Item Number: Meeting Date: 11c attach_1_ April 22, 2025 PORT OF SEATTLE Q4 2024 FINANCIAL PERFORMANCE REPORT AS OF DECEMBER 31, 2024 Q4 2024 FINANCIAL & PERFORMANCE REPORT 012/31/24 TABLE OF CONTENTS PAGE I. Portwide Performance Report 3-8 II. Aviation Division Report 9-15 III. Maritime Division Report 16-19 IV. Economic Development Division Report 20-22 V. Central Services Division Report 23-27 2 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/24 I. PORTWIDE EXECUTIVE SUMMARY Passenger volume at SEA was 3.4% higher compared 2023 and 1.6% above the 2019 pre-pandemic volumes. The 2024 cruise season, representing the 25th year of cruises between Seattle and Alaska, ended on October 28 with 1.8 million revenue passengers. The Port's operating revenues for 2024 were $1,040.1 million, which is $17.1 million above the budget and $70.9 million higher than 2023. Public Parking, Rental Cars, Airport Dining & Retails, and Clubs & Lounges, Cruise, Fishing & Operations, Grain, and NWSA Distributable Revenue all exceeded revenue targets while Conference and Event Center, Employee Parking, and Ground Transportation were under budget. Operating expenses (with the non-cash expense credit related to the Port's public pension plans) were $646.9M, $29.5M or 4.8% higher than budget due to higher Payroll, Legal Expenses, Highline Water Settlement, Maintenance Materials, less Charges to Capital, $2.5M advanced payment to Seattle Aquarium, and $2.0M payment to Friends of the Waterfront. PORTWIDE FINANCIAL SUMMARY Actual Budget Actual 479,697 517,683 520,600 326,592 348,212 332,713 162,991 174,245 169,758 969,281 1,040,141 1,023,071 Actual vs. Budget Variance $ % (2,917) -0.6% 15,499 4.7% 4,487 2.6% 17,070 1.7% Change from 2023 Incr (Decr) $ % 37,986 7.9% 21,620 6.6% 11,254 6.9% 70,860 7.3% 490,431 (15,638) 474,793 579,607 (28,709) 550,899 669,661 (22,790) 646,871 617,406 617,406 (52,255) 22,790 (29,465) -8.5% 0.0% -4.8% 90,054 5,919 95,972 15.5% -20.6% 17.4% Depreciation NOI After Depreciation w/o Pension True-up 233,869 85,830 256,740 132,933 272,750 97,730 250,025 155,640 (22,725) (57,910) -9.1% -37.2% 16,009 (35,203) 6.2% -26.5% NOI After Depreciation with Pension True-up 101,467 161,642 120,520 155,640 (35,120) -22.6% (41,122) -25.4% 2022 2023 Actual 402,540 256,613 150,977 810,130 DRS Pension True-up Exp Total O&M Expenses with Pension True-up $ in 000's Aeronautical Revenues Airport Non-Aero Revenues Seaport Revenues Total Operating Revenues Total O&M Expenses w/o Pension True-up 2024 2024 2024 Actuals vs. 2024 Budget:  Airport Non-Aero Revenues were up $15.5M compared to budget mainly due to higher revenues from Public Parking, Rental Cars, Clubs and Lounges, and Airport Dining & Retail (ADR) & Terminal Leased Space.  Seaport Revenues were $4.5M above budget mainly due to higher NWSA Distributable Revenue, Cruise, Fishing & Operations, partially offset by lower revenues from Conference & Event Centers.  Total Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $52.3M higher than budget due to higher Payroll, Legal Expenses, and less Charges to Capital. 2024 Actuals vs. 2023 Actuals:  Total Operating Revenues were up $71.0M compared to 2023 mainly due to higher revenues in most NonAeronautical lines of businesses (with the exception of Employee Parking and Ground Transportation), Grain, Maritime Portfolio Management, Conference & Event Center, and NWSA Distributable Revenue.  Total Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $90.1M higher compared to 2023 due to higher Payroll, Outside Services, $2.5M payment to Seattle Aquarium, $2.0M payment to Friends of the Waterfront, and higher Legal Expenses. 3 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/24 SEAPORT FINANCIAL SUMMARY $ in 000's NWSA Distributable Revenue Maritime Revenues EDD Revenues SWU & Other Total Operating Revenues Total O&M Expenses w/o Pension True-up DRS Pension True-up Exp 2022 2023 2024 2024 Actual 55,353 71,534 17,799 6,291 150,977 95,481 Actual 57,685 82,410 17,215 5,681 162,991 110,345 Actual 62,399 89,163 17,506 5,177 174,245 126,034 Budget 57,154 86,132 21,542 4,929 169,758 121,682 Actual vs. Budget Variance $ % 5,244 9.2% 3,031 3.5% (4,036) -18.7% 248 5.0% 4,487 2.6% (4,352) -3.6% Change from 2023 Incr (Decr) $ % 4,714 8.2% 6,753 8.2% 291 1.7% (504) -8.9% 11,254 6.9% 15,689 14.2% (3,351) (5,137) (4,212) - Total O&M Expenses with Pension True-up Depreciation 92,129 39,524 105,208 42,141 121,821 39,625 121,682 37,020 4,212 (140) (2,605) 0.0% -0.1% -7.0% 925 16,614 (2,516) -18.0% 15.8% -6.0% NOI After Depreciation w/o Pension True-up 15,973 10,506 8,586 11,056 (2,470) -22.3% (1,920) -18.3% NOI After Depreciation with Pension True-up 19,324 15,643 12,798 11,056 1,742 15.8% (2,844) -18.2% 2024 Actuals vs. 2024 Budget  Seaport Operating Revenues were up $4.5M compared to budget mainly due to higher NWSA Distributable revenue, Cruise, Fishing & Operations, partially offset by lower revenues from Conference & Event Centers.  Seaport Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $4.4M higher than budget because of higher Payroll, Highline Water Settlement, Maintenance Materials, Legal Expenses, and less Charges to Capital. 2024 Actuals vs. 2023 Actuals  Seaport Operating Revenues were $11.3M higher compared to 2023 because of higher revenues from Grain, NWSA Distributable Revenue, Recreational Boating, and Maritime Portfolio Management.  Seaport Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $15.7M higher than 2023 due to higher Payroll, Outside Services, $2.5M payment to Seattle Aquarium, $2.0M payment to Friends of the Waterfront, and higher Legal Expenses. 4 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/24 MAJOR OPERATING REVENUES SUMMARY Budget 520,600 Actual vs. Budget Variance $ % (2,917) -0.6% Change from 2023 Incr (Decr) $ % 37,986 7.9% 116,626 45,399 20,872 81,612 23,946 10,462 21,744 9,578 16,709 43,145 16,555 11,771 5,920 11,762 9,993 7,490 62,399 6,474 522,457 111,036 42,201 19,399 78,088 25,333 11,656 20,496 10,089 12,024 41,057 16,468 10,715 5,191 12,697 10,363 11,156 57,154 7,348 502,471 5,590 3,198 1,473 3,524 (1,387) (1,195) 1,249 (511) 4,686 2,088 87 1,056 729 (935) (370) (3,666) 5,244 (874) 19,986 5.0% 7.6% 7.6% 4.5% -5.5% -10.3% 6.1% -5.1% 39.0% 5.1% 0.5% 9.9% 14.0% -7.4% -3.6% -32.9% 9.2% -11.9% 4.0% 5,637 (1,107) 3,917 7,366 (932) (112) 1,375 912 5,000 1,419 1,050 131 2,564 1,499 (472) 752 4,714 (837) 32,874 5.1% -2.4% 23.1% 9.9% -3.7% -1.1% 6.7% 10.5% 42.7% 3.4% 6.8% 1.1% 76.4% 14.6% -4.5% 11.2% 8.2% -11.4% 6.7% 1,040,141 1,023,071 17,070 1.7% 70,860 7.3% 2022 2023 2024 2024 $ in 000's Aeronautical Revenues Actual 402,540 Actual 479,697 Actual 517,683 Public Parking Rental Cars - Operations Rental Cars - Operating CFC ADR & Terminal Leased Space Ground Transportation Employee Parking Airport Commercial Properties Airport Utilities Clubs and Lounges Cruise Recreational Boating Fishing & Operations Grain Maritime Portfolio Management Central Harbor Management Conference & Event Centers NWSA Distributable Revenue Other Total Operating Revenues (w/o Aero) 88,899 44,302 12,171 43,126 20,804 10,645 16,747 7,943 8,688 30,469 13,978 10,566 5,792 10,550 8,791 8,914 55,353 9,851 407,590 110,990 46,506 16,954 74,246 24,878 10,574 20,370 8,666 11,710 41,726 15,505 11,640 3,356 10,263 10,465 6,738 57,685 7,311 489,584 TOTAL 810,130 969,281 MAJOR OPERATING EXPENSES SUMMARY Actual vs. Budget Variance $ % (6,092) -2.9% (19,984) -11.6% 12,754 27.8% 26,942 14.4% (1,182) -3.6% (152) -1.3% (3,693) -39.8% 2,026 25.0% 1,611 11.1% (516) -7.7% (38,924) -198.6% (25,045) 24.4% (52,255) -8.5% Change from 2023 Incr (Decr) $ % 31,117 16.6% 23,808 14.2% 599 1.8% 21,408 15.4% 2,560 8.2% (834) -6.6% 27 0.2% 557 10.1% 2,030 18.6% 785 12.2% 18,703 