Seritage Growth Properties (SRG) オプション

Seritage Growth Properties Makes $50 Million Loan Prepayment (4/24/24)

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties, today announced that between April 23, 2024 and April 24, 2024, the Company has made voluntary prepayments aggregating $50 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

With the prepayments, the Company has now repaid a total of $1.32 billion since December 2021 and $280 million of the term loan facility remains outstanding. The current prepayments will reduce Seritage’s total annual interest expense related to the term loan facility by approximately $3.5 million. The cumulative repayments since December 2021 have reduced Seritage’s total annual interest expense related to the term loan facility by approximately $92.4 million.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of December 31, 2023, the Company’s portfolio consisted of interests in 32 properties comprised of approximately 4.1 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area and 460 acres. The portfolio consists of approximately 2.8 million square feet of GLA and 326 acres held by 23 wholly owned properties and 1.2 million square feet of GLA and 134 acres held by nine unconsolidated entities.

https://www.businesswire.com/news/home/20240424583231/en/

Seritage Growth Properties Makes $30 Million Loan Prepayment (1/30/24)

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties, today announced that on January 30, 2024, the Company made a voluntary prepayment of $30 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

With the prepayment, the Company has now repaid a total of $1.27 billion since December 2021 and $330 million of the term loan facility remains outstanding. The current prepayment will reduce Seritage’s total annual interest expense related to the term loan facility by approximately $2.1 million. The cumulative repayments since December 2021 have reduced Seritage’s total annual interest expense related to the term loan facility by approximately $88.9 million.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of September 30, 2023, the Company’s portfolio consisted of interests in 42 properties comprised of approximately 5.6 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area, approximately 126 acres held for or under development until time of sale and approximately 2.9 million square feet of GLA or approximately 259 acres to be disposed of in its current state. The portfolio consists of approximately 4.3 million square feet of GLA held by 33 wholly owned properties and 1.2 million square feet of GLA held by 9 unconsolidated entities.

https://www.businesswire.com/news/home/20240130299556/en/

SRG made $150 million in principal repayments on its term loan facility having a maturity date of July 31, 2025, reducing the balance of the Term Loan Facility to $400 million at September 30, 2023. Subsequent to quarter end, the Company made an additional $40 million principal repayment reducing the balance of the Term Loan Facility to $360 million.

Financial Supplement (11/08/23)

https://s23.q4cdn.com/949579163/files/doc_financials/2023/q3/Supplement-9-30-2023.pdf

Seritage Growth Properties Reports Third Quarter 2023 Operating Results (11/08/23)

https://s23.q4cdn.com/949579163/files/doc_financials/2023/q3/Earnings-Release-9-30-2023-1.pdf

Seritage Growth Properties Makes $80 Million Loan Prepayment (9/26/23)

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties, today announced that on September 26, 2023, the Company made a voluntary prepayment of $80 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

With the prepayment, the Company has now repaid a total of $1.2 billion since December 2021 and $400 million of the term loan facility remains outstanding. The current prepayment will reduce Seritage’s total annual interest expense related to the term loan facility by approximately $5.6 million. The cumulative repayments since December 2021 have reduced Seritage’s total annual interest expense related to the term loan facility by approximately $84.0 million.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of June 30, 2023, the Company’s portfolio consisted of interests in 50 properties comprised of approximately 6.8 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area, approximately 157 acres held for or under development until time of sale and approximately 3.6 million square feet of GLA or approximately 303 acres to be disposed of in its current state. The portfolio consists of approximately 5.2 million square feet of GLA held by 38 wholly owned properties and 1.7 million square feet of GLA held by 12 unconsolidated entities.

https://www.businesswire.com/news/home/20230926894519/en/

Seritage Growth Properties Makes $50 Million Loan Prepayment (6/08/23)

Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties, today announced that on June 7, 2023, the Company made a voluntary prepayment of $50 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

