Seritage Growth Properties (SRG) Q3 2025 earnings summary

Executive summary

• Entered into a real estate purchase agreement in September 2025 to sell the Aventura, Florida property for $131 million to Boulevard Step Ventures LLC, with a $5 million earnest money deposit and standard closing conditions.

• Reported a net loss attributable to common shareholders of $13.6 million ($0.24 per share) for Q3 2025 and $66.8 million ($1.19 per share) for the nine months ended September 30, 2025.

• Asset sale processes are progressing, with four assets under contract for $240.8 million in anticipated gross proceeds as of November 13, 2025.

• Strategic review and Plan of Sale execution continue, with most remaining assets under contract or in negotiations.

• The agreement includes the sale of land, buildings, leases, contracts, tangible and intangible personal property, and certain promissory notes and permits related to the property.

Significant events and developments

• The agreement requires the seller to cure certain title defects and deliver estoppel certificates from tenants representing at least 75% of the leased area (excluding specified tenants) as a closing condition.

• Seller disclosed ongoing litigation, including a mechanics lien and personal injury lawsuits, and provided for indemnification and liability limitations in the agreement.

• Seller must escrow 125% of the estimated cost to obtain final certificates of occupancy, as the property is operating under temporary certificates at signing.

• Exercised extension option on Term Loan Facility, extending maturity to July 31, 2026, with a 2% extension fee ($4.0 million) and incremental facility fee ($4.0 million) paid.

• Sold several properties in 2025, including full site sales in FL, TX, CA, and MA.

Capital allocation and financing

• The $131 million purchase price is to be paid in cash at closing, with earnest money held in escrow by First American Title Insurance Company.

• $3.8 million invested in Q3 and $21.8 million year-to-date in consolidated properties, mainly for tenant leasing costs.

• $40.0 million in principal repayments on Term Loan Facility in the first nine months of 2025.

• Cash and restricted cash totaled $59.9 million at quarter-end.

• Prorations for taxes, rent, operating expenses, and security deposits are specified, with post-closing adjustments and holdbacks for unresolved items.