The latest Spike Lee “joint” featuring Denzel Washington in the new Apple TV+ movie Highest 2 Lowest is a middling crime thriller that prominently features a high-end condo next to the Brooklyn bridge with stunning views of lower Manhattan. One area on the banks of the East River and adjacent to the Brooklyn Bridge that is visible from this condo is the South Seaport District, with multiple piers, a rooftop concert venue and multiple restaurants.
In our May 2025 Special Situations newsletter, we featured Seaport Entertainment Group (SEG) as our spotlight idea. The company, a spinoff from Howard Hughes (HHH), owns both waterfront assets in lower Manhattan as well as an eclectic collection of assets in Las Vegas. A visit to New York City’s Seaport district earlier this year offered a firsthand look at two of its key properties: the Tin Building and Pier 17. The visit prompted me to write about the idea and add it to the model portfolio at a little over $19 per share. Here is a short excerpt from the newsletter:
“The Tin Building is an upscale food hall with an integrated grocery store with multiple restaurant concepts across the two floors of the building. Imagine my surprise when I saw that one of the restaurants was called Crepes and Dosas. I have often described the South Indian staple food (delicacy for some) called dosa as a savory crepe. Getting back to the Tin Building, in many ways, it reminded me of a food hall near the Tottenham Court Road tube station in London.
Unlike traditional food courts, this one had groceries and other stuff spread throughout. The groceries part of it is a distraction. It cannibalizes space that could be dedicated to additional restaurants and seating. The fusion cuisine in the various restaurants imagined by celebrated chef Jean-Georges Vongerichten in the space is certainly interesting, but when I took a closer look at the Crepes and Dosas menu, the dosa reference was mostly in name. I had lunch plans shortly after I visited the Tin Building and could not sample the food, but I did get a chance to pick up an Italian cake that turned out to be delicious.
Why am I spending so much time discussing the Tin Building? It is one of the buildings owned by Seaport Entertainment Group. It is also the building that is losing SEG the most money.”
Behind the scenic skyline, the company is grappling with several challenges: a money-draining Tin Building, a property sale at a steep loss, and a surprise leadership change. Despite these hurdles, management is promising investors a path to profitability by 2026.
Seaport Entertainment Group (SEG): $23.52
Market Cap: $299.46M
Enterprise Value: $330.51M
Key Insights
Company Overview
Seaport Entertainment Group (SEG) operates a diversified portfolio of entertainment and real estate assets across New York City and Las Vegas. The company’s operations are structured into three core segments:
Spin-Off from Howard Hughes Corp.
In August 2024, SEG was spun off from Howard Hughes, separating urban entertainment assets from Howard Hughes’ core focus on master-planned communities and residential development. Unlike many spinoffs, only the debt associated with Seaport and select Las Vegas properties was transferred, avoiding overburdening SEG with additional liabilities.
To strengthen its balance sheet, SEG conducted a $25-per-share rights offering, raising $166.8 million in cash. Major shareholder Bill Ackman participated and backstopped the deal, leaving SEG with $65.4 million in net cash at the end of 2024 and no significant debt maturities until Q3 2029.
Operational Challenges:
The Tin Building
The Tin Building, opened in 2022 for $200 million and designed by renowned chef Jean-Georges Vongerichten, has struggled with low foot traffic, high operating costs, and competition from other food halls.
SEG implemented several measures to curb losses:
Despite these efforts, the Tin Building continues to operate at a loss, prompting SEG to explore strategic alternatives for improving financial performance. Beyond these operational headaches, SEG has also been forced to address its capital needs by monetizing a long-stalled asset.
Monetizing a Long-Stalled Asset: 250 Water Street
One of downtown Manhattan’s most long-stalled development sites may finally get new life. Seaport Entertainment agreed to sell 250 Water Street for $150.5 million, a significant haircut from the nearly $220 million SEG invested in the property. Ackman’s Pershing Square owns a controlling 39% stake in SEG and is also the major shareholder in Howard Hughes supported the divestiture as a strategic move to enhance liquidity.