With the prepayment, the Company has now repaid a total of $1.05 billion since December 2021 and $550 million of the term loan facility remains outstanding. The current prepayment will reduce Seritage’s total annual interest expense related to the term loan facility by approximately $3.5 million. The cumulative repayments since December 2021 have reduced Seritage’s total annual interest expense related to the term loan facility by approximately $73.5 million.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of March 31, 2023, the Company’s portfolio consisted of interests in 72 properties comprised of approximately 10.2 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area, approximately 157 acres held for or under development until time of sale and approximately 5.3 million square feet of GLA or approximately 428 acres to be disposed of in its current state. The portfolio consists of approximately 7.6 million square feet of GLA held by 55 wholly owned properties and 2.6 million square feet of GLA held by 17 unconsolidated entities.

https://www.businesswire.com/news/home/20230608005134/en/

Seritage Growth Properties Makes $200 Million Loan Prepayment (5/30/23)

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of retail, residential and mixed-use properties, today announced that on May 25, 2023, the Company made a voluntary prepayment of $200 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

With the prepayment, the Company has now repaid a total of $1.0 billion since December 2021 and $600 million of the term loan facility remains outstanding. The current prepayment will reduce Seritage’s total annual interest expense related to the term loan facility by approximately $14.0 million. The cumulative repayments since December 2021 have reduced Seritage’s total annual interest expense related to the term loan facility by approximately $70.0 million.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of March 31, 2023, the Company’s portfolio consisted of interests in 72 properties comprised of approximately 10.2 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area, approximately 157 acres held for or under development until time of sale and approximately 5.3 million square feet of GLA or approximately 428 acres to be disposed of in its current state. The portfolio consists of approximately 7.6 million square feet of GLA held by 55 wholly owned properties and 2.6 million square feet of GLA held by 17 unconsolidated entities.

https://www.businesswire.com/news/home/20230530005100/en/

Seritage Growth Properties Provides Update on Q1 2023 Transaction Activity (4/04/23)

2023 Year to Date Gross Proceeds from Asset Sales of $290.4M

$525.0 M of Pipeline from Sales Under Contract or with Accepted Offers

https://www.businesswire.com/news/home/20230404005170/en/

I have been wondering all along why the preferred is trading so far under par. Only logical scenarios are that liquidation process results in no common equity or that they halt the liquidation process and instead sell to another company that keeps the preferred outstanding. Both of those scenarios seem pretty likely, so why is the preferred sub-$23?

OK, I own a sizable amount of BRK but no SRG. My background is real estate law... long ago. Good luck.

I have been long since 12/01/22 and have been averaging down.

I’m very familiar with John Garilli and his liquidation work.

I have a position in New York REIT Liquidating LLC, the successor New York REIT, Inc. Its only significant assets are a 50.1% equity interest in WWP Holdings LLC, which owns one property, known as Worldwide Plaza, aggregating 2.0 million rentable square feet with an average occupancy of 90.6% at 9/30/22. The property consisted of office space, retail space and a garage representing 88%, 5% and 7%, respectively, of rentable square feet.

https://investorshub.advfn.com/New-York-REIT-Liquidating-LLC-fka-NYRT-31521

In addition, I participated in the liquidation of Winthrop Realty Trust.

https://investorshub.advfn.com/Winthrop-Realty-Trust-fka-FUR-20428

What's your plan? I'm watching the video now....

Liquidation Arbitrage

https://assets.empirefinancialresearch.com/uploads/2023/02/Seritage-Growth-Properties-Matthew-Peterson-2-2-23.pdf

Today, 7% is cheap.

The preferred stock will most likely be redeemed in 2023.

Berkshire Hathaway Term Loan

On February 2, 2023, the Company made a $230.0 million voluntary prepayment under its $1.6 billion Senior Secured Term Loan Agreement, dated July 31, 2018, among the Company, Seritage Growth Properties, L.P. and Berkshire Hathaway Life Insurance Company of Nebraska (as amended). Following the prepayment, $800.0 million remains outstanding under the Term Loan Agreement, which is the outstanding balance that the Company needed to reach in order to extend the debt maturity for two years to July 31, 2025. The prepayment will also reduce the Company's total annual interest expense related to the term loan facility by approximately $16.1 million.

