Seaport Entertainment Group Inc.
For the period ended Sep 30, 2026. Filed Nov 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 4, 2026
SEG$20.79-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001104659-26-091217
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-04.
0001104659-26-122769
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 125 current paragraphs.
80 unchanged; 33 reworded; 11 added; 11 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
decrease of leadership transition costs, primarily related to severance costs, bonus accrual and stock compensation expense of an executive.
Current report
Interest Income (Expense). Interest income (expense) increased $0.5 million to $0.4 million for the three months ended September 30, 2026 compared to $0.1 million loss in the prior-year period primarily due to less interest incurred on the 250 Water Street mortgage which was paid in full in conjunction with the sale of the property during the first quarter of 2026, partially offset by reduced interest earned on lower invested cash balances and lower interest rates.
Current report
Other Income (Loss), net. Other loss, net decreased $1.7 million to $0.8 million loss for the three months ended September 30, 2026 compared to $2.5 million loss in the prior-year period. This change was primarily due to a $2.2 million loss on disposal of an asset and $0.1 of million restructuring costs incurred during the prior year period.
Current report
Comparison of the Nine Months Ended September 30, 2026 and 2025
Current report
Hospitality Operating EBITDA increased $4.7 million compared to the prior-year period primarily due to the following:
Current report
Hospitality Operating EBITDA increased $17.0 million compared to the prior-year period primarily due to the following:
Current report
Entertainment Operating EBITDA increased $0.5 million compared to the prior-year period primarily due to the following:
Current report
Entertainment costs decreased $3.0 million to $17.5 million for the three months ended September 30, 2026 compared to $20.5 million in the prior-year period. This change was primarily due to a decrease in operating costs at The Rooftop at Pier 17 due to less concerts and decreased operating costs at the Aviators due to less private events than the prior year and cost savings initiatives.
Current report
Entertainment Operating EBITDA decreased $0.5 million compared to the prior-year period primarily due to the following:
Current report
Entertainment revenue decreased $2.6 million to $44.3 million for the nine months ended September 30, 2026 compared to $46.9 million in the prior-year period primarily due to a decrease in revenue from The Rooftop at Pier 17 due to less concerts than prior year, and a decrease in revenues at the Aviators due to the extreme heat during the summer months and less special events held at the Las Vegas Ballpark.
Current report
Entertainment costs decreased $2.1 million to $40.9 million for the nine months ended September 30, 2026 compared to $43.0 million in the prior-year period. This change was primarily due to a decrease in operating costs at The Rooftop at Pier 17 due to less concerts and decreased operating costs at the Aviators due to less private events than the prior-year period.
Removed paragraphs (11)
Previous report
in labor costs, and a $0.4 million decrease in legal and consulting costs, partially offset by a $1.2 million increase in executive separation costs.
Previous report
Other Income (Loss), net. Other loss, net increased $0.6 million to $0.7 million loss for the three months ended June 30, 2026 compared to $0.1 million loss in the prior-year period. This change was primarily due to $0.2 million increase in restructuring costs primarily related to restaurant closures during the period, as well as $0.3 million increase in pre-opening costs related to new ventures during the period.
Previous report
Comparison of the Six Months Ended June 30, 2026 and 2025
Previous report
Hospitality Operating EBITDA increased $6.6 million compared to the prior-year period primarily due to the following:
Previous report
Hospitality Operating EBITDA increased $11.7 million compared to the prior-year period primarily due to the following:
Previous report
Entertainment Operating EBITDA decreased $1.1 million compared to the prior-year period primarily due to the following:
Previous report
Entertainment costs increased $0.8 million to $16.2 million for the three months ended June 30, 2026 compared to $15.4 million in the prior-year period. This change was primarily due to increased operating costs at The Rooftop at Pier 17, partially offset by decreased operating costs at the Aviators due to fewer games compared to the prior period.
Previous report
Entertainment Operating EBITDA decreased $1.0 million compared to the prior-year period primarily due to the following:
Previous report
Entertainment costs increased $1.0 million to $23.5 million for the six months ended June 30, 2026 compared to $22.5 million in the prior-year period. This change was primarily due to increased field replacement costs at the Aviators, as well as increased rooftop event operating costs.
