Seritage Growth Properties (NYSE: SRG) (the “Company”), a
national owner and developer of 161 retail, residential and
mixed-use properties today reported financial and operating results
for the three months ended March 31, 2022.
“2022 is off to a great start. The quarter has been marked by
strong momentum in leasing, significant new tenant openings,
progress on current developments and entitlements, as well as
robust sales activity on the disposition pipeline. This quarter
demonstrates that even while exploring strategic alternatives for
the Company, we can and will continue implementing our value
creation activities across every facet of the portfolio” said
Andrea Olshan, Chief Executive Officer and President.
REIT Status
On March 31, 2022, the Company announced that its Board of
Trustees, with the recommendation of the Special Committee,
approved a plan to terminate the Company's REIT status and become a
taxable C Corporation, effective for the year ending December 31,
2022. As a result, the Company is no longer required to operate
under REIT rules, including the requirement to distribute at least
90% of REIT taxable income to its stockholders, which provides the
Company with greater flexibility to use its free cash flow.
Effective January 1, 2022, the Company is subject to federal and
state income taxes on its taxable income at applicable tax rates
and is no longer entitled to a tax deduction for dividends paid.
The Company operated as a REIT for the 2021 tax year, and existing
REIT requirements and limitations, including those established by
the Company’s organizational documents, remained in place until
December 31, 2021.
Financial Highlights:
For the three months ended March 31, 2022:
- Net income attributable to common shareholders of ($53.4)
million, or ($1.22) per share
- Total Net Operating Income (“Total NOI”) of $10.5 million
- As of March 31, 2022, the Company had cash on hand of $61.0
million, including $7.2 million of restricted cash
Highlights
- Signed 13 leases covering 249 thousand square feet (178
thousand at share) in the first quarter at an average projected
annual rent of $47.84 PSF ($39.75 PSF at share).
- Signed leases in the first quarter included:
- A new lease with Amazon at San Diego UTC covering approximately
123 thousand square feet (61.5 thousand at share) with an average
projected annual rent of $68.40 PSF gross;
- Seven new leases covering approximately 33 thousand square feet
(26 thousand at share) of retail at Premier assets at an average
projected annual rent of $64.11 PSF ($61.40 PSF at share) net;
- Two leases covering approximately 86 thousand square feet at
Multi-Tenant Retail assets at an average projected annual rent of
$12.00 PSF gross, bringing occupancy of the Multi-Tenant Retail
portfolio up to 82.7%;
- One retail lease covering approximately three thousand square
feet at a Non-Core asset at an average projected annual rent of
$52.04 PSF net; and
- Two retail leases covering approximately four thousand square
feet (two thousand at share) at other unconsolidated entities
signed at an average projected annual rent of $44.01 PSF net;
- Subsequent to quarter end, the Company has signed additional
leases totaling 61 thousand square feet at a base rent of $23.75
PSF net. The Company currently has a pipeline of leases in active
negotiations of over 275 thousand square feet at an average rent of
$32.19 PSF net ($31.63 PSF at share) projected to bring the
Company's occupancy up to 85.3% and 68.9% for MT Retail and Premier
Mixed-use, respectively;
- Leases signed subsequent to quarter end were:
- 43 thousand square feet of retail at Multi-Tenant Retail assets
at a base rent of $18.57 PSF net;
- Four thousand square feet of retail at Premier assets at a base
rent of $105.00 PSF net; and
- 14 thousand square feet of retail at Premier at Non-core assets
at a base rent of $16.00 PSF net;
- Brought 19 tenants online representing 327 thousand square feet
(293 thousand at share) and $5 million in annual base rent ($4.1
million at share);
- Generated $9.0 million of gross proceeds through disposition
activity during the three months ended March 31, 2022. The Company
temporarily slowed the pace of closings until the election to be
taxed as a C Corporation. Subsequent to quarter end, the Company
generated $74.7 million of gross proceeds through disposition
activity. The Company has additional asset sales under contract for
anticipated gross proceeds of $85.0 million, subject to buyer
diligence and closing conditions; and
- Seritage is currently marketing over $700 million of properties
for sale at estimated fair value (before considering the strategic
review process), which would provide sufficient proceeds to qualify
the Company for the extension of its $1.44 billion term loan
facility (the “Term Loan Facility”), assuming all deals closed
prior to July 2023 as anticipated.
Portfolio
The table below represents a summary of the Company’s properties
by planned usage as of March 31, 2022:
Planned Usage
Total
Built SF / Acreage (2) Leased SF (2)(3) Avg.
