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

Rhea-AI Summary

Seritage Growth Properties (NYSE: SRG) reported its Q4 and full year 2024 results, highlighting progress in its Plan of Sale strategy. The company generated $50.8 million from selling three vacant assets and $11.0 million from monetizing unconsolidated entity interests in Q4. Post-quarter, they secured $29.9 million from an income-producing asset sale.

Financial highlights include: cash on hand of $97.7 million as of December 31, 2024, net loss of $(158.4) million or $(2.82) per share, and NOI-cash basis at share of $2.6 million. The company reduced its Term Loan Facility to $240.0 million through $120.0 million in principal repayments.

The company anticipates marketing a majority of its assets in 2025, including development sites and leased properties. A significant development asset is under negotiation for approximately $70.0 million. Additionally, CEO Andrea Olshan will step down effective April 11, 2025, with Board Chairman Adam Metz appointed as Interim CEO.

Positive

• Secured $50.8M from vacant asset sales and $11.0M from entity interest sales in Q4
• Post-quarter sale of income-producing asset for $29.9M at 7.7% cap rate
• Significant debt reduction of $120M on Term Loan Facility
• Strong liquidity position with $107M cash on hand as of March 2025

Negative

• Net loss of $158.4M ($2.82 per share) for 2024
• Challenging market conditions causing downward pricing pressure on assets
• Multiple ongoing shareholder lawsuits alleging securities law violations
• Low NOI-cash basis at share of only $2.6M

Insights

Financial Analyst

Seritage Growth Properties has reported a mixed set of Q4 and full-year 2024 results as it continues executing its Plan of Sale strategy. The company generated $50.8 million from selling three vacant assets at $92.87 per square foot and an additional $11.0 million from monetizing unconsolidated entity interests. Post-quarter, they sold an income-producing asset for $29.9 million at a 7.7% cap rate.

The financial position shows concerning weakness with a full-year net loss of $158.4 million ($2.82 per share). Cash reserves stood at $97.7 million at year-end ($12.5 million restricted), increasing slightly to $107.0 million by March 28, 2025. The company reduced its Term Loan Facility by $120 million to $240 million and secured an extension option to July 2026.

The execution of their liquidation strategy faces significant headwinds. Management acknowledges "challenging market conditions" creating "downward pricing pressure on all assets" that may impact Plan of Sale proceeds and shareholder distributions. The company has also been hit with securities litigation alleging false/misleading disclosures regarding internal controls and asset valuations.

Adding to concerns, CEO Andrea Olshan is stepping down effective April 11, with Board Chairman Adam Metz taking over as Interim CEO. This leadership transition during a critical execution phase of their Plan of Sale creates additional uncertainty for investors.

Real Estate Investment Specialist

Seritage's portfolio monetization continues progressing, albeit with signals of market resistance. Their asset disposition strategy now has a majority of remaining properties slated to enter the market in 2025, including large development sites, smaller leased properties, and vacant assets. However, transaction timing appears to be extending, with the company now characterizing sales as having "varying anticipated sales processes and closing timelines."

The multi-tenant retail portfolio shows modest leasing momentum with 66.1% occupancy and a recently executed 141,000 square foot lease. The premier Aventura project has reached 78.7% leased status with 46,000 square feet remaining available. These operational improvements may help maximize value for select assets prior to disposition.

Future sales projections reveal the quality spectrum of remaining assets. The most valuable properties are concentrated in Gateway Markets, including one potentially worth $150-$200 million and another at $100-$150 million. However, the company has explicitly warned that challenging market conditions are applying "downward pricing pressure on all assets."

Most concerning is the PSA negotiation for a "premier development asset" with an extended closing timeline due to required master plan amendments, suggesting buyers are demanding significant contingencies and extended due diligence periods. Combined with the CEO transition, these factors indicate the remaining asset dispositions will likely face elongated timelines and potential valuation challenges. The cautionary language surrounding the Plan of Sale suggests increasing risk to shareholder return expectations.

NEW YORK--(BUSINESS WIRE)-- 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

View source version on businesswire.com: https://www.businesswire.com/news/home/20250331833766/en/

Seritage Growth Properties

(212) 355-7800

IR@Seritage.com

Source: Seritage Growth Properties

FAQ

What are Seritage Growth Properties' (SRG) Q4 2024 asset sale results?

SRG generated $50.8 million from three vacant asset sales at $92.87 PSF and $11.0 million from monetizing two unconsolidated entity interests.

How much debt reduction did SRG achieve in 2024?

SRG made $120.0 million in principal repayments on its Term Loan Facility, reducing the balance to $240.0 million by December 31, 2024.

What is SRG's cash position as of March 2025?

As of March 28, 2025, SRG had $107.0 million in cash on hand, including $12.5 million of restricted cash.

What leadership changes were announced at SRG in March 2025?

CEO Andrea Olshan will step down on April 11, 2025, with Board Chairman Adam Metz appointed as Interim CEO.