Seritage Growth Properties SEC 10-Q Report
Seritage Growth Properties, a real estate investment trust focused on owning, developing, and managing retail and mixed-use properties, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial performance and operational activities, showcasing significant improvements and strategic initiatives aimed at enhancing shareholder value.
Financial Highlights
Total Revenue: Seritage Growth Properties reported total revenue of $4.785 million for the three months ended September 30, 2025, reflecting an increase from $3.251 million in the same period in 2024. This growth was driven by higher rental income.
Total Revenue: For the nine months ended September 30, 2025, total revenue was $14.037 million, compared to $13.240 million in 2024, indicating a steady growth in revenue.
Net Loss: The company reported a net loss of $(12.422) million for the three months ended September 30, 2025, an improvement from $(21.973) million in the same period in 2024, due to reduced expenses.
Net Loss: For the nine months ended September 30, 2025, the net loss was $(63.130) million, compared to $(142.185) million in 2024, showing a significant reduction in losses.
Net Loss Per Share attributable to Seritage Class A common shareholders - Basic: The net loss per share was $(0.24) for the three months ended September 30, 2025, compared to $(0.41) in 2024, indicating improved per-share performance.
Net Loss Per Share attributable to Seritage Class A common shareholders - Basic: For the nine months ended September 30, 2025, the net loss per share was $(1.19), compared to $(2.59) in 2024, reflecting better financial performance per share.
Business Highlights
Portfolio Composition: As of September 30, 2025, Seritage Growth Properties' portfolio consisted of interests in 13 properties, comprising approximately 1.3 million square feet of gross leasable area (GLA) and 198 acres of land. This includes eight consolidated properties with approximately 0.8 million square feet of GLA and 113 acres, and five unconsolidated entities with approximately 0.5 million square feet of GLA and 85 acres.
Geographical Performance: The company's portfolio is diversified across six states, with a significant concentration in Florida, which accounted for approximately 54.5% of total rental income for the nine months ended September 30, 2025.
Operational Strategy: Seritage Growth Properties is executing a Plan of Sale, which involves selling its assets and potentially dissolving the company. This plan is expected to increase the universe of potential buyers by allowing transactions without the need for shareholder approval.
Future Outlook: The company anticipates continuing to use sales of consolidated and unconsolidated properties as the primary source of capital to fund its obligations, including principal payments on the Term Loan Facility. The strategic review process remains ongoing, with the company open to pursuing value-maximizing alternatives, including a potential sale of the company.
Tenant Concentration: As of September 30, 2025, the company had two tenants that comprised 14.4% and 10.6% of annualized base rent, respectively, with no other tenants exceeding 10.0% of annualized base rent.
Lease Management: The company has one ground lease classified as an operating lease, with a weighted-average remaining lease term of 48.3 years and a weighted-average discount rate of 7.52%.
Impairment and Asset Sales: The company recognized impairment charges of $0.8 million during the three months ended September 30, 2025, and $18.8 million for the nine months ended September 30, 2025. Additionally, the company sold two consolidated properties and two unconsolidated properties for gross proceeds of $60.7 million during the nine months ended September 30, 2025.
Management and Fee Income: The company recorded $0.2 million and $0.3 million from management, leasing, and construction supervision services for the three months ended September 30, 2025 and 2024, respectively, and $0.5 million and $0.4 million for the nine months ended September 30, 2025 and 2024, respectively.
SEC Filing: Seritage Growth Properties [ SRG ] - 10-Q - Nov. 14, 2025