Acreage / Site Consolidated Multi-Tenant Retail
40
5,422 sf / 532 acres
4,483
13.3
Residential
31
672 sf (4) / 423 acres
232
13.6
Premier (5)
5
285 sf / 99 acres
169
19.8
Non-Core (1)
60
8,804 sf / 740 acres
1,563
12.3
Unconsolidated
Other Entities
21
1,599 sf / 310 acres
549
14.8
Residential
2
106 sf (4) / 23 acres
25
11.3
Premier (5)
2
165 sf / 16 acres
99
8.0
(1)
Represents assets the Company may
strategically monetize
(2)
Square footage is presented at the
Company’s proportional share
(3)
Based on signed leases at March 31,
2022
(4)
Represents tenants currently in place at
assets intended for residential use
(5)
Refer to Premier Mixed-Use below for
information on entitlements
Multi-Tenant Retail
During the three months ended March 31, 2022, the Company
invested $4.4 million in its multi-tenant retail properties and the
development project in Ft. Wayne, Ind. had its grand opening. The
remaining capital expenditures in the multi-tenant retail portfolio
are primarily comprised of tenant improvements. During the first
quarter, the Company opened stores representing 129 thousand square
feet and $2.4 million of annual base rent. The portfolio inclusive
of SNO is 82.7% leased at an average lease term of over 10 years
and average rents of $16.83 PSF.
The table below provides a summary of all Multi-Tenant Retail
signed leases as of March 31, 2022, including unconsolidated
entities at the Company’s proportional share:
(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
149
3,919
72.3%
$ 67,369
88.6%
$ 17.19
SNO retail leases (1)
21
563
10.4%
8,648
11.4%
15.35
Total retail leases
170
4,482
82.7%
$ 76,017
100.0%
$ 16.96
(1) SNO = signed not yet opened leases.
During the three months ended March 31, 2022, the Company signed
new leases at its retail properties totaling 86 thousand square
feet at an average base rent of $12.00 PSF gross. The Company has
3.9 million in-place leased square feet and approximately 563
thousand square feet signed but not opened. Seritage has total
occupancy of 82.7% for its multi-tenant retail properties. As of
March 31, 2022, there is an additional approximately 940 thousand
square feet available for lease in the Multi-Tenant Retail
portfolio, with a pipeline of multi-tenant retail leases of 142
thousand square feet of leases at an average base rent of $30.35
PSF net. The Company has also identified 19 potential pad sites for
development subject to governmental and REA approval at the
sites.
(in thousands except number of leases and PSF data)
Number
of Annual SNO Leases GLA ABR
Rent PSF As of December 31, 2021
25
566
$ 9,445
$ 16.68
Opened
(8)
(129)
(2,373)
18.37
Signed
3
123
1,444
11.75
Asset Category Changes (1)
1
3
132
38.00
As of March 31, 2022
21
563
$ 8,648
$ 15.35
(1) Represents SRG assets that were moved into the MT Retail
category during the first quarter of 2022.
Premier Mixed-Use
The Company has three premier mixed-use projects in the active
leasing stage: Dallas, TX, Santa Monica, CA and Aventura, FL. For
the office development components of its mixed-use projects, which
are all entitled, the Company is seeking build to suit
opportunities and is not looking to develop speculatively. As of
March 31, 2022, the Company has 76 thousand in-place leased square
feet (55 thousand at share), 291 thousand square feet signed but
not opened (213 thousand at share), and 247 thousand square feet
available for lease (182 thousand at share). The Company generated
a leasing pipeline of over 50 thousand square feet. Additionally,
the Company has entitled 1.9 million square feet of office, 1,043
residential units and 325 thousand square feet of retail space.
Aventura:
During the first quarter of 2022, the Company continued to
advance 216,000 square feet of mixed-use activation at the project
in Aventura, FL. Core and shell work is approximately 90% complete
and initial tenant turnovers commenced during the first quarter of
2022. The Company remains on track to grand open the project in the
fourth quarter of 2022.
During the quarter ended March 31, 2022, the Company signed new
leases totaling 19 thousand square feet at an average base rent of
$56.71 PSF net. As of March 31, 2022, the Company has 135 thousand
square feet signed but not opened. Subsequent to quarter end, the
Company signed new leases totaling four thousand square feet at a
base rent of $105.00 PSF net for retail. With occupancy at 62.7%,
the Company has 80 thousand square feet available for lease, and
leasing activity on over 50 thousand square feet.
San Diego UTC:
The Company successfully opened its project at UTC in San Diego,
CA in the fourth quarter of 2021 with approximately 17 thousand
square feet of first to market tenants and expects to open an
additional 150,000 to 165,000 square feet of tenants in 2022
bringing occupancy to approximately 84% to 91%. In conjunction with
the city of San Diego’s Community Plan Update, the Company is
advancing entitlements to activate its +/- 8.5 acres of parking
lots for potentially millions of additional square feet of life
science, office, and residential uses.