Previous report
Other revenue decreased $0.1 million to $0.4 million for the three months ended June 30, 2026, compared to $0.5 million for the prior-year period as a result of a decrease in sponsorship revenues attributable to landlord operations.
Previous report
Other revenue decreased $0.1 million to $0.7 million for the six months ended June 30, 2026, compared to $0.8 million for the prior-year period as a result of a decrease in sponsorship revenues attributable to landlord operations.
Reworded paragraphs (33)
Previous wording
Entertainment includes the Las Vegas Aviators Triple-A Minor League Baseball team (the “Aviators”) and the Las Vegas Ballpark, our interest in and to the Fashion Show Mall Air Rights, events and concerts at The Rooftop at Pier 17, and sponsorship agreements related to these venues. The Aviators are a Triple-A affiliate of the Athletics Major League Baseball team and play at the Las Vegas Ballpark, a 10,000-person capacity ballpark located in Downtown Summerlin. The Rooftop at Pier 17 is one of the premier concert venues in New York City that hosts a popular Seaport Concert Series featuring emerging and established musicians alike. We see The Rooftop at Pier 17 as an opportunity to continue to drive events and entertainment growth as we believe that the demand for live music and private events is strong and accelerating.
Current wording
Entertainment includes the Las Vegas Aviators Triple-A Minor League Baseball team (the “Aviators”) and the Las Vegas Ballpark, our interest in and to the Fashion Show Mall Air Rights, events and concerts at The Rooftop at Pier 17, and sponsorship agreements related to these venues. The Aviators are a Triple-A affiliate of the Athletics Major League Baseball team and play at the Las Vegas Ballpark, a 10,000-person capacity ballpark located in Downtown Summerlin. The Rooftop at Pier 17 is one of the premier concert venues in New York City that hosts a popular Summer Concert Series featuring emerging and established musicians alike. We see The Rooftop at Pier 17 as an opportunity to continue to drive events and entertainment growth as we believe that the demand for live music and private events is strong and accelerating.
Previous wording
The Company owns 100% of the Tin Building which was completed and placed in service in our Landlord Operations segment during the third quarter of 2022. As of and through February 2026, the Company leased 100% of the rentable space in the Tin Building to the Tin Building by Jean-Georges, a Hospitality segment business. The rental revenue and hospitality costs associated with the lease payments are eliminated in the Consolidated Statements of Operations for the three and six months ended June 30, 2025 and for the six months ended June 30, 2026.
Current wording
The Company owns 100% of the Tin Building which was completed and placed in service in our Landlord Operations segment during the third quarter of 2022. As of and through February 2026, the Company leased 100% of the rentable space in the Tin Building to the Tin Building by Jean-Georges, a Hospitality segment business. The rental revenue and hospitality costs associated with the lease payments are eliminated in the Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and for the nine months ended September 30, 2026.
Previous wording
In February 2026, the Company entered into a lease of 100% of the Tin Building with contemporary art experience creator, Lux Entertainment, to open their U.S. flagship location of the Balloon Museum. In connection with the Balloon Museum lease and the commencement of the Company’s landlord obligations, the Tin Building by Jean-Georges ceased operations in February 2026.
Current wording
In February 2026, the Company entered into a lease of 100% of the Tin Building with contemporary art experience creator, Lux Entertainment, which opened their first permanent U.S. location of the Balloon Museum at the Tin Building in August 2026. In connection with the Balloon Museum lease and the commencement of the Company’s landlord obligations, the Tin Building by Jean-Georges ceased operations in February 2026.
Previous wording
As of June 30, 2026 and December 31, 2025, the weighted average remaining term of our retail, office, and other properties leases where we are the lessor was approximately eight years, excluding renewal options. The stability of the rental revenue generated by our properties depends principally on our tenants’ ability to pay rent and our ability to collect rents, renew expiring leases, re-lease space upon the expiration or other termination of leases, lease currently vacant properties, and maintain or increase rental rates at our leased properties. To the extent our properties become vacant, we would forego rental income while remaining responsible for the payment of property taxes and maintaining the property until it is re-leased, which could negatively impact our operating results. As of June 30, 2026, our real estate assets at the Seaport were 89% leased or programmed.
