NEW YORK - Seaport Entertainment Group Inc. (NYSE American: SEG), a leading entertainment and hospitality company currently valued at $352 million, has announced the opening of a new dining and nightlife venue, GITANO NYC, at Pier 17. The establishment is the result of an interim license agreement and a long-term lease with Grupo Gitano, a Tulum-based company. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.3, indicating solid short-term financial stability.
The new GITANO NYC occupies 13,605 square feet and marks the group's first permanent, year-round venture in New York. Anton Nikodemus, Chairman, President, and CEO of Seaport Entertainment Group, expressed enthusiasm for the addition, highlighting GITANO NYC's unique blend of Bohemian-inspired design, modern Mexican cuisine, and nightlife complemented by views of the Brooklyn Bridge and New York City skyline.
In a strategic move to internalize food and beverage operations, Seaport Entertainment Group has also onboarded employees from Creative Culinary Management Company LLC (CCMC), an indirect wholly owned subsidiary of Jean-Georges Restaurants. Alongside a shared services agreement with CCMC, these steps aim to streamline operations and drive efficiency for Seaport's wholly owned and joint venture-owned restaurants. This operational restructuring comes as the company faces profitability challenges, with InvestingPro analysis showing negative gross profit margins and EBITDA of -$47.48 million in the last twelve months. Get access to more detailed financial insights and 12+ additional ProTips with an InvestingPro subscription.
Nikodemus noted that this initiative is a significant step toward enhancing the company's hospitality offerings and achieving sustainable growth through greater operational control.
Seaport Entertainment Group specializes in owning, operating, and developing unique entertainment and real estate assets. Their focus is to provide unparalleled experiences through a combination of restaurant, entertainment, sports, retail, and hospitality offerings integrated into one-of-a-kind real estate developments.
The press release also contains forward-looking statements regarding the company's plans, goals, and expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its estimated Fair Value, suggesting investors should carefully consider their entry points.
This announcement is based on a press release statement from Seaport Entertainment Group Inc.
In other recent news, Seaport Entertainment Group Inc. has reported preliminary results from its $175 million rights offering. The offering was oversubscribed, reflecting high investor interest. Computershare Trust Company, the subscription agent, reported that 4,651,166 basic subscription rights were exercised, leading to the acquisition of 5,895,299 shares of common stock. Additionally, requests for 6,847,032 shares under the over-subscription privilege were received.
Investment funds advised by Pershing Square Capital Management, L.P. served as the backstop for the offering, fully exercising their subscription rights. The rights offering, which was completed recently, allowed existing shareholders to purchase additional shares at $25.00 per share. The final results of the offering are expected to be released through a Current Report on Form 8-K around October 17, 2024.
Wells Fargo (NYSE:WFC) Securities acted as the dealer manager for the offering. These recent developments underscore the strong demand for Seaport Entertainment Group's shares and the company's successful capital raising efforts.
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