The full-block, one-acre lot, acquired by Howard Hughes in 2018 for $180 million plus $40 million for air rights, was originally envisioned as an $850 million development: a 27-story tower with 399 apartments atop a five-story base of offices, retail, and community space. The project faced opposition over scale and obstructed views, with Manhattan Supreme Court Justice Arthur Engoron initially siding with activists. In May 2024, the New York State Court of Appeals overruled the decision, clearing the way for construction, though the SEG spinoff in July 2024 stalled the project again.
The buyer, Tavros, is a prominent New York developer with notable projects such as Gowanus Wharf in Brooklyn, as well as developments in the Meatpacking District and Long Island City. The transaction provides SEG with additional liquidity while SEG focuses on stabilizing its operating assets, including the Tin Building and the Pier 17 entertainment complex.
Nike’s Early Lease Termination at Pier 17
Nike opened its S23NYC creative studio at Pier 17 in the South Street Seaport, leasing roughly 23,000 sq. ft. of office space for its SNKRS app team. The lease began in 2018 when Nike signed on as an anchor tenant in the redeveloped Pier 17. The space was intended for creative and technical staff, not retail operations.
Nike exercised its lease termination option, moving the lease expiration from Q1 2030 to Q1 2027. The early termination triggered a $4 million break fee, with half paid in Q2 2025 and the remainder due at the end of the revised lease term in 2027. SEG CEO Anton Nikodemus framed the exit positively, calling it “an opportunity” to gain “greater optionality” in leasing the space to hospitality or entertainment tenants.
Nike itself has not publicly explained why it left Pier 17. Observers note that the move fits Nike’s broader corporate reshuffling. Under CEO Elliott Hill, the company has been slimming down and realigning its corporate operations.
SEG will now have to re-lease about 23,000 sq ft of prime Pier 17 office space to new tenants (it has already signed leases elsewhere in the Seaport for art/entertainment and restaurants.
The company has aggressively filled vacant spaces with entertainment-oriented tenants. Notable leases include Meow Wolf, an immersive arts and interactive experience company; Willett’s NYC, a 4,478 sq. ft. café, tavern, and whiskey bar channeling “Old New York”; and Cork Wine Bar, occupying 1,442 sq. ft. in the historic Cobblestones area.
Leadership and Management Transition
A key moment in SEG’s journey was the sudden leadership transition from Anton Nikodemus to Matt Partridge earlier this month. Nikodemus, appointed CEO in October 2023, brought decades of entertainment and hospitality experience, including roles at MGM Resorts and Monte Carlo Resort & Casinos. He oversaw critical post-spinoff tasks: evaluating assets, restructuring operations, and building the executive team.
Less than two years later, Anton Nikodemus ceased serving as President and CEO of SEG and transitioned into a Special Advisor role until November 3, 2025. The termination was officially “without cause” under Nikodemus’ employment agreement. He also resigned from the board, and independent director Michael Crawford became Chairman.
Matt Partridge, formerly CFO and Treasurer, was appointed CEO.
Why the Change?
SEG insists the strategic plan is intact, but the underlying pressures are hard to ignore:
A turnaround losing patience: SEG is still targeting breakeven next year, but losses remain steep, most glaringly the Tin Building, despite management changes and a shift to a licensing model.
Operational reset: Key tenants like Nike and ESPN are leaving, forcing a rapid pivot from office tenants to entertainment operators.
In this context, Nikodemus’s skill set, ideal for launching a company and cutting big deals, no longer matched the board’s needs. SEG now requires a numbers-first operator to execute a disciplined turnaround, and Partridge, a finance veteran who helped engineer the rights offering and asset sales, fits that bill.
Personal reasons: It is also entirely possible that Nikodemus left for personal reasons after relocating to New York from Las Vegas to take on the top job at SEG.
Despite the CEO change, SEG reaffirmed its targets of profitability by 2027, with nearly 99,000 sq. ft. leased or planned for entertainment use and expanded programming at Pier 17.
Q2 2025 Financial Performance (Press Release) (Supplemental)
These results reflect strong operational progress in Entertainment and Landlord segments, partially offset by ongoing challenges in Hospitality and the Tin Building.