Current wording
As of September 30, 2026 and December 31, 2025, the weighted average remaining term of our retail, office, and other properties leases where we are the lessor was approximately eight years, excluding renewal options. The stability of the rental revenue generated by our properties depends principally on our tenants’ ability to pay rent and our ability to collect rents, renew expiring leases, re-lease space upon the expiration or other termination of leases, lease currently vacant properties, and maintain or increase rental rates at our leased properties. To the extent our properties become vacant, we would forego rental income while remaining responsible for the payment of property taxes and maintaining the property until it is re-leased, which could negatively impact our operating results. As of September 30, 2026, our real estate assets at the Seaport were 90% leased or programmed.
Previous wording
Net loss attributable to common stockholders decreased $4.3 million, or 29%, to $10.5 million for the three months ended June 30, 2026, compared to $14.8 million in the prior-year period, primarily due to a $11.0 million decrease in hospitality costs, a $2.8 million increase in rental revenue, a $1.7 million decrease of general and administrative expense, and a $0.8 million decrease in operating costs, partially offset by a $8.2 million decrease to hospitality revenue, a $0.8 million increase in entertainment costs, a $0.5 million increase in other income (loss), net, and a $0.5 million decrease in equity in earnings (losses) from unconsolidated ventures.
Current wording
Net loss attributable to common stockholders decreased $24.8 million, or 75%, to $8.4 million for the three months ended September 30, 2026, compared to $33.2 million in the prior-year period, primarily due to a $12.0 million decrease in hospitality costs, a $11.7 million decrease of general and administrative expense, a $2.9 million decrease in entertainment costs, and a $5.7 million increase in gain on the sale of assets, partially offset by a $8.7 million decrease to hospitality revenue, a $2.4 million decrease in entertainment revenue, and a $1.3 million decrease in rental revenue.
Previous wording
General and Administrative. General and administrative costs decreased $1.7 million to $6.6 million for the three months ended June 30, 2026, compared to $8.3 million in the prior-year period, primarily due to a $2.0 million decrease
Current wording
General and Administrative. General and administrative costs decreased $11.7 million to $6.2 million for the three months ended September 30, 2026, compared to $17.9 million in the prior-year period, primarily due to a $11.5 million
Previous wording
Depreciation and Amortization. Depreciation and amortization increased $0.2 million to $6.8 million for the three months ended June 30, 2026, compared to $6.6 million in the prior-year period, primarily due to $1.5 million of disposal of assets due to the tenant closures discussed below; partially offset by a $1.2 million decrease resulting from a lower depreciable asset basis.
Current wording
Depreciation and Amortization. Depreciation and amortization decreased $2.6 million to $4.3 million for the three months ended September 30, 2026, compared to $6.9 million in the prior-year period, primarily due to a net $1.7 million of disposal of assets resulting from the closure of the Tin Building and a $0.8 million decrease resulting from a lower depreciable asset basis.
Previous wording
*Equity in Earnings (Losses) from Unconsolidated Ventures.*Equity in earnings (losses) from unconsolidated ventures decreased $0.5 million to earnings of $0.3 million for the three months ended June 30, 2026, compared to earnings of $0.8 million in the prior-year period. This change was primarily due to a $0.3 million decrease in income for the Lawn Club and $0.2 million decrease in income from JG.
Current wording
*Equity in Earnings (Losses) from Unconsolidated Ventures.*Equity in earnings (losses) from unconsolidated ventures decreased $0.4 million to earnings of $0.8 million for the three months ended September 30, 2026, compared to earnings of $1.2 million in the prior-year period. This change was primarily due to a $0.5 million decrease in income for the Lawn Club and $0.1 million decrease in loss from JG.
Previous wording
Net loss attributable to common stockholders increased $7.9 million, or 17%, to $54.6 million for the six months ended June 30, 2026, compared to $46.7 million in the prior-year period, primarily due to a $12.3 million increase in depreciation and amortization, a $10.8 million decrease in hospitality revenue, a $1.0 million increase in entertainment costs, a $2.8 million increase to other (loss), net, a $1.4 million increase to loss on assets held for sale, a $1.4 million decrease in interest income, and a $1.6 million decrease in equity earnings (losses), partially offset by a $16.5 million decrease in hospitality costs, a $1.9 million decrease in operating costs, a $3.4 million decrease in general and administrative expense, and a $1.8 million increase to rental revenue.
