Seritage Growth Properties

Seritage Growth Properties owns and manages shopping and mixed-use properties. Its spaces help retailers, restaurants, and service providers reach local communities. The company’s properties offer places for shopping, dining, and entertainment in everyday life.

What’s in the Seritage Toolbox?

• Property Ownership: Holds and manages retail and mixed-use real estate for lease or sale, which forms the vast majority of revenue.
• Leasing: Rents space to tenants like retailers, restaurants, and service providers.
• Development & Redevelopment: Upgrades or repurposes properties to attract new tenants or buyers.
• Asset Sales: Sells properties to generate cash and return value to shareholders.
• Property Management: Oversees daily operations, maintenance, and tenant relations for owned sites.

Growth and Expansion: The Seritage Shuffle

• Formed in 2015 to acquire properties from Sears Holdings.
• Since 2017, sold 224 consolidated and 35 unconsolidated properties, raising over $2.8 billion.
• Shareholders approved a Plan of Sale in October 2022 to monetize all assets and dissolve the company.
• In 2025, sold five wholly owned assets for $222.6 million and two unconsolidated properties for $8.1 million.
• Transitioned from a REIT to a taxable C Corporation in 2022 for greater flexibility in asset sales.

What Makes Seritage Stand Out?

Seritage focuses on maximizing value from former retail properties through redevelopment and sales. Its asset-light approach and small workforce reflect a wind-down strategy. The company’s tenant base is highly concentrated, with two tenants providing most rental income.

Five Things You Need to Know

• Revenue was $5 million in Q3 2025, up 47.2% year-over-year.
• Net loss improved to $6 million in Q3 2025 from $14 million a year earlier.
• Asset sales are the main source of cash; rental income does not cover expenses.
• Two tenants account for 75.6% of annualized base rent as of December 2025.
• Substantial doubt exists about the company’s ability to continue as a going concern.

Bottom Line

Seritage has shifted from property growth to asset liquidation and wind-down. Its focus is now on selling assets and returning proceeds to shareholders.