I mean, I'd love to say this was all planned out and we're right on track. You know, things ebb and flow. We get lucky here or there. We have setbacks here and there. So, you know, it's not a linear path, but I can't say enough how proud I am of the team and how much progress we've made, especially over the last, call it nine, 10 months since I stepped into the seat. You know, everybody's run Always said it was going to take three plus years to stabilize everything, and I think we're right on track with that for 2028 being that initial stabilization year.

Awesome. Great. Thank you, guys. Appreciate it as always.

Thanks, Matt. Thanks, Matt. Our next question comes from Ross Haberman with RLH Investments. Please go ahead.

Morning. Nice quarter, Matt. You guys are really coming along here. Can I go, Lena, can I go back to the 50 to 70 million in CapEx, which you referred to? What is the, that's over what, the next two years, is that correct?

Yeah, hey, good morning, Ross, thank you. Yeah, it's over the next two years. It's until we reach that stabilization point and get through all of the projects we've committed to.

And Ross, I would just elaborate that, you know, You know how these things go. Dollars typically trail construction progress. Right. So even though something like Meow Wolf may open late Q4 2027, early Q1 2028, you know, dollars will trail that opening just as we we close out the project. So to Lena's point, you know, it's about two years to put us into mid 2028 before we expect all the dollars to get out the door.

In the past, you threw out a number that if all these projects were – if all these leases were in place, how much revenue or cash flow they would generate. What is that number today? What you haven't signed?

Yeah, we still have that out there. It's in the supplemental. It is – give me one sec, bro. I'm sorry. I'm sorry.

It's around 26 million.

It's just over 26 million, Ross. And as we continue to make progress from a leasing standpoint, yeah, the additional. As we keep making progress from a leasing standpoint, hopefully that number will increase. But obviously, as things open and as we lap over things like Nike and ESPN no longer being in the historical trailing 12, that number will move around.

And that's a pre-G&A number.

Correct.

Is there more room? You said you hope to get the G&A down to about $27 million. Is there more room on that to lower that further?

Yeah, I think so. I mean, we're going to start budgeting this month for 2027, and that'll continue to be a focus. We inherited some existing service contracts and And arrangements that had, you know, two, three year lives on them. So we're coming up on the expiration of some of those where we can either renegotiate them or move on from them. And, you know, some of those are related to systems. Some of those are related to consultants and other relationships. So it'll continue to be an emphasis. But I think, you know, we've made a lot of progress and not all of that progress is reflected in the number and in Q2, so we'll start to see the full year benefits of that as we get into 2027.

That's about it. Thank you for the help. The best of luck.

Thanks, Ross. Thanks, Ross. Our next question comes from Dan Joseph with Apparent Capital. Please go ahead.

Hi, Matt. Hi, Lena. Congratulations. This was an outstanding quarter. Great progress for the company. I also want to call out your presentation and materials, particularly pages 47 through 49. For me personally, I thought that was incredible progress. Very transparent, very good communication. continues to help me understand the company in a better and better way. So, thank you guys for continuing to lean into improving the way that you communicate with us as shareholders.

Thanks, Dan. Always happy to provide information as we can. I think you know things move around, so that limits our ability to be forward-looking, but I think we're getting to a better and better stabilization point where we'll be able to start providing more forward-looking information in the coming months and quarters.

That's great. So on that subject, from a stabilization standpoint, as you now are, you know, in the cash flow positive realm, kind of ahead of expectations, have your expectations for stabilized EBITDA in 2028 changed at all?

I wouldn't say they've changed. I think, obviously, if we can continue to accelerate positive earnings earlier, that's going to help with cash burn. You know, Q1 is obviously a seasonally slower month, so that's going to be a harder one to get to a positive place. But, you know, the event space, Blue Museum opening, eventually Meow Wolf and all the other concepts that are in the queue are obviously going to help. How the event space ramps up in terms of business and bookings and things like that, I think, is an area where we have different iterations of models. Obviously, we have optimistic models and conservative models related to that. But our team is very focused on putting structure around that and getting that ramped up as quickly as possible. I'd say that's probably the most volatile component of what we have in the queue right now, given how operationally involved it'll be.

Got it. A couple questions on some of the challenges that you guys are having. You mentioned the loss of a sponsor at the rooftop. Could you elaborate on that a little bit?

Yeah, it was Chase. They had historically been a founding sponsor when the Pier and Rooftop Concert Series were launched. You know, they've had some turnover or change in the team that we were working with, and they've look to prioritize what I would call more exclusive and unique experiences for their cardholders. And so we're in active conversations with different groups, whether in the financial services world or entertainment world or everything in between about replacing that sponsorship income. Those deals don't happen overnight. The team that we have is a terrific team who's got a lot of deep relationships. And so But these are typically multiple-year deals, and so they take a lot longer to negotiate and ultimately replace that cash flow.

