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 six months ended June 30, 2024.
“In the second quarter we continued to execute on our Plan of
Sale, building a pipeline of accepted offers totaling over $150
million of gross proceeds. We expect to continue to use sale
proceeds to pay down our term loan while maintaining appropriate
cash balances to fund ongoing operations. As we look ahead, despite
the continued uncertainty surrounding the economy, the November
elections, and the increasingly tenuous geopolitical climate, we
remain focused on our plan of sale while continuing to position our
portfolio and balance sheet for a potential strategic transaction.”
said Andrea L. Olshan, Chief Executive Officer.
Sale Highlights:
- Generated $40.4 million of gross proceeds from sales including:
- $28.0 million in gross proceeds from one income producing
Multi-Tenant Retail asset reflecting a 5.3% capitalization
rate;
- $3.8 million in gross proceeds from one income producing
Non-Core asset reflecting a 7.8% capitalization rate; and
- $8.3 million in gross proceeds from two vacant/non-income
producing Non-Core assets sold at $20.78 PSF eliminating $0.7
million of carry costs.
- As of August 14, 2024, the Company has five assets under
contract for anticipated gross proceeds of $138.6 million. All
assets for sale are subject to customary closing conditions. Of
these five assets, two are for sale with no due diligence
contingencies for total anticipated gross proceeds of $51.9 million
and three assets are under contract for sale subject to customary
due diligence for anticipated gross proceeds of $86.7 million at
share including:
- $53.3 million in gross proceeds from two income producing
Multi-Tenant Retail assets reflecting a 8.4% blended capitalization
rate;
- $45.1 million in gross proceeds from two vacant/non- income
producing Non-Core assets to be sold at $112.84 PSF eliminating
$0.9 million of carry costs; and
- $40.2 million in gross proceeds from monetizing an
unconsolidated entity interest.
- The Company has accepted offers on and is currently negotiating
definitive purchase and sale agreements on two assets for total
gross proceeds approximately $13.8 million from monetizing two
unconsolidated entity interests.
- The Company has one Non-Core asset in an active auction process
with a reserve price of $5.0 million.
Financial Highlights:
For the three months ended June 30, 2024:
- As of June 30, 2024, the Company had cash on hand of $100.5
million, including $13.8 million of restricted cash. As of August
13, 2024, the Company had cash on hand of $87.2 million, including
$13.6 million of restricted cash.
- Net loss attributable to common shareholders of ($102.5)
million, or ($1.82) per share.
- Net Operating Income-cash basis at share (“NOI-cash basis at
share”) of (0.1) thousand.
- During the quarter, the Company made $50.0 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 $280.0 million at June 30,
2024.
Other Highlights
- Signed two leases covering 7.1 thousand square feet in the
second quarter at a projected average annual net rent of $118.10
PSF.
- Opened four tenants in the second quarter totaling
approximately 13.6 thousand square feet at an average net rent of
$56.27 PSF.
Future Sales Projections
The data below provides additional information regarding current
estimated gross sales proceeds per asset in the portfolio as of
August 14, 2024, 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 at the appropriate time
based on market conditions and, as a result, any sales thereof are
anticipated to occur in 2024 and beyond. Sales projections,
including timing of sale, 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
- Eight Premier Assets (Dallas & San Diego are each assumed
to be sold in two transactions)
- One Asset $15 - $20 million
- Two Assets $30 - $35 million, each
- One Assets $50 - $60 million
- One Asset $60 - $70 million
- One Asset $70 - $80 million
- One Asset $100 - $150 million
- One Asset $150 - $200 million
Primary Markets
- One Multi-Tenant Asset $25 - $30 million
- Three Joint Venture Assets $5 - $10 million, each
- One Joint Venture Asset under $5 million
Secondary Markets
- One Residential Asset with adjacent Retail asset $5 - $10
million
- One Non-Core Asset $5 - $10 million
Portfolio
The table below represents a summary of the Company’s properties
by planned usage as of June 30, 2024 (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
4
633 sf / 73 acres
462
72.9%
18.3
Residential (3)
2
33 sf / 19 acres
33
100.0%
9.5
Premier
4
228 sf / 69 acres
170
74.5%
17.2
Non-Core (4)
4
681 sf /58 acres
-
0.0%
14.4
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 June 30, 2024. (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 June 30, 2024, the Company
invested $0.4 million in its Multi-Tenant retail properties. Any
future 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 June 30, 2024 (in thousands
except for 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
14
453.7
71.6
%
$
11,516.4
92.6
%
$
25.38
SNO retail leases (1)
1
8.0
1.3
%
175.0
1.4
%
231.89
Tenants in lease negotiation
1
102.0
16.1
%
749.5
6.0
%
7.35
Total retail leases
16
563.7
89.0
%
$
12,440.9
100.0
%
$
22.07
(1) SNO = signed not yet opened
leases.
