SRG · Seritage Growth Properties

Seritage Growth Properties executed its Plan of Sale in 2025, generating $230.7 million in gross proceeds from asset dispositions, which enabled $190.0 million in term loan repayments, reducing the balance to $50.0 million. Q4 sales included $10.5 million from a vacant asset, $28.5 million from an income-producing asset at 7.4% cap rate, and $131.0 million from a non-stabilized premier property. These activities contributed to a narrower Q4 net loss of $6.3 million ($0.11/share) versus $12.6 million ($0.22/share) in Q4 2024, and full-year loss of $73.1 million ($1.30/share) versus $158.4 million ($2.82/share) in 2024. Impairments totaled $18.8 million on consolidated properties and additional charges on unconsolidated entities. Cash stood at $62.3 million (including $14.2 million restricted) at year-end, declining to $59.1 million by March 31, 2026. CEO Adam Metz highlighted focus on monetizing remaining assets, pursuing financing for the July 31, 2026 term loan maturity, and exploring strategic transactions with a simplified portfolio. However, liquidity raises substantial going concern doubt, as proceeds from the $11.0 million asset under contract and existing cash insufficiently cover obligations including debt service. Ongoing litigation includes a securities class action and stayed derivative suits alleging inadequate disclosures on impairments and asset values. The Board declared a Series A preferred dividend of $0.43750 per share payable April 15, 2026. Challenging markets with high interest rates pressure remaining asset sales and distributions.