Current wording
Net loss attributable to common stockholders decreased $16.9 million, or 21%, to $62.9 million for the nine months ended September 30, 2026, compared to $79.8 million in the prior-year period, primarily due to a $28.5 million decrease in hospitality costs, a $15.1 million decrease in general and administrative costs, a $4.3 million increase in gain (loss) on the sale of assets, a $2.2 million decrease in operating costs, and a $2.0 million decrease in entertainment costs, partially offset by a $19.5 million decrease in hospitality revenue, a $2.4 million decrease in entertainment revenue, and a $2.0 million decrease in equity earnings (losses).
Previous wording
General and Administrative. General and administrative costs decreased $3.4 million to $14.7 million for the six months ended June 30, 2026, compared to $18.1 million in the prior-year period, primarily due to a $3.8 million decrease in labor costs, and a $1.1 million decrease in legal and consulting costs, partially offset by a $2.6 million increase in severance costs.
Current wording
General and Administrative. General and administrative costs decreased $15.1 million to $20.9 million for the nine months ended September 30, 2026, compared to $36.0 million in the prior-year period, primarily due to a $11.5 million decrease of leadership transition costs, a $4.3 million decrease in labor costs, and a $1.5 million decrease in legal and consulting costs in the prior year, partially offset by a $2.6 million increase in leadership transition and severance costs in the current year.
Previous wording
Depreciation and Amortization. Depreciation and amortization increased $12.2 million to $26.9 million for the six months ended June 30, 2026, compared to $14.7 million in the prior-year period, primarily due to disposal of assets at several tenants and accelerated depreciation on assets with updated estimated useful lives resulting from the closure of the Tin Building by Jean-Georges in February 2026, partially offset by a decrease resulting from a lower depreciable asset basis.
Current wording
Depreciation and Amortization. Depreciation and amortization increased $9.7 million to $31.3 million for the nine months ended September 30, 2026, compared to $21.6 million in the prior-year period, primarily due to disposal of tenant assets upon termination and accelerated depreciation on assets with updated estimated useful lives resulting from the closure of the Tin Building by Jean-Georges in February 2026, partially offset by a decrease resulting from a lower depreciable asset basis.
Previous wording
Interest Income (Expense). Interest income decreased $1.4 million to $0.4 million for the six months ended June 30, 2026 compared to $1.8 million income in the prior-year period. This change is primarily due to a $1.0 million decrease in interest income earned, and a $0.4 million decrease inamounts capitalized to development assets which increased interest expense.
Current wording
Interest Income (Expense). Interest income decreased $0.8 million to $0.8 million for the nine months ended September 30, 2026 compared to $1.6 million income in the prior-year period. This change is primarily due to a $1.1 million decrease in interest income earned on invested cash, partially offset by a $0.3 million decrease ininterest expense related to 250 Water Street.
Previous wording
Other Income (Loss), net. Other loss, net increased $2.8 million to $2.9 million loss for the six months ended June 30, 2026 compared to $0.1 million loss in the prior-year period. This change was due to $2.2 million increase in restructuring costs primarily related to restaurant closures during the period, and a $0.5 million increase in pre-opening costs related to new ventures during the period.
Current wording
Other Income (Loss), net. Other loss, net increased $1.1 million to a $3.7 million loss for the nine months ended September 30, 2026 compared to a $2.6 million loss in the prior-year period. This change was due to a $0.6 million increase in pre-opening costs related to new ventures during the period and $0.5 million in non-recurring legal costs.
Previous wording
*Equity in Earnings (Losses) from Unconsolidated Ventures.*Equity in earnings (losses) from unconsolidated ventures decreased $1.6 million to losses of $0.6 million for the six months ended June 30, 2026, compared to earnings of $1.0 million in the prior-year period. This change was primarily due to a $0.8 million decrease in income for the Lawn Club and a $0.8 million decrease in income for JG.