During the three months ended June 30, 2024, the Company has a
leasing pipeline of over 102 thousand square feet. The Company has
454 thousand leased square feet and approximately 8 thousand square
feet signed but not opened. The Company has total occupancy of
72.9% for its Multi-Tenant retail properties. As of June 30, 2024,
there is an additional approximately 70 thousand square feet
available for lease.
Number of
Leased
Gross Annual Base
Gross Annual
SNO Leases
GLA
Rent ("ABR")
Rent PSF ("ABR PSF")
As of March 31, 2024
4
46.2
$
1,174.9
$
25.54
Opened
(1
)
(13.9
)
(513.4
)
36.97
Sold / terminated
(2
)
(24.3
)
(486.5
)
20.02
As of June 30, 2024
1
8.0
$
175.0
$
21.88
Premier Mixed-Use
The Company has two premier mixed-use projects in the active
leasing/tenant opening stage: Aventura, FL and Santa Monica, CA. As
of June 30, 2024, the Company has 345 thousand in-place leased
square feet (239 thousand square feet at share), 37 thousand square
feet signed but not opened (37 thousand square feet at share), and
161 thousand square feet available for lease (110 thousand square
feet at share).
The table below provides a summary of all signed leases at
Premier assets as of June 30, 2024, including unconsolidated
entities at the Company’s proportional share (in thousands except
for number of leases and PSF data):
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
38
130.6
33.9
%
$
9,232.4
47.8
%
$
70.69
In-place office leases
4
108.0
28.0
%
6,889.5
35.7
%
63.82
SNO retail leases as of March 31,
2024(1)
14
43.1
$
3,154.0
73.22
Opened
(3
)
(12.7
)
(814.6
)
62.69
Signed
2
7.1
839.2
119.86
SNO retail leases as of June 30,
2024(1)
13
37.5
18.7
%
$
3,178.5
16.5
%
$
83.7
Total diversified leases as of June 30,
2024
55
276.1
63.3
%
$
19,300.4
100.0
%
$
69.91
(1) SNO = Signed not yet opened leases
During the three months ended June 30, 2024, the Company
invested $5.9 million in its consolidated premier development and
operating properties and an additional $0.3 million into its
unconsolidated premier entities.
Aventura
During the second quarter of 2024, the Company continued to
advance 216.1 thousand square feet of office and retail leasing at
the project in Aventura, FL. The Company is finalizing construction
on the asset. As of June 30, 2024, 121.6 thousand square feet or
56.0% of the asset is opened and the Company will continue with
rolling openings going forward.
With 73.1% leased through June 30, 2024, the Company has 58.1
thousand square feet or 26.9% available for lease, of which
approximately 8 thousand square feet or 4.0% is in lease
negotiation. See the "Impairment" section below for a discussion of
the impairment the Company recognized for the three months ended
June 30, 2024 on its development property in Aventura, FL.