Funded amounts under the Term Loan Facility bear interest at an annual rate of 7.0% and unfunded amounts under the Incremental Funding Facility are subject to an annual fee of 1.0% until drawn.

SRG 2022 Year End Business Update (2/03/23)

https://www.businesswire.com/news/home/20230202005081/en/SRG-2022-Year-End-Business-Update

Seritage Growth Properties Makes $100 Million Loan Prepayment (8/08/22)

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of 161 retail, residential and mixed-use properties, today announced that on August 5, 2022, the Company made a voluntary prepayment of $100 million toward its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire Hathaway”).

With the prepayment, $1.34 billion of the term loan facility remains outstanding. The prepayment will also reduce Seritage’s total annual interest expense related to the term loan facility by approximately $7 million.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of March 31, 2022, the Company’s portfolio consisted of interests in 161 properties comprised of approximately 19.0 million square feet of gross leaseable area (“GLA”) or build-to-suit leased area, approximately 600 acres held for or under development and approximately 8.8 million square feet of GLA or approximately 740 acres to be disposed of. The portfolio consists of approximately 15.2 million square feet of GLA held by 136 wholly owned properties and 3.8 million square feet of GLA held by 25 unconsolidated entities.

https://www.businesswire.com/news/home/20220808005757/en/Seritage-Growth-Properties-Makes-100-Million-Loan-Prepayment

Seritage Growth Properties Appoints John Garilli as Interim CFO (1/07/22)

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner and developer of 170 retail, residential and mixed-use properties, today announced that John Garilli, an existing consultant to the Company and former CEO of New York REIT, has been appointed interim Chief Financial Officer. He will assume this position on a full-time basis upon Amanda Lombard’s departure, effective January 14, 2022.

Andrea Olshan, President and Chief Executive Officer of Seritage Growth Properties said, “We are pleased to have an executive of John’s caliber to step into the CFO role. John has been engaged with Seritage as a consultant for some time and is intimately familiar with our business. He is a seasoned executive who brings extensive REIT leadership experience, and we look forward to continuing to benefit from his deep financial and industry expertise.”

Mr. Garilli is a veteran public company executive with more than 15 years of experience in real estate leadership roles. Mr. Garilli has been a member of Winthrop Capital Advisors LLC and its affiliates since 1995, currently serving as President and COO. Mr. Garilli currently serves as Interim President and CEO of Luby's, Inc., a national restaurant company operating the Luby’s Cafeterias and Fuddruckers brands, since February 2021 and will continue to serve in that role in the near-term. Mr. Garilli has served as CEO, President, CFO, Treasurer, and Secretary of New York REIT Liquidating LLC since 2018. Prior to this, he served as the CEO of its predecessor, New York REIT, Inc. (“NYRT”), a NYSE-listed real estate investment trust, from July 2018 to November 2018, and as CFO, Secretary, and Treasurer of NYRT beginning in 2017. Previously, Mr. Garilli served as Chief Accounting Officer of Winthrop Realty Trust, a NYSE-listed real estate investment trust, from 2006 to 2012 and served as Winthrop Realty Trust’s CFO from 2012 until 2016. Mr. Garilli holds an MBA from Babson College and a BA from the College of the Holy Cross.

About Seritage Growth Properties

Seritage is principally engaged in the ownership, development, redevelopment, management and leasing of diversified and mixed-use properties throughout the United States. As of September 30, 2021, the Company’s portfolio consisted of interests in 170 properties comprised of approximately 10.0 million square feet of GLA or build-to-suit leased area (approximately 8.0 million at share), approximately 4.0 million of which is held by unconsolidated entities (approximately 2.0 million at share), approximately 600 acres held for or under development and approximately 10.0 million square feet of GLA or approximately 850 acres to be disposed of.

https://www.businesswire.com/news/home/20220107005225/en/

$SRG | #SeritageGrowthProperties on Breakout Watch List





Seritage Growth Properties is a real estate investment trust. The company engages in the acquisition, ownership, development, redevelopment, management and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers, and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York , NY.