Strategic Outlook
Looking ahead, SEG is focused on reducing cash burn and achieving operational breakeven in 2026. Management is finalizing an amended Tin Building operating plan with Jean-Georges Restaurants, with additional details expected later in 2025.
Management anticipates continued momentum in the events business, highlighting the upcoming New York City Wine & Food Festival and the winter enclosure at Pier 17 as key growth drivers.
Risks and Concerns
Conclusion
SEG has breathing room to regroup, but Matt Partridge needs to immediately contain Tin Building losses and keep Pier 17’s events humming to achieve the 2026 breakeven target. Miss those beats, and the cash cushions could erode fast, making the next two quarters critical for investors watching from the pier.
Despite the run-up in the stock price since we wrote about it for the May newsletter, the company is trading well below its asset value, and we remain bullish on the name.
CEO
CFO
General Counsel/Chief Legal Officer
Others
Appointments
1. Unilever (UL): $60.09
On September 16, 2025, Unilever announced the appointment of Srinivas Phatak as its new Chief Financial Officer effective immediately.
| MarketCap: $149.17B | Avg. Daily Volume (30 days): 2,223,126 | Revenue (TTM): $70.40B |
| Net Income Margin (TTM): 9.29% | ROE (TTM): 28.70% | Net Debt: $23B |
| P/E: 22.76 | Forward P/E: 38.37 | EV/EBIDTA (TTM): 17.77 |
| P/S (TTM): 2.80 | P/B (TTM): 7.19 | 52 Week Range: $54.32 – $65.87 |
2. Corebridge Financial (CRBG): $32.80
On September 9, 2025, Corebridge Financial announced that the Board of Directors has appointed Marc Costantini as President and Chief Executive Officer effective on or about December 1, 2025.
| MarketCap: $17.66B | Avg. Daily Volume (30 days): 3,698,006 | Revenue (TTM): $16.09B |
| Net Income Margin (TTM): -2.10% | ROE (TTM): -2.32% | Net Debt: $14.06B |
| P/E: -48.24 | Forward P/E: 6.52 | EV/EBIDTA (TTM): 38.11 |
| P/S (TTM): 1.33 | P/B (TTM): 1.59 | 52 Week Range: $23.69 – $36.57 |
3. CNX Resources (CNX): $31.56
On September 17, 2025, the Board appointed Alan K. Shepard, the company’s current President and Chief Financial Officer as President and Chief Executive Officer, effective as of January 1, 2026
| MarketCap: $4.46B | Avg. Daily Volume (30 days): 2,039,339 | Revenue (TTM): $1.81B |
| Net Income Margin (TTM): 8.59% | ROE (TTM): 3.73% | Net Debt: $2.73B |
| P/E: 37.57 | Forward P/E: 13.78 | EV/EBIDTA (TTM): 8.08 |
| P/S (TTM): 1.92 | P/B (TTM): 1.18 | 52 Week Range: $27.00 – $41.93 |
4. Yum Brands (YUM): $149.45
On September 8, 2025, Yum Brands appointed Ranjith Roy as Chief Financial Officer, effective October 1, 2025.
| MarketCap: $41.48B | Avg. Daily Volume (30 days): 2,010,611 | Revenue (TTM): $7.91B |
| Net Income Margin (TTM): 18.12% | ROE (TTM): -18.72% | Net Debt: $11.64B |
| P/E: 29.48 | Forward P/E: 23.96 | EV/EBIDTA (TTM): 19.77 |
| P/S (TTM): 5.25 | P/B (TTM): -5.38 | 52 Week Range: $122.13 – $163.30 |
5. Dell Technologies (DELL): $132.09
On September 5, 2025, Dell Technologies announced that, in connection with Ms. McGill’s departure from the position of Chief Financial Officer, David Kennedy, Senior Vice President, Global Business Operations, Finance, has been appointed to act as interim Chief Financial Officer effective on September 9, 2025.