Financial Summary
The table below provides a summary of the Company’s financial
results for the three months ended June 30, 2024 (in thousands
except for per share amounts):
Three Months Ended
June 30, 2024
June 30, 2023
Net loss attributable to Seritage common
shareholders
$
(102,452
)
$
(96,932
)
Net loss per share attributable to
Seritage common shareholders
(1.82
)
(1.73
)
NOI-cash basis at share
(137
)
2,996
For the quarter ended June 30, 2024:
- NOI-cash basis at share for the second quarter of 2024 reflects
the impact of ($0.8) million NOI-cash basis at share relating to
sold properties.
NOI-cash basis at share is comprised of:
(in thousands)
Three Months Ended June
30,
Consolidated Properties
2024
2023
Multi-tenant retail
$
1,863
$
3,920
Premier
(1,587
)
(402
)
Non-Core
(483
)
(1,388
)
Sold
(808
)
(138
)
Total
(1,015
)
1,992
Unconsolidated Properties
Residential
-
194
Premier
1,320
306
Other joint ventures
(442
)
504
Total
878
1,004
NOI-cash basis at share
$
(137
)
$
2,996
As of June 30, 2024, the Company had cash on hand of $100.5
million, including $13.8 million of restricted cash. The Company
expects to use these sources of liquidity, together with a
combination of future sales and/or potential alternative financing
arrangements, 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.
Impairment - Aventura
During the quarter ended June 30, 2024, due to ongoing
negotiations for rent relief with existing tenants that began in
the second quarter of 2024 which triggered the need for an
impairment analysis pursuant to ASC 360, Property, Plant and
Equipment, the Company recognized an $85.8 million impairment on
its development property in Aventura, FL, primarily due to changes
in discount rates and residual capitalization rates. In accordance
with GAAP, the impairment was recognized as a result of the
carrying value of the asset exceeding the undiscounted cash flows
over the estimated holding period. The amount of the impairment is
determined by applying a discount to the projected cash flows and
writing down the carrying value to the estimated current fair
value. The Company will continue to evaluate its portfolio,
including its development plans and holding periods, which may
result in additional impairments in future periods.
Litigation Matters
On July 1, 2024, a purported shareholder of the Company filed a
class action lawsuit in the U.S. District Court for the Southern
District of New York, captioned Zhengxu He, Trustee of the He &
Fang 2005 Revocable Living Trust v. Seritage Growth Properties,
Case No. 1:24:CV:05007, alleging that the Company, the Company’s
Chief Executive Officer, and the Company’s Chief Financial Officer
violated the federal securities laws. The complaint seeks to bring
a class action on behalf of all persons and entities that purchased
or otherwise acquired Company securities between July 7, 2022 and
May 10, 2024. The complaint alleges that the defendants violated
federal securities laws by issuing false, misleading, and/or
omissive disclosures concerning the Company’s alleged lack of
effective internal controls regarding the identification and review
of impairment indicators for investments in real estate and the
Company’s value and projected gross proceeds of certain real estate
assets. The complaint seeks compensatory damages in an unspecified
amount to be proven at trial, an award of reasonable costs and
expenses to the plaintiff and class counsel, and such other and
further relief as the court may deem just and proper. The Company
intends to vigorously defend itself against the allegations.
Dividends
On February 29, 2024, 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, 2024 to holders
of record on March 29, 2024.
On May 2, 2024, 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 15, 2024 to holders
of record on June 28, 2024.
On July 31, 2024, 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 October 15, 2024 to
holders of record on September 30, 2024.
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 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 has considered and will
continue to 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.
Non-GAAP Financial
Measures
The Company makes references to NOI-cash basis and NOI-cash
basis at share which are financial measures that include
adjustments to accounting principles generally accepted in the
United States (“GAAP”).
Neither of NOI-cash basis or NOI-cash basis at share 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 (Loss)-cash basis
("NOI-cash basis”) and Net Operating Income (Loss)-cash basis at
share ("NOI-cash basis at share")
NOI-cash basis is defined as income from property operations
less property operating expenses, adjusted for variable items such
as termination fee income, as well as non-cash items such as
straight-line rent and amortization of lease intangibles. Other
real estate companies may use different methodologies for
calculating NOI-cash basis, and accordingly the Company’s depiction
of NOI-cash basis may not be comparable to other real estate
companies. The Company believes NOI-cash basis 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 NOI-cash basis at share, which includes
its proportional share of Unconsolidated Properties. The Company
does not control any of the joint ventures constituting such
properties and NOI-cash basis at share does not reflect our legal
claim with respect to the economic activity of such joint ventures.
