Seritage Growth Properties Reports $153.5 Million Net Loss and Increased Rental Income for Fiscal Year 2024

Seritage Growth Properties reported a net loss of $153.5 million for the fiscal year ending December 31, 2024, compared to a loss of $154.9 million in the previous year. The company's rental income increased to $17.1 million from $15.1 million, reflecting a rise of approximately 13.2%. However, the company faced significant impairment losses of $87.5 million, primarily due to negotiations for rent relief with existing tenants and agreeing to sell properties below their carrying value. This impairment was a notable factor in the overall financial performance, overshadowing the increase in rental income.

In terms of operational changes, Seritage continued to execute its Plan of Sale, which was approved by shareholders in October 2022. The company sold 13 properties during 2024, generating gross proceeds of $163.5 million, and monetized two unconsolidated properties for an additional $14.9 million. As of March 31, 2025, Seritage had one asset under contract for sale, expected to yield $14 million. The ongoing strategic review process remains a priority for the company, as it seeks to maximize shareholder value through asset sales and potential dissolution.

The company’s portfolio as of December 31, 2024, consisted of 17 properties with a total gross leasable area of approximately 1.7 million square feet. This included 10 wholly owned properties and seven unconsolidated entities. The total market value of the voting and non-voting common equity held by non-affiliates was approximately $198 million as of June 30, 2024. The company has also seen a reduction in its employee headcount, with only seven full-time employees reported as of December 31, 2024, down from previous years, as it continues to streamline operations in line with its strategic objectives.

Looking ahead, Seritage's management has indicated that the challenging market conditions, including elevated interest rates and inflation, may continue to impact the proceeds from the Plan of Sale. The company is focused on managing its liquidity, with cash on hand and anticipated sales of properties expected to fund its obligations. The Term Loan Facility, which had an outstanding balance of $240 million as of December 31, 2024, is set to mature on July 31, 2025, with an option to extend to July 31, 2026, contingent upon certain conditions. The company’s ability to navigate these financial challenges will be critical as it seeks to execute its strategic plan effectively.