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    Seritage Growth Properties
    500 Fifth Avenue
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    New York, NY 10110
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    (201) 324-0014

    News Details

    Seritage Growth Properties Reports Fourth Quarter and Full Year 2024 Operating Results

    Company Release - 3/31/2025 05:01 PM ET

    Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties today reported financial and operating results for the year ended December 31, 2024.

    "This quarter we have made strides to ready more assets for sale: signing critical leases, achieving partnership approvals, securing zoning and other important milestones. As a result, we anticipate that a majority of our assets, whether fully or partially for certain assets anticipated to be sold in multiple transactions, will be in the market in 2025. These include a mix of large development sites, smaller leased properties and vacant assets, all of which have varying anticipated sales processes and closing timelines. In sum, although we have had fewer closings this quarter than previous ones, we have made significant progress towards the completion of our Plan of Sale” said Andrea Olshan, CEO & President.

    Q4 Sale Highlights:

    • Generated $50.8 million of gross proceeds from the sale of three vacant/non-income producing assets sold at $92.87 PSF eliminating $1.2 million of carry costs and generated $11.0 million of gross proceeds from monetizing two unconsolidated entity interests.
    • Subsequent to December 31, 2024, generated $29.9 million in gross proceeds from an income producing asset sold reflecting a 7.7% capitalization rate.
    • As of March 31, 2025, the Company has one asset owned by our consolidated joint venture under contract for sale subject to customary due diligence for anticipated gross proceeds of $14.0 million or $11.2 million at share.
    • The Company is currently negotiating a definitive purchase and sale agreement on one premier development asset for anticipated gross proceeds of approximately $70.0 million. The purchase and sales agreement, if executed, contemplates a long-dated closing due to the agreed upon pursuit of a master plan amendment.

    Financial Highlights:

    For the year ended December 31, 2024:

    • As of December 31, 2024, the Company had cash on hand of $97.7 million, including $12.5 million of restricted cash. As of March 28, 2025, the Company had cash on hand of $107.0 million, including $12.5 million of restricted cash.
    • During the year ended December 31, 2024, the Company invested $27.5 million in its consolidated properties and $9.3 million in its unconsolidated entities.
    • Net loss attributable to common shareholders of $(158.4) million, or ($2.82) per share.
    • Net Operating Income-cash basis at share (“NOI-cash basis at share”) of $2.6 million.
    • During the year, the Company made $120.0 million in principal repayments on the Company's term loan facility (the "Term Loan Facility"), reducing the balance of the Term Loan Facility to $240.0 million at December 31, 2024. Additionally, the Company secured an extension right on the Term Loan Facility which, if exercised, will extend the maturity date to July 31, 2026.

    Future Sales Projections

    The data below provides additional information regarding current estimated gross sales proceeds per asset in the portfolio as of March 31, 2024, excluding assets under contract or in PSA negotiation, which are described above. The assets listed below are either being marketed or are to be marketed at the appropriate time based on market conditions and, as a result, any sales thereof are anticipated to occur later in 2025 and beyond. Sales projections, including timing of sale, are based on the Company’s latest forecasts and assumptions, but the Company cautions that actual results may differ materially. In addition, see “Market Update” below and the “Risk Factors” section contained in the Company’s filings with the Securities and Exchange Commission for discussion of the risks associated with such estimated gross sale proceeds.

    Gateway Markets

    • One Multi-Tenant Asset $25 - $30 million
    • Eight Premier Assets (Dallas & San Diego are each assumed to be sold in two transactions)
      • One Asset $15 - $20 million
      • One Asset $20 - $30 million
      • Three Assets $30 - $40 million, each
      • One Asset $60 - $70 million
      • One Asset $100 - $150 million
      • One Asset $150 - $200 million

    Primary Markets

    • One Multi-Tenant Asset $25 - $30 million
    • Two Joint Venture Assets $5 - $10 million, each
    • One Joint Venture Asset under $5 million

    Secondary Markets

    • One Retail Asset $5 - $10 million
    • One Joint Venture Asset $5 - $10 million
    • One Non-Core Asset $5 - $10 million

    Portfolio

    The table below represents a summary of the Company’s properties by planned usage as of December 31, 2024 (in thousands except number of leases and acreage data):

    Planned Usage

     