Current wording
*Equity in Earnings (Losses) from Unconsolidated Ventures.*Equity in earnings (losses) from unconsolidated ventures decreased $2.0 million to earnings of $0.1 million for the nine months ended September 30, 2026, compared to earnings of $2.1 million in the prior-year period. This change was primarily due to a $1.1 million decrease for the Lawn Club and a $0.8 million decrease for JG.
Previous wording
Hospitality revenue decreased $8.1 million to $7.1 million for the three months ended June 30, 2026, compared to $15.2 million in the prior-year period. This change was primarily due to a decrease as a result of the closure of the Tin Building by Jean-Georges in February 2026 as well as the closure of Malibu Farms, partially offset by the openings at Sadie’s and Sadie’s Garden Bar.
Current wording
Hospitality revenue decreased $8.8 million to $7.9 million for the three months ended September 30, 2026, compared to $16.7 million in the prior-year period. This change was primarily due to a decrease as a result of the closure of the Tin Building by Jean-Georges in February 2026 as well as the closure of Malibu Farms, partially offset by the openings at Sadie’s and Sadie’s Garden Bar.
Previous wording
Hospitality costs decreased $14.8 million to $8.3 million for the three months ended June 30, 2026, compared to $23.1 million in the prior-year period. This is primarily resulting from the closure of the Tin Building by Jean-Georges in February 2026 as well as the closure of Malibu Farms, partially offset by the new openings of Sadie’s and Sadie’s Garden Bar.
Current wording
Hospitality costs decreased $13.5 million to $9.6 million for the three months ended September 30, 2026, compared to $23.1 million in the prior-year period. This is primarily resulting from the closure of the Tin Building by Jean-Georges in February 2026 as well as the closure of Malibu Farms, partially offset by the new openings of Sadie’s and Sadie’s Garden Bar.
Previous wording
Hospitality revenue decreased $10.8 million to $12.1 million for the six months ended June 30, 2026, compared to $22.9 million in the prior-year period. This change was primarily due to a decrease as a result of the closure of the Tin Building by Jean-Georges in February 2026 as well as Malibu Farms, partially offset by the new openings at Sadie’s and Sadie’s Garden Bar.
Current wording
Hospitality revenue decreased $19.5 million to $20.1 million for the nine months ended September 30, 2026, compared to $39.6 million in the prior-year period. This change was primarily due to a decrease as a result of the closure of the Tin Building by Jean-Georges in February 2026 as well as Malibu Farms, partially offset by the new openings at Sadie’s and Sadie’s Garden Bar.
Previous wording
Hospitality costs decreased $22.5 million to $21.0 million for the six months ended June 30, 2026, compared to $43.5 million in the prior-year period. This is primarily resulting from the closure of the Tin Building by Jean-Georges in February 2026 as well as Malibu Farms, partially offset by the new openings of Sadie’s and Sadie’s Garden Bar.
Current wording
Hospitality costs decreased $36.0 million to $30.6 million for the nine months ended September 30, 2026, compared to $66.6 million in the prior-year period. This is primarily resulting from the closure of the Tin Building by Jean-Georges in February 2026 as well as Malibu Farms, partially offset by the new openings of Sadie’s and Sadie’s Garden Bar.
Previous wording
Entertainment revenue decreased $0.3 million to $19.8 million for the three months ended June 30, 2026 compared to $20.1 million in the prior-year period. This change was primarily due to decrease in sponsorship revenue at the Seaport as well as a decrease in revenues at the Aviators due to fewer games compared to the prior period, partially offset by an increase in special events held at the Las Vegas Ballpark.
Current wording
Entertainment revenue decreased $2.6 million to $19.9 million for the three months ended September 30, 2026 compared to $22.5 million in the prior-year period. This change was primarily due to a decrease in revenue from The Rooftop at Pier 17 due to less concerts than prior year, a decrease in revenues at the Aviators due to the extreme heat during the summer months and less special events held at the Las Vegas Ballpark.