We have included this adjustment because the Company believes 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 operating agreements of the
Unconsolidated Properties generally allow each investor to receive
cash distributions to the extent there is available cash from
operations. The amount of cash each investor receives is based upon
specific provisions of each operating agreement and varies
depending on certain factors including the amount of capital
contributed by each investor and whether any investors are entitled
to preferential distributions.
The Company also considers NOI-cash basis and NOI-cash basis at
share 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.
Due to the adjustments noted, NOI-cash basis and NOI-cash basis
at share should only be used as an alternative measure of the
Company’s financial performance..
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,” “potential,” "will," "approximately," or "anticipates"
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; 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;
environmental, health, safety and land use laws and regulations;
and possible acts of war, terrorist activity or other acts of
violence or cybersecurity incidents. 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, 2023 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
Prior to the adoption of the Company’s Plan of Sale (defined
below), Seritage was principally engaged in the ownership,
development, redevelopment, disposition, management and leasing of
diversified retail and mixed-use properties throughout the United
States. Seritage will continue to actively manage each remaining
location until such time as each property is sold. As of June 30,
2024, the Company’s portfolio consisted of interests in 22
properties comprised of approximately 2.8 million square feet of
gross leasable area (“GLA”) or build-to-suit leased area, and 352
acres of land. The portfolio consists of approximately 1.6 million
square feet of GLA and 218 acres held by 13 consolidated properties
(such properties, the “Consolidated Properties”) and 1.2 million
square feet of GLA and 134 acres held by nine unconsolidated
properties (such properties, the “Unconsolidated Properties”).
SERITAGE GROWTH
PROPERTIES
CONSOLIDATED BALANCE
SHEETS
(In thousands, except share
and per share amounts)
(Unaudited)
June 30, 2024
December 31, 2023
ASSETS
Investment in real estate
Land
$
59,157
$
102,090
Buildings and improvements
208,255
344,972
Accumulated depreciation
(29,142
)
(36,025
)
238,270
411,037
Construction in progress
105,780
135,305
Net investment in real estate
344,050
546,342
Real estate held for sale
87,137
39,332
Investment in unconsolidated entities
195,353
196,437
Cash and cash equivalents
86,706
134,001
Restricted cash
13,809
15,699
Tenant and other receivables, net
9,134
12,246
Lease intangible assets, net
188
886
Prepaid expenses, deferred expenses and
other assets, net
21,941
28,921
Total assets (1)
$
758,318
$
973,864
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Term loan facility
$
280,000
$
360,000
Accounts payable, accrued expenses and
other liabilities
36,639
50,700
Total liabilities (1)
316,639
410,700
Commitments and contingencies (Note 9)
Shareholders' Equity
Class A common shares $0.01 par value;
100,000,000 shares authorized; 56,268,317 and 56,194,727 shares
issued and outstanding as of June 30, 2024 and December 31, 2023,
respectively
562
562
Series A preferred shares $0.01 par value;
10,000,000 shares authorized; 2,800,000 shares issued and
outstanding as of June 30, 2024 and December 31, 2023; liquidation
preference of $70,000
28
28
Additional paid-in capital
1,362,864
1,361,742
Accumulated deficit
(923,004
)
(800,342
)
Total shareholders' equity
440,450
561,990
