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
three and nine months ended September 30, 2023.
“We continue to make significant progress on asset sales,
grossing more than $156 million during the quarter. We now have a
line of sight to a portfolio of approximately 25 assets comprised
of many of our best properties in prime markets around the country.
Our team's operational discipline has allowed us to reduce run rate
G&A, a trend we expect to continue into 2024. We remain focused
on our balance sheet, keeping ample cash balances while using
excess proceeds to progressively pay down our debt. Looking ahead,
we will press on with our plan of sale with a continued focus on
delivering value to our shareholders,” said Andrea L. Olshan, Chief
Executive Officer and President.
Sale Highlights:
- Generated $156.8 million of gross proceeds during the quarter
ended September 30, 2023 from sales including:
- $48.2 million in gross proceeds from two income producing
Multi-Tenant Retail assets reflecting a 7.5% blended capitalization
rate;
- $8.4 million in gross proceeds from two income producing
Non-Core assets reflecting a 6.7% blended capitalization rate;
- $6.2 million in gross proceeds from two vacant / non-income
producing Non-Core assets sold at $11.79 PSF eliminating $0.6M of
carry costs; and
- $94.0 million in gross proceeds from monetizing three
unconsolidated entity interests.
- Subsequent to quarter end, generated $78.6 million of gross
proceeds from sales including:
- $27.5 million in gross proceeds from one income producing
Multi-Tenant Retail asset reflecting a 6.4% capitalization rate;
and
- $51.1 million in gross proceeds from five vacant / non-income
producing Non-Core assets sold at $64.28 PSF eliminating $1.7M of
carry costs.
- The Company has eight assets under contract for anticipated
gross proceeds of $78.0 million. All assets for sale are subject to
customary closing conditions. Of these eight assets, three are for
sale with no due diligence contingencies for total anticipated
gross proceeds of $11.8 million, four assets are under contract for
sale subject to customary due diligence for total anticipated gross
proceeds of $28.7 million and one asset is subject to a buyer
termination right for anticipated gross proceeds of $37.5 million
including:
- $37.5 million in gross proceeds from one income producing
Multi-Tenant Retail asset reflecting a 5.8% capitalization
rate;
- $9.2 million in gross proceeds from two income producing
Non-Core assets reflecting a 6.4% blended capitalization rate;
and
- $31.3 million in gross proceeds from five vacant / non-income
producing Non-Core assets sold at $39.56 PSF eliminating $1.8M of
carry costs.
- The Company has accepted offers on and is currently negotiating
definitive purchase and sale agreements on seven assets for total
gross proceeds of approximately $59.0 million including:
- $28.0 million in gross proceeds from one income producing
Multi-Tenant Retail asset reflecting a 7.7% capitalization
rate;
- $2.7 million in gross proceeds from one income producing
Non-Core asset reflecting a 5.5% capitalization rate;
- $8.5 million in gross proceeds from two vacant / non-income
producing Non-Core assets sold at $37.59 PSF eliminating $0.4M of
carry costs; and
- $19.8 million in gross proceeds from monetizing three
unconsolidated entity interests.
Financial Highlights:
For the three months ended September 30, 2023:
- As of September 30, 2023, the Company had cash on hand of
$114.8 million, including $16.0 million of restricted cash. As of
November 3, 2023, the Company had cash on hand of $187.9 million,
including $16.0 million of restricted cash, prior to making an
additional principal prepayment of $40 million on November 7,
2023.
- Net loss attributable to common shareholders of ($3.8) million,
or ($0.07) per share.
- Total Net Operating Income (“Total NOI”) of $1.1 million.
- During the quarter, the Company made $150 million in principal
repayments on the Company’s term loan facility having a maturity
date of July 31, 2025 (the “Term Loan Facility”), reducing the
balance of the Term Loan Facility to $400 million at September 30,
2023. Subsequent to quarter end, the Company made an additional $40
million principal repayment reducing the balance of the Term Loan
Facility to $360 million.
Other Highlights
- Signed three leases covering 12 thousand square feet in the
third quarter at an average projected annual net rent of $55.94
PSF.
- One ground floor lease covering approximately 8 thousand square
feet at a Multi-Tenant Retail asset at a projected annual net rent
of $46.00 PSF;
- One ground floor lease covering approximately 500 square feet
at a Premier asset at a projected annual net rent of $260.00 PSF;
and
- One upper floor lease covering approximately 3.6 thousand
square feet at a Premier asset at a projected annual net rent of
$50.15 PSF.