During the quarter ended March 31, 2022, the Company signed new
leases totaling 137 thousand square feet (68.5 thousand square feet
at share) at an average base rent of $68.99 PSF gross. As of March
31, 2022, the property has 40 thousand in-place leased square feet
and 156 thousand square feet signed but not opened. With occupancy
at 87.5% (100% of office space is leased and approximately 72.4% of
Retail), the Company has now stabilized the first phase and has 28
thousand square feet available for lease. The company has 5
thousand square feet of leases in negotiation at this time.
The table below provides a summary of all signed leases at
Premier assets as of March 31, 2022, including unconsolidated
entities at the Company’s proportional share:
(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
18
76
16.9%
$ 4,515
23.6%
$ 59.23
SNO retail leases (1)
23
107
23.7%
8,373
43.8%
78.62
SNO office leases (1)
3
106
23.7%
6,218
32.6%
58.46
Total retail leases
44
289
64.3%
$ 19,106
100.0%
$ 66.09
(in thousands except number of leases and PSF data)
Number
of Annual SNO Leases GLA ABR
Rent PSF As of December 31, 2021
22
163
$ 9,973
$ 61.04
Opened
(3)
(2)
(195)
81.22
Sold / Contributed to JVs / terminated
(1)
(36)
(1,002)
28.00
Signed
8
88
5,815
66.33
As of March 31, 2022
26
213
$ 14,591
$ 68.55
During the three months ended March 31, 2022, the Company
invested $13.3 million in its consolidated development and
operating properties and an additional $0.9 million into its
unconsolidated entities.
Residential
During the first quarter of 2022, the Company received full
entitlements for 300 units at its property on Iowa Avenue in
Riverside CA and continued to advance is entitlements in West
Covina, CA and Riverside CA. The Company continues to advance
residential plans and entitlement applications for 20 to 30
properties with a target of 4,500 to 5,500 residential units.
Dispositions
First quarter disposition closings were paused until the Company
made the decision to revoke its REIT status. As such, during the
three months ended March 31, 2022, the Company sold one property,
generating $9.0 million of gross proceeds at a 4.3% capitalization
rate. Subsequent to quarter end the Company sold 7 properties for
proceeds of $74.7 million, 4 of which were leased at a 5.9% blended
cap rate and 3 of which were vacant.
During that time the Company was able to generate a robust sales
pipeline. As of May 9, 2022, the Company had assets under contract
for sale representing anticipated gross proceeds of $85.0 million,
subject to customary buyer diligence and closing conditions. Since
Seritage began its capital recycling program in July 2017, the
Company has raised approximately $1.5 billion of gross cash
proceeds from the sale of wholly-owned properties or joint venture
interests in 123 properties, plus outparcels at various properties.
Seritage is currently marketing over $700 million of properties for
sale at estimated fair value, which would provide sufficient
proceeds to qualify the Company for the extension of its $1.44
billion Term Loan Facility, assuming all deals closed prior to July
2023 as anticipated. This is all in addition to and not part of the
potential proceeds from any actions taken as part of the strategic
review process currently underway.
Financial Summary
The table below provides a summary of the Company’s financial
results for the three months ended March 31, 2022:
(in thousands except per share amounts)
Three Months Ended
March 31, 2022 December 31, 2021 Net (loss)/income
attributable to Seritagecommon shareholders
$
(53,430
)
$
71,721
Net (loss)/income per share attributable to Seritagecommon
shareholders
(1.22
)
1.64
Total NOI
10,493
10,456
For the quarter ended March 31, 2022:
- Total NOI for the first quarter of 2022 reflects the impact of
property sales and the commencement of new leases in the first
quarter.
(in thousands)
Three Months Ended Consolidated Properties
March 31, 2022 March 31, 2021 Multi-tenant retail
$
13,635
$
10,674
Premier
(1,400
)
(468
)
Residential
(2,171
)
(2,286
)
Sell
(1,150
)
(338
)
Sold
55
326
Total
8,969
7,908
Unconsolidated Properties Residential
(289
)
-
Premier
(209
)
145
Other joint ventures
2,022
1,380
Total
1,524
1,525
Total NOI
$
10,493
$
9,433
- The Company collected 96% of its billed rent and other
recoverable expenses for the first quarter and there were no
additional deferrals.