Previous wording
Landlord Operations Operating EBITDA decreased $0.1 million compared to the prior-year period primarily due to the following:
Current wording
Landlord Operations Operating EBITDA decreased $2.2 million compared to the prior-year period primarily due to the following:
Previous wording
Rental revenue decreased $0.8 million to $8.5 million for the three months ended June 30, 2026, compared to $9.3 million in the prior-year period. This change was primarily driven by a decrease due to the closure of the Tin Building by Jean-Georges in February 2026, which reduced intercompany rental revenue, partially offset by current period lease termination income and accelerated rents associated with one lease termination as well as increased rental fees from events on Pier 17.
Current wording
Rental revenue decreased $2.7 million to $5.8 million for the three months ended September 30, 2026, compared to $8.5 million in the prior-year period. This change was primarily driven by a decrease due to the closure of the Tin Building by Jean-Georges in February 2026, which reduced intercompany rental revenue, and Pier 17 lease terminations in the prior year, partially offset by new rent commencements in the current year at the Tin Building and Pier 17.
Previous wording
Entertainment revenue remained unchanged at $24.3 million for the six months ended June 30, 2026 compared to $24.3 million in the prior-year period.
Current wording
Other revenue remained unchanged at $0.5 million.
Previous wording
Operating costs decreased $1.9 million to $13.9 million for the six months ended June 30, 2026, compared to $15.8 million in the prior year period. This change was due to decreases in marketing, maintenance, insurance, and other landlord specific costs period over period.
Current wording
Operating costs decreased $0.4 million to $7.1 million for the three months ended September 30, 2026, compared to $7.5 million in the prior year period. This change was due to decreases in landlord specific operating costs period over period.
Previous wording
Landlord Operations Operating EBITDA decreased $2.3 million compared to the prior-year period primarily due to the following:
Current wording
Landlord Operations Operating EBITDA decreased $4.5 million compared to the prior-year period primarily due to the following:
Previous wording
Rental revenue decreased $4.1 million to $13.6 million for the six months ended June 30, 2026, compared to $17.7 million in the prior-year period. This change was primarily driven by a decrease due to the closure of the Tin Building by Jean-Georges in February 2026, which reduced intercompany rental revenue, partially offset by current period lease termination income and accelerated rents associated with one lease termination in the quarter.
Current wording
Rental revenue decreased $6.8 million to $19.4 million for the nine months ended September 30, 2026, compared to $26.2 million in the prior-year period. This change was primarily driven by a decrease due to the closure of the Tin Building by Jean-Georges in February 2026, which reduced intercompany rental revenue, and Pier 17 lease terminations in the prior year, partially offset by current period lease termination income and accelerated rents associated with one lease in addition to new lease commencements at the Tin Building and Pier 17.
Previous wording
Operating costs decreased $0.8 million to $6.9 million for the three months ended June 30, 2026, compared to $7.7 million in the prior year period. This change was due to decreases in marketing, maintenance, insurance, and other landlord specific costs period over period.
Current wording
Operating costs decreased $2.3 million to $21.0 million for the nine months ended September 30, 2026, compared to $23.3 million in the prior year period. This change was due to decreases in marketing, maintenance, insurance, charitable contributions and other landlord specific costs period over period.
Previous wording
As of June 30, 2026 and December 31, 2025, our cash and cash equivalents were $117.8 million and $77.8 million, respectively. As of June 30, 2026 and December 31, 2025, our restricted cash was $9.2 million and $9.6 million, respectively. Restricted cash is segregated in escrow accounts related to payment of principal and interest on the Company’s outstanding mortgages payable as well as the escrow funds related to post-closing obligations related to the sale of the 250 Water Street.
Current wording
As of September 30, 2026 and December 31, 2025, our cash and cash equivalents were $105.5 million and $77.8 million, respectively. As of September 30, 2026 and December 31, 2025, our restricted cash was $4.8 million and $9.6 million, respectively. Restricted cash is segregated in escrow accounts related to payment of principal and interest on the Company’s outstanding mortgages payable as well as the escrow funds related to post-closing obligations related to the sale of 250 Water Street.
Previous wording
Cash used in operating activities decreased $9.4 million to $11.8 million in the six months ended June 30, 2026, compared to $21.2 million in the prior-year period. The decrease primarily relates to changes in cash used in operating activities in each of our segments and decreased general and administrative expenses.