    Total

     

     

    Built SF / Acreage(1)

     

    Leased SF(2) (3)

     

     

    Avg. Acreage / Site

     

    Consolidated

     

     

     

     

     

     

     

     

     

     

     

    Multi-Tenant Retail

     

     

    3

     

     

    507 sf / 63 acres

     

     

    335

     

     

     

    20.9

     

    Residential(3)

     

     

    2

     

     

    33 sf / 19 acres

     

     

    33

     

     

     

    9.5

     

    Premier

     

     

    4

     

     

    228 sf / 69 acres

     

     

    182

     

     

     

    17.2

     

    Non-Core(4)

     

     

    1

     

     

    134 sf / 15 acres

     

     

    0

     

     

     

    14.8

     

    Unconsolidated

     

     

     

     

     

     

     

     

     

     

     

    Other Entities

     

     

    4

     

     

    258 sf / 52 acres

     

     

    5

     

     

     

    13.0

     

    Premier

     

     

    3

     

     

    158 sf / 57 acres

     

     

    106

     

     

     

    19.0

     

    (1) Square footage is presented at the Company’s proportional share.
    (2) Based on signed leases at December 31, 2024.
    (3) Square footage represents built ancillary retail space whereas acreage represents both retail and residential acreage. Retail and residential are counted separately.
    (4) Represents assets the Company previously designated for sale.

    Multi-Tenant Retail

    The table below provides a summary of all Multi-Tenant Retail signed and in negotiation leases as of December 31, 2024 (in thousands except for number of leases and PSF data):

    Tenant

     

    Number of
    Leases

     

     

    Leased GLA

     

     

    % of Total
    Leasable GLA

     

     

    Gross Annual
    Base Rent
    ("ABR")

     

     

    % of Total
    ABR

     

     

    Gross Annual
    Rent PSF
    ("ABR PSF")

     

    In-place retail leases

     

     

    10

     

     

     

    335.2

     

     

     

    66.1

    %

     

    $

    8,895.0

     

     

     

    93.1

    %

     

    $

    26.54

     

    Tenants in lease negotiation

     

     

    1

     

     

     

    141.1

     

     

     

    27.9

    %

     

    $

    663.4

     

     

     

    6.9

    %

     

     

    4.70

     

    Total retail leases

     

     

    11

     

     

     

    476.3

     

     

     

    94.0

    %

     

    $

    9,558.4

     

     

     

    100.0

    %

     

    $

    20.07

     

    (1) SNO = signed not yet opened leases.

     

    During the three months ended December 31, 2024, the Company had a leasing pipeline of over 141 thousand square feet. Subsequent to year end, a lease for 141 thousand square feet was executed. The Company has 335 thousand leased square feet. The Company has total occupancy of 66.1% for its Multi-Tenant retail properties. As of December 31, 2024, there is an additional approximately 70 thousand square feet available for lease.

    Premier Mixed-Use

    As of December 31, 2024, the Company has 349 thousand in-place leased square feet (242 thousand square feet at share), 46 thousand square feet signed but not opened (46 thousand square feet at share), and 148 thousand square feet available for lease (97 thousand square feet at share).

    The table below provides a summary of all signed leases at Premier assets as of December 31, 2024, including unconsolidated entities at the Company’s proportional share (in thousands except for number of leases and PSF data):

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Tenant

    Number of
    Leases

     

     

    Leased
    GLA

     

     

    % of
    Total
    Leasable
    GLA

     

     

    Gross Annual
    Base Rent
    ("ABR")

     

     

    % of
    Total
    ABR

     

     

    Gross Annual Rent
    PSF ("ABR PSF")

     

    In-place retail leases

     

    41

     

     

     

    134.5

     

     

     

    26.4

    %

     

    $

    9,614.6

     

     

     

    57.3

    %

     

    $

    71.48

     

    In-place office leases

     

    4

     

     

     

    108.0

     

     

     

    28.0

    %

     

    $

    6,936.9

     

     

     

    41.4

    %

     

     

    63.35

     

    SNO retail leases as of September 30, 2024(1)

     

    12

     

     

     

    46.7

     

     

     

     

     

    $

    3,688.1

     

     

     

     

     

     

    78.90

     

    Opened

     

    (1

    )

     

     

    (1.1

    )