Yup, happened just like it was supposed to!

Marked to fantasy to generate government income!

Something's going terribly wrong at Buffett's SRG. That pummeled REIT is off another 14% today! Some time ago Seritage paid a nice market-rate dividend, but they suspended it months ago supposedly to help finance redevelopment of its RE portfolio.

I'm sure some SRG investors had assumed WB would rush to the rescue if that were ever needed. Is he selling his SRG shares? I'm trying to learn more.

Seritage Growth Properties Reports Second Quarter 2019 Operating Results (8/01/19)

https://www.businesswire.com/news/home/20190801006019/en/Seritage-Growth-Properties-Reports-Quarter-2019-Operating

https://finance.yahoo.com/news/seritage-growth-properties-suspend-dividend-143600267.html

Re-leasing former Sears Holdings locations remains the key.
The 3.5x to 4.5x rental uplift that the Company has historically achieved upon re-leasing space formerly occupied by Sears Holdings allows it to recover all the rental income generated from Sears Holdings by re-leasing only 25-35% of the formerly occupied space and deploying the capital required to bring the rental income online.

Seritage Growth Properties Reports Increased Leasing, Development and Transaction Activity in 2018 (1/23/19)

Signed new leases totaling 3.1 million square feet, up 17% over 2017, at an average re-leasing multiple of 3.9x

Maintains $1.0 billion of liquidity, including $537 million of cash and $400 million incremental funding facility

NEW YORK--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the “Company”), a national owner of 232 retail and mixed-use properties totaling approximately 36.3 million square feet, today provided an update on the Company’s leasing, development, transaction and capital activities as of December 31, 2018.

“We are pleased with our strong finish to 2018, including 878,000 square feet of new leasing at an average rent of approximately $21.00 PSF on retail leases during the fourth quarter. Since inception, we have leased nearly 8.0 million square feet at an average rent of approximately $17.65 PSF on retail leases and a 4.1x multiple of prior rents. We have completed or commenced 97 redevelopment projects totaling $1.5 billion of projected capital investment at targeted incremental returns of approximately 11.0% on an unlevered basis. The diversified, non-Sears tenants we have under signed leases, plus the remaining lease-up of these announced projects, is expected to generate over $225 million of rental income before any further activation of our portfolio. We also ended the year with access to nearly $1.0 billion of liquidity, including $537 million of cash on hand, which provides sufficient capital to complete our current projects and mitigate potential reductions in income from Sears Holdings,” said Benjamin Schall, President and Chief Executive Officer. “As we start 2019, we remain well positioned to continue executing on our strategies to unlock substantial value through intensive redevelopment. We are excited by our pipeline of opportunities, including our next wave of suburban retail redevelopments and three dozen premier and larger scale redevelopments. We look forward to utilizing our platform and expanding our preferred partnerships with growing retailers, best-in-class mixed-use developers and leading capital allocators to generate substantial value for shareholders.”

Diversified Income

Leasing Activity: since inception, the Company has signed approximately 7.9 million square feet of new leases at an average rent of $16.63 PSF. Retail re-leasing multiples have averaged 4.1x for space occupied by Sears Holdings Corporation (“Sears Holdings” or “Sears”), with new retail rents averaging $17.72 PSF compared to $4.36 PSF paid by Sears Holdings.

The 7.9 million square feet of new leases includes 287 leases with 139 unique tenants and demonstrates the breadth of the Company’s tenant relationships and leasing activity.

In 2018, the Company signed new leases totaling 3.1 million square feet, representing a 17% increase over 2017 leasing activity, including approximately 878,000 square feet signed in the fourth quarter at an average rent of $18.03 PSF (retail leases represented 664,000 square feet at an average rent of $20.98 PSF).