| MarketCap: $88.81B | Avg. Daily Volume (30 days): 5,707,457 | Revenue (TTM): $101.45B |
| Net Income Margin (TTM): 4.77% | ROE (TTM): N/A | Net Debt: $21.37B |
| P/E: 19.28 | Forward P/E: 11.76 | EV/EBIDTA (TTM): 12.85 |
| P/S (TTM): 0.88 | P/B (TTM): -31.85 | 52 Week Range: $66.25 – $147.66 |
Departures
1. CNX Resources (CNX): $31.56
On September 17, 2025, Nicholas J. DeIuliis, the Chief Executive Officer of CNX Resources informed the company of his intention to retire on December 31, 2025, as Chief Executive Officer of the company.
| MarketCap: $4.46B | Avg. Daily Volume (30 days): 2,039,339 | Revenue (TTM): $1.81B |
| Net Income Margin (TTM): 8.59% | ROE (TTM): 3.73% | Net Debt: $2.73B |
| P/E: 37.57 | Forward P/E: 13.78 | EV/EBIDTA (TTM): 8.08 |
| P/S (TTM): 1.92 | P/B (TTM): 1.18 | 52 Week Range: $27.00 – $41.93 |
2. Insulet (PODD): $326.97
On September 16, 2025, Insulet announced that Flavia H. Pease has been appointed to succeed Ana M. Chadwick as Executive Vice President and Chief Financial Officer of the company.
| MarketCap: $23.02B | Avg. Daily Volume (30 days): 636,909 | Revenue (TTM): $2.36B |
| Net Income Margin (TTM): 10.01% | ROE (TTM): 19.18% | Net Debt: $278.10M |
| P/E: 99.69 | Forward P/E: 65.05 | EV/EBIDTA (TTM): 57.55 |
| P/S (TTM): 9.75 | P/B (TTM): 15.10 | 52 Week Range: $225.37 – $353.50 |
3. Corebridge Financial (CRBG): $32.80
Effective December 1, 2025, Kevin Hogan will step down as the company’s President and Chief Executive Officer and will also resign from the Board. Hogan will continue with the company in the role of special advisor to the board from the effective date through the six-month advisory period.
| MarketCap: $17.66B | Avg. Daily Volume (30 days): 3,698,006 | Revenue (TTM): $16.09B |
| Net Income Margin (TTM): -2.10% | ROE (TTM): -2.32% | Net Debt: $14.06B |
| P/E: -48.24 | Forward P/E: 6.52 | EV/EBIDTA (TTM): 38.11 |
| P/S (TTM): 1.33 | P/B (TTM): 1.59 | 52 Week Range: $23.69 – $36.57 |
4. Dell Technologies (DELL): $132.09
On September 5, 2025, Dell Technologies and Yvonne McGill, the company’s Chief Financial Officer, agreed that Ms. McGill will resign from her position as the Company’s Chief Financial Officer effective on September 9, 2025.
| MarketCap: $88.81B | Avg. Daily Volume (30 days): 5,707,457 | Revenue (TTM): $101.45B |
| Net Income Margin (TTM): 4.77% | ROE (TTM): N/A | Net Debt: $21.37B |
| P/E: 19.28 | Forward P/E: 11.76 | EV/EBIDTA (TTM): 12.85 |
| P/S (TTM): 0.88 | P/B (TTM): -31.85 | 52 Week Range: $66.25 – $147.66 |
5. ATI (ATI): $77.01
On September 9, 2025, Donald P. Newman, Executive Vice President, Finance and Chief Financial Officer of ATI advised the company that he will retire on March 1, 2026. The Company is conducting a process to identify its successor.
| MarketCap: $10.61B | Avg. Daily Volume (30 days): 1,858,726 | Revenue (TTM): $4.51B |
| Net Income Margin (TTM): 9.26% | ROE (TTM): 26.05% | Net Debt: $1.57B |
| P/E: 26.65 | Forward P/E: 23.25 | EV/EBIDTA (TTM): 15.87 |
| P/S (TTM): 2.35 | P/B (TTM): 6.92 | 52 Week Range: $39.23 – $96.20 |
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