     

     

     

     

    $

    (111.1

    )

     

     

     

     

     

    101.00

     

    SNO retail leases as of December 31, 2024(1)

     

    11

     

     

     

    45.6

     

     

     

    8.3

    %

     

     

    3,577.0

     

     

     

    21.3

    %

     

     

    78.44

     

    Total diversified leases as of December 31, 2024

     

    56

     

     

     

    288.1

     

     

     

    63.7

    %

     

    $

    16,769.6

     

     

     

    100.0

    %

     

    $

    58.21

     

    (1) SNO = Signed not yet opened leases

     

     

     

     

     

     

     

     

     

     

    Aventura

    During the fourth quarter of 2024, the Company continued to advance 216 thousand square feet of office and retail leasing at the project in Aventura, FL. With 78.7% leased through December 31, 2024, the Company has 46 thousand square feet or 21.3% available for lease, of which approximately 17 thousand square feet or 8.0% is in lease negotiation.

    Financial Summary

    The table below provides a summary of the Company’s financial results for the three months and year ended December 31, 2024:

    (in thousands except per share amounts)

     

    Three Months Ended

     

     

    Year Ended

     

     

     

    December 31, 2024

     

     

    December 31, 2023

     

     

    December 31, 2024

     

     

    December 31,
    2023

     

    Net income (loss) attributable to Seritage
    common shareholders

     

    $

    (12,576

    )

     

    $

    4,739

     

     

    $

    (158,436

    )

     

    $

    (159,811

    )

    Net income (loss) per share attributable to Seritage
    common shareholders

     

     

    (0.22

    )

     

     

    0.08

     

     

     

    (2.82

    )

     

     

    (2.85

    )

    NOI-cash basis at share

     

     

    3,522

     

     

     

    1,381

     

     

     

    2,588

     

     

     

    8,600

     

    For the quarter ended December 31, 2024, NOI-cash basis at share reflects the impact of ($57) thousand NOI-cash basis at share relating to sold properties.

    As of December 31, 2024, the Company had cash on hand of $97.7 million, including $12.5 million of restricted cash. The Company expects to use these sources of liquidity, together with a combination of future sales and/or potential alternative financing arrangements, to pay its financing obligations and fund its operations and development activity. The availability of funding from sales of assets is subject to various conditions, and there can be no assurance that such transactions will be consummated. For more information on our liquidity position, including our going concern analysis, please see the notes to the consolidated financial statements included in Part II, Item 8 and in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” each in our Annual Report on Form 10-K.

    Litigation Matters

    On July 1, 2024, a purported shareholder of the Company filed a class action lawsuit in the U.S. District Court for the Southern District of New York, captioned Zhengxu He, Trustee of the He & Fang 2005 Revocable Living Trust v. Seritage Growth Properties, Case No. 1:24:CV:05007, alleging that the Company, the Company’s Chief Executive Officer, and the Company’s Chief Financial Officer violated the federal securities laws (the "Securities Action"). The complaint seeks to bring a class action on behalf of all persons and entities that purchased or otherwise acquired Company securities between July 7, 2022 and May 10, 2024. The complaint alleges that the defendants violated federal securities laws by issuing false, misleading, and/or omissive disclosures concerning the Company’s alleged lack of effective internal controls regarding the identification and review of impairment indicators for investments in real estate and the Company’s value and projected gross proceeds of certain real estate assets. The complaint seeks compensatory damages in an unspecified amount to be proven at trial, an award of reasonable costs and expenses to the plaintiff and class counsel, and such other and further relief as the court may deem just and proper. . On or around January 15, 2025, another purported shareholder of the Company filed a derivative lawsuit in the U.S. District Court for the District of Maryland, captioned Paul Sidhu v. Seritage Growth Properties, Case No. 1:25-cv-00152 (the "Sidhu Derivative Action"). On or around January 20, 2025, another purported shareholder of the Company filed a derivative lawsuit in the U.S. District Court for the District of Maryland, captioned James Wallen v. Seritage Growth Properties, Case No. 1:25-cv-00190 (the "Wallen Derivative Action" and together with the Sidhu Derivative Action, the "Derivative Actions"). The Derivative Actions allege the same or similar claimed acts and omissions underlying the Securities Action, assert breach of fiduciary duty and other claims against the Company’s Chief Executive Officer, the Company’s Chief Financial Officer, and current and former members of the Company’s Board of Trustees, and name the Company as a nominal defendant. The complaint in each of the Derivative Actions seeks compensatory damages in an unspecified amount to be proven at trial, an order directing the Company and the individual defendants to reform and improve the Company’s corporate governance and internal procedures, restitution from the individual defendants, an award of costs and expenses to the plaintiff and reasonable attorneys’ and experts’ fees, costs, and expenses, and such other and further relief as the court may deem just and proper. On February 13, 2025, the parties to the Derivative Actions filed a stipulation and proposed order seeking to consolidate the Derivative Actions and appoint lead counsel. The Company intends to vigorously defend itself against the allegations in these lawsuits.