Got it. And Lawn Club, you mentioned that the EBITDA at the Lawn Club was down. Is there a plan in place to kind of reverse that trend? Do you see upside there? How do you guys look at Lawn Club as a – and obviously it's a meaningful contributor –

Hey, Dan. Yeah, Lawn Club is certainly a meaningful contributor to us. And a part of the decline year over year is that in prior year, the Lawn Club operated the Sadie's Garden Bar. And so that was a tremendous benefit to the Lawn Club at the time that effectively got shifted over to Sadie's. So the Lawn Club team is doing a great job in trying to make up that revenue and continuing activations, you know, inside and outside the space. So We definitely see the progress they're making. For us, it's more of a shift from one venue to another versus a decline at the Lawn Club. That would be a serious issue.

Just anecdotally, I think Lawn Club hit an all-time record in revenue for July. They're not slowing down. Obviously, the Sadie's Garden Bar, given our comments earlier, has performed better than last year. I think everybody's The aggregate coming out ahead, it's just shifting where the revenue is coming from. I think Long Club will have a very strong back half of the year based on how they've reforecasted and their expectations for the remainder of Q3 and into Q4.

That's helpful. That doesn't feel like a negative. That actually feels like a positive just given the strength of Sadie's. As you know, I've been down there and the Sadie's traffic is unbelievable. I look at that from a positive light. One more question, which at the last call, you mentioned the board having approved share repurchase program, as well as having a shelf offering, I think, for $125 million for the potential launch when the stock strengthens. Any Kind of new news or information that you can share on the share repurchase program or any plans to raise capital? Or are you kind of standing put right now on that front?

No, I wouldn't say there's any new news. We continue to view the shelf and the buyback program as tools. I think as we continue to get clarity in terms of Opening timelines and things like that and capital costs and stuff like that will have a better sense of cash burn as we get into 2027 and ultimately 2028. And that will certainly influence whether or not the share buyback program becomes more actionable. Obviously, the performance of the stock will also impact that. But I think generally what you investors should expect is that we won't talk about share buybacks until they happen, if they do happen. And as we've said, it is a tool in the toolbox. I think beyond that, from a capital raising standpoint, no, we haven't suggested there's any imminent capital raising. And I think from our standpoint, we're focused on executing and continuing to march towards that 2028 stabilization point with the existing asset base. As I've said in the past, we're going to be opportunistic in evaluating other opportunities, but as I've also said, we're not going to race towards something or feel like we have to do something just to put capital to work. We want to do it because it's the right investment decision and the right capital allocation decision for the company long term.

Makes sense. It's really smart. As you know, I think you guys are just doing a great job blocking, tackling, and making really great strategic decisions. So again, congratulations on everything. I don't want to monopolize any more time. Looking forward to seeing the Blue Museum when it opens up and continued good work ahead. Thank you.

Thanks, Dan. Really appreciate it.

Our next question comes from Ross Haberman with RLH Investments. Please go ahead.

Sorry, guys, I left out one question. Could you talk in general about leasing rates and prices given the political environment and the city? What do you see in there? What kind of trends, if there are any?

I wouldn't say there's any trends in relation to politics or anything along those lines. I think if you look at the city broadly... There's an inordinate amount of strength in the Midtown corridor. You know, office has been red hot during the summer in terms of office leasing, and I think we're starting to see some of that play out downtown. You know, I would say the seaport's a little bit unique in that there was, including our property, a decent amount of inventory on the market available. And as we continue to chip away at that inventory and fill in the occupancy, That's going to give us more pricing power, and I think we're starting to see that, especially as we make different announcements that are relevant to potential tenants. So for us, it's not a demand issue. It's a use consideration, and we're trying to be judicious in terms of how we evaluate the tenant mix and the placemaking that we're trying to create down here.

All right. I was just trying to get a general sense if prices are – firmer today or less than they were a year ago or so?

I would say they're firmer today, broadly speaking, and I think certainly for the seaport, they're firmer, just given all the progress that we've made.

Thanks again. Best of luck. Bye.

Thanks, Ross. We have reached the end of our question and answer session. I would now like to turn the floor back over to Matt Partridge for closing comments.

Thanks, everybody, for joining us today. We really appreciate the support and look forward to sharing updates on the progress on the next earnings fall in November. Have a great rest of the summer break.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.