- Opened five tenants in the third quarter totaling approximately
41 thousand square feet (36 thousand square feet at share) at an
average net rent of $65.36 PSF ($67.38 PSF at share).
Future Sales Projections
The data below provides additional information regarding current
estimated gross sales proceeds per asset in the portfolio as of
November 7, 2023 excluding assets under contract or in PSA
negotiation, which are described above. The assets listed below are
either being marketed or are to be marketed and, as a result, any
sales thereof are anticipated to occur in 2024 and beyond. Sales
projections are based on the Company’s latest forecasts and
assumptions, but the Company cautions that actual results may
differ materially. In addition, see “Market Update” below and the
“Risk Factors” section contained in the Company’s filings with the
Securities and Exchange Commission for discussion of the risks
associated with such estimated gross sale proceeds.
Gateway Markets
- One Multi-Tenant Asset $25 - $30 million
- Nine Premier Assets (Dallas & UTC are each assumed to be
sold in two transactions)
- One Asset $15 - $20 million
- One Asset $35 - $40 million
- One Asset $40 - $45 million
- One Asset $45 - $50 million
- One Asset $50 - $60 million
- One Asset $70 - $80 million
- One Asset $100 - $150 million
- Two Assets $200 – $300 million
Primary Markets
- Three Multi-Tenant Assets
- One Asset $25 - $30 million
- Two Assets $30 - $35 million
- Two Joint Venture Assets $5 - $10 million
- Four Non-Core Assets
- Three Assets $5 - $10 million
- One Asset $30 - $35 million
Secondary Markets
- One Residential Asset with adjacent Retail asset $5 - 10
million
- One Joint Venture Asset $5 - $10 million
- One Non-Core Asset under $5 million
Tertiary Markets
- One Non-Core Asset under $5 million
Portfolio
The table below represents a summary of the Company’s properties
by planned usage as of September 30, 2023:
(in thousands except number of leases and acreage data):
Planned Usage
Total
Built SF / Acreage (1)
Leased SF (1)(2)
% Leased
Avg. Acreage / Site
Consolidated
Multi-Tenant Retail
7
1,135 sf / 111 acres
793
69.8.%
15.9
Residential (3)
2
33 sf / 19 acres
33
100.0%
9.5
Premier
4
228 sf / 69 acres
138
60.4%
17.2
Non-Core (4)
20
2,941 sf / 259 acres
119
4.0%
12.9
Unconsolidated
Other Joint Ventures
6
457 sf / 77 acres
11
2.3%
12.8
Premier
3
158 sf / 57 acres
106
67.4%
19.0
(1) Square footage is presented at the Company’s proportional
share.
(2) Based on signed leases at September 30, 2023.
(3) Square footage represents built ancillary retail space
whereas acreage represents both retail and residential acreage.
(4) Represents assets the Company previously designated for
sale.
Multi-Tenant Retail
During the three months ended September 30, 2023, the Company
invested $0.5 million in its Multi-Tenant retail properties. The
remaining capital expenditures in the Multi-Tenant retail portfolio
are primarily comprised of tenant improvements.
The table below provides a summary of all Multi-Tenant Retail
signed and in negotiation leases as of September 30, 2023:
(in thousands except number of leases and
PSF data)
Number of
Leased
% of Total
Gross Annual Base
% of
Gross Annual
Tenant
Leases
GLA
Leasable GLA
Rent ("ABR")
Total ABR
Rent PSF ("ABR PSF")
In-place retail leases
29
649.4
57.2
%
$
15,648.0
83.7
%
$
24.10
SNO retail leases (1)(2)
7
143.3
12.6
%
$
3,054.8
16.3
%
21.32
Tenants in lease negotiation
2
104.0
9.2
%
$
696.2
N/A
6.69
Total retail leases
38
896.7
79.0
%
$
19,399.0
100.0
%
$
21.63
(1) SNO = signed not yet opened
leases.
(2) SNO GLA and rent include one tenant
expansion signed in Q2 2023 not counted as a lease.
During the three months ended September 30, 2023, the Company
signed one new lease at its retail properties totaling
approximately 8 thousand square feet at an average base rent of
$46.12 PSF stabilized net. Additionally, the Company generated a
leasing pipeline of over 100 thousand square feet. The Company has
649 thousand leased square feet and approximately 143 thousand
square feet signed but not opened. The Company has total occupancy
of 69.8% for its Multi-Tenant retail properties. As of September
30, 2023, there is an additional approximately 343 thousand square
feet available for lease.
(in thousands except number of leases and
PSF data)
Number of
Leased
Gross Annual Base
Gross Annual
SNO Leases
GLA
Rent ("ABR")
Rent PSF ("ABR PSF")
As of June 30, 2023
8
164.4
3,146.5
$
19.14
Opened
(1
)
(1.2
)
(52.3
)
43.58
Sold / terminated
(1
)
(28.0
)
(413.0
)
14.75
Signed
1
8.1
373.6
43.12
As of September 30, 2023
7
143.3
3,054.8
$
21.32
Premier Mixed-Use
The Company has three premier mixed-use projects in the active
leasing/tenant opening stage: Aventura, FL, Santa Monica, CA and
San Diego, CA. As of September 30, 2023, the Company has 245
thousand in-place leased square feet (144 thousand square feet at
share), 105 thousand square feet signed but not opened (100
thousand square feet at share), and 193 thousand square feet
available for lease (142 thousand square feet at share).
The table below provides a summary of all signed leases at
Premier assets as of September 30, 2023, including unconsolidated
entities at the Company’s proportional share:
Number of
Leased
% of Total
Gross Annual
% of
Gross Annual
Tenant
Leases
GLA
Leasable GLA
Base Rent ("ABR")
Total ABR
Rent PSF ("ABR PSF")
In-place retail leases
27
63.9
16.6
%
$
4,481.6
26.8
%
$
70.13
In-place office leases
2
79.9
20.7
%
$
5,219.6
31.4
%
65.33
SNO retail leases as of June 30,
2023(1)
18
107.1
$
8,298.0
77.48
Opened
(3
)
(17.0
)
$
(1,403.5
)
82.56
Terminated
(1
)
(22.0
)
$
(1,820.3
)
82.74
Signed
2
4.1
$
312.8
76.29
SNO retail leases as of September 30,
2023(1)
16
72.2
18.7
%
$
5,387.0
32.4
%
74.61
SNO office leases as of June 30,
2023(1)
3
46.2
$
2,108.5
45.64
Opened
(1
)
(18.2
)
$
(999.8
)
54.93
Lease amendment
—
—
$
432.5
—
SNO retail leases as of September 30,
2023(1)
2
28.0
7.3
%
$
1,541.2
9.3
%
55.04
Total diversified leases as of
September 30, 2023
47
244.0
63.3
%
$
16,629.4
100.0
%
$
68.15
(1) SNO = Signed not yet opened leases
(2) In thousands except number of leases
and PSF data
During the three months ended September 30, 2023, the Company
invested $10.1 million in its consolidated premier development and
operating properties and an additional $0.5 million into its
unconsolidated premier entities.
Aventura
During the third quarter of 2023, the Company continued to
advance 216 thousand square feet of office and retail leasing at
the project in Aventura, FL. The Company is finalizing construction
on the asset and opened its first tenants to the public in July
2023 with approximately 58 thousand square feet representing 27% of
the asset opened through November 3, 2023 and will continue with
rolling openings going forward.
With 58.4% leased through November 3, 2023, the Company has 90
thousand square feet or 41.6% available for lease, of which
approximately 32 thousand square feet or 14.8% is in lease
negotiation and has leasing activity on over an additional 14
thousand square feet or 6.5%. This leasing percentage reflects two
leases that were terminated due to those tenants failure to perform
representing approximately 24 thousand square feet or 10.9%.
Financial Summary
The table below provides a summary of the Company’s financial
results for the three and nine months ended September 30, 2023:
(in thousands except per share
amounts)
Three Months Ended
Nine Months Ended
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net loss attributable to Seritage common
shareholders
$
(2,127
)
$
(4,664
)
$
(162,270
)
$
(170,074
)
Net loss per share attributable to
Seritage common shareholders
(0.04
)
(0.08
)
(2.89
)
(3.57
)
Total NOI
1,119
12,150
7,218
33,245
For the quarter ended September 30, 2023:
- Total NOI for the third quarter of 2023 reflects the impact of
$(0.6) million Total NOI relating to sold properties.
Total NOI is comprised of:
(in thousands)
Three Months Ended September
30,
Consolidated Properties
2023
2022
Multi-tenant retail
$
2,749
$
4,154
Premier
(589
)
(632
)
Residential
57
—
Non-Core
(1,310
)
(422
)
Sold
(601
)
6,897
Total
306
9,997
Unconsolidated Properties
Residential
277
282
Premier
64
2,158
Other joint ventures
472
(287
)
Total
813
2,153
Total NOI
$
1,119
$
12,150
As of September 30, 2023, the Company had cash on hand of $114.8
million, including $16.0 million of restricted cash. The Company
expects to use these sources of liquidity, together with a
combination of future sales, to pay its financing obligations and
fund its operations and development activity. The availability of
funding from sales of assets is subject to various conditions, and
there can be no assurance that such transactions will be
consummated. For more information on our liquidity position,
including our going concern analysis, please see the notes to the
consolidated financial statements included in Part I, Item 1 and in
the section titled “Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” each in our
Quarterly Report on Form 10-Q.
Dividends
On February 15, 2023, the Company’s Board of Trustees declared a
preferred stock dividend of $0.4375 per each Series A Preferred
Share. The preferred dividend was paid on April 17, 2023 to holders
of record on March 31, 2023.
On April 27, 2023, the Company’s Board of Trustees declared a
preferred stock dividend of $0.4375 per each Series A Preferred
Share. The preferred dividend was paid on July 14, 2023 to holders
of record on June 30, 2023.
On July 23, 2023, the Company’s Board of Trustees declared a
preferred stock dividend of $0.4375 per each Series A Preferred
Share. The preferred dividend was paid on October 13, 2023 to
holders of record on September 30, 2023.
On October 30, 2023, the Company’s Board of Trustees declared a
preferred stock dividend of $0.4375 per each Series A Preferred
Share. The preferred dividend will be paid on January 16, 2024 to
holders of record on December 29, 2023.
The Company’s Board of Trustees does not expect to declare
dividends on its common shares until such time as the Term Loan
Facility has been repaid in full.
Strategic Review
At the 2022 Annual Meeting of Shareholders on October 24, 2022,
Seritage shareholders approved the Company’s Plan of Sale. The
strategic review process remains ongoing as the Company executes
the Plan of Sale, and the Company remains open minded to pursuing
value maximizing alternatives, including a potential sale of the
Company. There can be no assurance regarding the success of the
process.
Market Update
As the Company has previously disclosed, the Company, along with
the commercial real estate market as a whole, has experienced and
continues to experience progressively more challenging market
conditions as a result of a variety of factors. These conditions
have applied and continue to apply downward pricing pressure on all
of our assets. In making decisions regarding whether and when to
transact on each of the Company’s remaining assets, the Company
will consider various factors including, but not limited to, the
breadth of the buyer universe, macroeconomic conditions, the
availability and cost of financing, as well as corporate, operating
and other capital expenses required to carry the asset. If these
challenging market conditions persist, then we expect that they
will impact the Plan of Sale proceeds from our assets and the
amounts and timing of distributions to shareholders.
Supplemental Report
A Supplemental Report will be available in the Investors section
of the Company’s website, www.seritage.com.
Non-GAAP Financial
Measures
The Company makes references to NOI and Total NOI which are
financial measures that include adjustments to accounting
principles generally accepted in the United States (“GAAP”).
Neither of NOI or Total NOI are measures that (i) represent cash
flow from operations as defined by GAAP; (ii) are indicative of
cash available to fund all cash flow needs, including the ability
to make distributions; (iii) are alternatives to cash flow as a
measure of liquidity; or (iv) should be considered alternatives to
net income (which is determined in accordance with GAAP) for
purposes of evaluating the Company’s operating performance.
Reconciliations of these measures to the respective GAAP measures
the Company deems most comparable have been provided in the tables
accompanying this press release.
Net Operating Income ("NOI”) and Total
NOI
NOI is defined as income from property operations less property
operating expenses. Other real estate companies may use different
methodologies for calculating NOI, and accordingly the Company’s
depiction of NOI may not be comparable to other real estate
companies. The Company believes NOI provides useful information
regarding Seritage, its financial condition, and results of
operations because it reflects only those income and expense items
that are incurred at the property level.
The Company also uses Total NOI, which includes its proportional
share of unconsolidated properties. This form of presentation
offers insights into the financial performance and condition of the
Company as a whole given the Company’s ownership of unconsolidated
properties that are accounted for under GAAP using the equity
method.
The Company also considers NOI and Total NOI to be a helpful
supplemental measure of its operating performance because it
excludes from NOI variable items such as termination fee income, as
well as non-cash items such as straight-line rent and amortization
of lease intangibles.
Forward-Looking
Statements
This document contains forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases,
you can identify forward-looking statements by the use of
forward-looking terminology such as “may,” “should,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” or “potential” or the negative of these words and
phrases or similar words or phrases that are predictions of or
indicate future events or trends and that do not relate solely to
historical matters. Forward-looking statements involve known and
unknown risks, uncertainties, assumptions and contingencies, many
of which are beyond the Company’s control, which may cause actual
results to differ significantly from those expressed in any
forward-looking statement. Factors that could cause or contribute
to such differences include, but are not limited to: declines in
retail, real estate and general economic conditions; the impact of
the COVID-19 pandemic on the business of the Company’s tenants and
business, income, cash flow, results of operations, financial
condition, liquidity, prospects, ability to service the Company’s
debt obligations and ability to pay dividends and other
distributions to shareholders; risks relating to redevelopment
activities; contingencies to the commencement of rent under leases;
the terms of the Company’s indebtedness and other legal
requirements to which the Company is subject; failure to achieve
expected occupancy and/or rent levels within the projected time
frame or at all; the impact of ongoing negative operating cash flow
on the Company’s ability to fund operations and ongoing
development; the Company’s ability to access or obtain sufficient
sources of financing to fund the Company’s liquidity needs; the
Company’s relatively limited history as an operating company; and
environmental, health, safety and land use laws and regulations.
For additional discussion of these and other applicable risks,
assumptions and uncertainties, see the “Risk Factors” and
forward-looking statement disclosure contained in the Company’s
filings with the Securities and Exchange Commission, including the
Company’s annual report on Form 10-K for the year ended December
31, 2022 and any subsequent Form 10-Qs. While the Company believes
that its forecasts and assumptions are reasonable, the Company
cautions that actual results may differ materially. The Company
intends the forward-looking statements to speak only as of the time
made and do not undertake to update or revise them as more
information becomes available, except as required by law.
About Seritage Growth
Properties
Seritage is principally engaged in the ownership, development,
redevelopment, management and leasing of retail and mixed-use
properties throughout the United States. As of September 30, 2023,
the Company’s portfolio consisted of interests in 42 properties
comprised of approximately 5.6 million square feet of gross
leasable area (“GLA”) or build-to-suit leased area, approximately
126 acres held for or under development and approximately 2.9
million square feet or approximately 259 acres to be disposed of.
The portfolio consists of approximately 4.3 million square feet of
GLA held by 33 wholly owned properties (such properties, the
“Consolidated Properties”) and 1.2 million square feet of GLA held
by 9 unconsolidated entities (such properties, the “Unconsolidated
Properties”).
SERITAGE GROWTH
PROPERTIES
CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share amounts)
(Unaudited)
September 30, 2023
December 31, 2022
ASSETS
Investment in real estate
Land
$
108,366
$
172,813
Buildings and improvements
324,781
463,616
Accumulated depreciation
(35,119
)
(57,330
)
398,028
579,099
Construction in progress
131,015
185,324
Net investment in real estate
529,043
764,423
Real estate held for sale
110,616
455,617
Investment in unconsolidated entities
208,672
382,597
Cash and cash equivalents
98,886
133,480
Restricted cash
15,962
11,459
Tenant and other receivables, net
20,638
41,495
Lease intangible assets, net
930
1,791
Prepaid expenses, deferred expenses and
other assets, net
31,543
50,859
Total assets (1)
$
1,016,290
$
1,841,721
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Term loan facility, net
$
400,000
$
1,029,754
Accounts payable, accrued expenses and
other liabilities
56,028
89,368
Total liabilities (1)
456,028
1,119,122
Commitments and contingencies (Note 9)
Shareholders' Equity
Class A common shares $0.01 par value;
100,000,000 shares authorized; 56,182,522 and 56,052,546 shares
issued and outstanding as of September 30, 2023 and December 31,
2022, respectively
562
561
Series A preferred shares $0.01 par value;
10,000,000 shares authorized; 2,800,000 shares issued and
outstanding as of September 30, 2023 and December 31, 2022;
liquidation preference of $70,000
28
28
Additional paid-in capital
1,361,384
1,360,411
Accumulated deficit
(802,801
)
(640,531
)
Total shareholders' equity
559,173
720,469
Non-controlling interests
1,089
2,130
Total equity
560,262
722,599
Total liabilities and equity
$
1,016,290
$
1,841,721
(1) The Company's consolidated balance
sheets include assets and liabilities of consolidated variable
interest entities ("VIEs"). See Note 2. The consolidated balance
sheets, as of September 30, 2023, include the following amounts
related to our consolidated VIEs, excluding the Operating
Partnership: $3.3 million of land, $2.8 million of building and
improvements, $(0.8) million of accumulated depreciation and $2.0
million of other assets included in other line items. The Company's
consolidated balance sheets as of December 31, 2022, include the
following amounts related to our consolidated VIEs, excluding the
Operating Partnership: $6.6 million of land, $3.9 million of
building and improvements, $(1.0) million of accumulated
depreciation and $4.0 million of other assets included in other
line items.
SERITAGE GROWTH
PROPERTIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except per
share amounts)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
REVENUE
Rental income
$
4,525
$
23,253
$
10,459
$
81,755
Management and other fee income
523
248
1,152
2,355
Total revenue
5,048
23,501
11,611
84,110
EXPENSES
Property operating
4,564
9,700
17,945
31,535
Real estate taxes
1,204
6,483
4,910
21,056
Depreciation and amortization
2,913
9,169
11,628
31,772
General and administrative
8,030
10,811
30,349
30,996
Litigation settlement
—
533
—
35,533
Total expenses
16,711
36,696
64,832
150,892
Gain on sale of real estate, net
18,506
45,433
64,386
112,449
(Loss) gain on sale of interest in
unconsolidated entities
(916
)
(139
)
6,407
(139
)
Impairment of real estate assets
—
(10,275
)
(107,043
)
(120,609
)
Equity in income (loss) of unconsolidated
entities
993
(2,275
)
(49,077
)
(69,071
)
Interest and other income
2,030
(1,047
)
17,484
(937
)
Interest expense
(9,763
)
(21,916
)
(37,493
)
(67,167
)
Loss before income taxes
(813
)
(3,414
)
(158,557
)
(212,256
)
Provision for income taxes
(89
)
(67
)
(38
)
(295
)
Net loss
(902
)
(3,481
)
(158,595
)
(212,551
)
Net loss attributable to non-controlling
interests
—
42
—
46,152
Net loss attributable to Seritage
$
(902
)
$
(3,439
)
$
(158,595
)
$
(166,399
)
Preferred dividends
(1,225
)
(1,225
)
(3,675
)
(3,675
)
Net loss attributable to Seritage common
shareholders
$
(2,127
)
$
(4,664
)
$
(162,270
)
$
(170,074
)
Net loss per share attributable to
Seritage Class A common shareholders - Basic
$
(0.04
)
$
(0.08
)
$
(2.89
)
$
(3.57
)
Net loss per share attributable to
Seritage Class A common shareholders - Diluted
$
(0.04
)
$
(0.08
)
$
(2.89
)
$
(3.57
)
Weighted average Class A common shares
outstanding - Basic
56,183
55,361
56,139
47,600
Weighted average Class A common shares
outstanding - Diluted
56,183
55,361
56,139
47,600
Reconciliation of Net Loss to NOI and
Total NOI (in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
NOI and Total NOI
2023
2022
2023
2022
Net loss
$
(902
)
$
(3,481
)
$
(158,595
)
$
(212,551
)
Termination fee income
—
—
—
(369
)
Management and other fee income
(523
)
(248
)
(1,152
)
(2,355
)
Depreciation and amortization
2,913
9,169
11,628
31,772
General and administrative expenses
8,030
10,811
30,349
30,996
Litigation settlement
—
533
—
35,533
Equity in loss of unconsolidated
entities
(993
)
2,275
49,077
69,071
Loss (gain) on sale of interest in
unconsolidated entities
916
139
(6,407
)
139
Gain on sale of real estate, net
(18,506
)
(45,433
)
(64,386
)
(112,449
)
Impairment of real estate assets
—
10,275
107,043
120,609
Interest and other income
(2,030
)
1,047
(17,484
)
937
Interest expense
9,763
21,916
37,493
67,167
(Benefit) provision for income taxes
89
67
38
295
Straight-line rent
1,504
2,873
16,142
(1,447
)
Above/below market rental expense
45
54
138
175
NOI
$
306
$
9,997
$
3,884
$
27,523
Unconsolidated entities
Net operating income of unconsolidated
entities
3,445
2,450
6,404
6,563
Straight-line rent
(2,629
)
(305
)
(3,069
)
(860
)
Above/below market rental expense
(3
)
8
(1
)
19
Total NOI
$
1,119
$
12,150
$
7,218
$
33,245
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231108752267/en/
Seritage Growth Properties (212) 355-7800 IR@Seritage.com
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