47.0% (10,707) 16.0% 90,054 15.5% 2022 2023 2024 2024 $ in 000's Salaries & Benefits Wages & Benefits Payroll to Capital Projects Outside Services Utilities Equipment Expense Supplies & Stock Travel & Other Employee Expenses Third Party Mgmt Op Exp B&O Taxes Other Expenses Charges to Capital Projects/Overhead Alloc TOTAL w/o DRS Pension True-up Actual 159,305 146,887 27,020 116,405 31,202 12,039 11,549 4,400 8,985 5,406 21,353 (54,120) 490,431 Actual 187,197 167,928 32,448 139,389 31,226 12,624 12,956 5,511 10,930 6,431 39,824 (66,857) 579,607 Actual 218,314 191,736 33,047 160,797 33,786 11,790 12,983 6,068 12,960 7,216 58,527 (77,564) 669,661 Budget 212,222 171,752 45,801 187,740 32,604 11,637 9,290 8,095 14,570 6,700 19,603 (102,609) 617,406 DRS Pension True-up Credit (15,638) (28,709) (22,790) - 22,790 0.0% 5,919 -20.6% TOTAL w/ DRS Pension True-up 474,793 550,899 646,871 617,406 (29,465) -4.8% 95,972 17.4% 5 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/24 PORTWIDE COMPREHENSIVE FINANCIAL SUMMARY $ in 000's Revenues 1. Operating Revenues 2. Tax Levy 3. PFCs 4. CFCs 5. Fuel Hydrant 6. Non-Capital Grants & Donations 7. Capital Contributions 8. Interest Income Total Actual Actual Actual Budget Actual vs. Budget Variance $ % 810,130 80,785 88,284 24,461 7,451 153,764 38,116 (50,735) 1,152,256 969,281 82,313 95,681 24,657 6,681 19,192 36,309 94,541 1,328,655 1,040,141 85,885 99,364 24,896 6,389 3,491 94,282 81,374 1,435,822 1,023,071 86,665 99,886 24,899 6,996 3,193 63,421 64,541 1,372,672 17,070 (780) (522) (2) (607) 297 30,861 16,834 63,150 Expenses 1. O&M Expense 2. DRS Pension True-up Credit 3. Depreciation 4. Revenue Bond Interest Expense 5. GO Bond Interest Expense 6. Public Expense 7. Non-Op Environmental Expense 8. Other Non-Op Rev/Expense Total Special Item Change In Net Assets 490,431 (15,638) 233,869 140,838 11,877 8,282 1,296 58,630 929,585 222,671 579,607 (28,709) 256,740 146,686 10,162 20,869 10,056 944 996,356 332,299 669,661 (22,790) 272,750 150,418 14,365 11,150 2,747 13,273 1,111,573 91,107 233,142 617,406 250,025 162,463 15,819 27,020 14,800 1,745 1,089,278 283,394 (52,255) 22,790 (22,725) 12,045 1,455 15,870 12,053 (11,528) (22,296) (91,107) (50,252) 2022 2023 2024 2024 Explanation 1.7% -0.9% In line with budget -0.5% In line with budget 0.0% In line with budget -8.7% In line with budget 9.3% In line with budget 48.7% Maily due to more Non-Capital Incentives than budgeted 26.1% Maily due to more Investment Interest Income than budgeted 4.6% -8.5% Mainly due to higher Env Remediation Exp. 0.0% Unbudgeted DRS pension credit -9.1% More new assets came into service 7.4% Less issue new bonds 9.2% In line with budget 58.7% Mainly due to less Non-Constructions 81.4% Less Non-op Environmental than budgeted -660.8% Mainly due to unbudgeted Gain/Loss Sale Of Assets -2.0% 0.0% Unbudgeted Special Item -17.7% KEY PERFORMANCE METRICS 2023 Total Passengers (in 000's) Landed Weight (lbs. in millions) Passenger CPE (in $) Grain Volume (metric tons in 000's) Cruise Passenger (in 000's) Shilshole Bay Marina Occupancy 2024 Fav (UnFav) Incr (Decr) Act vs. Budget Change from 2023 Variance Budget Chg. % Chg. % 52,914 274 0.5% 1,755 3.4% 32,726 (80) -0.2% 741 2.3% 18.31 0.17 0.9% 0.62 3.5% 3,730 (690) -18.5% 1,740 64.9% 1,661 (91) -5.4% (26) -1.5% 96.4% -1.7% -1.7% 0.0% 0.0% 2024 Actual Actual 50,885 52,641 32,064 32,806 17.52 18.14 2,680 4,420 1,778 1,752 98.1% 98.1% 6 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/24 KEY BUSINESS EVENTS The Port renewed the Memorandum of Understanding (MOU) with Washington Maritime Blue. This long-standing collaboration will continue to advance the maritime businesses in a global marketplace, create living wage jobs, and support an innovative hub to reinforce Washington's position as a leader in maritime innovation and sustainability. The Port and Washington Maritime Blue will work on the launch of the Maritime Innovation Center (MInC) at the Port's Fishermen's Terminal, which will serve as a hub for emerging maritime companies. Another initiative under this collaboration is the Quiet Sound which includes the installation of hydrophones, which will monitor underwater noise levels and support efforts to protect the endangered Southern Resident killer whales. Commission authorized $14 million for the second iteration of the South King County Community Impact Fund (SKCCIF) program over the next five years. This fund will continue to advance projects in the historically underresourced, ethnically and culturally diverse communities that surround Seattle-Tacoma International Airport (SEA). The program will be expanded to include areas of King County that the Port of Seattle's Equity Index identifies as having the greatest disparities. Shore power installation project was completed at the Bell Street Cruise Terminal at Pier 66. The Port invested $44 million to equip all three cruise berths with shore power making Seattle one of the first cruise ports to offer shore power for simultaneous use at all its multiple berths. This technology allows ships to plug into the Seattle City Light grid and turn off their fuel-based engines, resulting in a significant reduction in air emissions and improving air quality. Additionally, the Port led the way to become the first port in the nation to require shore power usage by homeported cruise vessels, starting in the 2027 cruise season. Commission directed staff to develop a plan to help address the commuting needs of the more than 20,000 SeattleTacoma International Airport (SEA) workers. This order comes after the adoption of a Ground Transportation Access Plan (GTAP) in 2019 which directed the Port to form SEA MOVES and committed SEA to transportationrelated goals such as decreasing commuter trips in single-occupancy vehicles. The order approved five new programs for 2025 which includes a pilot program to evaluate the benefits of providing ORCA transit passes to a representative group of eligible airport workers, as well as a study of a potential employee bus shuttle. Similarly, the Port will explore the possibility of implementing health care requirements for the more than 20,000 SEA workers in a two-phase approach. The latest commission order seeks to understand how enhancing worker benefits can improve overall airport operations, including safety and customer service which ultimately advance the airport's goal of achieving a five-star Skytrax rating and higher competitiveness. SEA is currently a four-star Skytrax airport. The study will conclude in mid-2025 which will determine whether a policy directive will be considered next year and will be part of phase 2. The Port announced 13 new dining and retail concepts with 10 concessionaires selected for SEA's C Concourse Expansion set to open in 2026. The concessionaires were selected after a thorough, and fair evaluation process with six rating criteria: background/experience and financial capability, concept development and customer experience, unit design and materials, financial offer, management/staffing and operations, and job quality/workforce development. The selection process included external independent facilitation and observation. Commission authorized an order establishing the goal of permanently designating North SeaTac Park (NSTP) for recreational use. The Port has worked with U.S. Senator Maria Cantwell, U.S. Representative Adam Smith, and the rest of the Washington congressional delegation to include language amending the 2024 Federal Aviation Administration Reauthorization Act. The Port, in partnership with Federal Aviation Administration (FAA), published the National Environmental Policy Act Environmental Assessment of the airport's Sustainable Master Plan, a set of 31 near-term projects that will improve efficiency, safety, access to the airport, and support facilities for airlines and the airport. 