[Tables deleted]

Rental Income: since inception, the Company has increased annual base rent from diversified, non-Sears tenants by over 235% to $147 million, including all signed leases and the impact of all asset monetization activity. Including the remaining lease up of announced projects, the Company expects diversified, non-Sears income of over $225 million before any further activation of the portfolio.

As of December 31, 2018, annual base rent from diversified, non-Sears tenants accounted for approximately 72% of total annual base rent, including all signed leases and the effect of all previously exercised recapture and termination notices, as well as properties under contract for sale. Sears Holdings comprised 28% of total annual base rent, surpassing the Company’s previously stated goal of reducing exposure to Sears Holdings below 35% by the end of 2018.

Stability and Growth

Announced Projects: since inception, the Company has substantially completed 47 new redevelopments and has an additional 50 projects currently under development. These 97 projects, which upon completion will provide stable cash flow from a diverse set of retailers under long-term leases, represent $1.5 billion of projected capital investment at targeted incremental returns of approximately 11.0% on an unlevered basis.

In 2018, the Company commenced projects totaling $382 million, including 19 new redevelopments and the expansion of seven previously announced projects. This activity included three new projects representing $65.0 million of capital investment in the fourth quarter.

Development Pipeline: the Company believes it is well-positioned to continue its value creation activities with a robust pipeline of redevelopment projects, including significant mixed-use and densification opportunities.

Premier and Larger Scale: the Company has identified 36 assets totaling 7.4 million square feet of existing space that it believes can be expanded and densified by integrating retail, residential, office and other uses. As of December 31, 2018, the Company had announced select phases of projects at nine of these 36 properties.

In 2018, the Company solidified a portion of its mixed-used and densification pipeline by receiving entitlements for 1,750 residential units, 1.4 million square feet of office space and 500 hotel keys across four projects, including the previously announced approvals at the Company’s projects in Redmond (WA) and Dallas (TX).

Suburban Retail: the Company has identified 162 assets totaling 25.4 million square feet of existing space that it expects to redevelop into first-class, multi-tenant retail centers. As of December 31, 2018, the Company had completed or commenced projects at 83 of these 162 properties, and expects to continue activating these assets as the Company builds on its preferred relationships with growing retailers and other users around the country.

Value Realization and Capital Recycling

Capital Activities: the Company has raised approximately $550 million of gross proceeds from the sale or joint venture of interests in 42 properties over the last 18 months. Proceeds have primarily been reinvested into redevelopment projects, as well as used to repay debt under the Company’s original mortgage facility which was repaid in full in July 2018.

Strategic Equity Joint Ventures: in 2018, the Company contributed its assets in Santa Monica (CA), La Jolla (CA) and West Hartford (CT) into three joint ventures with institutional capital partners representing a total transaction value of $362 million, or $744 PSF, and generated $117.0 million of gross proceeds.

Development Joint Ventures: in 2018, the Company announced two agreements to form joint ventures with institutional-quality residential developers to lead the multifamily components of mixed-use projects in Redmond (WA) and Newark (CA), at values of $16.0 million for 2.5 acres and $20.0 million for 4.5 acres, respectively.
Opportunistic and Smaller Market Dispositions: in 2018, the Company sold 21 properties totaling 2.1 million square feet that generated gross proceeds of $114.3 million, or $54 PSF. The Company monetized these assets, which were generally located in smaller markets, in order to focus its human and capital resources on larger value creation opportunities. These transactions included five dispositions in the fourth quarter that generated gross proceeds of $47.3 million, or $78 PSF.

Strong Liquidity Position

New Term Loan Facility: in July 2018, the Company entered into a new $2.0 billion term loan facility with Berkshire Hathaway Life Insurance Company (the “Term Loan Facility”). The Term Loan Facility, which matures on July 31, 2023, provided for an initial funding of $1.6 billion at closing and includes a committed $400 million incremental funding facility, subject to certain conditions.

