Seaport Entertainment Group Inc. Debt Disclosure
6.Mortgages Payable, Net
Mortgages payable, net are summarized as follows:
| December 31, | | December 31, | |||
in thousands | 2025 | 2024 | ||||
Fixed-rate debt | ||||||
Secured mortgages payable | $ | 39,090 | $ | 41,087 | ||
Variable-rate debt | ||||||
Secured mortgages payable |
| — |
| 61,300 | ||
Unamortized deferred financing costs |
| (742) |
| (794) | ||
Mortgages payable, net | $ | 38,348 | $ | 101,593 | ||
Secured mortgages payable related to assets held for sale (1) | 61,300 | — | ||||
Mortgages payable related to assets held for sale | $ | 61,300 | $ | — | ||
| (1) | This mortgage relates to 250 Water Street, which is classified as held for sale as of December 31, 2025. Commencing on the date the mortgage was classified as held for sale, the Company has expensed interest related to the mortgage into Interest income (expense) on the Consolidated Statement of Operations. Upon the closing of the sale of 250 Water Street in February 2026, this mortgage was repaid in full. See Note 1 – Summary of Significant Accounting Policies – Assets Held-for-Sale. |
As of December 31, 2025, land, buildings and equipment, developments, and other collateral with an aggregate net book value of $237.9 million have been pledged as collateral for the Company’s debt obligations. Secured mortgages payable are without recourse to the Company at December 31, 2025.
Secured Mortgages Payable
The Company’s outstanding mortgages are collateralized by certain of the Company’s real estate assets. The Company’s fixed-rate debt obligation requires semi-annual installments of principal and interest, and the Company’s variable-rate debt requires monthly installments of only interest. As of December 31, 2025, the Company’s secured mortgage loans did not have any undrawn lender commitment available to be drawn for property development.
The following table summarizes the Company’s secured mortgages payable:
December 31, 2025 | | December 31, 2024 | ||||||||||||
| | Interest | | | | Interest | | |||||||
$in thousands | Principal | Rate | Maturity Date | Principal | Rate | Maturity Date | ||||||||
Fixed rate (a) | $ | 39,090 |
| 4.92 | % | December 15, 2038 | $ | 41,087 |
| 4.92 | % | December 15, 2038 | ||
Variable rate (b) (c) |
| 61,300 |
| 10.77 | % | July 1, 2029 |
| 61,300 |
| 9.49 | % | July 1, 2029 | ||
Secured mortgages payable | $ | 100,390 | | $ | 102,387 |
| | | ||||||
| (a) | The Company has one fixed-rate debt obligation as of December 31, 2025, and December 31, 2024. The interest rate presented is based upon the coupon rate of the debt. |
| (b) | The Company has one variable-rate debt obligation as of December 31, 2025, and December 31, 2024. The interest rate presented is based on the applicable reference interest rate as of December 31, 2025, and December 31, 2024. |
| (c) | The Company has a total return swap with the lender in connection with its variable-rate debt. At December 31, 2025, the assumed rate of the indebtedness associated with our variable-rate debt obligation is based on SOFR + 4.5%, which is the combination of the interest rates on two instruments: (i) the variable-rate debt obligation, pursuant to which the Company is obligated to pay the lender an amount equal to SOFR + 7.0%, and (ii) the total return swap, pursuant to which the Company is entitled to receive 2.5% from the lender. At December 31, 2024, the assumed rate of the indebtedness associated with our variable-rate debt obligation is based on SOFR + 4.5%, which is the combination of the interest rates |
| on two instruments: (i) the variable-rate debt obligation, pursuant to which the Company is obligated to pay the lender an amount equal to SOFR + 5.0%, and (ii) the total return swap, pursuant to which the Company is entitled to receive 0.5% from the lender. The cash flows from this total return swap does not vary based on any underlying and there is no net settlement, as such, it is not considered to meet the criteria of ASC 815 “Derivatives and Hedging” and determined to not be a derivative. |
During the year ended December 31, 2025, the Company’s mortgage activity included a repayment of $2.0 million of our fixed rate debt.
During the year ended December 31, 2024, the Company’s mortgage activity included a repayment of $1.9 million of our fixed rate debt. In connection with and prior to the Separation, on July 31, 2024, the variable rate mortgage related to 250 Water Street was refinanced, with HHH paying down $53.7 million of the outstanding principal balance and SEG refinancing the remaining $61.3 million at an interest rate of plus a margin of 4.5% and scheduled maturity date of July 1, 2029.
On January 1, 2025, the mortgage loan on 250 Water Street was amended to increase the margin from 5.0% to 7.0%. The Company is entitled to receive this 2.0% increase from the lender by way of the total return swap, resulting in no change in cash flows to the Company.
Scheduled Maturities
The following table summarizes the contractual obligations relating to the Company’s mortgages payable as of December 31, 2025:
| Mortgages payable | ||
principal | |||
thousands | payments | ||
2026 | $ | 2,097 | |
2027 |
| 2,201 | |
2028 |
| 2,311 | |
2029 |
| 2,426 | |
2030 |
| 2,547 | |
Thereafter |
| 27,508 | |
Total principal payments |
| 39,090 | |
Unamortized deferred financing costs |
| (742) | |
Mortgages payable, net | $ | 38,348 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.