    Dividends

    On February 29, 2024, the Company’s Board of Trustees declared a preferred stock dividend of $0.4375 per each Series A Preferred Share. The preferred dividend was paid on April 15, 2024 to holders of record on March 29, 2024.

    On May 2, 2024, the Company’s Board of Trustees declared a preferred stock dividend of $0.4375 per each Series A Preferred Share. The preferred dividend was paid on July 15, 2024 to holders of record on June 28, 2024.

    On July 31, 2024, the Company’s Board of Trustees declared a preferred stock dividend of $0.4375 per each Series A Preferred Share. The preferred dividend was paid on October 15, 2024 to holders of record on September 30, 2024.

    On October 28, 2024, the Company’s Board of Trustees declared a preferred stock dividend of $0.4375 per each Series A Preferred Share. The preferred dividend was paid on January 15, 2025 to holders of record on December 31, 2024.

    On February 26, 2025, the Company’s Board of Trustees declared a preferred stock dividend of $0.4375 per each Series A Preferred Share. The preferred dividend will be paid on April 15, 2025 to holders of record on March 31, 2025.

    Strategic Review

    At the 2022 Annual Meeting of Shareholders on October 24, 2022, Seritage shareholders approved the Company’s Plan of Sale. The strategic review process remains ongoing as the Company executes the Plan of Sale, and the Company remains open minded to pursuing value maximizing alternatives, including a potential sale of the Company. There can be no assurance regarding the success of the process.

    Appointment of New Chief Executive Officer and President

    On March 28, 2025, we announced that our Board of Trustees and Andrea L. Olshan have agreed that Ms. Olshan will step down as the Company’s Chief Executive Officer and President (“CEO”) and as a member of the Board effective as of April 11, 2025 (the “Separation Date”). Also on March 28, 2025, we announced that our Board of Trustees appointed Board Chairman Adam Metz as Interim CEO as of the Separation Date. In his role as Interim CEO, Mr. Metz will serve as the principal executive officer of the Company until his successor is duly appointed and qualified, or until his earlier termination or removal, and will receive a monthly salary of $80,000. Mr. Metz will also continue to serve as Board Chairman, and the Board has appointed Mitchell Sabshon to serve as Lead Independent Director as of the Separation Date.

    Market Update

    As the Company has previously disclosed, the Company, along with the commercial real estate market as a whole, has experienced and continues to experience challenging market conditions as a result of a variety of factors. These conditions have applied and continue to apply downward pricing pressure on all of our assets. In making decisions regarding whether and when to transact on each of the Company’s remaining assets, the Company has considered and will continue to consider various factors including, but not limited to, the breadth of the buyer universe, macroeconomic conditions, the availability and cost of financing, as well as corporate, operating and other capital expenses required to carry the asset. If these challenging market conditions persist, then we expect that they will impact the Plan of Sale proceeds from our assets and the amounts and timing of distributions to shareholders.

    Non-GAAP Financial Measures

    The Company makes references to NOI-cash basis and NOI-cash basis at share which are financial measures that include adjustments to accounting principles generally accepted in the United States (“GAAP”).

    Neither of NOI-cash basis or NOI-cash basis at share are measures that (i) represent cash flow from operations as defined by GAAP; (ii) are indicative of cash available to fund all cash flow needs, including the ability to make distributions; (iii) are alternatives to cash flow as a measure of liquidity; or (iv) should be considered alternatives to net income (which is determined in accordance with GAAP) for purposes of evaluating the Company’s operating performance. Reconciliations of these measures to the respective GAAP measures the Company deems most comparable have been provided in the tables accompanying this press release.

