Seritage Growth Properties Reports Fourth Quarter and Full Year 2023 Operating Results

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NEW YORK, April 01, 2024--(BUSINESS WIRE)--Seritage Growth Properties (NYSE: SRG) (the "Company"), a national owner and developer of retail, residential and mixed-use properties today reported financial and operating results for the year ended December 31, 2023.

"In 2023, we sold 68 assets for gross proceeds of $842.7 million and paid down $670 million of debt. As of today, the overwhelming majority of our remaining assets have identified counterparties, are in the market or about to be launched. With respect to the remaining properties in our portfolio, these are assets for which we need to overcome important hurdles and/or achieve specific objectives prior to launching these assets for sale. We have a line of sight into a significantly more simplified portfolio of primarily premier development sites in prime markets. This along with our low run rate corporate overhead and significant tax losses may position the Company for potential strategic transactions as an alternative to continuing our Plan of Sale," said Andrea L. Olshan, Chief Executive Officer and President.

Sale Highlights:

  • Generated $99.5 million of gross proceeds during the quarter ended December 31, 2023 from sales including:

    • $27.5 million in gross proceeds from one income producing Multi-Tenant Retail asset reflecting a 6.4% capitalization rate;

    • $15.3 million in gross proceeds from three income producing Non-Core assets reflecting a 7.0% blended capitalization rate; and

    • $56.7 million in gross proceeds from two vacant / non-income producing Non-Core assets sold at $54.95 PSF eliminating $2.5 million of carry costs.

  • Subsequent to quarter end, generated $48.8 million of gross proceeds from sales including:

    • $34.0 million in gross proceeds from one income producing Multi-Tenant Retail asset reflecting a 7.6% capitalization rate; and

    • $14.8 million in gross proceeds from four vacant / non-income producing Non-Core assets sold at $28.56 PSF eliminating $0.8 million of carry costs.

  • As of March 22, 2024, the Company has four assets under contract for anticipated gross proceeds of $53.6 million. All assets for sale are subject to customary closing conditions. Of these four assets, one is an income producing Non-Core asset for sale with no due diligence contingencies for total anticipated gross proceeds of $3.8 million reflecting a 7.8% capitalization rate. In addition, of these four assets, three are under contract for sale subject to customary due diligence for total anticipated gross proceeds of $49.8 million, including:

    • $28.0 million in gross proceeds from one income producing Multi-Tenant Retail asset reflecting a 5.3% capitalization rate;

    • $17.1 million in gross proceeds from one vacant / non-income producing Non-Core asset priced at $87.43 PSF eliminating $0.5 million of carry costs; and

    • $4.7 million in gross proceeds from monetizing one unconsolidated entity interest.