There is no direct impact of Sears Holdings’ bankruptcy filing, or a potential rejection of the Master Lease, on the Company’s Term Loan Facility. The Term Loan Facility includes certain financial metrics, including fixed charge coverage ratios, leverage ratios and a minimum net worth, that could be negatively impacted by a loss of revenue from Sears Holdings. A failure to satisfy any of these financial metrics will require the Company to seek lender approval to monetize assets via sale or joint venture and also provide the lender the right to request mortgages on its real estate collateral, but will not result in an event of default, mandatory amortization, cash flow sweep or any similar provision.

Liquidity Position: as of December 31, 2018, the Company was positioned with nearly $1.0 billion of liquidity, including:
$537 million of cash on hand to fund on-going development activities, as well as to mitigate possible adverse impacts to operating cash flow that may result from potential reductions of rental income under the Master Lease with Sears Holdings.

Committed $400 million incremental funding facility under the Term Loan Facility that is also available, subject to certain conditions, to fund announced and future redevelopment activities.
13 smaller market assets under contract for sale for anticipated gross proceeds of $59.8 million. Assets under contract for sale are subject to customary closing conditions and there can be no assurance that such transactions will be consummated.

Sears Holdings Bankruptcy Filing

As of December 31, 2018, including all signed leases and the effect of previously exercised recapture and termination notices and properties under contract for sale, Sears Holdings was a tenant in 77 properties under the Master Lease and 19 properties under the JV Master Leases representing an aggregate of 11.5 million square feet and $56 million of annual base rent, or 28% of all base rent under signed leases.

The 3.5x to 4.5x rental uplift that the Company has historically achieved upon re-leasing space formerly occupied by Sears Holdings allows it to recover all the rental income generated from Sears Holdings by re-leasing only 25-35% of the formerly occupied space and deploying the capital required to bring the rental income online.

The Company is monitoring, and will continue to monitor, Sears Holdings’ bankruptcy proceedings, including the culmination of Sears Holdings’ auction process, and the impact on the Company’s business. For more information regarding the same, refer to the risk factors relating to Sears Holdings in the Company’s periodic filings with the Securities and Exchange Commission.

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,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” 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: our significant exposure to Sears Holdings and the effects of its recently announced bankruptcy filing; Sears Holdings’ termination and other rights under its master lease with us; competition in the real estate and retail industries; risks relating to our recapture and redevelopment activities; contingencies to the commencement of rent under leases; the terms of our indebtedness; restrictions with which we are required to comply in order to maintain REIT status and other legal requirements to which we are subject; failure to achieve expected occupancy and/or rent levels within the projected time frame or at all; and our relatively limited history as an operating company. For additional discussion of these and other applicable risks, assumptions and uncertainties, see the “Risk Factors” and forward-looking statement disclosure contained in our filings with the Securities and Exchange Commission, including the risk factors relating to Sears Holdings. While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially. We intend 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

Seritage Growth Properties is a publicly-traded, self-administered and self-managed REIT with 206 wholly-owned properties and 26 joint venture properties totaling approximately 36.3 million square feet of space across 48 states and Puerto Rico. The Company was formed and listed on the New York Stock Exchange (NYSE: SRG) in July 2015 in conjunction with the acquisition of a portfolio of real estate from Sears Holdings. Our mission is to create and own revitalized shopping, dining, entertainment and mixed-use destinations that provide enriched experiences for consumers and local communities, and that generate long-term value for our shareholders. The Company is headquartered in New York, NY.

https://www.businesswire.com/news/home/20190123005239/en/Seritage-Growth-Properties-Reports-Increased-Leasing-Development

"Sears Bankruptcy Liquidation Would Be A Nightmare For Seritage"

Lengthy learned discussion on SRG amid Sears' final stage

https://seekingalpha.com/article/4213838-sears-bankruptcy-liquidation-nightmare-seritage-growth-properties

Re-leasing former Sears Holdings locations is the key.
Master Leases with Sears Holdings

• Remaining Exposure: as of September 30, 2018, including the effect of all previously exercised recapture and termination activity, Sears Holdings was a tenant in 82 properties under the Master Lease and 20 properties under the JV Master Leases representing an aggregate of 12.4 million square feet and $61.2 million of annual base rent, or 31.4% of all base rent under signed leases.