    Net Operating Income (Loss)-cash basis ("NOI-cash basis”) and Net Operating Income (Loss)-cash basis at share ("NOI-cash basis at share")

    NOI-cash basis is defined as income from property operations less property operating expenses, adjusted for variable items such as termination fee income, as well as non-cash items such as straight-line rent and amortization of lease intangibles. Other real estate companies may use different methodologies for calculating NOI-cash basis, and accordingly the Company’s depiction of NOI-cash basis may not be comparable to other real estate companies. The Company believes NOI-cash basis provides useful information regarding Seritage, its financial condition, and results of operations because it reflects only those income and expense items that are incurred at the property level.

    The Company also uses NOI-cash basis at share, which includes its proportional share of Unconsolidated Properties. The Company does not control any of the joint ventures constituting such properties and NOI-cash basis at share does not reflect our legal claim with respect to the economic activity of such joint ventures. We have included this adjustment because the Company believes this form of presentation offers insights into the financial performance and condition of the Company as a whole given the Company’s ownership of Unconsolidated Properties that are accounted for under GAAP using the equity method. The operating agreements of the Unconsolidated Properties generally allow each investor to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.

    The Company also considers NOI-cash basis and NOI-cash basis at share to be a helpful supplemental measure of its operating performance because it excludes from NOI variable items such as termination fee income, as well as non-cash items such as straight-line rent and amortization of lease intangibles.

    Due to the adjustments noted, NOI-cash basis and NOI-cash basis at share should only be used as an alternative measure of the Company’s financial performance.

    Forward-Looking Statements

    This document contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” "will," "approximately," or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause or contribute to such differences include, but are not limited to: declines in retail, real estate and general economic conditions; risks relating to redevelopment activities; contingencies to the commencement of rent under leases; the terms of the Company’s indebtedness and other legal requirements to which the Company is subject; failure to achieve expected occupancy and/or rent levels within the projected time frame or at all; the impact of ongoing negative operating cash flow on the Company’s ability to fund operations and ongoing development; the Company’s ability to access or obtain sufficient sources of financing to fund the Company’s liquidity needs; environmental, health, safety and land use laws and regulations; and possible acts of war, terrorist activity or other acts of violence or cybersecurity incidents. For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2024 and any subsequent Form 10-Qs. While the Company believes that its forecasts and assumptions are reasonable, the Company cautions that actual results may differ materially. The Company intends the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

    About Seritage Growth Properties

    Prior to the adoption of the Company’s Plan of Sale (defined below), Seritage was principally engaged in the ownership, development, redevelopment, management, sale and leasing of diversified retail and mixed-use properties throughout the United States. As of December 31, 2024, the Company’s portfolio consisted of interests in 17 properties comprised of approximately 1.7 million square feet of gross leasable area (“GLA”) or build-to-suit leased area and 274 acres of land. The portfolio consists of approximately 0.9 million square feet of GLA and 166 acres of land held by 10 wholly owned properties (such properties, the “Consolidated Properties”) and 0.8 million square feet of GLA and 108 acres of land held by seven unconsolidated entities (such properties, the “Unconsolidated Properties”).

    SERITAGE GROWTH PROPERTIES
    CONSOLIDATED BALANCE SHEETS
    (In thousands, except share and per share amounts)
    (Unaudited)

     

     

    December 31, 2024

     

     

    December 31, 2023

     

    ASSETS

     

     

     

     

     

     

    Investment in real estate

     

     

     

     

     

     

    Land

     

    $

    65,009

     

     

    $

    102,090

     

    Buildings and improvements

     

     

    239,978

     

     

     

    344,972

     

    Accumulated depreciation

     

     

    (39,940

    )

     

     

    (36,025

    )

     

     

     

    265,047

     

     

     

    411,037

     

    Construction in progress

     

     

    93,587

     

     

     

    135,305

     

    Net investment in real estate

     

     

    358,634

     

     

     

    546,342

     

    Real estate held for sale

     

     

    -

     

     

     

    39,332

     

    Investment in unconsolidated entities

     

     

    189,699

     

     

     

    196,437

     

    Cash and cash equivalents

     

     

    85,206

     

     

     

