management emphasized the importance of filling approximately 100,000 square feet of remaining vacancy, with new tenants and phased openings expected in 2026 and beyond. Key levers for achieving breakeven and profitability include increased operating efficiency, G&A reduction, and leasing momentum. The sale of 250 Water Street is expected to improve cash flow significantly.

[Outlook]
Management plans to focus on traditional retail as small-shop space becomes available, with upcoming capital expenditures expected to ramp up in 2026. The full hospitality strategy, including a restructuring plan for the Tin Building, will be provided during the next earnings call.

[Financial Performance]
Total consolidated revenues were $45.1 million, a 1% year-over-year increase on a pro forma basis. Hospitality segment revenues declined 4% year-over-year, while same-store hospitality revenue increased 11%. Entertainment segment revenues decreased 5% year-over-year. Landlord segment rental revenue rose 56% year-over-year.

[Q&A Highlights]
Question 1: As we look to profitability, what are the biggest levers to drive that path forward?
Answer: The biggest levers include getting tenants open and operating, filling remaining vacancies, and focusing on operational model and G&A efficiencies. The goal is to achieve breakeven and then profitability.

Question 2: Could you talk about the demand and mix of tenants for your spaces?
Answer: Demand has been strong, especially for food and beverage operators. The focus is now shifting to traditional retail tenants. The aim is to find the right partners and experiences for the diverse community.

Question 3: What is the expected timing for tenant openings?
Answer: The velocity of openings is expected in the back half of the year, with some tenants opening before mid-year and others by late 2026 or early 2027.

Question 4: How do you position yourself to continue bringing special events to the district?
Answer: Special events help drive exposure and awareness. The strategy includes programming the rooftop and hosting events on the pier or cobblestone, leveraging partnerships to bring events over a multiyear period.

Question 5: Will the restructuring with Jean-Georges lead to breakeven in 2026?
Answer: The restructuring brought the employee base in-house, reducing management fees. A detailed plan for the Tin Building will be provided in the next earnings call.

Question 6: How is the leasing of 100,000 square feet of space progressing?
Answer: The largest chunk is the Nike space, available in 2027. The focus is on small shop spaces, with several opportunities in the pipeline expected to close by year-end.

Question 7: What are the expected capital expenditures for the fourth quarter?
Answer: Capital expenditures will be light in Q4, with a ramp-up expected in 2026, totaling about $50 million across announced projects.

[Sentiment Analysis]
The tone of the management was optimistic, focusing on strategic leasing and operational improvements. Analysts were inquisitive about profitability levers and tenant demand, reflecting a positive outlook on the company's growth trajectory.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 (Pro Forma) | YoY Change |
|--------------------------------|---------|---------------------|------------|
| Total Consolidated Revenues | $45.1M | $44.7M | +1% |
| Hospitality Revenue | -4% | | |
| Same-Store Hospitality Revenue | +11% | | |
| Entertainment Revenue | -5% | | |
| Landlord Rental Revenue | +56% | | |

[Risks and Concerns]
Risks include potential delays in tenant openings and the impact of broader market cycles on leasing and event-driven revenue. The restructuring of the Tin Building and its financial implications remain a concern until further details are provided.

[Final Takeaway]
Seaport Entertainment is focused on strategic leasing and operational efficiencies to drive profitability. The company is leveraging its strong demand for food and beverage spaces while shifting focus to traditional retail. Special events continue to play a crucial role in driving foot traffic and awareness. The upcoming sale of 250 Water Street is expected to significantly improve cash flow, supporting the company's growth initiatives.