7 I. PORTWIDE FINANCIAL & PERFORMANCE REPORT 12/31/24 CAPITAL SPENDING SUMMARY $ in 000's 2024 2024 2024 Actual Budget Plan of Finance Budget Variance $ % Aviation 683,833 682,384 717,598 1,449 0.2% Maritime 81,062 72,976 84,825 8,086 11.1% Economic Development 3,780 5,137 20,501 (1,357) -26.4% Central Services & Other (note 1) 10,511 20,716 19,742 (10,205) -49.3% TOTAL 779,186 781,213 842,666 (2,027) -0.3% Note: (1) "Other" includes 100% Port legacy projects in the North Harbor and Storm Water Utility Small Capital projects. PORTWIDE INVESTMENT PORTFOLIO During the fourth quarter of 2024, the investment portfolio earned 3.82% versus the benchmark's (the Bank of America Merrill Lynch 1-3 Year US Treasury & Agency Index) of 4.26%. Over the last twelve months, the portfolio and the benchmark have earned 3.80% and 4.37%, respectively. Since the Port became its own Treasurer in 2002, the life-to-date earnings of the Port's portfolio and the benchmark are 2.42% and 2.00%, respectively. 8 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 II. AVIATION DIVISION FINANCIAL SUMMARY Actual vs. Budget Variance Incr/(Decr) Change from 2023 2022 2023 2024 2024 Actual Actual Actual Budget Aeronautical Revenues Non-Aeronautical Revenues Total Ope rating Revenues 402,540 256,613 659,153 479,697 326,592 806,289 517,683 348,212 865,896 520,600 332,713 853,313 (2,917) 15,499 12,582 -0.6% 4.7% 1.5% 37,986 21,620 59,606 7.9% 6.6% 7.4% Total Ope rating Expenses w/o Pension True-Up 394,990 (12,286) 382,704 276,449 469,263 (23,572) 445,691 360,598 543,627 (18,577) 525,050 340,846 495,724 495,724 357,589 (47,903) 18,577 (29,325) (16,743) -9.7% DRS Pension True-Up Expense Total Ope rating Expenses w/ Pension True-Up Net Operating Income 74,365 4,994 79,359 (19,753) 15.8% -21.2% 17.8% -5.5% CPE Non-Ae ro NOI ($ in 000s) Enplaned passengers (in 000s) 16.09 135,483 22,966 17.52 189,063 25,371 18.14 187,548 26,265 18.31 179,075 26,457 (0.17) 8,473 (192) -0.9% 4.7% -0.7% 0.62 (1,516) 893 - 3.5% -0.8% 3.5% Capital Expenditures (in 000s) 311,631 444,072 683,833 682,384 (1,449) -0.2% 239,761 54.0% Financial Summary ($ in 000's) $ % $ % Operating Revenue -5.9% -4.7% 2024 Actuals vs. 2024 Budget Net Operating Income (NOI) including Pension True-up impact, was ($16.7M) or (4.7%) lower than 2024 budget. This shortfall was driven by higher operating expenses. Key Drivers:  Aeronautical Revenues were ($2.9M) or (0.6%) below budget, primarily due to: o Significant O&M overruns, particularly in legal expenses and internal cost allocations. o These increased costs were partially offset by grants, settlements, and a pension credit, bringing the total cost recovery lower than expected for the year.  Non-Aeronautical Revenues came in $15M or 4.7% higher than budget. Growth continued across several business lines: o Parking and Rental Car revenues outperformed expectations, reflecting sustained demand and higher utilization rates. o Port-owned Clubs & Lounges and Airport Dining & Retail also exceeded budget, benefiting from strong passenger volumes and continued recovery in travel spending.  Total Operating Expenses exceeded budget by ($29M) or (5.9%), driven by: o Increased contract rates and retroactive pay for contract negotiations completed during 2024. o Higher-than-anticipated costs in Environmental Remediation Liabilities. o Increased legal service charges and policing costs, particularly related to airport operations and support services. 2024 Actuals vs. 2023 Actuals Net Operating Income for 2024 was ($19.8M) or (5.5%) lower than the prior year, including the impact of the year-end Pension True-up.  Higher Operating Revenue of $59.6M or 7.4% compared to the prior year was driven by increased revenue from both Aeronautical and Non-Aeronautical sources.  Higher Operating Expenses, including the Pension True-up impact, of $79.4M or 17.8% compared to the prior year. This increase was primarily driven by higher Payroll, Outside Services, and Charges from Other Divisions. The impact of DRS Pension True-Up was lower in 2024 by ($5M) compared to 2023. 9 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 A. BUSINESS EVENTS  Passenger levels exceeded pre-pandemic volume for the first time since 2019 by 1.6%, from 51.8M to 52.6M.  New international airlines services at SEA: o Delta Air Line's service to Taipei, Taiwan o Lufthansa's service to Munich, Germany o Hainan Airlines' service to Chongqing, China and Taipei, Taiwan o Alaska Airlines' service to Toronto, Canada and Liberia, Costa Rica o Philippine Airlines' service to Manila, Philippines  Reserved Parking launched at SEA B. KEY PERFORMANCE METRICS 2022 2023 2024 % Change from 2023 Total Passengers (000's) Domestic International Total 41,582 4,382 45,964 45,090 5,796 50,885 46,052 6,589 52,641 2.1% 13.7% 3.4% Operations 401,351 422,497 434,321 2.8% Landed Weight (In Millions of lbs.) Cargo All other Total 2,745 26,333 29,079 2,748 29,317 32,064 2,774 30,032 32,806 1.0% 2.4% 2.3% Cargo - Metric Tons Domestic freight International & Mail freight Total 335,514 120,777 456,291 305,141 111,986 417,127 345,181 114,882 460,063 13.1% 2.6% 10.3% 10 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 Key Performance Measures 2022 2023 2024 2024 Actual Actual Actual Budget Actual vs. Budget Variance Incr/(Decr) Change from 2023 $ % $ % (0.17) 8,473 -0.9% 4.7% 0.62 (1,516) 3.5% -0.8% Key Performance Metrics Cost per Enplanement (CPE) Non-Aeronautical NOI (in 000's) 16.09 135,483 17.52 189,063 18.14 18.31 187,548 179,075 17.20 11.17 193 2.64 457 18.60 12.87 166 2.02 507 20.70 13.26 157 1.90 517 18.74 12.58 136 1.88 517 (1.96) 0.68 (22) 0.02 0 -10.5% 5.4% -16.1% 1.1% 0.0% 2.10 0.39 (9) (0.12) 10 11.3% 3.0% -5.3% -5.9% 2.0% 22,966 45,964 25,371 50,885 26,265 52,641 26,457 52,914 (192) (274) -0.7% -0.5% 893 1,755 3.5% 3.4% Other Performance Metrics O&M Cost per Enplanement Non-Aero Revenue per Enplanement Debt per Enplanement (in $) Debt Service Coverage Days cash on hand (17 months = 517 days) Activity (in 000's) Enplanements Total Passengers Key Performance Metrics 2024 Actuals vs. 2024 Budget  Cost per Enplanement (CPE) was $18.14 or 0.9% lower than budgeted CPE of $18.31.  Non-Aeronautical NOI was $8.5M or 4.7% higher than budget due to strong performance in Parking and Rental Car, as well as significant growth in Port-owned Clubs.  Total enplanements and passengers were both lower than budgeted by (192) and (274), respectively. 2024 Actuals vs. 2023 Actuals  In 2024, SEA experienced an increase in both enplanements and total passengers compared to 2023. Cost per Enplanement (CPE) and O&M Cost per Enplanement also rose by $0.62 and $2.1 respectively.  Non-Aeronautical NOI saw a decrease of ($1.5M) or (0.8%) while non-Aeronautical revenue per enplanement increased by $0.39 or 3%.  Debt per enplanements decreased by ($9) or (5.3%) and slightly improve days cash on hand to 517 days for 2024 from 507 days for 2023.  Total enplanements and passengers were both higher for 2024 by 893 and 1,755 respectively. 