Current wording
Cash used in operating activities decreased $5.7 million to $20.9 million in the nine months ended September 30, 2026, compared to $26.6 million in the prior-year period. The decrease primarily relates to changes in cash used in operating activities in each of our segments and decreased general and administrative expenses.
Previous wording
Cash provided by investing activities increased $134.0 million to $115.2 million in the six months ended June 30, 2026, compared to $18.8 million of cash used in investing activities in the prior-year period. The increase in cash provided by investing activities was primarily related to proceeds from the sale of 250 Water Street.
Current wording
Cash provided by investing activities increased $129.6 million to $108.5 million in the nine months ended September 30, 2026, compared to $21.1 million of cash used in investing activities in the prior-year period. The increase in cash provided by investing activities was primarily related to proceeds from the sale of 250 Water Street and 85 South Street.
Previous wording
Cash used in financing activities increased $61.3 million to $63.8 million in the six months ended June 30, 2026, compared to $2.5 million in the prior-year period, primarily due to the payment of the mortgage loan on 250 Water Street.
Current wording
Cash used in financing activities increased $61.3 million to $64.7 million in the nine months ended September 30, 2026, compared to $3.4 million in the prior-year period, primarily due to the payment of the mortgage loan on 250 Water Street.
Previous wording
We lease land or buildings at certain properties from third parties. Rental payments are expensed as incurred and have been, to the extent applicable, straight-lined over the term of the lease. Contractual rental expense was $1.8 million and $1.7 million for the three months ended June 30, 2026 and 2025, respectively, and $3.5 million and $3.3 million for the six months ended June 30, 2026 and 2025, respectively. The amortization of straight‑line rents included in the contractual rent amount was $0.5 million and $0.3 million for the three months ended June 30, 2026 and 2025, respectively, and $1.0 million and $1.1 million for the six months ended June 30, 2026 and 2025, respectively. A summary of our lease obligations as of June 30, 2026 and December 31, 2025, can be found in Note 9 –Leases in the Unaudited Notes to the Consolidated Financial Statements included in this Quarterly Report.
Current wording
We lease land or buildings at certain properties from third parties. Rental payments are expensed as incurred and have been, to the extent applicable, straight-lined over the term of the lease. Contractual rental expense was $1.8 million and $1.3 million for the three months ended September 30, 2026 and 2025, respectively, and $5.3 million and $4.6 million for the nine months ended September 30, 2026 and 2025, respectively. The amortization of straight‑line rents included in the contractual rent amount was $0.5 million during each of the three months ended September 30, 2026 and 2025, and $1.6 million and $1.7 million for the nine months ended September 30, 2026 and 2025, respectively. A summary of our lease obligations as of September 30, 2026 and December 31, 2025, can be found in Note 9 –Leases in the Unaudited Notes to the Consolidated Financial Statements included in this Quarterly Report.
Previous wording
Our Unaudited Consolidated Financial Statements include all of our accounts, including our majority owned and controlled subsidiaries and variable interest entities (“VIEs”) for which we are the primary beneficiary. If the Company determined it was not the primary beneficiary of a VIE during the three and six months ended June 30, 2026 and 2025, the Company did not consolidate the VIE in which it holds a variable interest.
Current wording
Our Unaudited Consolidated Financial Statements include all of our accounts, including our majority owned and controlled subsidiaries and variable interest entities (“VIEs”) for which we are the primary beneficiary. If the Company determined it was not the primary beneficiary of a VIE during the three and nine months ended September 30, 2026 and 2025, the Company did not consolidate the VIE in which it holds a variable interest.
Previous wording
during the development period, and the subsequent depreciation of the real estate would be overstated. For the six months ended June 30, 2026 and 2025, we capitalized development costs of $0.0 million and $5.2 million, respectively.
Current wording
during the development period, and the subsequent depreciation of the real estate would be overstated. For the nine months ended September 30, 2025, we capitalized development costs of $6.5 million. We did not capitalize any development costs for the nine months ended September 30, 2026.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Other revenue remained unchanged at $1.3 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Interest Income (Expense). Interest income decreased $0.1 million to $0.7 million for the three months ended June 30, 2026 compared to $0.8 million income in the prior-year period.