Non-controlling interests
1,229
1,174
Total equity
441,679
563,164
Total liabilities and equity
$
758,318
$
973,864
(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 June 30, 2024, 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, $(0.9)
million of accumulated depreciation and $2.7 million of other
assets included in other line items. The Company's consolidated
balance sheets as of December 31, 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 $2.4
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 June
30,
Six Months Ended June
30,
2024
2023
2024
2023
REVENUE
Rental income
$
4,166
$
5,517
$
9,891
$
5,935
Management and other fee income
50
367
98
629
Total revenue
4,216
5,884
9,989
6,564
EXPENSES
Property operating
4,160
5,196
7,833
13,381
Real estate taxes
1,238
2,170
2,631
3,707
Depreciation and amortization
1,212
4,151
6,483
8,715
General and administrative
6,874
10,099
16,066
22,319
Total expenses
13,484
21,616
33,013
48,122
Gain on sale of real estate, net
2,034
33,488
3,173
45,880
Gain on sale of interest in unconsolidated
entities
-
7,323
-
7,323
Impairment of real estate assets
(86,388
)
(104,467
)
(87,536
)
(107,043
)
Equity in loss of unconsolidated
entities
(566
)
(13,698
)
(187
)
(50,070
)
Interest and other income, net
717
9,869
2,140
15,454
Interest expense
(6,282
)
(12,528
)
(13,293
)
(27,730
)
Loss before income taxes
(99,753
)
(95,745
)
(118,727
)
(157,744
)
(Provision) benefit for income taxes
(1,474
)
38
(1,485
)
51
Net loss
(101,227
)
(95,707
)
(120,212
)
(157,693
)
Preferred dividends
(1,225
)
(1,225
)
(2,450
)
(2,450
)
Net loss attributable to Seritage common
shareholders
$
(102,452
)
$
(96,932
)
$
(122,662
)
$
(160,143
)
Net loss per share attributable to
Seritage Class A common shareholders - Basic
$
(1.82
)
$
(1.73
)
$
(2.18
)
$
(2.85
)
Net loss per share attributable to
Seritage Class A common shareholders - Diluted
$
(1.82
)
$
(1.73
)
$
(2.18
)
$
(2.85
)
Weighted average Class A common shares
outstanding - Basic
56,268
56,173
56,242
56,116
Weighted average Class A common shares
outstanding - Diluted
56,268
56,173
56,242
56,116
Reconciliation of Net Loss to NOI and Total NOI (in
thousands)
Three Months Ended June
30,
Six Months Ended June
30,
NOI-cash basis and NOI-cash basis at
share
2024
2023
2024
2023
Net loss
$
(101,227
)
$
(95,707
)
$
(120,212
)
$
(157,693
)
Management and other fee income
(50
)
(367
)
(98
)
(629
)
Depreciation and amortization
1,212
4,151
6,483
8,715
General and administrative expenses
6,874
10,099
16,066
22,319
Equity in loss of unconsolidated
entities
566
13,698
187
50,070
Gain on sale of interest in unconsolidated
entities
-
(7,323
)
-
(7,323
)
Gain on sale of real estate, net
(2,034
)
(33,488
)
(3,173
)
(45,880
)
Impairment of real estate assets
86,388
104,467
87,536
107,043
Interest and other income, net
(717
)
(9,869
)
(2,140
)
(15,454
)
Interest expense
6,282
12,528
13,293
27,730
Provision (Benefit) for income taxes
1,474
(38
)
1,485
(51
)
Straight-line rent
179
3,796
246
14,638
Above/below market rental expense
38
45
76
93
NOI-cash basis
$
(1,015
)
$
1,992
$
(251
)
$
3,578
Unconsolidated entities
Net operating income of unconsolidated
entities
1,020
1,301
2,551
2,959
Straight-line rent
(133
)
(294
)
(321
)
(440
)
Above/below market rental expense
(9
)
(3
)
(18
)
2
NOI-cash basis at share
$
(137
)
$
2,996
$
1,961
$
6,099
Properties sold during second quarter of 2024:
Total
2024 Qtr
City
State
Full / Partial Sale
SF (1)
Sold
North Little Rock
AR
Outparcel
16,800
Q2
Albany
NY
Full Site
242,800
Q2
Mesa
AZ
Full Site
136,000
Q2
San Bernadino
CA
Full Site
264,700
Q2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814524757/en/
Seritage Growth Properties (212) 355-7800 IR@Seritage.com
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