Seritage Growth Properties Class A ( (SRG) ) has released its Q3 earnings. Here is a breakdown of the information Seritage Growth Properties Class A presented to its investors.
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Seritage Growth Properties is a Maryland-based real estate investment trust that specializes in owning, developing, and leasing diversified retail and mixed-use properties across the United States. Recently transitioning from a REIT to a taxable C Corporation, Seritage is actively managing its remaining portfolio while executing a strategic Plan of Sale.
In its latest earnings report for the quarter ending September 30, 2024, Seritage Growth Properties disclosed a net loss attributable to common shareholders of $23.2 million for the quarter and $145.9 million for the nine months ended September 30, 2024. The company is in the process of executing a Plan of Sale, which was approved by shareholders, to sell all its assets and dissolve the organization.
Key financial highlights from the report indicate a decline in total revenue to $3.3 million for the quarter compared to $5.0 million in the same period last year. The company also reported significant impairment charges totaling $87.5 million for the nine months ended September 30, 2024, as it continues with strategic property sales, having sold 10 properties for $111.7 million in gross proceeds within the same period.
Despite the ongoing execution of its asset sale strategy, Seritage faces challenges with cash flow and debt obligations. It reported operating cash outflows of $39.6 million for the nine-month period, highlighting the reliance on asset sales to fund obligations and reduce its term loan facility balance, which stood at $280.0 million by the end of the quarter.
Looking ahead, Seritage’s management remains focused on maximizing value through the sale of its portfolio while exploring alternative financing arrangements to address its financial obligations. The company’s ability to successfully execute its Plan of Sale and secure financing will be crucial to its future operations.
