Seritage Growth Properties reported a net loss of $73.1 million for the fiscal year ending December 31, 2025, compared to a net loss of $158.4 million in the previous year. The company's rental income increased to $17.6 million from $17.1 million, primarily due to improved lease activity at its Aventura, Florida property. However, the overall financial performance was impacted by significant impairment losses totaling $18.8 million, primarily related to the sale of properties below their carrying value. The company also recognized a loss of $1.4 million on the sale of interests in unconsolidated entities, contributing to the overall decline in profitability.
In terms of operational changes, Seritage has been actively executing its Plan of Sale, which was approved by shareholders in October 2022. This strategic initiative aims to sell all of the company's assets and distribute the net proceeds to shareholders. As of December 31, 2025, the company had sold five wholly owned properties for gross proceeds of $222.6 million and monetized two unconsolidated properties for an additional $8.1 million. The company continues to face challenges in the market, including high interest rates and economic uncertainty, which may affect the timing and pricing of future asset sales.
As of the end of 2025, Seritage's portfolio consisted of 10 properties, encompassing approximately 0.8 million square feet of gross leasable area and 156 acres of land. The company has seen a reduction in its employee headcount, with only five full-time employees remaining as it streamlines operations in line with its asset disposition strategy. The company’s financial position remains precarious, with a total debt of $50 million under its Term Loan Facility, which matures on July 31, 2026. The company has not declared dividends on its Class A common shares since 2019, reflecting its focus on liquidity and debt repayment.
Looking ahead, Seritage's management has expressed uncertainty regarding its ability to continue as a going concern, given the ongoing cash flow challenges and the need to fund its obligations. The company is actively pursuing asset sales to generate cash flow, but the current market conditions may hinder its ability to achieve favorable sales prices. The company has acknowledged that its future financial performance will depend significantly on the successful execution of its Plan of Sale and the broader economic environment affecting real estate transactions.
About Seritage Growth Properties
Seritage Growth Properties is a real estate investment trust specializing in owning, developing, redeveloping, managing, and selling diversified retail and mixed-use properties across the U.S. Its portfolio includes retail centers and land, with a focus on asset monetization through a planned sale process. The company emphasizes value maximization, tenant diversification, and strategic asset repositioning within challenging market conditions.
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