Seritage Growth Properties (SRG) Q2 2025 earnings summary

Executive summary

• Portfolio as of June 30, 2025, included 13 properties with 1.3 million sq. ft. GLA and 198 acres of land, with 8 consolidated and 5 unconsolidated properties.

• Extended term loan maturity to July 2026, enabling more flexible asset sales to maximize shareholder value.

• Strategic review and Plan of Sale remain ongoing, with Board oversight and no assurance of transaction completion.

• Company transitioned from REIT to C Corporation effective January 1, 2022, providing greater flexibility in cash flow usage.

• Challenging market conditions, including high interest rates and limited capital availability, continue to impact asset sale proceeds and timing.

Financial highlights

• Net loss attributable to common shareholders was $29.7 million for Q2 2025, or $(0.53) per share, compared to $102.5 million, or $(1.82) per share, in Q2 2024.

• NOI - cash basis at share was $2.6 million for Q2 2025, up from $(0.1) million in Q2 2024.

• Q2 2025 included an $18.0 million impairment loss on real estate assets and a $1.4 million loss on sale of unconsolidated entity interests.

• Generated $23.0 million from the sale of one premier property and $8.1 million from the sale of an unconsolidated entity interest in Q2.

• Cash and cash equivalents plus restricted cash totaled $80.1 million at June 30, 2025.

Outlook and guidance

• Three consolidated properties under contract for $109.8 million as of August 14, 2025; additional negotiations ongoing for $226.4 million in potential proceeds.

• Additional assets being marketed with projected sales ranging from $5 million to $150 million per asset, timing dependent on market conditions.

• Obligations are projected to continue exceeding property rental income; funding to come from cash on hand, asset sales, and potential financing.

• Ongoing Plan of Sale and strategic review, including potential sale of the company.

• Substantial doubt remains about the ability to continue as a going concern until asset sales or alternative financing are secured.