Seritage Growth Pptys - SRG STOCK NEWS

Seritage Growth Properties (NYSE: SRG) reported $290.4 million in gross proceeds from asset sales in Q1 2023, emphasizing a strategic focus on property disposition. The company sold 27 assets including stabilized and vacant properties, resulting in $254.8 million and $35.6 million respectively. As of March 31, 2023, Seritage had $130 million in cash and prepaid $230 million towards its term loan, reducing annual interest expenses by $16.1 million. Looking ahead, the company anticipates $456.0 million from pending asset sales, with ongoing negotiations for an additional $65.0 million in sales.

Seritage Growth Properties (NYSE: SRG) reported its financial results for 2022, highlighting a net loss of $120 million, including a $126.9 million impairment. The company achieved $739.7 million from selling 65 properties in 2022, reducing its term loan from $1.6 billion to $800 million. In 2023, additional sales led to gross proceeds of $238.6 million. Total Net Operating Income (NOI) increased by 22% year-over-year, reaching $43.5 million. The company has over $450 million in assets under contract or offers, showing strong momentum despite market challenges.

Seritage Growth Properties (NYSE: SRG) announced a two-year extension of its corporate term loan to $800M, reflecting a significant reduction in debt and annual interest savings of $56.0M. The company reported $739.7M in gross proceeds from asset sales in 2022 and $232.8M year-to-date in 2023, with anticipated gross proceeds exceeding $580 million from ongoing transactions. The current market conditions present challenges, with rising interest rates impacting asset pricing. The firm noted it has over $100 million in cash and has prepaid $240 million of its term loan, reducing annual interest expenses.

Seritage Growth Properties (NYSE: SRG) announced a voluntary prepayment of $30 million on its $1.6 billion term loan facility provided by Berkshire Hathaway Life Insurance Company. This prepayment reduces the outstanding loan balance to $1.03 billion and will decrease annual interest expenses by approximately $2.1 million. As of September 30, 2022, Seritage's portfolio included 121 properties totaling around 16.1 million square feet of gross leaseable area.