    134,001

     

    Restricted cash

     

     

    12,503

     

     

     

    15,699

     

    Tenant and other receivables, net

     

     

    7,894

     

     

     

    12,246

     

    Lease intangible assets, net

     

     

    1,047

     

     

     

    886

     

    Prepaid expenses, deferred expenses and other assets, net

     

     

    22,791

     

     

     

    28,921

     

    Total assets(1)

     

    $

    677,774

     

     

    $

    973,864

     

     

     

     

     

     

     

     

    LIABILITIES AND SHAREHOLDERS' EQUITY

     

     

     

     

     

     

    Liabilities

     

     

     

     

     

     

    Term loan facility

     

    $

    240,000

     

     

    $

    360,000

     

    Accounts payable, accrued expenses and other liabilities

     

     

    31,971

     

     

     

    50,700

     

    Total liabilities(1)

     

     

    271,971

     

     

     

    410,700

     

     

     

     

     

     

     

     

    Commitments and Contingencies (Note 9)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Shareholders' Equity

     

     

     

     

     

     

    Class A common shares $0.01 par value; 100,000,000 shares authorized;
    56,274,466 and 56,194,727 shares issued and outstanding
    as of December 31, 2024 and 2023, respectively

     

     

    562

     

     

     

    562

     

    Series A preferred shares $0.01 par value; 10,000,000 shares authorized;
    2,800,000 shares issued and outstanding as of December 31, 2024 and
    2023; liquidation preference of $70,000

     

     

    28

     

     

     

    28

     

    Additional paid-in capital

     

     

    1,362,644

     

     

     

    1,361,742

     

    Accumulated deficit

     

     

    (958,778

    )

     

     

    (800,342

    )

    Total shareholders' equity

     

     

    404,456

     

     

     

    561,990

     

    Non-controlling interests

     

     

    1,347

     

     

     

    1,174

     

    Total equity

     

     

    405,803

     

     

     

    563,164

     

    Total liabilities and equity

     

    $

    677,774

     

     

    $

    973,864

     

    (1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 2. The consolidated balance sheets, as of December 31, 2024, include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $3.3 million of land, $2.8 million of building and improvements, $(0.9) million of accumulated depreciation and $3.2 million of other assets included in other line items. The Company's consolidated balance sheets as of December 31, 2023, include the following amounts related to our consolidated VIEs, excluding the Operating Partnership: $3.3 million of land, $2.8 million of building and improvements, $(0.8) million of accumulated depreciation and $2.4 million of other assets included in other line items.

     

    SERITAGE GROWTH PROPERTIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (Unaudited)

     

     

    Year Ended
    December 31,

     

     

    2024

     

     

    2023

     

     

    REVENUE

     

     

     

     

     

     

     

    Rental income

     

    $

    17,055

     

     

    $

    15,060

     

     

    Management and other fee income

     

     

    567

     

     

     

    5,719

     

     

    Total revenue

     

     

    17,622

     

     

     

    20,779

     

     

    EXPENSES

     

     

     

     

     

     

     

    Property operating

     

     

    16,339

     

     

     

    21,282

     

     

    Abandoned project costs

     

     

    5,732

     

     

     

     

     

    Real estate taxes

     

     

    3,935

     

     

     

    6,128

     

     

    Depreciation and amortization

     

     

    13,118

     

     

     

    14,471

     

     

    General and administrative

     

     

    30,021

     

     

     

    45,988

     

     

    Total expenses

     

     

    69,145

     

     

     

    87,869

     

     

    Gain on sale of real estate, net

     

     

    10,678

     

     

     

    96,214

     

     

    Gain on sale of interest in unconsolidated entities

     

     

    2,042

     

     

     

    6,407

     

     

    Impairment of real estate assets

     

     

    (87,536

    )

     

     

    (107,043

    )

     

    Equity in loss of unconsolidated entities

     

     

    (3,154

    )

     

     

    (55,857

    )

     

    Interest and other income (expense), net

     

     

    2,513

     

     

     

    17,067

     

     

    Interest expense

     

     

    (24,972

    )

     

     

    (44,571

    )

     

    Loss before income taxes

     

     

    (151,952

    )

     

     

    (154,873

    )

     

    Provision for income taxes

     

     

    (1,584

    )

     