11 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 C. OPERATING RESULTS Division Summary - YTD Actuals 2022 2023 2024 2024 Actual vs. Budget Variance Actual Actual Actual Budget $ 168,389 75,700 22,880 15,141 282,110 193,130 87,364 23,285 17,655 321,434 220,728 103,263 25,543 21,440 370,975 210,530 (10,198) 126,888 23,625 23,938 (1,606) (9,402) (30,842) 351,954 (19,021) Total Exceptions (1,274) 2,356 1,081 13,017 480 13,497 2,600 553 3,153 Total Airport Expenses 283,191 334,931 374,128 352,111 (22,017) -6.3% 39,197 11.7% Maritime/Economic Development/Other 80,452 27,660 3,687 95,740 33,750 4,840 124,120 39,388 5,992 103,294 (20,826) 34,019 (5,369) 6,301 309 -20.2% 28,379 -15.8% 5,637 4.9% 1,151 29.6% 16.7% 23.8% Total Charges from Other Divisions 111,799 134,331 169,499 143,614 (25,886) -18.0% 35,168 26.2% Total Operating Expenses w/o Pension True-Up 394,990 469,263 543,627 495,724 (47,903) (12,286) (23,572) (18,577) - 18,577 382,704 445,691 525,050 495,724 (29,325) -9.7% 74,365 4,994 -5.9% 79,359 15.8% -21.2% 17.8% Total Airport Expense Summary ($ in 000's) % Incr/(Decr) Change from 2023 $ % Operating Expenses Payroll Outside Services Utilities Other Expenses Total Airport Direct Charges Environmental Remediation Liability Capital to Expense Corporate Police DRS Pension True-up Exp Total Operating Expenses w/ Pension True-Up 157 157 -4.8% 27,598 18.6% 15,899 -6.7% 2,258 328.0% 3,785 -5.4% 49,540 14.3% 18.2% 9.7% 21.4% 15.4% (2,443) -1556.1% (11,059) -85.0% (553) (172) -35.8% (2,996) -1908.5% (11,231) -83.2% Operating Expenses - 2024 Actuals vs. 2024 Budget Full year 2024 Total Operating expenses was $525M (including the $18.6M pension true-up), exceeding the budgeted amount of $496M by $29M or 5.9%. Before considering the pension true-up, the Total Operating expenses were $544M, $48M or 9.7% higher than the budget. The variance was driven by the following key areas:  Payroll: Actual payroll costs totaled $221M, exceeding the budget by $10M (4.8%). This variance is primarily due to higher wages and benefit costs, largely driven by new represented agreements that resulted in higherthan-expected retroactive increases. Additional contributing factors include increased non-exempt salaries and benefits, as well as higher wages and benefits in the Maintenance and Fire departments.  Non-Payroll: Non-payroll costs exceeded the budget by $12M, primarily due to an unbudgeted legal settlement and increased Environmental Remediation liability costs in support of capital projects. Operating Expenses - 2024 Actuals vs. 2023 Actuals The Operating expenses increased by $74M or 15.8% compared to 2023 primarily driven by higher Payroll, Outside Services, and Charges from Central Services. 12 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 Aeronautical Business Unit Summary 2022 2023 2024 2024 Actual vs. Budget Variance Incr/(Decr) Change from 2023 Actual Actual Actual Budget $ $ Total Rate Base Revenues 118,240 17,211 220,399 29,347 385,197 142,797 26,118 251,892 41,214 462,020 169,606 32,086 278,228 14,841 494,761 153,782 31,816 274,654 41,326 501,578 15,824 270 3,573 (26,485) (6,817) 10.3% 0.8% 1.3% -64.1% -1.4% 26,810 5,968 26,336 (26,373) 32,741 18.8% 22.8% 10.5% -64.0% 7.1% Airfield Commercial Area Subtotal before Revenue Sharing 17,343 402,541 17,677 479,697 22,922 517,683 19,022 520,600 3,900 (2,917) 20.5% -0.6% 5,245 37,986 29.7% 7.9% Total Aeronautical Revenues 402,541 479,697 517,683 520,600 (2,917) -0.6% 37,986 7.9% Total Aeronautical Expenses 261,574 308,162 364,385 342,086 (22,299) -6.5% 56,223 18.2% Aeronautical NOI 140,967 171,535 153,298 178,514 (25,216) -14.1% (18,237) -10.6% Debt Service (80,554) 60,413 (144,395) 27,140 (157,518) (4,220) (154,613) 23,902 (2,905) (28,121) 1.9% -117.7% (13,122) (31,360) 9.1% -115.5% Aeronautical NOI ($ in 000's) % % Rate Base Revenues Airfield Movement Area Airfield Apron Area Terminal Rents Federal Inspection Services (FIS) Net Cash Flow Aeronautical - 2024 Actuals vs. 2024 Budget  Net Operating Income was $25.2M (14.1%) lower than budget driven by higher operating expenses from legal issues and higher cost allocations. Aeronautical - 2024 Actuals vs. 2023 Actuals  Net Operating Income was $18.2M (10.6%) lower than 2023, primarily because expenses increased at a higher rate than revenue. Revenue growth was lower in 2024 due to large offsetting grants/settlements, which impacted the reported figures despite underlying trends being typically comparable with Aero Cost Recovery. Slower passenger activity in 2024 also contributed to the reduced net operating income. Airline Rate Base Cost Drivers Impact on Aero Revenues Budget vs Actual $ % 2024 Actual 2024 Budget O&M Debt Service Before Offsets Debt Service PFC Offset Net Debt Service Amortization Space Vacancy TSA Operating Grant and Other Rate Base Revenues Commercial area 353,595 226,565 (91,643) 134,922 36,935 (2,041) (28,676) 494,734 22,922 331,860 225,815 (91,493) 134,322 36,873 (719) (758) 501,578 19,022 21,735 750 (150) 600 62 (1,322) (27,918) (6,844) 3,900 6.5% 0.3% 0.2% 0.4% 0.2% 183.9% 3681.8% -1% 21% Total Aero Revenues 517,657 520,600 (2,943) -1% $ in 000's (1) (1) O&M, Debt Service Gross, and Amortization do not include commercial area costs or the international incentive expenses 13 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 2024 Actuals vs. 2024 Budget  Rate Based Revenue is $6.8M lower than budget based on overall cost increases offset by grants and other settlement reimbursements: o O&M - $21.7M higher primarily due to higher Legal Costs. Significant unbudgeted items included TSA Exit Lane Staffing and increases in Represented Payroll with retroactive contract negotiations. Additional cost increases were driven higher allocations of costs across the board including law enforcement support. These increases were partially offset by Aero share of year-end Pension Credit. o Net Debt Service - $0.6M higher due to very minimal changes. o TSA Operating Grant and Other - $27.9M higher reflecting additional grants and $28M IAF Settlement Reimbursement. Non-Aero Business Unit Summary Non-Aeronautical NOI Actual vs. Budget Variance Incr/(Decr) Change from 2023 2022 2023 2024 2024 Actual Actual Actual Budget Total Non-Aeronautical Revenues 88,899 56,473 20,804 36,581 8,688 45,168 256,613 110,990 63,460 24,878 65,952 11,710 49,602 326,592 116,626 66,271 23,946 73,703 16,709 50,957 348,212 111,036 61,599 25,333 71,332 12,024 51,389 332,713 5,590 5.0% 4,672 7.6% (1,387) -5.5% 2,372 3.3% 4,686 39.0% (432) -0.8% 15,499 4.7% 5,637 2,810 (932) 7,751 5,000 1,355 21,620 5.1% 4.4% -3.7% 11.8% 42.7% 2.7% 6.6% Total Non-Aeronautical Expenses 121,130 137,529 160,665 153,639 7,026 4.6% 23,136 16.8% 135,483 (4,338) 131,145 (33,065) 98,079 189,063 (7,686) 181,377 (27,096) 154,281 187,548 (10,174) 177,373 (43,887) 133,486 179,075 (7,385) 171,689 (44,482) 127,207 8,473 4.7% (2,789) 37.8% 5,684 3.3% 595 -1.3% 6,279 4.9% (1,516) (2,488) (4,004) (16,791) (20,795) -0.8% 32.4% -2.2% 62.0% -13.5% ($ in 000's) $ % $ % Non-Aeronautical Revenues Public Parking Rental Cars Ground Transportation Airport Dining & Retail Clubs and Lounges Other 1 Non-Aeronautical NOI Less: CFC Surplus Adjusted Non-Aeronautical NOI Debt Service Net Cash Flow (1) Includes Federal Relief for Concessions Non-Aeronautical Revenue - 2024 Actuals vs. 2024 Budget Full year 2024 Non-Aero Revenue was $15.5M (4.7%) favorable to budget:  Public Parking - $5.6M (5.0%) favorable to budget due to continued strong demand, including robust utilization of the parking reservation program.  Rental Car - $4.7M (7.6%) favorable to budget resulting from higher percentage of O&D passengers renting cars, continued higher than historical average rental costs, and slightly longer rental durations. These factors had favorable impact on both Rental Car concession revenue and CFC revenue.  Airport Dining & Retail - $2.4M (3.3%) favorable to budget due to steady growth across ADR ($2.0M), as well as strong growth in advertising revenue, partially offset by the delayed implementation of expanded Janitorial services revenue ($1.0M, note this item has a NOI neutral impact).  Clubs & Lounges revenue grew significantly in 2024 due to expanded hours in the common use lounges to service new international air service routes and accommodate more flying passengers.  