Seritage Growth Properties (SRG) Q4 2024 earnings summary

Executive summary

• Advanced Plan of Sale with key leasing, partnership, and zoning milestones, positioning most assets for market in 2025, despite fewer closings in Q4 compared to prior quarters.

• Generated $50.8M from three vacant asset sales and $11.0M from two unconsolidated entity interests in Q4; $29.9M from an income-producing asset sold post-year-end.

• Strategic review and Plan of Sale remain ongoing, with openness to value-maximizing alternatives, including a potential company sale.

• CEO Andrea Olshan to step down in April 2025; Board Chairman Adam Metz appointed Interim CEO.

Financial highlights

• Net loss attributable to common shareholders was $(158.4)M, or $(2.82) per share, for 2024, compared to $(159.8)M, or $(2.85) per share, in 2023.

• NOI - cash basis at share was $2.6M for 2024, down from $8.6M in 2023.

• Cash on hand was $97.7M as of December 31, 2024, and $107.0M as of March 28, 2025, including $12.5M restricted cash.

• $120.0M in principal repayments made on the Term Loan Facility, reducing the balance to $240.0M at year-end.

Outlook and guidance

• Majority of assets expected to be marketed in 2025, with anticipated sales including large development sites, smaller leased properties, and vacant assets.

• One premier development asset in negotiation for ~$70M; one JV asset under contract for $14.0M gross proceeds.

• Future sales projections for individual assets range from under $5M to $200M, with timing dependent on market conditions.

• Challenging market conditions continue to exert downward pricing pressure, potentially impacting sale proceeds and timing of distributions.