As of March 31, 2022, the Company had cash on hand of $61.0
million, including $7.2 million of restricted cash. The Company
expects to use these sources of liquidity, together with a
combination of future sales and/or potential debt and capital
markets transactions, to fund its operations and select development
activity. The availability of funding from sales of assets,
partnerships and credit or capital markets transactions is subject
to various conditions, including the consent of the Company’s
lender under its $1.44 billion Term Loan Facility, and there can be
no assurance that such transactions will be consummated. For more
information on our liquidity position, please see the notes to the
condensed consolidated financial statements included in Part I,
Item 1 and in the section entitled “Management’s Discussion and
Analysis of Financial Condition and Results of Operations,” each in
our Quarterly Report on Form 10-Q.
Dividends
On February 16, 2022, 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 15, 2022 to holders
of record on March 31, 2022.
On April 26, 2022, 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 payable on July 15, 2022 to
holders of record on June 30, 2022.
The Company’s Board of Trustees does not expect to declare
dividends on its common shares in 2022.
Board of Trustees
Matters
On March 1, 2022, the Company announced that Mr. Lampert retired
as its Chairman and resigned from its board of trustees (the “Board
of Trustees” effective March 1, 2022.
On March 30, 2022, the Company announced that the Board of
Trustees elected Adam S. Metz as a trustee of the Company and as a
member of Class I of the Board of Trustees, effective as of March
30, 2022.
On April 28, 2022, the Company announced that the Board of
Trustees elected Mitchell Sabshon, Talya Nevo-Hacohen and Mark
Wilsmann as trustees of the Company and as members of Class I, II
and III of the Board of Trustees, respectively, effective as of
April 26, 2022. On April 28, 2022, the Company also announced that
Messrs. Fawer and Steinberg resigned from the Board, effective upon
Mr. Sabshon’s, Ms. Nevo-Hacohen’s and Mr. Wilsmann’s
appointments.
Review of Strategic
Alternatives
On March 1, 2022, the Company announced that its Board of
Trustees has commenced a process to review a broad range of
strategic alternatives to enhance shareholder value. The Board of
Trustees created a special committee of the Board of Trustees (the
“Special Committee”) to oversee the process. The Special Committee
has retained a financial advisor. The strategic review process
remains ongoing. There can be no assurance that the review process
will result in any transaction or any strategic change at this
time.
Supplemental Report
A Supplemental Report will be available in the Investors section
of the Company’s website, www.seritage.com.
COVID-19 Pandemic
The Coronavirus (“COVID-19”) pandemic has caused significant
impacts on the real estate industry in the United States, including
the Company’s properties.
As a result of the development, fluidity and uncertainty
surrounding this situation, the Company expects that these
conditions may change, potentially significantly, in future periods
and results for the three months ended March 31, 2022 may not be
indicative of the impact of the COVID-19 pandemic on the Company’s
business for future periods. As such, the Company cannot reasonably
estimate the impact of COVID-19 on its financial condition, results
of operations or cash flows over the foreseeable future.
Non-GAAP Financial
Measures
The Company makes reference 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, the Company’s historical exposure to
Sears Holdings and the effects of its previously announced
bankruptcy filing; the litigation filed against us and other
defendants in the Sears Holdings adversarial proceeding pending in
bankruptcy court; 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, 2021 and in Part II, Item 1A of the
Company’s Quarterly Report on Form 10-Q for the three months ended
March 31, 2022. 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 March 31, 2022, the
Company’s portfolio consisted of interests in 161 properties
comprised of approximately 19.0 million square feet of gross
leasable area ("GLA") or build-to-suit leased area, approximately
600 acres held for or under development and approximately 8.8
million square feet or approximately 740 acres to be disposed of.
The portfolio consists of approximately 15.2 million square feet of
GLA held by 136 wholly owned properties (such properties, the
“Consolidated Properties”) and 3.8 million square feet of GLA held
by 25 unconsolidated entities (such properties, the “Unconsolidated
Properties”).