Ground Transportation ended the year $1.4M below the budget primarily due to reduced trip fees for TNC operators ($1.0M) due to carbon reduction targets achieved. TNC operators earned deeper discounts on Dropoff Fees for increasing the ratio of electric vehicles in their fleet. Taxi revenue was also lower than budget ($0.3M) due to challenges tracking all taxi trip activity during the cyberattack recovery period in late-2024. 14 II. AVIATION DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 Non-Aeronautical Revenue - 2024 Actuals vs. 2023 Actuals  Non-Aeronautical Revenue grew by $21.6M (6.6%) compared to prior year primarily due to the same factors explained above in the 2024 favorable performance compared to budget. D. CAPITAL RESULTS Capital Variance 2024 2024 2024 Actual 172,720 Budget 136,612 POF 106,366 $ 36,108 Checked Bag Recap/Optimization (2) 50,631 69,654 111,869 (19,023) -27.3% Widen Arrivals Roadway (3) 34,171 17,233 15,539 16,938 98.3% International Arrivals Fac-IAF (4) 18,052 7,281 4,809 10,771 147.9% MT Low Voltage Sys Upgrade (5) 36,379 25,860 26,000 10,519 40.7% C concourse Expansion (6) 75,135 85,192 109,662 (10,057) -11.8% 28,736 20,899 12,894 ASL Replacement (8) 4,770 11,397 - (6,627) -58.1% Parking Garage Elevators Moder (9) 1,793 6,596 4,775 (4,803) -72.8% Concourse A Lounge Expansion (10) All Other 39,386 43,500 47,748 (4,114) 222,060 258,160 419,857 (36,100) -14.0% Subtotal CIP Cashflow Mgmt Reserve 683,833 - 682,384 - 859,518 (141,920) 1,449 - 0.2% Total Spending 683,833 682,384 717,598 1,449 0.2% $ in 000's SEA Gateway (1) Airline Realignment (7) 1. Budget vs. Actual 7,837 % 26.4% 37.5% -9.5% Work was completed on schedule with minor scope additions. The Program was able to tighten up the typical 60 to 90 days lag between completion of work and the reimbursement submittal to allow approval of one more reimbursement request than originally forecast before the end of 2024. 2. Phase 2 Savings to Construction Contract Contingency wasn't assumed in the 2024 baseline; Phase 3 delays in Construction Start. 3. Contractor's updated schedule resulted in higher 2024 costs than forecasted. 4. Unplanned $14M for Claims Settlement & Legal costs. It was slightly offset by $3.3M for Delayed Const work & Soft Cost Underruns. 5. Contractor re-sequenced work and increased crew sizes accelerating the 2024 cashflow basis to $2.8M/Mo. 6. 2024 actual costs were lower than budget because Structural Demolition and Utility Relocation work production was slower than planned. Structural Steel erection re-sequencing is expected to mitigate some of the delay. 7. Delayed spending in previous months was realized in Q4 when the GCCM production and associated invoicing increased. 8. Due to uncertainties at the start of this hot status project, high margin was included in the ROM estimate. 9. Project progressed slower than expected, working to accelerate and rearrange the work. 10. Const. TRA reimbursement submittals required additional review time. Due to the substantial backlog of outstanding change orders, the processing time to review the change order documentation and standard request for reimbursements has created a processing and reimbursement delay. 15 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 III. MARITIME DIVISION FINANCIAL SUMMARY (Excludes Pension Adjustments) 2022 Actual 2023 Actual 2024 Actual 2024 Budget Total Operating Revenues 71,534 82,410 89,163 86,132 3,031 4% 6,753 8% Total Operating Expenses 59,556 70,286 76,394 72,589 3,805 5% 6,108 8% Net Operating Income 11,978 12,124 12,769 13,543 (774) -6% 645 5% DRS Pension True-up Exp (2,396) (3,649) (2,985) 14,374 15,773 15,754 13,543 2,211 16% (19) 0% $ in 000's Total Operating Income w/o Pension True-up Actual vs. Budget Variance Change from 2023 Incr (Decr) 2024 Actuals vs. 2024 Budget  Operating Revenues $3M higher than budget primarily from higher cruise occupancy and grain volumes.  Operating Expenses $3M higher than budget from higher payroll expenses and unplanned legal expenses.  Net Operating Income $775K below budget.  Capital Spending of $81M or 111% of $73M budget. 2024 Actuals vs. 2023 Actuals  Operating Revenues $6.8M higher than 2023 with from higher cruise occupancy, grain volumes, commercial moorage, and first full year impact of T106 ground lease.  Operating Expenses $6.1M higher than 2023 driven primarily by increases in payroll expenses for represented and non-represented staff, higher equipment expenses, and for unplanned legal expenses.  Net Operating Income $645K higher than 2023 actual. Net Operating Income before Depreciation by Business $ in 000's Ship Canal Fishing & Operations Elliott Bay Fishing & Commercial Operations Recreational Boating Cruise Grain Maritime Portfolio Habitat All Other Total Maritime 2023 2024 2024 Actual (3,771) (2,827) (507) 25,601 1,235 (5,408) (1,057) (1,143) 12,124 Actual (3,768) (915) (521) 20,657 3,090 (3,623) (1,221) (932) 12,769 Budget (4,321) (1,692) 628 19,190 3,149 (2,810) (1,313) 712 13,543 16 Actual vs. Budget Change from 2023 Variance $ % $ % 554 13% 4 0% 777 46% 1,913 68% (1,149) -183% (15) -3% 1,467 8% (4,944) -19% (59) -2% 1,855 150% (813) -29% 1,785 33% 92 7% (164) -16% (1,643) -231% 212 19% (774) -6% 645 5% III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 A. KEY PERFORMANCE METRICS Cruise Passengers in 000's 500 400 2023 Actual 300 2024 Budget 200 2024 Actual 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Grain Volumes in 000's 700 600 2023 Actual 500 2024 Budget 400 300 2024 Actual 200 100 0 Jan Feb Mar Apr May Jun Jul Aug 17 Sep Oct Nov Dec III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 B. OPERATING RESULTS $ in 000's Ship Canal Fishing & Operations Elliott Bay Fishing & Commercial Operations Recreational Boating Cruise Grain Maritime Portfolio Management Other Total Revenue Expenses Maritime (Excl. Maint) Economic Development Total Direct Maintenance Expenses Envir Services & Planning Seaport Finance and Cost Recovery Seaport Project Management Total Support Services IT Police Expenses External Relations Other Central Services Aviation Division / Other Total Central Services / Other Total Expense before Pension Adjustment Pension Adjustment Total Expense NOI excluding Pension Adjustment NOI Before Depreciation Depreciation NOI After Depreciation Excluding Pension Adjustment 2022 Actual 2023 Actual 4,592 5,975 13,978 30,469 5,792 10,550 179 71,534 5,076 6,564 15,505 41,726 3,356 10,263 (80) 82,410 19,984 5,603 25,586 12,829 750 912 882 15,373 2,961 3,854 1,483 9,931 366 18,597 59,556 (2,396) 57,160 11,978 14,375 17,980 (6,002) 24,423 4,855 29,278 15,424 1,289 1,072 1,654 19,439 3,375 4,803 1,663 7,751 329 17,920 70,286 (3,649) 66,637 12,124 15,773 18,300 (6,176) 2024 Actual 2024 Budget 5,169 6,602 16,555 43,145 5,920 11,762 10 89,163 Actual vs. Budget Variance $ % 4,984 185 4% 5,731 871 15% 16,468 87 1% 41,057 2,088 5% 5,191 729 14% 12,697 (935) -7% 4 6 165% 86,132 3,031 4% Change from 2023 $ % 93 2% 39 1% 1,050 6% 1,419 3% 2,564 43% 1,499 13% 90 941% 6,753 8% 23,678 5,206 28,884 16,756 1,756 1,514 2,328 22,353 3,787 5,258 2,009 10,817 302 22,172 76,394 (2,985) 73,409 12,769 15,754 19,465 (6,696) 24,640 963 6,326 1,120 30,966 2,082 14,983 (1,772) 1,718 (37) 1,653 139 3,117 788 21,471 (882) 4,128 341 4,929 (328) 2,158 149 8,633 (2,184) 304 2 20,152 (2,020) 72,589 (3,805) 0 72,589 (820) 13,543 (774) 13,543 (2,212) 17,531 (1,934) (3,988) (2,707) 4% 18% 7% -12% -2% 8% 25% -4% 8% -7% 7% -25% 1% -10% -5% (746) 352 (394) 1,332 467 442 674 2,915 412 455 346 3,066 (28) 4,251 6,108 -3% 7% -1% 8% 27% 29% 29% 13% 11% 9% 17% 28% -9% 19% 8% -1% -6% -16% -11% -68% 6,772 645 (19) 1,165 (520) 9% 5% 0% 6% -8% 2024 Actuals vs. 2024 Budget  Operating Revenues were $3,031K higher than budget driven by: o Ship Canal over $185K from higher monthly moorage occupancy and utility sales. o Elliott Bay Fishing over $871K due to new license agreements and longer than expected moorage of fishing vessels. o Recreational Boating over $87K from stronger than expected demand for moorage. o Cruise $2,088K over from higher than expected occupancies and early season billing at pre-agreement tariff rates. o Grain $729K over from higher volumes of soybean exports. o Maritime Portfolio Management $935K lower due to environmental remediation credit related to T106 ground lease.  