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Seritage Growth Properties reported a quarterly net loss, indicating that the company continued to face challenges linked to its ongoing asset-sale programme earlier this week. The REIT recorded a loss of USD13.6 million for the period, though it noted an improvement in liquidity, with cash reserves rising to USD65 million. Management stated that discussions over asset sales were continuing, with anticipated gross proceeds of about USD240.8 million from transactions currently under negotiation. The company also projected between USD220 million and USD310 million in potential proceeds for assets not yet under contract, while cautioning that market conditions could still influence outcomes.
Seritage Growth Properties reported earlier this week that it had recorded a quarterly net loss of USD13.6 million, reflecting persistent challenges connected to its asset-sale strategy. The company noted that its cash position had strengthened, with liquidity rising to USD65 million as of the past week as part of its ongoing financial management efforts. Advertisement
The firm confirmed that it was continuing negotiations for a series of asset disposals, for which it expected gross proceeds of roughly USD240.8 million. It added that three assets currently under contract, and carrying no due-diligence contingencies, were likely to close in the near term and might enable a sizeable prepayment of its Term Loan Facility. For assets not yet under contract, Seritage estimated gross sales proceeds in the range of USD220 million to USD310 million, though it acknowledged that market conditions could weigh on final outcomes.
The company highlighted that elevated interest rates and tight capital availability continued to pose difficulties for its Plan of Sale, potentially affecting both pricing and timing of distributions. In its quarterly metrics, Seritage posted a Q3 loss per share of USD0.24, net income of negative USD12.42 million, and operating income of USD1.60 million.
Analyst sentiment remained relatively positive, with one available analyst maintaining a 'buy' stance. The broader peer group within the real estate rental, development and operations sector also held an average 'buy' recommendation. Wall Street's median 12-month price target for Seritage stood at USD6.50, representing an uplift of about 36 per cent from its closing price of USD4.16 earlier this week.
Seritage Growth Properties- latest quarterly update reflected the company's continued progress on asset monetisation while also underscoring the pressures created by current market conditions. Despite reporting a wider quarterly loss, the REIT strengthened its liquidity position and continued to advance negotiations on several asset sales expected to close shortly. Its projections for additional disposals offered some indication of future cash inflows, though interest-rate constraints and limited capital availability remained key hurdles. With analyst sentiment still supportive, Seritage's near-term performance will likely depend on successful execution of its ongoing sales strategy.
Source - Reuters
5th Jun, 2025
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