Seritage Growth Properties Reports Third Quarter 2025 Operating Results

Seritage Growth Properties, a national owner and developer of retail, residential, and mixed-use properties, has released its financial and operating results for the third quarter of 2025. The company continues to make progress on its asset sale processes, with several assets under contract and expected to close soon, potentially allowing for a significant prepayment of its Term Loan Facility.

Financial Highlights

For the three months ended September 30, 2025, Seritage reported a net loss attributable to common shareholders of $13.6 million, or $0.24 per share. The company had cash on hand of $59.9 million as of September 30, 2025, including $8.3 million of restricted cash. Net Operating Income (NOI) on a cash basis at share was $1.6 million for the quarter.

For the nine months ended September 30, 2025, the company reported a net loss attributable to common shareholders of $66.8 million, or $1.19 per share. The company invested $21.8 million in its consolidated properties and received $9.6 million in distributions from its unconsolidated properties during this period.

Business and Operational Highlights

During the third quarter, Seritage had four assets under contract for anticipated gross proceeds of $240.8 million. Three of these assets, with no due diligence contingencies, are expected to generate $170.0 million in gross proceeds. The company is also negotiating definitive purchase and sale agreements on three joint venture assets, which could result in gross distributions of approximately $47.3 million.

As of September 30, 2025, Seritage's portfolio consisted of interests in 13 properties, comprising approximately 1.3 million square feet of gross leasable area and 198 acres of land. The portfolio includes eight consolidated properties and five unconsolidated entities.

Strategic Initiatives and Corporate Developments

Seritage has been actively working on its Plan of Sale, approved by shareholders in October 2022. The company aims to maximize value through asset sales and remains open to potential value-maximizing alternatives, including a potential sale of the company. The company has also been managing its debt, making $40.0 million in principal repayments on its Term Loan Facility during the first nine months of 2025.

In terms of dividends, the company declared and paid preferred stock dividends of $0.4375 per Series A Preferred Share in April, July, and October 2025, with another dividend declared for January 2026.

Management's Perspective

Adam Metz, CEO & President, commented on the company's progress, stating, "We continue to see good progress on our various asset sale processes. While not guaranteed, we currently expect to see near-term closings for all three assets under contract with no due diligence contingencies, which, if completed, would allow us to make a sizeable prepayment of our Term Loan Facility outstanding principal balance prior to year end."

Future Outlook

Looking ahead, Seritage estimates gross sales proceeds for assets not under contract or in PSA negotiation to be between $220 million and $310 million. The company cautions that actual results may differ materially until closings are consummated. The company also highlighted challenging market conditions, such as elevated interest rates and the availability of debt and equity capital, which could impact the proceeds from asset sales and the timing of distributions to shareholders.

Original SEC Filing: Seritage Growth Properties [ SRG ] - 8-K - Nov. 14, 2025