SERITAGE GROWTH PROPERTIES CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands, except share and
per share amounts) (Unaudited)
March 31, 2022 December 31, 2021 ASSETS Investment in
real estate Land
$
437,431
$
475,667
Buildings and improvements
927,214
994,221
Accumulated depreciation
(153,454
)
(154,971
)
1,211,191
1,314,917
Construction in progress
388,323
381,194
Net investment in real estate
1,599,514
1,696,111
Real estate held for sale
92,078
—
Investment in unconsolidated entities
471,271
498,563
Cash and cash equivalents
53,807
106,602
Restricted cash
7,152
7,151
Tenant and other receivables, net
38,172
29,111
Lease intangible assets, net
13,151
14,817
Prepaid expenses, deferred expenses and other assets, net
60,828
61,783
Total assets (1)
$
2,335,973
$
2,414,138
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Term loan
facility, net
$
1,439,437
$
1,439,332
Sales-leaseback financing obligations
20,639
20,627
Accounts payable, accrued expenses and other liabilities
98,773
109,379
Total liabilities (1)
1,558,849
1,569,338
Commitments and contingencies (Note 9) Shareholders'
Equity Class A common shares $0.01 par value; 100,000,000 shares
authorized;43,675,446 and 43,632,364 shares issued and
outstandingas of March 31, 2022 and December 31, 2021, respectively
437
436
Series A preferred shares $0.01 par value; 10,000,000 shares
authorized;2,800,000 shares issued and outstanding as of March 31,
2022December 31, 2021; liquidation preference of $70,000
28
28
Additional paid-in capital
1,241,583
1,241,048
Accumulated deficit
(607,201
)
(553,771
)
Total shareholders' equity
634,847
687,741
Non-controlling interests
142,277
157,059
Total equity
777,124
844,800
Total liabilities and shareholders' equity
$
2,335,973
$
2,414,138
(1) The Company's condensed consolidated balance sheets include
assets and liabilities of consolidated variable interest entities
("VIEs"). See Note 2. The condensed consolidated balance sheets, as
of March 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, $(0.9)
million of accumulated depreciation and $4.0 million of other
assets included in other line items. The Company's condensed
consolidated balance sheets as of December 31, 2021, 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, $(0.9) million of accumulated
depreciation and $4.0 million of other assets included in other
line items.
SERITAGE GROWTH PROPERTIES CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except
per share amounts) (Unaudited)
Three Months Ended March 31,
2022
2021
REVENUE Rental income
$
29,084
$
31,146
Management and other fee income
1,821
135
Total revenue
30,905
31,281
EXPENSES Property operating
11,032
10,643
Real estate taxes
8,150
10,155
Depreciation and amortization
11,934
13,142
General and administrative
9,092
11,232
Total expenses
40,208
45,172
(Loss)/gain on sale of real estate, net
(1,015
)
24,208
Impairment of real estate assets
(991
)
(1,700
)
Equity in loss of unconsolidated entities
(33,076
)
(1,162
)
Interest and other income
11
7,624
Interest expense
(22,588
)
(26,150
)
Loss before taxes
(66,962
)
(11,071
)
(Provision)/benefit from income taxes
(25
)
138
Net loss
(66,987
)
(10,933
)
Net loss attributable to non-controlling interests
14,782
3,213
Net loss attributable to Seritage
$
(52,205
)
$
(7,720
)
Preferred dividends
(1,225
)
(1,225
)
Net loss attributable to Seritage common shareholders
$
(53,430
)
$
(8,945
)
Net loss per share attributable to Seritage Class Acommon
shareholders - Basic
$
(1.22
)
$
(0.23
)
Net loss per share attributable to Seritage Class Acommon
shareholders - Diluted
$
(1.22
)
$
(0.23
)
Weighted average Class A common sharesoutstanding - Basic
43,634
39,477
Weighted average Class A common sharesoutstanding - Diluted
43,634
39,477
Reconciliation of Net Income/(Loss) to NOI and Total NOI (in
thousands)
Three Months Ended NOI and Total NOI
March 31, 2022
December 31, 2021
March 31, 2021
Net (loss)/income
$
(66,987
)
$
93,601
$
(10,933
)
Termination fee income
(277
)
(388
)
(2,611
)
Management and other fee (income)
(1,821
)
(434
)
(135
)
Depreciation and amortization
11,934
11,570
13,142
General and administrative expenses
9,092
9,947
11,232
Equity in loss of unconsolidated entities
33,076
202
1,162
(Gain)/loss on sale of real estate, net
1,015
(156,602
)
(24,208
)
Impairment of real estate assets
991
25,773
1,700
Interest and other income
(11
)
(1,083
)
(7,624
)
Interest expense
22,588
26,128
26,150
Provision/(benefit) from income taxes
25
(2
)
(138
)
Straight-line rent/(expense)
(721
)
(236
)
210
Above/below market rental (income)/expense
65
65
(39
)
NOI
$
8,969
$
8,541
$
7,908
Unconsolidated entities Net operating
income of unconsolidated entities
1,846
2,193
2,437
Straight-line rent/(expense)
(328
)
(309
)
(137
)
Above/below market rental (income)/expense
6
12
(33
)
Termination fee (income)/expense
—
19
(742
)
Total NOI
$
10,493
$
10,456
$
9,433
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220510006363/en/
Seritage Growth Properties John Garilli (212) 355-7800
IR@Seritage.com
Seritage Growth Properties (NYSE:SRG)
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