Operating Expenses were $3,805K lower than budget: o Direct Expenses were $2,082K lower than the budget  Elliot Bay Fishing and Commercial $325K lower from bad debt recovery and utilities.  Recreational Boating $26K lower from lower salaries & benefits expenses due to fewer employee turnover, but partially offset by utilities over the budget  Cruise $163K over due to higher outside services for P66 construction traffic mitigation expenses.  Maritime Security $250K over budget, as T-46 and FT requested additional security services.  Maritime Marketing $283K below budget due to lower advertising, promotional, and outside services. 18 III. MARITIME DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24  Maritime Portfolio Management $122K below budget from lower utilities and unspent outside services (TI/Broker Fees).  Division Administration is under budget by $239K from open positions and unspent budget for event and promotional expenses.  Capital to expense for cancelled projects resulted in unbudgeted expenses of $264K. o Total Support Services/Maintenance were $1.6M over budget primarily due to compensation project/retro pay and under allocation of staff costs to Maritime. Higher than expected material prices. o Total Central Services / Other were $2,020K over budget.  Net Operating Income (excluding depreciation and DRS Pension Adjustment) was $774K lower than budget. 2024 Actuals vs. 2023 Actuals  Operating Revenues were $6.8M higher than 2023 due to increase in grain volumes, the first full-year impact of T106 ground lease, and moorage rate increase.  Operating Expenses (before DRS Pension Adjustment) were $6,108K higher than 2023 actual driven primarily by payroll increases and unplanned legal expenses  Net Operating Income (before depreciation and DRS Pension Adjustment) was $645K higher than 2023 actual. C. CAPITAL RESULTS 2024 Actual $ in 000's P66 Shore Power T91 Berth 6 & 8 Redev FT Maritime Innovation Center P66 Fender Replacement MIC Electrical Replacements T91 New Cruise Gangway Sustainable Eval Framework Res HIM Dock-E Improvements MD Small Projects MD Fleet All Other Projects Subtotal CIP Cashflow Mgt - MD Total Maritime % of Capital Budget 2024 2024 POF Budget vs Forecast Budget $ % 23,874 25,085 27,752 (1,211) -5% 22,682 21,931 19,223 751 3% 9,227 7,384 14,789 1,843 25% 3,730 2,800 2,382 930 33% 1,931 2,203 411 (272) -12% 2,342 2,090 3,040 252 12% 0 2,000 2,000 (2,000) -100% 3,050 1,920 2,350 1,130 59% 1,358 2,340 2,234 (982) -42% 3,399 4,038 4,503 (639) -16% 9,469 15,449 30,341 (5,980) -39% 81,062 87,240 109,025 (6,178) -7% 0 (14,264) (24,200) 14,264 -100.0% 81,062 72,976 84,825 8,086 11% 111% 100% Note: POF (Plan of Finance) is the total estimated during the budget process. Comments on Key Projects with Significant Variances  FT Innovation Center - Additional workflow analysis through Forma resulted in the preorder of equipment that was originally planned to be purchased later.  HIM Dock-E Improvements - The contractor performing the dock fabrication finished sooner than originally projected.  All other projects - MD Video Camera Project ($1.3M) delayed due to cyber incident. 19 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL SUMMARY 2022 Actual 2023 Actual 2024 Actual 2024 Budget Total Operating Revenues 17,999 17,215 17,506 21,542 (4,036) -19% 291 2% Total Operating Expenses 23,571 25,494 26,777 30,669 (3,892) -13% 1,283 5% Net Operating Income (5,572) (8,279) (9,271) (9,127) (144) -2% (992) -11% (9,127) 837 -9% (1,178) -14% $ in 000's DRS Pension True-up Exp Total Operating Income w/o Pension True-up (629) (1,168) (981) (4,942) (7,111) (8,290) Actual vs. Budget Variance Change from 2023 Incr (Decr) 2024 Actual vs. 2024 Budget  Operating Revenues $4M unfavorable to budget due to lower volumes at the Conference & Event Center.  Operating Expenses $3.9M below budget due to variable cost impact of lower Conference Center volumes and unspent Outside Services expenses.  Net Operating Income $144K below budget.  Capital Spending 74% of $5.1M budget. 2024 Actual vs. 2023 Actuals  Operating Revenues $291K higher than 2023 with increases in Conference & Event Center.  Operating Expenses $1.3M higher than 2023 due to payroll increases and Conference & Event Center volumes and change in the EDD Grants from 1yr to 2yr cycle.  Net Operating Income $1.18M lower than 2023 actual. Net Operating Income before Depreciation by Business $ in 000's Portfolio Management Conference & Event Centers Tourism Small Business EDD Grants Env Grants/Remed Liab Total Econ Dev 2023 2024 2024 Actual (2,069) (3,706) (1,026) 0 (1,491) (333) (8,625) Actual (3,566) (3,589) (1,082) 0 (964) (424) (9,626) Budget (3,613) (2,430) (1,606) (50) (1,505) 78 (9,127) 20 Actual vs. Budget Change from 2023 Variance $ % $ % 46 1% (1,498) -72% (1,159) -48% 117 3% 524 33% (56) -5% 50 0 541 36% 527 35% (501) 645% (91) -27% (499) -5% (1,001) -12% IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 A. OPERATING RESULTS 2022 2023 2024 2024 $ in 000's Revenue Conf & Event Centers Total Revenue Expenses Portfolio Management Conf & Event Centers P69 Facilities Expenses RE Dev & Planning EconDev Expenses Other Maintenance Expenses Maritime Expenses (Excl Maint) Total EDD & Maritime Expenses Diversity in Contracting Tourism EDD Grants Total EDD Initiatives Environmental & Sustainability Police Expenses Other Central Services Aviation Division Total Central Services & Aviation Actual 8,886 8,914 17,799 Actual 10,477 6,738 17,215 Actual 10,016 7,490 17,506 Budget 10,386 11,156 21,542 Actual vs. Budget Variance $ % (370) -4% (3,666) -33% (4,036) -19% 3,653 6,563 230 299 1,058 3,836 1,223 16,863 186 1,737 105 2,028 30 240 4,893 146 5,309 3,713 6,632 254 340 1,734 3,498 1,501 17,672 268 1,540 1,491 3,300 53 288 5,207 141 5,689 3,954 7,150 237 235 1,488 3,532 1,571 18,168 253 1,738 964 2,955 72 333 6,099 130 6,635 3,917 9,602 225 249 1,058 4,024 1,894 20,971 250 1,875 1,505 3,630 108 289 5,539 132 6,068 (37) 2,452 (12) 14 (430) 492 323 2,803 (3) 137 541 675 36 (44) (560) 2 (567) Total Expense before Pension Adjustment Pension Adjustment Total Expense with Pension Adjustment NOI Before Depreciation Depreciation 24,200 (629) 23,571 (5,772) 3,954 26,661 (1,168) 25,494 (8,279) 4,132 27,758 (981) 26,777 (9,271) 4,373 30,669 0 30,669 (9,127) 4,028 NOI After Depreciation (9,725) (12,411) (13,644) (13,154) Change from 2023 $ (461) 752 291 % -1% 26% -5% 6% -41% 12% 17% 13% -1% 7% 36% 19% 33% -15% -10% 1% -9% 242 518 (17) (105) (247) 34 70 496 (15) 197 (527) (345) 19 45 892 (11) 945 7% 8% -7% -31% -14% 1% 5% 3% -6% 13% -35% -10% 36% 16% 17% -8% 17% 2,911 981 3,892 (144) (346) 9% NA 13% -2% -9% 1,096 187 1,283 (992) 241 4% 16% 5% -12% 6% (490) -4% (1,233) -10% -4% 11% 2% 2024 Actuals vs. 2024 Budget  Operating Revenues were $4M unfavorable to budget primarily due to lower volumes than budgeted at Conference & Event Center.  