• Impact of Re-Leasing Spreads: the 3.5x to 4.5x rental uplift that Company has historically achieved upon re-leasing space formerly occupied by Sears Holdings allows it to recover all the rental income generated from Sears Holdings by re-leasing only 25-35% of the formerly occupied space and deploying the capital required to bring the rental income online.

Uplift based on historic rates would produce additional revenue between $214 and $275 million using $61.2 million of annual base rent.

Needless to say, bankruptcy now provides Sears Holdings with an opportunity to reject leases.

Seritage Growth Properties (SRG) Provides Business Update with Respect to Recent Events Regarding Sears Holdings

October 15, 2018 9:15 AM

Seritage Growth Properties (NYSE: SRG) (the “Company”) today provided a business update related to the recent announcement by Sears Holdings Corporation (“Sears Holdings”) that Sears Holdings has filed for Chapter 11 bankruptcy protection.

“All of our capital investment, leasing and development activity over the last three years is unlocking substantial value, and has significantly diversified our income stream with approximately 70% of our signed leased income now coming from diversified, non-Sears tenants,” said Benjamin Schall, President and Chief Executive Officer. “We have $1 billion of cash and committed capital under our Term Loan facility, which provides us the funds to complete all of our on-going redevelopment projects and cover reductions in cash flow that may result from the potential disruption in Sears income. The completion of our redevelopment projects brings our signed leased income on-line and will replace any potential lost income from Sears Holdings.

[....]

To read the full article click below:

https://www.streetinsider.com/dr/news.php?id=14704501

Marker:
Seritage Growth Prop (SRG)
$43.50. up 1.75 (4.19%)
Volume: 928,291

Marker:
Seritage Growth Prop (SRG)
$50.88 down -0.1 (-0.20%)
Volume: 14,134

"Berkshire Loans $2 Billion to RE Firm Backed by Buffett" [Seritage]

"Warren Buffett bet his own money more than two years ago on the real estate empire that was spun out of Sears Holdings Corp. Now, his Berkshire Hathaway Inc. is helping finance the business.

Berkshire agreed to provide a $2 billion loan to Seritage Growth Properties, the real estate investment trust owns Sears stores, as well as properties the department-store chain has vacated. Seritage is using a portion of the money to refinance debt, while adding to capital. Buffett bought 2 million shares in December 2015 that are valued at about $85 million.

“I think he’s expressing confidence in their future profitability and growth,” said David Kass, a professor of finance at the University of Maryland’s Robert H. Smith School of Business. Seritage gets “the Warren Buffett seal of approval.”

https://www.yahoo.com/finance/news/berkshire-backs-sears-property-spinoff-202617839.html

Buffett likes real estate:

https://seekingalpha.com/article/4113590-shopping-center-reit-average-joe

Why The Heck Did Buffett Buy Seritage?

"The Most Compelling Catalyst

Seritage is primarily a development play, and according to RBC, "the existing operating assets are sitting atop some of the best underlying land in the retail real estate world." Continued demand by retailers for space in the highest-quality mall and community centers should drive outsized cash flow growth for this company over the next 10 years."

https://seekingalpha.com/article/4005122-heck-buffett-buy-seritage

The Argument for SRG:

"In an investor presentation last month, Seritage noted that Sears pays deeply discounted rental rates of only $4.45 per square foot. If it can get another retailer to occupy the space instead, it's able to realize rates of anywhere from $13 to $18 per square foot.

Currently, though, Sears occupies 84% of the square footage Seritage leases, yet because its rents are so low, it accounts for only 60% of the annual rent the REIT collects. That's better than when it first started: Third party tenants only accounted for 20% of the rent. On some level, there could be the hope that Sears goes bankrupt so it can convert more real estate to profitable usage."

https://www.fool.com/investing/2017/07/17/investors-are-betting-big-against-seritage-growth.aspx

Seritage Growth Properties, closely tied to Sears Holdings, is an REIT engaged in acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate.