0001193125-26-224751
SEC filingSeritage’s Q1 2026 reflects continued execution of its Plan of Sale, with revenue down 55.4% and net loss widening to -$30.3M — driven by a shrinking rental base and ongoing operational cost pressures despite lower depreciation and interest expenses.
Our primary uses of cash include payment of property operating and other expenses, general and administrative expenses, debt service, and certain development expenditures — collectively referred to as “Obligations.” Obligations are projected to continue to exceed property rental income. The Company expects to fund such costs using a combination of capital sources, including cash on hand, sales of Consolidated Properties, sales of Unconsolidated Properties, and potential financing transactions.
Revenue for Q1 FY2026 was $2.0M, down 55.4% from $4.6M in Q1 FY2025. This decline is directly attributable to the reduction in the rental base resulting from active property sales under the Plan of Sale. With fewer income-generating assets remaining, revenue contraction is an expected outcome of the strategic disposition path.
Net income for Q1 FY2026 was -$30.3M, compared to -$22.2M in Q1 FY2025 — a 36.6% YoY deterioration. Diluted EPS was -$0.56, down from -$0.42, reflecting the same underlying pressure on profitability. These results underscore the persistent mismatch between recurring operating costs and declining rental inflows, even as certain expense line items trend favorably due to portfolio simplification.
Net cash used in operating activities was -$5.7M, an improvement from -$9.2M in the prior-year quarter. This improvement aligns with the reduction in depreciation and interest expense but does not signal an inflection in core operating sustainability — rather, it reflects the financial mechanics of asset monetization and balance sheet contraction. Management reiterates that funding Obligations will require continued capital recycling, not organic cash flow generation.