Operating Expenses before Pension Adjustment were $3M below budget: o Portfolio Management $37K lower from lower Salary and Benefits due to unfilled position. o Conference and Event Center $2.4M lower from lower activity. o Economic Dev. Other over budget $430K from budgeted Levy grants (Community Business Connector) miscoded, should have been charged to Tax Levy cost center. o Marine Maintenance $492K lower primarily due to Maintenance Materials and Labor charges due to lower activity. o Maritime Expenses (Excl Maintenance) $373K lower due to timing of project spend primarily Small Works Construction Services and Contract Watchmen/Dispatchers. o EDD Initiatives $807K below budget due to decrease in Tourism and Marketing support contracts caused by adjustments in grant cycle from two year to one year to align with partner's budget cycles. Small Business underspent budget in outside services and budget for Community Development Fund Training. o All other expenses net to $2K under budget.  Net Operating Income was $490K under to budget. 2024 Actuals vs. 2023 Actuals  Operating Revenues were $291K higher than 2023 actual from fewer Conference & Event Centers event cancellations, and leases.  Operating Expenses before Pension Adjustment were $1.1M higher than 2023 actual: 21 IV. ECONOMIC DEVELOPMENT DIVISION FINANCIAL & PERFORMANCE REPORT 12/31/24 Portfolio management $242K higher due to higher Outside Services and bad debt recovery in 2023. Conference and Event Centers $518K higher than 2023 due to variable costs associated with higher Conference and Event Center volumes. o Econ Division other $247K lower due to adjustments in grant cycles. o Central services up $1,000K from increased payroll  Net Operating Income was $1.23M lower than 2023 actual. o o B. CAPITAL RESULTS 2024 Actual $ in 000's T91 Uplands Dev Phase I P69 Underdock Utility Rplc P69 Public Video Wall WTCW Roof Replacement P69 Computer Room CRAC Repl T91 Ped Path and Bike Bridge EDD Tenant Improvements EDD Technology Projects CW Bridge Elev Modernizations P69 3rd Floor Terrace Repair All Other Projects Subtotal CIP Cashflow Mgmt Reserve Total Economic Development % of Capital Budget 2024 Budget 1,357 854 105 229 81 180 0 0 117 0 857 3,780 0 3,780 74% 2024 POF Budget vs Forecast 2,650 1,050 575 461 386 346 300 250 220 130 579 6,947 (1,810) 5,137 100% 18,409 600 725 83 529 1,350 300 250 0 775 6,204 29,225 (8,724) 20,501 $ (1,293) (196) (470) (232) (305) (166) (300) (250) (103) (130) 278 (3,167) 1,810 (1,357) % -49% -19% -82% -50% -79% -48% -100% -100% -47% -100% 48% -46% -100% -26% Note: POF (Plan of Finance) is the total estimated during the budget process. Comments on Key Projects  T91 Uplands - Procurement delay due to change in delivery methodology. Moved from design-build to Progressive design-build which protracts the design process  P69 Public Video Wall - Cost reduction using Port Engineering and PCS for construction vs. using outside contractor  P69 Computer Room CRAC - Procurement delay due to cyber disruption. 22 V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/24 V. CENTRAL SERVICES FINANCIAL SUMMARY Budget 163 120,940 40,538 19,488 180,967 - Actual vs. Budget Variance $ % 240 146.8% (31,078) -25.7% (6,153) -15.2% 2,154 11.1% (35,077) -19.4% 11,743 0.0% Change from 2023 Incr (Decr) $ % 619 -286.6% 40,650 36.5% 5,668 13.8% 3,093 21.7% 49,412 29.7% 2,736 -18.9% 180,967 (23,334) 52,148 2022 2023 2024 2024 $ in 000's Total Operating Revenues Core Central Support Services Police Engineering/PCS Total O&M Expenses w/o Pension True-up DRS Pension True-up Exp Actual 2,538 96,695 33,487 10,593 140,775 (6,666) Actual (216) 111,368 41,023 14,241 166,632 (14,479) Actual 403 152,018 46,691 17,334 216,044 (11,743) Total O&M Expenses with Pension True-up 134,110 152,153 204,300 -12.9% 34.3% 2024 Actuals vs. 2024 Budget  Operating Revenues favorable by $240K due primarily to reimbursable revenues from Police.  Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $35.1M unfavorable to budget mainly due to higher Payroll, Equipment Expense, Supplies & Stock, Insurance Expense, Promotional Expenses ($2.5M payment to Seattle Aquarium and $2.0M payment to Friends of the Waterfront), and Legal Expenses; partially offset by lower Outside Services and Travel. 2024 Actuals vs. 2023 Actuals  Operating Revenues $619K above 2023 mainly due to higher reimbursable revenues from Police.  Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $49.4M higher than 2023 mainly due to higher Payroll, Equipment Expense, Promotional Expenses, Outside Services, Property Rentals, and General Expenses in 2024; partially offset by lower Supplies & Stock. A. BUSINESS EVENTS  Executive Director presented on decarbonization during the Ports Authority Roundtable.  Received authorization for $14M the second iteration of the South King County Community Impact Fund (SKCCIF) program over the next five years.  Received the American Association of Port Authorities Lighthouse Award of Excellence in Economic Development Practices for the South King County Community Impact Fund.  Hosted a hybrid format town hall with more than 500 online participants and approximately 70 in-person attendees.  Commission presented the Port's activities and future plan at the State of the Port hosted by West Seattle Chamber State.  Celebrated the Muckleshoot Tribe's Tomanamus Community Day at the Muckleshoot Job Fair & Community Gathering.  Conducted the Data and Equity Workshop Series in partnership with We All Count with the goal to advance equity into data collection and analysis.  Participated in over 83 outreach events focused on local Port communities to promote jobs at the Port. The Port hired 58 high school interns and 54 post-secondary interns in 2024.  Conducted a total of 13 strategic planning and continuous process improvement classes.  Restored and strengthened systems impacted by cyber incident  Hosted SAMP Draft NEPA EA and Part 150 study public events  Received $3M Clean Ports EPA funding for planning  Finalized the Memorandum of Understanding to extend the 2025 Airport Parking tax offset to some bargaining units; incorporated Gender Neutral/Inclusive Title changes for Marine and Aviation Maintenance Contracts. 23 V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/24 B. KEY PERFORMANCE METRICS Century Agenda Strategic Objectives 2022 2023 2024 Responsibly Invest in the Economic Growth of the Region and all its Communities A. Job seekers placed in jobs at SEA Airport through the Employment Center 1,479 1,594 1,202 B. Number of SEA Airport tenants supported in finding employees 94 93 111 C. Employment Center training completions 573 1,012 867 D. K-12 Career Connected Learning: WFD engagement with teachers/faculty E. Community members entering employment in construction, maritime and 0 12 21 environmental sustainability F. Number of Job Openings Posted 53 70 96 355 336 285 G. Job applications received 13,990 18,830 17,753 H. Number of job interviews conducted 2,461 2,333 1,893 I. Number of new employees hired 557 495 405 J. Number of interns 104 133 123 K. Number of Veteran Fellows 6 5 3 L. Number of employees participating in Tuition Reimbursement 25 15 22 2,229 2,907 3,368 Merrill Lynch 1-3 Year US Treasury & Agency Index) C. Comply with Public Disclosure Act and respond in a timely manner 27.7% 2.62%/ 4.50% 803 27.0% 3.70%/ 4.34% 1,204 30.9% 3.82%/ 4.26% 1,339 D. Employee Development Class Attendees/Structured Learning 2,868 3,289 2,286 E. Total Recordable Incident Rate (previous Occupational Injury Rate) 3.72 4.16 3.11 F. Lost Work Day Rate (previously Days Away Severity Rate) 79.47 72.41 57.45 Become a Model for Equity, Diversity and Inclusion A. Employee participation in OEDI programming (Caucuses, Book Clubs, Town Halls, etc.) Be a Highly Effective Public Agency A. Central Services costs as a % of Total Operating Expenses B. Investment portfolio earnings versus the benchmark (the Bank of America 24 V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/24 C. OPERATING RESULTS Financial Summary Budget 163 Actual vs. Budget Variance $ % 240 146.8% Change from 