     

    (38

    )

     

    Net loss

     

     

    (153,536

    )

     

     

    (154,911

    )

     

    Preferred dividends

     

     

    (4,900

    )

     

     

    (4,900

    )

     

    Net loss attributable to Seritage common shareholders

     

    $

    (158,436

    )

     

    $

    (159,811

    )

     

     

     

     

     

     

     

     

     

    Net loss per share attributable to Seritage Class A
    common shareholders - Basic

     

    $

    (2.82

    )

     

    $

    (2.85

    )

     

    Net loss per share attributable to Seritage Class A
    common shareholders - Diluted

     

    $

    (2.82

    )

     

    $

    (2.85

    )

     

    Weighted average Class A common shares
    outstanding - Basic

     

     

    56,255

     

     

     

    56,151

     

     

    Weighted average Class A common shares
    outstanding - Diluted

     

     

    56,255

     

     

     

    56,151

     

     

    Reconciliation of Net Loss to NOI-cash basis and NOI-cash basis at share (in thousands)

     

     

    Year Ended December 31,

    NOI-cash basis and NOI-cash basis at share

     

    2024

     

     

    2023

     

     

    Net loss

     

    $

    (153,536

    )

     

    $

    (154,911

    )

     

    Management and other fee income

     

     

    (567

    )

     

     

    (5,719

    )

     

    Abandoned project costs

     

     

    5,732

     

     

     

     

     

    Depreciation and amortization

     

     

    13,118

     

     

     

    14,471

     

     

    General and administrative expenses

     

     

    30,021

     

     

     

    45,988

     

     

    Equity in loss of unconsolidated entities

     

     

    3,154

     

     

     

    55,857

     

     

    Gain on sale of interest in unconsolidated entities

     

     

    (2,042

    )

     

     

    (6,407

    )

     

    Gain on sale of real estate, net

     

     

    (10,678

    )

     

     

    (96,214

    )

     

    Impairment of real estate assets

     

     

    87,536

     

     

     

    107,043

     

     

    Interest and other income (expense), net

     

     

    (2,513

    )

     

     

    (17,067

    )

     

    Interest expense

     

     

    24,972

     

     

     

    44,571

     

     

    Provision for income taxes

     

     

    1,584

     

     

     

    38

     

     

    Straight-line rent

     

     

    917

     

     

     

    16,874

     

     

    Above/below market rental expense

     

     

    189

     

     

     

    176

     

     

    NOI-cash basis

     

    $

    (2,113

    )

     

    $

    4,700

     

     

    Unconsolidated entities(1)

     

     

     

     

     

     

     

    Net operating income of unconsolidated entities(2)

     

     

    5,315

     

     

     

    8,384

     

     

    Straight-line rent

     

     

    (578

    )

     

     

    (4,512

    )

     

    Above/below market rental expense

     

     

    (36

    )

     

     

    28

     

     

    NOI-cash basis at share

     

    $

    2,588

     

     

    $

    8,600

     

     

    (1) Activity represents the Company's proportionate share of unconsolidated entity activity.
    (2) Net operating income of unconsolidated entities excludes depreciation and amortization, gains, losses and impairments and management and administrative costs.

    Properties sold during the fourth quarter of 2024:

     

     

     

     

     

     

    Total

     

     

    2024 Qtr

    City

     

    State

     

    Full / Partial Sale

     

    SF (1)

     

     

    Sold

    Doral

     

    FL

     

    Full Site

     

     

    195,600

     

     

    Q4

    Ft. Meyer

     

    FL

     

    Full Site

     

     

    146,800

     

     

    Q4

    Plantation

     

    FL

     

    Full Site

     

     

    204,000

     

     

    Q4

    Frisco

     

    TX

     

    Full Site

     

     

    87,500

     

     

    Q4

    Nanuet

     

    NY

     

    Full Site

     

     

    110,700

     

     

    Q4

    (1) Square footage at share

    Seritage Growth Properties
    (212) 355-7800
    IR@Seritage.com

    Source: Seritage Growth Properties
    IR CONTACTS
    Seritage Growth Properties
    500 Fifth Avenue
    Suite 1530
    New York, NY 10110
    Investor Relations Contact
    Transfer Agent
    Computershare Trust Company, N.A
    (201) 324-0014