Greetings, and welcome to the Seaport Entertainment Group Fourth Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. It is now my pleasure to introduce your host, Matt Partridge, Chief Financial Officer. Thank you. You may begin.

Thank you, operator and good morning everyone. Thank you for joining us today for our inaugural earnings conference call. With me today is our Chairman and President, and CEO, Anton Nikodemus. As outlined in our earnings announcement press release from a few weeks ago, we solicited questions ahead of today's call and we've incorporated many of those questions and answers into our prepared remarks. If you have additional questions after today's call, please contact ir@seaportentertainment.com and we'll respond to any additional questions accordingly. Before we begin, I'd like to remind everyone that many of our comments today are considered forward-looking statements under federal securities law. The Company's actual future results may differ significantly from the matters discussed in these forward-looking statements and we undertake no duty to update these statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed from time to time in greater detail in the Company's Form 10-K, Form 10-Q and other SEC filings. You can find our SEC reports, earnings release and most recent investor presentation on our website at www.seaportentertainment.com. With that, I'll now turn the call over to Anton.

Thanks Matt, and good morning everyone. We had a very successful 2024 and a start to 2025, and we're excited to be having our inaugural earnings conference call to discuss the progress that Seaport Entertainment Group has made since our formation in the summer of 2024. As many of you know, we officially separated from Howard Hughes Holdings and became an independent, standalone public company on July 31, 2024 and began trading on the New York Stock Exchange American on August 1 under the ticker symbol, SEG. The formation and separation of Seaport Entertainment Group was grounded in the belief that a number of high quality yet underperforming assets within Howard Hughes successful master plan community portfolio required an operations centric team of executives focused on hospitality and entertainment to unlock the best opportunities to maximize long term value. Since the decision was made to create Seaport Entertainment Group, we've established a best-in-class team with a mix of new and legacy team members to address underlying issues within our core portfolio while creating a platform that can scale to a premier real-estate centric hospitality and entertainment company. Over the past seven months we've made significant progress in addressing near term priorities which have resulted in fortifying our balance sheet through 175 million rights offering, implementing technology and infrastructure initiatives to allow us to reset how we use data and systems to make operational decisions and drive efficiencies, establishing a new vision of what we believe the Seaport Neighborhood in New York City can become and introducing that vision into the market, identifying and prioritizing value creation opportunities throughout the portfolio for 2025 and beyond and bringing in-house the food and beverage operations team at the Seaport to allow us more direct oversight over day to day decision making in our…

Thanks, Anton. Before we go into our operating and financial performance for the fourth quarter, I'll caveat that some of our year-over-year comparisons, are impacted by new businesses, closed businesses, separation related expenses, and other operating changes that in certain instances, make the comparisons more nuanced. As we bring on new leases and partnerships, and work to implement many of our cost containment measures, operational improvements and other best practices, we anticipate gains in overall segment operating income over time, which could come with potentially lower revenues, but better overall flow through in segment profitability. With that being said, let's first start with our operating revenues, and performance by various business segments. Total consolidated revenues during the fourth quarter were $22.8 million, largely flat year-over-year. Compared to the fourth quarter of 2023, our consolidated sponsorship events and entertainment revenues were down 13.6%, primarily due to reduced winter programming at Pier 17 and throughout the Seaport, which ultimately allowed us to lower expenses improve overall flow through for the segment. Consolidated hospitality revenue increased 6.5% during the quarter and as Anton mentioned, overall hospitality revenue grew 12.8% and same-store hospitality revenues were down 3.5%. Overall hospitality revenues in same-store results are inclusive of our consolidated restaurant operations and unconsolidated venues such as the Tin Building and Lawn Club. The consolidated hospitality revenues only include our wholly owned venues. The financial results of our unconsolidated venues such as the Tin Building and Lawn Club are reflected in the equity and earnings losses from unconsolidated ventures line items on our P&L. From an operating income perspective, the hospitality segment was down year-over-year due to higher operating expenses and payroll, some of which were one time in nature in anticipation of bringing in-house the operations team at the beginning of the year. We anticipate…

Thanks Matt. 2024 was a transformative year for us and I'm excited about the tremendous progress that we've made over these past seven months. But this is just the beginning and I'm optimistic we will execute on the identified areas for improvement and we will find unique opportunities for growth. We appreciate all of our team's hard work and the continued support of our shareholders as we look forward to providing additional updates on our company and our progress in the coming months. And thank you so much for joining us today, And thank you, operator

Thank you. And ladies and gentlemen, this does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.