2023 Incr (Decr) $ % 619 -286.6% 6,133 3,170 10,524 14,813 6,565 16,859 1,639 2,046 10,575 31,891 2,739 3,258 1,969 7,352 1,200 7,711 21,534 149,978 3,632 3,485 6,018 12,839 7,142 17,303 1,621 2,224 11,646 32,024 2,886 3,336 2,178 6,877 1,508 9,019 (4,990) 118,749 (2,502) 316 (4,506) (1,974) 577 443 (18) 178 1,071 133 147 78 210 (475) 308 1,308 (26,524) (31,230) -68.9% 9.1% -74.9% -15.4% 8.1% 2.6% -1.1% 8.0% 9.2% 0.4% 5.1% 2.3% 9.6% -6.9% 20.4% 14.5% 531.5% -26.3% 2,826 547 (150) 4,032 925 2,280 222 (74) 729 3,800 546 390 228 1,507 (195) 404 21,784 39,800 85.5% 20.8% -1.4% 37.4% 16.4% 15.6% 15.6% -3.5% 7.4% 13.5% 24.9% 13.6% 13.1% 25.8% -14.0% 5.5% -8680.8% 36.1% 41,023 46,691 40,538 (6,153) -15.2% 5,668 13.8% 129,332 151,201 196,670 159,287 (37,383) -23.5% 45,468 30.1% 6,654 3,939 10,593 8,254 5,987 14,241 10,062 7,272 17,334 11,739 7,749 19,488 1,677 477 2,154 14.3% 6.2% 11.1% 1,808 1,285 3,093 21.9% 21.5% 21.7% 795 795 1,189 1,189 1,535 1,535 2,192 2,192 656 721 29.9% 32.9% 347 347 29.2% 29.2% 56 140,775 1 166,632 499 216,044 180,967 (499) (35,077) 0.0% 0.0% -19.4% (1) 499 49,412 -100.0% 0.0% 29.7% 2022 2023 2024 2024 Actual 2,538 Actual (216) Actual 403 Executive Commission Legal External Relations Equity Diversity and Inclusion Human Resources Labor Relations Internal Audit Accounting & Financial Reporting Services Information & Communication Technology Information Security Finance & Budget Business Intelligence Risk Services Office of Strategic Initiatives Central Procurement Office Contingency Core Central Support Services 2,218 2,360 8,540 9,215 4,406 11,921 1,177 2,565 8,672 27,150 1,703 2,499 1,496 5,144 974 6,072 (268) 95,845 3,307 2,623 10,674 10,781 5,641 14,580 1,417 2,120 9,846 28,091 2,193 2,868 1,740 5,845 1,396 7,306 (251) 110,178 Police 33,487 Total Before Cap Dev & Environment $ in 000's Total Revenues Capital Development Engineering Port Construction Services Sub-Total Environment & Sustainability Environment & Sustainability Sub-Total Industrial Development Corporation Capital to Expense TOTAL w/o DRS Pension True-up DRS Pension True-up Credit TOTAL w/ DRS Pension True-up (6,666) (14,479) (11,743) - 11,743 0.0% 2,736 -18.9% 134,110 152,153 204,300 180,967 (23,334) -12.9% 52,148 34.3% 25 V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/24 2024 Actuals vs. 2024 Budget Excluding the non-cash expense credit related to the Port's public pension plans, Operating Expenses for 2024 were $35.1M above Budget due primarily to:  Executive - unfavorable variance of ($2.5M) primarily due to higher Promotional Expenses ($2.5M).  Commission - favorable variance of $316K primarily due to lower Payroll of $292K and Outside Services of $48K  Legal - unfavorable variance of ($4.5M) due to higher Outside Services ($3.8M) and Payroll of ($417K).  External Relations - unfavorable variance of ($2.0M) primarily due to higher Promotional Expenses of ($2.1M), offset by lower Outside Services of $137K.  Equity, Diversity, and Inclusion - favorable variance of $577K primarily due to lower Outside Services of $479K, Equipment Expense of $23K, and General Expenses of $18K.  Human Resources - favorable variance of $443K primarily due to lower Payroll of $1.1M, Outside Services of $503K, and Travel & Other Employee Expenses of $220K, offset by higher General Expenses of ($1.4M).  Labor Relations - unfavorable variance of ($18K) primarily due to higher Payroll ($42K); offset by lower Travel & Other Employee Expenses of $12K.  Internal Audit - favorable variance of $178K primarily due to lower Payroll of $154K and Outside Services $20K.  Accounting and Financial Reporting Services - favorable variance of $1.1M primarily due to lower Payroll of $824K, Outside Services $285K, and Travel & Other Employee Expenses of $40K, offset by higher General Expenses of ($107K).  Information & Communication Technology -favorable variance of $133K due to lower Outside Services of $3.1M and Travel & Other Employee Expenses of $91K, offset by higher Equipment Expense ($664K), higher Payroll ($2.4M) and less charges to Capital of $2.2M.  Information Security - favorable variance of $147K primarily due to lower Outside Services of $297K, offset by higher Payroll ($141K).  Corporate Finance & Budget -favorable variance of $78K primarily due to lower Outside Services of $257K, offset by higher Payroll of ($188K).  Business Intelligence - favorable variance of $210K primarily due to lower Outside Services of $176K and Travel & Other Employee Expenses of $80K, offset by higher Payroll ($51K).  Risk Services - unfavorable variance of ($475K) due to Insurance Expense of ($513K), offset by lower Outside Services $96K.  Office of Strategic Initiative - favorable variance of $308K primarily due to lower Payroll of $205K, Travel & Other Employee Expenses of $61K, and Outside Services of $31K.  Central Procurement Office - favorable variance of $1.3M primarily due to lower Payroll of $320K, Equipment Expense $535K, and Travel & Other Employee Expenses of $91K, offset by Outside services of ($83K).  Police - unfavorable variance of ($6.2M) primarily due to higher Payroll ($3.8M), General Expenses ($2.5M), Workers Compensation of ($126K); partially offset by lower Outside Services $322K and Travel $195K.  Engineering - favorable variance of $1.7M primarily due to lower Outside Services of $860K Equipment Expense of $222K, General Expenses of $152K, and Travel & Other Employee Expenses of $129K; offset by higher Property Rentals of $177K and Payroll of (1.8M) and less charges to Capital of $2.4M.  PCS - favorable variance of $477K primarily due to lower Payroll of $1.0M, offset by higher Outside Services ($856K) and General Expenses ($76K).  Environment & Sustainability Admin - favorable variance of $656K primarily due to lower Outside Services of $543K and Payroll of $113K.  Contingency - unfavorable variance of ($26.5M) primarily due to General Expenses. 26 V. CENTRAL SERVICES FINANCIAL & PERFORMANCE REPORT 12/31/24 2024 Actuals vs. 2023 Actuals 2024 Operating Expenses (without the non-cash expense credit related to the Port's public pension plans) were $49.4M higher than 2023 actuals mainly due to:  Core Central Support Services - $40.6M higher than 2023 primarily due to: higher payroll for current employees and new positions; contractual increases; addition of new initiatives to support growing needs of the organization.  Police - $5.7M above 2023 due to: increase in wages and benefits, new positions, vacant positions in 2024, and addition of new initiatives to enhance the safety and security of the public.  Capital Development - $3.1M higher than 2023 primarily due to the addition of new positions as well as contractual increases to support the capital program. D. CAPITAL RESULTS 2024 $ in 000's Engineering Fleet Replacement Corporate Fleet Replacement Services Tech - Small Cap Infrastructure - Small Cap Enterprise Network Refresh ID Badge System Upgrade Radio Microwave Redundancy Loop Public Safety Dispatch & Police RMS Enterprise Firewall Refresh Physical Access Control System Refresh Office Wi-Fi Refresh Other (note 1) Subtotal CIP Cashflow Adjustment TOTAL 2024 Actual 643 269 1,155 799 1,741 1,068 305 567 483 10 643 1,771 9,454 9,454 2024 Plan of Budget Finance 3,716 1,890 1,189 920 1,623 1,500 1,500 1,500 2,600 2,600 2,551 2,550 2,272 1,973 950 1,720 1,550 1,460 1,250 1,100 1,565 1,000 5,052 5,916 25,818 24,129 (6,800) (6,200) 19,018 17,929 Note: (1) "Other" includes remaining ICT projects and small capital projects/acquisitions. 27 Budget Variance $ % (3,073) -82.7% (920) -77.4% (468) -28.8% (701) -46.7% (859) -33.0% (1,483) -58.1% (1,967) -86.6% (383) -40.3% (1,067) -68.8% (1,240) -99.2% (922) -58.9% (3,281) -64.9% (16,364) -63.4% 6,800 -100.0% (9,564) -50.3%